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Economy / China

Hanoi To Avoid Further Confrontation In South China Sea

July 2009 | Political Risk Analysis

The seizure on June 21 of Vietnamese fishermen near the disputed Paracel islands spells a continuation of strained relations between Beijing and Hanoi in the short term, and we now see risks of a limited naval escalation in the disputed area. As there is little Hanoi can do on its own to counter the growing military might and assertiveness of Beijing, we expect Vietnam to seek to avoid further confrontation.

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