The East-East Economic Axis
H.H Sheikh Mohammed Bin Rashid Al Maktoum brought an entourage of 50 business leaders and throngs of government support to advance trade between the two economies which are both expanding around 10 percent a year.
While a great deal of this was largely for the cameras, with President Hu Jintao for example handing over the official invitation in a
Merchandise trade however between
The Chairman of Dubai World, Sultan Ahmad bin Sulayem talks of the “excellent” bi-lateral relations and his group has placed investments on port projects in
During an interview this week on Marketplace Middle East, the former Prime Minister of Pakistan, Shaukat Aziz, underscored the point saying there are no competing interests. The Gulf needs Chinese goods, capital and construction groups.
While energy security may represent the lion’s share of Chinese foreign policy and its investment decision making (look at Africa for inspiration), it is re-drawing the map of the
Beyond trade links, there is a less obvious common ground that
While Sheikh Mohammad was busy exploring b-lateral investments, a key executive at CIC sounded more “Gulf like” when he said “we are facing rising protectionism and nationalism”. After seeing his stakes in Citigroup and Blackstone suffer, CIC has publicly stated it is looking for conservative returns for their $200 billion fund.
Expect more discussions on this front and some unusual partnerships. Overlooked in analysis over a
Representatives from sovereign funds GIC and the Abu Dhabi Investment Authority met with U.S. Treasury Secretary Henry Paulson and Deputy Treasury Secretary Robert Kimmitt and agreed on the principles that will govern best practices for investments. This process will wind its way through organizations like the International Monetary Fund and the O.E.C.D., the
While that gathering did not capture the headlines of Sheikh Mohammad’s delegation, it is another example of the new East-East economic axis and the deals and partnerships that are set to emerge along with these markets.
ABOUT THIS BLOGJohn Defterios’ blog accompanies the weekly business program, Marketplace Middle East (MME) that is dedicated to the latest financial news from the Middle East. As MME anchor, John Defterios talks to the people in the know, finding out their opinions on the big business moves in the region, he provides his views via this weekly blog. We hope you will join the discussion around the issues raised.
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