Rising Asia to change world pattern (2)

The role of new growth poles in Asia cannot be ignored. Biswas said that China became the world's second largest economy and increased its importance as an export market of other Asian economies, which can help to alleviate the negative effects of the European debt crisis on Asia.

The second negative effect of the European debt crisis is that the European banks seriously reduced international loans to Asia, which had been being an important source of Asian trade and merger financing. However, Asia is now able to cope with the withdrawal of European loans and many Asian banks also expanded credit activities and won new Asian customers.

Chen Kang, a professor at Lee Kuan Yew School of Public Policy of the National University of Singapore said that this is because that the Asian and European financial markets are not so closely linked with each other, and only the open international financial centers such as Singapore and Hong Kong have a close relation with European banks. The Asian financial market now remains a smooth circulation and the withdrawal of capital by European banks does not cause concerns for the public.

Asia will have smaller dependence on Europe and the United States in the future

Experts generally believe that as the main source of imports and investment for European Union’s, Asia will become more important to it in the next 10 years, while the E.U. will lose its influence over Asian countries. Biswas said that the Asian economy will rely less on the E.U. in the long run due to its slow economic growth and Asia’s relatively rapid growth. This will greatly promote the trade among Asian countries as well as South-South trade between developing countries in Asia and other regions.

Chen said that the world’s economic center of gravity started shifting eastward long ago, and the process has become more obvious after the global financial crisis erupted. Asia, particularly East Asia, is increasingly becoming the new engine for world economic growth. East Asia is expected to account for one-third of global economic output in the next 10 years, and may even become the locomotive for the world economy and surpass Europe and North America in terms of the share in global economic output.

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