The China-U.S. trade war is and will be a major challenge for world markets in the coming years. Despite some signs of relief towards the end of 2019, the balance of power between the two leading countries will be held at trade scene as well as that of technological supremacy.
While this rivalry may have created some discrepancies between the two (China’s exports to the United States fell by 12% in the first half of 2019, and those of the United States to China by 19%), it has also created new dynamics that benefit other countries in the Asian zone.
The graph below highlights the exponential increase in imports from other Asian countries to the US market.
With China’s rising wages policy, these markets are also benefiting from the relocation of factories from the Middle Kingdom to ones that are more competitive in terms of labor costs such as Vietnam.
Can this continuing struggle for dominance benefit these new markets in the long term?