Xi’s Strategic Moves in the Indo-Pacific Challenge US Alliances Amid Trump’s Shift in Priorities

By Bloomberg News
Mar 26,2025 (Bloomberg) – President Xi Jinping is stepping up China’s influence in the Indo-Pacific as Donald Trump diverts his focus elsewhere. From conducting unprecedented military exercises off Australia’s coast to deploying a record number of surveillance balloons near Taiwan, Beijing is intensifying its assertiveness in the region. Additionally, China has issued stern warnings to Tokyo regarding any perceived support for Taiwan’s independence.

Trump’s recent overtures toward Russia and skepticism about NATO have raised doubts about America’s reliability as a security ally in Asia—a role it has played for decades against Beijing’s ambitions. The former president has urged Taiwan to increase its defense spending and questioned existing security agreements with Japan, suggesting that while the U.S. must protect them, they owe no such obligation in return. He also imposed tariffs on allies like South Korea and Australia.

For Xi, this moment presents an opportunity to exploit cracks in U.S.alliances while navigating Trump’s hefty tariffs on Chinese goods—now at 20%. Chinese officials are carefully calibrating their rhetoric towards Asian nations to avoid triggering U.S. retaliation; they’re vocal about Taiwan but are holding back on large-scale military drills around the island.

“the Chinese government is testing boundaries everywhere,” noted Bill Hayton from Chatham House. “They’re pushing limits but will reassess when faced with pushback.”

China’s actions reflect a broader strategy aimed at discouraging countries from aligning too closely with the U.S., notably regarding sensitive topics like territorial claims over Taiwan and issues surrounding ethnic minorities within China.

During his presidency, Joe Biden worked hard to strengthen American ties in Asia as part of a strategy to counter China’s rise—this included high-profile summits with leaders from South Korea and Japan and expanded military cooperation with the Philippines amid maritime disputes involving both nations.

Biden also broke away from previous ambiguity by