""We may buy fewer 'Made in China' goods going forward, but more products will have internal components manufactured in China," says Jeongmin Seong, a partner at the McKinsey Global Institute (MGI)."
""China stepped up to diversify its trading partners, and mostly with emerging economies," explains Seong, who is also the author of a new MGI report on global trade."
""ASEAN played the role of matchmaker for the global supply chain and kept it from breaking up," Seong says. "ASEAN's exports grew about 14%, which is more than two times as fast as the global average.""
China is becoming a major supplier of industrial components, such as smartphone parts and lithium-ion batteries, for final assembly in Southeast Asia. Exports of intermediate goods from China rose by 9%, while consumer goods exports fell by 2%. The U.S. reduced its trade with China by 30% due to tariffs, leading China to diversify its trading partners, particularly with emerging economies. ASEAN countries are benefiting from this shift, with their exports growing significantly as they adapt to changes in global supply chains.
Read at Fortune
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