China

The downgrading of Fitch Ratings for China, from China’s long-term foreign-currency issuer default rating (IDR) from ‘A+’ to ‘A,’ clearly confirms that China’s economic problems are becoming more fully recognized by the day. It signals the weakening of China’s public finances and the rising trajectory of public debt. The downgrade also highlights China’s long-running debt crisis in the property sector and persistently low consumption. However, it will be extremely difficult for the Xi government to deny that economic policies are flawed. The downgrade has dealt a significant blow to China’s global reputation and standing amid a rapidly shifting global geo-economic situation. Embarrassed by the rating’s forecast, China's Finance Ministry criticized the downgrade. A ministry spoke...

A new United Nations report warns that climate shocks could lead to annual economic losses (AAL) of at least 6 per cent in one-third of countries in the Asia-Pacific region, underscoring the region's significant vulnerability to climate change. The report, titled Economic and Social Survey of Asia and the Pacific 2025: Understanding the Macroeconomic Implications of Climate Change, published by the UN Economic and Social Commission for Asia and the Pacific (ESCAP) on Tuesday, highlights how many developing economies in the region are struggling to manage the macroeconomic repercussions of climate change and the transition to a green economy. While the Asia-Pacific region contributed 60 per cent of global economic growth in 2024, many of its countries are poorly prepared for climate ...

Asia-Pacific stocks from Shanghai to Tokyo and Sydney to Hong Kong plunged on Monday by levels not seen in decades, as global markets continue to reel from US President Donald Trump's tariffs. The Shanghai Composite was down more than 8% at one point, Hong Kong's Hang Seng dropped more than 13% and Japan's Nikkei 225 closed down by 7.8% - moves that one analyst described to the BBC as a "bloodbath". European markets too fell in early trading, with banks and defence firms seeing the biggest drops. This follows global slumps last week after Trump announced new tariffs between 10% and 46% on most countries. This is a blow for Asia's manufacturing hubs that count the US as a key market for exports ranging from clothes to cars. These include wealthy allies like Japan and South Kore...

Hong Kong’s stock market has suffered its steepest single-day decline in nearly three decades amid a wave of panic selling brought on by United States President Donald Trump’s tariff announcements. The financial hub’s benchmark Hang Seng Index closed down 13.22 percent on Monday, after plunging as much as 13.74 percent during the day.It was the sharpest plunge for Hong Kong stocks since the index tumbled 13.7 percent in a single day during the 1997 Asian financial crisis. On the worst day for Hong Kong stocks during the 2007-09 global financial crisis, the index fell 12.7 percent. The rout came after Trump doubled down on his sweeping tariffs overnight, likening the measures to “medicine”, and following China’s announcement last week that it would retaliate with a 34 percent tari...

The reach of the Chinese Communist Party (CCP) extends far beyond its borders, infiltrating oceans, space, and cyberspace. This multifaceted expansion has raised alarms globally, as nations grapple with the implications of China's strategic manoeuvres. From mapping the seabed to deploying advanced satellites and launching cyberattacks, the CCP's activities are reshaping the geopolitical landscape. The CCP's maritime ambitions are evident in its extensive seabed mapping operations. Under the guise of scientific research, Chinese fleets have been systematically charting waters near nations such as Myanmar, India, Thailand, Sri Lanka, Malaysia, and Indonesia. These efforts, ostensibly conducted under the United Nations Convention on the Law of the Sea, have sparked protests from n...