President XI aims to cement iron friendships in Asia

While Chinese President Xi Jinping was embarking on his visit to three countries last week, it was clear that China had not lost time to resume the dissatisfaction that had exploded in Southeast Asia after the announcement of steep American prices in the region earlier this month.

The three XI judgments included Vietnam (which was slapped with a price of 46% on the “liberation day” of President Trump), Malaysia, struck by 24% tariffs, and finally Cambodia, which is faced with a rights rate of 49% after the end of the 90 -day postponement period.

The region is still “in shock of the shock”, analysts noted in the midst of the negotiations in progress between the Asian nations and the United States in each of the countries in question, President XI had a strong message. He reached the hand of friendship, but also opposed “hegemonism and protectionism” adopted by Washington.

It was the first trip of President XI out of China in 2025, and the analysts commented on the “well -timed” nature of the visit when China said promises and promoted a feeling of regional solidarity. It was clear that the country also aimed to open ways in a region where it already has an economic bastion. As China is now with a 145% function of the United States, the visit has been considered the most important financial level to date.

The last judgment of President XI at Phnom Penh, who concluded on Friday, reiterated “iron friendship” between China and Cambodia.

It is estimated that 50% of clothing manufacturing factories in Cambodia would have the Chinese property. The International Monetary Fund estimates that a third of Cambodia foreign debt of $ 11 billion is due to China, and there is a lot of need for restructuring as the country prepares for the delivery of graduation of the least developed countries (LDC) in 2029.

The business world has been in advance since the price proclamation of President Donald Trump despite the call of the textile association, clothes, shoes and travel goods (TAFTAC) to “stay calm” while “the real impact of sudden announcements” was being analyzed.

In the past year, American retailers have intensified imports from Cambodia, with clothing, shoes and travel products reaching $ 13.78 billion in 2024, up 23.78% compared to the previous year. The sector represented more than 50% of Cambodia total exports of $ 26.19 billion in 2024, employing more than 750,000 workers.

The American brands that import from the country include Under Armor, Lululemon, Black and Dépard, Hugo Boss, Eddie Bauer, Dollar General and Bass Pro Shops, according to customs data.

“The strong relationship between China and Cambodia represents a positive development because it facilitates the growth of the value chain and opens up new market opportunities for Cambodia within China,” said Herman Leung, vice-president of sales and operations of the Dakota group, in Sourcing Journal. He stressed that “new dynamic leadership in Cambodia demonstrates considerable energy to meet international challenges”.

While adding that neighboring countries were also faced with similar prices, he said that Cambodia's competitiveness “would depend on the flexibility, creativity and sustainability of its supply chain”.

“Consequently, I strongly recommend that Cambodia is investing in the development of a local textile supply chain to prepare for its future diploma in the least developed country status (LDC). This initiative will improve Cambodia capacities and resilience,” he said, citing the establishment of one of the first vertically integrated fabric changes in Cambodia in 2017.

Over the past two weeks, the industry chiefs have conferred quickly and have tried to examine the possibilities of diversification and the means to reduce operations costs as well as other means of survival.

It was not a surprise at the time, that President XI was warmly received in Cambodia, with King Norodom Sihamoni and the President of the Senate Hun Sen announcing his arrival at the airport.

The large large-scale discussions included the maximization of the potential of existing commercial executives, in particular the Cambodia-Chine free trade agreement, the full economic partnership (RCEP) and the Asean-Chine free trade area. “It was something of a balm,” Cambodian manufacturers said in Sourcing Journal.

China's commercial investments have made a crucial difference in the region for years.

In Cambodia, for example, the Special Economic Zone in Sihanoukville, an important industrial center, brought in more than 200 international companies. The manufacturers said that connectivity in the country has improved with the country's first highway, the Phnom Penh-Sihanoukville motorway.

The trip began on a note similar to its first stop in Vietnam on April 14 and 15.

President XI spoke of China's dedication to “stimulate trade relations and the supply chain with Vietnam to mitigate the impacts of American prices”. Among the 45 bilateral cooperation agreements signed with the president of Vietnam in Lam during his visit, the resilience of the supply chain, the infrastructure and the digital economy were part of the shared agenda.

In an article published in Vietnam before his trip, Xi noted that there were “no winners in commercial wars and tariff wars”, but he showed more clearly during his visit that it was important to “oppose unilateral intimidation”.

The question of how these “iron dressed friendships” in the region affect solid export markets for the United States have also been part of the dilemma for Asian suppliers.

Vietnam textile and clothing exports affected $ 44 billion in 2024. The United States was its largest export market, representing around 38% of the total of $ 16.71 billion, according to Vietnam Textile and Apparel Association. Among the major American retailers who make Vietnam are Nike, who achieves more than half of his shoes, Gap Inc., VF Corporation, Under Armor, Levi Strauss & Co. and Columbia Sportswear, among others.

However, China is also a solid trading partner; In 2024, Vietnam imported $ 144 billion in China, while the United States imported a total of $ 136 billion in Vietnam.

A manufacturer of Vietnam who asked not to be appointed said: “It is a computing period for us. We need the two Chinese contributions, as much as we need the American markets. ”

President Trump was obviously not satisfied with the visit either, commenting on journalists on Monday that China and Vietnam discussed how to “screw the United States of America”.

Meanwhile, high-level political dialogues between each country and the United States are underway, negotiations being essential to find a less harmful path to the future for the region and American consumers, which are now threatened with higher prices.

President XI maintained the theme of friendship as a forward path for Asia, and it was a theme for his second stop in Malaysia. It was announced by an article signed in the local media: “that the Friendship ship in China-Malais is sailing to an even brighter future”, emphasizing both history and a “shared future”. The fact that the trip has shown results was clear that Malaysian Prime Minister Anwar Ibrahim and President Xi Jinping concluded 30 bilateral cooperation documents.

Malaysia counted on China as its largest trading partner for more than a decade, with around $ 212 billion in Chinese-Malais trade in 2024. “”

However, the currents of this long river of friendship are not entirely invisible.

Disputes in the territory and the Southern China Sea were an interview in the largest wheel, as well as warnings of the political ambitions inherent in the Belt and Road initiative and the investments of the infrastructure that have contributed to progress in the region. Analysts noted that the manufacturers should be wary to give an “absolute control, in particular given the imports of China which were essential to the manufacture of clothing in the region” as well as to be the intermediaries in the difficult seas between China and the United States, the regional force of the region cannot be ignored: the trade in China-Asce was close to 1 Brillion in 2024.

Discussions within the associations of manufacturers and informal discussions broke out in the region. Although the concerns are disseminated in nuances, they have largely focused on the question of whether friendship and regional camaraderie could surpass pressure from changing economic order.

Meanwhile, even if some analysts were cynical about this “neighborhood diplomacy”, since the United States continues to be a large export market, the trip of President Xi clearly indicated that the feeling of comfort for the region was rooted in more than friendship. The hard economy is at stake; Something that any tariff negotiations will influence or cement.

In the immediate case, Asian relations tend to look more towards camaraderie, while President XI concluded his visit to each country with a promised vision. A point raised to Kuala Lumpur on Tuesday but repeated is that things could now move on to a “new level”.