Trade tensions between China and the US are expected to reap benefits for Southeast Asia. Tariffs would inevitably mean that manufacturers, already accustomed to selling goods on the international market, will likely move to greener pastures like Cambodia, Myanmar, Laos, Bhutan and Bangladesh, among others.

As a result, these countries will finally be able to diversify trade, improve the quality of life of their citizens, introduce new skills to the labor force and eventually move beyond just being the rice fields and bread baskets of the rest of the region.

Chinese bicycle manufacturers are shifting their plants to Vietnam, where improved bilateral relations with the US have resulted in a free-trade agreement between the two nations. Similarly, garment manufacturers like Gap, Levi’s and Zara have set up contingency plans which would allow them to move manufacturing to Bangladesh in the event their products are targeted by stricter trade regulations.

Malaysia, which hosts over 800 auto component manufacturers on its shores, will also certainly benefit from the Chinese and American firms’ demands for such products.

Asia’s GDP is expected to grow by 5.4 per cent this year, while North America and Western Europe’s GDP will grow by only 2.2 per cent and 1.7 per cent respectively.