US backs Vietnam to decouple from China tech

The United States is pushing Vietnam in tariff talks to reduce the use of Chinese tech in devices that are assembled in the country before being exported to America, three people briefed on the matter said.

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Vietnam is home to large manufacturing operations of tech firms such as Apple and Samsung, which often rely on components made in China. Meta and Google also have contractors in Vietnam that produce goods such as virtual reality headsets and smartphones. The Southeast Asian nation has been organising meetings with local businesses to boost the supply of Vietnamese parts, with firms showing willingness to cooperate but also warning they would need time and technology to do so, according to one person with knowledge of the discussions.

The Trump administration has threatened Vietnam with crippling tariffs of 468 which could significantly limit access for Vietnam-made goods to their main market and upend the Communist-run country's export-oriented growth model. Vietnam has been asked “to reduce its dependency on Chinese high-tech,” said one person familiar with the discussions. “That is part of the restructuring of supply chains and would in turn reduce US dependency on Chinese components," the person added.