U.S. reportedly made tough demands on Vietnam in trade negotiations, including reducing dependence on Chinese industrial imports.

According to a report by Reuters citing two sources familiar with the matter, the U.S. presented a "long list of tough" demands during tariff negotiations with Vietnam, which could force Vietnam to reduce its dependence on Chinese industrial imports.

One of the sources said that Washington wants Vietnamese factories to reduce the use of materials and components from China and requires Vietnam to more strictly control its production and supply chains. The source did not specify whether the U.S. demands included quantitative targets. According to four sources familiar with the matter, this list was part of an "annex" to a framework text prepared by U.S. negotiators.

A person who has directly seen the document said that the list was delivered to Hanoi after the end of the second round of talks with the U.S. in late May, aiming to avoid a 46% "reciprocal" tariff on Vietnamese goods exported to the U.S. Reuters cited a draft letter to negotiating partners on Monday, stating that the Trump administration hoped countries would present their best proposals for trade negotiations by Wednesday.

It is unclear which countries will receive this letter, but it is aimed at those actively negotiating with the U.S., including discussions and document exchanges. Washington has been conducting such negotiations with Vietnam, the EU, Japan, and India, among others.

The sources said that the Trump administration's demands on Vietnam are "tough" and "difficult." It is unclear how Vietnam will respond to these demands and whether it will submit its proposal by Wednesday. The Office of the U.S. Trade Representative did not respond to requests for comment. The Ministry of Industry and Trade of Vietnam also did not respond to requests for comment.

A source familiar with the situation said that if the effective reduction in Vietnam's reliance on China proposed by the U.S. is met, it may pose a severe challenge to Vietnam's economy.

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. This may also complicate Hanoi's long-standing policy of maintaining good relations with Beijing. Chinese enterprises are important foreign investors in Vietnam.

Since the outbreak of the U.S.-China trade war in 2018, Vietnam's exports to the U.S. have nearly tripled. At that time, the Trump administration imposed broad tariffs on Chinese goods, forcing some manufacturers to shift production to countries like Vietnam.

However, according to data from both the U.S. and Vietnam, as exports to the U.S. boomed, Vietnam also significantly expanded its imports from China. For many years, Vietnam's imports from China have almost matched its exports to the U.S. in terms of volume and fluctuations.

U.S. officials have long accused Vietnam of being used as a transit point for Chinese goods to enter the U.S. It is alleged that sometimes goods are labeled as "Made in Vietnam," even though they have little or no added value in Vietnam, allowing Chinese exporters to circumvent high tariffs imposed on their goods by the U.S.

Aware of U.S. criticism, the Vietnamese government has launched actions to crack down on illegal transshipment of goods. However, the effectiveness of these actions has yet to be reflected in trade flows. The latest data shows that Vietnam's exports to the U.S. and imports from China both set new records in April.

Vietnamese authorities have repeatedly stated their willingness to reduce non-tariff barriers and import more U.S. goods, which aligns with the long-standing requirements of the Trump administration. In recent weeks, Vietnamese officials have reiterated plans to purchase U.S. aircraft and signed or committed to several non-binding agreements, including agreements to purchase U.S. agricultural products and energy. However, one source said that this may not be enough, as U.S. negotiators are seeking actual contracts.

Original article: https://www.toutiao.com/article/1833904792616992/

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