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How do SE Asian countries view US returning to Asia? (3)

By Ding Gang, Sun Guangyong, Ji Peijuan, Yu Jinghao, Wang Hui, Han Shuo and Liu Hui (People's Daily)

10:02, December 15, 2012

3. What disadvantages could America’s “return to Asia-Pacific” bring to U.S. economy and Mideast Situation?

Simon SC Tay: Generally, economy strength is the foundation of political power. The United States is unable to give much support to the “return to Asia-Pacific” strategy, due to its own fiscal problem; therefore the return starts to show negative side effects. There are some common worries concerning America’s economy recession. Even if the U.S. could avoid falling off the fiscal cliff, the huge amount of debt will possibly overshadow the continuous economy recovery. Moreover, the endeavor it has made to revive the economy may affect negatively on other countries. The Obama administration could possibly continue to adopt the loose monetary policy and the low interest rate policy, which will lead to weakening of U.S. dollar, change of asset prices and further affect new markets in the world. This factor poses a great challenge to the interaction between the U.S. and Asia.

Thitinan Pongsudhirak, Director of the Institute of Security and International Studies, Faculty of political science, Chulalongkorn University:The United States’ financial restriction makes the “return to Asia-Pacific” strategy doubtful. Besides, to what extend could it finally carry out the policy is yet to be considered given that it has long been trapped in the Mideast issues. On the whole, the retuning policy has limitations, but will still be able to make differences in the Asia-Pacific.

Suzie Sudarmana, lecturer in the Department of International Relations Universitas Indonesia and the Director of the American Studies Center Universitas Indonesia:

The rebalance in the Asia-Pacific carried out by the U.S. fulfills India’s hope of dynamic balance in Asia-Pacific. American garrison in Asian-Pacific could be welcomed by some countries. However, many countries in the region have doubted whether the U.S. has the money and intention to fulfill its promise. Most countries are skeptical about what differences could possibly be made, as China possesses more advantages in the trades. In Southeast Asia, aside from the Philippines, there are more countries having more frequent trades with China than with the U.S.

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