The US-China trade war may be set to leave a trail of damage across some sectors of the global economy but it seems to be having the inverse effect in Asia, according to experts.

To coincide with the release of its Wealth Report 2020, Knight Frank spoke to Eurasia Group political scientist Dr Ian Bremmer, who said Chinese global influence had expanded in the wake of trade tension with the US.

“[The trade dispute with the US] has benefited the country’s world standing as the Chinese have forged closer links with Latin America, Africa and Europe – they are playing the long game,” he said.

“China is consolidating its power with a number of measures, including anti-corruption campaigns, the Belt and Road Initiative (BRI), AI 2030 and Made in China 2025. The transformation is extraordinary in China and globally in the reaction to China,” points out Ian Bremmer.

In March 2019 Italy became the first G7 nation to sign up to the BRI.

Dr Ian Bremmer. Source: Knight Frank

Dr Bremmer told Knight Frank that as this influence spreads, companies may find themselves more strategically aligned with Chinese systems, which could create a level of “conditionality”, such as buying more Chinese goods.

Singapore-based Peck Boon Soon of RHB Bank notes that this will contribute to global growth.

“As China will remain a driver of economic growth and wealth, countries that link with China should be able to ride on the next wave of growth.”  

Dr  Bremmer said the nature of the investment would depend on the orientation toward China.

“Build a port or a railroad, [and] everyone can use it,” he said.

“Yet when you have a Chinese data and surveillance system, that orients the country towards Beijing.”

Click here to download the Knight Frank 2020 Wealth Report.

Similar to this: 

Opportunity areas remain amidst geopolitical and economic uncertainties in Asia

Real estate investors grow more cautious as global economic and political uncertainty rises

Hong Kong investors wary of market slow down, says Colliers International