asia keenly followed the US presidential election, with the apprehensions that whoever took charge of the White House will have an enormous impact on the Asian countries regarding trade and global Politics. With Donald Trump's win in the race to the White House in an election which was bitterly polarized, Asia looks perplexed as to what role USA will now assume in Asia's future.
The Friction Begins
China is all set to surpass America economically in the 2020s and Asian countries like South Korea, India, and Indonesia, who contribute to this global economic growth.
Their interest in the presidential election reflect a few concerns that will have long lasting repercussions. The new American President is likely to increment the trade barriers for Asian countries, especially China followed by Japan. Friction is foreseen in the currency with trump's win as market analysts forecast a fall in the value of the dollar shortly.
The aim of the new President will be to directly tackle China's forex reforms and Japan's deliberate attempt to have an undervalued currency.
What it Means for Asia?
Will he be geared up to deal with China politically at an international level? It is seen more like an election oratory, as the impact of China's economy cannot be ignored. However, with no record to analyse and judge Donald Trump's strategy on China and Asia overall, it remains an enigma.
The Asian countries overall seem vulnerable due to dependence on US demand for growth, but at the same time, the domestic market of these countries might provide the desired cushioning. Trump's win signals an overall strategic withdrawal of the USA from Asia.
First, Brexit and now Trump's win is a sure blow to globalization and Asia stands to lose, at least as of now this is what the scenario signals.
This might also prove to be a blow to America's decades old policy of open trade and formal & informal trade alliances. How Donald Trump's economic advisers assume their role in this situation is going to be interesting to see. America needs to reassure its Asian friends at this point of time.
