- President Xi Jinping’s visit to Vietnam, his first in six years, holds diplomatic weight. The two-day visit resulted in the signing of over 30 agreements, covering areas such as security, railways, and infrastructure.
- Xi’s visit follows Vietnam’s recent upgrade in ties with the US, as well as its security deals with Japan. As the US-China rivalry intensifies, Vietnam’s „Bamboo Diplomacy“ – independent roots, flexible branches – is put to the test.
- Vietnam has emerged as one of the biggest winners from US-China trade tensions, with businesses redirecting billions of dollars from China to Vietnam. Now it is a crucial link in the global supply chain connecting intermediate components from China with the end consumers from the US.
- This strategic positioning is evident in the evolving trade relations between the three nations. Over the past five years, China’s exports to Vietnam have increased by 75 percent, while Vietnam’s exports to the US have more than doubled over the same period.
- Despite China’s economic influence, public trust and influence in Vietnam do not mirror economic ties. The 2023 State of Southeast Asia survey shows that the public opinion in Vietnam has shifted further towards alignment with the US than with China in the past year. While economic relations flourish, there exists a nuanced dynamic in which public sentiment differs from economic partnerships.
Sinolytics is a European research-based consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.