Many companies have begun the process of moving their factories from China to other Southeast Asian countries as they expect tariffs from Donald Trump should he return to the White House, a trend expected to intensify with his election victory, they said. commercial park development companies in the area.

Trump, who won a landslide victory on Tuesday, has threatened 60 percent tariffs on US imports from China, far higher than the 7.5 percent to 25 percent he imposed in his first term, a major risk to his second term. world’s largest economy.

Southeast Asia — with auto and electronics factories from Thailand to Vietnam and Malaysia — is likely to be favored over China, two senior executives, two business groups, a lawyer and an analyst from the region said.

Industrial park development companies hire Chinese-speaking staff and prepare land for building factories.

As Trump has ramped up his campaign, there has been strong interest from Chinese clients, said Jariporn Jarukornsakul, chief executive of WHA Group, one of the largest property development groups in the country. Thailand. “There was (already) relocation to Southeast Asia, but this phase will be more intense,” she said, referring to Trump’s 2017-2021 first term.

WHA Group is expanding its sales department and hiring Chinese-speaking employees in teams overseeing the maintenance and management of industrial parks, which cover more than 12,000 acres in Thailand and Vietnam, Jariporn said.

Of the 90 factories opened this year in industrial parks run across Southeast Asia by Thailand’s Amata Corp, about two-thirds have companies moving their facilities out of Chinasaid Vikrom Cromadit, founder and president of the company. Trump will be a “big blow” to China, possibly doubling the number of companies looking to relocate from there to other countries in Southeast Asia, he said.

Thailand, which is the center of the automotive industry in the region, has attracted more than 1.4 billion. dollars in investment by Chinese car companies in its fast-growing electric vehicle industry.

“We want a lot of investment from China so we can sell to America,” said Thai Trade Minister Pichai Naripthapan. “I think that will happen,” he told reporters yesterday. “The Americans love us, the Chinese love us – we don’t have to pick sides.”

OR Malaysiawhich is expected to attract more than 100 billion new investments. dollar in the integrated processor industry, could benefit from a realignment of supply chains, the heads of two business groups said. “This change could give Malaysia new opportunities to take a bigger share of exports to the US and other important markets,” said Soh Thian Lai, president of the Federation of Malaysian Manufacturing Industries.

But risks remain, especially as there are indications that Trump may consider imposing tariffs on imports from other countries in the wider region, said Leif Schneider, head of international law firm Luther in Vietnam.

Vietnam, a key exporter to the US with a bilateral trade surplus of 90 billion. dollars between January and September, is bracing for volatility under Trump.

“Trump will have to choose — you can be anti-China but you’ll need to have some friends in Southeast Asia,” said Jariporn of the WHA Group. “He’s a negotiator, so we’ll negotiate.”