UNITED STATES, WASHINGTON (OBSERVATORY) — Over a year ago, a trade war broke out between China and the United States, and economists from Japan’s Nomura Investment Bank compiled a list of countries that benefited from the trade war.
If earlier importers of China and the USA bought goods and products from each other, now they are forced to look for alternative sources of supply that will not be subject to tariffs.
Below we will talk about 10 countries that have benefited from a trade war between the United States and China.
Experts agree that at the moment, Vietnam has become the largest beneficiary of the trade war between the United States and China. According to Nomura experts, as a result of the trade war, the country’s GDP grew by 7.9%.
Analysts note that importers seek to find alternative sources of goods that they used to buy without tariffs. In particular, now in Vietnam they are buying spare parts for telephones and automatic data processing machines.
Chile also became one of the countries that benefited from a trade war between the two strongest economies in the world.
According to Nomura experts, in Chile, exporters began to sell more goods to China, which positively affected the country’s trade balance and led to an increase in GDP.
In particular, Chile supplies copper ore and soybeans to China.
Malaysia ranks third among the economies that have benefited from trade disagreements between the US and China.
Malaysia has increased exports to China, which has a positive effect on the state of the economy in the country.
In particular, the supply of electronic spare parts and semiconductor devices has increased.
Argentina was among those countries that were able to increase exports to China, in particular Argentina supplies soybeans to China.
Experts recall that US tariffs on Chinese goods worth $ 250 billion rose to 25%.
At the same time, US President Donald Trump threatens to raise tariffs on the remaining goods in the amount of about $ 300 billion.
In response, Beijing also raised tariffs on the import of American goods by billions of dollars.
5. Hong Kong
Hong Kong is a special administrative region of China, one of the largest financial centers in Asia and the world.
The Central People’s Government of China takes over the defense and foreign policy of the territory, while Hong Kong reserves control over legislation, the police, the monetary system, duties and immigration policies, and also retains representation in international organizations and events.
At the same time, as analysts of the Japanese bank note, Hong Kong was also among the beneficiaries of the trade war between the United States and China.
Mexico supplies motor vehicles to China. Export has grown, which has a positive effect on the economic situation in the country.
At the same time, experts at Nomura Bank warn that, despite the benefits that third countries receive from the trade conflict between the US and China, it is worth considering the situation around the trade war more widely.
7. South Korea
As the compilers of the rating emphasize, around the trade war between the United States and China, there are many factors that can have a negative impact on third countries.
Nevertheless, at the moment, South Korea has also been among the countries that benefit from the trade war due to the fact that they have become alternative sources of imports of goods under tariffs.
In particular, Korea supplies electrical appliances.
Singapore is an important financial and economic center not only in Asia, but throughout the world. The country also experienced economic growth due to the trade war between the United States and China.
Nevertheless, the authors of the study emphasize that a trade war can have negative consequences.
In particular, such consequences include holding back investment plans due to trade uncertainty, as well as a drop in US demand.
Brazil became one of the countries that managed to increase exports to China due to the fact that the United States raised tariffs on similar goods.
In particular, we are talking about soybeans, cereals.
Closes the top ten beneficiaries Canada, the closest neighbor to the United States. The authors of the study emphasize that Asian countries have benefited from US tariffs on Chinese goods.
And the beneficiaries of Chinese tariffs on American goods are countries located in various regions of the world, mainly on the American continents.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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