Thu, 13th Jul 2023
- Geopolitical anxieties around US-China relations and risks in the Taiwan Strait will drive supply-chain diversification over the 2020s. The fading attractiveness of China’s business environment will complement these discussions.
- South‑east Asia will be the main beneficiary of these trends, given EIU’s own assessment of the region’s generally favourable business environments. India enjoys strong latent potential, but will struggle to capture a higher degree of FDI flows in 2023‑27.
- Asia will be the world’s fastest-growing region throughout most of the 2020s. Consequently, we expect multinationals to avoid withdrawing from the region, even as geopolitical anxieties intensify, given the potential opportunities on offer.
EIU expects discussions around supply-chain shifts away from China to remain a…
