Bain Says US-China Trade War Could Benefit South East Asia

The trade war between the Washington and Beijing is pushing many global companies to rethink the manufacturing and fabrication work they now do in China — and a bloc of Southeast Asian countries stands to benefit tremendously, according to a senior partner at consulting firm Bain & Co.

In the short term, there will be an adverse effect on the region as an exporting base for the world, and for the U.S. in particular, Satish Shankar, managing partner for Southeast Asia, told CNBC’s “Squawk Box” on Friday.

“Certain intermediate exports that go into China, and then onto the U.S., are going to be impacted in industries such as textiles and electronics,” he said. “However, in the long term, we feel pretty confident that ASEAN is a very attractive alternative supply chain base for companies looking to diversify away from China.”

The Association of Southeast Asian Nations (ASEAN) is made up of 10 countries in the region including Singapore, Thailand and Vietnam.

Bain predicted that as companies consider moving their supply chains into Southeast Asia, small and medium enterprises in the region will adopt more technologies into their daily operations that could potentially create a $1 trillion opportunity.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza