China

Russia’s invasion of Ukraine has further dampened the economic prospects for developing countries in Asia, meaning lower economic growth and higher poverty. In the past few days, some countries in Asia have been witnessing significant local economic stress and political turmoil, bringing further uncertainty to the region.

China-bound export growth accelerated in the latter half of 2020; in 2019, 40% of the top US-destined exporting firms in China were from Taiwan. To escape dependence, Taiwan’s long-standing electronics intermediates trade with China may need to be re-routed.