Asia

China might not continue the GDP growth
Asia

China might not continue the GDP growth

A member of the Monetary Policy Committee of the People’s Bank of China has flagged the urgent need to get China’s economy back on track. Photo: Bloomberg China “urgently” needs to get its economy back on track to see it grow by at least 5 per cent next year, according to government advisers who appear to be increasingly concerned amid a property market crisis and Beijing’s strict zero-Covid policy. The world’s second-largest economy has failed to reach its growth potential since Covid-19 took hold nearly three years ago, and “this situation cannot continue”, said Liu Shijin, a member of the Monetary Policy Committee of the People’s Bank of China. “The urgent priority now is to get the macro economy back on a normal track,” Liu said, speaking on Friday at the 13th Caixin Summit i...
China’s semiconductor industry under possible desperation
Asia

China’s semiconductor industry under possible desperation

“I’ll run out of money soon if there’s no new investment,” said the founder, who declined to be named because of the sensitivity of the topic. “It is not as easy as two years ago, when [former US president Donald] Trump first started to impose sanctions on the industry and largely hyped up the semiconductor investment circle in China,” he told the South China Morning Post. The start-up founder is just one of many Chinese chip entrepreneurs trying to find shelter from the storm that has hit the country’s chip industry. The galvanisation of the industry that came in the face of earlier US sanctions has turned to desperation after Washington ratcheted up restrictions. Now, all Chinese chip companies are bracing for a tough year ahead. In 2020, when Washington blacklisted dozens of Chin...
Ukraine war conflicts are not hidden: Jaishankar
Asia

Ukraine war conflicts are not hidden: Jaishankar

Moscow, Russia:Addressing a press briefing alongside the Russian Foreign Minister Sergey Lavrov, Jaishnkar said he exchanged views on international issues with the Russian side, in which the Ukraine conflict was the dominant feature. Laying out India’s position on the Ukraine conflict, Jaishankar said, “As Prime Minister Narendra Modi conveyed to Russian President Putin: this is not an era of war. The global economy is simply too interdependent for significant conflict anywhere not to have major consequences elsewhere.”“We are seeing growing concerns on the energy and food security, emanating from the conflict, that are coming on top of severe stresses created by two years of Covid,” he said.Jaishankar further said the impact of Ukraine’s conflict is being severely felt by the glob...
Oil price sliding down as China continues zero covid policy
Asia

Oil price sliding down as China continues zero covid policy

SINGAPORE - Brent crude futures dropped US$1.20, or 1.2 per cent, to US$97.37 a barrel by 0227 GMT, after hitting as low as US$96.50 earlier. US West Texas Intermediate (WTI) crude was at US$91.24 a barrel, down US$1.37, or 1.5 per cent, dropping to a session low of US$90.40 a barrel earlier. “Oil prices dropped sharply as Chinese officials vowed to stick to the Covid-zero policy while infected cases climbed in China, which may cause more restrictions.... darkening the demand outlook,” CMC Markets analyst Tina Teng said. Four Federal Reserve policymakers last Friday indicated they would still consider a smaller interest rate hike at their next policy meeting despite strong jobs data. Brent and WTI rose last week, up 2.9 per cent and 5.4 per cent respectively, as rumours of a p...
China’s debt and security arrangements with Cambodia signal a greater plan for South East Asia
Asia

China’s debt and security arrangements with Cambodia signal a greater plan for South East Asia

Cambodia’s continued reliance on China for various needs has put to test its efforts for shedding the image of China’s proxy. Various observers point towards the strategic pitfalls for the South East Asian country due to outsized Chinese influence on its economy, policy and security matters. The ever-increasing Chinese debt on the country serves as a major red flag for them. Cambodia’s external debt which was more than $9 billion in 2021 is expected to cross $10 billion by the end of 2022. More alarming is the fact that more than 40 per cent of it is believed to be owed to China; making the country quite vulnerable to Chinese debt policy. Moreover, China remains Cambodia’s largest source of imports accounting for more than 30% of its total imports. Analysts also warn about Beijing creatin...
USD 30 Million trade turnover for India by end of 2022
Asia

USD 30 Million trade turnover for India by end of 2022

Moscow, Russia: The talks between Manturov and Jaishankar were held in the format of India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC). "A dynamic growth of bilateral trade turnover was noted, which, by the end of this year, may come close to the goal set by the leaders of the two countries - 30 billion USD," the Russian embassy said in a statement. Denis Manturov, who is also Russia's Minister of Industry and Trade, said relations with India can be described as a special privileged strategic partnership and they are of prime importance to Moscow. He added that despite pressure from Western countries, both nations are able to maintain the intensity of bilateral cooperation. "Despite Western pressure, w...
Economy is the new priority of Xi Jinping
Asia

Economy is the new priority of Xi Jinping

According to Ting Lu, a China economist chief said, "The actual economic recovery momentum is not strong." The Chinese economy is also facing the brunt of harsh COVID lockdowns and restrictions. The scenario of the Chinese economy has become upside down after the pandemic. Before the pandemic, the Chinese economy grew by 7.7 per cent on average each year, however, there are concerns that China may not be able to reach 3 per cent annual growth now, reported Financial Post. Furthermore, to compete with the US, China must clock at least 5 per cent growth if it wants to displace the US from the rank one. The reasons for China's growth trajectory derailment are poor productivity, weakening human resource power, and burgeoning debt. This will lay a negative impact on China's aspirations as a...
Africa under pressure of Chinese debt
Asia

Africa under pressure of Chinese debt

Beijing: Last month, Kenyan officials said they would ask China to extend the repayment period on USD 5 billion worth of loans, with an incoming cabinet minister telling parliament that the debt is "choking" the country's economy.According to Nikkei Asia citing research by Johns Hopkins University's China Africa Research Initiative, Beijing's financiers had lent over USD 153 billion to African public-sector borrowers over the past two decades.Only USD 3.4 billion of interest-free debt was cancelled over that period.Earlier, in August, China made an announcement that it would forgive 23 interest-free loans granted to 17 African countries to only show its grip over the east African sovereign debt has become, reported Nikkei Asia.China shows the African countries a dream of bringing Beiji...
Pakistan’s Imminent Default and Odds
Asia

Pakistan’s Imminent Default and Odds

The odds of Pakistan’s default on its borrowing are increasing. The country’s risk of default, measured by the 5-year credit default swap (CDS), touched 52.8% recently, a 13-year high, indicating that foreign investors are losing faith in Islamabad’s ability to honour its repayment obligations. The CDS hovered around 5% to 6% before the Covid-19 outbreak in February 2020. It is being increasingly clear that expectations in the Pak economy is not picking up despite the IMF programme of revival and release of USD 1.27 billion tranche.  It could be the result of profligacy and wrong priorities of the Pak government over a period which eventually led to deep rooted structural distortions. Rather than addressing these issues, the Pak leaders are presently engaged in an unending political ...
China facing hard terms with Germany
Asia

China facing hard terms with Germany

Berlin, Germany: This move has irked China which has out-rightly rejected Germany's charges, urging later to view its ties with Beijing objectively, reported Voices Against Autocracy. Moreover, at the 20th National Congress in China, the last few sensible leaders in CCP have been removed and Xi Jinping tightened his authoritarian rule and surrounded himself with only "yes men", pushing Germany to re-calibrate its relations with China. While efforts are on to prepare Germany's first China strategy document next year, German Chancellor Olaf Scholz has said that violence must be banned from international relations while commenting on the Taiwan question, reported Voices Against Autocracy. The three-way coalition government that took office in December, is due to publish Germany's...