China blocks imports of Vietnamese lychees in 2014.

Context

In 2014 officials blocked 1000 tonnes of Vietnamese lychees from entering China, with the lychees “left to rot at the border.” In the same year, Chinese lychee sellers appear to have been unofficially discouraged from importing from Vietnam, leading to a major downturn in this bilateral trade.

There had been no official government statement that China had blocked the imports of Vietnamese Lychees, besides new import restriction measures relating to quarantine requirements. However, Chinese state media sources, Xinhua and China Daily, reported that the export of Vietnamese lychees had indeed been obstructed.

This case of weaponised trade took place within a broader dispute over the arrival of a Chinese oil rig in disputed waters off the coast of disputed South China Sea islands known as the ‘Paracel Islands’ – which then triggered anti-China riots in Vietnam.

Responses  

i) Vietnamese government and industry responses.

One Vietnamese lychee farmer told international press that “it was difficult. We had a bumper crop but the Chinese buyers didn’t come”. In 2015, small lychee exports were sent to Australia, the US and Japan, as an experiment aimed at market diversification. Research has reported that a major barrier to diversified markets is differing SPS requirements, with Vietnamese exporters explaining that Australian and the United States required shipments to be irradiated, the French market required treatment with sulphur dioxide, and Malaysia had other requirements. This, combined with additional transport costs to send fruit to Ho Chi Minh City for irradiating, made it difficult for farmers to diversify.

In the aftermath of these measures, one high-ranking Vietnamese government emphasised the need for export market diversification, telling press that “It applies not only to lychee, but to other fruits as well. It is riskier if we rely too much on any market. If there is something unfavorable, it would have impacts on imports.” President of Vietnam Truong Tan Sang made comments in a similar vein, arguing that Vietnam should avoid having to “depend on any nation in both economics and politics.”

(ii) Other states’ responses

The US called China’s oil rig action “provocative” and “aggressive” but does not appear to have specifically commented on the weaponised trade aspect of the dispute. One analysis in Australian media from 2024 suggested that Vietnam-Australia bilateral trade was increasing due to both countries similar experiences of weaponised trade at the hands of Beijing.

Status  

In mid-July 2014, the dispute appeared to resolve, following China National Petroleum Corp’s removal of the controversial oil rig from waters in close proximity to the Paracel Islands. This action allegedly took place “a full month ahead of schedule.” It was reported that imports of Vietnamese lychees had been completely restored by 2022.

Reference list

AFP News Industry. 2015. “After China woes, Vietnam’s lychee farmers head to new markets.” YouTube. Available at: https://www.youtube.com/watch?v=rCFh-PDZ9ZM

Barton, C. 2015. “After China woes, Vietnam’s lychee farmers head to new markets.” Yahoo! News. July 15. Available at: https://sg.news.yahoo.com/china-woes-vietnams-lychee-farmers-head-markets-064527207.html

BBC News. 2014. “China moves Vietnam row oil rig.” BBC News. July 16. Available at: https://www.bbc.com/news/world-asia-28322355

China Daily. 2013. ‘Guangxi Inspection and Quarantine Department strengthens risk monitoring of imported fruits’ [广西检验检疫部门加强进境水果风险监控]. January 6. Available at: https://www.chinadaily.com.cn/dfpd/gx/2013-01/06/content_16089977.htm.

Dong, V. 2014. “Vietnam Seeks to Step Out of China’s Economic Shadow.” Voice of America. Available at: https://www.voanews.com/a/vietnam-seeks-to-step-out-of-chinas-economic-shadow/1945940.html

Green, M., K. Hicks, Z. Cooper, J. Schaus and J. Douglas. 2017. “Counter-Coercion Series: China-Vietnam Oil Rig Standoff.” Asia Maritime Transparency Initiative. Available at: https://amti.csis.org/counter-co-oil-rig-standoff/

Pham, B.D., and Nguyen, T.T. “Interlinked Transformations of Agri-Food System in Vietnam: A Caes Study of Lychee Fruit Production in Luc Ngan District, Bac Giang Province” in Sakata, S (ed) 2022 Development of Inclusive Food Value Chain in the Mekong Revion. BRC Resaerch Report, JTERO Bangkok. Available online at https://www.ide.go.jp/library/English/Publish/Reports/Brc/pdf/30_02.pdf

Produce Report. 2022. ‘The import of Vietnamese fruits restored at the Hekou – Laojie port’ [河口-老街口岸试点恢复越南水果]. June 29. Available at: https://m.guojiguoshu.com/article/7615.  

Trinh, V.D. 2024. “Same problems, same solutions: Australia and Vietnam react to economic coercion.” The Strategist. March 27. Available at: https://www.aspistrategist. org.au/same-problems-same-solutions-australia-and-vietnam-react-to-economic-coercion/#:~:text=Vietnam’s%20most%20notable%20experience%20in,to%20rot%20at%20the%20border.

Xinhua. 2014. ‘Exports of Vietnamese lychees to China are obstructed, Vietnamese officials call for citizens to eat lychees’ [越南荔枝出口中国遇阻 官方号召全民吃荔枝]. July 2. Available at: http://www.xinhuanet.com/world/2014-07/02/c_126702521.htm