China and Vietnam explore options in response to the tariff attacks by U.S. President Trump.

On Monday, Chinese President Xi Jinping was received at the Hanoi airport by Vietnamese President Luong Cuong and later met with the Communist Party Secretary To Lam. His visit, during which a dozen agreements are expected to be signed, comes as both countries explore options in response to the tariff attacks by U.S. President Donald Trump.

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Beijing is already facing U.S. tariffs of 145%, to which it responded with 125% tariffs, while Vietnam is negotiating reductions to the 46% tariffs that were announced and later temporarily suspended by Washington.

Xi took the opportunity to deliver a message against protectionism ahead of his visit. In an article published in the Vietnamese outlet Nhan Dan, Xi emphasized that “trade and tariff wars have no winners and protectionism has no way out.”

“It is necessary to firmly defend the multilateral trading system, sustainably maintain the stability of global production and supply chains, and sustainably preserve an open and cooperative international environment,” he said, stressing the need to “strengthen coordination” in sectors such as education, agriculture, infrastructure, and technology, “in the face of the rise of unilateralism and protectionism.”

A Balancing Act

Vietnam is performing a balancing act with Xi’s visit, as it strengthens ties with its main trading partner while trying to appease Washington, which accuses it of acting as a transshipment point for Chinese goods abroad.

Considered one of the winners of the trade war during Trump’s first term (2017–2021), Vietnam has essentially paid the price of hosting Chinese factories that relocated to avoid tariffs at the time.

This Chinese offshoring helped boost Vietnam’s trade surplus with the U.S., which last year reached a record annual figure of US$124 billion—surpassed only by China, the EU, and Mexico.

In an article published in the Financial Times last week, Trump’s trade advisor Peter Navarro wrote that the U.S. “wants to see countries like Cambodia, Mexico, and Vietnam stop allowing China to evade U.S. tariffs by acting as transshipment points for its exports.”

On the other hand, China—which has ongoing territorial tensions with Vietnam in the South China Sea—has been Vietnam’s main trading partner for over two decades, with trade exceeding US$260 billion in 2024.

In recent years, Vietnam has grown closer to Washington with the goal of diversifying its exports, its main economic driver. In a last-minute move, Trump decided last week to suspend the additional tariffs for 90 days on countries that seek to negotiate with Washington, such as Vietnam, but increased tariffs on China, which in turn responded with a similar measure.

During this tour, Xi will also visit Malaysia and Cambodia—both affected by additional tariffs of 24% and 49%, respectively—to strengthen diplomatic and trade relations.

Vietnam, for its part, waves the flag of neutrality under the so-called “bamboo diplomacy,” referencing its ability to sway between powers, and is seeking new partners. In recent weeks, it welcomed Brazilian President Lula da Silva and Spanish President Pedro Sanchez.

teleSUR/ JF

Source: EFE

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