Expert View

A number of significant events affecting the relationship between the two largest economies of the world, namely the USA and the PRC, happened in March 2018.
On March 8, the White House announced that in order to protect national security, the United States imposed taxes on steel and aluminum import with rate of 25 per cent and 10 per cent respectively. The measures were critically met by a number of steel and aluminum supplying countries. These states required exemptions for their national producers. To date, American officials stressed that the new tax would not be imposed on steel and aluminum produced in the European Union, the Republic of Korea, Canada, Mexico, Brazil, Argentina and Australia. Thus, the new burden has not affected two-thirds of the US steel and aluminum imports. Nevertheless, the measures may cause significant damage to China's metallurgical industry.
On March 22, the tensions rose. Commenting on unconfirmed information about the new restrictive measures of Washington against Chinese economy, Foreign Ministry Spokesperson Hua Chunying stated that the PRC "firmly opposed the US' acts of unilateralism and trade protectionism".

According to the author, India has welcomed the US rebalancing to Asia but is unable to understand its posture leading to the crisis in Ukraine. Russia has been pushed closer to China, which is now the pivot in the triangular relationship among China, Russia and the US. For India, the closer relationship Russia has with China reduces the value of our long-standing and cooperative engagement with Russia. In dealing with India–China issues and even India–Pakistan issues in the future, Russia may not be as supportive as in the past.
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The authors of the issue consider the positions and priorities of Russia, Japan, the Republic of Korea, European Union, the US and Australia on this important Chinese initiative. Other topics of the issue include the economic growth and political development in Asia, North and South Korea relationships, barriers in Japanese – South Korean collaboration, recent political developments in Sri Lanka, trust and democracy in East Asia etc. The issue also contains the book reviews on the Asia-Pacific.
More information at the official GlobalAsia web-site

New Carnegie Moscow Center study analyses a private sector`s role in the North Korean economy. The author assumes that currently from 30% to 50% country`s GDP is generated in the private sector. The government`s attitude to the private economy is controversial and it is not ready to legalize the private sector. Private enterprises prevail in services sector, transport and fishing. The author points out that in recent years a distinction between public and private enterprises is disappearing. According to the author, Kim Jong-un`s government will continue to support the private sector which contributes to economic stabilization, but its legalization is unlikely.
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DECEMBER 2014

Gordon Orr

What do you get when you add slower economic growth, greater volatility, and rising competition to more international flights and genuine Chinese innovation? McKinsey director Gordon Orr’s annual predictions.