Context

• In April 2025, Chinese President Xi Jinping embarked on a high-profile tour of Southeast Asia, visiting Vietnam, Malaysia, and Cambodia.
• Spanning five days (April 14–18), the tour’s central objective was to position China as the region’s most reliable and indispensable partner amid mounting global economic and geopolitical tensions.
• Against the backdrop of a deepening U.S.-China trade war, characterised by a staggering 145% tariff on Chinese exports imposed by the Trump administration.
• Beijing’s outreach aimed to recalibrate its external engagements and fortify its leadership narrative within the Indo-Pacific.

The Purpose of XI’s Visit

• Economic Strategy and Regional Recalibration
  • Xi’s visit was not mere diplomatic routine but a deliberate strategic manoeuvre to mitigate external pressures.
  • Southeast Asia, with its geographic proximity and generally receptive governments, offers China a crucial buffer against escalating economic hostilities from the United States.
  • This region provides resilient trade pathways, alternative manufacturing hubs, and potential diplomatic partners to counter the U.S.-led “de-risking” strategy.
  • The economic stakes were underscored by contrasting tariff scenarios: while Southeast Asian nations face significant tariff hikes from Washington (up to 59% for Cambodia, 46% for Vietnam, and 24% for Malaysia), Beijing presented itself as a stable, open economic partner.
  • In Vietnam, Xi’s summit resulted in 45 new cooperation agreements; in Malaysia, over 30 agreements focused on sectors such as digital innovation, AI, agriculture, and infrastructure.
  • Cambodia, already China’s largest regional economic partner, secured expanded commitments, including the pivotal Funan Techo Canal project.
  • These deals exemplify China’s commitment to delivering tangible economic benefits, public goods and investments, while highlighting U.S. protectionism.
• Ideological and Normative Competition
  • Beyond economics, Xi’s tour carried profound ideological overtones.
  • Beijing sought to contrast its development-centric model of non-interference with what it portrays as Washington’s interventionist and ideologically rigid approach.
  • This message resonated particularly well in Cambodia, a longstanding ally of China, and found partial traction in Malaysia, which continues to balance its foreign relations carefully.
  • China’s broader soft power strategy was evident in Xi’s emphasis on finalizing a code of conduct for the South China Sea, advancing the Belt and Road Initiative (BRI), and promoting cultural linkages.
  • These efforts aim to recast China not only as a regional power but as a normative leader, offering Southeast Asia an alternative vision to the U.S.-dominated liberal international order.

Strategic Timing and Regional Dynamics

• The timing of Xi’s tour was critical. Despite multiple U.S. initiatives, including its Indo-Pacific strategy, Washington’s engagement with Southeast Asia has often been perceived as sporadic and reactive.
• Xi’s visit delivered concrete outcomes: infrastructure projects, digital collaboration, and economic facilitation, contrasting sharply with U.S.-led security-heavy alliances like AUKUS and the Quad.
• Importantly, Xi’s outreach also tapped into intra-ASEAN dynamics.
• Strengthening ties with Vietnam, a nation traditionally wary of China’s maritime assertiveness, reflected a calibrated effort to reassure Hanoi of Beijing’s peaceful intentions.
• In Malaysia, China’s focus on dispute resolution and deepened BRI collaboration catered to a government cautious of becoming a pawn in superpower rivalries.
• By doubling down on economic diplomacy, China highlighted what many perceive as a gap in U.S. policy, particularly criticisms that the Indo-Pacific Economic Framework for Prosperity lacks substantial market access incentives.

Broader Implications and Domestic Signalling

• Beijing’s ability to present itself as Southeast Asia’s indispensable economic partner complicates Washington’s efforts to forge a united front to counter China.
• The deepening of economic interdependence in the region potentially hinders U.S. ambitions to economically isolate or deter China.
• Xi’s tour, therefore, is not just a reactive diplomatic exercise but a forward-looking strategy to entrench Chinese influence and shape the future Indo-Pacific order.
• Domestically, Xi’s warm receptions and economic victories bolster his political standing.
• Amid challenges such as China’s economic slowdown and growing diplomatic frictions with the West, the optics of successful foreign visits help reinforce Xi’s authority at home.
• Additionally, these developments signal to the Global South that China remains a committed partner despite rising Western scepticism.

Conclusion

• Xi Jinping’s Southeast Asia tour encapsulates China’s sophisticated use of economic diplomacy and soft power in a period of global uncertainty.
• By blending tangible economic incentives with strategic messaging, Beijing seeks to strengthen its foothold in the Indo-Pacific and offer a compelling alternative to U.S. leadership.
• The success of this strategy, however, hinges on the long-term receptiveness of Southeast Asian nations, many of which continue to navigate a delicate balance between major powers.