Xi of China Calls for Enhanced Trade Relations with Vietnam as US Tariff Tensions Escalate

President Xi Jinping has emphasized the importance of enhancing trade cooperation with Vietnam amid escalating global tariff tensions involving the US.

On Monday, Chinese President Xi Jinping emphasized the need for enhanced collaboration with Vietnam regarding trade and supply chains as he commenced a three-nation tour of Southeast Asia, landing in Hanoi amidst global economic strains caused by US tariffs.

The visit occurs during a period when Beijing is facing significant 145% tariffs imposed by the United States, while Vietnam is engaged in discussions to lower potential US duties of up to 46% that may come into effect in July following the expiration of a global moratorium.

In an article featured in Nhandan, the official newspaper of Vietnam’s Communist Party, Xi emphasized the importance of strengthening relations between the two nations, especially in the fields of production, supply chains, artificial intelligence, and the green economy.

“The two sides should enhance collaboration in production and supply chains,” Xi wrote, indicating a wish for tighter economic alignment in the face of increasing trade pressure from Washington.

Vietnam serves as a significant industrial and assembly center in Southeast Asia, relying on China for the majority of its raw materials and components, while directing its exports of finished goods mainly to the United States. The country has recently strengthened trade controls to guarantee that products marked “Made in Vietnam” fulfill value-added requirements essential to prevent them from being categorized as Chinese goods re-exported to bypass US tariffs.

Customs data indicate that in the first quarter of this year, Vietnam imported around $30 billion in goods from China, while exporting $31.4 billion to the United States — a trend that highlights the country’s strategic position in global supply chains, especially in electronics, footwear, and apparel.