China, Vietnam sign deals as Xi visits Hanoi amid US tariff tensions

Monday 14 April 2025 - 16:10

By: Zahouani Ilham

China, Vietnam sign deals as Xi visits Hanoi amid US tariff tensions

In his visit to Hanoi on April 14, Chinese President Xi Jinping emphasized the importance of deepening trade and supply chain cooperation between China and Vietnam in response to challenges posed by U.S. tariffs. Xi's visit, part of a broader Southeast Asia tour, follows the imposition of significant tariffs by the U.S. on China, which face a 145% duty, while Vietnam navigates the possibility of a 46% tariff set to take effect in July.

Ahead of his visit, Xi published an article in Vietnam’s Nhandan newspaper, urging both nations to enhance collaboration, especially in production and supply chains. He also highlighted the need for stronger economic ties, particularly in the fields of artificial intelligence and the green economy. "There are no winners in trade wars," Xi remarked, though he refrained from directly naming the U.S.

During the visit, Vietnam’s top leader, To Lam, and Xi oversaw the signing of multiple agreements aimed at strengthening bilateral cooperation. These included initiatives related to supply chain enhancements and railways, although details about any financial commitments remain unclear.

Vietnam has been under pressure from the U.S. to monitor trade with China, ensuring that goods labeled "Made in Vietnam" meet the necessary criteria for export to the U.S. In line with this, a memorandum of understanding was signed to bolster cooperation between the China Council for the Promotion of International Trade and the Vietnam Chamber of Commerce and Industry, focusing on certifying the origin of goods.

As a major manufacturing hub in Southeast Asia, Vietnam’s economy is heavily interlinked with both China and the U.S. In the first quarter of 2025, Vietnam imported approximately $30 billion worth of goods from China, while its exports to the U.S. reached $31.4 billion, showcasing the trade symbiosis between the two countries.

After concluding his visit to Hanoi, Xi will continue his Southeast Asia tour with stops in Malaysia and Cambodia. The trip to Vietnam, his second in less than 18 months, aims to solidify China’s relationship with a key regional partner. Vietnam has seen substantial Chinese investment, particularly as manufacturers moved south to avoid tariffs imposed during the Trump administration.

Vietnam’s leadership has expressed interest in expanding cooperation with China in defense, security, and infrastructure, particularly regarding rail connections. While there are discussions of using Chinese loans for new rail projects, no formal loan agreements have been finalized yet.