The Development of Southeast Asian Manufacturing under the Context of Sino-US Trade Frictions

Jiaqi Qi ()
Additional contact information
Jiaqi Qi: KyungHee University, The Graduate School of Business

A chapter in Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025), 2025, pp 399-409 from Springer

Abstract: Abstract The U.S.-China trade war has triggered a significant restructuring of global supply chains, presenting Southeast Asia’s export manufacturing sector with both substantial opportunities and considerable challenges. As the United States imposed tariffs on Chinese goods, numerous foreign enterprises relocated their production to Southeast Asian countries, drawn by their lower labor costs and strategic positions in the global market. This shift has spurred local economic growth while creating new competitive dynamics in the region. This study examines the impact of the trade war on Southeast Asia’s manufacturing industries, focusing on key sectors such as home appliances, apparel, and electronics. Specifically, it analyzes the effects of three rounds of U.S. tariff increases on export orders, highlighting how national policies—such as tax incentives, special economic zones, and streamlined regulatory processes—have played a pivotal role in attracting foreign investment projects. Leveraging their low labor costs, favorable geographic locations, and steadily improving infrastructure, countries like Vietnam, Malaysia, and Indonesia have seen an influx of investment that is driving manufacturing transformation and advancement. However, significant disparities in policy support, workforce skill levels, and industrial structures have led to differing capacities among these nations to integrate into global supply chains. These findings provide valuable insights for enterprises and policymakers in developing long-term strategies to enhance regional competitiveness and resilience.

Keywords: U.S.-China trade tensions; Southeast Asia manufacturing; industrial structure; supply chain restructuring (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-748-9_44

Ordering information: This item can be ordered from
http://www.springer.com/9789464637489

DOI: 10.2991/978-94-6463-748-9_44

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().