Global Economic Outlook from the Asian Perspective

In the 21st century, the centre of gravity of the world economy has shifted from the West to the East, heralding the arrival of an “Asian Century.”

How will the development of countries in Asia, especially leading economies on the continent, influence the world economy at large? Panelists discussed the question at a session themed “The Global Economic Outlook: View from Asia” during the 13th Annual Meeting of New Champions of the World Economic Forum (WEF), also known as Summer Davos, which is held from July 1 to 3 in the northeastern Chinese coastal city of Dalian.

Despite the rise of trade protectionism across the world, regional integration is still advancing, with over 60 percent of global trade happening within Asia. 

When talking about the trade friction between China and the U.S., Lu Minfang, CEO of China Mengniu Dairy Co., Ltd., said that trade wars will not stop global trade. He added that his company will continue importing animal feed—from Europe if not from the U.S.

“The China-U.S. trade tensions are also a reflection of the problems of globalization,” says Jin Keyu, a professor at London School of Economics, referring to income inequalities, popular discontent in the West, and failures of the international system in some developing economies.

Considering that the overwhelming majority of Asian countries are developing countries, the situation raises concern whether they can enjoy equal rights in the current international trade system dominated by Western developed economies. According to Professor Jin, this requires us to reform the WTO and other multilateral mechanisms, and China had done a lot in raising the equality of emerging markets.

Although it is sure to cause economic pain, the China-U.S. trade tensions could in the longer-term stimulate manufacturing in China and regional trade within Asia, said Professor Jin.