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Beijing bolsters its position in the Indo-Pacific with little US pushback

Summary

While the Trump administration is preoccupied with its trade war with Beijing, Beijing has adopted an approach to bolster its position in the Indo-Pacific.

Full Text

While the Trump administration has been preoccupied with its trade war with Beijing, Beijing has adopted a two-pronged approach to bolster its own position in the Indo-Pacific region: pushing harder against those in the region that challenge China’s sovereignty claims, while pulling its stalwart partners and so-called swing states closer into its orbit.

China has been steadily advancing its territorial claims along its periphery without eliciting much discernible pushback from the Trump administration.

As Brookings scholar Lynn Kuok has noted, China in April “made its first on-the-ground, formal assertion of sovereignty over a previously unoccupied land feature in the South China Sea in more than a decade.” Meanwhile, Beijing has continued to ramp up pressure on Taiwan—most notably during its Strait Thunder-2025A exercise in April.

These activities are likely designed to establish a “new normal” for Beijing’s coercive activities during the Trump administration.

Simultaneously, China has pursued a “charm offensive” with friendly countries and so-called swing states in Southeast Asia.

From Beijing’s perspective, there are a number of compelling reasons to pursue this two-pronged strategy.

President Donald Trump and his top foreign policy officials are utterly distracted by their multifront trade war, strikes on Iran, and their quixotic efforts to resolve the conflicts in Ukraine and the Middle East.

The dearth of bandwidth at the top is compounded by the lack of staffing to address Beijing’s subtle salami slicing.

Moreover, Chinese Foreign Minister Wang Yi told his European Union counterpart in July that Beijing was worried that the United States would turn its full attention to China and the Indo-Pacific after the end of the Ukraine war, an assessment that would only give additional impetus to Beijing to consolidate its position in the region sooner rather than later.

Meanwhile, the Trump administration’s punitive and erratic tariff policy provides an opening for China to make headway with countries in the region at very little cost.

To the extent that the administration has focused on China, its myopic focus on trade and technology issues seems to have distracted it from pushing back on Beijing’s coercive activities against U.S. allies and partners, leaving China with the space necessary to press forward on its periphery.

The prospect of an in-person meeting this year between Trump and President Xi Jinping is only likely to further dampen the administration’s response to further provocations by Beijing against U.S. allies and partners in the region.

Already, the Trump administration has blocked Taiwan’s President Lai Ching-te from transiting New York to avoid irritating Beijing.

So far, the Trump administration’s response—or conspicuous lack thereof—would give Beijing little reason to change course.

In fact, Washington’s silence is likely to invite further intensification of both China’s coercive activities and its efforts to woo the region in the coming year, allowing Beijing to enhance its strategic position at the U.S. expense.

So far, Beijing’s approach is proving rather effective—and Beijing is poised to reap further gains this year if the administration devotes more time to pressuring U.S. allies and partners in the region than actually supporting them.

Fortifying the periphery for Trump 2.0

One week after Trump’s tariff hikes on April 2, Xi and the Politburo Standing Committee convened an unusual Central Conference on Work Related to Neighboring Countries.

The events of the preceding weeks largely overshadowed this conference in Western press coverage, but it would have been a crucial forum for Xi to lay out his game plan for girding China’s position in Indo-Pacific for the second Trump administration.

This conference was unlikely to have been orchestrated in response to the Trump administration’s Liberation Day tariffs on April 2, since this type of central conference involving Xi and the Chinese Communist Party’s top leadership typically takes months of behind-the-scenes preparations, but it was probably designed to provide a venue for Xi to promulgate updated guidance for how to handle the region during the second Trump administration.

The last time Xi held a similar work conference was in October 2013, just after he became the top leader—and shortly before China pivoted to a more assertive approach to its sovereignty claims in the South China Sea.

In hindsight, this conference was an early portent of Xi’s shift away from the “hide and bide” foreign policy that had governed China’s foreign policy since the wake of the Tiananmen crackdown.

China’s “periphery” has been a key part of its foreign policy since 1987, when the concept of “peripheral environment” appeared for the first time in The People’s Daily.

Xi’s 2013 conference only elevated the concept’s importance.

The most recent conference in April further augmented the role of peripheral diplomacy in China’s overall foreign policy, since Beijing gave the conference an upgraded protocol status.

In his speech, Xi noted that China and its neighbors must “deepen development integration, build a high-level interconnection network, and strengthen industrial chain and supply chain cooperation,” likely in the face of Trump’s tariffs.

Acharm offensive on the cheap

Days after the conference, Xi called Indonesian President Prabowo Subianto on the 75th anniversary of China-Indonesia relations, and then embarked on a notable tour of Cambodia, Malaysia, and Vietnam. 1 The following month, in May, Premier Li Qiang— a close Xi ally whom Xi has entrusted with more responsibility than Li’s predecessor— visited Indonesia and met with Prabowo.

He also attended a summit between the Association of Southeast Asian Nations (ASEAN), China, and the Gulf Cooperation Council in Malaysia at Malaysian Prime Minister Anwar Ibrahim’s invitation.

Malaysia, Vietnam, and Indonesia are some of the key “swing states” in Southeast Asia, commonly known for hedging between the great powers as the competition has unfolded.

Xi deliberately targeted these neighboring states by making them his first foreign visit after the U.S. tariffs were imposed.

Not only do these countries have deep trade relations with China and a demonstrated track record of supporting Chinese companies during the first trade war, but they are also appreciative of free trade policies.

After the United States pulled out of the Trans-Pacific Partnership and enacted protectionist policies during the first Trump administration, these Southeast Asian states began to see China as the preeminent economic power in the region.

Beijing is recapitulating its playbook from the first trade war by capitalizing on this moment of increasing U.S. protectionism to posture as these states’ most reliable economic power.

For its own sake, Beijing wants to strengthen its trade relations with these countries to bolster its ability to withstand Trump’s tariffs as the trade war potentially intensifies.

Beijing is specifically targeting ASEAN countries to build up a new market for its exports.

Since January, China has not advanced significant new initiatives in the region, like new large-scale infrastructure funds, beyond the largely symbolic gestures of head of state visits and the signing of new memorandums of understanding. 2 Indeed, the Chinese leadership’s official assessment at its April conference was that, “at present, China’s relations with neighboring countries are at their best in modern times.” Given that favorable assessment, Beijing likely judges that it does not need to offer much more to pull countries closer.

Xi’s penurious policy also reflects his likely calculation that the United States is in the middle of making mistakes in managing its allies and partners in the region and does not want to expend any resources wooing them until the dust has settled.

Probing at Sandy Cay

Beijing’s charm offensive is only part of the story in its approach to Southeast Asia.

Beijing almost always tests new U.S. administrations’ commitment to its allies and partners in the region during the first year, so the real question was not whether but when Beijing would make a move.

China’s assertion of sovereignty over Sandy Cay in April looks like just such an opening gambit.

Notably, China’s move came just weeks after Secretary of Defense Pete Hegseth visited the region and demonstrated remarkable continuity with previous administrations by reiterating the United States’ “ ironclad commitment ” to the Philippines alliance.

Shortly after that visit and just ahead of Balikatan 2025—the annual, major joint military exercise between the Philippines and the United States—the Chinese Coast Guard unfurled a flag on Sandy Cay in the northern Thitu Reefs of the Spratly Islands in the South China Sea.

Although this move did not create new facts on the ground—indeed, the Philippines responded in kind a week later—it laid the groundwork for Beijing to make bigger muscle movements not just at Sandy Cay but also around nearby Thitu.

As Kuok points out, Thitu lies so close to Sandy Cay that their territorial seas overlap, meaning that a Chinese claim to Sandy Cay introduces a competing claim into the waters around Thitu.

China’s move was notable, especially since it is not clear what provoked Beijing’s actions.

This year’s Balikatan exercise was actually smaller than it had been in recent years, and previously, the Chinese Coast Guard only responded through statements and an increased ship presence in the South China Sea. 3 It is possible that some unreported incident on the water prompted Beijing’s action, but the situation at Sandy Cay seems similar to Beijing’s probing of the U.S. commitment to the Philippines early in the Biden administration.

In March 2021, shortly after Biden’s inauguration, more than 200 Chinese vessels were moored at Whitsun Reef, a feature within a Philippines-claimed feature t

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Document ID: beijing-bolsters-its-position-in-the-indo-pacific-with-little-us-pushback