President Xi Jinping attended the signing of dozens of cooperation agreements between China and Vietnam in Hanoi on Monday, at the start of a wider trip to Southeast Asia.
While the visit had been planned for some time, it now takes place in the aftermath of the latest US-China tariff escalation and is being seen as a way for China to underscore its worth as a trade partner, Reuters reports.
Last Friday saw the US up its cumulative import levies to 145 percent on most Chinese imports and China reciprocate with a rate of 125 percent on all US imports.
But that same night, the US exempted smartphones and laptops – among the highest value items that the US imports from China – from most duties in a stunning about turn. US leader Donald Trump has claimed the exemption will only be temporary, but the climbdown has heightened the erratic reputation of his administration.
In an article published in Vietnamese media ahead of his arrival in the country’s capital, President Xi wrote that there were “no winners in trade wars and tariff wars.”
Later, in a meeting with the Prime Minister Pham Minh Chinh of Vietnam, President Xi noted that the two countries should oppose unilateral bullying. Both comments were understood to refer to US protectionism.
[See more: ‘The Art of the Repeal.’ Trump backtracking prompts China to call for scrapping of all tariffs]
Vietnam is currently negotiating a reduction in its own 46 percent reciprocal tariff, imposed by the US in Trump’s so-called “Liberation Day” announcement earlier in the month. This rate, along with levies on almost 90 other US trade partners, has been put on pause for 90 days. China was the only exception to the moratorium.
China and Vietnam reportedly signed 45 agreements on Monday. Their content was not disclosed, however.
Wen-ti Sung, a non-resident fellow at the Atlantic Council, told CNN that Xi’s high-profile visit to Vietnam was about diversifying China’s economic footprint while pulling countries shaken by the US’ on-and-off-again tariffs closer to China.
“What Xi is trying to do now is to go there in person. Instead of fear and pressure, Xi is going to show them love, maybe some ‘souvenirs’ along the way,” he said, referring to possible new trade deals or upgrades in their strategic partnerships.
“All these are ways for China to show that ‘I’m on your side. It’s safe to hang out with China,’ especially if you’re concerned about the US.”
Xi is also scheduled to visit Malaysia and Cambodia this week.
