The economic rivalry between China and the United States has been in the spotlight, and in recent years the United States has placed greater emphasis on "de-risking" rather than decoupling economic policies, a strategy that has been replicated in Europe. However, recent U.S. moves suggest that they are turning their attention to Vietnam as a serious contender. Vietnam, as a country close to China, has seized the opportunity of manufacturing spillover and has become an important part of China's manufacturing industry. Over the past few years, the U.S. has pursued a "friendly shore outsourcing" strategy, which has led to a rapid increase in Chinese investment in countries such as Vietnam and India. In order to circumvent regulations and tariffs, Chinese companies began to relocate production lines and factories to these countries. As a result, the entire Southeast Asian region has become an important part of China's manufacturing industry. But the U.S. underestimated the ingenuity of Chinese companies, believing that they would not relocate factories in Southeast Asia to places like Mexico. However, the reality proves that many Chinese companies have really done this. After several years of practice, Biden has to admit that decoupling and breaking the chain is not realistic, and instead adopts a strategy of "de-risking".
The U.S. recently signed an agreement with Mexico to strengthen cooperation in foreign investment review by establishing bilateral working groups to address the risks that may arise from foreign investment in specific areas of technology, critical infrastructure and sensitive data. Although China is not explicitly mentioned in the agreement, it is a clear indication that the United States and Mexico are working together to increase scrutiny of foreign investment and pay attention to the problems that foreign investment poses. This move reveals the general picture of the U.S. "de-risking" strategy, which has strengthened investment and security reviews with nearshoring countries, in addition to restricting China's cutting-edge technology and intensifying domestic scrutiny. Next, the United States will turn its attention to Vietnam, trying to replicate Mexico's actions in Vietnam. In April of this year, US Secretary of State Antony Blinken visited Vietnam;In September, Biden personally visited Vietnam and elevated the U.S.-Vietnam relationship to the level of a comprehensive strategic partnership. This shows that the United States is going all out to gain a place in Vietnam. However, it remains to be seen whether the U.S. initiative will succeed in Vietnam.
For Chinese enterprises, the first-chain transfer strategy is a way to avoid risks and enhance competitiveness. As the country at the southern gate of China, Vietnam has a unique geographical location and convenient conditions, and has become an ideal choice for Chinese enterprises. As China's manufacturing spillover intensifies, Vietnam has become one of the beneficiaries. Vietnam has attracted a large number of investment from Chinese enterprises and has undertaken a large number of processing and manufacturing and entrepot business. This has made Vietnam increasingly economically linked to China. Vietnam's manufacturing and development has also provided a strong impetus for its economic growth. However, as a developing country, Viet Nam still faces some problems and challenges. For example, the infrastructure construction is not perfect, the quality of the labor force needs to be improved, and the regulatory system is still not perfect. These issues have had a certain impact on Vietnam's **chain transfer strategy. Vietnam needs to increase investment in infrastructure construction and talent training to improve its competitiveness in order to better attract and retain investment from Chinese enterprises.
Although the "de-risking" strategy pursued by the United States is intended to weaken China's manufacturing strength, Chinese companies have shown ingenuity and determination. In the face of U.S. restrictions and scrutiny, Chinese companies turned their attention to Southeast Asia, quickly relocating production lines and factories to countries such as Vietnam and India. This move not only circumvents regulations and tariffs, but also provides more room for Chinese companies to grow. By producing goods in these countries and obtaining a certificate of origin, Chinese companies can effectively circumvent the restrictions of high tariffs. Southeast Asia has quickly become an important part of China's manufacturing industry. However, the development of Chinese companies in Southeast Asia also faces some challenges. For example, problems such as lack of experience in dealing with international competition, insufficient personnel training, and imperfect quality standards and systems need to be addressed by Chinese companies in their overseas investments.
The globalization strategy of Chinese enterprises has embarked on a new stage. Despite the restrictions and obstacles faced by the United States, Chinese companies have persistently sought to develop and enhance their competitiveness. Vietnam, as the southern gate of China, is one of the most important investment targets for Chinese enterprises. By relocating production lines and factories to Southeast Asian countries such as Vietnam, Chinese companies can not only reduce production costs, but also circumvent the pressure of regulatory restrictions and high tariffs, further enhancing their competitiveness. At the same time, Chinese companies are aware that they need to face and solve a series of problems and challenges in overseas investment. Therefore, they are constantly increasing their investment in talent training and standardization, improving product quality and brand image, and enhancing their competitiveness. These efforts are of great significance for the development of Chinese enterprises in Vietnam and the entire Southeast Asian region.
Recent U.S. moves show that they are turning their attention to Vietnam as a key economic competitor. Although Vietnam, as a neighbor of China, has benefited from China's first-chain transfer, it still faces some problems and challenges. The U.S. has tried to weaken China's manufacturing power by increasing cooperation and scrutiny with Vietnam, however, Chinese companies have shown ingenuity and determination to succeed in investment and development in the Southeast Asian region. Chinese enterprises will continue to strive to improve their competitiveness, solve the problems and challenges faced in overseas investment, and contribute to the global development of China's manufacturing industry.