The United States must accelerate its pivot away from Western Europe toward Asia and Australia. Excluding China, the nations of Asia believe in capitalism, hard work, and personal responsibility. Their economies are dynamic, and their demographics are not yet a dead weight on economic growth.
In stark contrast, Europe is sliding into economic stagnation driven by the belief that redistribution supersedes economic growth, creative innovation, and national security. The European adherence to cradle-to-grave state socialism has created conditions for the continent to become increasingly irrelevant in the global economy. In plain terms, Europe is fiscally and socially bankrupt.
Not so Asia. The economies of East Asia and Southeast Asia boast a combined 2026 nominal GDP of just over $12 trillion, including Japan but excluding China. Several of these nations are expanding at rapid rates. India, Vietnam, South Korea, Taiwan, Indonesia, and the Philippines all maintain GDP growth rates of 4% or higher. By contrast, the countries of Western Europe struggle to register meaningful positive growth.
The U.S. depends heavily on South Korea, Taiwan, and Malaysia for essential inputs into the artificial intelligence ecosystem. Over 95% of accelerated computing chips are manufactured in Asia. Taiwan houses the world’s leading semiconductor manufacturing enterprise; without Taiwan Semiconductor Manufacturing Company, the AI revolution would not exist. Nvidia and other leading American AI companies would not be at the forefront of the industry without the advanced memory semiconductors produced by Samsung and SK Hynix in South Korea. Meanwhile, Malaysia accounts for roughly 13% of the global market for semiconductor packaging, assembly, and testing, serving as a vital conduit between raw chip production and deployed data center infrastructure.
The countries of Asia now feature large middle classes that increasingly purchase American consumer goods and services. For America’s giant consumer goods and retail businesses, such as Procter & Gamble, Coca-Cola, and PepsiCo, Southeast Asia represents an indispensable engine for unit volume growth. America’s financial behemoths also enjoy significant profit opportunities across the region. For example, JPMorgan Chase operates massive operational and technology hubs in Mumbai and Bengaluru. These centers employ tens of thousands of personnel, enabling JPMorgan to anchor its position as a dominant player in India’s investment banking and debt capital markets. Furthermore, both Citigroup and JPMorgan serve as primary financial intermediaries for America’s multinational corporations.
Unlike Europe, the countries of South and Southeast Asia benefit from young, productive populations. For every person aged 65 and older in Southeast Asia, there are eight working-age individuals generating the resources necessary to support society. European economies, meanwhile, are buckling financially under the unsustainable weight of entitlements promised to retirees.
Security concerns also loom large.
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Australia and the Philippines are particularly vital to U.S. national security as allies in containing Chinese aggression. Bound by treaty alliances, the U.S. and Australia share intelligence and military bases, while the U.S. is actively committed to building a nuclear submarine fleet for the Australian navy. In the event of a kinetic conflict with China, Australia would likely stand shoulder to shoulder with the United States.
For America, Asia is the future, and Europe is fiscally drained history.
The writer owns shares in Nvidia.
James Rogan (roganjames8202@gmail.com) is a former U.S. diplomat who later worked in law and finance for over 30 years. He writes a subscription-based daily note on markets, economics, politics, and social issues.
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[ H/T Washington Examiner ]
