Xi Jinping calls for stronger China-Vietnam industrial ties amid trade war

Chinese President Xi Jinping has embarked on his first international trip to meet with leaders in Vietnam, Malaysia, and Cambodia amid US trade war

Chinese President Xi Jinping has called for deepening industrial and supply chain cooperation with Vietnam, while urging regional countries to stand firm against trade protectionism, in a message published in Vietnamese state media on Monday ahead of his official visit to Hanoi.

 

Xi will begin a three-nation Southeast Asia tour today with stops in Vietnam, Malaysia and Cambodia. Ahead of his visit, Xi reiterated his message on safeguarding the global multilateral trade system. Without naming the United States, he issued a veiled rebuke of trade wars and tariffs, warning they offer no viable solution and serve only to destabilise the international economic order.

 

“There are no winners in trade wars and tariff wars,” Xi was quoted in an article published in Vietnam’s Nhan Dan newspaper. “We must firmly safeguard the multilateral trading system, maintain the stability of the global industrial and supply chains, and preserve the international environment for open cooperation,” Xi said.

 

Collaboration in emerging tech

Xi further highlighted the need for China and Vietnam to expand their collaboration in emerging technologies such as 5G, artificial intelligence (AI), and green development, saying such cooperation would deliver tangible benefits to both nations’ people. Xi also invited increased Vietnamese exports to China and encouraged Chinese enterprises to invest and establish businesses in the Southeast Asian neighbour.

 

Defence and security collaboration

Vietnam Communist Party Chief To Lam echoed the sentiment for closer ties, stating Hanoi prioritises cooperation with China in areas such as diplomacy, defence, security, and infrastructure. In an article authored by Lam, published by Vietnam state media, the leader identified three proposed rail links between the two countries as the highest priority for bilateral infrastructure development.

 

Lam also wrote on China and Vietnam’s friendship and drew attention to their cultural similarities. He mentioned, “Vietnam-China friendship and cooperation is a fundamental and long-term interest, an earnest aspiration for generations of the two peoples for peace and friendship, of great significance to the revolutionary cause in each country...”

 

US tariffs target Asian supply chain

The Chinese president’s comments come at a time of heightened global trade tensions with the US. Under President Donald Trump, Washington raised tariffs on Chinese goods, while temporarily easing duties on other Southeast Asian economies.

 

The move is seen as an attempt to persuade countries like Vietnam, Malaysia and Cambodia to align more closely with US trade policy, amid growing scrutiny of alleged Chinese transshipment through these nations. China now faces a 145 per cent tariff after tit-for-tat measures. Vietnam is facing a 46 per cent reciprocal tariff from the US, Malaysia 24 per cent and 49 per cent for Cambodia.

 

In response to these demands, Vietnam has recently taken steps to address concerns over goods falsely labelled to evade tariffs, a move widely interpreted as a concession to Washington.

 

China rallies Asian neighbours against Trump tariffs

As Xi embarks on his first overseas tour of the year, he continues to rally neighbouring nations to stand united against what he has dubbed US’ ‘abuse’ of tariffs. China has also called on India, however, New Delhi has not responded to this.

 

Meanwhile, China has met with European Union leaders, as well as South Korea and Japan to discuss cooperation in light of Trump’s reciprocal tariffs.