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Visitors are looking at the city skyline from a park in Kuala Lumpur on September 30, 2021. (Photo by Mohd Rasfan / AFP)
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The developing markets found themselves among a rock and a rigid place among a trade war between China and the United States, but there is another way, but they support themselves.
“Southern East Asian countries have to talk to a kind of soft landing point in Malaysia, including the United States, Ang Kian Ming, the former International Minister of Commerce and Industry of Malaysia.
Southeast Asia is particularly sensitive to the global trade war. Goldman Sachs, saying that small export-oriented economies are most exposed to tariff tugs, reduced growth forecasts for the Asian-developing markets.
The 2025 GDP forecast for the Bank’s Vietnam is more than 5.3% – Goldman is much lower than 6.5% of consensus calculations. The bank expects Malaysia to increase by 3.8% (compared to 4.7% compared to 4.7% compared to 4.7% compared to 4.7% next year.
Was among the nations of Southeast Asia hits the hassle US President Donald Trump’s “Freedom Day” announced. A then will be hit by tariffs up to 49% 90-day temporary reduction In all countries (Bar China) is raised up to 10% (bars).
This shows that the United States is not only a strategic partner, and the United States has not only a strategic partner and has a very important role in the average term growth and developmental purposes for the Asian economy.
Chinese President Xi Jinping Vietnam, Malaysia and Cambodia visited the beginning of this month To introduce Beijan as a column of stability and increase connections within the region. He also called on the Global South the “to protect the common interests of developing countries.”
And it seems like that happens.
UN Commercial and Development (UNCTT) Secretary General Rebeca Grinpan, this month reported this month to this month.
“An interesting indicator for the last year, in this century, south-south trade has already grew faster than north-northern trade.” “Thus, I think the south-south trade, I think it will receive a new dynamism due to the new US trade policy”
ASEAN Prime Minister Anwar Ibrahim and ASEAN’s current rotating chair, this feeling reflected this feeling, calling out more trade and more economic integration in the ASEAN investment summit in early April.
There are no easy solutions
In the absence of “easy solutions”, developing economies, different approaches to reduce the impact of US tariffs, Lavina Venkatswaran, an economist in the OCBC, is expected to start different approaches to reduce the facility.
“In the near future, the authorities will have to hit financial and monetary products to ensure reverse cyclical support to the affected sectors of the economy. Medium-term, officials need to diversify trade and investment partners,” he said.
The so-called “China + 1” strategy still helps to be the average term. Many export-oriented southeastern Asian economies, during economic strengthening during the first Trump Office produced by companies, was great beneficiary.
For example, according to the World Bank, the World Bank, the export of goods and services in 2018, before applying 55.5% of the gross domestic product, this figure increased to 66.9% before applying the first Chinese tariffs.
Miguel Chanco, an Asian economist, emerging in the head, macroeconomics in Pantheon, agreed, It says that these markets are more attractive than China, such as export manufacturers in the long run.
“EM Asia, a former Chinese economy (China), which has a large number of sales of these tariffs for a long time, has nothing to do to eliminate the competitiveness of labor expenditures,” he said, “he said. “New supply chains will not be created in one night.”
