Driver #3: Cooperation and strategic influence
China’s decisive move to speed up its influence agenda will help put the Chinese consumer at the center stage. A couple of examples of the Chinese block approach: First, the Regional Comprehensive Economic Partnership could be a game changer. The group, which involves China, Japan, South Korea, India, Australia, New Zealand and ASEAN members represents 25 percent of global households’ consumption, 27 percent of global imports of goods and services, and 45 percent of global savings – an impressive amount to finance home-grown investments. Secondly, One Belt One Road (OBOR), which could also initiate a positive feedback loop from investment and trade to consumption. The strategy aims at boost connectivity and cooperation across countries in Asia, Europe, Middle East and Africa through infrastructure investment.
These two initiatives come on top of a myriad of bilateral agreements that China has been sealing with countries from Iran to the U.S. to Panama and Angola, across sectors. As a result, the Chinese consumer’s tastes have changed, in sync with China’s selective opening to the rest of the world. Going forward, we believe that economic diplomacy will continue to boost the share of global consumption coming from China.