How Trump’s Asia trade strategy can be a win-win for the US and China

Tara Joseph says the recent US-China trade deal and Trump’s plans to visit the region signal greater engagement, with global benefits

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Published: 4:45pm, 16 May 2017Updated: 11:37pm, 6 Jul 2017

The importance of trade between the US and Asia cannot be underestimated. Illustration: Craig Stephens

It has been a nail-biting few months for American firms operating in Asia, and it’s been even more tense for companies whose bread and butter is trade with China.

Will the enormous progress of opening markets and pushing for the free flow of goods around the world falter? Could the years of working for an open global economy crumble despite all the hard work and effort?

Asia accounts for about 60 per cent of the global economy, and American companies are heavily engaged

These are huge questions which have become front and centre of discussions after decades of a major trend towards globalisation. Yet, even if global trade deals unravelled, businesses would struggle to quickly transform their strategies, especially after investing both time and money in markets around the globe, especially here in Asia.

Asia is the fastest-developing market for both goods and services. There is a rising middle class, fresh potential for large infrastructure projects stretching from Sri Lanka to Philippines, and a developing pipeline of opportunities for finance, law and technology firms.

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Asia today accounts for about 60 per cent of the global economy, and American companies are heavily engaged across the region. There are over 1,400 US companies operating in Hong Kong alone.