12 hours ago
- Business
- New Straits Times
From rivalry to realignment, China shifts to seek better fortunes amid trade friction with US
BEIJING: Rather than being fixated on its trade dispute with the United States (US), China is refocusing its efforts towards bolstering ties with non-confrontational partners, including developing nations, to boost trade and investments.
Clearly, Beijing is exploring all options to find new markets and export opportunities to mitigate the fallout from the continuing tariff war with Washington, hedging against downside risks by forging links with Southeast and Central Asia, the Gulf, Africa, Australia, New Zealand and Latin America.
China's renewed zest to reach out far and wide was not lost on some 119 journalists from all over the world who joined the three-month China International Press Communication Centre (CIPCC) programme in the Chinese capital.
It was difficult for them not to notice that Chinese authorities -- deeply concerned over the welfare of the nation's 1.4 billion citizens -- realise the need to intensify efforts to reap more economic opportunities.
This was clearly evident after China ramped up its presence in high-level summits, forums and trade expos to woo investments and explore trade opportunities as well as alternative markets after the US tariffs announcement in April.
A busy calendar for economic diplomacy
The list of engagements includes the Central Conference on Work Related to Neighbours, which set the tone for stronger regional engagement; the Hainan Free Trade Port Investment Conference; and the China-ASEAN Media Forum in Luoyang.
Beijing also hosted the China-CELAC Ministerial Forum in May to deepen ties with Latin America, followed by the China-Africa Economic and Trade Expo in Changsha in June.
From another perspective, such an evolving strategy opens up new space for ASEAN and the 15-member Regional Comprehensive Economic Partnership (RCEP), including Malaysia, to play a bigger role in global trade.
After US President Donald Trump imposed sweeping and record-high tariffs on China, Beijing began distancing itself from Washington, turning instead to multilateral platforms, trade corridors, and South-South partnerships
From courting Southeast Asia and the Gulf Cooperation Council (GCC) countries, to Africa, Central Asia and Latin America, China is actively expanding its global reach.
More recently, it also sought closer ties with New Zealand, which will implement on a trial basis a visa waiver in November for Chinese travellers from Australia holding valid visas
The ASEAN Advantage
The ASEAN Summit in Kuala Lumpur last month, the RCEP Local Government Forum in Anhui and outreach to oil-rich Gulf countries via ASEAN platforms further underscored this new orientation.
In this changing global environment, ASEAN and RCEP find themselves in a favourable and complementary position, more so with China's trade with ASEAN already surpassing its trade with the US in recent years.
Now, with RCEP in full force, there's even greater momentum for bolstering intra-Asian trade.
The Manila-based Asian Development Bank (ADB) estimates RCEP could boost regional incomes by over a staggering US$240 billion annually by 2030.
China has signalled its commitment to the ASEAN-led framework, praising the bloc's neutrality and centrality in regional affairs.
Chinese investments in ports, tech infrastructure, semiconductors and clean energy across Southeast Asia reflect this shift.
Looking beyond the West
What makes this shift momentous is not just China's pivot but also the opportunity for developing regions to balance superpower rivalry with multilateral gains.
By engaging with Latin America through the CELAC (Community of Latin American and Caribbean States) forum and consolidating economic partnerships with Africa and ASEAN, China is expanding the Global South's role in shaping trade flows.
While the US imposes new tariffs, restricts chip technology and limits access to rare earths, China appears increasingly justified in managing its risks by working with partners more focused on mutual gains.
A Foreign Ministry official here aptly quoted a Chinese proverb: "A single win is not good, but a shared win is better."
It also reflects China's success in galvanising its human resource of more than 700 million workers through sheer tenacity and industriousness – traits which have entrenched its prowess in manufacturing as a global benchmark.
Malaysia's role in a shifting trade landscape
Closer to home, for Malaysia, China's shifting tides offer both opportunities and responsibilities.
With its strategic location, diverse economy and mature trade infrastructure, Malaysia is well-placed to benefit from redirected Chinese investments and supply chain shifts.
The recent ASEAN-Gulf Cooperation Council (GCC) countries-China summit in Kuala Lumpur, alongside Prime Minister Datuk Seri Anwar Ibrahim's engagements with China and Gulf leaders, marked a turning point, reinforcing Malaysia's role as a regional connector.
Malaysia can attract more manufacturing and tech investments, and as the ASEAN chair, Malaysia also carries the duty to promote unity and openness within the bloc.
Nevertheless, rising US-China trade tensions still pose risks to regional stability and global trade flows.
Markets did rally after the constructive June 5 phone call between Trump and Chinese President Xi Jinping, offering temporary relief amid heightened tension.
Both countries had earlier agreed on a 90-day tariff rollback deal on May 12. Trump signalled interest in visiting Beijing, while Xi emphasised mutual respect.
Observers believe this 'trade chill' offers a brief pause. China's pivot toward ASEAN, RCEP and the Global South, upholding their win-win policy or 'Shuāngyíng', will continue unabated.
For Malaysia, this moment is a strategic opening—not only to benefit from trade shifts but also to help shape a more balanced and inclusive regional order.
