Please disable your Ad Blocker to better interact with this website.

Image Image Image Image Image Image Image Image Image Image

Affluent Christian Investor | June 27, 2022

Select a Page:
Select a Page:
Scroll to top

Top

Email Featured
No Comments

Trade War Moving Jobs From China To… Vietnam

President Trump with Prime Minister of the Socialist Republic of Vietnam, Nguyen Xuan Phuc.

If you’re an investor who is interested in Asia, but worried about tariffs, it’s important to know that the trade war is not hitting every Asian country in the same way, and that some emerging markets have actually benefitted as corporations try to avoid the tariffs imposed on China.

A recent piece from Statista shows that while imports from China have fallen, imports from emerging Asian markets have gone up. The international investment index I work on, VIEQX, was overweight in emerging Asia as of January 31st, 2019.

(Source: Statista)

While imports from Malaysia had fallen slightly, a report from the Wall Street Journal lists Malaysia along with several other emerging Asian economies as having benefited from manufacturers pulling out of China. But the American manufacturers in question aren’t, for the most part, moving production to the United States. They’re moving it to other emerging markets in Asia.

“Imports from China fell 12% in the year through May […] the biggest decline since the financial crisis a decade ago. The biggest beneficiaries of that decline have been other countries in Asia where production costs are low, such as Vietnam, India, Taiwan and Malaysia  […] There is little evidence, though, of U.S. manufacturers bringing production from China back to the U.S., a move the Trump administration hoped the tariffs would encourage.”

At the beginning of the year, VIEQX was underweight China, and overweight in Malaysia and South Korea compared to a cap-weighted index.

China might very well have suffered from the trade war, but that doesn’t mean the entirety of emerging Asia is a bad investment. So far, this is a trade war that has focused on China, and as both the Statista and Wall Street Journal reports show, several Asian countries are seeing their exports to the US grow, as American manufacturers try to avoid tariffs.

 

 

Originally published on Townhall Finance.

 

Join the conversation!

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.

Trending Now on Affluent Christian Investor

Sorry. No data so far.

Right Report

Watch As Bodycam Shows Naperville Police Officer Shoot Man As He Runs At Him With Axe
Great American Outdoors
CA Working on New Gun Control Plan to Deny Gun Permits for Political Conservatives
CA Working on New Gun Control Plan to Deny Gun Permits for Political Conservatives
Hunter’s Voicemail to Biden is Damning
The Black Sphere
Hunter’s Voicemail to Biden is Damning
*NEW* BREAKING NEWS FROM BALTIMORE
America's Freedom Fighters
*NEW* BREAKING NEWS FROM BALTIMORE
How Leftists CRIPPLE the Next Generation
The Black Sphere
How Leftists CRIPPLE the Next Generation

What We’re Looking At Today

  • Full video: Jordan Peterson on the Channel 4 Controversy and Philosophy of "How to be in the World"
    January 28th, 2018
  • Be Grateful for the Intelligent Design of Your Eyes
    December 23rd, 2017
  • TAX REFORM: The Most Important Things You Need to Know
    December 22nd, 2017
  • What Is 6th Gear? » Intermittent Fasting And Keto
    December 18th, 2017
  • DiscoveryInstitute
    December 7th, 2017
  • The King’s Choice – SAMUEL GOLDWYN FILMS
    October 12th, 2017

    • Follow Us

    Facebooktwitterrss

    Like us on Facebook

    Affluent Investor

    The Affluent Mix

    Become An Insider!

    Sign up for Affluent Investor's free email newsletter and receive a free copy of our report, "The Christian’s Handbook For Transforming Corporate America."

    Send this to a friend