Vietnam uses US-China trade war to rebalance its economic and security relationships
- Hanoi is taking advantage of heightened rivalry between the two greater powers to make new friends in the region
As the rivalry between China and the US intensifies and uncertainty hangs on whether they can resolve their trade war beyond the current 90-day truce, it’s an uneasy time for Asian nations caught between the two powers. In this special investigative series the South China Morning Post explores how the China-US rivalry is affecting four countries in Asia. In part one, Keegan Elmer looks at Vietnam.
Heightened US-China rivalry is transforming Vietnam’s relationship with its big neighbour to the north, and allowing the Southeast Asian nation to diversify its economic and security relationships.
Vietnam relies on China for the steadfast support of a fellow communist government and, as its biggest trading partner, to propel its rapidly growing economy but there are signs it is rebalancing the relationship.
Public reaction to a plan to create three special economic zones in Vietnam brought tens of thousands on to the streets in June to protest what was widely seen as a direct Chinese presence on Vietnamese soil.
The Vietnamese authorities stressed that the zones – on a total of 1.3 million hectares, including one site just 100km from the northern border with China – would be open to all foreign investors.
But elements of the draft law, combined with years of disputes with China over investment projects and territorial claims, made some citizens feel the plan was just another way for China to strong-arm its neighbour.