The Asian economy has taken a battering during the coronavirus pandemic and growth trajectories have been rapidly revised down in 2020. On top of this, the US–China trade conflict continues and shows little sign of a return to levels of co-operation seen under US president Barack Obama’s administration, even if the November elections result in a change of president.
A solution is to jumpstart trade again within the region. Some of China’s neighbours have already benefited from Chinese companies moving their manufacturing beyond their borders to get around US tariffs, while still being able to continue exporting to the US by replacing the ‘Made in China’ tag for a more acceptable ‘Made in Vietnam’, for example. However, the US tariffs also have an impact beyond China, as companies are no longer allowed to export US technology to China for final manufacturing processes, leading many firms to look for alternatives.
