'No winners in trade war': Xi issues warning against Trump tariffs as China eyes to cast itself as leader in Southeast Asia

Chinese President Xi Jinping has warned that trade wars benefit no one in a thinly veiled message aimed at Donald Trump’s continued tariffs on Chinese goods. Xi’s comments were made as he set off on a diplomatic tour of Southeast Asia, which includes stops in Vietnam, Malaysia, and Cambodia.

The warning appeared in a joint editorial published in Chinese and Vietnamese media just before he arrived in Hanoi. Experts believe the trip is part of a wider attempt by China to present itself as a responsible global power, in contrast to Trump’s more aggressive approach.

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“Trade war and tariff war will produce no winner, and protectionism will lead nowhere,” Xi wrote, without directly naming the United States or President Trump. “Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”

Tariffs remain despite pause

Although Trump briefly paused most of the tariffs last week after a sharp drop in the stock market, the bulk of the import taxes on Chinese goods remain in place. China faces tariffs as high as 145 percent on several exports to the US. In response, Beijing imposed 125 percent tariffs on American products and has promised to keep retaliating.

Focus on regional partnerships

While the Vietnam trip was arranged before Trump’s new round of “Liberation Day” tariffs came into force, it has taken on new importance. Southeast Asian countries are now trying to manage the risks of being caught in the middle of the US-China trade dispute.

Vietnam, although governed by a one-party communist system like China, has managed to strike a balance by keeping strong ties with both Washington and Beijing. The country hosted Xi and then-President Joe Biden in 2023 and has benefited from companies relocating parts of their supply chains from China to Hanoi.

Watch: Xi woos China's neighbours as trade tensions with the US flare

Meanwhile, Trump’s administration continues to warn countries like Vietnam, Cambodia, and Mexico against helping China dodge US tariffs. Writing in the Financial Times, Trump adviser Peter Navarro said, “We will want to hear from countries including Cambodia, Mexico and Vietnam that you will stop allowing China to evade US tariffs by trans-shipping exports through your countries.”

Xi arrived in Vietnam on Monday and is set to travel to Malaysia and Cambodia later this week.