Vietnam is the biggest winner from the shift in supply chains caused by the nearly year-long trade war between China and the United States, according to a report, as importers from the world’s two largest economies sought to avoid paying increased tariffs.

China accused the Trump administration of committing "economic terrorism" on Thursday.

Asian countries are hoping the United States - China trade war will permanently boost manufacturing as brands dodge the row by choosing cheaper locations to make their goods.

With both the U.S. and China avoiding any severe economic downturn so far, there’s little incentive for the two countries to strike a trade deal quickly, according to UBS Global Wealth Management.

President Trump has been right to focus on the economic and trade challenges China presents to the United States. But his approach risks producing a deal with only short-term wins and enormous longer-terms costs.

Trade negotiations between the world's largest economies stalled this month after the US said China reneged on previous commitments in a draft agreement, leading both sides to raise tariffs on each other.

Many Vietnamese enterprises are keeping a close eye on the escalating US-China trade war and have expressed concern about its possible adverse impact on their business.

Intensification of tariff dispute also likely to knock almost $600bn off world economy

As has been the case for several emerging Asian countries, Vietnam has followed an export-led growth model, combining trade liberalization and foreign direct investment promotion to spur exports.

Negotiations between the U.S. and China appear to have stalled as both sides dig in after disagreements earlier this month.