13-12-2023 (HANOI) Chinese and Vietnamese leaders have hailed their decision to strengthen ties and establish a “strategic” community with a “shared future” as Chinese President Xi Jinping’s visit to Vietnam concluded. The two nations, which have had disagreements over the South China Sea despite close economic relations, signed numerous cooperation agreements during the visit, following months of discussions on how to best describe their relationship.
During a meeting with the chairman of Vietnam’s parliament, Xi announced the establishment of a strategic China-Vietnam community of “shared future” to enhance bilateral relations. Prime Minister Pham Minh Chinh described this decision as a “historically important milestone” and emphasized that being part of a community with a shared future was a strategic choice.
The phrase “shared future” used in Chinese carries the connotation of “destiny,” but it is translated more literally as “future” in Vietnamese and English. While the pacts represent a diplomatic achievement for Vietnam as China and the US compete for influence in the region, experts and diplomats believe that the improvement in relations may have more symbolic value than actual substance.
Xi has actively pursued the enhancement of ties, particularly after Vietnam elevated the US to the same diplomatic ranking as China in September. His visit to Vietnam, his fourth overseas trip this year following visits to Russia, South Africa, and the US, underscores the significance he attaches to the country, which is home to a growing number of Chinese manufacturers.
The cooperation agreements encompass potential investments in rail links, security, telecoms, and digital data cooperation, according to a list from Vietnamese authorities. While the details of the deals have not been made public, experts and diplomats suggest that the digital economy pacts could facilitate Chinese support for building a 5G network in Vietnam and investments in undersea infrastructure.
These agreements align with the interests of both nations. China recently constructed an undersea data center off its southern island of Hainan, while Vietnam aims to develop its infrastructure. Hung Nguyen, a supply chain specialist at RMIT University Vietnam, highlights telecoms infrastructure, satellite ground tracking stations, and data centers as potential areas for investment.
However, some notable items were absent from the long list of signed deals. For instance, no agreement was announced concerning rare earths, despite Xi urging broader cooperation on critical minerals in an opinion piece published in a Vietnamese state newspaper. Vietnam is estimated to possess the world’s second-largest rare earth deposits after China, with its largest mines situated in an area that could benefit from the rail network improvements facilitated by this week’s agreements.
China dominates the supply of rare earth minerals, which are crucial for electric vehicles and wind turbines, and typically retains its technology closely. Vietnam has strict regulations on the export of rare earth ores and aims to process them domestically, but often lacks the necessary technology to do so.
