BEIJING: Southeast Asia and China are poised to become one of the key drivers of the world economy following their commitments at this year’s ASEAN summit, analysts say.
The 43rd Association of Southeast Asian Nations Summit concluded last week in Jakarta, Indonesia, with the adoption of the ASEAN Leaders’ Declaration on ASEAN as an “epicentrum of growth”. China participated in several summit meetings.
“It is probable that in the future the growth center will relocate to the Asia-Pacific region, and eventually the region will take over the position of the United States and Europe, and become a place of developed countries,” said Sawidji Widoatmodjo, dean of the school of economics at Tarumanagara University in Indonesia.
“If China’s economic power is put together with the power of ASEAN’s economy, it would not be an exaggeration to say that China and ASEAN will be the leaders of global economic growth, while the US economy and the European economy will see low growth and will continue to slow down,” Sawidji added.
Geoffrey Williams, professor and dean of the Institute of Postgraduate Studies at the Malaysia University of Science and Technology, said the US and Europe were once viewed as the engines of the global economy owing to their high per capita income and huge consumer demand. However, this trend has changed, as there is a shift in global demand, with China, India and ASEAN collectively providing big markets.
“Although per capita incomes (in developing Asia) are lower, the billions of consumers make these very large markets,” Williams said, adding that Asian countries are benefiting from high growth, relatively young populations and an educated workforce.
“China is of course a major economic force not just in Asia but globally. It will remain a major force because of its size and growth as well as its influence politically and through the Belt and Road (Initiative) investments. In this way it can support ASEAN through trade and investment,” he said.
Despite an economic slowdown, ASEAN has an ambitious goal, thanks to the region’s growing population, rising investments, and technological advancement, which boost its global role. At the same time, ASEAN can learn from China’s rise while strengthening bilateral ties can be mutually beneficial, they said.
Josua Pardede, chief economist at the Permata Bank in Jakarta, said China and ASEAN’s growth is “interdependent” because China is a major trade partner and investment source for ASEAN. –The Daily Mail-China Daily news exchange item
