Asia’s Economic Resurgence Shifts Trade Policy Landscape for Potential Trump Return

The article highlights how several countries in Asia beyond China have experienced significant economic growth in the past decade, leading to a shift in the trade policy circumstances facing former President Donald Trump should he win the upcoming election. While Trump initiated a direct trade war with China during his previous term, current President Joe Biden’s administration has maintained tariffs on Chinese goods and enacted legislation to onshore manufacturing and move supply chains out of China’s influence. The increased skepticism towards business ties with China has resulted in measures like the Inflation Reduction Act and the CHIPS and Science Act being passed, aimed at promoting domestic manufacturing and reducing dependence on China. Experts suggest that the US would have been better positioned to counter China’s aggression in the South China Sea had the Trans-Pacific Partnership (TPP) been implemented, as it would have strengthened America’s economic ties in the region. However, analysts caution that the US’s absence from the TPP hurts its diplomatic standing and that greater economic presence in Southeast Asia would signal a stronger commitment. Meanwhile, China has been building closer trade and investment relations with its neighbors, providing benefits that these countries perceive as beneficial. The article concludes that the US needs to regain economic ground in the region to maintain a competitive edge over China.