China 5 - April 18, 2025
Xi in Southeast Asia, EU-China relations, new phase in trade war

THIS WEEK:
Xi’s diplomatic push in Southeast Asia, momentum builds in EU-China relations, trade war enters a new phase, rules target foreigners’ religious activities, and another provincial governor purged
1. Xi’s Diplomatic Push in Southeast Asia
What Happened: Today, Xi Jinping concluded a five-day diplomatic tour of Southeast Asia, visiting Vietnam, Malaysia, and Cambodia in an attempt to strengthen China’s regional relationships. Xi emphasized multilateral trade and infrastructure cooperation in his meeting with Vietnamese President Phuc and discussed enhancing economic partnerships, particularly in green technology and AI, with Malaysian Prime Minister Anwar Ibrahim.
Why It Matters: China is both Vietnam’s and Malaysia’s top trading partner, and the emphasis on enhancing cooperation in supply chains, artificial intelligence, and green technology highlights Beijing’s strategic push to further strengthen economic ties with the region. Xi’s visit also underscored China’s effort to present itself as a reliable interlocutor, in contrast to Washington, amid the uncertainty surrounding U.S.-China trade tensions.
By Sungmin Cho, Fellow on Chinese Politics, Foreign Policy, and National Security, Center for China Analysis (@sungminchohi)
Learn More: Explore how people in Southeast Asia perceive China using CCA’s Global Public Opinion on China interactive website.
2. Momentum Builds in the EU-China Relationship
What Happened: On April 8, European Commission President Ursula von der Leyen and Chinese Premier Li Qiang discussed EU-China relations and U.S. tariffs. The two also announced that the EU-China Summit would be held in July, marking the 50th anniversary of diplomatic ties. In parallel, EU Trade Commissioner Maroš Šefčovič began trade negotiations with Chinese Commerce Minister Wang Wentao, aiming to establish a pricing mechanism for Chinese electric vehicles.
Why It Matters: With continued uncertainty surrounding U.S. tariffs, the EU and China are seemingly recalibrating their engagement. However, the relationship remains dynamic, and negotiations are far from settled. As major players in global trade, EU-China relations merit close observation, as their cooperation could significantly influence economic alliances and supply chains worldwide.
By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland)
Learn More: Read more about how the EU is reassessing its relations with Asia in “A New Triangle: The Interplay Between China and EU-India Relations” by CCA Senior Fellow Philippe Le Corre.
3. U.S.-China Trade War Enters a New Phase
What Happened: China outlined conditions for trade talks with the United States — mutual respect, a consistent U.S. message, and a Trump-backed point person — and appointed WTO envoy Li Chenggang as its chief negotiator. Meanwhile, the United States barred sales to China of Nvidia’s H20 chips, even though they complied with earlier export restrictions, resulting in Nvidia CEO Jensen Huang visiting Beijing to meet with DeepSeek’s Liang Wenfeng and Vice Premier He Lifeng. In response to 145% tariffs on Chinese goods, China froze Boeing orders and warned of more targeted retaliation to come.
Why It Matters: The trade war is entering a more structured and strategic phase. Beijing is revamping its playbook by laying out clear preconditions for talks and expanding its retaliation tools beyond tariffs, including regulatory crackdowns, targeted pressure on U.S. firms, and controls on the export of rare earths. Meanwhile, Washington is escalating tech restrictions. These shifts point to a more calibrated, entrenched standoff, with both sides setting terms for future negotiations while hardening their positions.
By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi)
Learn More: Lizzi moderated “The EU’s Balancing Act,” a panel discussion on how the European Union navigates its relationship with its two largest trading partners, the United States and China.
4. New Rules Target Foreigners’ Religious Activities
What Happened: The State Administration for Religious Affairs announced new regulations governing religious activities by foreigners, noting that some “engaged in illegal preaching and other activities, affecting religious harmony and social stability.” For the first time, this year’s Government Work Report, delivered by Premier Li Qiang during the Two Sessions, explicitly mentioned the need to “strengthen the rule of law in the governance of religious affairs.”
Why It Matters: The new rules extend and codify measures to limit foreign missionary activity in China. For example, they require that foreign clergy obtain government approval to lead services for Chinese citizens. Interactions with overseas co-religionists have long been a concern for Beijing, which demands that religious followers put patriotism first.
By G.A. Donovan, Fellow on Chinese Society and Political Economy, Center for China Analysis (@GA_DonovanASPI)
Learn More: Read CCA Fellow John Osburg’s analysis of the growing interest in exploring different religious traditions as “China’s Middle Class Searches for Faith and Meaning.”
5. Another Provincial Governor Is Purged
What Happened: On April 12, Beijing announced an investigation into Jin Xiangjun, governor of Shanxi Province, for violations of Party discipline and national laws. Shanxi’s remaining leadership expressed full support for the Party’s decision and pledged to wholeheartedly uphold Xi Jinping Thought.
Why It Matters: During a Politburo meeting on March 31, Xi Jinping emphasized the need for increased political oversight of “top leaders and leadership teams.” Jin’s investigation marks the third incumbent ministerial-level official to face scrutiny in 2025 and the fourth sitting provincial governor dismissed since 2012. This demonstrates that under Xi, even senior officials are subject to disciplinary action.
By Lobsang Tsering, Senior Research Associate, Center for China Analysis
Learn More: CCA Senior Fellow Guoguang Wu discussed why “Xi Jinping’s Purges Have Escalated. Here’s Why They Are Unlikely to Stop.”