Chinese President Xi Jinping is leveraging the damage caused by the Trump administration’s tariffs to position China as the world’s preferred trading partner. He is on a Southeast Asian tour to build alliances and oppose protectionism, beginning with Vietnam and Malaysia, which have been hit hard by U.S. tariffs. Xi aims to win over developing economies in Southeast Asia and potentially supplant the U.S. as the EU’s largest trading partner. Beijing’s strategy is to take advantage of the discrediting of the international order by the U.S. under Trump. The EU’s willingness to revive negotiations on electric vehicle prices, despite past tariffs on Chinese cars, shows a shifting relationship. However, there are still unresolved economic disputes between China and the U.S., and political differences on human rights could pose challenges for China’s efforts to warm relations with long-standing U.S. allies like Japan and South Korea. China’s leverage as a significant holder of U.S. government bonds presents a way to threaten America’s ability to finance its debt, giving Beijing a powerful tool in its negotiations. Ultimately, China’s attempts to position itself as a reliable trading partner and secure alliances could continue to disrupt the global economic order and challenge America’s dominance.
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