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Xi begins three-nation Southeast Asia trip in Hanoi
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Vietnam tightens controls on some China trade under US
pressure
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45 agreements signed, including on rail links, supply
chains
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Vietnam green-lights jets approved by China, government
says
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China's COMAC signs deal with Vietjet, document shows
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Trump says countries trying to figure out how to hurt US
(Adds Trump administration official comment, paragraph 15)
By Francesco Guarascio, Khanh Vu and Phuong Nguyen
HANOI, April 14 (Reuters) - China's President Xi Jinping
called on Monday for stronger ties with Vietnam on trade and
supply chains amid disruptions caused by U.S. tariffs, as he
attended the signing in Hanoi of dozens of cooperation
agreements between the two communist-run nations.
The visit, planned for weeks and part of a wider trip in
Southeast Asia, comes as Beijing faces 145% U.S. duties, while
Vietnam is negotiating a reduction of threatened U.S. tariffs of
46% that would otherwise apply in July after a global moratorium
expires.
"The two sides should strengthen cooperation in production
and supply chains," Xi said in an article in Nhandan, the
newspaper of Vietnam's Communist Party, posted ahead of his
arrival on Monday. He also urged more trade and stronger ties
with Hanoi on artificial intelligence and the green economy.
After he met Vietnam's top leader, To Lam, the two countries
signed dozens of cooperation agreements, including deals on
enhancing supply chains and on cooperation over railways,
footage of the documents reviewed by Reuters showed.
Chinese and Vietnamese state media later on Monday reported
that 45 agreements were signed.
The content of the agreements was not disclosed and it was
unclear whether they involved any financial or binding
commitments.
Under pressure from Washington, Vietnam is tightening
controls on some trade with China to make sure goods exported to
the United States with a "Made in Vietnam" label have sufficient
added value in the country to justify that.
"There are no winners in trade wars and tariff wars," Xi
said in his article, without mentioning the United States.
Later, in a meeting with Vietnam's Prime Minister Pham Minh
Chinh, Xi said the two countries should oppose unilateral
bullying, according to Chinese state media Xinhua.
One memorandum of understanding signed on Monday is to boost
cooperation between the China Council for the Promotion of
International Trade and the Vietnam Chamber of Commerce and
Industry, which issues certificates on the origins of goods.
Vietnam is a major industrial and assembly hub in Southeast
Asia. Most of its imports are from China while the United States
is its main export market. The country is a crucial source of
electronics, shoes and apparel for the United States.
In the first three months of this year, Hanoi imported goods
worth about $30 billion from Beijing while its exports to
Washington amounted to $31.4 billion, Vietnam's customs data
show, confirming a long-term trend in which imports from China
closely match the value and swings of exports to the U.S.
U.S. President Donald Trump said on Monday the two
countries' discussions were focused on how to harm the United
States, but that he did not blame them for holding such talks.
"I don't blame China; I don't blame Vietnam," Trump told
reporters at the White House. "That's a lovely meeting. Meeting
like, trying to figure out, 'how do we screw the United States
of America?'"
A Trump administration official said the Republican
president and Vietnam's Lam "earlier this month agreed to work
to reduce reciprocal tariffs and looked forward to an in-person
meeting in the near future."
RAIL LINKS, PLANES
After a two-day stop in Hanoi, Xi will continue his
Southeast Asian trip by visiting Malaysia and Cambodia from
Tuesday to Friday. He last visited Cambodia and Malaysia nine
and 12 years ago, respectively.
Xi's trip to Hanoi, his second in less than 18 months, aims
to consolidate relations with a neighbour that has received
billions of dollars of Chinese investments in recent years as
China-based manufacturers moved south to avoid tariffs imposed
by the first Trump administration.
Vietnam's Lam in an article published on Monday in Chinese
state media said Hanoi wanted to boost cooperation in defence,
security and infrastructure, especially on rail links.
Vietnam has agreed to use Chinese loans to build new
railways between the two countries, in a major
confidence-building step that would boost bilateral trade and
connections.
However, no credit agreement has yet been announced. Later
on Monday Lam encouraged China to offer concessional loans,
according to Vietnamese state media.
After prolonged pressure, Beijing obtained Vietnam's
approval for planes authorised by the Chinese aviation
regulator, which paves the way for the use of China-made COMAC
passenger jets in the Southeast Asian nation.
COMAC planes are operated by several Chinese companies but
have so far struggled to find foreign buyers or be approved
abroad.
On Sunday, Vietnam's budget airline Vietjet and
COMAC signed a memorandum of understanding in Hanoi, according
to an invitation to the event seen by Reuters.
The content of the agreement has not been announced yet, but
Reuters reported in past weeks that under a draft deal, Vietjet
would lease two COMAC C909 planes, operated by crew from Chengdu
Airlines, on two domestic routes.
Despite strong economic ties, tensions frequently surface
between the two countries over contested boundaries in the South
China Sea.
Vietnam's concessions to the U.S. to avoid tariffs may also
irritate Beijing, as they include the deployment of Elon Musk's
Starlink satellite communication service in the Southeast Asian
nation, in addition to the crackdown on some trade with China
over possible fraud on rules of origin.
Vietnam, in recent months, has also imposed anti-dumping
duties on several Chinese steel products and ended a tax waiver
for low-value parcels in a move that government officials
described as aimed at reducing the inflow of cheap Chinese
goods.
(Reporting by Francesco Guarascio, Khanh Vu and Phuong Nguyen,
Thinh Nguyen, Athit Perawongmetha in Hanoi, Liz Lee in Beijing,
Gram Slattery and Trevor Hunnicutt in Washington; Writing by
Francesco Guarascio; Editing by Himani Sarkar, Lincoln Feast,
Hugh Lawson and Rod Nickel)