Why the offensive of XI charm through Southeast Asia is boring Trump

The chief of China, Xi Jinping, put pressure for support from Southeast Asia in the back of the American prices this week, with a visit to three nations that Donald Trump considers an effort to harm in the United States.

Arriving in the Vietnamese capital, Hanoi to a well -organized group of supporters waving enormous flags, the head of the second world economy reiterated his central message according to which “there are no winners in a tariff war”.

XI visit to Vietnam, Malaysia and Cambodia was announced for weeks before US President Donald Trump imposed (then temporarily reduced) prices up to 49% on the Southeast Asian nations.

And the timing could not be better for XI, which tries to court as many countries as possible to form a diplomatic front united against the prices.

Commenting from Washington during the first meeting of the trip between XI and Vietnamese leader in LAM, Donald Trump Said that the pair “tries to understand” How to screw the United States of America? “”.

China was only targeted by Trump, with a combined total of 145% of samples imposed on its exports to the United States, despite some exceptions.

The high rate was born in part because Xi responded with reciprocal prices raised to the US move, which other countries were suspicious of doing.

And not only is China faced with the largest individual price load, but it is also not part of the 90 -day price break that the White House applied to most countries, including the three XIs, visit.

Instead, like many countries, they have a general price of 10% imposed for the moment.

“XI will obviously capitalize on the situation”

The threat of much higher prices, including 49% in Cambodia, 46% on Vietnam and 24% in Malaysia remains if these countries cannot conclude an agreement to reduce obstacles to American products within 90 days.

“The uncertainty created by American prices as well as Washington treatment of the Allies undermines the credibility and confidence of the United States in Southeast Asia, and Xi will obviously capitalize on the situation,” said Ian Chong, political analyst of the National University of Singapore.

The threat of high American rates could hit Vietnam and Cambodia, which are particularly hard, due to the high proportion of manufacturing exports that ship to the United States.

An estimate of the Reuters news agency based on Vietnamese customs data found that 30% of Vietnam's GDP was based on exports to the United States, which makes the country particularly vulnerable.

But it is not because they are faced with tariff threats similar to Trump, the countries of the region will easily align with Beijing on the issue, especially if Chinese exporters hope to sell more of their goods which were previously intended for the United States to its neighbors.

“Southeast Asian states are already wary of cheaper goods that flood their markets and potentially move away from local businesses,” said Professor Chong.

XI aims to fill Trump's vacuum in Southeast Asia

The United States is also the largest foreign direct investor in Southeast Asia, and many American companies have moved parts of its China supply chains in Vietnam after a first series of tariffs on China during the first term Trump.

Representatives of the government of these countries want to keep these factories belonging to the United States and the jobs they provide, so being seen too closely with XI could affect negotiations with the Trump administration in the coming weeks.

However, state visits like these are not only on trade, but transactions.

In Vietnam only, XI signs 45 agreements, according to the state media.

None of the Communist government has published many details, but the cooperation of rail infrastructure is one of them.

In this part of the world, China offering trains, infrastructure and trade in China.

The United States has contributed by providing investments, trade and aid.

But the recent Trump test of more than 80% of the existing project contracts for the USAID USAID government development agency will reach certain countries in Southeast Asia hard, including one on the XI Cambodia route.

From now on, the tariff threat is abolishing America's Edge as an export market.

In the big game for influence in Southeast Asia, XI has a very good week.