IMPACT OF US-CHINA RIVALRY
Mr Trump is expected to double down on trade regulations on key technologies, especially on Beijing’s access to semiconductors.
The move has benefited Southeast Asian countries, including Singapore and neighbouring Malaysia, as businesses diversify their supply chain and manufacturing activities beyond China.
However, Dr Ang cautioned wariness as Mr Trump’s hawkish stance on China could mean that countries and companies with large Chinese investments could come under similar treatment and face trade restrictions as well.
“It promises benefits for the region, but there’s also downside as the US prepares to scrutinise some of these supply chains,” he said.
Mr Chen said: “Trump’s threat of imposing universal tariffs as well as tariffs on imports from China (will) create shockwaves in the region. But there’s also a chance he might use it as a bargaining chip and try to force countries to the negotiating table.”
REGIONAL SECURITY AND DEFENCE
Analysts said geopolitical tensions in the region, particularly in the South China Sea and Taiwan Strait, are expected to heighten.
Mr Chen said he expects Mr Trump’s national security jobs to be staffed with loyalists likely to be hawkish on China.
“(This) would raise tensions in the region, hopefully not to the level of a conflict, but we’ve got to be prepared,” he added.
