Will Trump’s chip tariffs tilt the balance for China in Southeast Asia?

US plans to impose 100 per cent of tariffs on imported chips are a heavy blow to South-East Asia’s chip industry and could push the region closer to China, according to observers. And while Southeast Asian countries had been “cautious by nature” about taking sides between China and the US, there was a limit. However, there is no sign that Asean is about to give up its neutrality, according to Dylan Loh, assistant professor in the Public Policy and Global Affairs Programme at Singapore’s NTU. “US tariff pressure does present an opportunity for China to strengthen its economic ties in the region, insofar as China is positioning itself as a reliable partner through trade agreements and investment. That said, this alone will not portend any major shift or alignment with China – we do not see clear evidence of this,” Loh said.

- Similar story in The Star (Malaysia), 9 Aug

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