The trade war between the US and China is benefiting countries like Vietnam, Cambodia, Myanmar and Bangladesh. The massive outflow of production from China is going to them. While outerwear is moving into Myanmar and Vietnam, sportswear and bottoms are moving into Cambodia. Inspection and audit demand in Vietnam, Indonesia and Cambodia grew 21 per cent, 25 per cent and 15 per cent year over year in the first half of 2019. There has also been an increased general outflow into Bangladesh. Some emerging low-cost African nations have also witnessed a slow, but significant, production volume gain.

But all of this doesn’t mean one should count out China. While it may have been weakened in the battle, the country is still holding strong. In fact, demand for inspections and audits in China from businesses elsewhere in Asia grew 33 per cent year over year while demand from Eastern Europe and Russia and the Middle East grew 22 per cent and 14 per cent. Although China manufacturing has lost ground to other countries, its reign as a manufacturing powerhouse is far from over. E-commerce sellers, in particular, remain very dependent upon China manufacturing because of its ability to offer flexible minimum qualities and shorter lead times.