The stakes are high for the U.S. as tensions in Asia ramp up. The country has $1.3 trillion of two-way trade with the region, based on annualised data in the first six months of this year. That’s 52.5 percent of America’s total foreign trade. But that is only part of U.S. linkage with Asian economies. Fixed-asset investments generating those trade flows have also to be taken into account as they directly affect employment and income levels in about one-third of American aggregate demand.

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