Nikkei Asia\u2019s annual \u2018Future of Asia\u2019<\/a> conference (May 25-26) held a few days after the Hiroshima Summit, many Asian leaders warned the West about the short-sightedness of such a policy and its dangers.<\/p>\n\n\n\nAt the G7 summit, western countries talked about \u201cde-risking\u201d from China, a finance concept that is a diplomatic buzzword currently, that refers to a reduction of reliance on China in the economic sphere while not turning.<\/p>\n\n\n\n
In a statement issued on May 20 at the end of the leaders\u2019 summit in Hiroshima, G7 countries said they would build economic resilience for themselves, based on a strategy of \u201cdiversifying and deepening partnerships and de-risking, not decoupling\u201d.<\/p>\n\n\n\n
Singapore\u2019s Prime Minister-in-waiting Lawrence Wong, Sri Lanka\u2019s President Ranil Wickremasinghe, Thailand\u2019s Deputy Prime Minister Don Pramudwinai and Vietnam\u2019s Deputy Prime Minister Tran Luu Quang were all critical of the West\u2019s \u201cde-risking\u201d policy and called on Asia to unite to preserve the peace in the continent that facilitates Asia\u2019s economic rise.<\/p>\n\n\n\n
This was well expressed by Thailand\u2019s deputy Prime Minister Don Pramudwinai when he told the Tokyo forum \u201cunder looming risks of military conflicts\u201d Asia must unite and work collectively to promote peace.<\/p>\n\n\n\n
Referring to the Ukraine conflicts he noted that some countries have responded by increasing defense spending and weaponizing currencies and trade. \u201cEye for an eye, tit for tat, is turning everyone blind,\u201d he warned. \u201cThe on-going re-shoring and friend-shoring of the supply chains reflects the insecurity of major powers that put more emphasis on national security\u201d.<\/p>\n\n\n\n
Speaking at the Nikkei forum, Zhu Min, a former deputy Managing Director of the International Monetary Fund (IMF) warned Asian countries from \u201cde-coupling\u201d from the Chinese economy. He pointed out that the Chinese economy has soared in the past 4 decades with its GDP (gross domestic product) steadily increasing from USD 149.5 billion in 1978 to USD 17 trillion in 2022.<\/p>\n\n\n\n
Min said that China is now transforming from a \u201cexport country\u201d to an \u201cimport country\u201d thus increasing domestic consumption as the \u201ccenterpiece of its growth model\u201d. He said while China would build strong and resilient supply chains, it would also welcome everyone to sell to China.<\/p>\n\n\n\n
Wong, who is expected to take over the leadership of the ruling Peoples Action Party soon, reminded the world (especially the West) that very soon Asia\u2019s GDP \u201cis likely to exceed the rest of the world combined\u201d.<\/p>\n\n\n\n
While Asia\u2019s future is full of promise, \u201cthere are multiple storms ahead\u201d he warned. He listed the first big challenge as the U.S- China rivalry that has implications for peace and stability in Asia. \u201cBetween the U.S and China there is deep mutual suspicions and fundamental mistrust\u201d he noted. \u201cThey believe the other to be a strategic danger\u201d.<\/p>\n\n\n\n
\u201cFor the past 50 years since the end of the Vietnam war, we have experienced and enjoyed relative peace and stability in the region. We know from painful experience what happens when the region becomes an arena for great power rivalry,\u201d Wong said, adding, \u201cno one wants to see a repeat of this. Unfortunately, great power rivalry has now returned to Asia\u201d.<\/p>\n\n\n\n
Pramudwinai pointed out that the world need to realize that the U.S and Western Europe are no longer capable of imposing their economic will unilaterally on major powers in Asia. He pointed out that Asia\u2019s economic rise in the past 3 decades has given Asia \u201cassets\u201d that can be used to better position the region to solve global problems without resorting to force.<\/p>\n\n\n\n
\u201cThe convening power of Asia should be used to bring together diligence, to devise political alternatives to military conflicts\u201d he argues, perhaps in making a dig at western policy he said, \u201crhetoric of moral authority on superiority and sanction policies,\u201d must be rejected and Asia would be doing itself a \u201ctremendous favor\u201d by tamping down a dangerous \u201cwar mentality\u201d that could destroy all Asia\u2019s hard work over decades and centuries.<\/p>\n\n\n\n
Speaking at the same event, Sri Lanka\u2019s President Ranil Wickremasinghe said that his country was the worst effected by the twin shocks of the COVID-19 pandemic and the Ukraine crisis that created soaring inflation and shortages of daily necessities. <\/p>\n\n\n\n
Despite its current economic ills, Wickremasinghe believes that Asia has the potential for continued growth that could pull up countries like his. \u201cChina\u2019s recovery, together with a healthy domestic demand in India, will be the main supports of growth for the region. Asia also has the advanced economies of Japan and South Korea contributing to the region\u2019s development, through foreign investments and technology\u201d he noted. \u201cAsia has become the global economic powerhouse of our age, and the most dynamic region, it is also on an unprecedented upward trajectory\u201d.<\/p>\n\n\n\n
In a veiled reference to the West\u2019s double standards, especially on a so-called \u2018rules based order\u2019, Wickremasinghe said: \u201cIf the West wants a rule based order, the West must adhere to these rules all the time\u201d.<\/p>\n\n\n\n
\u201cThe US\u2013China rivalry has given rise to a number of responses by the West especially to economic coercion and weaponizing of economic vulnerabilities. Yet some of these responses\u2014contrary to WTO (World Trade Organization) rules \u2013 may result in a setback to trade integration in the region\u201d he noted.<\/p>\n\n\n\n
\u201cNeedless to say that we in Sri Lanka and many other Asian nations are opposed to economic coercion: whether it be by one country coercing another using its economic power; or by indirect methods such as de-coupling, or friend-shoring\u2014manufacturing and sourcing only from geopolitical allies\u2014contrary to the WTO,\u201d Wickremasinghe argued.<\/p>\n\n\n\n
\u201cThe WTO system put in place three decades ago should not be by-passed for short term geo-strategic gains. The rules of the game cannot be changed arbitrarily. The losers will be the middle-income Asian countries (like Sri Lanka),\u201d he warned.<\/p>\n\n\n\n
The Sri Lankan President also pointed out that pressure to take one side or the other, in many conflicts between the U.S and China, is resisted by many Asian countries.<\/p>\n\n\n\n
\u201cMany of us cannot make that choice because we have already made our choice,\u201d he told the delegates arguing that \u201cwe want an Asia that can accommodate\u201d not only the West and its allies who call for a free and open Indo-Pacific but also China\u2019s Belt and Road Initiative (BRI). Sri Lanka, he stressed is \u201ccommitted to multi-layered connectivity in the Indo-Pacific.\u201d<\/p>\n\n\n\n
Vietnam\u2019s Deputy Prime Minister Tran Luu Quang also called for Asian unity to counter increasing geopolitical tension in the region. He argued that the \u201crules-based order\u201d touted by some for the region need to be based on the \u201cU.N. Charter placed at its center.\u201d<\/p>\n\n\n\n
Vietnam is facing tension with China regarding over-lapping claims in the South China Sea. But Quang said: \u201cAsian countries, especially the major ones in the region, need to overcome their differences, look for common denominators of cooperation, and contribute to peace and stability in the region and the world.\u201d<\/p>\n\n\n\n
Wong warned about the \u201cde-risking\u201d idea being taken too far. \u201cWe will end up with a more fragmented and decoupled global economy,\u201d he said. It is \u201chard to see how de-risking, at its current ambition and scale, can be strictly confined to just a few \u2018strategic\u2019 areas without affecting broader economic interactions,\u201d he noted. <\/p>\n\n\n\n
Under these circumstances, Wong emphasized the importance of ASEAN to take the lead in promoting regional cooperation across geopolitical divisions to promote mutual trust and understanding. \u201cASEAN\u2019s approach today is not so much passive non-alignment, but more about active multi-engagement,\u201d he said, echoing a sentiment expressed by Wickremasinghe.<\/p>\n\n\n\n
Wong argues that Asia is no more \u201cjust bystanders\u201d and that Asia has an opportunity \u201cto develop its own regional mechanisms rather than to rely solely on global institutions. He believes the Asian Development Bank (ADB) and the China-led Asian Infrastructure Investment Bank (AIIB) could take a lead. But at the same time, he said it is important to \u201crecognize that (these institutions) cannot substitute for resilient global institutions\u201d and that Asia\u2019s efforts \u201cmust complement the wider reforms to strengthen the global economic order.\u201d [IDN-InDepthNews]<\/p>\n\n\n\n
Pictures: From \u2018Third World\u2019 to \u2018First World\u2019 in a generation. Singapore\u2019s \u2018boat quay\u2019 in 1978 (left) and the same location in 2016 (right)\u2014which is now the business center of the city state. Credit: Kalinga Seneviratne.<\/p>\n","protected":false},"excerpt":{"rendered":"
Analysis by Kalinga Seneviratne SINGAPORE, 28 May 2023 (IDN) \u2014 The international media may have focused on the attempts at the G7 meeting this month in Hiroshima to unite against China promoting a \u201cde-risking\u201d strategy, which China sees as \u201ccontainment\u201d of their economic rise. It seems many Asian leaders agree with China. In a presentation […]<\/p>\n","protected":false},"author":1,"featured_media":5610,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34,56,16,93,32,3],"tags":[],"class_list":{"0":"post-5609","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-asia-pacific","8":"category-goal16","9":"category-news","10":"category-politics","11":"category-regions","12":"category-sdgs-2"},"_links":{"self":[{"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/posts\/5609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/comments?post=5609"}],"version-history":[{"count":1,"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/posts\/5609\/revisions"}],"predecessor-version":[{"id":5611,"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/posts\/5609\/revisions\/5611"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/media\/5610"}],"wp:attachment":[{"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/media?parent=5609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/categories?post=5609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inpsjapan.com\/en\/wp-json\/wp\/v2\/tags?post=5609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}