The trade balance is one of the most important economic indicators for Asian economies, many of which are export-driven.

Asian Trade Profiles

CountryTrade BalanceKey Exports
ChinaLarge surplus (~$800B)Electronics, machinery, textiles
JapanVariableAutomobiles, electronics, machinery
South KoreaSurplusSemiconductors, ships, petrochemicals
TaiwanSurplusSemiconductors (TSMC)
IndiaDeficitIT services (export), oil (import)
IndonesiaSurplusCommodities, palm oil, coal

Impact on Currency

Trade surplus → more demand for local currency → currency strengthens Trade deficit → more demand for foreign currency → currency weakens

Trade Wars and Asian Markets

US-China trade tensions since 2018 have reshaped Asian supply chains. Companies are diversifying manufacturing from China to Vietnam, India, and Indonesia — the 'China Plus One' strategy.