US-China deal is a lesson for the Global South

The US-China temporary trade agreement is a blunt reminder: Washington's foreign policy under President Donald Trump is transactional. Deals matter, values don't.

This lesson is crucial for the Global South. Economic leverage secures a seat at the table, not democratic credentials. 

Consider the sidelining of Jimmy Lai, the jailed Hong Kong media mogul and outspoken critic of Beijing. Ahead of the talks, Trump said he would raise Lai's case, a move that would have antagonized the world's second-largest economy. 

China views him as a national security threat, and Lai is facing charges that could imprison him for life. The pro-democracy figure denies the allegations. 

"I think talking about Jimmy Lai is a very good idea," Trump said in a May 7 radio interview. "We'll put it down as part of the negotiation."

But there was no mention of Lai in the official joint statement. Long-standing US concerns over forced labor and violations of religious freedoms in the Xinjiang region, which the previous administration had called genocide and crimes against humanity, were also notably absent from the discussions. 

Instead, both sides referenced their "long-term, and mutually beneficial economic and trade relationship." Trump also said that he would speak to the Chinese President Xi Jinping soon. Negotiations have resulted in lower tariffs, and a three month timeline to work toward a broader agreement. 

The absence of any formal reference to Lai is telling, even if conversations may be taking place behind the scenes. Trump doesn't appear to care about human rights, notes Susannah Patton, director of the Southeast Asia Program at the Lowy Institute. 

"A lot of his administration's cuts to media funding and civil society will be positive for autocrats in Southeast Asia, like Cambodia and Myanmar," she told me. The message is clear — strongmen have little to fear.

Unlike the Biden administration, which emphasized democratic credentials, Trump has signaled that alignment with the US depends more on what partners can bring to the table. 

Diplomats have told me that countries affected by his Liberation Day tariffs are parsing China's success at striking this momentary reprieve. 

Almost no nation has been spared by the levies. They targeted allies and adversaries alike, including those in the Global South, a diverse group of countries encompassing the majority of the world's population, across Africa, Asia, the Middle East, and Latin America. 

Trump's display of profit over principle will likely resonate with many who have long viewed America's moralizing on human rights as  condescending and hypocritical. 

His Middle East trip last week is another example. The warmth with which Trump met Saudi Arabia's Crown Prince Mohammed bin Salman marked a sharp departure from President Joe Biden's uncomfortable fist-bump with the royal in 2022. 

Trump openly praised him, saying "I like him too much," and applauded the kingdom's modernization efforts. He also announced the US had secured a multi-billion dollar investment from Saudi Arabia, although the details of the deal remain elusive. 

There is nuance here. Both presidents engaged with the crown prince despite a 2021 US intelligence report concluding that he'd approved the assassination of Washington Post journalist Jamal Khashoggi. But Biden indicated that he raised the issue during his meeting. 

His and previous administrations tied values-based diplomacy to geopolitical and economic goals. Trump allows countries to pursue their own agendas without interference. 

This shift is already reshaping alliances across the Global South. Nations are pivoting toward a multipolar strategy, balancing China and the US while strengthening ties with regional powers like India. Smaller states, from Singapore to New Zealand, are forging their own networks and are less willing to rely so much on Washington.

The US ignores the long-term damage of this approach at its peril. Beijing's authoritarian style of governance promotes stability and state control over international norms.

This is increasingly appealing to nations who don't want to be lectured to, but it also risks a drift away from the rules-based order. This results in a world where power beats principle and ultimately, that weakens international law.

We are already seeing evidence of this. Trump's first 100 days resulted in a human-rights emergency, Amnesty International warned. It added that his sweeping foreign aid cuts worsened conditions globally.

To many in the Global South, America's new pragmatism may feel refreshing, perhaps even overdue. But over time, a world led by interests rather than principles is headed for deeper instability.

Karishma Vaswani is a Bloomberg Opinion columnist covering Asia politics with a special focus on China. 

Disclaimer: This article first appeared on Bloomberg, and is published by special syndication arrangement