Overview

• Xi Jinping has started his Southeast Asia diplomatic tour in Vietnam, with planned visits to Malaysia and Cambodia later this week.
• During his visit, Xi reiterated that trade wars yield no winners and called for safeguarding multilateral trade systems and stable global supply chains.
• China and Vietnam are expected to finalize around 40 agreements spanning sectors such as infrastructure, trade, and security cooperation during Xi’s two-day visit.
• The tour comes as the U.S. maintains a 145% tariff on Chinese goods, exacerbating tensions between the two largest global economies.
• Southeast Asian nations, including Vietnam, are navigating a delicate balance between deepening ties with China and maintaining access to the U.S. market amidst ongoing trade disputes.