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Salman (not verified) January 30, 2012

Asian countries do not understand Chinese financial system to finance their trade. They turn to European banks. The European sovereign debt crisis is causing inter-bank lending freeze which, in turn, is hurting Asian economies to finance their trade. Well, an European buyer would be able to open letter of credit (LC) to import Asian goods when there is freeze of inter-bank lending. In other words, due to existing/impending recession (means low demand of Asian products and services) and freeze of inter-bank lending in Euro zone, exports of Asian economies are suffering a setback. Hence, any sovereign debt default in any fragile economy of Euro zone will trigger flight of capital from fragile European countries to safe heaven like Germany or USA. That will reinforce export and trade finance problems of Asian countries. Right now, crisis in Euro zone is like the slow motion catastrophic journey of a train!!

Richard (not verified) February 03, 2012

Very good observation about the financial impact of the european recession. You could add up to that the fact that the decrease of european imports will get tougher as austerity-based policies are gaining weight. So more than ever, the challenge for Asia is to balance this negative european impact with an increase in regional trade. At a risk: seeing a growing imbalance between China and the other asian emerging countries. Best, R

Mukena Bali (not verified) September 22, 2016

NATO is an Organization that have a goal to make Peace , so its clear that peace is a must .

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