Miscellaneous News

[tokenanalyst]

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US pushes Vietnam to decouple from Chinese tech, sources say​

HANOI, June 16 (Reuters) - The United States is pushing Vietnam in tariff talks to reduce the use of Chinese tech in devices that are assembled in the country before being exported to America, three people briefed on the matter said.

Vietnam is home to large manufacturing operations of tech firms such as Apple, opens new tab and Samsung (005930.KS), opens new tab, which often rely on components made in China. Meta (META.O), opens new tab and Google (GOOGL.O), opens new tab also have contractors in Vietnam that produce goods such as virtual reality headsets and smartphones.

The Southeast Asian nation has been organising meetings with local businesses to boost the supply of Vietnamese parts, with firms showing willingness to cooperate but also warning they would need time and technology to do so, according to one person with knowledge of the discussions.

The Trump administration has threatened Vietnam with crippling tariffs of 46% which could significantly limit access for Vietnam-made goods to their main market and upend the Communist-run country's export-oriented growth model.

Vietnam has been asked "to reduce its dependency on Chinese high-tech," said one person familiar with the discussions. "That is part of the restructuring of supply chains and would in turn reduce U.S. dependency on Chinese components," the person added.

The ultimate objective is to speed up U.S. decoupling from Chinese high-tech while increasing Vietnam's industrial capacity, a second person said, citing virtual reality devices as an example of Vietnam-assembled products that are too dependent on Chinese technology.

All sources declined to be identified as the discussions were confidential. Reuters was not able to learn if the U.S. has proposed numerical targets such as caps on Chinese content for "Made in Vietnam" goods or different tariff rates based on the amount of Chinese content.

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

As the U.S.-imposed deadline of July 8 nears before the tariffs take effect, the timing and scope of a possible deal remain unclear.

All sources stressed that while the U.S. has made broader requests for Vietnam to reduce its reliance on China, tackling the issue of Chinese high-tech content in exports was a key priority.

Last year, China exported around $44 billion of tech such as electronics components, computers and phones to Vietnam, about 30% of its total exports to the country. Vietnam shipped $33 billion of tech goods to the United States or 28% of the U.S.-bound exports. Both flows are on the rise this year, according to Vietnam's customs data.

Vietnam's trade ministry did not reply to Reuters requests for comment. Separate sources have previously said that U.S. demands were seen as "tough" and "difficult" by Vietnamese negotiators.

The U.S. also wants Vietnam to crack down on the practice of shipping Chinese goods to America with misleading "Made in Vietnam" labels that draw lower duties - which Vietnam is also trying to heed.

The ministry said on Sunday that a third round of talks last week in Washington ended with progress, but critical issues remain unresolved.

Vietnam's ruling Communist Party chief To Lam intends to meet U.S. President Donald Trump in the United States, possibly in late June, officials with knowledge of the matter said. No date has been announced for the trip.

The White House and Vietnam's foreign ministry did not respond to requests for comment on the possible visit.

NOT TOO FAST

Local firms attending meetings organised by the trade ministry in recent weeks expressed a general willingness to adapt, but many warned that instant changes "would destroy business", according to one of the sources.

Vietnam has been slowly developing an industrial ecosystem with local suppliers but it has a long way to go before it can match China's advanced supply chains and cheaper pricing, industry executives say.

"Vietnam is about 15–20 years behind China in somewhat fully replicating its supply chain scale and sophistication, but it's catching up fast, especially in key sectors like textiles and electronics," said Carlo Chiandone, a Vietnam-based supply chain expert.
Abrupt changes to existing practices may hurt Vietnam's delicate relationship with China, which is both a major investor in its Southeast Asian neighbour and a source of security concerns.

The economic dependency that the Vietnamese have with the US market is extremely dangerous. Is basically a time bomb with Trump in power.

 

[iewgnem]

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US pushes Vietnam to decouple from Chinese tech, sources say​

HANOI, June 16 (Reuters) - The United States is pushing Vietnam in tariff talks to reduce the use of Chinese tech in devices that are assembled in the country before being exported to America, three people briefed on the matter said.

Vietnam is home to large manufacturing operations of tech firms such as Apple, opens new tab and Samsung (005930.KS), opens new tab, which often rely on components made in China. Meta (META.O), opens new tab and Google (GOOGL.O), opens new tab also have contractors in Vietnam that produce goods such as virtual reality headsets and smartphones.

The Southeast Asian nation has been organising meetings with local businesses to boost the supply of Vietnamese parts, with firms showing willingness to cooperate but also warning they would need time and technology to do so, according to one person with knowledge of the discussions.

The Trump administration has threatened Vietnam with crippling tariffs of 46% which could significantly limit access for Vietnam-made goods to their main market and upend the Communist-run country's export-oriented growth model.

Vietnam has been asked "to reduce its dependency on Chinese high-tech," said one person familiar with the discussions. "That is part of the restructuring of supply chains and would in turn reduce U.S. dependency on Chinese components," the person added.

The ultimate objective is to speed up U.S. decoupling from Chinese high-tech while increasing Vietnam's industrial capacity, a second person said, citing virtual reality devices as an example of Vietnam-assembled products that are too dependent on Chinese technology.

All sources declined to be identified as the discussions were confidential. Reuters was not able to learn if the U.S. has proposed numerical targets such as caps on Chinese content for "Made in Vietnam" goods or different tariff rates based on the amount of Chinese content.

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

As the U.S.-imposed deadline of July 8 nears before the tariffs take effect, the timing and scope of a possible deal remain unclear.

All sources stressed that while the U.S. has made broader requests for Vietnam to reduce its reliance on China, tackling the issue of Chinese high-tech content in exports was a key priority.

Last year, China exported around $44 billion of tech such as electronics components, computers and phones to Vietnam, about 30% of its total exports to the country. Vietnam shipped $33 billion of tech goods to the United States or 28% of the U.S.-bound exports. Both flows are on the rise this year, according to Vietnam's customs data.

Vietnam's trade ministry did not reply to Reuters requests for comment. Separate sources have previously said that U.S. demands were seen as "tough" and "difficult" by Vietnamese negotiators.

The U.S. also wants Vietnam to crack down on the practice of shipping Chinese goods to America with misleading "Made in Vietnam" labels that draw lower duties - which Vietnam is also trying to heed.

The ministry said on Sunday that a third round of talks last week in Washington ended with progress, but critical issues remain unresolved.

Vietnam's ruling Communist Party chief To Lam intends to meet U.S. President Donald Trump in the United States, possibly in late June, officials with knowledge of the matter said. No date has been announced for the trip.

The White House and Vietnam's foreign ministry did not respond to requests for comment on the possible visit.

NOT TOO FAST

Local firms attending meetings organised by the trade ministry in recent weeks expressed a general willingness to adapt, but many warned that instant changes "would destroy business", according to one of the sources.

Vietnam has been slowly developing an industrial ecosystem with local suppliers but it has a long way to go before it can match China's advanced supply chains and cheaper pricing, industry executives say.

"Vietnam is about 15–20 years behind China in somewhat fully replicating its supply chain scale and sophistication, but it's catching up fast, especially in key sectors like textiles and electronics," said Carlo Chiandone, a Vietnam-based supply chain expert.
Abrupt changes to existing practices may hurt Vietnam's delicate relationship with China, which is both a major investor in its Southeast Asian neighbour and a source of security concerns.

"Vietnam is about 15–20 years behind China in somewhat fully replicating its supply chain scale and sophistication, but it's catching up fast, especially in key sectors like textiles and electronics," said Carlo Chiandone, a Vietnam-based supply chain expert

Vietnam has 100 million people, the province of Guangdong has 126 million people, Vietnam's 2024 GDP was $476B, Shenzhen's 2023 GDP was $489B, lol
In 15-20 years they might be able match Guangdong if they fully integrated into China's supply chain, and assume Guangdong stops developing.

If Americans think being one of many customer give them leverage, imagine how much leverage their sole source supplier has.
China can probably pressure Vietnam into banning all American tech TBH.

 

[iewgnem]

The economic dependency that the Vietnamese have with the US market is extremely dangerous. Is basically a time bomb with Trump in power.

Vietnam's economic dependency with the US is trivial compared to their dependency with China. Without US Vietnam lose 30% of exports, without China Vietnam loses all exports and most of their domestic economy.

 

[iewgnem]

View attachment 154691
15 year old photo, when she was in her 20s. Now she's 40+.
That's FBI for you.

Reminds me of Mullah Omar. They had just one picture of him from the 80s or 90s. And did not know he died of natural causes until years later.

I mean, America is the country that invented WWE, a "sport" entirely based on choreographed fake show of strength

 

[siegecrossbow]

Ursula von der Leyen to Trump: China is the problem we should focus, so please reduce tariffs against EU.

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This is no longer cucking… this is sitting in a chair watching your daughter doing the Bonnie Blue challenge type of depravity.

As I’ve pointed out before China does not need to win Europe/Global South over as allies to win geopolitically — all it needs to do is for them to act in accordance to their respective nation’s interests. Was that too hard to do? Turns out it actually is when the U.S. deep state has blackmail video/audio of your ruling elites…

 

[iewgnem]

This is no longer cucking… this is sitting in a chair watching your daughter doing the Bonnie Blue challenge type of depravity.

As I’ve pointed out before China does not need to win Europe/Global South over as allies to win geopolitically — all it needs to do is for them to act in accordance to their respective nation’s interests. Was that too hard to do? Turns out it actually is when the U.S. deep state has blackmail video/audio of your ruling elites…

Ursula is an American citizen appointed by America to act as Viceroy of Europe, I wouldn't consider what she says to represent Europe.

 

[siegecrossbow]

Ursula is an American citizen appointed by America to act as Viceroy of Europe, I wouldn't consider what she says to represent Europe.

But they do wield tremendous influence. Have they acted out of line even once? Nordstream sabotage says hello.

 

[neutralobserver]

This is no longer cucking… this is sitting in a chair watching your daughter doing the Bonnie Blue challenge type of depravity.

As I’ve pointed out before China does not need to win Europe/Global South over as allies to win geopolitically — all it needs to do is for them to act in accordance to their respective nation’s interests. Was that too hard to do? Turns out it actually is when the U.S. deep state has blackmail video/audio of your ruling elites…

I believe the issue runs deeper than it appears. When I talk to my European and American colleagues, many of them hold strong anti-China views (sometimes borderline racist..). These are highly educated people. Some of the things they say are outright absurd. For example, one of my American colleagues recently claimed that China was trying to smuggle viruses into the U.S. (referring to the researcher case).

In my opinion, for Europeans, it’s more about privilege. They truly seem to believe that if the U.S. loses its global dominance, Europeans will no longer enjoy the same level of control and privilege they have today. Of course, this is just my personal observation/opinion, but I truly think that deep down, many Americans and Europeans want their dominance over the world to last forever and Europeans believe that America has to be the sole superpower for this objective.

 

[tokenanalyst]

Vietnam's economic dependency with the US is trivial compared to their dependency with China. Without US Vietnam lose 30% of exports, without China Vietnam loses all exports and most of their domestic economy.

either way, they should start diversifying away from the US. Maybe finishing their products in other countries to distribute the risk of taffis across Asia.

 

[iewgnem]

But they do wield tremendous influence. Have they acted out of line even once? Nordstream sabotage says hello.

Obviously, she wouldn't be a viceroy if she didn't, but there's a big difference between Europe being forced to do something and Europe wanting to do something, because US isn't the only one who can force Europe to do/not do something and it's always easier to force someone to do something they already want to do.