Central and East Asia
Key Emerging Markets: China, Mongolia
Major Industries: Oil, Natural Gas, Steel, Copper, Construction, Uranium, Food production
As the world's most populous country and the world's second largest economy, China has witnessed a formidable history of impressive political, economic and societal developments since the establishment of the People's Republic in 1949. Since Xi Jinping came to power in 2013, the main driving themes of his administration include economic reform to boost market forces and lead the nation into a consumer-based economy rather than a manufacturing factory for the world as well as an anti-corruption campaign that aims to clean up China's government. China's economy is predicted to slow further as demand for exports has decreased amidst an uncertain global environment.
Stability of Region
China’s phenomenal growth over the past decade has secured its grip on internal stability although the nation has seen occasional outbursts of ethnic violence in the Tibet and Xinjiang regions. As an emergent economic powerhouse, China has been successful in building its international presence through foreign diplomacy and investments. Increased aggression in its foreign policy has also exposed the nation to mounting geopolitical tensions in the East and South China Sea, Middle East and Africa. Additionally, China's government still holds a firm stance against free speech and human rights as they actively silence political dissenters and tightly limit social media. China has also limited access to foreign news by restricting rebroadcasting, blocking websites using an extensive firewall system.
China and East Asia is highlighted as one of the fastest-growing regions in the world with steady economic growth that is driven by the hydrocarbon sector and firm domestic demand, as growth has been mainly driven by exports and foreign direct investments for the past decade. China's 13th Five-year plan for the years 2016 to 2020 provides an economic framework that includes a deeper commitment to market competition and private investment particularly in the oil and gas sector and other large SOEs amidst a slowdown in the economy.
With the Trump administration calling for greater US manufacturing as well as talks of a potential trade war against China, the Chinese government will have to keep a close eye on the United States for further developments with its biggest trading partner.
With the renewed political will, China is likely to see a new era of stable single-digit economic growth at around 7% for the next five years. For Mongolia, its economy will continue to be heavily reliant on the mining and infrastructure industry, and recent government support for foreign investments suggest further economic development.