Economists' Pick - Highlight
24 March 2017
US President Donald Trump has vowed to make significant changes to US trade policy, and several developments since his inauguration on 20 January appear to be consistent with that pledge. Although Trump has looked increasingly pragmatic, he doesn’t hold back from China-bashing. In all likelihood, intensifying trade conflicts between the US and China are unavoidable, but a fully fledged trade war is less probable.
Vietnam has number of favourable attributes, including a youthful labour force and relatively low production costs. FDI in Vietnam is not just geared towards the production of labour-intensive goods, but also more sophisticated products like IT equipment and other electronic items. But such production is largely processing activities by nature. As Vietnam still lacks supporting industries, expansion in processing production has elicited vast demand for a variety of production inputs.
Sluggish trade made for a subdued mood among exhibitors at Chicago's JF&A jewellery show. There were some bright spots, though, with many buyers favouring simple pieces worn several at a time, creating a distinct layered effect.