News / Asia

Asia Looks for Hopeful Signs from Obama Speech on US Jobs

A construction site of the Hong Kong headquarters of China Construction Bank (Asia) is seen in front of Bank of America Tower at Hong Kong's financial Central district, August 25, 2011
A construction site of the Hong Kong headquarters of China Construction Bank (Asia) is seen in front of Bank of America Tower at Hong Kong's financial Central district, August 25, 2011
Ivan Broadhead

U.S. President Barack Obama is expected to outline his plans for boosting American employment and shoring up an economy that some analysts fear may be headed to another recession.  Although his speech Thursday is mainly aimed at Americans, the stumbling U.S. economy is of great concern in Asia, where there are expectations that growth in China  will reach a 10-year low and other nations may be economically vulnerable.

Asian countries have posted steady economic growth during much of the last decade, but the dean of business at Hong Kong University of Science and Technology, Leonard Cheng, says U.S. fiscal well-being remains crucial to the region’s continued growth.

"Asian economies are very much externally oriented. Many of them depend on exports of goods to the U.S., Europe and Japan. Since the U.S. still accounts for one quarter of the global economy, you can imagine that the U.S. is very important," he said.

Cheng expects Obama to focus on sustainable growth and job creation in his speech.  He says Asian governments are eager for the U.S. economy to once again become an engine for growth.

Singapore, which witnessed 15 percent growth last year, announced this week that it expected to move back into recession next quarter on a drop in U.S. exports exacerbated by fears about European sovereign debt.

Further north, Seoul is hoping that the U.S. Congress will ratify a Free Trade Agreement between Korea and the U.S. so both countries can benefit from a relaxation in bilateral tariffs.

However, with both Democrats and Republicans worried that it could lead to thousands more American jobs lost overseas, the deal may not have the votes to pass.

Perhaps most exposed to the U.S. downturn is China.  More than 20 percent of its total exports are bought by U.S. consumers and Beijing holds $1.2 trillion of U.S. Treasury Bonds.   Cheng calculates that exports from China to the United States still account for between four and six percent of China’s GDP.

This week Huang Guobo, chief economist with the State Administration for Foreign Exchange, reported that China’s growth is softening and could fall below nine percent next quarter, its slowest rate since 1991.

Cheng argues that Asian governments, particularly Beijing, must satisfy themselves with a more gradual rate of growth. He says Americans have to change their consumption habits if the President’s plans are to be effective.

"Work harder, yes, but consume a little bit less so that they can have enough savings to pay off their debt - at least not let their debt grow larger and larger. And, Asians need to be aware that this is good for the U.S. and good for them too in the long term. Even though in the short term, everyone wants to sell as much as possible to the United States," said Cheng.

World Bank President Robert Zoellick said Monday that he hopes China can boost global economic growth by expanding domestic demand and reducing its reliance on exports.

Sophie Leung, a Hong Kong legislator and deputy to China’s National People’s Congress, says she is confident that China can play a role in assisting the U.S. recovery as increasingly affluent consumers look to purchase American goods.

"As the new 12th Five Year plan indicated, China would like to divert from export to import. And, I think this is something that President Obama might be catering his speech towards; tapping that [demand]. As China’s consumers start waking up, [they will] want choice, and I think American products have a lot to offer, beyond just Coca Cola and jeans," she said.

For poorer Asian countries, cuts of more than 40 percent to U.S. development budgets could take a more serious toll on vulnerable economies.  Cheng says regional instability could become a concern the longer it takes the United States to struggle back to profitability.

"I think Asian governments already are under pressure now because of inflation and a very uneven income distribution and wealth distribution," said Cheng.

After President Obama’s address, attention will likely shift to Friday’s G7 meeting in Marseille for a further indication of how the United States and other leading economies can collectively support global growth and job creation.

You May Like

Will Cuba Follow the Southeast Asia Model?

Decision to restore ties between US and Cuba has some debating whether it will lead to enhancement or regression of democracy for Communist island nation More

Kenyan Designer Finds Her Niche in Fashion Industry

‘Made in China’ fabrics underlie her success More

Report: CIA, Israel's Mossad Killed Senior Hezbollah Commander

The Washington Post story says Imad Mughniyah was killed instantly by a bomb "triggered remotely" from Tel Aviv by Mossad agents More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Jefferson's Library Continues to Impress, 200 Years Lateri
X
Deborah Block
January 31, 2015 12:12 AM
Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Jefferson's Library Continues to Impress, 200 Years Later

Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

In the mid-1980’s, thousands of Sudanese boys escaped the country's civil war by walking for weeks, then months and finally for more than a year, up to 1,500 kilometers across three countries. The so-called Lost Boys of the Sudan had little time for games. But one of them later mastered the game of chess, and now teaches it to children in the New York area. VOA’s Bernard Shusman in New York has his story.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid