President Xi Jinping is set on filling the economic vacuum created by rising US protectionism, and global investors are watching closely.
Nigel Green, chief executive officer of deVere Group, noted that while US policy increasingly focuses on economic nationalism, China is accelerating long-term investments in the Global South. This movement signals what could turn into one of the decade’s most powerful investment megatrends.
Xi Jinping’s recent visits to Vietnam, Malaysia, and Cambodia, nations grappling with punitive US tariffs, reinforce Beijing’s commitment to deepening strategic, industrial, and financial ties. Green observed that while the United States turns inward by raising walls and weaponising trade, China is looking 10 to 20 years ahead by forging enduring partnerships, investing in critical infrastructure, and supporting emerging technologies.
These developments are indicative of a broader strategic pattern that repositions the economic spotlight from traditional Western markets to countries that represent future population growth, rising consumer demand, and substantial industrial potential.
China’s role in the region is already significant. In 2024, for example, it became Vietnam’s third-largest investor and remains a major financial backer in both Cambodia and Malaysia. During his visit to Vietnam, Xi Jinping emphasized the need to work collaboratively on industrial supply chains, green development, artificial intelligence, and 5G technology.
In an article for Vietnam’s official party newspaper, he warned that trade wars and tariff battles offer no real winners, a message that underscored his commitment to maintaining an open, cooperative global trading system. By aligning with the Global South, China is positioning itself as a long-term partner to developing nations, thereby upholding their shared economic interests.
This strategic pivot comes at a time when the United States appears to be retreating from its previous global commitments. As US trade policies isolate traditional partnerships, they inadvertently drive China closer to emerging markets that are poised for growth. DeVere analysts anticipate accelerated capital flows, an increase in trade agreements, and a proliferation of joint ventures between China and countries across Asia, Africa, and Latin America. The shifting dynamics in asset allocation and supply chain positioning serve as a harbinger of a new era in which the Global South assumes a more prominent role in the world economy.
Historical economic transformations often arise from the interplay of policy shifts and strategic investments. In the current environment, the retreat of one global power and the proactive advance of another offer a nuanced glimpse into a future characterized by emerging markets taking on a central role in economic development. The narrative unfolding today reflects a calculated response to geopolitical pressures and an anticipatory reorientation toward long-term, resilient growth.
