Vietnam Currency Investigation: Strategy and Policy Implications

November 2, 2020 CSIS

The Office of the United States Trade Representative (USTR) on October 2 launched two investigations of Vietnam under Section 301 of the Trade Act of 1974, including one into alleged currency undervaluation. The president has repeatedly complained about Vietnam’s large trade surplus with the United States, and the USTR action is one of several launched by the administration targeting Vietnam’s currency practices. But the administration has also touted the growing security partnership with Vietnam, which shares U.S. anxieties about China, and the trade actions could run counter to the broader strategic alignment between Hanoi and Washington.

Q1: What is Section 301 and why is Vietnam being investigated?

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In latest China jab, US drafts list of 89 firms with military ties

Chinese and U.S. flags flutter near The Bund in Shanghai
Chinese and US flags flutter near The Bund in Shanghai, China, Jul 30, 2019. (Photo: REUTERS/Aly Song/Files)

23 Nov 2020 12:06PM(Updated: 23 Nov 2020 05:57PM)

WASHINGTON: The Trump administration is close to declaring that 89 Chinese aerospace and other companies have military ties, restricting them from buying a range of US goods and technology, according to a draft copy of the list seen by Reuters.

The list, if published, could further escalate trade tensions with Beijing and hurt US companies that sell civil aviation parts and components to China, among other industries.Advertisement

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China says it will respond to US admiral visit to Taiwan

Chinese Foreign Ministry spokesman Zhao Lijian attends a news conference in Beijing, China
Chinese Foreign Ministry spokesman Zhao Lijian attends a news conference in Beijing, China September 10, 2020. REUTERS/Carlos Garcia Rawlins

23 Nov 2020 04:35PM(Updated: 23 Nov 2020 05:38PM) CNA

BEIJING: China will respond to the reported visit of a US Navy admiral to Taiwan and firmly opposes any military relations between Taipei and Washington, China’s Foreign Ministry said on Monday (Nov 23).

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US Navy admiral makes unannounced visit to Taiwan, sources say

FILE PHOTO: Flags of Taiwan and U.S. are placed for a meeting between U.S. House Foreign Affairs Co
FILE PHOTO: Flags of Taiwan and US are placed for a meeting In Taipei, Taiwan on Mar 27, 2018. (File photo: REUTERS/Tyrone Siu)

23 Nov 2020 08:56AM(Updated: 23 Nov 2020 09:52AM) CNA

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TAIPEI: A two-star Navy admiral overseeing US military intelligence in the Asia-Pacific region has made an unannounced visit to Taiwan, two sources told Reuters on Sunday (Nov 22), in a high-level trip that could vex China.

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US provides missiles, renews pledge to defend Philippines

Philippines US
United States national security adviser Robert O’Brien (right) and Philippine Foreign Affairs Secretary Teodoro Locsin Jr elbow bump after the turnover ceremony of defence articles at the Department of Foreign Affairs in Pasay City, Metro Manila, on Monday, Nov 23, 2020. (Photo: AP/Eloisa Lopez, Pool)

23 Nov 2020 04:21PM CNA

MANILA: President Donald Trump’s administration provided precision-guided missiles and other weapons to help the Philippines battle Islamic State group-aligned militants and renewed the United States’ pledge to defend its treaty ally if it comes under attack in the disputed South China Sea.

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Australia will not be deputy sheriff in US-China tensions, Morrison declares

By Rob Harris and Anthony Galloway

November 23, 2020 — 8.00pm

Prime Minister Scott Morrison says Australia’s pursuit of its national interests on the world stage has been wrongly interpreted as siding with the United States over China, declaring his government will not make a “binary choice” between the superpowers.

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Trump’s US investment ban aims to cement tough-on-China legacy

The Guardian

Move is latest chapter in deteriorating relationship with Beijing and improvement under Joe Biden is unlikely

Donald Trump

Foreign policy analysts believe Trump wants to leave a tough-on-China legacy while simultaneously conducting a ‘scorched earth’ policy on his way out of the White House. Photograph: Saul Loeb/AFP/Getty Images

Helen Davidson in Taipei @heldavidson Mon 23 Nov 2020 10.52 GMT

Donald Trump has banned US investment in a further 89 Chinese companies, and reportedly sent a navy admiral to Taiwan, as he seeks to secure a tough-on-China foreign policy legacy.

Multiple media outlets have reported plans by the Trump administration for a series of confrontations with China before Biden’s inauguration on 20 January, and the moves were largely expected. Foreign policy and political analysts believe Trump wants to leave a legacy of being tough on China, while simultaneously conducting a “scorched earth” policy on his way out of the White House.

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USS Barry returns to the South China Sea

By: Lt.j.g. Samuel Hardgrove, USS Barry, cpf.navy.mil

Posted November 21, 2020

USS Barry (DDG 52) transits waters of the Taiwan Strait, Nov. 20. (U.S. Navy/MCSN Molly Crawford)

SOUTH CHINA SEA – After conducting its fourth routine transit through the Taiwan Strait this year, Arleigh Burke-class guided-missile destroyer USS Barry (DDG 52) returned to South China Sea, Nov. 21, to conduct maritime security operations and promote peace and stability in the region.

“A continued presence in the South China Sea is vital in maintaining a free and open Indo-Pacific,” said Cmdr. Chris Gahl, Barry’s commanding officer. “The freedom of all nations to navigate in international waters is critically important. Barry’s transit of the Taiwan Strait yesterday ensured the right and instills the confidence of all nations to trade and communicate in the South China Sea.”

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In Singapore, one single person may be counted as a crowd

Singapore activist in court over one-man ‘smiley face’ protest

Jolovan Wham is facing charges under Public Order Act after posing for a photo with his placard in March.

Jolovan Wham is being charged for an offence under the Public Order Act for holding a placard with a smiley face outside a police station on March 28 [Jolovan Wham/Handout via Reuters]
Jolovan Wham is being charged for an offence under the Public Order Act for holding a placard with a smiley face outside a police station on March 28 [Jolovan Wham/Handout via Reuters]

23 Nov 2020 Al Jazeera

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Vietnam premier, US national security adviser talk bilateral ties

Sunday, November 22, 2020, 14:51 GMT+7 tuoitrenews

Vietnam premier, US national security adviser talk bilateral ties
Vietnamese Prime Minister Nguyen Xuan Phuc (R) and United States National Security Adviser Robert O’Brien are pictured at their meeting in Hanoi on November 21, 2020. Photo: Vietnam Government Portal

Vietnamese Prime Minister Nguyen Xuan Phuc and United States National Security Adviser Robert O’Brien discussed the two countries’ bilateral relationship in Hanoi on Saturday.

The meeting was convened within the framework of O’Brien’s visit to Vietnam on November 20-22, which is conducted on the occasion of the two nations’ 25th anniversary of diplomatic ties.

The relationship has seen comprehensive and practical development, which significantly contributes to regional and global security, peace, cooperation and development, PM Phuc said at the talk.

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What does the ‘rescue’ of Vietnam Airlines reveal?

22/11/2020    15:07 GMT+7 vietnamnet

The national airline of Vietnam finally saw “the light at the end of the tunnel” when the National Assembly agreed with the Government’s proposal for solutions to help Vietnam Airlines overcome difficulties caused by the Covid-19 pandemic.

In the resolution of the 10th session, the 14th National Assembly approved two options. Firstly, the State Bank of Vietnam refinances and extends no more than two times for credit institutions (excluding those under special control) to allow Vietnam Airlines to borrow additional capital to serve production and business activities.

Thấy gì qua cuộc ‘giải cứu’ Vietnam Airlines
A Vietnam Airlines flight from Alaska brought Vietnamese citizens back to their home country in May. Photo: Ted Stevens Anchorage Airport, Alaska

At the same time, Vietnam Airlines is allowed to offer additional shares to existing shareholders to increase its charter capital. The Government will assign the State Capital Investment Corporation (SCIC) to buy shares in Vietnam Airlines on behalf of the Government under the right to buy shares of state shareholders in the mode of transfer of rights to buy. This investment is rated in Group A projects.

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