Xi challenges Washington with diplomacy: Southeast Asia tour, strategic agreements with Vietnm
Xi challenges Washington with diplomacy: Southeast Asia tour, strategic agreements with Vietnam and a suspension of Boeing aircraft deliveries
Chinese President Xi Jinping has wrapped up a high-stakes diplomatic tour across Southeast Asia, signaling a new phase in the strategic competition with the United States. After a flurry of high-level meetings in Hanoi, where over 40 bilateral deals were signed, Xi landed in Malaysia to consolidate Beijing’s growing influence in the region. Meanwhile, China ordered domestic airlines to suspend the delivery of new Boeing aircraft, escalating the ongoing trade dispute with Washington.
The five-day tour laid bare China’s two-pronged foreign policy approach: a peaceful expansion of regional partnerships, coupled with direct economic and technological confrontation with the United States. Southeast Asia, a region historically torn between rival spheres of influence, now finds itself at the heart of this geopolitical reshuffling.
Chinese diplomacy, back with a vengeance: 40 deals with Vietnam and open skies for Comac
In Hanoi, Xi met with Communist Party General Secretary To Lam and Prime Minister Pham Minh Chinh, receiving a welcome that marked a significant shift from previous tensions. The summit concluded with the signing of over forty agreements covering infrastructure, technology, trade, and railway cooperation.
A key highlight was Vietnam’s invitation to Comac CEO He Dongfeng to establish aircraft maintenance hubs within the country for the Chinese-made C919. The move signals Hanoi’s readiness to diversify its aviation partners and reduce dependency on Western suppliers.
The message is unmistakable: Beijing intends to offer a fully integrated supply chain—diplomatic, industrial, and technological—capable of replacing the US-driven model in one of the world’s fastest-growing aviation markets.
China’s silent offensive: from Hanoi to Kuala Lumpur, isolating Washington step by step
The White House responded with force. President Donald Trump announced sweeping tariffs of up to 145% on all Chinese imports, defending the move as a necessity for protecting American strategic industries. China retaliated with 125% tariffs on US goods, but the real blow came when Beijing halted deliveries of several Boeing aircraft already bound for Chinese airlines.
“They just backed out of a major Boeing deal,” Trump posted on Truth Social. “They’re refusing delivery of planes they had fully committed to.”
In a separate briefing, Trump reminded reporters of the $28 billion in aid he provided to American farmers during his first term, portraying himself once again as a shield against Beijing’s “brutality” in trade negotiations.
Boeing stock tumbles, Comac ascends—and Airbus watches quietly
Boeing shares dropped nearly 3% following the announcement, as investors priced in the immediate and long-term consequences. The Chinese directive is said to impact at least ten Boeing 737 Max aircraft scheduled for delivery to major Chinese airlines, including China Southern and Air China.
Xi secures Southeast Asia: strategic pacts, aircraft diplomacy, and a blow to Boeing
Even though certain models may be exempted on a case-by-case basis, the financial damage is clear. China previously accounted for up to 25% of Boeing’s global deliveries, and this new policy may slash the company’s 2025 cash flow by an estimated $1.2 billion.
Trump lashes out: “They’re screwing us over Boeing!” As China backs Comac and courts Vietnam
Meanwhile, Comac is rising. With strong state backing and growing regional interest, its C919 jet is gaining traction across Asia. Beijing is even considering subsidy schemes to help domestic carriers phase out leased Boeing aircraft. In the background, European rival Airbus could emerge as a quiet winner, increasing its market share without taking a political stance.
A shifting balance between trade, diplomacy and aerial supremacy
Beijing’s latest move is about more than planes. Xi’s Southeast Asian tour is a coordinated campaign to reforge regional consensus in the face of American containment and the breakdown of multilateral trade talks.
Vietnam, Malaysia, and Cambodia are not just diplomatic pit stops—they are symbols of a new Chinese strategic axis. By presenting itself as a stable, long-term partner, China aims to pull key players into its sphere of influence.
Back in Washington, the loss of influence is palpable. What was once a U.S.-dominated economic theater is now drifting toward a multipolar realignment. And the trade war, instead of restoring industrial supremacy, may end up accelerating America’s strategic decoupling.
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Xi challenges Washington with diplomacy: Southeast Asia tour, strategic agreements with Vietnm