Trade wars are typically framed as battles over tariffs, supply chains, and market access. But beneath the surface, they are also impacting global talent flows. As governments adjust policies, businesses reassess their footprints, and workers seek stability, Asia-Pacific (APAC) is emerging as a critical talent battleground.
The shift: Trade disputes are redrawing talent maps
Economic tensions between major economies do more than just disrupt trade; they force companies to rethink where they hire, relocate, and invest in people. Traditionally dominant talent hubs may no longer be the automatic option. Instead, APAC’s rising economies are exploring new possibilities; some obvious, some unexpected.
This represents a moment of challenge and opportunity for mobility leaders. However, the winners in this new era won’t just be those who respond to change, but those who see beyond the obvious and take steps to proactively shape their workforce strategies.
It is already happening. According to Vialto Partners’ Mobility Revolution Survey1, respondents say that in the next two years, aligning mobility with talent will rise from third spot to first place in terms of corporate priorities—overtaking compliance, which is today’s top concern. Enhanced use of mobility data and analytics will claim the second place on the priorities list for most respondents.
1. Tapping into talent
While traditional business centers in APAC remain strong, new contenders are rising. Some are benefiting from geopolitical shifts, while others are strategically positioning themselves to attract high-value industries.
Emerging markets: China, which historically served as a low-cost manufacturing center, is evolving into a knowledge hub, offering incentives for R&D, tech, and automation industries. For example, the Greater Bay Area (GBA) initiative launched in 2019 with the goal of becoming China’s Silicon Valley. Now, it boasts more than 750,000 national high-tech enterprises, and is home to an impressive roster of leading high-tech companies, such as Huawei, Tencent, BYD, Midea, and Gree. Covering less than 0.6 percent of the country’s total area, in 2023, the GBA generated approximately one-ninth of China’s GDP and largely focuses on developing new talent and attracting specialist expertise from overseas2.
According to the Minister of State for Commerce & Industry and Electronics and IT, Jitin Prasada, India is now ‘the skill capital of the world’, particularly in new-age technologies such as artificial intelligence (AI)3. Although the country has been a net exporter of high-tech talent worldwide for decades, trade sanctions and knock-on immigration obstacles are making it more difficult for enterprises to obtain the necessary employment visas, fueling interest in new remote working models.
As friction among the world’s largest economies continues, some APAC countries are determined to take advantage. Vietnam is becoming an increasingly attractive option for companies looking to diversify their supply chains. The Vietnamese government has taken significant steps to attract investment, including tax reductions and providing financial support for high-tech enterprises. One of the largest projects is Samsung Electronics’ chip manufacturing plant in Ho Chi Minh City4. Although the country’s talent appetite is fed by nearly a million hard-working young adults a year, there is still a skill and talent gap for high-tech and developing industrial sectors, and as such, international companies often find it challenging to recruit top-level staff with the necessary skills and experience.
Strategic shifts: Companies should consider talent hubs beyond the usual suspects, tapping into emerging markets where digital and technical skills are rapidly growing. APAC possibilities include the new Johor-Singapore Special Economic Zone, which is offering tax incentives to companies investing in high-value activities such as AI and aerospace manufacturing, and a special 15 per cent income tax rate to entice ‘knowledge workers’5.
2. The quiet power of migration policy as an economic weapon
Trade wars don’t just affect goods, they affect people. Some governments are using immigration as a tool to counteract economic pressure, opening doors to skilled talent as a way to boost competitiveness.
Administrations across the APAC region are refining their immigration policies to promote regional talent mobility, with enhanced schemes aimed at attracting high-skilled professionals to meet the evolving economic needs and ensure a competitive edge in the global market. Recent examples highlighted in Vialto Partners’ Immigration Insights bulletin6 include Hong Kong’s Talent List expansion, New Zealand’s AEWV reforms, and Australia’s MATES scheme, all of which highlight efforts to recruit professionals in fields such as technology, engineering, and healthcare.
Strategic question: How can global businesses understand and leverage shifting visa policies?
Act, don’t react: Instead of following the talent, companies should take proactive steps to keep ahead of legislative adjustments and future-proof their workforce. That can mean working closely with your advisors to keep up-to-date with the ever-changing regulations and promptly adjusting internal processes to take advantage of developments. Mobility experts can also provide valuable assistance and useful tools to help companies keep abreast of and respond to legislative changes regionally and globally. This approach enables HR teams to focus on attracting and developing the talent needed to capitalize on opportunities, instead of putting out fires. Enterprises who invest now can secure the skills they need to get ahead of others, including their competitors.
3. Talent is the new trade war currency
Tackling the next phase of trade tensions will have less to do with who produces what, and more about who attracts the best talent.
Emerging reality: The global race for AI specialists, semiconductor engineers, and automation experts is intensifying. Countries that win this talent race will likely dictate the future of innovation.
Time to be bold: Companies that traditionally relied on importing talent will need to start creating their own talent hubs from the ground up. The question is no longer where do we hire, but how do we build the next generation of specialized talent pipelines.
4. New mobility models: Decentralization and hybrid work
As companies hedge risks by diversifying operations across multiple APAC markets, some are drawing heavily on the lessons learned during the COVID pandemic, adopting alternative ways of working and embracing flexible mobility to build a global culture. A more agile workforce can allow employers to continue business operations in response to changes. According to the Vialto Partners Mobility Agility Survey7, APAC is ahead of the curve in some aspects of talent mobility. While the number of temporary international assignment days are dropping globally, they’re up over 50 percent in APAC. The so-called “non-mobile mobility” is also growing in popularity globally, with 64 percent of respondents anticipating an increase in the volume of “virtual assignments” in the next two years.
Key shift: The emergence of a multi-hub model, where businesses distribute leadership teams across several regional markets rather than centralizing in one place.
Think network, not geography: Moving beyond relocation-based mobility and investing in regional talent ecosystems can enable businesses to create cross-border teams that work seamlessly across multiple APAC cities, without the logistical disruptions, costs, and the complex administrative burden associated with traditional assignments.
What this means for Global Mobility leaders
In a world where trade is increasingly political and talent is the new currency of power, mobility leaders need to think differently. The winners will not just be those who react to trends, but those who shape them.
- Are you looking at mobility through an operational lens, or as a strategic lever for business growth?
- How can you proactively identify and invest in emerging talent hubs before they become mainstream?
- Are your policies and structures designed for a world where talent no longer moves in predictable ways?
- Do you engage your HR and mobility data to its full potential?
APAC is no longer just a production base, it is a high-stakes chessboard for talent, innovation, and economic influence. The real question isn’t just where talent is moving, but who is controlling that movement.
This is the time for mobility leaders to step beyond their traditional role and to take action to become the architects of the future workforce.
Author
Yang Li, Partner and APAC Immigration Lead, Vialto Partners
Sources:
- Vialto Partners New Work Journey Survey: “Mobility (R)evolution – Redefining the mobility playbook”
- https://www.cnbayarea.org.cn/english/Headlines/content/post_1237221.html
- https://telecom.economictimes.indiatimes.com/news/policy/india-emerges-as-worlds-talent-capital-jitin-prasada/118441086
- https://fpt-semiconductor.com/the-semiconductor-industry/
- https://www.channelnewsasia.com/commentary/johor-singapore-sez-special-economic-zone-challenges-expectations-results-4853786
- Vialto Partners Immigration Insights Bulleting Issue #2
- Vialto Partners New Work Journey Survey: Mobility Agility: Remote working and non-traditional mobility
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