A new era in regional dynamics: a quick review over China-Vietnam cooperation and its ASEAN implications
A China-Vietnam community with a shared future, South China Sea, Guangxi inspection, digital infrastructure, agricultural sector etc.
Hello! If you've been following Chinese social media in the past weekend, you wouldn't have missed the news about China's top livestreaming e-commerce star, Dong Yuhui, and the company he works for, New Oriental's e-commerce unit, East Buy.
Recently, this internet celebrity found himself in a whirlwind of public opinion due to a controversy regarding the priority of his personal brand image and the company's development path. The issue has now reached a temporary resolution, and it seems Dong Yuhui will continue his live-streaming sales with East Buy.
In the era of personal social media, the relationship between companies and the internet celebrities they nurture is something that Chinese internet enterprises need to study further. If readers are interested, I will try to find time in the future to provide more details on this matter.
Today's newsletter will focus on several points of interest from Chinese President Xi Jinping's visit to Vietnam and his inspection of the Guangxi Zhuang Autonomous Region. While I'm not sure if this is the President's last visit and inspection for the year, it could be one of the last few newsletters you'll read before the Christmas holidays. I also want to take this opportunity to wish you all a happy holiday season.
1. A China-Vietnam community with a shared future
China and Vietnam have announced the new positioning of relations between the two parties and countries and agreed to build a China-Vietnam community with a shared future that carries strategic significance on the basis of deepening the comprehensive strategic cooperative partnership between the two sides.
The announcement was made during the ongoing state visit to Vietnam by Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee and Chinese president.
Pan Jine, a researcher at the Chinese Academy of Social Sciences, said in an exclusive interview with China Newsweek that it has been 15 years since China and Vietnam established a "comprehensive strategic partnership." It is a logical progression for China and Vietnam to now elevate their bilateral relationship to "a China-Vietnam community with a shared future that carries strategic significance." This is based on the special relationship and historical pattern of the two countries and also meets the demands of the era. She also noted that the new positioning has rich connotations and involves substantive cooperation.
During Xi Jinping's visit, the two sides signed more than 30 cooperation agreements, covering various aspects such as the Belt & Road Initiative, development cooperation, digital economy, green development, transportation, inspection and quarantine, defense and law enforcement security cooperation, and maritime cooperation. These agreements have expanded the breadth and depth of China-Vietnam relations.
2. South China Sea
The two sides engage in sincere and straightforward in-depth discussions on sea-related issues, and stress the need to better manage and actively address differences at sea, and maintain peace and stability in the East Sea and the region.
(1) The two sides agree to continue to adhere to important common perceptions between senior leaders of the two Parties and two states, persistently pursue friendly negotiations, strengthen the negotiation mechanism at the governmental level on Vietnam-China border and affiliated working groups; actively seek basic and long-term solutions acceptable by both sides, in accordance with the “Vietnam-China agreement on basic principles guiding the settlement of sea-related issues”, and international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS 1982).
(2) The two sides reach consensus on actively speeding up discussions on cooperation for joint development at sea, and on maritime boundary delimitation outside the mouth of the Gulf of Tonkin; towards reaching substantive progress in these two works. The two sides will continue to actively cooperate in less sensitive fields at sea. Intensifying collaboration in fishery law enforcement, and in aquaculture and protection of creature resources in the East Sea. Intensifying cooperation in search and rescue missions at sea.
(3) The two sides agree to continue to comprehensively and effectively implement the “Declaration of the Conduct of Parties in the East Sea” (DOC) on the basis of consultations and consensus, work to early reach a substantive and efficient “Code of Conduct in the East Sea” (COC) in accordance with international law, including the UNCLOS 1982. Implementing the mechanisms of senior official meetings (SOM) and the ASEAN-China Joint Working Group meetings on the implementation of the “Declaration of the Conduct of Parties in the East Sea” (DOC); well controlling differences at sea, avoiding acts that complicate the situation and expand disputes, and jointly maintaining stability at sea.
(4) The two sides agree to jointly mark 25 years of land boundary delimitation and 15 years of the signing of three legal documents on Vietnam-China land border in 2024.
As countries that both have disputes with China in the South China Sea, Vietnam's approach is more pragmatic compared to the Philippines. This difference in style can be partially attributed to the special relationship and similarities between Vietnam and China.
Robert Wu, in his newsletter Lost in Translation, mentioned some points that could be enlightening for those not familiar with the relationship between the two countries:
Despite the many disputes and differences, China and Vietnam actually looks very similar. It is not just because both countries are ruled by a communist party. Both countries shared 3 main pillars of their respective societies: a socialist system, with a market economy, and East Asian confucian ethics. Actually in this regard, for both of them, there is no other country in the world that looks quite like each other (For example, even North Korea only shares 2 of the 3 attributes)....
3. China, Vietnam and ASEAN
According to China's General Administration of Customs, goods trade between China and ASEAN reached 5.80 trillion yuan (about 826 billion U.S. dollars) from January to November, accounting for 15.3 percent of China's total trade volume in the period, with ASEAN remaining China's biggest trade partner.
The joint statement also mentioned ASEAN, which many geopolitical analysts believe will play a crucial role in the regional power struggle between China and the United States in the near future. The Chinese leader's solo visit to Vietnam, coinciding with the conclusion of China's important year-end economic work conference, highlights the significance that China attaches to Vietnam.
Both sides support ASEAN to maintain its centrality in the unceasingly evolving and changing architecture of the Asia-Pacific region. China supports ASEAN to build the ASEAN Community of solidary, unity, self-resilience and development; accelerates the construction of the version 3.0 ASEAN - China free trade area, deepen the ASEAN - China comprehensive strategic partnership.
In the interview with China Newsweek, Pan Jine points out:
Peripheral diplomacy has always been a priority in China's foreign policy. We have always placed great importance on ASEAN. Over the past 30 years, the relationship between China and ASEAN has continuously achieved new results. Since 2020, China and ASEAN have been each other's largest trading partners for three consecutive years.
Vietnam, as an important member of ASEAN, is a key focus for us. By elevating the China-Vietnam relationship, we aim to demonstrate China's emphasis on ASEAN and to instill confidence in the bloc. This will also inject new momentum into the cooperation between China and ASEAN.
This year also marks the 10th anniversary of Xi Jinping's proposal of the peripheral diplomacy concept of "amity, sincerity, mutual benefit, and inclusiveness." The enhancement of the China-Vietnam relationship once again demonstrates this diplomatic concept to the region and the world.
4. Guangxi inspection, ASEAN, digital infrastructure
On his way back to China, Xi inspected south China's Guangxi Zhuang Autonomous Region, which borders Vietnam. On the morning of Dec. 14, he visited the China-ASEAN Information Harbor Co., Ltd. and the Panlong community in Liangqing District, and conducted a field study concerning economic and trade cooperation between China and ASEAN, the development and application of informatization, the improvement of urban community governance system and strengthening ethnic unity.
According to piece published by China News Service on Saturday, the China-ASEAN Information Harbor Co., Ltd., a platform-type information technology company established with the approval of the State Council of China, has been actively promoting the construction of digital infrastructure aimed at ASEAN. The company's Chairman and President, Lu Dongliang, recently revealed in an interview that China-ASEAN Information Harbor Co., Ltd. has completed three international submarine optical cables and twelve international land optical cables around ASEAN, including a transboundary optical cable that passes through the Indochina Peninsula to the Ngwe Saung Cable Landing Station in Myanmar.
Additionally, China-ASEAN Information Harbor Co., Ltd. has built and operates the Lancang-Mekong Cloud Computing Innovation Center in Laos, Cambodia, and Myanmar. The company has developed several digital platforms, including the China (Guangxi) International Trade Single Window and the China-ASEAN Cross-Border Credit Reporting Service Platform. These initiatives aim to enhance the level of trade facilitation between China and ASEAN.
I wouldn't be surprised if someone said that the Guangxi inspection and the visit to Vietnam were meticulously planned together.
Xi urges Guangxi to emancipate mind, innovate, promote ocean-oriented economy -- Xinhua
Xi called on Guangxi to actively serve the building of a China-ASEAN community with a shared future, expand in-depth cooperation with ASEAN members in sectors such as commerce, labor, industry, science and technology and education, create a hub where both domestic and international markets can operate conveniently, and deeply integrate itself into the development of the Belt and Road Initiative.
5. More on China-Vietnam cooperation
I invited Jiang Shengxiong, who were assigned to Vietnam by Xinhua for reporting work from 2020 to 2022, to share some of his observations on China-Vietnam cooperation:
Goods trade between China and Vietnam over the 11 months stood at 1.45 trillion yuan, accounting for 25 percent of the trade volume between China and ASEAN, making Vietnam China's largest trade partner within ASEAN.
The agricultural sector stood out as China's trade expenditure for Vietnamese agricultural products saw a 20.3-percent year-on-year increase in trade, with the three products that newly gained market access to China - fresh durians, fresh sweet potatoes and edible bird's nests - being the highlights.
The ever-strengthening China-Vietnam ties in various areas such as infrastructure have favored the transportation for such products. For instance, with the support and sound service from customs, it would only take a batch of Vietnamese sweet potatoes two hours to be granted entry permission and cross the border.
As a former correspondent in Hanoi, Jiang Shengxiong is happy to see such products gain more access to the Chinese market. Usually with fair quality and distinctive aroma, the products - which may also include various tropical fruits and are common in the Chinese market - are likely to become instant favorites among Chinese consumers, whose demand for more diversified and authentic products has been ever-growing.
While intermediate goods continue to hold a predominant position in the bigger picture of China-Vietnam and China-ASEAN trade, he believes it will be down to agricultural products that draw closer the hearts of the people of China and the ASEAN countries, and consolidate the popular foundation of China-ASEAN ties.
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FYI - 5.80 trillion yuan does not equate to 82.55 billion U.S. dollars. It is out by one decimal point.