This part has had its upsides for local economies. It’s largely worked out well so far in Vietnam, in part because many of the industries that moved, like footwear and furniture, are labor intensive and need local workers.
But Malaysia is a case study in the perils of letting Chinese manufacturing become too dominant. Malaysia’s fledging local solar industry was displaced by Chinese companies that built huge factories, employing tens of thousands of people.
Then the United States set up tariffs taking direct aim at Chinese solar exports coming via Southeast Asia. The Chinese companies were mothballed, and today, Malaysia’s solar industry is in ruins.
This sounds like a threat.
