I'n the escalating contest between the West and the Rest, it is now clear that the West, while still packing the more powerful punch, is weakening. In the Asia-Pacific, the US Navy's stance has shifted from dominance to deterrence. In the economic sphere too, Washington has switched from being on the offensive (technology bans, trade restrictions and financial sanctions) to playing defence (putting up a tariff wall around the US market). And Western support for Ukraine has not stopped Russia. Mao had declared somewhat ahead of time that the East wind prevails over the West wind. That may now be beginning to happen.
For years, Western analysts and journalists misread both China and Russia. The latter was portrayed as economically vulnerable and Vladimir Putin as politically challengeable, perhaps even terminally ill. China's collapse has been forecast for decades; more recently, it has been seen as beleaguered. Yet Russia has withstood Western sanctions unexpectedly well, it has gained the upper hand in Ukraine, and Mr Putin has been elected to a fresh term in office. China, meanwhile, remains the fastest-growing among economies with comparable income levels.
The steep tariffs that the US has announced recently on some Chinese products do not signal a full-scale trade war since they target items that China does not sell much in the US. So the signalling may be primarily to President Joe Biden's domestic political base. Regardless, China remains the dominant producer of many of the targeted products, and can find other markets. It is US importers who may have no alternative sources of supply for some items.
China could also route supplies through factories in third countries. Meanwhile, American consumers will pay through inflation.
Such defensive ploys (the flip side of a subsidyladen policy to revive American manufacturing) ILLUSIKATIUN. DINAI SINПA contrast with the offensive thrust of earlier moves.
Bu hikaye Business Standard dergisinin May 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Standard dergisinin May 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
Indian sports beyond the boundary
Little has been written about Indian sport, and practically nothing about the governance challenges as sport is powered by commerce.
Expansion of Ayushman Bharat a priority
Expansion of Ayushman Bharat Yojana to cover everyone aged above 70 years, launch of the National Health Claims Exchange (NHCX) and a special drive against tobacco use among youngsters were among the top agenda items discussed during the first high-level meeting chaired by Union Minister of Health and Family Welfare, JP Nadda on Friday.
MAKING A RACQUET
At long last, India has a player in the top 100 ATP rankings. But can Indian tennis match the success of badminton?
Will rural consumers roar?
\"Rural FMCG growth overtakes urban after 5 quarters,\" read the headline (Business Standard, May 8, 2024).
MFS or NPS? Go for both if you don't mind latter's lock-in
If one were to compare the category average returns of Tier-I equity plans of the National Pension System (NPS) with the direct plans of largecap mutual funds (MFS), the latter have a small edge currently.
Ambuja eyes more buys after Penna deal
Adani Group aims to become leader in cement sector in 4 years
Sensex, Nifty hit lifetime highs
Benchmark equity indices Sensex and Nifty hit their new closing lifetime highs on Friday, following buying in market heavyweights HDFC Bank, Reliance Industries and Mahindra & Mahindra amid encouraging export data.
Short-term margin overhang likely for Tata Communications
The management of Tata Communications presented its product-to-platform strategy and explained how it hopes to grow its new products and portfolios, and geographies.
CLSA sees further rerating scope in Vedanta
Shares of Vedanta rose as much as 2.8 per cent on Friday after the Hong Kong-based brokerage CLSA in a report said there was scope for further re-rating for the stock.
Abrdn favours Chinese, Indian stocks on policy boost hopes
Abrdn Plc prefers Chinese and Indian stocks over their Japanese peers in the next three to six months, betting that the right policy moves would help the two emerging markets lure fund inflows.