Asia has been a growing target for investments by western firms over the last decade, including both organic investment and mergers and acquisitions (M&A). However, following the introduction of tariffs between the US and China in 2019, a level of uncertainty and turbulence is now coloring investment decisions across the region.
Along with the compounding effect on trade that will undoubtedly be unleashed due to the Coronavirus (COVID-19), the aggregate FDI into the region witnessed a huge drop off from 2018 into the first half of 2019 and China saw a 58% decrease in US investment. There has been some movement away from China recently to other neighboring Asian markets or even North America, known as the “China+1” strategy.