Press Release (ePRNews.com) - TAIPEI CITY, Taiwan - Nov 26, 2018 - Although, on a wider scale, Asia stands to lose big in the raging trade war between the world’s two largest economies, Macmillan Jones analysts say that some Asian countries could actually benefit.
As demand for heavily-taxed Chinese products begins to wane and U.S. companies rush to find import substitutions, other Asian countries are poised to step into China’s shoes. Malaysia is clearly benefiting the most from the increased demand from U.S. consumers, followed by Thailand, Pakistan, Japan and the Philippines.
Malaysia is well-positioned to meet the demand for electronic goods as well as liquefied natural gas and communication equipment. Japan will benefit most from the increased demand for automotive vehicles.
China will likely look to Malaysia to meet its demand for auto parts and fill the gap left by U.S. parts now subject to retaliatory tariffs.
For those foreign companies choosing to relocate their production operations from China, Vietnam is emerging as a clear favorite and is benefiting from the business picked up from its northern neighbor.
Macmillan Jones analysts say that even Chinese companies are weighing the benefits of moving their production to countries like Vietnam. China has long outsourced a portion of its production to Vietnam and spent more than $35 billion in foreign direct investment in Vietnam last year. But the increasing strain of the trade dispute with the U.S. is encouraging a far greater number of Chinese firms to move their production operations south.
With no signs of the U.S.-Sino trade war abating, Macmillan Jones analysts say that while there will not be a mass exit from Asia, a rebalancing will occur, leaving many southeast Asian countries to benefit from a new order. Source :