China and Vietnam Strengthen Ties with Focus on Trade and Infrastructure

China and Vietnam have taken a significant step towards strengthening their strategic partnership by signing 14 agreements covering a wide range of areas, from cross-border railways to crocodile exports. The move comes after Chinese President Xi Jinping met with Vietnam’s new leader To Lam in Beijing on Monday.

Lam’s visit to Beijing, his first overseas trip since assuming his role as party chief earlier this month, underscores the growing importance of the bilateral relationship. Both leaders emphasized the desire for stronger ties, particularly in the context of increasing trade and investment between the two countries.

Xi Jinping highlighted China’s commitment to supporting Vietnam’s development, emphasizing its importance in China’s neighbourhood diplomacy. Lam, in turn, described the relationship with China as a “top priority” in Vietnam’s foreign policy.

One of the most significant agreements focuses on the upgrade of cross-border rail links. This follows initial agreements made during Xi’s state visit to Hanoi in December. The plans include three key projects: one connecting Lao Cai in Vietnam’s northwest to the port city of Haiphong, and another potentially linking China’s Shenzhen to Haiphong.

Upgrading the railway infrastructure is crucial for boosting trade and investment between the two countries. The move is particularly relevant given the increasing number of Chinese manufacturers relocating export-oriented operations to Vietnam amidst trade tensions with the United States.

Beyond railway upgrades, the agreements covered cooperation in various fields, including central banking, media, health, and quarantine and inspection of agricultural products like coconuts, crocodiles, and durians.

The two leaders also discussed important issues of common concern, and China and Vietnam will issue a joint declaration on further strengthening their strategic partnership.

Lam’s visit to China, which included meetings with Chinese Premier Li Qiang and other top officials, further emphasizes the strong commitment to deepening the bilateral relationship. This visit also included a symbolic gesture of visiting locations in China where former President Ho Chi Minh conducted revolutionary activities.

The historic ties between China and Vietnam date back to 1950, and the establishment of a comprehensive strategic partnership in 2008 has been further solidified in recent years, encompassing a wider range of international and regional concerns.

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