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Vietnam and China in an Era of Economic Uncertainty

Published online by Cambridge University Press:  07 May 2025

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Vietnam and China have much in common. There is no country more similar to China than Vietnam, and there is no country more similar to Vietnam than China. They share a Sinitic cultural background, communist parties that came to power in rural revolutions, and current commitments (China since 1978, Vietnam since 1986) to market-based economic reforms. Although the most recent war of both states was with one another, combat ended in 1991 and interaction has flourished since 1999. At present, together with the rest of the world, they both face a sharp increase in global economic uncertainty. What effects will global uncertainty have on the prospects for each country and on their relationship?

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Research Article
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-No Derivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
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Copyright © The Authors 2009

References

Notes

1 In purchasing power parity (PPP). In current dollars two percent. WTO Country Profiles April 2009.

2 Coal is a somewhat of an exception. Vietnam supplies one-third of China's total coal imports, and two-thirds of its anthracite (hard coal) imports.

3 Vietnam News Agency, “Coal industry ups output to 43 million tons,” 23 July 2009.

4 China Statistical Yearbook 2008, Chart 17-8, “Value of Imports and Exports by Country.”

5 The first eight months of 2009 compared to the same period previous year.

6 See Mark Selden, “China's Way Forward? Historical and Contemporary Perspectives on Hegemony and the World Economy in Crisis,” The Asia-Pacific Journal.

7 International Comparison Project 2005, Global Purchasing Power Parities and Real Expenditures (Washington: World Bank, 2008).

8 Le Thi Thuy Van, “The Global Crisis and Vietnam's Policy Responses,” East Asian Policy (April-June 2009), pp. 63-74, p. 71.

9 Ross Garnaut, “China's Place in a World of Crisis,” in Ross Garnaut, Ligang Song and Wing Thye Woo (eds), China's New Place in a World of Crisis (Canberra: Australian National University E-Press, 2009), pp. 1-14.

10 Calculated from data supplied by General Statistics Office of Vietnam.

11 IMF, “Vietnam - Informal Mid-Year Consultative Group Meeting,” Buon Ma Thuot, June 8-9, 2009.

12 Financial Times, “Thai Economy Emerges from Recession,” August 24, 2009.

13 General Statistical Office of Vietnam, “Imports and exports by country group, country and territory in first 6 months, 2009.”

14 Selden, ibid.

15 Calculated from China Statistical Yearbook 1999, 2002, 2007.

16 Brantly Womack, “Recognition, Deference, and Respect: Generalizing the Lessons of an Asymmetric Asian Order,” Journal of American East Asian Relations 16:1-2 (Spring 2009), pp. 105-118.

17 In November 2007 China set up a county-level administrative unit in Hainan with responsibilities for its territories in the South China Sea. There was a demonstration in Hanoi on December 9, prompting a public remonstrance from China, which was followed by a second demonstration on December 15.

18 “Vietnam Reportedly Set to Buy Russian Kilo Class Subs,” Defense Industry Daily, April 28 2009.

19 Brantly Womack and Gu Xiaosong, “Border Cooperation Between China and Vietnam in the 1990s.” Asian Survey 40:6 (December 2000), pp. 1042-1058.

20 The case is summarized in “Bauxite Bashers,” The Economist (April 23, 2009).

21 Alice Ba, (Re)Negotiating East and Southeast Asia: Region, Regionalism, and the Association of Southeast Asian Nations (Stanford: Stanford University Press, 2009).

22 China set a powerful example. Among many others, the EU and the US signed in July 2009.