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Creative Disruption

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Creative Disruption

Asia’s Winners in the US–China Trade War

EIU,

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The US–China trade dispute will spill over to damage some economies, but others may gain. 

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Editorial Rating

8

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

As the trade conflict between the United States and China takes hold, the global economy will feel the impacts of distorted trade flows, including rising prices and declining efficiencies. But the news isn’t all bad, according to this illuminating report from the Economist Intelligence Unit. A number of success stories could emerge in Asia, where several countries are well-positioned in three major industries to take advantage of the turmoil. This sober assessment is required reading for executives, industry analysts and trade experts.

Summary

As of late 2018, China and the United States had collectively imposed tariffs on $360 billion worth of goods. Continuing escalation of the trade dispute could eventually encompass the bulk of products exchanged between the two titans. The impacts will reverberate, affecting other nations. The trade constraints will push up world prices and create inefficiencies. Higher costs could lead to inflation, which in turn could bring about monetary tightening, dwindling investor confidence and economic slowdowns. But tariffs relocate rather than decrease trade; some countries will profit as companies secure...

About the Author

The Economist Intelligence Unit is an independent research and analysis organization.


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