NEW YORK -- Taiwan and Malaysia will suffer the most in the near term if a U.S.-China purchasing agreement goes through, while South Korea and Japan also have much to lose, a new Goldman Sachs report says.
Semiconductor exporters in Asia are particularly vulnerable if China decides to import more American products to ease trade tensions, a group of Goldman analysts wrote in a report released this week.
Taiwan would lose more than 1% of its GDP, while Malaysia would lose about 0.7%, according to the report's estimates, based on the assumption that China's "shopping list" will amount to $125 billion of American imports annually. South Korea and Japan could also lose $8 billion each.
A purchasing deal, where China promises to increase imports from the U.S., has been a key point in trade talks between Washington and Beijing, as President Donald Trump seeks to lower the ever-growing trade deficit with China, which hit a record $891 billion in 2018.