China, Vietnam sign deals as Xi visits Hanoi amid tariff tensions

China’s President Xi Jinping on Monday called for stronger ties with Vietnam on trade and supply chains amid disruptions caused by US tariffs, as he attended in Hanoi the signing of dozens of cooperation agreements between the two Communist-run nations.

US President Trump said that China and Vietnam were meeting to figure out how to harm the US.

The visit, planned for weeks and part of a wider trip in Southeast Asia, comes as Beijing faces 145% US duties, while Vietnam is negotiating a reduction of threatened US tariffs of 46% that would otherwise apply in July after a global moratorium expires.

“The two sides should strengthen cooperation in production and supply chains,” Xi said in an article in Nhandan, the newspaper of Vietnam’s Communist Party, posted ahead of his arrival on Monday. He also urged more trade and stronger ties with Hanoi on artificial intelligence and the green economy.

After he met Vietnam’s top leader To Lam, the two countries signed dozens of cooperation agreements, including deals on enhancing supply chains and on cooperation over railways. On Saturday Vietnam’s Deputy PM had said around 40 agreements would be signed. A separate aviation deal was signed on Sunday.

Under pressure from the US, Vietnam is tightening controls on some trade with China to make sure goods exported with a “Made in Vietnam” label have sufficient added value to justify that.

Will focus on joint modernisation: Xi | Beijing’s march exports up

• Xi Jinping said China will ensure continuity and stability in its neighbourhood diplomacy and jointly advance the modernisation of Asia. Xi will continue his Southeast Asian trip on Tuesday by visiting Malaysia and Cambodia from April 15 to 18.
• 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.
• Beijing obtained Vietnam’s approval for the use of China-made COMAC passenger jets in the Southeast Asian nation.
• China’s exports rose sharply in March after factories rushed out shipments before the latest US tariffs took effect. Exports rose 12.4% Y-o-Y.