Under U.S. Tariff Pressure, Chinese President Xi Focuses on Strengthening Trade Ties with Vietnam
Hanoi, April 14 (Reuters):
In response to mounting tariff pressure from the United States, Chinese President Xi Jinping on Monday called for closer cooperation with Vietnam in trade and supply chains. He began his three-nation Southeast Asia tour in the Vietnamese capital, Hanoi.
As part of the visit, Vietnam’s Deputy Prime Minister Bui Thanh Son said the two countries are expected to sign agreements across nearly 40 sectors. Vietnamese top leader To Lam expressed interest in enhancing ties in rail connectivity, defense, and security.
The visit carries added significance following the 145% tariffs imposed by the U.S. on Chinese goods. Meanwhile, Vietnam is also in talks to avoid a potential 46% tariff from the U.S. on some of its exports.
In a notable move during the visit, China’s state-owned aircraft manufacturer COMAC signed a memorandum of understanding with VietJet, a Vietnamese budget airline. Under this agreement, two C909 aircraft will be leased, to be operated by Chengdu Airlines crew.
However, there are still underlying tensions in China-Vietnam relations due to territorial disputes in the South China Sea and Vietnam’s tightening of controls on Chinese imports under U.S. influence. These include tariffs on certain Chinese steel products and revocation of tax exemptions on low-cost goods.
President Xi’s Vietnam visit will continue until April 15, after which he will travel to Malaysia and Cambodia. This marks his second visit to both Malaysia (after 12 years) and Cambodia (after 9 years).
