China’s Xi Jinping Visits Vietnam, Bolsters Ties Amid U.S. Tariff Storm, Sparking Washington’s Alarm

Chinese President Xi Jinping made a high-profile visit to Vietnam on Monday, intensifying global trade tensions, as Beijing and Hanoi signed 45 cooperation agreements to deepen economic ties, particularly in trade and supply chains.

The move, part of Xi’s broader Southeast Asia tour, has raised fresh concerns in Washington, with U.S. President Donald Trump accusing the two communist-led nations of conspiring to undermine American interests.

“I don’t blame China; I don’t blame Vietnam,” Trump told reporters at the White House. “That’s a lovely meeting. Meeting like, trying to figure out, ‘how do we screw the United States of America?’”

The visit comes against the backdrop of a bruising U.S.-China trade war, exacerbated by steep tariffs and protectionist policies that have reshaped global commerce. Xi’s trip, which includes stops in Malaysia and Cambodia through Friday, underscores China’s strategy to counter U.S. economic pressure by strengthening regional alliances, with Vietnam—a key industrial hub—emerging as a linchpin.

A Strategic Partnership in Hanoi

Xi’s two-day visit to Hanoi, his second in less than 18 months, saw him meet Vietnam’s top leader, To Lam, and Prime Minister Pham Minh Chinh. The leaders oversaw the signing of dozens of agreements covering supply chains, railways, artificial intelligence, and green energy, according to documents reviewed by Reuters and state media from both nations. While the specifics of these deals remain undisclosed, their scope signals an ambitious push to integrate economies amid global trade disruptions.

In an article published in Nhandan, the newspaper of Vietnam’s Communist Party, Xi called for enhanced cooperation in production and supply chains, warning that “there are no winners in trade wars and tariff wars.” Without naming the United States, he criticized protectionism as a dead-end, a sentiment echoed in his meeting with Chinh, where he urged opposition to “unilateral bullying,” per China’s Xinhua news agency.

Among the agreements, a memorandum of understanding between the China Council for the Promotion of International Trade and the Vietnam Chamber of Commerce and Industry aims to streamline certification of goods’ origins—a critical issue as Vietnam faces U.S. scrutiny over trade practices. Vietnam also greenlit Chinese loans for new rail links to boost bilateral trade, though no credit agreement was finalized. To Lam pressed China for concessional loans, Vietnamese state media reported, highlighting Hanoi’s eagerness to deepen infrastructure ties.

In a significant concession, Vietnam approved planes certified by China’s aviation regulator, paving the way for China’s COMAC passenger jets to operate in the country. On Sunday, Vietnam’s budget airline Vietjet signed an MoU with COMAC, potentially to lease two C909 jets for domestic routes, a deal that could bolster China’s struggling aviation exports.

The U.S.-China Trade War Fueling A Global Fault Line

The Hanoi summit unfolds as the U.S.-China trade war, reignited under Trump’s second term, reaches new heights. The United States has imposed 145% duties on Chinese imports, targeting electronics, steel, and other goods to curb Beijing’s economic influence and protect American industries. These tariffs, building on measures from Trump’s first administration, have pushed Chinese manufacturers to relocate operations to Southeast Asia, with Vietnam receiving billions in investments to sidestep U.S. levies.

Vietnam, meanwhile, faces its own tariff threat: a potential 46% duty on its exports to the U.S. set to take effect in July 2025, after a global trade moratorium expires. Hanoi is negotiating to reduce these tariffs, a process complicated by Washington’s demand that Vietnam ensure its exports—labeled “Made in Vietnam”—meet strict rules of origin. This has led Vietnam to tighten controls on trade with China, cracking down on goods that may be minimally processed in Vietnam to dodge U.S. tariffs.

Vietnam’s trade data underscores its pivotal role: in Q1 2025, it imported $30 billion in goods from China, primarily components for electronics, shoes, and apparel while exporting $31.4 billion to the U.S., its largest market. This near-parity reflects Vietnam’s position as a conduit between Chinese supply chains and American consumers, a dynamic that alarms Washington as Beijing and Hanoi grow closer.

The U.S. has also pressed Vietnam to address broader concerns, including market access and intellectual property protections. In recent months, Vietnam imposed anti-dumping duties on Chinese steel and ended tax waivers for low-value parcels to curb the influx of cheap Chinese goods—moves seen as aligning with U.S. demands. Additionally, Vietnam’s approval of Elon Musk’s Starlink satellite service, signaling Hanoi’s willingness to balance ties with both powers, has irked Beijing.

The Alarm in Washington’s Reaction

Xi’s visit has amplified U.S. fears that China is rallying Southeast Asian nations to counter American trade policies. Trump’s blunt remarks on Monday framed the China-Vietnam talks as a direct challenge, though he tempered his criticism by noting he didn’t fault either nation for pursuing their interests. A Trump administration official revealed that Trump and To Lam recently discussed reducing reciprocal tariffs, with plans for an in-person meeting soon, suggesting a pragmatic approach despite the rhetoric.

Trump’s comments echo broader anxieties in Washington about losing economic leverage in Asia. Vietnam’s role as a major exporter of electronics and apparel to the U.S. makes it a critical player, and any shift toward deeper integration with China could weaken America’s trade position. The Biden administration’s earlier efforts to strengthen ties with Vietnam, including upgrading diplomatic relations in 2023, have been overshadowed by Trump’s tariff-heavy strategy, which risks pushing Hanoi closer to Beijing.

Geopolitical Undercurrents

Beyond trade, Xi’s visit highlights China’s broader ambitions in Southeast Asia. His stops in Malaysia and Cambodia, countries hit hard by U.S. tariffs, aim to cement Beijing’s influence in a region wary of choosing sides. Cambodia, a close Chinese ally, and Malaysia, a key trade partner, offer Xi opportunities to promote initiatives like the Belt and Road, despite past concerns over debt and sovereignty.

However, tensions persist. Vietnam and China frequently clash over South China Sea boundaries, a sore point that economic cooperation has not fully resolved. Vietnam’s concessions to the U.S., including Starlink’s deployment, may strain ties with Beijing, even as Hanoi seeks Chinese investment and loans.

Some analysts believe that Vietnam’s leaders are walking a tightrope, leveraging Chinese capital to fuel growth while placating U.S. demands to safeguard its export-driven economy.