May 27, 2021
The United State’s trade war with China shifted lots of manufacturing from China to other parts of Southeast Asia, specifically Vietnam and India. These moves were meant to curb tariff costs or restrictions but COVID-19 could be changing things. Cases are spiking in Southeast Asia, most prominently in India and Vietnam, and this could put supply chains on the move back to China. Foxconn, a major Apple supplier was forced to shut down its facilities it recently moved to due to COVID. More importantly, it could pause developing supply chains in India and Vietnam because travel is locked in the region. The situation could benefit China but that depends on how long the outbreak in India and Vietnam lasts. If these factories resume, Chinese exports will slow down in Q2 and Q3, but if they continue China could see annual export growth anywhere from 20-30%.
FINSUM + Magnifi: Chinese economic growth has been strong and much of that is on the back of exports. How long COVID continues in SEA will be critical for the Chinese economy.
Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of May 2021, 350,000+ users with $500+ Billion in Assets Under Influence, have used Magnifi over 2,000,000 times. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide brokerage or custody services.]