Economy

The Trump administration has turned away from the multilateralism that the United States itself created, leaving the rules-based international order under severe stress. Alejandro Reyes of the Asia Global Institute argues that attempts by some G7 countries and "like-minded" allies to strengthen the global system will have limited impact if their aim is to assert liberal values rather than shape a new order by working with China, India and other players who prefer pragmatism over preaching.

The rapid expansion of China-Africa economic ties led to questions about a new colonialist dependency. While concerns about debt and oversight persist, the relationship has evolved. Johannesburg-based African business expert Dianna Games argues that it is up to African countries to build the capacity to deal effectively with Beijing.

The fallout from the US-China trade battle and the collateral geo-economic disruptions are threatening global economic stability. G20 members meeting in Japan this month need to address the risk of a crisis. The US and China must call off the trade dogs of war – and quickly, writes George Magnus, Research Associate at both the China Centre of Oxford University and at the School of Oriental and African Studies (SOAS) of the University of London.

The rise in trade tensions between the US and China may be due to the American side’s failure to appreciate the implications of China’s not being a rule-of-law country – that administrative action, not laws on the books, get things done in China, writes Zhiwu Chen, Director of the Asia Global Institute (AGI) and Victor and William Fung Professor in Economics at the University of Hong Kong (HKU).

The resounding election triumph of the ruling BJP gives Indian Prime Minister Narendra Modi a strong second mandate and a fresh opportunity to make his ambitious dreams for India a reality, says Hong Kong-based strategic adviser and entrepreneur Alan Rosling, the author of "Boom Country?: The New Wave of Indian Enterprise".

As China embraces the digital economy, subcontracting—the practice of using intermediaries to contract workers, whether through agencies or other multilayered contracting—is raising new challenges over legal protections and corporate responsibility, as well as labor unrest.

The internet has taken much of the human interaction out of international trade. But many commercial buyers continue to emphasize face-to-face communication with sellers.

The global economy is currently organized in an environmentally damaging way: goods are produced, used, and discarded. The shared economy and the platform economy offer alternatives, but not solutions. The key to a more sustainable economy could lie in the combination of the two.

The United States, under President Donald Trump, has found a favored target of criticism in the World Trade Organization. While there is no doubt that the W.T.O. needs urgent reform, the framework it provides—offering the certainty and predictability inherent in a rules-based system—should not be abandoned.

Having built the world’s second-largest economy on the back of its mammoth manufacturing sector, China is now contending with not just environmental problems but also economic obstacles. Policies that make businesses greener can raise costs, and negative impacts on labor must be mitigated.

Following World War II, the global economy moved rapidly toward further integration. Now, this process has stopped, and is in fact reversing itself. With countries increasingly engaging in economic nationalism, massive changes are coming, for economies big and small.

For innovation to serve everyone in emerging economies, it must go beyond the relentless pursuit of the cutting edge. Focusing more on the needs of the majority of Asian emerging market consumers will lead to more sustainable, lasting growth.