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The East Asian ‘Triangle Trade’ has been a Huge Success

Over the past decades, East Asia has been the most successful region in the world in building up cross-border supply chains and has subsequently become described as “Factory Asia” (Baldwin 2008). In a form of “triangle trade”, advanced countries in East Asia exported sophisticated parts and components to less developed countries in the region, where these are assembled into final consumption goods and then shipped to rich-nation markets, especially the US and EU (Baldwin and Kawai 2013).

Washington’s Reaction to the Asian Infrastructure Investment Bank

If you want to understand the negative reaction of the United States to the Asian Infrastructure Investment Bank (AIIB), you also need to understand how the United States thinks about the World Bank and Asian Development Bank (ADB). Of course, first and foremost, these institutions engage in ‘development’, providing financing and knowledge to promote economic growth and poverty reduction in developing countries. But for leading shareholders like the United States, they are also important instruments of strategic influence.

Geo-political Challenges and Economics in Asia

What can economics tell you about the geo-political challenges in Asia? Many strategic thinkers focus on defence capabilities, ideology, politics, environmental threats or history to envisage strategic futures. Economics provides a lens to focus on the fundamental drivers of regional power relations. National income limits a country’s capacity to mobilise resources for power projection, and hence influence the regional security order. For example, North Korea may be a security nuisance, but its pockets simply aren’t deep enough to be more than a bit player.

Economic Growth, as well as Security, Dependent on China-Japan Relations

Tensions in the East China Sea over the contested Senkaku/Diaoyu islands dominate manoeuvring around the upcoming meeting between Chinese president Xi Jinping and Japanese Prime Minister Shinzo Abe at the APEC summit. 

An Asian Infrastructure Investment Bank’s Time May Have Come

The proposed Asian infrastructure bank could galvanize growth in emerging Asia and boost lingering global recovery.  According to Western media, the Asian Infrastructure Investment Bank (AIIB) is to rival the World Bank and the Asian Development Bank (ADB).  In reality, the idea of the AIIB was put forward more than a year ago; not to undermine either the World Bank or the ADB, but to deliver the promise that both have failed to deliver – sustained growth in emerging Asia.

A Future with a Low-Carbon Asia

The pattern of energy supply and demand that has prevailed over the last 3 decades is undergoing transformation, with great consequences for Asia’s energy security and regional cooperation. The two factors driving this transformation are the rise of the Association of Southeast Asian Nations (ASEAN), the People’s Republic of China (PRC), and India as major energy consumers, and the impressive additions to oil, gas, and coal output. The first is driven by growing populations, industrial growth, and economic ascendance of emerging economies.

Shanghai Cooperation Organisation Goes Beyond Security to Include Trade

China recently reaffirmed that it backs India and Pakistan becoming members of the Shanghai Cooperation Organisation (SCO). At the 14th meeting of the Council of Heads of States of SCO on 12 September, Chinese President Xi Jinping called for full membership for SCO observers, including India and Pakistan.

Arguments Rage in Australia Over the ‘China choice’

Arguments currently raging in Australia about the so-called China choice have not addressed the crucial issue about what specific concessions must be made to accommodate a rising China. Instead, debate consists of generalised statements that the US needs to provide China with strategic space by acknowledging its legitimate strategic interests.

Stronger India-China Trade Undermined by Border Issues

India’s modern relationship with China, beginning in the 1950s when India was the first non-socialist bloc country to rekindle relations, has been volatile — underscored by border disputes, post-colonial bonhomie and Asian solidarity. In 2008, China emerged as India’s largest trading partner — boosting bilateral strategic and military relations as well.

India’s potential nuclear deal with Japan likely won’t be easy

In recent weeks we have seen the ‘bromance’ between India and Japan reach new heights. Earlier this month, India’s Prime Minister Narendra Modi visited Tokyo amid media hype of a special relationship, and even a de facto alliance, between the two countries. There is talk of a special ‘personal chemistry’ between Modi and Japanese Prime Minister Shinzo Abe and much was made of the claim that Modi was one of only three people that Abe follows on Twitter.