Despite all the fears and doubts about what a Donald Trump presidency would mean for Japan, it looks as though Japan may come out ahead during 2017 after Donald Trump officially takes office on January 20, 2017. One of the first areas the new Trump presidency will bring into question and possibly end, is the Trans-Pacific Partnership (TPP) agreement. Japan after negotiating for large energy contracts and economic trade with Russia, is in a far better position to dominate multinational free trade agreements of its own. The TPP excludes China and this is important because China will be closely examining American corporations if Donald Trump sends the US and China into a trade war. Japan’s domestic economic policy is hinged on consumption, so this will apparently be Japan’s major focus going into 2017. That might be a difficult proposition considering Japan’s decreasing population.
Source: Asia Times
Who will be Asia’s winners and losers under Trump in 2017?
By Nigel Green
January 8, 2017
In just a matter of weeks, Donald Trump will enter the White House as the 45th President of the United States.
Naturally, his administration’s policies will have an impact across the globe.
Trump is a political firebrand and his rhetoric has helped placed him, in the eyes of most commentators, analysts and economists, as one of the biggest ‘headwinds’ for 2017. He will certainly be a dominant force in shaping a very different investment landscape in Asia than we have seen over the prevailing six or seven years.
Understandably, all eyes are on his relationship with China. In recent months, Trump has publicly attacked Beijing for ‘unfairly’ manipulating its currency, being lax on North Korea, slapping taxes on American goods, provoking military issues in the South China Sea, and questioned the well-established ‘One China’ policy.
And in what has been perceived as the ramping up of ‘tough talk’ between the world’s two largest economies, last week China slammed Trump over his use of Twitter to conduct international diplomacy in an op-ed published by the country’s main news agency.
In addition, China is “prepared to step up its scrutiny of US companies in the event Trump takes punitive measures against Chinese goods and triggers a trade war after he takes office,” according to Bloomberg.
It is my belief – and hope – that China-Trump tensions will significantly simmer down after he takes office. This is because a problematic relationship would have negative results for both countries.
Should there be a breakdown in ties, China’s economy would be hurt if Trump imposes increased tariffs on Chinese products and slaps restrictions on Chinese investors writing business in America. Whilst, American firms and consumers would lose access to China’s low-cost labor and cheap imports, and the US might no longer be able to borrow any more money from Beijing, which has lent more money to the States than any other country.
Yet whilst the China-Trump debacle remains wholly unpredictable and is likely to take center stage for 2017, there is an Asian nation that I am confident will do pretty well in the year ahead thanks to the President-elect’s plans.
Please go to Asia Times to read the entire article.