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SUMMARY:Production Studies Launch
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SUMMARY:Production Studies Things
DESCRIPTION:Try this – maybe this is an event/ what an event it is! \n  \n\n\n\nThe Trump administration wants Vietnam to do more to crack down on companies that are rerouting goods from China to Vietnam to avoid tariffs\, a practice known as transshipment. \nBut the administration is also taking a view of the issue that goes beyond the usual definition of transshipment as it tries to wean the American economy off its dependence on Chinese imports. That puts countries that rely on China to make goods they export under heavy pressure. \nFor Vietnam\, the challenge is proving that what it sends to the United States was made in Vietnam and not in China. In a sign of the awkward position it finds itself in\, Peter Navarro\, a top trade adviser to Mr. Trump\, recently called Vietnam “a colony of China.” \nVietnam was a big beneficiary of tariffs that Mr. Trump placed on Chinese goods during his first presidency. Its trade surplus with the United States swelled to $123.5 billion in 2024\, from $38.3 billion in 2017. \n\n\n\nEditors’ Picks\n\n\nShould I Retire if My Fellow Federal Employees Are Facing Layoffs?\n\n\n\nThis Dress Is Dividing the Internet\n\n\n\nMeet Dozens of Gecko Species at a Tiny Brooklyn Zoo\n\n\n\n\n\n\n\nADVERTISEMENT \n\nSKIP ADVERTISEMENT \n\n\n\n\n\n\n\n\nThe reordering of trade flows accelerated in April\, when China was facing 145 percent tariffs\, Vietnamese imports from China ballooned to $15 billion while its exports to the United States totaled $12 billion. Beijing and Washington have since reached a temporary deal to slash the tariffs. \n\n\n\n\n\n\n\n\n\n\nWant to stay updated on what’s happening in China and Vietnam? Sign up for Your Places: Global Update\, and we’ll send our latest coverage to your inbox.\n\n\n\n\n\n\n\n\n\n\n“The priority for Trump is for Vietnam to fix the transshipment problem and make sure that the two countries can sign something that shows Vietnam is taking action\,” said Adam Sitkoff\, the executive director of the American Chamber of Commerce in Hanoi. \n\n\n\n\n\n\nImage \n\n\n\nAs the 90-day tariff pause nears its end\, officials are under pressure to curb Chinese goods being rerouted through Vietnam.Credit…Linh Pham for The New York Times\n\n\n\n\nIn response\, Vietnam created a special task force this month to “aggressively crack down on smuggling\, trade fraud” and “the export of goods falsely labeled as ‘Made in Vietnam\,’” and its finance ministry has met with U.S. Customs and Border Protection to talk about working together and sharing information. \nDespite the efforts\, Trump officials have said it is not enough. \n“It has become very difficult for Vietnam to justify to the U.S. government that this isn’t just rerouting Chinese goods\,” said Priyanka Kishore\, an economist in Singapore and the founder of Asia Decoded\, a consulting firm. \n\n\n\n\n\n\nADVERTISEMENT \n\nSKIP ADVERTISEMENT \n\n\n\n\n\n\n“China is Vietnam’s biggest intermediate goods supplier\, so if you are pushing your exports to the U.S. up\, you would see an increase in imports from China\,” Ms. Kishore said. \n\n\n\n\n\n\n\n\nOur economics reporters — based in New York\, London\, Brussels\, Berlin\, Hong Kong and Seoul — are digging into every aspect of the tariffs causing global turmoil. They are joined by dozens of reporters writing about the effects on everyday people. \nHere’s our latest reporting on tariffs and economic policy.\n\n\n\n\n\n\n\n\nVietnam and other Asian countries depend on China for the supplies used to make finished goods. So as production shifts from factories in China to factories elsewhere\, much of the spike in exports from China to its neighbors may be raw materials used by factories. \nStill\, some Vietnamese imports from China are undeniably finished goods shipped through Vietnam to other countries with their origin in China disguised\, which is universally considered illegal. \nThere is little data on exactly how much falls into the category of transshipment\, Ms. Kishore said. By one estimate\, rerouting activity increased to 16.5 percent of exports to the United States after Mr. Trump’s first-term tariffs on China\, driven in part by Chinese-owned companies. \n\n\n\n\n\n\nADVERTISEMENT \n\nSKIP ADVERTISEMENT \n\n\n\n\n\n\nThe prohibitively high tariffs on Chinese goods last month caused more manufacturers to seek options in Vietnam. After Mr. Trump ended a loophole that let Americans buy cheap goods from China tax free\, Shein offered guidance and subsidies to factories to move operations to Vietnam. Shein did not respond to a request for comment. \n\n\n\n\n\n\nImage \n\n\n\nIn April\, Vietnam imported $15 billion from China and exported $12 billion to the United States.Credit…Linh Pham/Bloomberg\n\n\n\n\nMuch of that activity has been the legitimate movement of the supply chain as companies shift their production out of China and into places where tariffs are lower. \nBut the Trump administration is taking a hard line. “China uses Vietnam to transship to evade the tariffs\,” Mr. Navarro said. The goal is to put a fence around China’s exports. \n“The United States seems to be arguing that anything that comes from China is by default transshipment\, so you tar and feather every single product that comes from China\,” said Deborah Elms\, the head of trade policy at the Hinrich Foundation\, an organization that focuses on trade. \nStopping illegal transshipment is one thing; disconnecting supply chains from China would be much more complicated. Most of the things that Americans buy have raw materials from China — whether it is the plastic in their children’s toys\, the rubber in their shoes or the thread in their shirts. \n\n\n\n\n\n\nADVERTISEMENT \n\nSKIP ADVERTISEMENT \n\n\n\n\n\n\n“Asian governments are being asked to redefine supply chains to something that might be decades in the making in exchange for what? It’s a little unclear\,” Ms. Elms said. \nFor Vietnam’s textile and garment industry\, taking China out of the equation would be hugely problematic. Factories import around 60 percent of the fabrics they use from China\, according to Tran Nhu Tung\, the vice chairman of the Vietnam Textile and Apparel Association. \n“Without China\, we cannot make products\,” he said. “Vietnam would have no material to produce to make the finished goods. And without the U.S.\, Vietnam cannot export the finished goods. So the Vietnamese government has to find a balance between China and the U.S.\, and it’s very difficult for them to do this.” \n\n\n\n\n\n\nImage \n\n\n\nShein packages\, awaiting shipment at a factory in China in February. Over the past two months\, the company has been setting up warehouses in Vietnam.Credit…Gilles Sabrié for The New York Times\n\n\n\n\nTo try to sweeten any deal with the Trump administration\, Vietnam has offered to increase its purchase of American goods like agricultural products and Boeing aircraft\, and curb the shipment of Chinese goods to the United States. \n\n\n\n\n\n\nADVERTISEMENT \n\nSKIP ADVERTISEMENT \n\n\n\n\n\n\nBut the flood of investment and hiring by Chinese companies continues to complicate things. \nIn the southern province of Long An\, where many shoe and textile factories are based\, Shein is on a hiring drive. \nOn a recent Friday\, Huy Phong\, a recruiter\, hung an advertisement for jobs on the fence outside a Shein warehouse soliciting work to load goods and sort\, classify and package fashion items like handbags\, clothing and footwear. The pay: $385 to $578 a month. Shein needs 2\,000 workers for its warehouse and has hired only half that number so far\, he said. \nFinding workers was hard. A lot of warehouses and logistics companies were recruiting. \nNearby\, Duong Minh Giang was leaving his interview feeling dismayed. He said the job would entail handling raw materials from China like thread and chemical dye to store at the warehouse and send to nearby factories to make clothes. \n“But I don’t think I will take the job\,” he said. “The salary is low.” \n\n\n\n\n\n\n\n\n\n\n\nAlexandra Stevenson is the Shanghai bureau chief for The Times\, reporting on China’s economy and society. \n\n\n\n\nTung Ngo is a Times reporter and researcher based in Hanoi\, Vietnam. \n\n\n\nA version of this article appears in print on May 24\, 2025\, Section B\, Page 1 of the New York edition with the headline: China in Way of U.S.-Vietnam Trade Deal. Order Reprints | Today’s Paper | Subscribe\nSee more on: Donald Trump\, Shein (Fashion Label)\, Alibaba Group Holding Ltd\n\n\n\n\n\n\nShare full article\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nADVERTISEMENT \n\nSKIP ADVERTISEMENT \n\n\n\n\n\n\n\n\n\n\n 
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