Pressured by a labor crunch and rising wages in China, Shu Ke'an, whose company supplies bulletproof vests, rifle bags and other tactical gear to the United States, first considered shifting some production to Southeast Asia a few years ago, but nothing came of it.

When trade tensions flared into a tariff war last year, however, it was the final straw.

A day after U.S. President Donald imposed additional tariffs on $200 billion of Chinese goods in September, Shu, 49, decided to start making vests for his U.S. clients in Myanmar instead.