Trump’s Vietnam Agreement has targeted China, raising more questions than answers

US President Donald Trump announced a trade agreement with Vietnam on Wednesday, but in short information, economists surprised what the meaning of the flow of Chinese goods from the country.

Trump said on Wednesday Vietnam will have a 20% rate of Rs 20% and Goods arising in another country will have a “transplant” rate on the goods and Vietnam will be transferred to the United States for a final shipment.

Chinese manufacturers have used Vietnam as a major transplant hub in the United States to use transplanting on its direct shipment in favor of its direct shipment.

White House Trade Advisor Peter Navaro alleged that about one -third of Vietnam’s exports were resumed from China, and in an interview to Fox News in April, Vietnam described the “basically Communist China colony”.

Associate Professor of Supply Chain Management at Miami University, Yao Jin, said that the latest agreement against China’s redevelopment is a clear agreement.

But the implementation of target charges on transplants will be a difficult task for Hanoi, as “built in Vietnam” and the scope of what the transplantation is as it is qualified.

“If it is only applied to pure transplants – the goods sent by China by Vietnamese ports to the United States, without any local assembly – should not have much effect on Vietnam,” HSBC Bank Chief Asia Economist Frederick Pneumon told CNBC on Friday.

However, if 40% of the “all Vietnamese items are applied to all items that have the minimum share of Chinese components, interruptions may be significant,” said Pneumon.

Likewise, China’s director of the Eurasia Group Dan Wang said, “It is unclear how it will work – possibly the root certificate is burdened with Hanoi – and if it is metric, which Chinese components will be considered higher.”

After Trump’s first tenure, more Chinese manufacturers moved their product to Vietnam, Vietnam increased trade with the United States. Records of $ 123.5 billion Less than $ 40 billion in 2018 last year, According to Bureau of US Census??

There were many southeast Asian countries Benefit In the first tenure of Trump, working as an alternative product and export center from the last US-China trade war of the United States.

ING Chief China Economist Lin Song said that the impact of the people of the US and China markets and local industries will make the country their own decisions will determine the country’s own decisions.

This year, shipment recorded in many southeast Asian countries from China, Shown Chinese custom data, As exporters diverted shipments in alternative markets to sell or transpision in the US

If Vietnam and UK trade deals are any indication, the remedies for transplanting in the deals with other US future countries, the increase in the purchase of American goods and “pressure on China,” said Stephen Olus, the current colleague at ISAS-Yuzhof Ishak Institute.

Strict safety requirements for steel and pharmaceuticals in the US-UK deal are widely seen as an attempt to squeeze China outside the British supply chain.

The Commerce Ministry of Commerce said on Thursday that it was “Conduct evaluating The agreement, other countries, urges not to contract with Washington at the interest price of China.

Olson further said, “Washington will see the third countries to try to get the third countries out of supply chains,” Washington will see, “Olson further said that the Bijing countries could not be ignored by the Washington negotiations.

It is said that Beijing can prevent any concrete action until the details of the agreement are clear, experts said they were waiting for the business of trade of other countries.

“It would be foolish to flip the table on a single Vietnam trade agreement,” the singing of the ING said.

The United States and China recently returned several preventive measures against each other in honor of the trade unanimous of the trade in Switzerland in May in May. Washington has since taken export restrictions on etching, chip-design software and jet engine parts, while Beijing is ready for rapid track approval for rare earth exports.

The trade box reached both sides After the discussion in London last month, which is effective in the middle of August, Chinese goods are currently about 55%of the rates.

The US-Vietnam agreement also indicates that the Economist Intelligence Unit Chief Economist Nick Marrow said the final rate on China’s goods is unlikely to fall under that 40%.