“Focusing on Establishing Manufacturing and Investment Bases Outside of China”
(Seoul=Yonhap News) Reporter Lee Seul-gi – As the second Trump administration in the United States is set to begin, six major Asian countries, including Vietnam, Malaysia, Indonesia, Thailand, India, and Japan, are keenly observing whether universal tariffs will be imposed.
These major Asian countries are concerned about the high tariff policy and regulations on rerouting exports through China, which were part of President-elect Trump’s election promises. Despite these concerns, they are focusing on solidifying their positions as manufacturing and investment bases outside of China within Asia.
The Korea Trade-Investment Promotion Agency (KOTRA) released a report on January 15th titled “Trends and Implications for Major Asian Countries on the Occasion of the U.S. New Government Inauguration,” which includes this topic.
According to the report, the six Asian countries, which have a high dependency on exports to the U.S., are closely monitoring the economic impact of whether universal tariffs will be imposed.
In particular, Southeast Asia and India, which have seen an increase in investment from Chinese companies, are expressing concerns about the U.S.’s potential move to strengthen rerouting export regulations.
Nevertheless, amid such uncertainties and concerns, these countries are also racing to enhance their industrial competitiveness and explore new opportunities for cooperation, according to the report.
Vietnam is preparing to establish an artificial intelligence (AI) research and development center with Nvidia and develop satellite communication collaborations with SpaceX.
Malaysia is strengthening its position as a semiconductor supply chain hub, expanding tariff benefits for companies using local components, and improving local spending conditions.
Indonesia is actively pursuing foreign investment in the clean energy sector, with expectations for new cooperation opportunities in the renewable energy sector.
Thailand aims to be a regional hub for the digital economy, accelerating the adoption of advanced technologies such as cloud computing and AI, thereby expanding the digital transformation market.
India considers the inauguration of the U.S. new government as an “opportunity” even in the face of potential universal tariffs.
This is because India sees an opportunity to expand its role as a new global manufacturing hub following China.
Japan is concerned about potential tariffs on the automotive industry, but is pursuing early summits and seeking diplomatic solutions to find a breakthrough.
Lee Ji-hyung, head of KOTRA’s Economic and Trade Cooperation Headquarters, stated, “The changes in the Asian market due to the inauguration of the U.S. new government call for new strategies for Korean companies to enter the market,” adding, “We will provide comprehensive support to enhance competitiveness by strengthening local technology cooperation, expanding participation in value chains, and proactively entering new growth areas.”