“While it is true that Asean runs a widening trade deficit with China, there are nuances,” the economists say.
Is the “China+1” strategy sustainable amid Trump 2.0's tariff dynamics? HSBC seems to think so.
According to the bank’s economists Yun Liu, Aris Dacanay, Pranjul Bhandari, Aayushi Chaudhary and Madhurima Nag, Asean countries have been China’s largest trading partner since 2020, edging out the European Union. In a Dec 18 report, the economists note that bilateral trade between Asean and China hit US$984 billion ($1.27 trillion) in 2024, and is expected to be even higher this year.
