Proceedings of the 13th International Conference on Business, Accounting, Finance and Economics (BAFE 2025)

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Battle of the Giants: Inspecting How the Us-China Trade War is Shaking up FDI Inflows in the Asean+3

Authors
Cheah Wan Ching1, Chuah Jolin1, *, Ting Yi Ernn1
1Universiti Tunku Abdul Rahman, Jalan Universiti, Bandar Barat, 31900, Kampar, Malaysia
*Corresponding author. Email: iamjolin@hotmail.com
Corresponding Author
Chuah Jolin
Available Online 28 December 2025.
DOI
10.2991/978-94-6463-968-1_29How to use a DOI?
Keywords
FDI Inflows; Trade Liberalization; Global Value Chain
Abstract

This study investigates how tariffs and trade liberalization affect FDI inflows to ASEAN+3 economies, with a particular focus on sectoral inflows in manufacturing and services. The analysis incorporates the role of global value chain (GVC) integration in the context of U.S.–China trade tensions. The results indicate that while tariffs exert limited influence on overall FDI inflows, their effects are more pronounced within the manufacturing sector. Conversely, trade liberalization consistently promotes FDI across both total trade and GVC contexts, underscoring its central role in sustaining investment flows. The findings further reveal divergent sectoral responses to rising U.S. tariffs. Manufacturing FDI increases as multinational firms relocate production to cost-competitive ASEAN+3 economies, whereas services FDI contracts due to its dependence on globally dispersed demand and value-added linkages. Overall, the findings contribute to understanding how trade tensions reshape FDI patterns, underscoring the importance of trade liberalization and GVC integration in sustaining FDI inflows across ASEAN+3.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 13th International Conference on Business, Accounting, Finance and Economics (BAFE 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
28 December 2025
ISBN
978-94-6463-968-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-968-1_29How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Cheah Wan Ching
AU  - Chuah Jolin
AU  - Ting Yi Ernn
PY  - 2025
DA  - 2025/12/28
TI  - Battle of the Giants: Inspecting How the Us-China Trade War is Shaking up FDI Inflows in the Asean+3
BT  - Proceedings of the 13th International Conference on Business, Accounting, Finance and Economics (BAFE 2025)
PB  - Atlantis Press
SP  - 424
EP  - 439
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-968-1_29
DO  - 10.2991/978-94-6463-968-1_29
ID  - Ching2025
ER  -