China Boosts Southeast Asia Ties But Trump Alienates Them

By Mish Shedlock of MishTalk

Friday, April 18, 2025 8:15 PM EDT

Time, Time Management, Stopwatch, Industry, Economy

Image Source: Pixabay

Trump has alienated trading partners, creating an opening for Xi.

Xi Hailed by Malaysia PM

Bloomberg reports Xi Hailed by Malaysia PM as China Boosts Southeast Asia Ties

Malaysia’s prime minister heaped praise on Chinese President Xi Jinping during his state visit to the country as both leaders pledged stronger trade ties to combat rising global protectionism triggered by US tariffs.

The two leaders signed 31 cooperation agreements ranging from artificial intelligence to mutual visa exemptions and global security on Wednesday in Putrajaya. At a dinner following the signing ceremony, Malaysian Prime Minister Anwar Ibrahim called Xi a steady leader in a time of global upheaval.

“In these trying times, the world yearns for steadiness, reliability and purpose,” Anwar said. “We see this in China’s conduct. Malaysia acknowledges such steadiness with quiet recognition and is conscious not only of the calm it has brought, but of the hope it may continue to offer.”

Malaysia is the second stop in Xi’s three-nation trip to Southeast Asia, which included Vietnam earlier this week and Cambodia from Thursday. Xi is seeking to bolster ties with export-reliant Southeast Asian economies rattled by President Donald Trump’s intensifying trade war. Many are trying to strike their own deals with Washington to counter the threat of economically devastating tariffs, while also maintaining strong ties with China, the region’s biggest trading partner.

Xi met with the nation’s king, Sultan Ibrahim Iskandar, earlier Wednesday, saying Beijing welcomes more Malaysian agricultural goods and called for both countries to advance major projects like the East Coast Rail Link, according to Xinhua. He also highlighted the importance of strengthening cooperation in areas such as artificial intelligence, the digital economy and green development.

“We admire your tenacity, and for that Malaysians welcome you, President Xi, not only as president of a great country, the People’s Republic of China, but as a true friend tested,” said Anwar.

Ahead of his arrival in Malaysia on Tuesday, the Chinese leader said he sees his trip as an opportunity to further deepen bilateral ties and bolster political mutual trust.

After Trump imposed steep tariffs on China during his first term in office, Malaysia and other nations in Southeast Asia became key routes for Chinese exports to reach the US. Now, Washington is pressuring them to cut off that lucrative business channel or face crippling US levies.

Anwar on Wednesday slammed those developments, without naming the US.

“What we are witnessing today is not an honest reckoning with the imperfections of globalization, but a retreat into economic tribalism,” Anwar said at the state dinner to honor Xi. “Market access is being weaponized. What was once a multilateral covenant for shared growth now buckles under the weight of arbitrary disruption and unilateral whim.”

Anwar pledged to remain an “unwavering and principled friend” to China, saying that the country had remained a rational, strong and reliable partner through turbulent times.

China Will Stand With Malaysia

Video Length: 00:01:47

2024 Asia Goods Trade Balance

The US trade balance with Malaysia is -25 billion, Indonesia is -18 billion, Vietnam is -123 billion, Taiwan is -74 billion, Japan is -68 billion, India is -46 billion, and China is -295 billion.

Vietnam is overstated and China understated due to tariff avoidance maneuvers that made imports from China look like they were from Vietnam, Mexico, or other countries.