Can Washington afford pivot to Asia strategy?
By Ding Gang Source:Global Times Published:
2015-8-12
In military, the US' pivot
to Asia strategy has made a showy display, given Washington's recent aggressive
stance in the South China Sea disputes.
But in economy and trade, this strategy serves more like an empty slogan. It is being left behind from the mainstream of Asia's development and retreating from this continent.
In the past decade, the US has fallen from being the biggest trading partner of ASEAN to the fourth place, behind China, the EU and Japan. US trade with ASEAN used to make up 20 percent of this Southeast Asian bloc's total foreign trade, but the number has slipped to just 8 percent.
Of the 15 countries that the US invests most, three of them are Asian, namely China, Japan and Singapore. Two Latin American countries are included, and the rest are all European countries.
Washington does not have the ability to maneuver in the Asian economy. The rapid development of Asia, especially the rise of the Chinese economy, brings Asian countries closer and connects Asia and the rest of the world better. It is Asia that has gained leverage over the US.
Since 2005, most countries and regions in Asia have been increasing their exports to China. The exports to the Chinese mainland by a number of countries and regions have exceeded those to the US since the beginning of this century. The investment from Asian economies to China has also exceeded that to the US.
The industrial chain of Asia started to shift in favor of China. Large amounts of industrial products with fittings made in Asian countries have been exported to the world.
China's development assistance to Cambodia has reached $3 billion, while the US only offers $70 million every year.
According to statistics released by the US Department of State, US investment in Myanmar was only $244 million by the beginning of 2013, ranking 13th among all investor countries and consisting only 0.59 percent of total investments.
The 10+3 framework comprised of ASEAN plus China, South Korea and Japan has gradually become the engine of the world's economic development. South and Central Asian countries are also proactively engaging in this process. The US however, since the 2008 financial crisis, has had no ability or momentum to join.
The reason why Washington is lowering its contribution to Asia is not only because of its relatively declining power and sluggish economy, but also because of its pivot to Asia strategy. It is focusing too much on its leadership in this region.
The US' Asia strategy is promoted on dual track. It pushes forward cooperation with China while at the same time being on guard to prevent China from challenging its position. However, the strategy is dysfunctional when China and the whole of Asia are developing fast.
The US economic and trade policy on Asia still stresses helping newly emerged Asian economies integrate into the global trade and investment system led by US rules. Such a policy is designed with the perspective of US as a leader.
Washington has not realized that today's Asia is not as reliant on American markets and investment as it was in the past. Trade relations among Asian countries are deepening, mutual investment is booming, and the US has had less say in this regard.
The economic development of Asia needs active participation by the US. The US market and its high-tech investments still remain very attractive to many Asian countries. But with current input, the US can hardly play a leading role in the continent that has become the global engine.
How can the US, which has not actively participated in the development of Asia, nor contributed enough to the area, guide the reconstruction of the Asian order?
The author is a senior editor with People's Daily. He is now stationed in Brazil. dinggang@globaltimes.com.cn. Follow him on Twitter @dinggangchina
But in economy and trade, this strategy serves more like an empty slogan. It is being left behind from the mainstream of Asia's development and retreating from this continent.
In the past decade, the US has fallen from being the biggest trading partner of ASEAN to the fourth place, behind China, the EU and Japan. US trade with ASEAN used to make up 20 percent of this Southeast Asian bloc's total foreign trade, but the number has slipped to just 8 percent.
Of the 15 countries that the US invests most, three of them are Asian, namely China, Japan and Singapore. Two Latin American countries are included, and the rest are all European countries.
Washington does not have the ability to maneuver in the Asian economy. The rapid development of Asia, especially the rise of the Chinese economy, brings Asian countries closer and connects Asia and the rest of the world better. It is Asia that has gained leverage over the US.
Since 2005, most countries and regions in Asia have been increasing their exports to China. The exports to the Chinese mainland by a number of countries and regions have exceeded those to the US since the beginning of this century. The investment from Asian economies to China has also exceeded that to the US.
The industrial chain of Asia started to shift in favor of China. Large amounts of industrial products with fittings made in Asian countries have been exported to the world.
China's development assistance to Cambodia has reached $3 billion, while the US only offers $70 million every year.
According to statistics released by the US Department of State, US investment in Myanmar was only $244 million by the beginning of 2013, ranking 13th among all investor countries and consisting only 0.59 percent of total investments.
The 10+3 framework comprised of ASEAN plus China, South Korea and Japan has gradually become the engine of the world's economic development. South and Central Asian countries are also proactively engaging in this process. The US however, since the 2008 financial crisis, has had no ability or momentum to join.
The reason why Washington is lowering its contribution to Asia is not only because of its relatively declining power and sluggish economy, but also because of its pivot to Asia strategy. It is focusing too much on its leadership in this region.
The US' Asia strategy is promoted on dual track. It pushes forward cooperation with China while at the same time being on guard to prevent China from challenging its position. However, the strategy is dysfunctional when China and the whole of Asia are developing fast.
The US economic and trade policy on Asia still stresses helping newly emerged Asian economies integrate into the global trade and investment system led by US rules. Such a policy is designed with the perspective of US as a leader.
Washington has not realized that today's Asia is not as reliant on American markets and investment as it was in the past. Trade relations among Asian countries are deepening, mutual investment is booming, and the US has had less say in this regard.
The economic development of Asia needs active participation by the US. The US market and its high-tech investments still remain very attractive to many Asian countries. But with current input, the US can hardly play a leading role in the continent that has become the global engine.
How can the US, which has not actively participated in the development of Asia, nor contributed enough to the area, guide the reconstruction of the Asian order?
The author is a senior editor with People's Daily. He is now stationed in Brazil. dinggang@globaltimes.com.cn. Follow him on Twitter @dinggangchina
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