Businesses Are Canceling Investments in Asia as Trade War Deepens
- The U.S.-China trade war is weighing more heavily on businesses operating in Asia Pacific, with companies reporting more delays or cancellation of investments than last year.
- The impact on investment was cited by 54% of firms surveyed by the American Chamber of Commerce in Singapore, up from 50% late in 2018.
- More businesses than last year are also considering readjusting supply chains away from China and the U.S.
- Over the past six months, 41% have seen a “slight” negative impact from the trade war, and 8% registered “strong” negative, while 32% reported no impact. Forty percent see the trade war deteriorating further, with 30% each saying it will stay the same or be resolved soon.
- Vietnam was heralded as a trade-war winner amid rising tariff tensions, offering a high-growth, low-cost environment for businesses to shift orders and production.