Will Chinese enterprises be able to mitigate the effects of Trump’s tariff war?

Since US President Donald Trump won the election last November, some Chinese entrepreneurs running factories in northern Vietnam have been feeling anxious. In recent years, many of them relocated to Vietnam to avoid US tariffs on China during Trump’s first term. Tan Kong Yam, an emeritus professor of economics at NTU, told Lianhe Zaobao that Southeast Asia remains the preferred relocation destination for Chinese companies even after the latest round of Trump’s trade war. Tan explained that Southeast Asia’s proximity to China helps lower logistics costs, and countries like Vietnam, Thailand and Malaysia already have comprehensive industrial ecosystems. Also, existing agreements such as the Regional Comprehensive Economic Partnership have facilitated more convenient trade relations between China and Southeast Asian countries.

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