The US is reportedly urging Vietnam to scale back its reliance on Chinese technology in electronics and other high-tech devices assembled in the country and exported to America.

This push is part of broader efforts to restructure global supply chains and lessen reliance on Chinese high-tech components, with Reuters reporting the news come from three sources familiar with ongoing trade talks between the two nations.

Vietnam has been asked to “reduce its dependency on Chinese high-tech,” one source said.
“That is part of the restructuring of supply chains and would in turn reduce US dependency on Chinese components,” the person added.

A second source said the move aims to accelerate the US decoupling from Chinese high technology while increasing Vietnam's industrial capacity. The source also cited virtual reality devices as an example of products assembled by Vietnam that rely heavily on Chinese technology.

All sources emphasised that although the US has made broader demands for Vietnam to reduce its dependence on China, addressing the issue of Chinese high-tech content in exports remains "a key priority".

US technology giants such as Apple, Samsung, Meta and Google rely on Vietnam for the production and procurement of technology components and have contractors in the country producing goods such as virtual reality headsets and smartphones.

Washington has stepped up efforts to restructure global supply chains and reduce dependence on Chinese components, particularly in high-tech sectors.

Although Vietnam has expressed willingness to adapt its supply chains, the transition would be gradual and would require significant investment in domestic capabilities, a source said.

The talks are part of an effort to avoid the imposition of heavy US tariffs - up to 46 per cent - on Vietnamese goods, a threat that was initially raised during the Trump administration.

The new tariffs could seriously undermine Vienam's export-based economic model and damage one of its main export markets, as Vietnam's trade with China remains substantial.

Last year, Reuters reported that China exported about $44 billion worth of technology goods to Vietnam, accounting for about 30 per cent of its total exports to the country.

In turn, Vietnam shipped £33 billion in tech products being relabelled as “Made in Vietnam” to bypass tariffs.

The broadcaster added that Vietnamese officials have said they recognised the problem and are intensifying controls.

The latest round of negotiations in Washington, held last week, represents the third meeting focused on trade dependencies between the two countries.

Despite the progress made, critical issues remain unresolved and no firm date has been set for the conclusion of the agreement, while the 8 July deadline looms, after which the tariffs could come into effect, Reuters said.

Vietnamese Prime Minister Pham Minh Chinh is reportedly planning a visit to the US, although no date has been confirmed, Reuters reported.

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