China's leader Xi Jinping is pushing for South-East Asian support in countering American tariffs this week, with a three-nation visit that Donald Trump sees as an effort to hurt the United States.
Upon arriving in the Vietnamese capital Hanoi to a well-organised group of supporters waving huge flags, the leader of the world's second-largest economy reiterated his core message that "there are no winners in a tariff war".
Xi's visit to Vietnam, Malaysia and Cambodia was announced weeks before US President Donald Trump imposed (and then temporarily reduced) tariffs of up to 49 per cent on South-East Asian nations.
And the timing couldn't be better for Xi, who is trying to court as many countries as possible to form a united diplomatic front against the tariffs.
Commenting from Washington on the first meeting of the trip between Xi and Vietnamese leader To Lam, Donald Trump said the pair is "trying to figure out 'how do we screw the United States of America?'".
China has been uniquely targeted by Trump, with a combined total of 145 per cent levies imposed on its exports to the United States, despite some exceptions.
The high rate partly came about because Xi responded with high reciprocal tariffs to the US move, something other countries were wary of doing.
And not only does China face the largest individual tariff burden, but it also isn't part of the 90-day tariff pause that the White House applied to most countries including the three Xi is visiting.
They instead, like many countries, have a general 10 per cent tariff imposed for now.
'Xi will obviously capitalise on the situation'
The threat of much higher tariffs including 49 per cent on Cambodia, 46 per cent on Vietnam and 24 per cent on Malaysia remain if those countries can't cut a deal to reduce barriers to US goods within 90 days.
"The uncertainty created by US tariffs as well as Washington's treatment of allies undermine US credibility and trust in South-East Asia, and Xi will obviously capitalise on the situation," said Ian Chong, a political analyst from the National University of Singapore.
The threat of high US tariffs could hit Vietnam and Cambodia particularly hard, due to the high proportion of manufacturing exports that ship to the US.
An estimate from news agency Reuters based on Vietnamese customs data found that 30 per cent of Vietnam's GDP was based on exports to the US, making the country particularly vulnerable.
But just because they face similar tariff threats from Trump doesn't mean countries in the region will easily align with Beijing on the issue, especially if Chinese exporters hope to sell more of their goods that previously were destined for the US to its neighbours.
"South-East Asian states are already wary of cheaper goods flooding their markets and potentially driving out local businesses," Professor Chong said.
Xi aims to fill Trump's vacuum in South-East Asia
The US is also the biggest foreign direct investor in South-East Asia, and many American companies moved parts of their supply chains from China to Vietnam after an initial round of tariffs on China were imposed during the first Trump term.
Government officials from these countries want to keep those American-owned factories and the jobs they provide, so being seen to side too closely with Xi could affect negotiations with the Trump administration over the coming weeks.
Still, state visits like these aren't just about trade, but transactions.
In Vietnam alone, Xi is signing 45 agreements, according to state media.
Neither Communist government has released much detail, but railway infrastructure cooperation is among them.
In this part of the world, China's offering trains, infrastructure and trade.
The US competed by offering investment, trade and aid.
But Trump's recent gutting of more than 80 per cent of the existing project contracts for the American government's overseas development agency USAID will hit some South-East Asian countries hard, including one on Xi's itinerary — Cambodia.
Now the tariff threat is stripping away America's edge as an export market.
In the great game for influence in South-East Asia, Xi's having a very good week.
