Beijing has been urged to encourage Chinese companies to integrate more deeply with Southeast Asian economies rather than rely on the region as a transshipment route to the United States, as Washington prepares broader tariff measures on Asian exports.

The United States announced higher tariff rates on imports from Vietnam and twenty-three other trading partners, with a forty percent levy on goods diverted through Vietnam and a twenty percent rate on products made in the country.

The tariff implementation deadline was extended to August first, two thousand twenty-five.

Authorities in several Southeast Asian economies have stated that they will verify product origin to comply with US requirements.

Imports from China are facing higher average tariffs, while other Asian countries are set to face rates in the range of twenty-five to forty percent beginning in August.

Since two thousand eighteen, when the United States began imposing additional duties on Chinese goods, China has expanded trade and investment with the Association of Southeast Asian Nations.

Merchandise trade between China and ASEAN reached nine hundred eighty-two point three four billion US dollars in two thousand twenty-four, an increase of seven point eight percent from two thousand twenty-three, consolidating ASEAN as China’s largest trading partner.

In the first quarter of two thousand twenty-five, ASEAN accounted for sixteen point six percent of China’s total foreign trade.

Several Asian economies have negotiated reduced tariff rates with the United States.

Indonesia secured a rate of nineteen percent in return for removing tariff barriers on a range of US industrial and food products.

The Philippines reached a similar agreement.

Japan obtained a fifteen percent rate alongside a commitment to open its market to more US goods and to invest five hundred fifty billion US dollars in the United States.

Officials in Malaysia and Thailand said earlier they would not permit transshipments to the United States.

Regional policymakers have also discussed the potential use of China’s yuan as a partial backup funding currency, citing comparatively low yuan interest rates.

Chinese authorities have reported measures to address property market strains and local government debt, creating space to advance sectors such as advanced services.

The ASEAN Plus Three Macroeconomic Research Office forecast the ASEAN Plus Three region—comprising Southeast Asia, China, Japan, and South Korea—to grow by three point eight percent in two thousand twenty-five and three point six percent in two thousand twenty-six, down from earlier projections of four point two and four point one percent respectively, citing evolving US tariff measures and softer global demand.

The agency projected China’s growth at four point five percent for two thousand twenty-five and four point one percent for two thousand twenty-six, lower than its April estimates.

The Asian Development Bank maintained its forecasts for China at four point seven percent for two thousand twenty-five and four point three percent for two thousand twenty-six.

The agency identified tariffs, tighter financial conditions, and commodity price volatility as key risks to the regional outlook.