Many important announcements were made at the 22nd annual Asia-Pacific Economic Cooperation (or APEC) meeting that took place November 10-12, 2014, in Beijing, China.
These announcements are carefully analyzed by global investors with stakes in exchange-traded funds such as the SPDR MSCI World Quality Mix ETF (QWLD), the iShares MSCI All Country World Index Fund (ACWI), or the Vanguard FTSE All-World ex US Index Fund (VEU). In fact, the importance of international meetings like this one may be compared to that of the FOMC (Federal Open Market Committee) meetings for US investors with stakes in the SPDR S&P 500 ETF Trust (SPY) or the iShares S&P 500 ETF (IVV).
A promising China
Chinese President Xi Jinping took the opportunity as host of this event to make a number of key announcements:
- China’s free-trade agreements with South Korea and Australia—two sizeable Asian economies
- Breakthrough agreement with America on the elimination of tariffs on information-technology products
- A $40 billion investment in a new commercial “Silk Road” that will mainly benefit Asian and Russian economies
- An invitation to member nations to participate in the FTAAP (Free Trade Area of the Asia-Pacific)
We’ll discuss the FTAAP in detail later in this series. Also, Part 6 of this series focuses on other key announcements in the Sino-US domain.
The next part of this series looks at how the Silk Road could be a platform for three-way exchange among the Asian economies and Russia.