[By Guancha Observer Network, Liu Chenghui] In the openly stated plan of the US government to promote the "de-Chinese" supply chain, Vietnam and other countries are hit first.

Reuters reported on June 16 that three sources disclosed that the US pressured Vietnam in tariff negotiations, requiring it to reduce the use of Chinese technology in devices exported to the US. Although some Vietnamese enterprises claimed they were willing to cooperate, they expressed concerns that proceeding too quickly would ruin their businesses.

The report noted that Vietnam is a major manufacturing base for tech companies like Apple and Samsung, which usually rely on components produced in China. Meta and Google also have contractors in Vietnam, producing products such as virtual reality headsets and smartphones.

A person familiar with the discussions said that Vietnam has been engaging with local enterprises to increase the supply of domestic components. While some enterprises showed willingness to cooperate, they warned that they needed time and technical support to achieve this goal.

A source familiar with the negotiations said that the US had requested Vietnam to "reduce reliance on high-tech from China." The source added that "this is part of the supply chain restructuring and will also indirectly reduce America's dependence on Chinese components."

Vinh Phat, a factory of the Vietnamese car manufacturer VinFast. Visual China

Another source said that the ultimate goal of this move is to accelerate the decoupling of American and Chinese high-tech industries while enhancing Vietnam's industrial capabilities. Taking virtual reality equipment assembled in Vietnam as an example, these products currently rely too much on Chinese technology.

Reuters has not learned whether the US has proposed specific numerical targets, such as limiting the Chinese content in "Made in Vietnam" goods or setting different tariff rates based on the proportion of Chinese components.

Apple, Samsung, Meta, and Google did not respond to Reuters' requests for comment.

As the July 8 deadline set by the Trump administration for the new tariffs approaches, the timeline and scope of the US-Vietnam tariff agreement remain unclear.

Sources emphasized that although the US made broader demands for Vietnam to reduce its dependence on China, controlling the high-tech content of export products remains the top priority.

According to Vietnam Customs data, last year China exported $44 billion worth of technology products, such as electronic components, computers, and mobile phones, to Vietnam, accounting for 30% of China's total exports to Vietnam. Meanwhile, Vietnam exported $33 billion worth of technology products to the US, accounting for 28% of its total exports to the US. Both figures are showing an upward trend this year.

The Ministry of Industry and Trade of Vietnam did not respond to Reuters' request for comment but said on the 15th that the third round of trade negotiations between the US and Vietnam had concluded last week in Washington with certain progress, though key issues remained unresolved.

The report noted that China is an important investment source for Vietnam; sudden adjustments to existing practices might impact Sino-Vietnamese relations.

Officials who are informed said that General Secretary of the Communist Party of Vietnam Nguyen Phu Trong plans to visit the US around the end of June to meet with President Trump, but no specific date has been announced yet.

The White House and the Vietnamese Foreign Ministry have not responded to requests for comments regarding this visit.

A source said that local enterprises attending meetings organized by the Ministry of Industry and Trade recently expressed willingness to adapt but most warned that immediate changes would "destroy their businesses."

Industry executives said that although Vietnam has been gradually developing its domestic industrial ecosystem in recent years, it still lags far behind China in terms of scale and complexity of the supply chain.

Carlo Chiandone, a supply chain expert based in Vietnam, said that Vietnam lags approximately 15 to 20 years behind in replicating the scale and maturity of China's supply chain but is catching up rapidly, especially in key areas such as textiles and electronics.

Reuters reported on June 3rd that Vietnam, which was previously receiving a "long list of tough" demands from the US during active negotiations, could not avoid mentioning China.

It was reported that the US might force Vietnam to reduce its dependence on industrial imports from China. A person familiar with the talks said that Washington hoped that factories in Vietnam would reduce the use of materials and components from China and required Vietnam to more cautiously control its production and supply chains. This person did not elaborate on whether the US requirements included quantitative targets.

Sources said that the US demands on Vietnam were "tough" and "difficult."

A source familiar with the matter said that if the effective reduction in Vietnam's dependence on industrial imports from China required by the US were met, it would pose a severe challenge to the Southeast Asian country's economy.

The report pointed out that Vietnam's manufacturing production includes consumer goods such as Apple devices and Nike shoes and is closely integrated with China's much larger supply chain.

In response to the US tactic of coercing other countries to limit economic and trade cooperation with China through tariffs, a spokesperson for the Chinese Ministry of Commerce emphasized that appeasement does not bring peace, and compromise does not earn respect. Sacrificing others' interests for temporary private gain is akin to seeking a tiger's skin, ultimately resulting in losses for both sides—harmful to oneself and others.

The spokesperson particularly pointed out that China firmly opposes any transaction that sacrifices China's interests. If such a situation arises, China will absolutely not accept it and will resolutely take reciprocal countermeasures. China is determined and capable of safeguarding its own rights and interests.

This article is an exclusive piece by the Observer Network and cannot be reprinted without permission.

Original: https://www.toutiao.com/article/7516830739426443839/

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