U.S. surpassed China in Q1 to become the largest export market in ASEAN.

According to recent data, the U.S. has overtaken China in the first quarter to emerge as the leading export market in ASEAN.

Statistics indicate that from January to March this year, ASEAN’s exports to the U.S. amounted to US$67.2 billion, surpassing exports to China by US$57 billion. Analysts attribute this shift to the increasing procurement of semiconductors and electronic components by the U.S. from ASEAN, while China’s economic performance remains subdued.

Furthermore, Malaysia’s exports to the U.S. experienced an 8% surge in the first quarter, while exports to China witnessed a decrease of 3.3%. Arinah Najwa, director of political risk consulting firm Bower Group Asia, highlighted that U.S. companies are actively mitigating risks associated with China and diversifying their supply chains to lessen reliance on China. Malaysia, with its robust manufacturing environment, strategic location, and skilled workforce, is deemed an attractive option for this purpose.

On the other hand, in the first quarter of this year, Vietnam’s exports to the U.S. soared by 24% to US$25.7 billion, marking the most significant increase among ASEAN countries, substantially surpassing Thailand’s US$12.6 billion and Singapore’s US$12 billion.