Quick Read
- Xi Jinping urges Vietnam to oppose unilateral trade ‘bullying’ during his state visit.
- The Chinese leader emphasizes strengthening global free trade and supply chain stability.
- Vietnam and China signed agreements on railways, agriculture, and green economy cooperation.
- The visit comes amid escalating US-China trade tensions and Trump’s paused tariffs.
- Vietnam faces a delicate balancing act between ties with China and the US.
Xi Jinping’s Diplomatic Push in Southeast Asia
Chinese President Xi Jinping has called on Vietnam to resist unilateral trade pressures and uphold global free trade during his state visit to Hanoi. The visit marks the first stop in Xi’s diplomatic tour of Southeast Asia, aimed at strengthening ties with export-reliant economies amid escalating trade tensions with the United States.
China’s Economic Strategy
In meetings with Vietnam’s top leadership, Xi emphasized the importance of cooperation to maintain the stability of global trade systems and supply chains. According to Chinese state news agency Xinhua, Xi stated, “China’s mega market is always open to Vietnam,” and urged both nations to jointly oppose unilateral trade practices. Xi likened the need for collaboration to a boat navigating stormy waves, saying, “Only by working together can we sail steadily and far.”
US-China Trade War Context
Xi’s visit comes shortly after US President Donald Trump paused tariffs on most countries for 90 days, shifting focus squarely onto China. Trump’s trade policies have created uncertainty in Southeast Asia, with nations like Vietnam and Cambodia facing high tariffs before the pause. Vietnam’s Deputy Prime Minister Bui Thanh Son highlighted the significance of Xi’s visit, noting plans to sign around 40 agreements across various sectors, including railways and digital economy cooperation.
Vietnam’s Balancing Act
Vietnam has emerged as a key player in the global reshuffle of manufacturing supply chains, attracting Chinese investments while maintaining diplomatic ties with the US. Despite political alignment with Beijing, Hanoi has upgraded its status with Washington in recent years, hosting both Xi and US President Joe Biden in 2023. However, Vietnam faces challenges as US officials accuse it of being a “backdoor” for Chinese exports, leading to its own tariffs under Trump’s administration.
Strengthening Bilateral Ties
During his visit, Xi and Vietnamese leaders signed agreements aimed at enhancing cooperation in railways, agriculture, and the green economy. Vietnam has approved an $8.3 billion railway project linking Haiphong to China, partially funded by Chinese loans. Additionally, Vietnam is exploring the purchase of China’s domestically produced passenger aircraft.
Regional Stability and Maritime Disputes
Beyond economic ties, Xi addressed regional stability, urging Vietnam to manage differences and safeguard peace in the South China Sea. The region has seen tensions flare over disputed sovereignty claims, with recent Chinese military drills near Vietnam’s waters. In a signed article in Vietnam’s Nhan Dan Newspaper, Xi highlighted the successful delimitation of boundaries as a model for resolving maritime issues through negotiation.
Xi Jinping’s Southeast Asia tour underscores China’s efforts to position itself as a stable and reliable partner amid global trade disruptions. For Vietnam, the visit presents opportunities for economic growth but also challenges in balancing relations with both China and the US. As the region navigates complex trade dynamics, cooperation and strategic diplomacy will be key.