Supply chains headline China-Vietnam talks as US vies for influence

China’s foreign minister calls for stronger trade and security ties during trip to Hanoi
The two countries should remain united in a world of chaos and change, Wang Yi says

China-Asean relations

Amber Wangin Beijing

Published: 9:00pm, 2 Dec 2023

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China’s top diplomat has been in Vietnam on a mission to boost supply chains as competition rises with the US for influence in the Southeast Asian country.

In Hanoi on Friday, Chinese Foreign Minister Wang Yi called on the two countries to increase high-level exchanges and improve security, economic and maritime ties.

“The two sides should … deepen cooperation in trade, connectivity, and key minerals, and jointly build a mutually beneficial, stable, and unimpeded production and supply chain system,” Wang said during the meeting of the Steering Committee for Bilateral Cooperation co-chaired by Vietnamese Deputy Prime Minister Tran Luu Quang.

Wang’s trip to Hanoi was expected to pave the way for Chinese President Xi Jinping’s visit to the country later this month, Bloomberg reported, citing anonymous sources.

If the trip goes ahead, it will be Xi’s first to Vietnam in six years and come hard on the heels of a visit by US President Joe Biden.

During Biden’s visit in September, ties between Washington and Hanoi were upgraded to put the United States on a diplomatic par with China. The US and Vietnam also agreed to improve hi-tech cooperation.

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At the meeting on Friday, Wang said the two sides had reached important consensus on upgrading bilateral relations, which would usher in a new stage of bilateral ties.

“Facing a world with changes and chaos, China and Vietnam should stay true to their original aspirations, remain united,” the Chinese foreign ministry quoted Wang as saying.

Vietnam is China’s biggest trading partner in the Association of Southeast Asian Nations. China registered US$2.92 billion in direct investment in Vietnam over the first nine months of the year, 94.9 per cent higher than in the first three quarters of last year, according to Vietnam’s Ministry of Planning and Investment.

In late November, Chinese Commerce Minister Wang Wentao told Vietnamese Prime Minister Pham Minh Chinh that the neighbours should cooperate on “interconnection”, while Pham advocated the promotion of railway links.

The two countries are considering a major upgrade of their underdeveloped rail links to improve a line that runs across Vietnam’s rare earths heartland to the country’s top port in the north, according to a report by Reuters.

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Despite the strong trade ties, the two countries are in dispute over parts of the South China Sea – differences that sometimes lead to maritime stand-offs.

In a separate meeting with his Vietnamese counterpart Bui Thanh Son, Wang said Hanoi and Beijing should work together at sea.

“China and Vietnam should actively promote mutually beneficial cooperation at sea, prevent the involvement of external forces, and accelerate consultations on the Code of Conduct in the South China Sea,” he said.

Officials from both sides agreed to increase Chinese investment in areas in Vietnam that used advanced technology and were environment friendly, Vietnamese online news service VnExpress reported.

It also reported that deputy prime minister Quang said the two countries should cooperate to improve goods clearance procedures at borders, and speed up the opening of Chinese markets for certain Vietnamese agriculture and aquaculture products.