Anti-globalisation view challenges Asian economic integration

BOAO, Hainan, Apr 08 (Xinhua): The anti-globalisation sentiment that originated from the West continues to spread over the world, and is challenging Asian economic integration, a report released by the Boao Forum for Asia (BFA) said Sunday.
According to the "Progress of Asian Economic Integration Annual Report 2018," a cautious attitude should be adopted to predict the future of Asia's economic integration.
Although there were some good signs for Asia's trade performance in 2017, globalization-the most important driver of Asia's economic integration-faces unprecedented challenges, the report said. With deteriorating economic growth and growing trade deficits in the United States and some members of the European Union (EU), the traditional model of Asia's global value chain-where intermediate parts and components are sourced from Asian partners and assembled locally before the final goods are exported to the United States and Europe-faces difficulties, it said. The market forces seem to be at work to reshape the basis of globalization-the global value chain. New innovations in precise machines, robots, 3D technology and lower resource costs may bring some manufacturing capacities back to the developed countries.
The report also noted that the United States and EU absorbed 96 per cent of the world total portfolio investment in 2016. This pattern of capital flow would expose Asian economies to high risks of capital flight and higher cost of financing.