US protectionism might help emerging markets

CURTAILING access to the world's biggest market appears damaging, on the face of it, for the emerging markets relying on exports to catch up to developed nations.

An alternative view: it could be just what the doctor ordered. Economic resilience comes from domestic demand. And US President Donald Trump's protectionist moves give developing countries strong incentives to take on the tough reforms needed to drive productivity, wage growth and consumption at home.

"For all emerging markets, and particularly China, it forces them to continue down the path of structural reform - which is a very big positive," said Jordi Visser, head of investments at the US$1.3 billion US hedge fund Weiss Multi-Strategy Advisers in New York.