China needs to strengthen its AIIB balancing act

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Authors: Kai He, University of Copenhagen; and Huiyun Feng, DIIS.

The Asian Infrastructure Investment Bank (AIIB) has become part of Xi Jinping’s ‘Chinese Dream’ of national rejuvenation. The United States’ failure to block other developed economies from joining the AIIB seems to have brought this part of the ‘Chinese dream’ closer to its realisation. But it is way too early to celebrate. Read more…

China–US economic relations no zero-sum game

US President Barack Obama and Chinese President Xi Jinping drink a toast at a lunch banquet in the Great Hall of the People in Beijing on 12 November 2014. (Photo: AAP).

Author: Li Shengjiao, Ministry of Foreign Affairs, China

The ‘China threat theory’ is once again in vogue, as US President Barack Obama pushes to overcome domestic resistance to the Trans-Pacific Partnership (TPP). Read more…

Modi tinkering at the edges of trade policy

Indian Prime Minister Narendra Modi poses with supporters on 11 April 2015 after his visit at the WWI Indian Memorial of Neuve-Chapelle-Richebourg, northern France. (Photo: AAP)

Author: Rajiv Kumar, Centre for Policy Research, India

The Foreign Trade Policy of the Modi government, announced by trade minister Nirmala Sitharaman in early April, represents business as usual. It aims at only incremental change rather than the bold new beginning that is needed if India is to ‘assume a position of leadership in the international trade discourse’. Read more…

The birth of the insecure class in South Korea

Civil servants hold their union flags during a rally to oppose the government's bid to overhaul the public pension system in Seoul, South Korea, 28 March 2015. (Photo: AAP).

Author: Yoonkyung Lee, SUNY

The South Korean economy advertises its international prowess through the popularity of global brand name products from Samsung Galaxy phones to the Hyundai Sonata. Hidden behind these triumphant global achievements is a phenomenon of widening economic polarisation. Read more…

AIIB miles ahead of TPP in promoting integration

US President Barack Obama and Chinese President Xi Jinping head for their bilateral meeting in California on 7 June 2013. The United States is currently attempting to thwart the China-led AIIB by completing the TPP. (Photo: AAP).

Author: Andrew Elek, ANU

The Asian Infrastructure Investment Bank (AIIB) is a far more economically efficient option than the Trans-Pacific Partnership (TPP) for integrating Asian economies to each other and to the rest of the world. While the United States is attempting to thwart China’s AIIB by completing the TPP, it is likely to result in net costs to countries other than the US. Read more…

Modi changes the state of play for Indian federalism

Indian Bharatiya Janata Party (BJP) national president Amit Shah (L), Prime Minister Narendra Modi (C) and Finance Minister Arun Jaitely look on during a BJP office bearers' meeting held on the eve of the party's National Executive committee meeting in Bangalore on April 2, 2015. (Photo: AAP).

Author: Pravakar Sahoo, IEG

India’s 14th Finance Commission has made some fairly revolutionary statutory recommendations.

The commission proposed increasing the share of the ‘divisible pool’ — the pot of tax revenue that is allocated between the federal and state governments — that goes to states without any strings attached from the 32 per cent recommended by the last commission to 42 per cent. This would represent a historic increase. Read more…

How to solve Japan’s fiscal sustainability issues

A man looks at an electronic stock board of a securities firm in Tokyo, 27 March 2015. (Photo: AAP).

Authors: Takashi Oshio, Hitotsubashi University, and Kazumasa Oguro, Hosei University

Japan is facing a dual problem of an ageing population and increasing government debt. While pension payouts will balloon out in the next decade, a low tax base means that the government will struggle to finance this. Read more…