On a recent visit to Jakarta, Chinese Premier Li Qiang admitted that Beijing is looking into new economic tools, including so-called “unconventional” measures. That’s not something Chinese officials say lightly.
Why the sudden need for new tactics? The world’s second-largest economy is feeling the heat from a complicated mix of problems: a trade war with the U.S., weakening consumer confidence at home, and growing skepticism from countries that used to depend on Chinese trade.
Li’s Southeast Asia visit is no coincidence. He’s preparing for the upcoming ASEAN-GCC-China Summit in Kuala Lumpur, set to begin May 27. The event is expected to bring together leaders from ASEAN, the Gulf states, and China for a round of economic talks—and, perhaps, quiet bargaining over how to move forward in this uncertain global environment.
Why China Is Turning to ASEAN
China hasn’t exactly been playing fair in the trade world. For years, it’s used aggressive strategies like massive subsidies to state-owned companies and strict import rules that make life harder for foreign firms. It’s not surprising that countries are starting to push back.
What’s changed recently is how open that pushback has become. The U.S., in particular, has long complained about Chinese dumping practices—especially in sectors like steel, solar, and EVs. (Dumping refers to the export of goods at prices lower than their normal value, often even below production cost, in order to undercut foreign competitors). These concerns helped spark the original U.S.–China trade war back during President Trump’s first term.
By May 2025, the U.S. and China had entered a complex holding pattern, following an agreement earlier in the month to implement a 90-day pause in their ongoing tariff dispute. It was a significant de-escalation: U.S. tariffs on Chinese goods dropped to 30% (down from as high as 145%), and China lowered its own duties to 10%. But even with this temporary pause, China’s economy remains under pressure from a property crisis, deflation risks, and consumer pessimism.
What About the Philippines?
For the Philippines, this is both a challenge and an opportunity. Washington’s tariff changes didn’t leave us untouched. In April, the U.S. slapped a 17% tariff on Philippine goods, arguing it was part of a “reciprocal” trade adjustment. That rate has now been trimmed to 10%—but only temporarily, until the truce ends in July.
Electronics and semiconductor exports—where the Philippines is strongest—have been somewhat protected under international agreements. Still, the Marcos administration has been active in talks with the U.S., reportedly exploring increased imports of American agricultural products in exchange for tariff relief on our side.
At the same time, China remains a major investor in Philippine infrastructure and energy. That’s why balancing relationships is so important now. As the ASEAN-GCC-China Summit kicks off, the Philippines has a unique chance to remind bigger players that smaller economies matter—and that fair trade has to mean something on both sides.
