Chinese enterprises hoping to use Southeast Asia as a back door into the US market will have to reassess their investment strategies, a former central bank adviser warned, saying US president-elect Donald Trump “will certainly escalate tariffs” on shipments originating there.
Li Daokui, a professor of economics at Tsinghua University, made the comments as many Chinese investors ponder increasing their stakes in the region. As domestic competition intensifies and Trump prepares to take office on January 20, one investor explicitly asked Li about the issue at a forum organised by the university on Monday.
“It’s fine if your company wants to cater to local demands, such as the Vietnamese market, which boasts good potential for economic growth and domestic consumption,” said Li, who paid a visit to Vietnam in late November.
Li is also a former member of the Chinese People’s Political Consultative Conference, the country’s top political advisory body.
“However, if your aim is to export to the US via entrepot, then you may have to reconsider,” he warned.
Vietnam is one of the most logical choices for Chinese exporters looking to transit their goods to the United States via an alternative point of origin. Mexico, another popular choice due to its proximity, has already received explicit threats of hefty tariffs.