Although in general, the ongoing trade war between the United States and China is not positive for the world economy, there are certain countries that can benefit from it.
According to Nomura, Malaysia is one of these countries.
Vietnam is by far the largest beneficiary, gaining 7.9% of GDP from trade diversion, followed by Taiwan (2.1% of GDP), Chile (1.5%), Malaysia (1.3%) and Argentina (1.2%), according to the research house.
In its report to clients, Nomura points out that over the past year, Vietnam, Taiwan and South Korea have gained from US import substitution in electric apparatus for phones, parts for office and automatic data processing machines; Malaysia in semiconductors; and Korea and Mexico in motor vehicle parts.
Meanwhile, China’s import substitution has led to beneficiaries in copper (Chile), soybeans (Argentina, Brazil, Chile and Canada); gold (Singapore, Hong Kong and South Africa); natural gas (Malaysia, Australia); and aircraft (France and Germany).