Trade war: Small countries in a balancing act between China and US

Trade war: Small countries in a balancing act between China and US

Chinese President Xi Jinping’s recent visit to Malaysia as part of his Southeast Asia tour has shed light on the delicate balancing act that smaller nations in the region are facing amid the ongoing trade war between China and the US.

With tensions escalating between the two economic giants, Xi has been emphasizing the importance of strengthening trade ties with China’s neighbors. He has positioned China as a stable trade partner in the midst of uncertainty caused by the tariff war with the US.

However, smaller nations like Malaysia find themselves walking a tightrope in order to keep both China and the US satisfied. On one hand, they cannot afford to jeopardize their economic relationship with China, a major trading partner and investor. On the other hand, they must navigate their ties with the US, a traditional ally and key player in the global economy.

This delicate balancing act is becoming increasingly challenging as the trade war shows no signs of abating. Smaller nations are under pressure to make strategic decisions that will benefit their economies while also maintaining diplomatic relations with both China and the US.

As tensions continue to mount between the world’s two largest economies, it remains to be seen how smaller nations will navigate this complex terrain and ensure their own economic stability in the face of the ongoing trade war.

Watch the video by DW News

Video “Trade war: Smaller nations in balancing act between China, US | DW News” was uploaded on 04/16/2025 to Youtube Channel DW News