Asia

China is the world’s second-largest economy, with a total GDP of close to $18 trillion in 2023, and projected GDP growth rate of 4.8% for 2024. China’s total trade with the U.S. reached $575 billion in 2023. Trade between Wisconsin and China has grown over the last decade, and today China is the state’s third-largest export destination, with $1.5 billion worth of goods shipped from Wisconsin to China in 2023. Societal changes in China will further improve export opportunities for Wisconsin companies; these trends include wider use of machines and technology in manufacturing, improvement of environmental contamination, and growth in health interventions.

Trade between Wisconsin and China has grown over the last decade. China is the state’s largest export destination outside of North America. Medical and non-electrical machinery are the state’s biggest exports to China, followed by computers and electronics, plastics, fabricated metal products, and processed foods.

Opportunities for Wisconsin companies in China are related to broader use of machines and technology in manufacturing, improvement of environmental contamination, and health care services. The rise of the middle class and urbanization throughout China make it a high-growth market where Wisconsin communities can build on relationships established in recent years. Societal changes are driving demand for new products and technologies. Recently, as the U.S. and China both set goals on carbon emissions and agreed to cooperate closer on climate change, there is strong potential for collaboration and growth in the field of environmental protection. Wisconsin businesses could also benefit from offshore service contracts for legal and financial services and health care, as the growth of the middle class in China is creating the need to improve the country’s health care industries.

Japan is the world’s fourth-largest economy. Its large government debt (more than 200% of GDP), persistent deflation, and an aging and shrinking population are major complications for the economy but create opportunities for novel products and services. As Japan has finally exited the deflation spiral that lasted more than two decades and entered into an inflation economy model, the yen has become weak relative to the U.S. dollar, leading to higher cost of U.S. goods in Japan. Still, Japanese buyers are willing to pay a premium for high-quality and value-added products.

There are Japanese investments in Wisconsin in industries such as food, bioscience, mining, and high tech, among others. In addition to a language barrier and business culture differences, exporters face challenges such as overlapping regulations and authorities, slow approval processes, and complex multi-tier distribution systems. Such hurdles can be overcome by establishing a relationship with a local partner.

Wisconsin companies wishing to enter the Japanese market should strongly consider partnering with a reputable, well-connected agent or distributor and cultivating business contacts through frequent personal visits. Japanese business culture attaches a high degree of importance to personal relationships, and these take time to establish and nurture. The nature and pace of deal-making in Japan are quite different from those in U.S.

South Korea is home to some of the world’s largest and most diversified companies and is a dynamic and vibrant place to do business. A modern-day tech giant, South Korea also has historic strength in sectors such as shipbuilding, steel, and petrochemicals; these have slowly declined in recent years that country’s leaders are looking to move toward more technology-intensive industries. According to International Monetary Fund, with a population of over 51 million and a gross domestic product (GDP) per capita of more than $1.67 trillion in 2022, South Korea is the 13th-largest economy in the world and the fourth-largest in Asia.

South Korea’s strategic location constitutes an advantage for Wisconsin exporters. With world economic trends rapidly shifting, it is now advisable for companies to diversify their global base of manufacturers, suppliers, and export partners. Located at the heart of Northeast Asia, South Korea is considered to be an ideal test market for the surrounding region. A staggering 147 cities with population of 1 million or more are within three hours’ flying time. The South Korean consumer market also mirrors global trends, providing another reason for exporters to use it as a laboratory to prepare products for broader expansion. With its strategic location and diverse purchasing power, South Korea is one of the most important business hubs in Asia.

South Korea has a trade-oriented economy for both export and imports, and the U.S. is a key trading partner country for South Korea. In fact, the U.S. is the second-largest import source for South Korea (after China).

Strategically located within Asia, Singapore serves as a key business hub with a diversified economy that promotes a pro-business environment. It has a high GDP per capita and attracts significant foreign investment due to its political stability, skilled workforce, and excellent infrastructure. As a gateway to the Association of Southeast Asian Nations (ASEAN) market, a 10-nation economic bloc with a population of 673 million and a combined GDP of $3.6 trillion, Singapore provides access to substantial economic opportunities. The government’s focus on innovation and technology is reflected in the “Singapore Economy 2030” roadmap, which emphasizes high-value manufacturing and advanced technologies like robotics and automation. The services sector is also a critical component, with initiatives aimed at enhancing the finance and financial technology industries. Known for its low corruption and efficient bureaucracy, Singapore maintains business confidence with its free-market economy, strong infrastructure, and emphasis on science, technology, engineering, and math (STEM) education, supporting a knowledge-based economy.

Singapore hosts more than 4,000 regional headquarters across sectors including finance, logistics, technology, and health care. The city-state’s strategic geographic location at the heart of Southeast Asia makes it a pivotal trading, shipping, and aviation hub. Its world-class port and airport facilities, coupled with robust infrastructure and efficient logistics networks, have positioned Singapore as a key trans-shipment point for global trade. Combined with its stable political environment, skilled workforce, and pro-business policies, Singapore has solidified its status as a leading global commercial center.

Singapore is renowned for its rule of law, transparent and streamlined business regulations, and robust enforcement of intellectual property rights. More than 99% of imports into Singapore enter duty-free, facilitating an attractive market for Wisconsin exporters. The U.S.-Singapore Free Trade Agreement, effective since Jan. 1, 2004, further enhances trade opportunities.

India is one of the fastest-growing major economies in the world, consistently expanding its GDP at a rapid pace over recent decades. With a population of more than 1.3 billion people, India represents a massive consumer market with a growing middle class and increasing consumer spending. India is known globally for its information technology (IT) industry, with cities like Bengaluru (Bangalore) being major hubs for software development, IT services, and outsourcing. India also has thriving industries in pharmaceuticals, textiles, automotive, telecommunications, and renewable energy. India has been investing heavily in infrastructure projects including roads, railways, airports, and smart cities to support its growing economy.

India boasts an immensely rich cultural heritage, including numerous languages, traditions, and religious groups, and is unique in its diversity—an important factor to keep in mind when doing business in India. Since 2018, India’s working-age population has grown larger than those not of working age. This bulge in the working-age population is projected to last through 2055, giving India what’s known as a demographic dividend. India has a burgeoning startup ecosystem, especially in technology-driven sectors such as e-commerce, financial technology, and health tech. India is an active participant in global trade and is influential in global economic policies through its membership in international organizations.

There is synergy between Wisconsin’s strong export sectors and India’s growth sectors. There is potential in the agriculture, infrastructure, and manufacturing sectors common between India and Wisconsin that could lead to win-win outcomes for both. India’s growth potential offers tremendous opportunities for Wisconsin-based companies exporting to India. India’s top five trading partners continue to be the U.S., China, UAE, Saudi Arabia, and the European Union.

Taiwan has a dynamic capitalist economy driven largely by industrial manufacturing, especially exports of electronics, machinery, and petrochemicals. Taiwan’s economy grew by about 1.3% in 2023. Taiwan enjoyed record exports thanks to surging global demand for its technology components and products because of the need to work and study from home. Taiwan’s strong manufacturing capabilities and complete supply chain have helped it dominate the global microchip marketplace despite strong competition from South Korea, Japan, China, the U.S., and India.

The island runs a trade surplus with many economies, including both China and the U.S. Its foreign reserves are the world’s sixth-largest, behind those of China, Japan, Switzerland, India, and Russia. In 2006, China overtook the U.S. to become Taiwan’s second-largest source of imports after Japan. The majority of Taiwan’s imports come from other Asian countries..

The top categories of Taiwanese purchases from the U.S. include industrial machinery, mineral fuels, electrical machinery, aircraft, and optical and medical instruments. Wisconsin exports to Taiwan totaled $380 million in 2023, making Taiwan the Wisconsin’s 15th-largest export market.

With the second-largest economy in Southeast Asia and ranking eighth in Asia as a whole, Thailand is heavily reliant on exporting, particularly of electronics and agricultural products, which constitute a significant portion of its GDP. The nation has maintained a free-market, export-driven economy, balancing foreign direct investment (FDI) with domestic initiatives to enhance the competitiveness of Thai businesses. The Thai government actively promotes industry and infrastructure development within the Eastern Economic Corridor (EEC), which encompasses 30 industrial zones and aims to attract $55 billion in investments from both the public and private sectors. With excellent infrastructure, including modern ports, airports, and telecommunication networks, Thailand supports efficient trade and business operations. Furthermore, the country emphasizes advancements in technologies such as the Internet of Things, artificial intelligence, 3D printing, automation, and augmented/virtual reality to modernize production, management, and governance systems.

Thailand positions itself as a business-friendly nation with a robust economy. Its government welcomes foreign investment and fosters strong regional ties and an open market. An upper-middle-income population fuels consumer spending, creating ample opportunities for various industries. Recent improvements in intellectual property protection and government support for sustainable business further enhance the already attractive investment climate. Thailand’s manufacturing prowess, particularly in electronics, automotive, and food processing, combined with favorable investment treaties such as the U.S. Treaty of Amity (which grants U.S. businesses significant privileges like majority ownership and exemption from certain restrictions) solidifies its position as a manufacturing hub.

For U.S. exporters, Thailand offers promising sectors with growth opportunities. The strong automotive manufacturing industry led to a surge in imports of U.S. vehicles and parts in 2023. Thailand remains an important market for U.S. agricultural products such as cereals and oil seeds. These export sectors align with Thailand’s focus on manufacturing, infrastructure, and consumer demand.

With a population of more than 100 million, Vietnam ranks as the 15th most populous country globally. Rapid urbanization, with nearly 40% of the population living in major cities like Hanoi and Ho Chi Minh City, is driving demand in consumer goods and services. The government is focusing on infrastructure and technology to solidify Vietnam’s role as a regional economic leader. As it transitions from agriculture to manufacturing, Vietnam is attracting foreign investment with its business-friendly policies. The young, tech-savvy population supports a growing domestic market, while Vietnam’s strategic location and trade agreements offer exciting opportunities for international businesses. Strategic plans like the Socio-Economic Development Strategy (SEDS) 2021-2030 and the National Digital Transformation Program 2025 aim to drive modernization and digital adoption, reinforcing broader economic growth.

Within the Association of Southeast Asian Nations (ASEAN), Vietnam boasts the fastest-growing middle class, currently estimated at around 33 million people. This emerging middle class is significantly impacting the country’s economy, society, and consumption patterns, drawing increasing interest from foreign brands and investors. Accelerated economic expansion and urban development have further enhanced Vietnam’s appeal as a destination for foreign investment, positioning it as a viable alternative to China for companies seeking lower labor costs, a larger and younger workforce, and a supportive regulatory environment. Amid rising geopolitical tensions between the U.S. and China, major corporations such as Nike, Foxconn, and Samsung have relocated operations from China to expand their manufacturing presence in Vietnam.

Fueled by robust GDP growth from manufacturing and exports, Vietnam has emerged as one of Southeast Asia’s fastest-growing economies. As the U.S. is Vietnam’s largest export market, these longstanding connections offer U.S. companies access to a rapidly expanding consumer base, half of whom are under 30. The U.S. and Vietnam have elevated their relationship to a Comprehensive Strategic Partnership focusing on economic cooperation, technology, and innovation. This partnership reflects the two nations’ shared interests in regional stability and growth.