Editorial | Solidarity best in face of US tariff tensions
Amid global uncertainty, China is strengthening economic ties with other leading trading partners such as members of Asean and the Gulf states
The United States’ global tariff war has prompted China to strengthen economic ties with other leading trading partners.
Examples are the upgrading of the 15-year-old free-trade agreement (FTA) with the 10 members of the Association of Southeast Asian Nations and this week’s inaugural summit in Malaysia between China, Asean and the Gulf Cooperation Council.
China and Asean remained each other’s top trading partner for the fifth consecutive year in 2024. After negotiations over two years, they have reached a consensus on an updated FTA, expected to come into effect as early as this year.
This is a timely signal of unity and cooperation that will do no harm to either side’s bargaining power in negotiations with the United States, where Asean members may expect to come under pressure to choose sides between China and the US.
Southeast Asian nations were among the hardest hit by Washington’s “reciprocal tariffs”, until the White House paused them. Cambodia, Laos and Vietnam faced duties of 49 per cent, 48 per cent and 46 per cent respectively.
In April, President Xi Jinping visited Vietnam, Malaysia and Cambodia, where he called on Asian nations to unite against unilateralism and protectionism. Beijing has continued efforts to strengthen global economic ties amid tensions with the US.