Xi Warns Against Trade Wars, Seeks Stronger Southeast Asia Ties Amid U.S. Tariff Tensions
Chinese President Xi Jinping has cautioned that no one emerges victorious in a trade war, using his Southeast Asia tour to position China as a stabilizing force amid escalating tariff tensions with the United States.
Xi’s remarks come as U.S. President Donald Trump maintains a 145% tariff on Chinese goods, despite temporarily pausing some duties. In a joint editorial published by Chinese and Vietnamese state media on Monday, Xi emphasized that “there are no winners in a trade war, or a tariff war,” calling for both nations to protect the global trading system and supply chain stability.
Xi’s two-day visit to Vietnam kicked off with a warm welcome from President Luong Cuong, who received him at the airport—an uncommon diplomatic gesture. Students performed traditional drum routines as flags of China and the Communist Party were waved.
Analysts say the trip underscores China’s aim to demonstrate global leadership amid U.S. economic pressure. Nguyen Khac Giang of Singapore’s ISEAS–Yusof Ishak Institute noted the visit projects China as a “responsible superpower” in contrast to Washington’s more confrontational approach.
Xi held talks with Communist Party General Secretary To Lam and Prime Minister Pham Minh Chinh. The countries signed several cooperation agreements covering supply chains, environmental protection, and rail infrastructure. Among them was an $8 billion cross-border railway project approved in February.
The visit takes on greater significance due to current U.S.-China trade hostilities, providing China an opportunity to strengthen alliances and offset the impact of American tariffs. Vietnam, caught in the middle, continues to balance its deepening U.S. ties with its long-standing relationship with China.
In 2023, Vietnam hosted both Biden and Xi and elevated the U.S. to its highest diplomatic status—on par with China and Russia. Vietnam has also been a key beneficiary of the global shift away from Chinese supply chains, but has faced scrutiny for potentially serving as a route for Chinese goods to bypass U.S. tariffs.
Despite economic cooperation, China and Vietnam remain at odds over territorial claims in the South China Sea—issues that Hanoi seldom broadcasts publicly.
Xi is expected to continue his regional outreach with visits to Malaysia and Cambodia later this week. Analysts say the trip sends a clear signal that Southeast Asia remains central to China’s foreign policy ambitions in an increasingly polarized global trade environment.
