Despite the risks of further differentiation of the global economy, Asia will remain a beacon for growth, opportunities and prosperity.

Deputy Prime Minister and Minister of Trade and Industry Yan Jinyong delivered the above views at a seminar hosted by the US Consumer News and Business Channel (CNBC) on Wednesday (March 12).

In his keynote speech, Yan Jinyong pointed out that many people in Asia were upset about US President Trump's tariffs on three major U.S. trading partners and his plan to implement more tariffs, including measures to adopt reciprocal tariffs. In addition to retaliatory tariffs, countries may adopt other protectionist measures, such as setting import quotas, export controls or investment review requirements.

Some parts of Asia may not be directly affected by Trump’s tariffs, but rising tariffs and trade wars will still cause significant interference to the supply chain, slowing trade and investment expulsions and significantly dragging down global economic growth.

Despite this, Yan Jinyong is optimistic about the prospects in Asia. “While there is a risk of further economic divergence, we still have good reason to be optimistic that Asia remains a beacon for growth, opportunities and prosperity,” he said.

Further reading

Yan Jinyong: Facing unprecedented challenges Singapore is cautious about growth but not losing confidence

Yan Jinyong: Facing unprecedented challenges Singapore is cautious about growth but not losing confidence

[Parliament]Yan Jinyong: Tariff measures may be upgraded. Our country can still seize opportunities to attract new investments
[Parliament]Yan Jinyong: Tariff measures may be upgraded. Our country can still seize opportunities to attract new investments

He pointed out that by 2030, the Asian economy is expected to grow from a ratio that currently accounts for less than 50% of the global GDP to about 60%. By then, Southeast Asia, located in Asia, is expected to become the fourth largest economy in the world.

Meanwhile, Asia's fundamentals are strong, with countries such as Indonesia, India and Vietnam having a young and growing population. The rise of the middle class has also driven consumption growth, as well as good physical and digital connectivity, supporting trade and investment flows.

Yan Jinyong believes that in order to realize its potential in Asia, it is necessary to build an open, integrated and innovative region to promote trade, talent flow and investment.