Updated: Dec 5, 2019
The China-US trade war has created a lot of discussion in the past few months, but surprisingly it has opened the door to the potential of investing in ASEAN countries. Thailand, in particular, has been a leading beneficiary during this trade war as the Thai Baht has appreciated more than 6% against the dollar. As the trade war has intensified, companies like Harley Davidson have started the process of moving production to Thailand. The results of this shift were a 7.6% increase on year-on-year retail sales growth for Harley Davidson. It is predicted that if this stalemate continues, many other companies will likely look to relocate to Southeast Asian countries for production. Other ASEAN countries benefiting from this trade war include Malaysia and Vietnam as both have had an increase in exports as a result of the trade war. Vietnam has increased exports in phone parts, furniture, and automatic data processing machines and Malaysia in electronic integrated circuits and semiconductor devices.
This trade war presents a unique opportunity to analyze the political and economic factors that play into the decisions both the United States and China have to make. In light of this news, the trade war increases the awareness of the enormity of goods being exchanged cross-culturally and how international relations play into the diplomacy of international politics.
To learn more, check out these links: https://www.cnbc.com/2019/11/05/thailand-is-a-leading-beneficiary-of-the-us-china-trade-war-stanchart.html