Russian adviser says economies of Global North losing role, importance

By Elena Teslova

MOSCOW (AA) - The economies of the Global North are losing their role and importance while others in Asia are rising, an adviser to the Russian president said on Tuesday.

Speaking to Russia's Expert weekly magazine, Maxim Oreshkin said Europe's well-being was based on "comfortable access" to Russian energy resources and "cheap production" in China.

European companies are losing big Chinese and Russian markets, which were a source of additional income, he said, adding: "The loss of all these elements step by step leads to a long-term stagnation of the European economy."

European countries have slashed fossil fuel imports from Russia over its "special military operation" in Ukraine, leading to record-high gas prices; while many Western nations are encouraging companies to diversify their manufacturing activities away from China as part of the China Plus One strategy.

Oreshkin, who advises Vladimir Putin on the economy, said the Asian economies have risen in the global rating; India ranks third, Indonesia is seventh and in the near future may oust Germany from the sixth place, he said.

"The so-called economies of the Global North — the USA, Japan, and the EU — are slowly losing their role and importance. China has become the leading global economy, and Russia has become the largest economy in Europe, and is already catching up with Japan in race for the fourth place," he said.

Oreshkin also highlighted China's increasing dominance in the world economy, including in the automobile industry.

"I wouldn't be surprised if companies such as Mercedes and BMW go down in history in 10 years. As brands, they will probably remain but repeat the fate of Volvo, which was sold to China. In other words, they will actually cease to be European cars. Because European manufacturers now have neither a sales market nor the technological advantage they had five to 10 years ago," he said.