If there were any businesses left out there that thought they could disregard what is going on in Asia, the global financial crisis has seen to that.
Asian economies were not intact by the credit crunch and the slump in demand from the US and Europe – still the most important markets for many Asian-based companies and multinationals. But the region’s ability to overcome those difficulties, while western economies are still languishing, has cemented the notion that the world’s economic centre of gravity is changing from west to east.
“Some companies have been pessimistically affected by the drop in western demand, but in the long term, an increase in Asian demand will become the dominant factor,” Mr Elston said.
Many countries operating in China, and in Asia normally, continue to do good business. Consumer companies such as Nestlé, Danone and Unilever have all reported brisk sales in budding markets, of which Asia forms the largest chunk. But businesses cannot take such profits for granted, chiefly as local competitors try to steal market share. If most of Asia really is persuaded that its economic performance is becoming more insulated from what goes on in the west, then the business environment for foreign companies is bound to get more difficult.
