Many Asian countries particular China have embraced and funded the much-needed stimulus and investments that the West required. In fact, academics have put forth the argument that China the manufacturing colossal of the world is funding the continued consumption in the West.

Although observers have noted the increasing influence of China within the global financial and political stage, it is important for us to consider the possible social, political, economical discourses. The Economist reported within its annual publication “The World in 2013” summarized several concerns. It has highlighted several concerns about China; the first is the increase in wage rate, which suggest that China will soon lose its competitive advantage as its real wages rises above other ASEAN countries such as Indonesia, Philippines and Cambodia. China’s new leaders will also face several developmental challenges; One of which is that China will soon loss its population divided a consequence of its ‘One Child Policy” implemented during the 1960s, thus China will likely see a rise in demand for social services.

Despite China’s reputation as the manufacturing hub of the world, there have been numerous successful domestic consumer enterprises such as Haier and Wahaha. Such domestic consumer firms will seek to expand overseas as many industry players acknowledge that China’s economy will likely see a drop from double to single digit growth rates, a trend evident in transitory economies like China. China’s monetary stance will also be of interest; with continued economical growth and expansion the Chinese central bank will likely embrace the continued gradual appreciation of the Yuan. Many see this as a solution to addressing China’s current huge trade surplus, and high inflation. A revaluation of the currency will also benefit China with increasing acquisitions and overseas investment by China’s state-owned enterprises and domestic firms.

Other parts of Asia will also experience tremendous change. Indonesia and Philippines may in the near future replace China as the key manufacturing hubs of the world. However, it should also be noted that both countries will require substantial investment in infrastructure in order to sustain growth. These up and coming economies are socially and politically vulnerable, thus sound monetary and fiscal policies, coupled with effective policy instruments and execution is key to ensuring continued economic growth within the rest of Asia.