If the trade war was supposed to benefit the U.S. as Trump has stated, it currently has not. Both China and the U.S. are at odds with each other doing short term and possibly long-term economic damage to both countries. It’s cost China US$35 billion in just the first 6 months of 2019. This does not mean that some other countries are not benefiting. In Myanmar alone we’ve seen an influx of Chinese investment in manufacturing. Myanmar Business Answers has met with multiple Chinese groups looking to invest outside of China because of the trade war, and mostly in manufacturing.
The big winners are not Myanmar sadly, Myanmar hasn’t put enough investment in key aspects of the infrastructure yet mainly electricity. According to the United Nations Conference on Trade and Development (UNCTAD), the US$35 Billion lost by China has brought substantial benefits for Taiwan ($4.2 billion, 2019), Mexico ($3.5 billion, 2019), European Union ($2.7 billion), and Vietnam ($2.6 billion). All in just the first 6 months of 2019.
The losers are the Chinese Manufacturers. The UN agency noted that Chinese Exporters are starting to bear the costs but lowering export prices. The hardest-hit Chinese manufacturing sector has been computers and other office machinery, and communications equipment. In these areas China has declined by $15 billion. Other areas are chemicals, furniture, precision instruments and electrical machinery. These also have been hit substantially by the trade war.
Written By- Charles Ryan Russell (CEO of Myanmar Business Answers)
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