One way in which EMs may benefit from the fragmentation of the global economy into US- and China-aligned blocs is via “friend-shoring”. There appears to be evidence that the US is importing a higher share of goods from EMs, mainly Vietnam, Taiwan, Mexico, India and Korea. But large FDI inflows have so far been more talk than action, with CEE economies the only ones experiencing a major FDI boom in recent years.
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