Building the basis for India–China cooperation

Chinese vice president Li Yuanchao chats with Indian vice president Mohammad Hamid Ansari prior to their meeting in New Delhi, India, 6 November 2015. Chinese vice president Li Yuanchao is in India on a state visit to strengthen the political and bilateral ties between the two countries. (Photo: AAP)

Author: Sana Hashmi, Centre for Air Power Studies

Chinese Vice-President Li Yuanchao paid a high-profile visit to India from 3–7 November 2015. This was the first time that a Chinese Vice President had paid a state visit to India. The visit followed two other high profile events: Chinese President Xi Jinping’s visit to India in September 2014 and Read more…

Is RMB in the SDR a blessing for China?

China will deliver a slew of economic and financial reforms over the next five years, which will help the yuan become an international currency by 2020, according to Chinese central bank governor Zhou Xiaochuan. (Photo: AAP).

Author: Masahiko Takeda, Hitotsubashi University

On 13 November 2015, the IMF’s Managing Director, Christine Lagarde, released a statement that an IMF Executive Board meeting will be held on 30 November to decide whether to include the Chinese reminbi (RMB) in the Special Drawing Rights’ (SDR) valuation formula. She said: ‘IMF staff assesses that the RMB meets the requirements to be a “freely usable” currency and, accordingly, the staff proposes that the Executive Board … include it in the SDR basket’. Read more…

Productivity lessons for Asia’s tiger cubs

Victoria Harbour in Hong Kong is famous for its fast  owing commerce. Trade and openness helped the small island nation and other Asian ‘Tigers’ to develop rapidly by assimilating foreign technology. (Photo: AAP)

Authors: Lawrence J. Lau, CUHK and Jungsoo Park, Sogang University

The high and persistent growth of the four Newly Industrialised Economies — also known as the East Asian Tigers: Hong Kong, South Korea, Singapore and Taiwan — from 1970 to 1990 prompted much debate about the drivers of growth in these economies. There have been numerous studies looking into this issue, but they have not yet been able to reach a common conclusion. Read more…

Japan’s post-Fukushima energy challenge

Workers inspect contaminated water storage tanks at the Fukushima nuclear power plant in Okuma. Following the Fukushima disaster, re-opening nuclear power plants throughout Japan will require a major change in the public mindset. (Photo: AAP).

Author: Hugh Patrick, Columbia Business School

Energy is probably Japan’s greatest vulnerability, both in environmental terms and in assured sources of supply. Japan’s long-run energy policy is simple — obtain stable supplies at low cost — but implementation is complex in what is a global, dynamic, rapidly changing set of related industries. Read more…

Looking after this generation in Asia, and the next

Children scatter autumn leaves into the air at dusk in Tokyo, Japan, 21 November 2015. (Photo: AAP)

Author: Peter Drysdale, East Asia Forum

The issue of the sustainability of economic growth is a hot issue in the debate about economic policy. Growth, as measured through change in GDP, means that people are better off, but it does not mean that people will continue to enjoy a higher standard of living in the future. Sustainability means that social consumption can be at least as high in the future as it is now. Read more…

Facing up to the long-term fiscal challenges

Unionised civil servants hold their union flags during a rally to oppose the government's bid to overhaul the public pension system near the National Assembly in Seoul, South Korea, 28 March 2015. South Korean President Park Geun-hye called for parliamentary endorsement of a bill meant to reform the pension system for civil servants in the latest appeal to reduce the government's growing pension deficit. (Photo: AAP)

Author: Alan J. Auerbach, UC Berkeley

The global financial crisis (GFC) that precipitated the worldwide great recession in 2008 has largely subsided. Capital markets are generally operating smoothly, liquidity has been restored and new initiatives toward financial regulation are aimed at reducing the likelihood of recurrence. But in other respects the effects of the crisis live on. Read more…

ASEAN’s uncertain stance in the South China Sea

This US Navy photo obtained November 4, 2015 shows the aircraft carrier USS Theodore Roosevelt (CVN 71)as it transits the South China Sea on October 29, 2015. Theodore Roosevelt is operating in the US 7th Fleet area of operations as part of a worldwide deployment en route to its new homeport in San Diego to complete a three-carrier homeport shift.  US Defense Secretary Ashton Carter said he would visit the American aircraft carrier in the South China Sea on November 5, 2015 as US-Chinese tensions over the waterway escalate. Speaking after a regional summit November 4, 2015, Carter said he would fly out to the nuclear-powered USS Theodore Roosevelt, which "is conducting routine operations while transiting the South China Sea".  AFP PHOTO/US NAVY/ Specialist 3rd Class Anthony N. Hilkowski  = RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "AFP PHOTO /US NAVY/ Specialist 3rd Class Anthony N. Hilkowski " - 

Author: Chau Bao Nguyen, University of East Anglia

After months of speculation, the USS Lassen sailed within 12 nautical miles of an artificial Chinese island on 27 October 2015. In doing so, it completed the first in a series of planned freedom of navigation operations in the South China Sea (SCS). The operation is the strongest assertion yet by the US Navy that it rejects Chinese reclamation projects, which could escalate tensions in the region. Read more…