Chinese President Xi Jinping played a short but effective hand to extend Chinese economic influence by visiting … … He struck mutual pledges for closer trade ties with these countries during his trip. This diplomatic endeavor comes amid escalating tensions between China and the United States, with experts suggesting that China is preparing for a potential economic decoupling from its largest trading partner. Victor Gao, Vice President of the Center for China and Globalization, cautions that the current reality could evolve into a stop-export scenario. Such a stoppage would be a major blow to trade between the two countries.
China’s total trade reached a staggering record of 43.85 trillion yuan (US$6 trillion) in 2024, underscoring its status as the world’s largest exporter. The nation’s resounding successfulness has turned it into an inconveniently critical trading partner for the world. This list includes the European Union, Japan, South Korea, and the ten-member ASEAN grouping. Tensions are escalating around the world. Now, many countries find themselves at a historic crossroads as they pick sides in an emerging technological and economic cold war between China and the United States.
During his tour of Southeast Asia, Xi Jinping emphasized China’s commitment to opening its market to high-quality products from countries like Kenya. He proclaimed that as long as China’s economic growth sustained the demand for more bilateral prosperity in trade relations, the world would know peace. This longing for Chinese friendship resonates with China’s larger plan of fortifying cozier ties with countries traversing in a bid to challenge US clout.
“America and China are now locked in a fierce contest for global supremacy,” – Lawrence Wong
China’s expanding economic reach is happening at a time when it is increasingly cornered by the United States. None other than Xi Jinping outright condemned the new trade war as pernicious. He reiterated that this is cavalier with the rights and interests of all affected countries. As strategic competition intensifies, China has vowed to take countermeasures in a “resolute and reciprocal manner” against any country that enters into agreements with the US at China’s expense.
Wang Yiwei, a senior fellow at Beijing’s Center for China and Globalization, expressed confidence in China’s readiness for the US’s evolving tariff approach. “What will be the end? It’s a complete halt, meaning no more U.S. exports to China, no more China exports to the United States,” he stated. This view really focuses on the gravity of how seriously China is approaching these current international trade ramifications that are happening.
China’s recent moves have included high-profile negotiations with South Korea to begin shipping rare earth minerals to US defense companies. The South Korean government has already warned about this concern, in part due to worries about retaliation from China. In response, Chinese state media have urged European leaders to collaborate with China in safeguarding multilateralism during these uncertain times.
As part of its strategy to revitalize trade relationships, China is reportedly preparing to lift sanctions to facilitate a trade deal with Europe. This decision reflects Xi Jinping’s long-standing desire to create deep economic ties. The program goes further to address the challenges associated all the more by recent US-China tensions.
During his diplomatic efforts in Southeast Asia, Xi Jinping secured agreements with both Malaysia and Cambodia for enhanced economic cooperation. This move underscores China’s broader goal to entrench itself in areas key to Beijing’s economic strategic aspirations.
“They cannot choose one or the other, because they need both,” – Matthew Goodman
Xi’s engagements also extended beyond Southeast Asia. He met with Azerbaijan’s president and received Switzerland’s foreign minister, who expressed a willingness to strengthen cooperation with China and upgrade their free trade agreement.
China’s strong economic policies and a web of strategic partnerships create a picture of international relations that is molded by both fierce competition and productive collaboration. As countries around the world contend with these shifting realities — or, for some, not at all — the push to commit to one side or the other multiplies.
Matthew Goodman noted the difficult predicament faced by many countries squeezed between two demanding economic juggernauts. “A source of a lot of their input and imports,” he said, emphasizing their reliance on both nations.
