While the scale of skilled labour required is present, even in Vietnam, the sheer scale in India may ensure competitive wages even if there is a big shift. "Escalating trade war could have more negative impact on China and the Chinese economies, than on the US. Clearly, if these tariffs go through, they almost certainly would do, because they would have no reason not to have an escalating trade war,” Geoff Dennis, emerging markets commentator, told ETNow. "India would be a relative beneficiary of this as there is limited trade links between China and India. The risk for EMs from all of this is that the dollar may rally and that could hurt all emerging markets.

Source: Economic Times May 06, 2019 05:37 UTC