Beijing (TDI): Chinese President Xi Jinping has called for stronger trade ties with Vietnam amid escalating trade tensions with the United States.
The remarks came during President Xi’s visit to Vietnam on Monday.
President Xi Jinping announced to visit three Southeast Asian nations after the US President imposed 125% tariffs on Chinese imports.
During the tour, he would encourage Vietnam, Malaysia and Cambodia, to enhance trade with China.
Vietnam had also been negotiating 46% tariffs, which would reinstate after the 90-day tariff pause expire.
Cambodia and Malaysia had also been facing 49% and 24% tariffs respectively and have reached out to the United States to negotiate the levies.
President Xi, in his article published in Nhandan – a newspaper of Vietnam’s Communist Party – said that both Vietnam and China should strengthen cooperation in production and supply chains.
He also urged to boost trade ties between the two countries in artificial intelligence and green economy.
Read More: China Hits Back: 125% Tariffs on US Goods
Vietnam had been a key industrial and assembly hub in the Southeast Asian region, importing materials from China, and exporting finished products to the United States including critical electronic, shoes and apparels.
In the last three months, Vietnam had imported products worth $30 billion from China, meanwhile exported products worth $31 billion, showing a close match between its imports from China and exports to the United States.
However, due to the increasing pressure from the United States, Vietnam had limited its imports from China, ensuring its exports to the United States have sufficient added value and they are exclusively “made in Vietnam.”
The General Secretary of the Communist Party of Vietnam Central Committee, To Lam, stated in an article on Monday that Vietnam would seek cooperation in defense, security, and railway infrastructure.
China, who had invested billions of dollars in Vietnam in the recent years, aim to further strengthen bilateral economic and trade relations with Vietnam.
According to the Deputy Prime Minister of Vietnam, Bui Thanh Son, during this latest visit, Chinese President would sign around 40 agreements with Vietnam, to advance cooperation in various sectors.
Read More: Trump Halts Tariffs for 90 Days, Imposes 125% Levy on China
Vietnam had earlier agreed to utilize Chinese loans to develop railway infrastructure, which would link Vietnam with China, thereby boosting bilateral trade between the two countries. However, no formal agreements have been signed yet.
China and Vietnam have been seeking to formalize an agreement on the purchase of China’s COMAC airplanes, which has so far struggled to attract any foreign buyers.
A memorandum of understanding (MoU) was signed between COMAC and Vietnamese airline Vietjet on Sunday, according to which Vietnam would lease two COMAC C909 airplanes.
It is important to note that both countries, in past, had conflicts over the control of South China Sea, and Vietnam had also imposed anti-dumping duties on multiple steel products of China.
Javaria Khalid is a Web Contributor at The Diplomatic Insight Magazine. She specializes in covering geopolitical developments, international relations, diplomatic, and socio-economic developments in Europe and Pakistan.
