Vietnam, China to expand rail links, cross-border payments

China is Vietnam’s biggest trade partner, but the two countries share historic tensions –  including in the South China Sea, a waterway through which trillions of dollars of trade pass each year.

Vietnam’s top leader To Lam and Li agreed on Saturday to boost defence and economic cooperation, Vietnamese state media reported.

The two agreed to “maintain regular high-level exchanges and cooperation in defence, security, and foreign affairs … expanding the implementation of new mechanisms”, the Nhan Dan newspaper said.

Vietnam would facilitate more high-tech Chinese investment in the country and Beijing would strengthen market access for Vietnamese agricultural products, the newspaper said.