While China-Western Trade Tension Increases, China-ASEAN Trade Increases, with US$616bn Surge Projected

• 22 January 2024
• Construction Focus
• 1216 Views

In the face of persistent trade tensions and escalating barriers between China and the West, a new analysis by Boston Consulting Group (BCG) forecasts a substantial surge in trade between China and the Association of Southeast Asian Nations (ASEAN). According to a zawya.com report on 9 January 2024, this burgeoning economic partnership is poised to reach an impressive US$616 billion in the coming decade.

BCG emphasises that China, as the world’s premier exporter of manufactured goods, remains resilient in navigating global trade dynamics. The consultancy notes that any disruption in trade between China and the West will likely redirect towards alternative avenues, highlighting China’s adaptive economic prowess.

While trade tensions between China and the United States are anticipated to witness a substantial decline, with a projected contraction of US$197 billion by 2032 from its 2022 level, the impact on China’s trade with the European Union (EU) is expected to be more measured, continuing to grow albeit at a slower pace compared to the global average.

The evolving global trade landscape also presents opportunities for Southeast Asia and India, with ASEAN’s global trade anticipated to surge by US$1.2 trillion and India’s expanding by over US$390 billion, as per BCG’s insightful analysis.

• Analysis
• Economy and Finance