The US is pressuring Vietnam to limit its use of Chinese technology in electronics manufactured for export to the American market.
US Pressure on Vietnam
According to multiple sources, the US is asking Vietnam to reduce its reliance on Chinese technology in high-tech goods such as smartphones and virtual reality devices. This initiative is part of Washington's efforts to reshape global tech supply chains, positioning Vietnam as a critical pivot point.
Potential Consequences for Vietnam
The Trump administration has warned of steep tariffs as high as 46% on Vietnamese exports if the country does not comply with the new expectations. Vietnamese firms are willing to adapt but note that such a shift requires significant time and investment. Last year, Vietnam imported about $44 billion worth of electronics from China while exporting $33 billion worth of tech goods to the US.
Taiwan's Situation and Its Impact
Taiwan is also facing pressure to reduce exposure to Chinese technology by imposing a ban on exports to Chinese AI and semiconductor firms. These measures align with new domestic laws in Taiwan that support US export control efforts. Taiwan has restricted the export of chip fabrication technologies to companies like Huawei and SMIC.
The situation between the US and Vietnam remains tense as both sides seek to engage in negotiations. A meeting of high-level officials is expected later this month, with trade, technology, and tariffs in focus.
