Asian Infrastructure Investment Bank
Japan’s new outreach in Asia
China’s rise as an economic and military colossus has transformed the geopolitics of East Asia. Its most powerful neighbor, Japan, has embarked on a more self-reliant course, even as it continues to lean heavily on its alliance with the United States. Tokyo is expanding its contacts, both economic and strategic, with Southeast Asia, India and Australia.
Opinion: India nudges China toward Belt and Road changes
India has long warned of the strategic dangers posed by China’s Belt and Road Initiative (BRI). Today, more and more countries are voicing their suspicions about the BRI’s potential effects. The project also faces difficulties due to financial problems within China. Beijing seems to be recasting the BRI as a smaller, more open project. India and many other countries remain wary.
The burgeoning India-Japan partnership
Japan and India are fast becoming close partners. Small wonder: the two countries both want to counteract China's rise, especially in the Indian Ocean. The countries have strengthened economic and military ties, and together could challenge China at sea. As Beijing attempts to project its power ever further, the Indo-Japanese partnership will only grow.
China’s profile is rising in Latin America
As China’s growing economy made it an increasingly important player in Latin America, Beijing kept a low profile. Now, it can no longer avoid the spotlight. In Chile, Venezuela, Ecuador, Brazil and Cuba, its position as a customer, financier and investor is leading to some complicated challenges. The question now is how assertive it will become in imposing its will on these countries – and how they and the U.S. will react.
ASEAN: A nexus of conflict and prosperity
For the first time since the Vietnam War, Southeast Asia has become a cockpit for great-power rivalries. China’s inexorable rise has split the Association of Southeast Asian Nations (ASEAN), which had become a regional broker for peace and prosperity. The ASEAN countries have the demographics and infrastructure to leapfrog into the ranks of the advanced economies, but everything depends on whether China’s growing dominance can be accommodated peacefully.
2018 Global Outlook: World trade
After a surprisingly good 2017, world trade should do even better this year. But that doesn’t mean that Europe and the United States can afford to be passive. China’s Belt and Road Initiative, which will turn most of Asia into a privileged trade zone, demands a choice – either join the initiative or promote free trade outside it. For now, the West is doing neither.
Debate: What China’s new Silk Road means for Europe
In a debate last month in Warsaw, politicians, bankers and businessmen considered the implications for Europe of China's Belt and Road Initiative – likely to be Eurasia's largest infrastructure project in this century. It is both an economic opportunity and a portent of growing Chinese preeminence on the continent.
Global trends: TPP holds key for developments in Asia-Pacific
East Asia’s geopolitical future over the next 18 to 24 months will hinge on whether the Trans-Pacific Partnership (TPP) trade pact is implemented as planned. Last year 12 countries – including Japan and the United States, but excluding South Korea and China – concluded talks on the text of the agreement. However, the deal still faces several hurdles, not least of w...
IMF puts itself in a fix as it bends rules to bail out Ukraine
On December 18, 2015, the government of Ukraine announced it had no intention of honoring a $3 billion Eurobond loan owed to Russia that would mature on December 20. Given the cross-default clause written into that bond, under British law, this was a momentous decision. It gave the Kremlin the right to have Ukraine declared in sovereign default, which would have pr...
China’s infrastructure initiative, part 2: Investment opportunities and security risks – Beijing’s balancing act
Beijing is bolstering its One Belt, One Road (OBOR) programme through huge foreign direct investments and the creation of new financial institutions to fund its related projects. So far, China has launched the Asian Infrastructure Investment Bank, played a major role in the development of the New Development Bank and established a Silk Road Fund. But success will r...