IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-968-1_29.html

Battle of the Giants: Inspecting How the Us-China Trade War is Shaking up FDI Inflows in the Asean+3

In: Proceedings of the 13th International Conference on Business, Accounting, Finance and Economics (BAFE 2025)

Author

Listed:
  • Cheah Wan Ching

    (Universiti Tunku Abdul Rahman, Jalan Universiti)

  • Chuah Jolin

    (Universiti Tunku Abdul Rahman, Jalan Universiti)

  • Ting Yi Ernn

    (Universiti Tunku Abdul Rahman, Jalan Universiti)

Abstract

This study investigates how tariffs and trade liberalization affect FDI inflows to ASEAN+3 economies, with a particular focus on sectoral inflows in manufacturing and services. The analysis incorporates the role of global value chain (GVC) integration in the context of U.S.–China trade tensions. The results indicate that while tariffs exert limited influence on overall FDI inflows, their effects are more pronounced within the manufacturing sector. Conversely, trade liberalization consistently promotes FDI across both total trade and GVC contexts, underscoring its central role in sustaining investment flows. The findings further reveal divergent sectoral responses to rising U.S. tariffs. Manufacturing FDI increases as multinational firms relocate production to cost-competitive ASEAN+3 economies, whereas services FDI contracts due to its dependence on globally dispersed demand and value-added linkages. Overall, the findings contribute to understanding how trade tensions reshape FDI patterns, underscoring the importance of trade liberalization and GVC integration in sustaining FDI inflows across ASEAN+3.

Suggested Citation

  • Cheah Wan Ching & Chuah Jolin & Ting Yi Ernn, 2025. "Battle of the Giants: Inspecting How the Us-China Trade War is Shaking up FDI Inflows in the Asean+3," Advances in Economics, Business and Management Research, in: Thurai Murugan Nathan & Abdelhak Senadjki & Hemaniswarri Dewi Dewadas & Siti Nur Amira Othman & Ravi (ed.), Proceedings of the 13th International Conference on Business, Accounting, Finance and Economics (BAFE 2025), pages 424-439, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-968-1_29
    DOI: 10.2991/978-94-6463-968-1_29
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-968-1_29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.