ANTI-CHINA riots have escalated in Vietnam as attacks on Taiwanese companies left two people dead and 129 injured, and foreign-owned shutdown and Chinese workers fled the country, Bloomberg reports.
Vietnamese staff at a Taiwanese steel mill in Vung Ang in the central province of Ha Tinh looted the site, leaving one Chinese dead and 90 injured. A Chinese technician at Taiwan's DDK, choked to death when his plant caught fire,
Rioting in the southern province of Binh Duong was sparked by a Chinese oil rig being placed in disputed waters near the Paracel Islands claimed by both Vietnam and China.
Vietnam and China fought a war in 1979 when the Chinese army invaded the north in response to Vietnam's occupation of Cambodia in 1978, which ended the rule of the Chinese-backed Khmer Rouge, says Wikipedia.
Chinese leader Deng Xiaoping said it was a Soviet attempt "to extend its evil tentacles to Southeast Asia and carry out expansion there." But China retreated across the border and Vietnamese forces continued to occupy Cambodia until 1989, said Wikipedia.
With China, Singapore and Taiwan calling for Vietnam to protect their citizens, Vietnamese Prime Minister Nguyen Tan Dung issued an order to end the violence.
"Vietnam's appeal as a destination for foreign direct investment, as a stable location for manufacturing has certainly taken a beating," said Wai Ho Leong, a Singapore-based economist at Barclays.
Provincial police have detained 76 protesters after the riot, while almost 500 people were detained for questioning over damage to property in Binh Duong, according to local officials, said Reuters.
Beijing said Hanoi connived with those behind the riots, demanding it punish perpetrators and do more to protect Chinese citizens and property.
"What happened in recent days targeting Chinese businesses and personnel - the vandalism, smashing, looting and burning - are directly related to the Vietnamese government's indulgence and connivance toward anti-China forces and criminals," said Foreign Ministry spokeswoman Hua Chunying.
Vietnam permitted peaceful demonstrations against the oil rig but they protests grew into attacks on businesses, reflecting the resentment that lingers from the 1979 war.
A senior US official said China's "provocative" actions in maritime disputes with its neighbours are straining ties with the United States, and raise questions over how the world's two biggest economies can work together
"This is raising some fundamental questions for us about China's long-term strategic intentions," the US official told Reuters. "China's activities are straining the US-China relationship because it raises questions about our ability to partner together in Asia or even bilaterally."
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