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US-China Alliance Securing Race... Xi Jinping's Three-Country Tour Starting with Vietnam

Meeting with Vietnamese Leadership on the 14th
Xi Emphasizes Strengthening Cooperation in Industry and Emerging Fields
Vietnam Seeks to Expand Collaboration in Railways and Digital Economy
Countries Caught Between the U.S. and China...
Diplomatic Strategy Likely to Be Crucial

US-China Alliance Securing Race... Xi Jinping's Three-Country Tour Starting with Vietnam On the 14th (local time), Chinese President Xi Jinping (left), who visited Vietnam for a two-day schedule, is seen talking with Vietnamese President Vuong Cuong (right) at Hanoi International Airport in Vietnam. Photo by Reuters Yonhap News

Chinese President Xi Jinping embarked on a tour of three Southeast Asian countries starting with Vietnam on the 14th (local time) to seek cooperation in response to the Trump administration's 'tariff war.' Attention is focused on how Vietnam, which was labeled the 'worst country' due to its large trade surplus with the U.S. and was hit with an additional 46% reciprocal tariff, will manage its relationship with China.


Meeting with Vietnamese Leadership on the 14th

According to U.S. news agencies Reuters, Bloomberg, AFP, and state-run Vietnam News Agency (VNA) and China's Xinhua News Agency, President Xi visited Hanoi, Vietnam, on the day to hold talks with Vietnamese leaders including Party Secretary General Nguyen Phu Trong.


This tour marks Xi's first overseas visit this year and his fourth visit to Vietnam since assuming the presidency. Xi is advocating joint responses with major trade partners against the Trump administration's tariff war. The British daily The Guardian noted, "This is seen as a diplomatic move to highlight China’s image as a stable partner amid the escalating U.S.-China trade war."


Before the visit, Xi stated in an article for the Vietnamese Communist Party’s official newspaper 'Nhan Dan' (People) that "there are no winners in trade wars and tariff wars, and protectionism has no exit." He added, "We must firmly maintain the multilateral trading system, ensure the stability of global industrial and supply chains, and uphold an open and cooperative international environment."


US-China Alliance Securing Race... Xi Jinping's Three-Country Tour Starting with Vietnam Chinese President Xi Jinping is visiting Vietnam for a two-day schedule starting on the 14th (local time), and citizens are waving Chinese flags in a welcoming gesture at Hanoi International Airport in Vietnam. Photo by Reuters

He further emphasized that the two countries are a 'community of shared destiny,' saying, "The two countries should strengthen cooperation in industry and supply chains and expand collaboration in emerging fields such as 5G, artificial intelligence (AI), and green development to bring greater benefits to the peoples of both nations." To this end, he expressed readiness to cooperate on projects including the construction of three railway lines connecting Vietnam and China and the development of smart ports.


In response, Secretary General Nguyen Phu Trong, in an article for China’s state-run People’s Daily, called Xi "Vietnam’s sincere comrade and close friend," noting that Xi is the Chinese top leader who has visited Vietnam the most. He also pointed out that China is Vietnam’s largest trading partner and the third-largest foreign investor. He stressed that the two countries should focus on implementing key bilateral cooperation projects such as the construction of three railway lines.


Deputy Prime Minister and Foreign Minister Bui Thanh Son expressed Vietnam’s expectation to strengthen cooperation in railways, agricultural trade, digital economy, and green economy during this visit, and said the two countries plan to sign about 40 agreements across various fields. For example, Vietnam is expected to introduce Chinese loans for the railway construction project connecting northern Vietnam and China and approve the operation of China’s first domestically produced medium-sized passenger aircraft, the Commercial Aircraft Corporation of China (COMAC) C919, in Vietnam as 'gifts' during this visit.


Countries Caught Between the U.S. and China... Diplomatic Strategy Likely to Be Crucial

This tour is expected to provide an opportunity to observe the diplomatic strategies of neighboring countries amid the intensifying U.S.-China trade war. Vietnam, the first country on Xi’s tour, has close economic ties with both countries, making its dilemma deep. It is China’s largest trading partner within ASEAN (Association of Southeast Asian Nations) and was considered the biggest beneficiary of the U.S.-China trade war during Trump’s first term. U.S. exports account for about 30% of Vietnam’s gross domestic product (GDP).


Vietnam was targeted with a super-high 46% reciprocal tariff by the U.S. in the list of reciprocal tariffs announced on the 2nd, being identified as a route for rerouting Chinese goods to the U.S. through Vietnam. As a result, Vietnam is working hard to reduce U.S. tariffs by cracking down on illegal transshipment, where Chinese products are brought into Vietnam and only the country of origin label is changed to 'Vietnamese' before export to the U.S.


Meanwhile, Xi is scheduled to visit Malaysia and Cambodia from the 15th to the 18th. Like Vietnam, Malaysia and Cambodia were also hit with high tariffs by the U.S. government, at 24% and 49% respectively.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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