KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
President Donald Trump’s renewed tariff war may be reshaping global trade in ways that everyday investors can’t ignore. According to research by S&P Global, the pressure is accelerating China’s pivot toward the Global South — a group of developing economies across Southeast Asia, Latin America, the Middle East, and Africa.
China’s Trade Shift Is Already Underway
Over the past decade, China’s exports to Global South nations have doubled, far outpacing growth to the US (+28%) and Western Europe (+58%).
The momentum has only strengthened since Trump’s first term, as Chinese companies search for new markets amid a slowing domestic economy and higher US tariffs.
Today, China’s trade with its 20 largest Global South partners equals about 20% of those countries’ GDP, making Beijing a central force in their economies.
Sectors and Companies to Watch
Chinese firms are building new manufacturing hubs abroad, with a focus on:
Electric vehicles (EVs)
Electronics
Infrastructure projects
That means investors should keep an eye on:
Chinese EV makers expanding into Latin America and Southeast Asia.
Consumer electronics players setting up supply chains outside of tariff-hit regions.
Infrastructure and construction firms winning contracts in Africa and the Middle East.
Beijing’s Diplomatic Push
China isn’t just trading more — it’s also cutting deals to smooth the path:
In June 2025, President Xi Jinping announced China would eliminate import tariffs on nearly all African nations.
Beijing is actively signing trade deals with Latin America and Southeast Asia, cementing its role as a trade partner of choice for developing economies.
Risks to Watch
This isn’t without challenges. Local industries in developing countries are starting to push back against cheap Chinese imports that disrupt domestic businesses. Political resistance in these regions could slow China’s expansion, though S&P Global believes the overall trend will continue.
Why It Matters for Investors
Trade Diversification: China’s pivot reduces its dependence on the US and Europe, making the Global South a bigger driver of global growth.
Investment Opportunities: Expect emerging market ETFs, Chinese EV stocks, and infrastructure-linked playsto benefit as “South–South trade” strengthens.
Strategic Shift: More than half of China’s trade surplus now comes from the Global South (vs. 36% with the US and 23% with Europe). That makes developing markets a central piece of China’s economic survival strategy.
Bottom Line for Retail Investors:
Trump’s tariffs may be hurting China’s exports to the US, but they’re also forcing Beijing to deepen ties with the Global South. This shift could create long-term investment opportunities in emerging markets, especially in sectors like EVs, electronics, and infrastructure. Keep an eye on Chinese multinationals expanding abroad — they may become the next wave of global leaders.
Comments
Post a Comment