What's happening in Intra Asia





Pacific Basin economies have what it takes at every level to rise on a tide of prosperity

Over the last decade, technology hierarchy among Pacific Basin countries, which dominate the intra-Asian trade, can be exemplified by the rapid growth of intra-industry trade and the spread of segmentation of production networks across national boundaries.

That's because of several technological developments have facilitated the expansion and integration of intra-industry trade, not only among richer OECD countries, but between industrialising and developing nations as well.

Once progress is made in transport and communication, which reduces transaction costs, so movement up the supply and industrial food chain can take place, after which comes "progressive simplification of engineering".

Already first in trade volume, intra-Asia stands to become first trade value

MOST agree the big player in the intra-Asia trade is likely to be India in the coming decade. It is not that China has shot its bolt, but rather abandoned its old crossbow from which bolts are shot to more sophisticated weaponry to compete in the most advanced markets in the world.

But with more goods made - and consumed - in the region's markets, already the biggest by volume, will become even bigger. As consumer spending expands, so too will manufacturing.

Southeast Asia is set to continue to grow in the lower-end at China's expense. For its part, China is working to shift its manufacturing sector to more complex, higher-value products such as power equipment, precision tools and robotics.

In the intra-Asian trade, India should be wary of the siren transshipment call

IF China has a big rival in the intra-Asian trade it is India, now blessed with a business-friendly government and anxious to get some skin in the game.

That is well and good as far as it goes. Indeed, if India plays its cards right, it stands to win and win big. But if it plays its cards wrong, much could be lost.

A man who thinks India is making at least one bad play is Jose Paul, former acting chairman of JN Port, Mumbai, and a former chairman of Formulae Port Trust.

With protectionism rising, globalisation with Asian characteristics is ripening as a concept

AS the western world falls into the clutches of protectionist politicians such as Donald Trump and Hillary Clinton in the US, Jeremy Corbyn and Nigel Farage in the UK, one can ask if Asia has come of age to take the leadership role in globalisation?

Such is the core question posed by researcher Chietigj Bajpaeem, a doctoral candidate in the Department of War Studies at King's College London, writing in Tokyo's Diplomat magazine.

What we find today, he said, are the leading Western powers placing a growing emphasis on protecting national self-interest over projecting global norms, values and institutions as they were proud to do before.


Intra Asia Trade Specialists

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Visible & Strategic Logistics
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