US-China Trade War Spills Into Third Countries

Key Takeaways

• As China ramps up efforts to deepen regional economic partnerships, the United States is exerting pressure on trade partners to reduce exposure to China.
• These initiatives demonstrate the growing strategic importance of third countries in the context of supply chain connectivity and rules of origin.
• US-China competition in third countries will not only make hedging between the two economies more difficult but also make the global trade landscape more complex for multinational firms.