Asia

China plans to boost domestic consumption by offering interest subsidies on loans to households and businesses, aiming to reduce borrowing costs and spur spending, Vice Finance Minister Liao Min said on Wednesday.Economists have long urged Beijing to switch to a consumption-led economic model and rely less on debt-fuelled investment and exports for growth. Pressures from higher U.S. tariffs have heightened calls for a shift in long-term strategy. The policy "will support domestic consumption to become a major driving force of the national economy," Liao said at a press conference.On Tuesday, China announced it would offer interest subsidies for businesses in eight consumer service sectors, as well as for individual consumers. Eligible businesses and consumers can receive an annual ...

Pakistan has bagged a low-tariff trade deal with the US, signalling a major shift in Washington’s South Asia policy under Trump. Pakistan has secured a trade deal with the United States ahead of India and at a lower tariff rate, indicating Washington's shift in its South Asia policy. US President Donald Trump, who had earlier announced a 25% tariff on Indian goods, slapped a 19% tariff on Pakistan, suggesting America's tilt towards Islamabad. The trade deal with Pakistan comes after Trump repeatedly took credit for brokering the ceasefire between India and Pakistan following Operation Sindoor. Notably, India denied any foreign hand in the ceasefire, calling it a bilateral decision taken after Pakistan's DGMO approached New Delhi. Pakistan, on the other hand, warmed up to Trump, tha...

US treasury secretary Scott Bessent said the US President and his trade negotiators were ‘frustrated’ at the tardy progress of talks with India, which ‘came to the table early’ but was found to be ‘slow rolling things’ US President Donald Trump has escalated his criticism of India, branding its economy as “dead” and lumping it with Russia’s, prompting an oblique rebuttal from commerce minister Piyush Goyal who told Parliament that India was a “bright spot” in the global economy. In a flurry of messages on social media, Trump also announced a trade deal with Pakistan but offered no clue on how much duty the country will pay. He boasted that American companies would develop a “massive” oil reserve in Pakistan and this might be sold to India some day. Trump is to sign an executi...

The Strait of Hormuz—a 33 km-wide choke point between Iran and the Arabian Peninsula—is arguably the most geopolitically sensitive maritime corridor in the world. Through this narrow waterway flows nearly a fifth of global crude oil production, a lifeline for global economic stability. However, the overwhelming strategic reality remains under-acknowledged: over 80% of oil passing through Hormuz is destined for Asia, and China alone accounts for one-third of the shipments. Given this disproportionate dependency, it is paradoxical that the burden of securing the strait still falls primarily on Western powers, particularly the United States. In a changing global order marked by mounting geopolitical risk, it is time for Asia’s major powers—China, India, Japan, ...

One of the world’s most pivotal maritime chokepoints— the Strait of Hormuz—– has once again emerged as a strategic flashpoint amid escalating military tensions in the Middle East. Iran’s parliament has endorsed a motion to close the strait in direct response to recent U.S. airstrikes on its nuclear and military installations. While formal closure must still receive approval from the Supreme National Security Council, the mere prospect is already rattling global energy markets and unsettling nations that heavily rely on Middle Eastern energy exports. The strait connects the Persian Gulf with the Gulf of Oman and spans just 33 kilometers at its narrowest point, with shipping lanes squeezed into even tighter channels. In 2024, nearly 20 percent of the world’s crude oil—approximatel...

According to the World Trade Organization (WTO), heightened protectionism among major trading powers is contributing to a gloomy outlook for world trade. The latest KPMG Global Economic Outlook predicts international GDP will decrease from 3.2% in 2024 to 2.7% in 2025, with a slight recovery to 2.8% in 2026. Meanwhile, global inflation is expected to cool from 4.5 percent in 2024 to 3.6% in 2025, reaching 3.1% in 2026. During KPMG International’s Global Economic Outlook webinar, live polling during the broadcast revealed that 34% of attendees identified macroeconomic volatility as their top concern, while 30% cited geopolitical instability. Forty-seven per cent reported that their company’s growth prospects had worsened since January, and only 40% indicated no significant cha...