Economists pointed out that the intensified geopolitical tension between the United States and China has forced global manufacturers to seek other places in Asia as production bases. Altasia, an "Asian alternative supply chain" jointly formed by 14 countries including Taiwan, is attracting global manufacturers to move out of China.

(Photo source: Agence France-Presse, Reuters, composed by the US editors of this newspaper)

Tensions between the United States and China have intensified + China's labor costs have risen sharply, and the manufacturing industry is seeking new production bases

[Compiled Wei Guojin/Comprehensive Report] Economists pointed out that the intensified geopolitical tension between the United States and China has forced global manufacturers to seek other places in Asia as production bases, and the products of "alternative Asian supply chain" (Altasia) came into being. Altasia, jointly formed by 14 Asian countries including Taiwan, Japan, South Korea, and Bangladesh, is evenly matched with China in terms of export volume and skilled labor, and is attracting global manufacturers to migrate out of China.

Taiwan, Japan, South Korea and other countries jointly formed Altasia, and the magnetic suction manufacturing industry moved out of China

According to the report, the Altasia countries include Japan, South Korea, Taiwan, the Philippines, Brunei, Malaysia, Singapore, Indonesia, Cambodia, Vietnam, Laos, Thailand, Bangladesh and India.

Please read on...

Exports from Altasia countries to the United States totaled $634 billion in the 12 months to last September, ahead of China's $614 billion.

China's exports are focused on electronics, an important item that not all Altasia countries specialize in.

As far as skilled labor is concerned, Altasia has a total of one.

There are 5.5 billion highly educated laborers aged 25 to 54, and China has one.

Four to five billion people.

Altasia's exports, skilled labor are on par with China

According to the World Bank's latest 2018 Logistics Performance Index, China scored three out of five.

With a score of 61, it ranks 27th among the 160 countries evaluated. Among the Altasia countries, Japan and Singapore scored 4.

○Three points and four points squeezed into the top ten in the world, but Bangladesh and Cambodia took two.

Fifty-eight points, both included in the bottom half of the ranking.

The index measures the efficiency of customs, transport infrastructure and logistics regulation.

Economists point out that tensions between the US and China are not the only reason for manufacturing shifts. China's labor costs have risen sharply, far higher than those in South and Southeast Asia. Last year, China's manufacturing labor costs were 8.5 per hour.

Thirty-one U.S. dollars (TWD 254), while India, Thailand and Vietnam are less than three U.S. dollars (TWD 92).

Some electronics players had gradually moved out of China ahead of the US-China conflict, and geopolitical tensions made the move even more necessary.

The report said that China's productivity is still difficult to replicate. Altasia's diverse economy does not operate in the form of a single entity like China, and infrastructure and logistics services are also huge challenges.

However, for many companies, finding alternative production bases in China is now a top priority, so they may actively explore the opportunities Altasia presents in the coming years.

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