30 Jan '17, 6am

ASEAN to-do List in 2017

ASEAN to-do List in 2017

It will then not be a simple outcome of relocation of manufacturing centres from China to low-cost Vietnam, for instance, as some have rather sanguinely suggested. The supply chains to which many ASEAN exports are linked for the finished Chinese product would be broken. There will be export disruption – not just for China. There are countries in ASEAN, apart from Vietnam (90%), like Singapore (176%), Thailand (69%) and Malaysia (71%) whose exports amount to a substantial proportion of their GDP. On top of exports through China, their own direct exports to the US will also be affected, as will any relocated exports from Vietnam. There will be no winners in a trade war, no benefits to be derived from China’s apparently singular predicament. The knock-on effect will be widespread. In time, as excess capacity looks for export sales, dumping will become a problem, as will prote...

Full article: https://dinmerican.wordpress.com/2017/01/30/asean-to-do-l...

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