According to numerous sources familiar with the ongoing negotiations, the United States is pressuring Vietnam to limit the use of Chinese technology in electronics assembled for export to American markets.
These efforts are part of Washington's attempt to reshape global technology supply chains away from China, with Vietnam positioned as a key pivot point.
Behind the scenes, American trade officials have urged Vietnamese authorities to limit Chinese content in high-tech goods, such as smartphones, virtual reality headsets, and computing devices. These goods are manufactured in Vietnam for companies like Apple, Samsung, Meta, and Google, but often rely on components made in China.
Vietnam is being urged to 'reduce its dependence on Chinese high technology,' said one person informed about the discussions, adding that this is part of restructuring supply chains to lessen U.S. reliance on Chinese components.
Vietnam faces tariff threats and a complex transition.
The Trump administration has warned of high tariffs of up to 46% on Vietnamese exports if the country does not meet new expectations. The deadline of July 8 looms over discussions, adding urgency to negotiations that involve both trade and national security.
Vietnamese firms have expressed a willingness to adapt but warn that such a shift will require time and capital. For now, China remains the dominant supplier of components vital for this Southeast Asian country's tech assembly.
Last year, Vietnam imported electronics and parts from China worth about $44 billion. In turn, it exported tech goods to the United States worth $33 billion.
The U.S. is also pressuring the country to ban goods made in China and falsely labeled as 'Made in Vietnam' to circumvent tariffs, which Washington claims undermines its trade policy.
Taiwan bans technology exports to Chinese AI giants.
Vietnam is not the only Asian manufacturing hub under pressure to reduce reliance on Chinese technology.
Recently, Taiwan imposed a comprehensive export ban targeting Chinese artificial intelligence and semiconductor companies, halting the supply of critical chip manufacturing technologies to Huawei Technologies Co. and Semiconductor Manufacturing International Corp. (SMIC). The decision was announced by Taiwan's International Trade Administration and is part of new domestic laws that align with U.S. export control efforts.
The new restrictions specifically prohibit Taiwanese companies from exporting chip manufacturing tools, production equipment, and essential materials to Huawei, SMIC, and several of their subsidiaries. Now any such export requires government approval. This move followed a statement from Taiwan's President Lai Ching-te that China is a 'foreign hostile force.' Lai's administration has focused on countering Beijing's influence operations, and these tech restrictions serve as a clear economic signal of resistance.
Without Taiwanese components and tools, Huawei and SMIC may struggle to maintain momentum in developing advanced chips. This could hinder their efforts to reach the level of global chip leaders like Nvidia in the near term, but the impact seems likely to be noticeable for now.
As negotiations remain ongoing, all eyes are now on a potential diplomatic breakthrough. The head of the Communist Party of Vietnam, To Lam, is expected to meet with U.S. President Donald Trump in Washington at the end of this month. While the official date has yet to be confirmed, officials familiar with the matter say that trade, technology, and tariffs will dominate the agenda.
If you can't handle the heavy flow of news regarding cryptocurrencies and the financial world, then perhaps you shouldn't be subscribed to this group (!) ... 😉🙄
