Asia's emerging economies have a lot at stake if President Donald Trump delivers on his threat to slap tariffs on up to $150 billion worth of Chinese goods.
That was a major concern expressed by experts at the Asian Development Bank's annual gathering in Manila Thursday. Later that day, a U.S. delegation heads to Beijing in what will be the first formal negotiation session since the world's two largest economies announced plans for tit-for-tat tariffs.
Southeast Asian nations are seen as vulnerable to Trump's tariffs because they are a significant contributor to Chinese exports that are headed stateside.
"Across Asia, there is a deep regional value chain … So, trade tensions between the U.S. and China will have a spill over effect through this value chain," Cyn-Young Park, director for regional cooperation and integration at the Asian Development Bank's economic research and regional cooperation department told CNBC.
In a nutshell, this production network involves Southeast Asian countries providing intermediate, i.e. semi-finished goods and raw materials to China, which it then assembles into a final product to be exported to the West.