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THIS WEEK:

Trump’s tariffs push Beijing to bolster regional ties, China launches major military drills around Taiwan, Xi’s message for global CEOs, new guidelines to strengthen social credit system, and China’s relief efforts in Myanmar

1. Trump’s Tariffs Push Beijing to Bolster Regional Ties

What Happened: President Donald Trump imposed an additional 34% tariff on most Chinese imports, on top of earlier fentanyl-related and legacy duties. In response, China is shoring up its regional ties by floating a narrative of trilateral unity with Japan and South Korea — though both quickly distanced themselves from the claim — and offering to purchase more Indian goods. Xi Jinping is also planning a Southeast Asia tour in April, with stops in Vietnam, Malaysia, and Cambodia.

Why It Matters: Trump’s tariffs are prompting Beijing to invest in a more resilient, regionally anchored economic network. Reinforcing supply chains and providing regional partners with more market access will help cushion the blow. In addition, China is positioning itself as a steady trade partner, in sharp contrast with Washington. These moves reflect a broader recalibration to build tighter regional integration and reduce reliance on Western markets.
 
By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi)

Learn More: For more on regional perceptions of China, watch a panel discussion marking the official launch of CCA’s Global Public Opinion on China interactive website.

2. China Launches Major Military Drills Around Taiwan

What Happened: China wrapped up large-scale exercises around Taiwan on Wednesday, though its troops remain deployed and on standby. The drills, which included air, naval, coast guard, and rocket force assets, focused on “seizing comprehensive control, conducting sea and land strikes, and blocking key areas and roads” to punish Taiwan “separatist forces,” according to the Eastern Theater Command.

Why It Matters: The drills were in response to Taiwanese President Lai Ching-te’s speech on March 13, when he called China a “foreign hostile force” and unveiled new laws to counter Chinese espionage threats. China’s military has increasingly normalized large-scale, coercive exercises near Taiwan to deter Lai and his party from pushing an “independence” agenda. However, the drills may strengthen Taiwan’s resolve.

By Lyle Morris, Senior Fellow on Foreign Policy and National Security, Center for China Analysis (@LyleJMorris)

Learn More: Read more about Beijing’s economic and diplomatic pressures in “EU-Taiwan Relations: Navigating PRC Pressure, U.S.-China Competition, and Trump’s Foreign Policy.”

3. Xi’s Message for Global CEOs

What Happened: During a roundtable discussion with global CEOs, Xi Jinping reaffirmed China’s commitment to “institutional opening-up.” He emphasized that the Chinese Communist Party has a clear roadmap and a timeline for reforming the systems for both inbound and outbound investment. Xi encouraged the CEOs to share candid feedback, signaling Beijing’s willingness to consider their perspectives.

Why It Matters: By engaging with global business leaders, Xi aims to proactively shape international trade and economic rules, positioning China as a leader in global economic governance while enhancing its national security framework. Beijing expects to achieve these goals by 2029 through ongoing initiatives, including the Hainan Free Trade Port and the Regional Comprehensive Economic Partnership.
 
By Lobsang Tsering, Senior Research Associate, Center for China Analysis
 
Learn More: Watch a joint ChinaFile-CCA conversation between Julian Gewirtz and Susan Jakes, “Shifting Terrain in U.S.-China Relations and Xi Jinping’s Vision for China’s Future.”

4. New Guidelines to Strengthen Social Credit System

What Happened: The State Council announced an expansion of China’s nationwide social credit system that it says will improve government integrity and punish cadres’ dishonest behavior. The new measures cover public officials, government departments, social organizations, and judicial and law enforcement organs. They also provide clearer guidelines for how to get off the social credit blacklist.

Why It Matters: Millions of people who defaulted on consumer loans have been blacklisted, restricting their access to lending, financial services, payment applications, and even airline ticket purchases. By leveraging social credit to tackle public officials’ dishonest behavior, Beijing is imposing discipline while also hoping to inspire more public trust in its governance.​​​​​​​

By G.A. Donovan, Fellow on Chinese Society and Political Economy, Center for China Analysis (@GA_DonovanASPI)

Learn More: Watch “Healthy China 2030: Assessing Obstacles and Tracking Progress,” a panel discussion about Beijing’s long-term campaign to make healthcare more efficient and equitable.

5. China’s Relief Efforts in Myanmar

What Happened: On March 28, a 7.7-magnitude earthquake struck Myanmar, killing more than 2,700 and injuring 4,500. At least 441 remain missing. In response, China sent an 82-person rescue team on March 29 and pledged $13.77 million in aid, including tents, blankets, emergency medical kits, food, and water.

Why It Matters: The earthquake, which affected multiple countries, including China, was the latest in a series of natural disasters in the region. China’s pragmatic support underscores the importance of coordinated disaster response and highlights the critical role of humanitarian aid in promoting regional cooperation and resilience.

By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland)

Learn More: Watch “Myanmar/Burma 2025: Challenges and Opportunities,” moderated by ASPI’s Debra Eisenman.