China, Vietnam sign deals as Xi visits Hanoi amid US tariff tensions
Chinese President Xi Jinping begins a tour of Vietnam, Malaysia, and Cambodia to strengthen alliances with exporting countries affected by tariffs. Beijing positions itself as a defender of free trade as tariff uncertainty shakes Southeast Asian markets.
Chinese President Xi Jinping began an official tour of Vietnam, Malaysia, and Cambodia this week with the intention of spreading a message: in the face of American protectionism, China represents free trade and a stable global economic order.
"Trade and tariff wars have no winners, and protectionism will lead nowhere," Xi warned in an article published in Vietnamese media before landing in Hanoi, the first stop of his trip. The Chinese leader called for strengthening cooperation with developing economies and moving toward a "multipolar, equal, and orderly world," at a time when markets are reacting nervously to Washington's latest tariff offensive.
US President Donald Trump has raised tariffs on Chinese imports to 145%, raising alarm among America's major trading partners in Asia.
Many of them, including Vietnam, which now faces a 46% tariff, have been key recipients of Chinese investment and factory relocation, in part to circumvent previous tariffs. However, the new scenario has revived fears of accelerated deglobalization.
Although the White House announced a 90-day truce for certain countries, China was excluded from the truce. This temporary pause has generated skepticism in the region, where the Chinese president is seeking to consolidate his influence. During his visit, Xi Jinping will also try to convince Southeast Asian governments to stop using their territories as platforms for the covert diversion of Chinese products, a practice increasingly criticized by Washington.
Vietnam is a major industrial and assembly center in Southeast Asia. It imports most of its products from China, with the United States as its main export market. The country is a crucial supplier of electronics, footwear, and clothing to the United States.
In the first three months of this year, Hanoi imported about $30 billion worth of goods from Beijing, while its exports to Washington totaled $31.4 billion, according to Vietnamese customs data, confirming a long-term trend in which imports from China closely match the value and fluctuations of exports to Washington.
Rail Links
Xi Jinping will visit Vietnam from April 14 to 15, and Malaysia and Cambodia from April 15 to 18. His last visits to Cambodia and Malaysia were nine and twelve years ago, respectively.
Xi's trip to Hanoi, his second in less than 18 months, aims to cement relations with a strategic neighbor that has received billions of dollars in Chinese investment in recent years as China-based manufacturers moved south to avoid tariffs imposed by the first Trump administration.
The two countries plan to sign some 40 agreements across multiple sectors, Vietnamese Deputy Prime Minister Bui Thanh Son said Saturday.
Vietnamese leader To Lam, in an article published Monday in state media, said Hanoi wanted to boost cooperation in defense, security, and infrastructure, especially rail links. It was unclear whether the agreements would be binding and involve financial commitments.
Vietnam has agreed to use Chinese loans to build new railways between the two countries, in a major confidence-building step that would boost bilateral trade and connections. However, no loan agreement has yet been announced.
Beijing is also seeking Vietnamese approval for its COMAC aircraft, which have so far struggled to find foreign buyers. Despite strong economic ties, tensions frequently arise between the countries over border disputes in the South China Sea.
Vietnam's concessions to the United States to avoid tariffs could also anger Beijing, as they include the deployment of Elon Musk's Starlink satellite communications service in the Southeast Asian nation, as well as a crackdown on some trade with China over potential rules of origin fraud.
In recent months, Vietnam has also imposed anti-dumping duties on several Chinese steel products and ended a tax exemption for low-value packages, in a move government officials described as aimed at reducing the influx of cheap Chinese goods. The other two countries on Xi Jinping's Southeast Asian itinerary, Cambodia and Malaysia, face U.S. tariffs of 49% and 24%, respectively, and have already begun contacting the United States to request a suspension.