CHINA & VIETNAM EMBRACE FREE TRADE – INKS 40 PLUS NEW DEALS

Written by Michael Thervil

China President Xi Jinping and Vietnam's National Assembly Chairman Tran Thanh Photo by Athit Perawongmetha, AFP

Say what you like, while the Trump Administration has been busy invoking tariffs on countries all over the world, China has been exercising a different approach and that is being in the business of business. Today China and Vietnam inked a new cooperation deal that includes over 40 areas of trade interest that ties the two countries closer than ever in terms of economic trade and development. One of the biggest takeaways was Vietnam not only borrowing but signing an economic trade deal that will result in the building of a railroad that would be a significant boost to trade and production lines, but it will greatly enhance the supply chains of both nations. This railroad would start at the Chinese border and end at a port in Vietnam so that items can be shipped more efficiently.

Chinese President Xi Jinping stated in regards to the actions of the trump administration: “There are no winners in trade wars and tariff wars protectionism leads nowhere” and it looks like President Xi Jinping is right. In the worldwide wave of tariffs imposed on countries by the Trump Administration, Vietnam was hit with a 46% tariff; China was slapped with a 145% tariff on their goods and products. Thanks to technology, the world has gotten smaller, and with the world getting smaller, opportunities for China in terms of trade and economic development have gotten bigger.

What’s surprising about this whole ordeal is the length that Chinese President Xi Jinping is willing to go in order to not only increase China’s export numbers and capabilities but he is willing to help in boosting the numbers and abilities of other Asian neighboring countries such as Thailand, Laos, and to some extent Burma as well. It should be known that President Xi Jinping will be visiting Cambodia and Malaysia as well in the next few days. We predicted that he will discuss similar business dealings, strengthen alliances, and seek ways to boost the growth and development of the economies and of both of their countries with the authorities of Cambodia as well. Over the course of the last 17 years, the trade cooperation between China and Vietnam has been increasing from $58 billion to $144 billion.

Exactly What the 40 plus areas of trade agreements between the two nations are is currently unknown and are highly speculative. But those who consider themselves students of geopolitics know that it will always encompass trade, products, productions, infrastructure, logistics and shipping, security, banking and finance, the sharing of technology, Artificial Intelligence, tourism, and other strategic partnerships that will be beneficial to both/all parties involved. The bilateral talks between China and Vietnam occurred today as both countries celebrate 75 years of geopolitical and diplomatic ties.