Asia is definitely coming of age. Next week at the G20 summit in London she will sit on the global high table to decide on policies to lead the world out of the economic crisis. Asia will prove that she can be one of the lead architects in changing the way the world works.
Represented by economic behemoths India, China, Korea and Indonesia- Asia will make herself heard on financial and political matters. While Asia’s economy has not suffered as hard a blow as her western neighbors, job losses and a drastic fall in exports are threatening their slowing economies. Asian nations are determined to act collectively in boosting aid and bringing back trade to pre-crisis levels as soon as possible.
The difference during this G20 summit this time round is that Asian nations now have the economic might to stand up and have their voice heard at global summits like the G20. While many western economies have decelerated into a recession, the Asian economies of China, India and Indonesia are still expected to show reasonable GDP growth this year of 6.8 percent, 5 percent and 4 percent respectively. Additionally, China has the world’s largest currency reserves, ahead of Japan, with India, South Korea, Taiwan, Singapore and Hong Kong also ranking in the top 10.
China, backed by the rest of the region has increasingly been exerting her influence in global affairs prior to the G20 summit. China’s central bank governor Zhou Xiaochua recently released a proposal calling for the overhaul of the global monetary system and replacing the world’s main reserve currency with the IMF’s Special Drawing Right (SDR). The nation has also expressed its concern over the value of their US$740 billion U. S. Treasury holdings as the value of the dollar drops with the economy.
The rise of Asian power at the G20 is apt as the forum was born as a response to the Asian financial crisis of the late 1990s.
This article was written by Nazia Vasi for 2point6billion.com, a news forum dedicated to Chinese and Indian business news . The stories are contributed by the China tax and law specialists at Dezan Shira & Associates, who have been helping foreign companies do business in China for over 20 years.
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