- Despite widely-shared concern about their fragility, supply chains survived the COVID-19 shocks. In particular, the sophisticated international production networks (IPNs) in East Asia centered on machinery industries proved again to be robust and resilient.
- Although the US-China confrontation and geopolitical tension generate policy uncertainty in the trading regime, actual decoupling has so far been limited in scope. China continues to be an important economic partner for a wide range of businesses in Japan, the US, and other countries.
- Governments in ASEAN and East Asia must reduce policy risks as far as possible by defending the rule-based trading regime and help improve business environments for extending and deepening robust and resilient IPNs.