Xi To Visit Southeast Asia Amid China's Grievous Export Crisis

2025-04-11 07:01:24

(MENAFN- Asia Times) China has vowed to“seek common ground and shelve differences” with Asian neighbours after the United States imposed a 145% tariff on all Chinese goods on April 9. Chinese President Xi Jinping will pay state visits to three Southeast Asian countries – Vietnam, Malaysia and Cambodia – from April 14 to 18, according to the Chinese Foreign Ministry.

This display of interest is not surprising in the context of the sharply escalated trade war with the United States. Many Chinese exporters are describing on social media huge losses that they say they have suffered due to US tariffs.

The South China Morning Post reported on April 9 that, to avoid tariffs, some Chinese exporters abandoned their goods mid-voyage to the US – mainly by surrendering containers to shipping companies. If they had not done so, they would have had to pay a 145% tariff at the US Customs, meaning that their revenue would not be enough to cover the tariff. Even after they dumped their goods, they still had to pay their suppliers.

On to one of the elements of Beijing's Plan B: Xinhua on Friday (April 11) published three separate stories to highlight China's long-term friendships with Southeast Asian countries:

“Tradition, tea, and tomorrow: Xi Jinping's stories with Vietnam” (in which Xi describes China and Vietnam as“comrades and brothers”);

“'Flowing water cannot be severed' – How Xi Jinping promotes China-Malaysia friendship” (in which Xi praises Fujianese businessman Tan Kah Kee [1875-1961] for his contributions in Malaysia); and

“Feature: Xi Jinping and his 'ironclad friends' from Cambodia” (in which Xi describes former Cambodian King Norodom Sihanouk as“a revered friend of the Chinese people and a symbol of China-Cambodia friendship”).

(That last article does not note that in 1970, encouraged by China, Sihanouk endorsed the Mao Zedong-supported Khmer Rouge – who went on to commit the Cambodian genocide of 1975-1979.)

To ignore tariff escalations

On Friday, China announced that it would raise tariffs on American goods to 125% from its previous rate of 84%, matching the level announced by the Trump administration on Thursday. However, the White House clarified that the tariff imposed on Chinese goods is now 145% if the earlier 20% levies applied for fentanyl trafficking are included.

As American goods exported to China already have no market viability at current duty rates, Beijing will“simply ignore” any further tariff escalations from the US in the future if Washington“persists with its tariff number games,” said the Customs Tariff Commission of the Chinese State Council.

“Even if the US further raises tariffs to even higher levels, it would be economically meaningless and would ultimately become a laughingstock in the history of global economics,” it added.

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