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Business and Finance

The Geo-Economic Potential of the China–Japan Relationship

Japanese and Chinese Flags. Image: futureatlas.com/Flickr

This article was originally published by the East Asia Forum on 28 September, 2015.

China and Japan already together account for more than a fifth of global output, bigger than the share held by the United States or that of Europe. Over three-quarters of that, of course, is generated in mainland China but, contrary to widely held perceptions, the China–Japan economic partnership is one of the biggest in the world.

The bilateral trade relationship is the third-largest in the world, with a US$340 billion trade relationship in 2014. China is Japan’s largest trading partner, accounting for one-fifth of its trade, and Japan is China’s second-largest. Japan is the largest investor in China, with a stock of direct investment at more than US$100 billion in 2014 or US$30 billion more than the next largest source, the United States. But even those massive trade and investment figures understate just how intertwined are these two Asian giants.

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Business and Finance

China’s Domino Tactics Boost Infrastructure Bank

President Jacob Zuma receiving the President of the People’s Republic of China, Xi Jinping in Pretoria in March of 2013. Image: GovernmentZA/Flickr

This article was originally published by the CIPS Blog, hosted by the Centre for International Policy Studies on 22 March 2015.

China is looking ever the experienced super-power. In a week it has scooped up all the important European dominos, humiliating a U.S. government which has lobbied hard to block the launch of China’s new $50b Asian Infrastructure Investment Bank (AIIB).

The dominos have fallen quickly. Last week it was the UK’s turn to join, preferring its commercial interest and geo-political judgment over its friendship with the U.S. Now it is a coordinated set of EU announcements from France, Germany and Italy. The driver was their desire to be well-connected economic partners in Asia, but there was also an element of blowback on U.S. geo-political arrogance, be it spying on Angela Merkel or military jingoism towards Russia.

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Business and Finance Regional Stability

Falling Oil Prices May Spell Disaster for President of Venezuela

Tear gas used against protesters in Altamira, Caracas, 2014. Image: Andrés E. Azpúrua/Wikimedia

This article was originally published by Southern Pulse on 22 January 2015.

On 14 January 2014, Venezuelan President Nicolas Maduro promised the Petrocaribe alliance would continue and its twenty member countries would further consolidate into a “great economic zone.” President Maduro’s guarantee comes at a precarious time for his country, as a rapid and unexpected slump in global oil prices, coupled with persistent economic stagnation in Venezuela, have undercut his administration’s ability to maintain its social programs and address the country’s financial imbalances.

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Business and Finance

Debating the Future of the German Arms Industry, Again

ILA 2010 – Eurocopter EC-665 Tiger. Image: yetdark/Flickr

This article was originally published by SIPRI on 7 November 2014. It is published as part of a collaborative partnership between SIPRI and Economists for Peace and Security (EPS).

As German industry is not at the top technological level in a number of areas of arms production—particularly in aerospace and electronics—preferential treatment for German companies has often led to German participation in co-production projects with companies from other countries. In terms of arms exports, while the 2000 policy guidelines on German arms exports (PDF) state that export decisions should be based on security policy rather than economic considerations, the latter continues to loom large in German arms export-licensing policy.

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Business and Finance

The BRICS Are Back, With a Bank

Image: Presidential Press and Information Office/Wikimedia

This article was originally published by the East Asia Forum on 2 August 2014.

The BRICS countries met for their sixth annual summit in Brazil this month, setting out to establish a counterweight to Western-dominated global financial institutions.

The summit’s key achievement was the establishment of the long-awaited BRICS New Development Bank. The bank will press for a bigger say in the global financial order — which is centred on the IMF and the World Bank. While China won the race for the bank’s headquarters, set to be located in Shanghai, India secured the presidency. The bank is a sign of the growing influence of the BRICS which together account for 18 per cent of world trade, 40 per cent of the global population and a combined GDP of US$24 trillion.