China may be at odds with several Southeast Asian nations over territorial claims in the South China Sea, yet when it comes to economic policy, what’s good for China is also good for its neighbors.
Here’s how China’s intensifying efforts to stimulate Asia’s No. 1 economy could help Southeast Asian exports, currencies and tourism.
China was the largest single trading partner of the Association of Southeast Asian Nations in 2013, according to the latest data available.
Singapore, Malaysia and Vietnam stand out as the three economies with the highest direct trade exposure to China, while that of the Philippines and Indonesia is more marginal, said Glenn Maguire, a Singapore-based economist at Australia & New Zealand Banking Group Ltd.
“We continue to focus on the likelihood of China stimulus aligning with a return of the U.S. consumer, a potent combination for the open trading economies of Southeast Asia that should see exports and production inflect upwards in the second half of the year,” he said.
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