Spillover Effect of US-China Trade War: Case Study of Vietnam and Malaysia

Abstract

This paper focuses on the comparison of the spillover effects brought by the US-China trade conflict on industrialized and emerging economies classified by different sectors and research of possible policies that would improve FDI absorption abilities of emerging economies. The proposed method to solve the problem is through desk research on secondary sources and import and export data of each country provided by the World Bank. The results obtained in this research include Japan and Germany lost the most in automobile industries while Vietnam and Malaysia reaped profits from diverted demand of commodity manufacturing and foreign direct investment.