Key issues at the Boao Forum
- By John Ross
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E-mail China.org.cn, April 5, 2013
But this is a genuinely "win-win" interaction – one of the key reasons for the growing status of annual Boao Forums. China has the highest percentage of trade in GDP of any major economy with Asia accounting for half its exports. A virtuous circle therefore exists in which China's growth aids other Asian economies and their growth equally provides a market for China. Objectively Asia's trade has reshaped from one centered on the U.S. and Europe to one powered by China.
But if this growth is to truly benefit all, a radical restructuring and expansion of Asia's transport and communications capacity is required. It is relatively easy for coastal regions to trade but if all Asia's inland areas, including western China, are to benefit, enormous infrastructure construction is required.
The bulk of Asia lags far behind the U.S. and Europe in the infrastructure necessary for a more even regional development. China itself only has one tenth of the railway coverage per person of the U.S., and China's infrastructure is far stronger than most developing Asian economies. Without overcoming this deficiency, which will take decades of investment, all of Asia cannot benefit from even rapid economic growth. Therefore to ensure development for all, the Boao Forum will hopefully follow up on the stress laid by former Chinese premier Wen Jiabao on developing international Asian infrastructure.
Second, there is a widespread global understanding that social inequality has become excessive. Countries as diverse as the U.S., France, the UK and India have recently increased taxation on their richest citizens. In China discussion of excessive inequality has become a hot issue. This widespread global movement is bound to have a further impact in Asia in the context of attempts to ensure that development benefits all.
Finally a strategic Asian issue will affect these discussions. China promotes an inclusive Asian development agenda, explicitly seeing its interests are served by promoting a win-win outcome for all participants. Inclusion of all countries in this development agenda therefore is not rhetoric but corresponds to China's strategic understanding of the situation. China's own interests are seen as lying in the maximum development of all countries – for reasons already outlined.
Regrettably the U.S. administration currently pursues a different Asian approach – one characterized by the Financial Times as "ABC – Anyone But China." This approach is politically destructive – undoubtedly encouraging irresponsible actions by extreme Japanese nationalists which increase tensions over issues such as the Diaoyu Islands. Economically U.S. attempts to create a "Trans Pacific Partnership" agreement which would exclude China are damaging. These proposals would divide Asia into a "slow growth" group of relatively protectionist economies centered on the U.S. and a "faster growth" group of open economies pursuing non-discriminatory trade relations with China.
The increasing weight of the Boao Forum, which this year will be attended by China's new President Xi Jinping, by heads of state and government not only from Asia but also Australia, New Zealand, Mexico, Peru and other countries, and by figures from the world of finance and business such as Bill Gates, George Soros and Christine Lagarde, provides a platform to continue to develop the positive and inclusive Asian agenda which is required.
The external economic environment for Asia remains difficult. But if Asian countries continue to cooperate there is no reason why they cannot continue to navigate current choppy global economic waters. The Boao Forum is an important opportunity to strengthen that cooperation.
The author is a columnist with China.org.cn. For more information please visit: http://www.shenbo75.com/opinion/johnross.htm
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