Asia Insights Weekly: China on the Rise

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January 15, 2013       Your Weekly Update from The Heritage Foundation's Asian Studies Center China’s Global Investment Rises By Derek Scissors, Ph.D. In 2012, Chinese outbound investment set new records both in the U.S. and around the world. North America has jumped to the forefront of Chinese business activity, but this development is likely to be temporary: The pattern over time is for Chinese enterprises to move as a group from region to region. Energy and metals draw the most money. The outlook for Chinese investment in 2013 and beyond is positive, but setbacks will continue to occur, due in part to foreign suspicion of state firms. The U.S. in particular should formulate policy to ensure competition, with the Chinese firms that come here, in the Chinese market itself, and around the world through the Trans-Pacific Partnership and other agreements that liberalize market access. Key Facts: Chinese outward investment around the world set another record in 2012. The rate of increase was again moderated by foreign distrust of Chinese state enterprises. Energy continues to attract the most Chinese money, while North America became the most popular destination for Chinese firms. Chinese investment in the U.S. in 2012 shattered the previous annual record. This benefits American workers and households. Read the Full Report >>

North Korea's Insincere Charm Offensive North Korean leader Kim Jong-un continues to dazzle the world. The New Year dawned with Kim Jong-un giving a New Year’s Day policy speech rather than issuing a written editorial like his reclusive father Kim Jong-il. The media are now awash with articles predicting that Kim has turned over a new leaf and is willing to bury the hatchet with South Korea. But that's naively optimistic. Read Why >> Unleashing the Market in the India-U.S. Economic Relationship India will soon have the largest population of any country in the world. It therefore has the potential, with extensive and difficult reforms, to become the world’s most important free market—a position currently held by the United States. It follows directly that the economic relationship between India and the U.S., if allowed to flourish, can greatly benefit the citizens of both. Explore Part One of this Special Report >>

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