Netizen Journalist

Vietnam Tightens Trade with China to Reduce Trump's Tariff Pressure

Holiday Ayo - The Vietnamese government is committed to taking strict action against illegal practices involving goods from China sent to the United States (US) through its territory. 

This step was taken so that Vietnam could reduce the impact of the high tariffs imposed by US President Donald Trump.

 

It is known that on Wednesday (2/4), the US set a tariff of 46 percent for several goods from Vietnam.

 

However, this tariff has been postponed for 90 days since Wednesday (9/4) while the two countries negotiate.

 

In the negotiations, Vietnam hopes that Trump can reduce import tariffs to 22 to 28 percent. The "Made in Vietnam" Label Trick White House Trade Advisor Peter Navarro suspects illegal transhipment practices, where Chinese-made goods are sent to the US via Vietnam and labeled "Made in Vietnam" to avoid high tariffs.

 

Investigations show that some of these Chinese products only transit briefly at Vietnamese ports to obtain documents of origin, before being re-sent to the US, with lower taxes.

 

The issue has angered the US because it considers Vietnam to be allowing itself to be used as a "rat hole" by Chinese companies.

 

Vietnam Moves Quickly As soon as the tariffs were announced, the Vietnamese government immediately held an emergency meeting on Thursday (3/4).

 

"Vietnam will take strict action against trade fraud," the government wrote in its official statement, without specifying the form of action in question.

 

Vietnam has also taken steps to tighten exports of semiconductor products that can be used for both civilian and military purposes in China.

 

A draft of the new regulation seen by Reuters said major trading partners, including the US, are asking Hanoi to restrict the flow of strategic technology to third countries without the exporting country's permission.

 

The move is in line with Washington's policy of restricting China's access to advanced chips to maintain its dominance in artificial intelligence. 

 

Vietnam has even shown an open attitude to the US by giving the green light for Starlink, Elon Musk's satellite internet service, to operate in its country. 

 

Despite facing pressure from the US, Vietnam also does not want to damage relations with China.

 

According to Vietnam, China is one of its main sources of investment as well as a neighbor with whom it has a dispute over territorial boundaries in the South China Sea.

 

Next week, Chinese President Xi Jinping is scheduled to visit Vietnam, the Chinese Foreign Ministry said on Friday (11/4).

 

The visit was carried out to discuss trade cooperation between the two countries.

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