US expects to upgrade Vietnam ties, risks China anger
investing.comBy Francesco Guarascio
HANOI (Reuters) — The United States expects to elevate its diplomatic relations with former foe Vietnam to the top level as President Joe Biden travels to Hanoi in a week, in a move that may irk China and with unclear business implications.
Fearful of the potential reaction from its much larger neighbour, Vietnam had initially expressed caution about the upgrade. That led the Biden administration to multiply efforts to persuade the southeast Asian nation, including through multiple visits of high-ranking members of the U.S. government in recent months.
The unprecedented push has led Washington to expect to be elevated to the top tier of Vietnam's diplomatic ranking, together with China and Russia, from two notches below now.
Biden said it publicly in July and officials in both countries have since informally expressed optimism about the two-step upgrade, although no official statements have been released from either government.
Perhaps seeking to assuage Beijing, Vietnam is discussing top-level visits to Hanoi after or even shortly before Biden's arrival on Sept 10, with officials saying China's President Xi Jinping and Prime Minister Li Qiang could meet Vietnamese leaders in coming days or weeks.
Risks that a double upgrade with Washington may not go down well in Beijing remain high, but Vietnam's communist leaders may have calculated the best timing for the move is now as relations with China are «likely to get worse in the future,» said Le Hong Hiep, a senior fellow at Singapore's Iseas–Yusof Ishak Institute.
Yet it is unclear what Vietnam, which is at odds with China over boundaries in the South China Sea (NYSE:SE), stands to gain in the short term from the upgrade.
A boost of U.S. military
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