The rapid development of a new class of digital services in the Asia Pacific region is transforming the way developing countries access international markets, according to Scott Wang, vice president–Asia Pacific of the World Trade Centers Association (WTCA), a not-for-profit organization.
Ahead of the WTCA member forum in New York from 15 to 17 October 2023, which will gather representatives from World Trade Center (WTC) locations around the world and examine regional growth plans, Wang said that “very significant” progress was being made in digital services such as cloud computing, online education and telemedicine in the region.
“Digital globalization is fundamentally transforming international trade in both the goods and services sectors. In particular, we have seen the rise of e-commerce platforms which connect businesses across the globe and enable direct connectivity between merchants and customers,” he said.
“Mobile payment systems give developing countries a unique opportunity to leapfrog in international trade as we have seen in places like China, India and regions in Africa. These e-commerce platforms and mobile payments systems together make it so much easier for small- and medium-sized companies to access international markets and level the playing field with larger companies”.
However, Wang stressed that digital globalization depends upon the development of better digital infrastructure, the resolution of regulatory issues to ensure cross-border connectivity and the introduction of dedicated digital literacy policies and programs.
At the recent China International Fair for Trade In Services (CIFTIS) and China International Fair for Investment and Trade (CIFIT) in September, where the WTCA co-hosted a platform to facilitate sharing, ideas and trends across different industries, Wang said: “To accommodate the transformation brought by digital globalization, we’ll certainly need to make sure the digital infrastructure is in place for people to access the network”.
“China is currently one of the global leaders in digitalization including 5G, AI and cloud computing. But the development of digital infrastructure is uneven around the world if we are talking about digital globalization. Even in China there is still one-fourth of the population that does not have regular access to internet yet. At the same time, we’ll need to address the regulatory issues to ensure cross-border connectivity”.
Asia’s landmark free trade agreements, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) are also crucial to regional success as the rise of globalization continues to face major challenges, said Wang.
“One big issue is the uneven distribution of gains and prosperity among social classes within individual countries, and between countries across the world. As a result, we have seen the rapid rise of nationalism, populism and de-globalization in many countries,” he said.
“In my view globalization will continue in many ways, such as digital globalization, but regionalization or regional economic integration, such as RCEP and CPTPP may see stronger momentum. At the same time, the ongoing global supply chain restructuring will continue in which security, resilience and diversification will gain weight in decision-making process of major trading countries and corporations”.
As it has done the past four years, the WTCA is participating in the annual China International Import Expo (CIIE), with the sixth one taking place in Shanghai on 5-10 November 2023.
The WTCA is partnering with WTC Shanghai to launch the 2023 WTCA CIIE Program, offering a hybrid approach to CIIE, the top trade show for imported goods in China, for all WTCA Members and their business networks to showcase their products and services throughout China.
As a global trade organization, the WTCA supports free and fair trade, and facilitates global connectivity and prosperity. With more than 300 members that have WTC-branded facilities, trade development services and business clubs in cities across nearly 100 countries, it helps facilitate trade and investment across the globe and provides an environment of trust and credibility for businesses worldwide.
In recent weeks the WTCA further committed to build stronger trade networks by partnering with the World Trade Organization (WTO), focusing on amplifying global commerce and partnering to support global trade.
The WTCA will hold its 54th annual Global Business Forum in Bengaluru, India on March 3 to 6. The event will bring together WTCA members and their global business networks consisting of leaders from business, government, academia, media and international organizations, reflecting the WTCA’s diverse global footprint and emphasizing the economic potential of India, particularly Karnataka.
