Changing Global Politics | Financial Buzz

Changing Global Politics

Global economy and politics are going through a churn. North Korea and South Korea, after decades of enmity, have come to an understanding. The eastern part of Asia is now the cynosure of the world. The Indian subcontinent more so.  Narendra Modi, the Indian Prime Minister, visited the Chinese city of Wuhan and held about six meetings with his Chinese counterpart President Xi Jinping. These do not mean all is well. President Donald Trump of the United States criticized India alleging the latter stole jobs. He said that the US will not take offense if China and South Korea begin a dialogue with the hermit North.

Economy all around

Analysts believe China aims to enlarge Shanghai Cooperation Organization and Modi wants to strengthen BRICS. Both of these continue to happen even when India is cautiously observing the One Belt and Road initiative by China. Wang Yi, the Chinese Foreign Minister, said that the Indian elephant and the Chinese dragon will not fight each other but dance. Modi followed a similar diplomatic thread and said the two countries can dream a prosperous future together.

Even though Trump spoke hard words about India against the transfer of jobs to the latter, Jim Mattis, the Defense Secretary, want to separate India from Russia. The US plans to impose sanctions on Russia. At the end of the day, all countries want economic benefits, including Trump, Xi, Moon Jae-In of South Korea, and President Emmanuel Macron of France. Joining the club are countries like Sri Lanka, Vietnam, Bangladesh, and Myanmar.

Crown diplomacy

North Korea's muscle-flexing apparently worked in its favor. It succeeded in making terms even when it did not concede anything to anybody. Analysts are unsure whether Pyongyang's success is the result of Kim Jong or a masterstroke by the Trump administration. China was relieved by developments. Beijing itself has won the battle with Washington. President Xi successfully averted the sanctions threat against North Korea. If it had happened, then the trading between China and North Korea would have been hit. The EU would also be affected as the trade bloc has substantially profitable relations with the East Asian economies.

It is apparent that a new history is being written. Both China and India have done excellently in recent years. India, although a little behind China, is fast catching up. Both have an energetic population. China and India hope to benefit from the new world order.