The United States expects to elevate its diplomatic relations with former foe Vietnam to the top level as President Joe Biden travels to Hanoi in a week, in a move that may irk China and with unclear business implications.
Fearful of the potential reaction from its much larger neighbour, Vietnam had initially expressed caution about the upgrade. That led the Biden administration to multiply efforts to persuade the southeast Asian nation, including through multiple visits of high-ranking members of the U.S. government in recent months.
The unprecedented push has led Washington to expect to be elevated to the top tier of Vietnam’s diplomatic ranking, together with China and Russia, from two notches below now.
Can someone with real knowledge please explain why China has a problem with this?
Not sure if I can be helpful but lately there are several manufacturing sectors trying to reduce their footprint in China and move to Vietnam or India, for a mix of reasons (rising labor cost in China, geopolitical tension implying potential supply chain disruption). The US promoting their relations with Vietnam means there will be trade deals (free trade maybe?) which will incentivize manufacturers to move their production there, potentially away from China.
Thanks so much. I’ve been seeing “made in Vietnam” labels in clothing for over a decade. I’m glad to give Vietnam more business but sorry it will still be depressed wages and probably horrible working conditions, for decades. Will they too solve abject working condition suicides with suicide nets (rhetorical)?