As rising geopolitical tensions – notably China v US but also Russia v the West – shape global trade and investment flows most of Asia is looking for a middle ground that supports unfettered growth in trade and investment.
There is no doubt in the latest trade and investment flow data that this is benefiting Southeast Asia and India, as both are prominent locations for offshoring production from China (as is Mexico).
It is also shaping the overseas expansion of industry from Korea, Taiwan, and Japan, as their companies look to mitigate supply chain risk in China with new facilities in key markets or alternative low-cost production sites (India can win on both).
The same logic applies to Chinese firms, who are moving offshore in the hope of securing access to Western markets.
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