In this special issue of AIQ, we explore what the future holds for China and its EM peers. We investigate three key trends that are shaping China’s growth trajectory: debt, consumer spending and technology. How China manages these issues will have an impact far beyond its borders. The maturing Chinese economy is already hoovering up more foreign investment and stoking greater competition for capital among other emerging markets – we look at the implications for investors in both equity and debt.
One region in particular is proving resilient: Southeast Asia. The likes of Vietnam and Malaysia are opportunistically stepping in to attract companies that are relocating out of China due to tariffs – and bolstering their own growth prospects in the process. In our Big Interview, political scientist Ian Bremmer tells us how a retreat of US leadership alongside the rise of ‘strongmen’ leaders is generating new hazards across EM. Corporate governance and environmental standards may still lag those of developed markets, but the situation is gradually improving in many countries, as we find out in our in-depth feature on emerging markets and ESG. Elsewhere, we look at the gap between perception and reality in emerging market debt.