Fearing escalation of US tariffs, Chinese companies are preparing for a new round of relocation

Many Chinese enterprises in northern Vietnam are worried about potential new tariffs when Donald Trump returns to the White House. As a result, some Chinese companies are considering relocating to Thailand, Cambodia, Indonesia, or Malaysia to avoid trade risks. NTU Economics Prof Tan Kong Yam said that Southeast Asia remains the top relocation choice for Chinese enterprises due to its proximity to China, lower logistics costs, and established industrial ecosystems in countries like Vietnam, Thailand, and Malaysia. Tan also pointed out that businesses must adopt diversified strategies to reduce dependence on the U.S. and explore markets in ASEAN, Europe, Africa, and the Middle East. Tan noted that Trump's potential second term may further tighten trade rules, making Southeast Asia a key destination for Chinese companies shifting production away from China.

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