Asia

<strong>China’s EV Expansion Faces Roadblocks in Brazil amid Tariff Calls on BYD</strong>
2Jun mmBy Brian ThompsonNo Comments
Asia, China

China’s EV Expansion Faces Roadblocks in Brazil amid Tariff Calls on BYD

China’s EV expansion in Brazil is facing mounting challenges as domestic automakers push for higher tariffs to counter the influx of low-cost Chinese vehicles. BYD, which has captured 47% of Brazil’s EV market, has stockpiled over 70,000 unsold vehicles in ports, anticipating tariff hikes. Brazil reinstated import duties in January 2024, starting at 10% and rising to 35% by mid-2026. Despite BYD’s dominance, local manufacturers, including Volkswagen and Toyota, are ramping up EV production. With Chinese automakers controlling 90% of Brazil’s EV market, policymakers face pressure to accelerate tariff increases. The outcome could reshape global trade policies. BYD has rapidly expanded its presence in Brazil since entering the market in 2021, leveraging aggressive pricing strategies t...
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<strong>Central Bank Struggles to Contain China’s Banking Crisis</strong>
28May mmBy Joe RodriguezNo Comments
Asia, China

Central Bank Struggles to Contain China’s Banking Crisis

China’s economic landscape is facing unprecedented turbulence, as revealed by the latest report from the People’s Bank of China. While Beijing has long projected an image of strength and stability, the central bank’s findings expose eight interwoven crises that threaten to unravel the nation’s economic and social fabric. These crises—spanning deflation, real estate collapse, local government debt, weak consumption, financial system risks, export declines, unemployment surges, and capital flight—are not isolated issues but rather a self-reinforcing cycle of decline. China’s consumer price index (CPI) fell 0.1% year-on-year, while the producer price index (PPI) dropped 2.3%, signalling sustained deflation. The central bank acknowledges weak demand and calls for price recovery—an unus...
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28May mmBy Brian ThompsonNo Comments
Asia

The India-Pakistan Crisis of 2025

The recent India and Pakistan crisis was the most significant between the two nuclear-armed adversaries in several decades. It saw military action unfold that crossed previous thresholds in geographic reach, systems employed, and impacts produced, and concluded with significant diplomatic engagement, primarily by the United States. It also generated unprecedented levels of mis- and disinformation that continue to cloud understandings of what actually transpired between May 7-10. This working paper reviews and assesses the available evidence in order to distill an initial understanding of the conflict’s trajectory—albeit one that will no-doubt evolve as additional information becomes available. Given the unprecedented nature of the military action and the likelihood that this crisis wi...
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Hong Kong Dollar Amid ‘Asian Financial Crisis In Reverse’
21May mmBy Brian ThompsonNo Comments
Asia, China

Hong Kong Dollar Amid ‘Asian Financial Crisis In Reverse’

The recent weakness in USD triggered the so-called “Asian Financial Crisis in reverse.” Taiwan dollar notably surged 10% against the USD amid worries that the Taiwanese government might have to agree to currency depreciation as part of trade negotiations with the US. The sudden shift in capital allocation also flooded the Hong Kong financial system, prompting the Hong Kong Monetary Authority (HKMA) to intervene in the foreign exchange market. The de facto central bank had to sell HKD to maintain its linked exchange rate system with the USD. How Linked Exchange Rate System works? HKMA has to acquire USD from the market whenever the HKD exchange rate is “too strong” - i.e., when it is stronger than HKMA’s trading limit of HKD 7.75 per USD - under its linked exchange rate. ...
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Regional collaboration could unlock South Asia’s economic potential
17May mmBy Brian ThompsonNo Comments
Asia

Regional collaboration could unlock South Asia’s economic potential

Persistent geopolitical tensions, especially between India and Pakistan, impede the region’s economic and technological potential.Countries like Viet Nam and platforms such as the Astana International Forum and the World Economic Forum offer South Asia models for pragmatic diplomacy and innovation-driven growth.Fragmented policies and limited cross-border collaboration in South Asia slow down progress in digital infrastructure, fintech and climate-focused innovation.South Asia is home to nearly 2 billion people and some of the world’s fastest-growing economies; it faces the dual pressures of surging demand for modern infrastructure and technology, as well as the persistent risks of climate and geopolitical volatility. Amid these consequential challenges, the recent escalation betwe...
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Pakistan pleads for international loans, urges partners to ‘help de-escalate’
9May mmBy Brian ThompsonNo Comments
Asia

Pakistan pleads for international loans, urges partners to ‘help de-escalate’

Pakistan seeks international loans to stabilise its economy amid financial challenges. The government also urges efforts to ease regional tensions As India’s Operation Sindoor intensifies its assault on terrorist infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK), the Pakistan government has issued a direct appeal to the international community for urgent financial assistance and help in de-escalating tensions. The plea came from the verified account of Pakistan's Economic Affairs Division on social media platform X, stating:“Govt of Pakistan appeals to International Partners for more loans after heavy losses inflicted by enemy. Amid escalating war and stocks crash, we urge international partners to help de-escalate. Nation urged to remain steadfast.” T...
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Following Trump’s export prohibition, Nvidia’s stock declines as Huawei, a Chinese company, apparently prepares an AI chip.
29Apr mmBy Joe RodriguezNo Comments
Asia, China

Following Trump’s export prohibition, Nvidia’s stock declines as Huawei, a Chinese company, apparently prepares an AI chip.

Nvidia (NVDA) stock fell just over 2% Monday following a report that Chinese tech giant Huawei is readying a new advanced AI chip in the wake of President Trump's export ban on Nvidia chips to China.The Wall Street Journal reported Monday, citing unnamed sources, that Huawei has approached some Chinese tech companies about testing a new AI chip called the Ascend 910D, which it hopes will be more powerful than Nvidia's H100 AI chips. The 910D chips are successors to Huawei's 910B and 910C chips and are still in an early stage of development. The Wall Street Journal also said Huawei is set to ship more than 800,000 Ascend 910B and 910C chips to customers, including state-owned telecommunications carriers and AI developers such as TikTok parent ByteDance.Nvidia stock spiraled after the ch...
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China remains calm in the US trade battle and delays further stimulus.
29Apr mmBy Joe RodriguezNo Comments
Asia, China

China remains calm in the US trade battle and delays further stimulus.

China has advanced this year's stimulus plans but is holding off on fresh measures as it tries to maintain composure, betting on Washington blinking first in a protracted trade war.The Communist Party's elite decision-making body, the Politburo, pledged on Friday to support firms and workers most affected by triple-digit U.S. tariffs on Chinese goods, but stopped short of announcing additional deficit spending.The decision to withhold additional stimulus disappointed investors, leading to a 3% slump in Chinese real estate stocks (.CSI000952), opens new tab on Monday, despite official efforts to assuage market concerns over a sharp downturn in growth.Beijing is already in a higher stimulus gear, which it can maintain over the coming months to mitigate the pain of losing, at least temporari...
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China downplays impact of Trump tariffs on economic recovery
28Apr mmBy Joe RodriguezNo Comments
Asia, China

China downplays impact of Trump tariffs on economic recovery

Chinese policymakers on Monday sought to assuage concerns the broad U.S. tariffs could derail efforts to shore up a fragile economic recovery, even as analysts warn the hefty levies raise the risk of a sharp downturn in growth.U.S. President Donald Trump's global trade war has rattled financial markets and raised fears of a recession, particularly as tit-for-tat tariffs between the world's two biggest economies threaten to upend supply chains and a whole range of industriesHowever, Zhao Chenxin, vice head of the National Development and Reform Commission (NDRC), China's state planner, said he was "fully confident" the country will achieve its economic growth target of around 5% for 2025.Zhao refrained from announcing any new support or stimulus measures, but said the NDRC would roll out n...
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Amid the trade battle, China’s Xi will travel to Shanghai as a show of force.
28Apr mmBy Joe RodriguezNo Comments
Asia, China

Amid the trade battle, China’s Xi will travel to Shanghai as a show of force.

Chinese President Xi Jinping will visit Shanghai this week, two sources said, showcasing his country's main international financial hub at a time when the trade war with the U.S. has raised the stakes for growth.The trip to the city that also hosts Tesla's (TSLA.O), opens new tab biggest factory would build on increasingly bullish assurances from senior Chinese officials that the world's second-largest economy can handle the hit from the 145% tariffs imposed by U.S. President Donald Trump, despite its reliance on exports.The State Council Information Office, which handles media queries for the Chinese government, did not immediately respond to a request for comment on the statements by the sources familiar with plans for the trip.Alfred Wu, a China expert at National University of Singapo...
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