Key Deals
HANOI: Chinese President Xi Jinping has called for deeper economic ties between China and Vietnam during his official visit to Hanoi, as both countries navigate rising global trade tensions, especially amid increasing US tariffs.
Xi’s visit, which comes amid Washington’s imposition of 145% duties on Chinese imports and the looming threat of 46% tariffs on Vietnamese exports starting in July, marks an important moment for regional cooperation.
Writing in Vietnam’s Communist Party newspaper Nhandan, Xi urged the two countries to enhance cooperation in production and supply chains, artificial intelligence, and the green economy. Without directly naming the United States, Xi warned that there are “no winners in trade wars and tariff wars.”
After a meeting with Vietnam’s top leader To Lam, the two countries signed dozens of cooperation agreements. While the full contents were not made public, the deals reportedly cover supply chain development and railway cooperation.
Additionally, a memorandum of understanding was signed to bolster collaboration between China’s Council for the Promotion of International Trade and Vietnam’s Chamber of Commerce and Industry—critical for validating the origin of goods, especially amid US scrutiny over trade fraud.
Vietnam, serving as a major manufacturing and assembly hub in Southeast Asia, imports most of its raw materials from China while exporting largely to the US. In early 2025, Vietnamese imports from China totaled around $30 billion, while exports to the US reached $31.4 billion. Vietnam is currently tightening regulations to ensure that products labeled “Made in Vietnam” meet origin requirements, a move seen as a response to US pressure.
Xi’s trip also marks a significant advancement in transportation ties. Vietnam agreed to use Chinese loans for future railways linking the two countries, although the financing details remain undisclosed.
Additionally, Vietnam has now recognized China’s aviation authority, a step that paves the way for Chinese COMAC planes to enter the Vietnamese market. VietJet signed a memorandum with COMAC that may lead to leasing two COMAC C909 aircraft, operated by Chengdu Airlines.
Despite these developments, underlying tensions persist—especially in the South China Sea, where territorial disputes remain unresolved. Furthermore, Vietnam’s collaboration with Elon Musk’s Starlink satellite network and its imposition of anti-dumping duties on Chinese steel reflect a delicate balancing act as Hanoi manages its relationships with both Washington and Beijing.
Following his Hanoi stop, Xi will continue his Southeast Asian tour with visits to Malaysia and Cambodia from April 15 to 18, marking his first visit to those countries in nearly a decade.
