By South China Morning Post | Created at 2024-11-19 09:15:20 | Updated at 2024-11-19 11:37:14
2 hours ago
Asia is expected to drive most of the global growth this year even as geopolitical uncertainties and additional tariffs loom amid Donald Trump’s return to the White House, business leaders said at a summit in Hong Kong on Tuesday.
The “China plus one” strategy, where investments are redirected from China to neighbouring economies as a hedge against tariffs and geopolitical risks, will boost Asia’s growth as a whole, Georges Elhedery, group CEO of HSBC Holdings, said at the Global Financial Leaders’ Investment Summit.
About 50 per cent of the foreign direct investment (FDI) in Asean is from China, making it the largest investor in the Association of Southeast Asian Nations, he said during a panel discussion on “Investing in Asia: outlook and opportunities”. China’s FDI in the 10-nation bloc stood at US$25.12 billion last year, increasing by more than a third from 2022, according to data from business consultancy Dezan Shira & Associates.
“Asean has also become the largest trading partner for China, ahead of Europe and the United States,” Elhedery said. “There is a material benefit, [a] material virtuous circle has been created in Asia with this ‘China plus one’ opportunity,” he said.
Asia is expected to remain the world’s growth engine. The region is likely to post 4.6 per cent growth this year, contributing about 60 per cent of global growth, according to the International Monetary Fund. Next year’s growth is expected to come in at about 4.4 per cent.
