China has signed about 40 cooperation agreements with Vietnam.
This occurred during Chinese President, Xi Jinping’s visit to Hanoi.
Xi’s visit comes almost two weeks after the United States slapped a 46% levy on Vietnamese goods as part of a global trade blitz.
Although the reciprocal tariffs on Vietnam and most other countries have been paused, China still faces enormous levies and is seeking to tighten regional trade ties and offset their impact during Xi’s first overseas trip of the year.
The Chinese President was earlier welcomed to Hanoi Monday with a 21-canon salute, a guard of honour and rows of flag-waving children at the presidential palace.
He then held talks with Vietnam’s top leaders, including General Secretary To Lam.
Speaking during a meeting with Lam, Xi said that Vietnam and China were “standing at the turning point of history … and should move forward with joint hands.”
“In the face of turmoil and disruption in the current global context, China and Vietnam’s commitment to peaceful development, and deepening of friendship and cooperation and has brought the world valuable stability and certainty.”
Xi Jinping
He also met with Vietnam’s Prime Minister Pham Minh Chinh.
The two sides were reported to have signed a series of memorandums in areas including strengthening cooperation in supply chains, railroad development and environmental protection.
Nhan Dan, the official mouthpiece of Vietnam’s Communist Party, said that China and Vietnam will speed up a $8 billion railway project connecting the two countries in a deal that was approved in February.
Vietnam is experienced at balancing its relations with the U.S and China. It is run under a communist, one-party system like China but has had a strong relationship with the US.
In 2023, it was the only country that received both US President Joe Biden and China’s Xi Jinping.
That year it also upgraded the U.S. to its highest diplomatic level, the same as China and Russia.
Vietnam was one of the biggest beneficiaries of countries trying to decouple their supply chains from China, as businesses moved here. China is its biggest trading partner, and China-Vietnam trade surged 14.6% year-on-year in 2024, according to Chinese state media.
After Vietnam, Xi is expected to go to Malaysia next and then Cambodia.
Closer Ties Between China And Neighbours Expected
Shaun Rein, Managing Director at China Market Research Group, opined that he expects closer future ties between China and its neighbours amid the growing tensions between Washington and Beijing.
Speaking to a news agency, Rein said that Trump’s huge tariffs on Chinese exports look like they are trying to contain China’s economic growth, “and maybe even destabilise the Chinese Communist Party and push for regime change.”
“So it’s very important that Xi doesn’t back down. The CCP and the Chinese people appear to have bounded together and said, ‘We’re going to push back hard against Trump’ and show no weakness, as well as build alliances across Asia.
“That’s why Xi is visiting Vietnam, Cambodia and Indonesia this week. These countries form part of China’s biggest trading bloc – making up roughly 17 percent of overall trade, as opposed to approximately 14 percent with the US.”
Shaun Rein
He also predicted that China and other Asian countries’ trade will bloom over the next five to 10 years.
Asked what Xi can offer that the Trump administration can’t, Rein replied, “Stability and mutual respect.” He added that for many countries in Asia, “Trump is viewed as trying to contain them also through elevated tariffs.”
However, Rein cautioned that there are “legitimate fears” that Southeast Asian countries are being flooded with cheap Chinese imports. “I think that Xi Jinping is going to push for more investment into that region to mollify concerns that China is coming to take over,” he said.
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