“The Great Rebalancing”
Over the course of the past few years, the theme that has run through Asia-focused transactions and events has been the economic rise of China and its potential, with one lingering question — how long can this last?
Today the question is no longer whether or not China or Asia will rise, but rather, to what extent and how quickly the eastward shift of power will take place. Especially in the wake of the recent global financial crisis, driven primarily by activities taken on by Western financial institutions, businesses — and capital — are recognizing that a reordering is taking place.
While there had been an initial fear that the dip in the American economy would have rippling effects for China, China emerged in 2009 with a GDP growth rate of nine percent – beating even the most optimistic of expectations. In what has often been called the “great rebalancing,” Asia is once again finding itself moving its way up in the global pecking order. What this means is that companies, even in the face of such concerns as the recent Google China pull-out, are looking to define an “Asia strategy,” and increasingly, a “China strategy” in particular.
With the largest stimulus plan set in motion by any country, China is building/upgrading a country-wide “hardware” that will be necessary to support its growth. Over a series of various blog posts, I’d like to highlight and analyze the changes that have taken place, and what it may mean for businesses, governments, non-profits, and consumers along the way.