The Bac Luan 2 Bridge is the border that connects China to Vietnam. According to one Nikkei Asia researchit is also the back door through which China is sneaking its goods to continue selling in the US without being affected by tariffs.
what’s happening. Chinese trucks form huge queues at the border town of Mong Cai every morning; They bring merchandise that will end up arriving in the United States, but first all traces of ‘Made in China’ are erased and the certificates of origin are changed so that it continues its journey as Vietnamese merchandise. The trick allows them to continue selling products while avoiding the high tariffs imposed by the Trump administration, always according to Nikkei.
Why is it important. It highlights that the trade war is full of cracks. We have seen other similar “tricks” such as dropshipping of chips and also Chinese companies that have gained access to banned NVIDIA chips via Indonesia. What on paper seem like insurmountable walls are not so insurmountable in practice; Chinese companies respond by redesigning new supply chains to keep prices low and continue selling in the US.
Re-export. It is the strategy that many Chinese companies are adopting, some even offer it as a service to their clients. Nikkei has had access to a document from a Chinese company in which they literally say “re-exporting through a third country is effective in avoiding high tariffs.” Another company urges its customers not to include Chinese characters on the packaging nor of course any reference to ‘Made in China’.
Volume. Of course the process of changing the country of origin is done clandestinely and China evidently does not recognize this practice, but the volume of containers that have passed through the border in Mong Cai continues to increase. As of July 2025, this volume was 840,000 tons, 43% more than the same period last year. At the same time, exports between Vietnam and the US are also increasing.
In addition, Nikkei has analyzed satellite images and found that the Mong Cai border has changed a lot recently; It is filling up with logistics centers and urbanizations with a strong presence of Chinese businesses. White and in bottle.
Washington raises his eyebrow. Trump reached an agreement with Vietnam, but warned that would raise tariffs to 40% if it is proven that they are acting as a platform to divert exports. Vietnam is trying to calm the waters by pursuing these fraudulent export practices and in July of this year alone they uncovered 900 cases. The question is how many more are still sneaking in and not just in Vietnam, routes are also being diverted through Malaysia, Indonesia and others.
Image | Daniel Fikri in Unsplash
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