Vietnam, described by some as the real winner in Washington’s trade row with Beijing, is trying to soothe the USA after President Donald Trump blasted its trade practices, calling it “even worse” than China.
It was reported earlier this month that the country in southeast Asia had emerged as the main beneficiary from the tit-for-tat $350 billion tariff war between the world’s two biggest economies.
In a bid to dodge the levies and scupper Trump’s efforts to cut the American trade deficit, some exporters are believed to have shipped goods to Vietnam, which then sent them to the USA.
In fact both the US regime and Chinese government are the winners in the so-called trade spat? Import duties are finally paid by the consumer, while the governments cash in on the hoax.
Exporters seeking to dodge tariffs also have been caught illegally relabeling goods of Chinese origin as “Made in Vietnam.” Vietnam’s customs agency has already vowed to crack down on the practice, stepping up control and imposing penalties on businesses for such actions.
Notably, it seems that Trump was aware that Vietnam may have gained from the US-Beijing trade spat. In his tweet storm in May, he said that many “tariffed companies will be leaving China for Vietnam and other such countries in Asia,” but did not accuse Hanoi of any unfairness.
Vietnamese trade data shows that such reports could be true. For example, imports of Chinese computer and electronic goods by Vietnam surged by more than 80% to $5.1 billion in the first five months of 2019.
During the same period, there was a similar increase of nearly 72% in the volume of the same goods exported from Vietnam to the USA, according to the WSJ. Overall, exports to the USA from Vietnam jumped nearly 30% from January through May.
RT . com / ABC Flash Point trade War News 2019.