If a United States – China purchasing agreement goes through – Taiwan and Malaysia will suffer the most in the near term – South Korea and Japan also have a lot to lose, according to a Goldman Sachs report. It will be effecting the Semiconductor exporters in Asia are esspecialy, if China decides to import more American products to ease trade tensions. Taiwan would lose more than 1% of its GDP, while Malaysia would lose about 0.7%, according to the report’s estimates, based on the assumption that China’s “shopping list” will amount to $125 billion of American imports annually. South Korea and Japan could also lose $8 billion each.
Tsai Ing-wen, Taiwan’s president, took office in May 2016 and had an ambitious goal, namely: diversifying the economy away from the mainland and restoring its reputation as a high-tech center. She implemented a “New Southbound Policy” with the aim to have more stronger links with Southeast Asia, South Asia, Australia and New Zealand.Tsai also launched a project for an Asian Silicon Valley. It aims to support key high-tech industries, including biomedicine, defense, green energy, recycling and smart machinery.
Then Donald Trump, US President, burst on to the scene and unwittingly gave Tsai’s plans new driving force. The uncertainty generated by Trumps trade war has Taiwanese companies shifting operations back home. It also is fueling hopes that big multinationals will switch out of China and boost Taiwan’s prospects. SocMalaysia’s trade minister made an appeal for the US and China to let them feel a greater sense of “global responsibility” and “stop thinking only of themselves” as these parties try to reach an agreement to end their bitter trade war.
