US-Vietnam Tariff Talks Seek Reduced Chinese Tech Reliance
US-Vietnam Tariff Talks Seek Reduced Chinese Tech Reliance

US-Vietnam Tariff Talks Seek Reduced Chinese Tech Reliance

News summary

The United States is intensifying pressure on Vietnam to reduce its reliance on Chinese-made components in electronics assembled in Vietnam and exported to the U.S., as part of a broader strategy to decouple from Chinese technology. This campaign targets key tech firms such as Apple, Samsung, Meta, and Google, whose Vietnamese manufacturing operations still heavily depend on Chinese parts for devices like smartphones and virtual reality headsets. The Trump administration has threatened Vietnam with punitive tariffs of up to 46% if substantial progress is not made by the July 8 deadline, risking significant disruption to Vietnam's export-driven economy. Vietnam is engaging with local businesses to boost domestic component production, though companies warn that transitioning away from Chinese inputs will require time, investment, and technological upgrades. The U.S. aims not only to reduce its dependency on Chinese high-tech but also to foster Vietnam’s industrial capacity, while cracking down on origin washing practices that mask Chinese content in Vietnamese exports. Vietnamese officials acknowledge the demands as challenging but are taking steps to address these issues amid ongoing tariff negotiations.

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