[chartist kao]

There are several reasons why Chinese firms may have moved some of their operations to Southeast Asia in the aftermath of the COVID-19 pandemic:

Diversification of supply chains: The pandemic highlighted the risks of relying on a single country or region for supply chain inputs, as disruptions in one area can have ripple effects throughout the global economy. Some Chinese firms may have moved some of their operations to Southeast Asia in order to diversify their supply chains and reduce their dependence on China.

Lower labor costs: Labor costs in Southeast Asia are generally lower than in China, which may make it more attractive for Chinese firms to locate some of their operations there. This can help to reduce costs and improve profit margins.

Access to new markets: Southeast Asia is home to a large and growing consumer market, which may be attractive to Chinese firms seeking to expand their customer base. Additionally, Southeast Asia has a number of free trade agreements with other countries, which can provide Chinese firms with access to new markets.

Geopolitical considerations: The US-China trade war and other geopolitical tensions may have prompted some Chinese firms to relocate some of their operations to Southeast Asia in order to mitigate risks related to trade and investment restrictions.

Overall, while the specific reasons for Chinese firms moving to Southeast Asia may vary, the trend is likely driven by a combination of economic, strategic, and geopolitical factors.