China
Trade Wars Are a Matter of Perspective: US-China Tensions Could Boost Thai Economy
For Thailand, tensions between China and the US could actually have a positive effect

Trade wars are a natural part of politics and, in turn, economics. Although the current back-and-forth between the US and China is dominating the headlines, disputes have always had an impact on national economies.
In fact, to show the significance of political wrangling on global trade and financial markets, DailyFX has created a historical overview of trade wars. Charting the impact of liberalised trading between European nations in 1913 to Donald Trump’s 2018 tariffs, the report is a neat review (see infographic below) of how politics affects trade.
With that being the case, the history of trade wars should give us some insight into how Thailand and other parts of Asia may be affected by the US/China trade war. In the US, not all businesses have seen an uptick in revenue since during the trade war.
Despite Trump suggesting that his country is in a “very strong” position, companies such as Apple have seen stocks drop by 10%. Extrapolating from this, Dow Jones analysts currently have a bearish rating. By using the top 30 companies in the US as a barometer for national economic strength, it appears as though the trade war isn’t just hurting China.
Trade Wars Have Winners and Losers
However, if we’ve learned anything from trade wars of the past, it’s that some clouds have a silver lining. In other words, there are often positives to come out of trade disputes.
Naturally, the most important positive is that nothing lasts forever and the relationship between the US and China is likely to improve.
However, in the short-term, increased tariffs on China could push business towards other parts of Asia. As detailed by CNBC, Thailand could emerge a “winner” in the automotive industry if Chinese manufacturers are squeezed.

The US is the largest auto parts consumer so tariffs on Chinese firms will cause the top American brands to look elsewhere. One of those countries could be Thailand.
According to the Thailand Board of Investment, the country’s automotive industry has developed significantly over the last 50 years. As well as contributing 12% to Thailand’s GDP, the sector is now the largest producer in Southeast Asia and puts out more than 1.9 million vehicles per year.
Closed Doors Open New Opportunities for Thailand
With its prowess in the automotive industry set, Thailand would be the natural alternative for US manufacturers in the wake of the current trade war.
In that context, Thailand stands to win as China loses.

However, what the latest analysis demonstrates is that trade wars aren’t always bad. Economies have to continue moving forward, regardless of how they do it. This means that new doors always open as others close.
The US/China conflict has shown this but it’s always been the case throughout the history of trade wars. Indeed, if we go back to 1950, trade between the US and China was frozen.
The end result was the latter strengthened its ties with neighbouring regions while the US looked towards Europe.
Although trade wars have casualties, the fallout isn’t always as negative as the media makes it seem.
For Thailand, tensions between China and the US could actually have a positive effect, proving once again that trade wars are always a matter of perspective.
China
RCEP and China: Reimagining the future of trade in Asia
The Regional Comprehensive Economic Partnership (RCEP) could eventually usher in an era of much deeper regional integration: for corporates doing business in the region, their future success may well hinge on how adeptly they manage to navigate the evolution of Asia’s trade landscape under the RCEP.

Last month, 15 countries in the Asia-Pacific region – including the 10 member states of the Association of Southeast Asian Nations (ASEAN) as well as China, Australia, Japan, New Zealand, and South Korea – signed the landmark Regional Comprehensive Economic Partnership (RCEP) on the final day of the 37th ASEAN Summit.
(more…)China
Thailand ready to ink big Chinese-backed trade deal
The RCEP will cover all 10 Asean member states plus five partners: China, Australia, Japan, New Zealand, and South Korea and will take effect from the middle of 2021 if at least six Asean members and three partners agree to its terms.

Thailand is set to sign the world’s biggest free trade agreement with Japan, China, South Korea and 12 other Asia-Pacific countries at the 37th Asean Summit this week.
(more…)Business
Great Wall Motor (China) takes over GM factory in Thailand
The Thai production hub will become operational in the first quarter of 2021 with automobile production capacity of 80,000 units per annum.

Chinese carmaker Great Wall Motor (GWM) hosted a ceremony on November 2nd to celebrate the latest milestone in taking full ownership of Rayong Manufacturing Facility in Thailand.
(more…)-
Forex5 days ago
Leverage from Forex Brokers & How Beginners Can Benefit from It
-
National2 days ago
Human trafficking cases in Thailand hit decade low due to COVID-19
-
Economics2 days ago
Thai economy to grow 4% in 2021 following 6.5% decline in 2020
-
Banking4 days ago
Can Fintech drive a strong post-COVID-19 recovery in Asia?