Wednesday, June 8, 2016
Outlook for Chinese economic rebalancing and South-east Asia's economies.
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.
- 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.