Asia’s Geopolitical Balancing Act

August 13, 2024

As rising geopolitical tensions – notably China versus the US, and Russia versus the West – reshape global trade and investment flows, much of Asia is seeking a middle ground that enables continued growth.

The latest data shows this shift is benefiting Southeast Asia and India, which have become key destinations for companies offshoring production from China (alongside Mexico).

This dynamic is also influencing the overseas expansion strategies of Korean, Taiwanese, and Japanese firms as they look to reduce supply chain risk by establishing new facilities in key markets or more cost-effective locations—India stands out on both fronts. Similarly, Chinese firms are also moving offshore to retain access to Western markets.

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