China Presses for Stronger Economic, Trade Ties After Trump Departs ASEAN Summit

By Rozanna Latiff and Danial Azhar

KUALA LUMPUR, Oct. 27 (Reuters) – China pressed on Monday for stronger economic ties and more open trade at a regional summit in Malaysia dominated by the shadow of steep U.S. tariffs after proceedings attended by President Donald Trump.

In a flurry of deal-making on his first stop during a five-day tour of Asia, Trump oversaw the signing on Sunday of an expanded ceasefire pact between Cambodia and Thailand and four regional trade deals.

None of those framework deals reduced steep U.S. tariffs on Cambodia, Malaysia, Thailand and Vietnam, the White House said, though they left room for some exemptions.

“Our message to the nations of Southeast Asia is that the United States is with you 100% and we intend to be a strong partner for many generations,” Trump said on a day when U.S. and Chinese negotiators agreed to a tariff pause in their trade war.

While Trump and Secretary of State Marco Rubio fly to Japan, top officials from China and the leaders of Brazil, Canada, the European Council and the 11-strong ASEAN bloc will work to solidify economic partnerships and hammer out trade pacts.

With two lower-profile U.S. officials left at the summit after Rubio’s departure, Chinese officials are expected to press for lower barriers and anchoring measures under World Trade Organization rules while seeking to shore up regional ties.

At a meeting of ASEAN members with China, Japan, and South Korea, Chinese Premier Li Qiang called for all parties to uphold free trade and oppose protectionism, a phrase China has used to call out Trump’s tariffs.

“We must fully safeguard the hard-earned peace and stability in East Asia,” Qiang said in a summary of remarks from state media.

He urged countries to “uphold free trade and the multilateral trading system, oppose all forms of protectionism, and continuously advance regional economic integration”.

Leadership Ambitions

The China-backed Regional Comprehensive Economic Partnership, comprised of 10 ASEAN nations with Australia, Japan, New Zealand and South Korea, also called for wider trade efforts and faster addition of new members in its first summit since 2020.

The world’s largest trading bloc, RECP covers about 30% of global gross domestic product and is touted by some analysts as a potential buffer against U.S. tariffs.

But China’s leadership attempts at a summit that features Brazilian President Luiz Inacio Lula da Silva and Canadian Prime Minister Mark Carney among other world leaders could face resistance among concerns about its rising military ambitions.

Philippines President Ferdinand Marcos Jr criticised Beijing’s actions in the South China Sea, a busy waterway in which Malaysia and Vietnam also have territorial claims.

“It is regrettable that incidents continue to occur … which endanger the lives of Philippine personnel and compromise the safety of our vessels and aircraft,” Marcos said of a series of confrontations there.

In response to Marcos’ comments, China’s foreign office said the “Philippine side’s deliberate violation of rights and provocation at sea is the source of tension”.

EU-China Meet

European Council President Antonio Costa met Chinese Premier Li Qiang and said he conveyed strong concern about Beijing’s expansion of export controls on critical raw materials.

“I urged him to restore as soon as possible fluid, reliable and predictable supply chains,” Costa said after the meeting, adding that he had also sought China’s help for efforts to end Russia’s war in Ukraine.

Rare earth magnets and minerals have been a major sticking point in Beijing’s trade war with Washington, with China using its control over 90% of global supply as leverage to combat U.S. tariffs.

Japan’s foreign ministry also expressed concerns over China’s curbs and questioned Beijing’s rhetoric on wider trade.

“They have imposed or tried to impose export restrictions on rare earths that have had a great impact on the supply chain, not only for Japan, but also for the entire world,” spokesperson Toshihiro Kitamura said.

“China is very powerful, a big country in terms of economy, and they try to make use of these U.S. tariff issues in order to pretend as if they are the guardian or champion of the free trade system.”

Brazilian President Luiz Inacio Lula da Silva said his meeting with Trump on Sunday “guaranteed” a more favourable trade deal than the current 50% tariff on Brazilian goods.

“I told him it was extremely important to take into account Brazil’s experience as the largest country in South America, as the most economically important country that has almost all of South America as a neighbour,” Lula, as he is popularly known, said on Monday.

The Association of Southeast Asian Nations (ASEAN) groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, East Timor and Vietnam.

(Reporting by Rozanna Latiff, Xinghui Kok, and Danial Azhar; Editing by Clarence Fernandez)