Asia

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...

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...

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...

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...

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...

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 ...

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...

Pakistan has large amount of debt, high inflation, a spike in unemployment and lot of other macroeconomic problems which shows that the country’s economy is like a ticking time bomb. The factors that contributed to Sri Lanka’s economic crisis have also had a significant impact on Pakistan, whose economy faces similar challenges. The import dependence of essential commodities, limited foreign exchange sources, restrictions on free trade and accumulated external debt are among the other alarming similarities between Sri Lanka and Pakistan.From a critical point of view, China-Pakistan Economic Corridor (CPEC) is built on a $46 billion (now $55 billion) loan that Pakistan received from China as part of its sovereign Guarantee. The initial allocation includes a Chinese loan for $11 billion for...

Islamabad, Pakistan:  Pakistan's economy is like a ticking time bomb. Factors that contributed to Sri Lanka's economic crisis have also had a significant impact on Pakistan, whose economy faces similar challenges. Muhammad Hamza Qamar, writing in Daily Parliament Times said that Pakistan has a large amount of debt, high inflation, a spike in unemployment and a lot of other macroeconomic problems which clearly show the multiple challenges faced by the country. The import dependence on essential commodities, limited foreign exchange sources, restrictions on free trade and accumulated external debt are among the other alarming similarities between Sri Lanka and Pakistan. From a critical point of view, China-Pakistan Economic Corridor (CPEC) is built on a USD 46 billion (now USD...

Xi Jinping secured third term to run the country by drumming up nationalistic sentiments, vowing to make China the most powerful country. However, the country appears to be losing steam on the economic front. China’s exports are declining, industrial output plummeting, and strict lockdowns affecting businesses while the country’s elites are leaving. Xi's dreadful Covid management is adding to the economic problem.  Moreover, with its international coercive policies, hostility toward Taiwan and other neighbours has made China less popular during Xi's tenure. China’s fiscal deficit has reached USD 980 billion thanks to market disruption due to Covid lockdowns, the housing crisis and massive tax rebates. Lisheng Wang, an economist at Goldman Sachs, said “China’s fiscal conditions hav...