A Chinese worker checks wheels on Jan. 28 at a factory in Lianyungang, Jiangsu province. Companies looking to relocate outside China have been expanding into Southeast Asia for the past several years.
Editor's Note: This assessment is part of a series of analyses supporting Stratfor's upcoming 2019 Second-Quarter Forecast. These assessments are designed to provide more context and in-depth analysis on key developments over the next quarter. As the global trade and investment picture continues to evolve, Southeast Asia has gained momentum as a top destination for investors seeking lower-wage manufacturing labor, high returns on capital and infrastructural investments, and opportunities to profit from the region's sizable and fast-growing domestic markets. The ongoing trade battles between the United States and China are set to push even more manufacturing investment into the region. The surge will be unevenly distributed, with some countries gaining more than others in the long term. However, in the short term, Southeast Asia's emerging economies will all have to contend with the supply chain disruptions caused by the U.S.
