Trade with China on the rise

China is the new reality !

RCEP is the 1st among a pack of aces fielded by PRC in COVID times for the struggling nations of the ASEAN ! RCEP has knitted the ASEAN into the PRC garment.

The PRC has identified for the world,the “gateway to enter PRC”, via ASEAN. As time passes,wage increases and the rise in cost of living,in urban agglomerations, will provide the impetus to outsource,and shift manufacturing,to ASEAN.Rising costs are a signal,of the obsolescence of the business model and technology – and the driver,to re-engineer the manufacturing value chain.

This outsourcing to ASEAN,will soak up the entire manufacturing capacity of ASEAN, boosting profits and wages in ASEAN nations.Chinese can partake in this wealth creation,in the ASEAN nations,as under:

Lending to ASEAN companies by Chinese Banks like CCB etc.
VC and PE stakes in ASEAN companies,with exits on the HKEX or NYSE
JV with ASEAN companies

Hence,there will be a continuous pipeline of transfer of technology and products from PRC to ASEAN at a competitive cost,and with a stand-by financing from Chinese Banks.

This will make the ASEAN people and the ASEAN governments DEPENDENT on PRC,and enable ASEAN to be partners in the PRC success story. Thereafter, excluding Nippon and South Korea,no other nation will ally with the Americans, and might also, not allow their ports,to be used by the US Navy – as the financial and economic loss,will be tangible and huge – with no ostensible strategic benefits, to the ASEAN nations.

Meanwhile PRC companies can focus on AI,Robotics and Nano to drive up the manufacturing value chain – with collaborations with EU companies and keep the Chinese skilled workers at the cutting edge of change.dindooohindoo

By samir sardana from Other on 04 May 2021, 14:08