As Washington and Beijing fight out their trade war, Asia's most developed countries are trying to reduce their dependence on China — and turn toward India.
Japan, South Korea, Taiwan and Australia — all close allies of the United States — are among the countries attempting to diversify their economies away from dependence on China, whose export-oriented industries are likely to be hurt by the trade war.
Many Asian countries produce goods that are assembled in China before being exported stateside, making the entire region's manufacturing chain vulnerable to U.S.-China trade tensions.
Boosting trade within Asia is widely seen as the region's best safeguard, and that's pushing Japan, South Korea and Australia to pay more attention to its neighbors — particularly India, said Termsak Chalermpalanupap, lead researcher at ISEAS-Yusof Ishak Institute, a Singapore-based think tank.
The Australian government announced an ambitious "India Economic Strategy" in July. By 2035, Australia hopes to make India one of its top three export markets and the third biggest Asian destination for outward investment.
Late last year, South Korean President Moon Jae-in introduced a blueprint known as the "Southern Policy" that's focused on deepening ties with Southeast Asia. India — despite not being geographically part of Southeast Asia — will be Seoul's "key partner for cooperation" on that front, Moon said during a visit to New Delhi in July.
Japanese Prime Minister Shinzo Abe, who is due to visit New Delhi next week, has committed to making India an pillar of his Indo-Pacific blueprint, which promotes infrastructure investment and development in Asian and African emerging markets. It was first announced in 2016, well before U.S. President Donald Trump started using the term.
Reference: CNBC
Read More: https://www.cnbc.com/2018/10/25/india-asias-advanced-economies-build-ties-with-new-delhi.html
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