China's premier talks trade in Vietnam despite differences over South China Sea

China has agreed to assist Vietnam on cross-border railway development and take steps to expand agricultural imports from its smaller neighbor

China agreed Sunday to assist Vietnam on cross-border railway development and take steps to expand agricultural imports from its smaller neighbor, Vietnam’s official media said.

Premier Li Qiang, on an official visit to Vietnam, pledged that China would further open its market to high-quality fruits, seafood and other Vietnamese products, a state media report said.

China is Vietnam’s largest trading partner and second-largest export market after the U.S. Trade between the two countries reached $172 billion in 2023. Vietnam’s top leader, To Lam, signaled the importance of the relationship when he made China his first overseas visit after assuming his post last year.

Li came to Vietnam from neighboring Laos, where he had pushed back against calls at a meeting of Southeast Asian leaders to respect international law in territorial disputes in the South China Sea.

Vietnamese Prime Minister Pham Minh Chinh told Li that both sides should respect each other’s legitimate rights and interests, resolve disputes through peaceful means and properly address issues related to fishers and their vessels, the state media report said.

Vietnam condemned China two weeks ago for what it described as an assault by Chinese law enforcement personnel that injured several Vietnamese fishers near the Paracel Islands in the South China Sea.

The islands have been under the de facto control of China since 1974, when Beijing seized them from Vietnam in a brief but violent naval conflict.

U.S. Secretary of State Antony Blinken told the Southeast Asian leaders gathered in Laos last week that the U.S. is concerned about China’s “increasingly dangerous and unlawful” activities in the South China Sea, which Beijing claims virtually in its entirety.

In their talks on Sunday, Chinh and Li agreed to deepen exchange and cooperation in diplomacy, national defense and public security, the state media report said.

They also witnessed the exchange of 10 cooperation agreements, including the establishment of a working group to develop cross-border economic cooperation zones and the implementation of QR-code, cross-border payment services.

The railway agreements covered a technical plan and feasibility studies to improve train connectivity between Vietnam and China.

On trade, Chinh asked for greater access for a range of products including tropical fruits, meat products, farm-raised spiny lobster and plant-based traditional medicines.

Li said that China stands ready to resolve trade issues and work with Vietnam on quarantine and customs procedures, according to the Vietnamese report.