Research on the Impact of Trade Wars and Protectionism on the Global Economy and South East Asia’s Coping Strategy

Abstract

This study looks at how the U.S.-China trade conflict is affecting Southeast Asia, a region that depends largely on international commerce. Since the start of the trade war in 2018, nations in Southeast Asia, such as Vietnam and Malaysia, have seen a change in foreign direct investment (FDI) and disruption of global supply networks. The region faced both possibilities and problems as a result of this transformation, with long-term worries about labour markets, environmental degradation, and sustainability offsetting short-term economic advantages. The study identifies three main problems: the FDI inflow, the deterioration of multilateral trade institutions, and the disruption of global supply networks. Various approaches are suggested in response, such as fortifying regional trade networks, encouraging sustainable foreign direct investment, and advocating for more robust international trade frameworks like the World Trade Organisation. The results highlight how important it is for Southeast Asia to create robust and sustainable economic policies in order to lessen the impact of future interruptions to global commerce. In order to further hone these techniques, future research should concentrate on gathering primary data through surveys and interviews.