HANOI – On Monday, April 14, Chinese President Xi Jinping called for deeper economic cooperation with Vietnam, particularly in trade and supply chains, as the two nations signed multiple agreements in Hanoi amid escalating US tariff tensions. Xi’s visit, part of a broader Southeast Asia tour, comes as China faces 145% tariffs from the United States, while Vietnam is working to reduce a potential 46% US tariff expected in July. Writing in Vietnam’s Communist Party newspaper Nhandan, Xi stressed the importance of enhancing collaboration in manufacturing, trade, AI, and green technologies.

Following talks with Vietnam’s leader To Lam, the two countries signed 45 cooperation agreements, according to state media, including deals on railway and supply chain development. However, details of the agreements remain undisclosed, with no confirmed financial obligations. Under US pressure, Vietnam has tightened oversight of Chinese goods re-exported with “Made in Vietnam” labels to ensure adequate value addition occurs locally. Xi, without naming the US, said in his article, “There are no winners in trade or tariff wars.” He later emphasized with Prime Minister Pham Minh Chinh the need for both countries to stand against unilateral “bullying.”

One agreement aims to strengthen cooperation between the China Council for the Promotion of International Trade and the Vietnam Chamber of Commerce and Industry, particularly in certifying product origins. Vietnam, a manufacturing hub, imports mostly from China while the US remains its top export market. Customs data shows Vietnam imported roughly $30 billion worth of goods from China and exported about $31.4 billion to the US in the first quarter of the year.

Meanwhile, former US President Donald Trump criticized the talks, suggesting China and Vietnam were plotting against US interests. However, he added, “I don’t blame them.” A US official noted Trump and Vietnam’s Lam had previously agreed to reduce mutual tariffs and were planning to meet in person soon.

As part of his ongoing Southeast Asia trip, Xi will next visit Malaysia and Cambodia, his first trips to those countries in nearly a decade. Xi’s second visit to Vietnam in 18 months aims to reinforce ties with a country that’s attracted billions in Chinese investment as manufacturers shift operations southward to escape earlier US tariffs.

Vietnam’s leader Lam expressed interest in expanding cooperation in defense, infrastructure, and particularly rail connections, with plans to build new railway lines using Chinese loans—though no official credit deal has been announced. Lam also encouraged China to provide low-interest loans. China also gained Vietnam's clearance for aircraft certified by its own aviation authority, enabling the future deployment of China-made Comac jets in Vietnam. A memorandum of understanding was signed on Sunday between Vietjet and Comac, potentially involving leasing of two C909 jets for domestic routes.

Despite robust trade, maritime disputes in the South China Sea continue to strain relations. Vietnam’s recent tariff-related concessions to the US, including adopting Elon Musk’s Starlink service and imposing anti-dumping duties on Chinese steel, could further complicate ties. Vietnam has also ended tax exemptions for small-value imports, a move targeting low-cost Chinese goods.

Disclaimer: This image is taken from Reuters.