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Published 19:29 IST, July 22nd 2020

Beijing seeks closer ties with Hanoi as tensions with US rise over South China Sea dispute

China sought closer ties with Vietnam in the wake of deteriorating relations with allies, as quad countries conduct joint military exercise in South China Sea.

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As relations with the US and other neighbours deteriorate, Beijing has coughed up a new team of foreign ministry officials to mend ties with historical allies. In this case, specifically, Beijing is cautious and wants to manage its relationship with Vietnam given the hardline approach the Quad countries have taken in the South China Sea. 

On Tuesday, July 21, Chinese Vice-Minister of foreign affairs Luo Zhaohui, reportedly discussed with his Vietnamese counterpart Le Hoai Trung, via video conference, on issues largely related to weakening relations between the two countries over the South China Sea.

Read | Japan offers asylum to HK, sets up committee to investigate China's human rights abuses

The $100 million compromise

As an olive branch offering, Beijing-backed AIIB (Asian Infrastructure Investment Bank) has agreed to lend USD 100 million to Vietnam Prosperity Joint Stock Commercial Bank to help the bank expand its wings and be able to lend to more private businesses which have taken a severe hit by the COVID-19 pandemic.

Notably, Vietnam has been one of the most critical and vocal nations in opposing Chinese belligerence in the region and its bloated territorial claims in the South China Sea.

According to a report by Chinese mouthpiece Global Times, the 12th meeting between China and Vietnam's Steering Committee for Bilateral Cooperation was conducted via video link on Tuesday and an official in attendance was quoted saying since the start of the COVID-19 pandemic, China and Vietnam has effectively controlled the virus spread.

Read | Japan protests Chinese maritime survey off southern islets

Referring to the South China Sea row, Chinese Foreign Minister Wang Yi stated 'Due to geostrategic needs, and the US fanning flames everywhere to stir up tension', the meeting was necessary to reconnect with neighbours. However, he added, China's policy on the South China Sea remains the same.

'China and Vietnam should control their differences through bilateral dialogue and consultation in accordance with the consensus reached by the top leaders of the two parties and countries.' Wang Yi was quoted saying to the Global Times.

Read | 'US should respect that Communist party is endorsed by all China's people:' Xi govt's fib

China's National Security Law and its ramifications

Recently, Japan decided to lift visa restrictions for Hong Kongers fleeing Chinese persecution and announced that it will set up a committee to investigate human rights violations by China.

The implementation of China's National Security Law is negatively viewed in most countries, owing to its pro-government slogans, propaganda and ban on pro-democracy marches. Several literary articles have also been banned in the country that could potentially "threaten" the government's way of leadership.

This is a particularly sensitive time for Beijing as it continues to lose all its friends and allies over its hunger for power and resources, at the cost of its neighbours.

Similarly, the US, Japan and Australia also conducted joint naval exercises in the South China Sea in a show of strength against Chinese aggression, which has seemingly put the red dragon in a tight spot.

Read | UK suspends extradition treaty with Hong Kong "immediately and indefinitely"

(With agency inputs)

Updated 19:29 IST, July 22nd 2020