To read the full version of this content please select one of the options below:

China rebalancing offers South-east Asia growth chance

Wednesday, June 8, 2016

Subject

Outlook for Chinese economic rebalancing and South-east Asia's economies.

Significance

South-east Asian states' trade with China shrank by 1.6% in May, according to China's trade statistics announced today. Beijing's desire to make China's economy more reliant on domestic demand than exports; services than manufacturing; and consumption instead of investment will affect South-east Asian states, which collectively are China's third-largest trade partner, in positive and negative ways.

Impacts

  • Chinese investments in South-east Asian services, infrastructure and logistics will likely grow.
  • Maritime frictions between South-east Asia and China are unlikely seriously to undermine trading activities.
  • However, there is some suspicion towards Chinese investments in South-east Asia; investors may conduct outreach activities.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.