The Trump Administration’s tariffs disrupted mutually beneficial trade relationships between Chinese producers and U.S. consumers. To bypass these tariffs, firms have shifted production to nearby Vietnam. Within Vietnam, cities closer to China in terms of geographic proximity and industrial alignment experience faster growth and attract more foreign direct investment (FDI). These cities are increasingly turning to renewable energy sources to power their economies. This study examines the improvements in local air quality and reductions in carbon dioxide emissions driven by the expansion of regional trade. The growth of regional trade in China has significant implications for the development of interconnected urban systems across Asia.
Image courtesy of interviewee. January 1, 2025