China Seeks Stronger Economic Ties ⁣Amid Trade War

‌ ​ Updated May 27, 2025
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Premier Li Qiang, China’s second-highest-ranking official, has pledged to further open the nation’s economy​ to “quality products⁢ from all over the world.” Li emphasized deepening economic ties with both Southeast Asia and the Middle East at the‌ Fortune ASEAN-GCC-China Economic Forum in Kuala Lumpur.

Li told delegates that enabling both domestic and international economic flow would allow companies ‍worldwide, including those from ASEAN and GCC countries, to fully share in China’s development. He ‍affirmed China’s readiness to collaborate ⁣with ASEAN and GCC countries for‍ greater openness and cooperation.

Li’s‍ presence in Malaysia​ coincided with a summit between leaders from the Association‍ of Southeast Asian Nations (ASEAN) and the Gulf ⁤Cooperation Council (GCC). This trilateral summit, a first of ⁢its kind, occurred alongside the annual ‌ASEAN Summit and a bilateral meeting between Southeast Asia‍ and the Middle East.

This initiative comes as⁢ China seeks new economic partnerships following renewed trade tensions. Goldman Sachs estimates that U.S. tariffs could‍ impact as many​ as 16 ‍million jobs in China.

Chinese officials have engaged⁤ with leaders in regions including Southeast Asia and Latin America, aiming‌ to build a united front and explore new markets for goods ⁣perhaps blocked⁣ from the U.S.

Li stated ‍that economic globalization‍ faces unprecedented challenges, threatening values such as peace, development, and mutually ⁢beneficial cooperation.He suggested that addressing these ⁤issues could create significant opportunities for all three regions.

A⁣ revived trade war could negatively ‌impact China’s economy, already facing challenges⁣ from sluggish consumption and a property debt crisis. However, some analysts believe ‌these trade headwinds might spur Beijing to implement long-awaited stimulus measures.

Li‌ noted that Beijing has adopted more proactive ‌policies to support ‌the⁤ market, providing a strong foundation for expanding aggregate demand. He⁣ added that ​China will continue to strengthen counter-cyclical ​adjustments in future policies.

While the U.S. has paused most tariffs on China as‌ trade negotiations continue, uncertainty remains. Despite this pause, previous threats to impose tariffs on goods from Europe ⁢and even iPhones made in India highlight the ongoing trade tensions.

Li emphasized the potential for increased trade between the‌ three regions, noting that despite representing⁢ a significant portion of the​ world’s population and economic output, they account for only a ​small percentage of global trade.

“We have great potential to be⁣ further tapped into,” Li said. “This is leverage⁤ we can use in the future.”

What’s ​next

China’s commitment to fostering stronger economic ties with ASEAN and GCC countries⁤ signals a strategic move to diversify ‍its trade relationships amid ongoing ‍global economic uncertainties. The success of⁢ these ⁣partnerships will depend ‌on addressing concerns⁢ about⁢ potential trade imbalances and ensuring ​mutually beneficial cooperation.