From exports to innovation: China and Japan under the spotlight

From Japan's labour troubles to the expansion ambitions of China's online giants, Baillie Gifford's Asia managers Matt Brett and Roddy Snell explain the key themes facing Asian investors this year - and the stocks to watch out for.

China: From exports to innovation Asia is going through "dramatic" change, explained Roddy Snell, manager of the Baillie Gifford Pacific fund. The drivers of regional growth in the last decade - including China's investment boom and flourishing exports - are slowly being replaced by innovation in communication and market-led economies. The World Bank recently warned China may lose out on the rebound in global export demand, as much of the manufacturing in the region has shifted to other markets such as Vietnam. This means China will be even more reliant on innovation. Snell argued ...