As Donald Trump takes office for his second term on January 20, the world watches closely as the United States, the world’s largest economy, increasingly leans toward protectionist trade policies. The potential shift in global economic dynamics raises critical questions for economies worldwide, particularly in Asia.
With a focus on “America First,” Trump’s administration signals a more radical approach to trade, aiming to renegotiate or withdraw from existing trade agreements. This move could disrupt global supply chains and impact international trade relations.
Experts are analyzing the implications of these policies. Joel Ruet, founder and chairman at The Bridge Tank, suggests that protectionism could lead to increased tensions and a potential trade war, affecting emerging markets in Asia.
Warwick Powell, adjunct professor at Queensland University of Technology, emphasizes that countries in Asia may need to adapt by strengthening regional cooperation and diversifying their trade partnerships to mitigate potential risks.
Xing Yuqing, professor of economics at the National Graduate Institute for Policy Studies in Tokyo, believes that Asian economies should continue to promote free trade and open markets to sustain economic growth amid global uncertainties.
Liu Baocheng, dean of the Center for International Business Ethics at the University of International Business and Economics, notes that China’s role in global trade could become even more significant as the country positions itself as a leader in promoting globalization.
As the global economy faces these challenges, the need for reforms in global governance becomes apparent. Strengthening multilateral institutions and fostering dialogue among nations may be key to navigating the shifting economic landscape.
For investors, businesses, and policymakers, understanding these dynamics is crucial to making informed decisions in an increasingly uncertain global market.
Reference(s):
cgtn.com
