Asia easing fast and furious against Trump’s tariffs – Asia Times

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Japan — It’s been years since financial activities in Bangkok had global repercussions. But the Bank of Thailand’s surprise rate cut on Wednesday ( February 26 ) signals how rapidly Donald Trump’s trade curbs are upending Asia’s 2025.

Bangkok was the site of the Asian financial crisis in 1997, the next day it experienced financial conflict. Back then, the economy of Thailand, Indonesia and South Korea collapsed in spectacular currency crises style.

That dark time isn’t always about to repeat itself. The area has come a very long approach: banks are healthier, currencies trade more widely, governments are more visible, markets are more tenacious and main banks have enormous foreign exchange reserves.

But the BOT’s 25 basis-point cut to 2 %, its lowest level since July 2023, follows similar moves in Jakarta and Seoul to counter downside risks that bear US President Trump’s prints.

Bank Indonesia kicked points off with a 25 % interest rate cut in the middle of January. Governor&nbsp, Perry Warjiyo&nbsp, called the split “pro-stability and development” given “global and regional economic relationships”.

The Bank of Korea hit the economic fuel this year. On Tuesday, Governor Rhee Chang-Yong’s team sharply reduced its economic growth projection as it cut prices to 2.75 %. In the BOK’s speech, it cited Trump’s fast-expanding business conflict as the main motivator for easing.

Due to deteriorating socioeconomic sentiment and US price policies, the BOK predicted that local demand growth and export growth would be slower than originally anticipated. It is believed that local economic growth will continue to be stable while inflation will continue to grow.

Of course, the BOK is burying the result, financially speaking. Trump, it’s obvious, is only just getting started. And in a way that sends the three markets into a whirl and battens down the doors. On Thursday, for example, Trump said he’ll double tariffs on China to 20 %.

” While industry have begun to respond to these advances, deep tax risks are still being underpriced”, says Kamakshya Trivedi, a leading global strategist at Goldman Sachs.

Deborah Tan, an analyst at Moody’s Ratings, says Asia’s “overall plan response may be crucial in determining the total effect on credit power. We expect governments will probably work pragmatically, aiming to avoid increase with the US, preferring to communicate on a diplomatic basis, as shown by new developments”.

Even Trump seems unsure about where he’ll impose tariffs next and the scope of the curbs, according to earlier statements. Trump immediately addressed tariffs in Canada and Mexico at a Cabinet meeting this week about the latter being a done deal. Then, he suggested no taxes will ultimately be imposed.

” I have to tell you that, you know, on April 2, I was going to do it on April 1″, Trump said. ” But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all of them, but many of them.

In a note to clients, Capital Economics claims that Donald Trump’s victory in the November presidential election has only increased the uncertainty by causing significant penalties, tariffs, and the potential upheaval of traditional geopolitical alliances, which could also cause the rest of the world to become more uncertain.

The uncertainty, Capital Economics warns,” could end up weighing on global investment and consumer spending for an extended period, particularly if Trump repeatedly pushes back his tariff deadlines”.

To Paul Donovan, chief economist at UBS Global Wealth Management, the bewilderment factor makes for a uniquely challenging year for markets.

Case in point, he says, is” Trump’s very big announcement on reciprocal tariffs, which turned out to be a plan to investigate taxing US consumers at a future date. Markets had to decide whether the president was being a pushover or a protectionist, and for the time being, they are leaning in favor of pushover.

Of course “delay is seen as an opportunity to do’ deals,'” Donovan says. ” So far, such deals have been more spin than substance”.

Even though the headlines about US import tariffs continue to be a hot topic, according to Thierry Wizman, global rates strategist at Macquarie Bank,” there has been a clear deceleration of the” tax train.” There’s a sense that the administration’s approach to economic and national security issues is more transactional and less punitive”.

One explanation for the ever-shifting trade war plans is that Trump does indeed have his “kryptonite” ,&nbsp, notes Benjamin Tal, economist at CIBC World Markets. Shortly after the stock market reacted negatively to the news, Canada and Mexico were granted 30-day extensions on the 25 % tariff, Tal says.

One world leader who’s not confused about the turbulence to come is Xi Jinping, whose economy is Trump 2.0’s main obsession. Trump’s most recent announcement is a plan to levy an additional 10 % on imports from mainland China.

However, this week, China’s leader sounded more jittery than confident when he urged officials to stay calm as Beijing’s economic storm clouds loom.

China “must strengthen its political will and calmly respond to challenges brought about by changes in the domestic and international situation,” Xi told Politburo and State Council party members, according to Xinhua News Agency.

As Trump raises the stakes, Xi’s economic team begins. Trump has so far avoided paying 60 % tariffs on China, which he frequently threatened during the campaign trial. And now he’s reversing his previous approach, Joe Biden, and specifically focusing on the trade war.

For all its Biden criticisms, Team Trump is mulling ways to expand Biden’s curbs on Chinese semiconductors. The White House is also encouraging influential allies around the world to intensify efforts to stop China’s chip industry from expanding.

DeepSeek, a Chinese AI startup, is being investigated in the US. White House investigators are looking into DeepSeek‘s suspicions that it violated export controls to purchase sophisticated Nvidia chips in Singapore through a third party.

Tariffs, though, are still the main Trumpian event, raising collateral damage risks for Asia. And Trump trade advisors, like China hawk Peter Navarro, are angling for more.

” Trump’s new ‘ America First Investment Plan ‘ seals the fate of a deepening US-China conflict, reinforcing the earlier America First Trade Plan”, says Yale University’s Stephen Roach, formerly chairman of Morgan Stanley Asia.

” This isn’t an artful ploy for a grand deal with Beijing. Trump’s MAGA base is incredibly anti-China, which makes it all but impossible for him to change his tune. He’s cornered”!

From Trump World, new ways to complicate China’s year keep coming in. Case in point: possible fees on China-made commercial ships used for moving goods to slow China’s domination of ship-building.

China’s place in harm’s way has officials in Bangkok, Jakarta, Seoul and elsewhere slashing rates – and odds are there’s more monetary easing to come. That includes the Philippine central bank, which cut interest rates by 25 basis points in December.

It’s not that developing Asia worries about sustaining direct hits from Trump’s tariffs. It’s prepping for the indirect, but still devastating, blows to come as mainland China’s trade, investment and tourism shifts into reverse. China, which is subject to Trump’s tariffs, poses a serious threat to all of the world’s South.

Risks abound as Trump and his unelected enforcer Elon Musk systematically monitor US institutions that safeguard the value of US Treasury securities and the dollar, which are crucial to developing Asia’s trade-dependent economies. A US national debt that is close to$ 37 trillion would be significantly increased by the trillions of dollars in proposed tax cuts, according to Trump.

Trump and Musk are undermining the Internal Revenue Service’s function, which could alarm investors and credit rating organizations. This includes Asian central banks, which have nearly$ 3 trillion in assets.

Regardless, there are numerous economists who disagree on whether Trump’s bite will be as bad as his bark. &nbsp,

Our “aggressive Trump” scenario, which assumes high trade tariffs and significant deportations, would be stagflationary for the US economy and likely plunge the rest of the world into recession, according to Schroders ‘ economists in a note.

But, Schroders argues, “upside risks are also emerging. While DeepSeek could speed up AI adoption, macroeconomic reform is back on the agenda for governments looking for growth, and bank lending displays signs of life.

The economists add that” steep falls in oil prices could also conceivably relieve inflation pressures later in 2025″ at the same time.

Of course, the inflationary effects of Trump’s tariffs could dominate global pricing dynamics instead.

According to Chief Goldman Sachs economist Jan Hatzius, Trump’s tariffs will increase personal consumption expenditures (PCE), the preferred measure of the US Federal Reserve, by about 1 %. Already, that rate is running at 2.8 % annually.

According to our general rule,” We estimate that the proposed tariff increases would increase core PCE prices by 0.9 % if implemented, based on the assumption that every 1percentage point ] increase in the effective tariff rate would raise core PCE prices by 0.1 %.”

Gene Ma, head of China research at the Institute of International Finance, adds that “tariff-driven inflation complicates monetary policy, raising uncertainty for the Fed”. And for developing nations who fear that Trump might restore Asian financial crises.

Follow William Pesek on X at @WilliamPesek

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China’s grand plan for food self-sufficiency – Asia Times

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China’s plans to become an agrarian self-sufficiency by 2025 are crucial for both home stability and the broader international food landscape as global food security becomes a pressing issue.

While China remains the world’s largest food producer and exporter, with the largest meal supply system, Beijing remains vigilant about the long-term balance of its foods source.

Beijing continues to promote measures aimed at reducing dependence on outside sources while also boosting local manufacturing and securing outside agricultural investments to assure self-reliance in agrarian production.

Agriculture, the foundation of China’s business, is undergoing a critical change. The nation is transitioning from a “big nation with little farmers” to a “big and robust agricultural nation.”

In light of rising geopolitical tensions, shifting business relations, and environmental concerns, China’s approach to this problem and its ability to maintain its proper position on the global stage will be significant.

In a precarious political climate, China has increased its efforts to ensure a credible and lasting food supply. It also recognizes the urgency of safeguarding the country’s agricultural future.

According to Chinese President Xi Jinping,” The foods of the Chinese people must be produced by and be in the hands of the Taiwanese.” Xi and China’s policymakers have consistently placed food security at the forefront, recognizing it as a” top national priority” ( 国之大者 ) amid an increasingly complex global environment.

Resilience in the food supply has become more important than ever as a result of geopolitical and geoeconomic tensions, climate change, trade disruptions, systemic tensions with the US ( US), and unstable international food markets.

In reply, China has recently raised political objectives for food safety and endurance. &nbsp, &nbsp,

The transfer of China’s 2025″ No. 1 Central Document” on February 23 more underscores this commitment to ensuring national food safety. The report, an important policy speech from the central government, outlines important national targets.

For 2025, it focuses on remote regeneration, agricultural development, and securing the world’s food supply amid domestic and international issues.

The 2025 template highlights six key areas of focus: ensuring a steady supply of grain and important agrarian products, consolidating the gains of poverty alleviation, developing native industries, advancing remote construction, improving remote governance, and optimizing resource allocation in remote areas.

This report emphasizes the importance of self-sufficiency and steadiness in China’s food supply, positioning the nation to manage international uncertainties. Two key priorities for the nation’s food security strategy for 2025 include:

Ensuring grain supplies

China, the largest agricultural producer and importer in the world, has a significant influence on global grain markets, importing more than 157 million metric tons of soybeans and grains last year. Grain security remains central to China’s food policy, reflecting its crucial role in safeguarding the nation’s long-term food supply.

China’s need to increase output continues to grow despite record-high grain production in recent years, largely due to population growth and dietary changes, which are being driven by China’s growing population’s growing need for more meat, eggs, and dairy products. Maintaining a stable and trustworthy grain supply has become even more important as dietary habits change.

Grain production remains a cornerstone of China’s food security strategy. The 2025″ No. 1 Document” outlines a multi-pronged strategy: stabilizing grain planting areas, raising yields, and improving crop quality.

It uses biotechnology and targeted subsidies to boost the production of soybeans and oilseeds ( like canola and peanuts ) while putting a top priority on expanding production. For instance, pilot loan programs aim to incentivize grain and oilseed production in key regions, alongside inter-provincial coordination to optimize distribution.

At a press conference held by the State Council on February 24, officials stated that food security is still a top priority. Han Wenxiu, director of the Central Rural Affairs Office, warned against complacency, stating,” Grain production must be strengthened, not relaxed. The possibility of temporary price fluctuations shouldn’t let us forget that food security is still fragile.

To safeguard farmer morale, the central government also plan aims to introduce a policy toolkit that includes minimum purchase rates for rice and wheat, with market support purchases in various provinces ( such as Henan, Jiangsu, Heilongjiang, and Anhui ), alongside the expansion of grain storage in key provinces.

These efforts build on the 2024 Central Rural Work Conference, which reaffirmed the government’s commitment to stabilizing domestic grain supply, with a focus on “absolute” stability in wheat and rice production—key pillars of China’s food security.

From 2003 to 2013, domestic grain production rose from 430 million metric tons to <a href="https://bioone.org/journals/journal-of-resources-and-ecology/volume-11/issue-4/j.issn.1674-764x.2020.04.004/Changes-in-Chinas-Grain-Production-Pattern-and-the-Effects-of/10.5814/j.issn.1674-764x.2020.04.004.full”>over 600 million metric tons, especially in key regions like the Yangtze River, Northeast China, and the North China Plains. Additionally, China has &nbsp, designated key areas&nbsp, for the production of staple crops like double-cropping rice and high-quality wheat in the Yangtze River Economic Belt.

Recent achievements underscore this momentum. In 2024, China’s grain output reached a record high of 706.5 million metric tons, a 1.6 percent increase from the previous year. At the same time, the national average yield per mu ( 0.0067 hectares ) rose to 394.7 kilograms (kg ), an increase of 5.1 kg from 2022. This is largely due to yield improvements contributing to&nbsp, more than 80 percent&nbsp, of the overall grain production increase.

To sustain this trajectory, the MARA released a statement in January outlining ambitious targets: raising annual grain production by&nbsp, 50 million metric tons by 2030&nbsp, ( a 7 percent increase ) and maintaining over&nbsp, 1.75 billion &nbsp, mu&nbsp, ( 117 million hectares ) of farmland dedicated to grain cultivation.

In line with these objectives, China’s current&nbsp, Five-Year Agricultural Plan&nbsp, targets annual grain production exceeding 770 million tons, alongside a push to increase domestic soybean production to 23 million tons by 2025. In response to uncertainty surrounding global trade, the central government aims to lessen its reliance on imports from Western nations.

Agricultural innovation and technology

Amid rising supply chain uncertainties and climate challenges, China has prioritized agricultural security and technological self-sufficiency. China’s current” No. 1 document” emphasizes agricultural technology as central to its food security strategy.

The central government plans to accelerate the research and application of advanced, domestically produced agricultural machinery and smart farming systems, including artificial intelligence ( AI), 5G, big data, and low-altitude systems, to enhance efficiency across the sector.

To support this, China aims to establish 500 national-level agricultural industrialization consortiums by 2025. These consortiums will foster collaboration among research institutions, agribusinesses, and farmers, focusing on drought-resistant crops, smart machinery, and sustainable practices.

China is expected to continue encouraging efforts in agricultural innovation, particularly regarding the&nbsp, productivity of key grains and oilseeds&nbsp, ( like rice, wheat, corn, soybeans, and rapeseed ) to achieve national food production and related food security goals.

To this end, &nbsp, Beijing&nbsp, has &nbsp, consistently emphasized&nbsp, the need for increased local production, evident in policy measures, &nbsp, targets, and&nbsp, five-year plans.

More broadly, to support this technological transformation and help safeguard the country’s food future, China has already heavily invested in biotechnology and digital technologies. Despite some public opposition, this includes supporting the development of genetically modified ( GM ) crops like soybeans and corn.

Although the country’s plans for food security still contain the commercialization of GM crops, a number of things suggest that it is moving in this direction. Notably, in late 2024, the Ministry of Agriculture and Rural Affairs ( MARA ) approved safety certificates for 12 GM crop varieties, signaling a long-term strategy to integrate biotechnology into China’s food security framework.

More recently, in February 2025, MARA released the Key Areas of National Agricultural Technology Innovation ( 2024-2028 ) which outlines 10 key priority areas: the cultivation of new agricultural varieties, soil quality improvement, agricultural

machinery equipment development, pest and disease prevention in crops, livestock and aquatic diseases control, efficient planting and breeding, green and low-carbon agriculture, agricultural product processing and food manufacturing, agricultural product quality and safety, and rural development.

The document further underscores the importance of technological innovation in China’s pursuit of global ( agricultural ) leadership, particularly in AI and biotechnologies.

Concurrently, the central Chinese government is pushing to create new seed varieties. Chinese President Xi has called for an independent seed industry in recent years. This goes against previous leadership objectives to bring about technological advancements in seed development.

In order to reduce reliance on imported seeds, current research also looks at high-yield hybrid seed technologies for important crops. These efforts are more broadly linked to national five-years ( such as the&nbsp, National Medium and Long-term Science and Technology Development Plan ( 2021-2035 ) and the 14th Five-Year Agricultural Plan ( 2021-2025 ), which emphasize the creation of new food sources to achieve China’s broader strategy of agricultural self-sufficiency.

Simultaneously, the country is embracing&nbsp, digitization&nbsp, to modernize agriculture, as exemplified by a multitude of national plans like the&nbsp, National Smart Agriculture Implementation Plan ( 2024-2028 ) &nbsp, and the 14th Five-Year Plan for Agricultural Modernization ( 2021-2025 ).

The former includes, among others, the construction of&nbsp, “digital villages” &nbsp, and modern agricultural parks aimed at enhancing productivity through technological innovation. China’s goal of transforming agriculture through improved efficiency and digital technologies is crucial to these initiatives.

Food challenges

Significant domestic and international challenges face China’s agricultural transformation and wider efforts to ensure food security. In addition to concerns about growing import reliance on key agricultural products ( such as edible oil ), which reshape the country’s food consumption, and extreme weather events that destroy parts of local production, other factors should be considered.

Despite these successes, challenges remain. Demographic and environmental pressures, which call for significant investment and structural shifts in technology and infrastructure, make scaling up grain production difficult to achieve. China’s ability to accomplish these lofty objectives will depend on how far it can go.

China’s agricultural model, primarily based on small family farms scattered across the country, faces significant challenges to modernization, particularly in adopting&nbsp, agricultural technologies&nbsp, and standardizing practices.

Some initiatives, like the&nbsp, National Agricultural Technology and Education Cloud Platform, &nbsp, aim to address these gaps through online training. However, more aggressive efforts are required to expand agricultural innovation to ensure long-term food security.

Additionally, growing certain agricultural products can be&nbsp, much more expensive&nbsp, in China than in other countries, such as the US, and the yield may be much lower too. According to data from the United Nations&nbsp, Food and Agriculture Organization, corn and soybean yields in China are roughly half as high as those in many of the Americas ‘ exporting nations, which have comparatively high yields per hectare.

When it comes to soybeans, for instance, the average yield for soybeans in the US is about 3.5 tons per hectare in comparison to China’s 1.6 tons per hectare.

Similarly, for corn, the average on-farm yield of corn is 11-12 tons per hectare in the US, while China’s average corn yield is 6.2 tons per hectare. Given China’s major water, soil, and arable land constraints, addressing yield gaps is important for Beijing to achieve its food production goals. &nbsp, &nbsp, &nbsp,

Additionally, disposable income increases are causing the country’s changing food consumption structure, with consumers demanding more of the pricey animal protein and dairy, as well as sugar, edible oils, and processed foods. This is reflected in the country’s changing food consumption structure. &nbsp, By 2025, China is expected to account for 31 % of the&nbsp, total global increase of protein consumption.

China’s overall food demand is projected to increase by 16 to 30 % by 2050, while demand for meat like beef and dairy products is projected to nearly double due to the middle class’s continued growth. To meet this demand, some&nbsp, researchers&nbsp, argue that up to 12, 000 square kilometers of additional agricultural land within China is necessary. &nbsp,

Financial barriers exacerbate challenges. Smallholder farmers, who manage&nbsp, more than 70 % &nbsp, of China’s agricultural land, are particularly burdened by these financial constraints. Many also struggle with&nbsp, limited access to credit.

Studies show that 18.87 % of family farms in China&nbsp, face a gap in operating funds, with&nbsp, around 26.20 percent&nbsp, unable to fully bridge funding gaps even after securing lands, further deterring investments in agricultural technologies.

At the same time, local governments are trapped in a vicious cycle of&nbsp, high debt and dwindling revenues. This implies that they may struggle to raise money for rural initiatives or put a lower price on them. While the government has &nbsp, introduced measures&nbsp, such as&nbsp, a 10 billion yuan ( US$ 1.38 billion ) in one-off subsidy&nbsp, in 2023 to boost farmers ‘ incomes, these efforts fail to tackle the underlying financial and structural barriers.

A 2024 debt relief package of&nbsp, 10 trillion yuan&nbsp, ($ 1.4 trillion ) also offers limited respite, as municipalities grapple with plummeting revenues from land sales —a consequence of the ongoing real estate crisis.

Local governments will be under even greater fiscal strain as total government debt is projected to rise by nearly 150 percent of the GDP by 2030. As a result, this could put investments into agriculture—such as rural infrastructure and technological innovation—at risk.

Concurrently, China grapples with demographic challenges, including&nbsp, declining fertility rates&nbsp, and a shrinking workforce. In 2022, approximately&nbsp, 176.6 million people&nbsp, — or 24.1 percent of the workforce — were employed in agriculture, fishing, and related industries.

The vast majority of this workforce (90 % ) are &nbsp, smallholder farmers. Nevertheless, the average age of agricultural workers is 53, with over a quarter aged 60 or older. This growing population poses a significant challenge to agricultural productivity and, conversely, wage growth. &nbsp,

Projections are also grim. By 2050, the proportion of the country’s agricultural workforce in China could plunge to&nbsp, around 3 %, while the total agricultural labor force may fall to under&nbsp, 31 million.

These workforce issues, which are essential to the agricultural supply chain, extend beyond agriculture and affect industries like transportation and logistics. By the end of 2021, China faced a shortage of 4 million truck drivers, a problem likely to worsen as the working-age population declines and younger people pursue&nbsp, better opportunities&nbsp, in cities.

In 2021, the number of&nbsp, rural migrant workers&nbsp, reached&nbsp, 292.51 million, a 2.4 % ( 6.91 million ) year-on-year increase. Due to this demographic shift, China will soon experience a shrinking agricultural workforce and fewer rural workers available for crucial industries like transportation and logistics, which are essential to maintaining food supply chains.

China has made significant advancements in ensuring its food security. But the path to agricultural self-sufficiency by 2025 is fraught with challenges. In the end, the country’s ability to provide a stable and resilient food supply to its expanding population will depend on how well it can overcome these obstacles, which range from technological limitations to demographic shifts.

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China’s tech rally ignores trade and tech war – Asia Times

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Subscribe right away and get the first year for only$ 99. With a one-month trial for only$ 1, you can sign up for the exclusive rate of$ 99.

China’s it protest ignores industry and technology war

David Goldman examines the subsequent rise in Chinese tech stocks, with the Hang Seng Tech Index rising 27 % over the past month, considerably outperforming the Nasdaq. Despite new US investment regulations, Chinese tech remains adaptable.

Germany’s post-election governmental move: Bill brake under stress

Diego Faßnacht assesses the political and economic effects of Germany’s national poll. A crucial post-election growth is the force to supersede Germany’s legal debt brake, signaling a big shift away from Germany’s standard fiscal discipline.

With significant investments in the US, Japan does avoid taxes.

Using significant US opportunities as bargaining chips, Scott Foster examines Japan’s efforts to avoid Trump’s suggested tariffs. While Tokyo is not Trump’s main objective, it remains exposed to shifting US business plans.

Europe prefers conflict in Ukraine over peace on Trump’s words

James Davis identifies Donald Trump’s plan toward Ukraine as a growing divide between Western leaders. According to insiders, business partners play a significant role in Trump’s position on Ukraine, with real estate developer Steven Witkoff serving as one of the important figures.

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Commentary: I worried when my children’s school went cashless – it’s not as bad as I feared

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Training FROM HOME

Children frequently learn by observing their parents, learning about our opinions and paying habits. What matters most is what we transmit to our children at home and the principles we put them to practice in daily life.

I take the time to explain to my kids how e-wallet accounts, such as credit cards, debit cards, PayNow and EZ-Link accounts, operate, putting emphasis on the need to have enough money in the bank account to use our cards and avoid late fees and debts.

My father and my modest lifestyle, where we emphasize merely purchasing things when necessary rather than things we simply wanted, are also picked up by my kids. We talk with our ladies about prices and the value of particular payments. They have been encouraged to reconsider their choices as a result of this strategy before investing in expensive stationery or style items.

We can help our children learn how to navigate both the physical and digital worlds of money by fostering economic education through daily activities and engaging in open dialogue with them.

In the end, it’s about instilling values of duty, prudence and informed decision-making that will guide them throughout their life.

Vivian Teo is a freelance writer, children’s book publisher and proprietor of a parenthood and lifestyle website.

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Trump risks backlash with fast and loose US debt claims – Asia Times

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The US senator, Donald Trump, is challenging official numbers around the country’s national debt, suggesting probable fraud in its analysis. The government’s comment have given a contentious twist to a problem that is both significant and significant for the United States. And it has implications for both the global market and the financial markets as well.

The total amount of cash the US government owes is the total amount spent on paying over its income in addition to years of borrowing. Over time, this volume has grown considerably, becoming a focal point for political disputes and financial forecasts.

The US bill time indicates an amount of debt of over US$ 36 trillion, related to$ 107, 227 per US resident.

Based on the US overall public debt collection, this number is based. The US bill has grown noticeably since the 2008 crisis, with a further increase occurring during the Covid crisis, is obvious.

This results in a US national debt that is roughly 121 % of the GDP. For comparison, the UK’s Office for Budget Responsibility puts American federal debt at 99.4 % of GDP in 2024.

Given that it is necessary to spend money to support their markets during recessions, this style is prevalent in developed economies.

Trump has also asserted that the US may include less debt than was initially believed as a result of this alleged fraud. Putting off possible fraud, it is well known that the title debt figure exaggerates the amount of national debt.

Due to the fact that it includes debts held by the Federal Reserve Banks as well as debt owed to one portion of the US state to another, When these payments are taken out of the US national debt data, we can determine how much debt is held by the general public. Although this is substantially lower, it continues to grow in a similar way over time.

How much more of the US’s GDP has grown as a percentage of GDP:

The conventional wisdom ( kindness of Mr Micawber, a figure in Charles Dickens ‘ book David Copperfield ) is that an income greater than expenses equal pleasure, while the same results in pain. However, this does not always apply to public loan.

In the end, we have a loan to ourselves ( and our future generations ). What truly matters is its long-term conservation, meaning that the debt-to-GDP amount is not following an incendiary design.

This kind of design could lead to a higher risk premium ( in other words, the interest ) being demanded by investors, which would have a negative effect on private opportunities and growth prospects. Moreover, it likely raises the risk of definition.

Our research has demonstrated that there is no universally accepted level below which debts can become untenable. Instead, each case requires context-specific analysis looking at macroeconomic fundamentals such as inflation and unemployment, financial crises as well as the ( potentially self-fulfilling ) market expectations.

Trump’s taking

Without providing any supporting evidence, Trump has just questioned the validity of the methods used to determine the national debt. He asserts that potential fraud has been discovered by the Elon Musk-led Department of Government Efficiency ( DOGE ). If confirmed, these findings could drastically affect perceptions of the country’s economic status.

His controversial claim that the US is” not that wealthy right now” has also been highlighted by reports. We owe$ 36 trillion because we let all of these countries exploit us. The US debt, which was the result of decades of fiscal policy choices in the wake of various economic shocks, is a source of perplexity for these claims. Bill itself doesn’t raise any concerns for experts.

Although foreign stakeholders ‘ holdings of US federal debt have increased over time, less than 30 % of GDP is currently attained. This is down from an all-time deep of 35 % during Trump’s second name back in 2020 during the pandemic.

Of the US national debt held by foreign nations, the largest quantities are owned by Japan, China, and the UK. However, when other nations hold US federal loan, it has nothing to do with” taking benefits” of the US.

In fact, the US dollar is the world’s powerful car money. It is on one side of 88 % of all trades in the foreign exchange market, which has a global daily turnover of$ 7.5 trillion.

As such, the US gains from a so-called “exorbitant opportunity”. This benefit is derived from the worldwide demand for the US Treasury securities’ and the US dollar’s status as” secure have ns,” which has allowed the US to issue debt with interest rates that are relatively lower.

According to research, the US dollar’s” safe have n” status has increased the US’s highest level of sustainable debt by about 22 %. What’s more, it’s estimated to have saved the US government 0.7 % of GDP in annual interest payments.

These benefits come from the fact that US Treasury securities have historically been viewed as risk-free property. Because they are backed by the US government’s full faith and credit, this is especially true during times of severe international financial strain. The US has a proven track record of paying its debts responsibility.

Trump’s remarks, however, could lead to merchants reevaluate the accuracy of official information and the potential risks associated with US Treasury securities and undermine the confidence of monetary areas. These remarks, whether true or false, effect on delicate issues of authorities transparency and fiscal responsibility.

Any advice that the US president’s debt figures are uncertain could be disruptive. Because of this, they may raise questions about the US governmental system’s dependability among the foreign buyers and the holding companies of these securities.

Similar to Trump’s tariff threats, it may be difficult to claim that various nations who own a sizable portion of the US government’s debt are opportunistic. The president’s political diplomatic relations with key debts may become strained, which could lead to greater uncertainty in global financial markets.

For maintaining confidence in the US economy and the ecology of the global financial system, distinguishing between politically charged rhetoric and governmental ecology of the US federal debt will be crucial.

Gabriella Legrenzi is senior teacher in economics and finance, Keele University, Reinhold Heinlein is senior lecturer in finance, University of the West of England, and Scott Mahadeo is senior lecturer in finance, University of Portsmouth

This content was republished from The Conversation under a Creative Commons license. Read the original content.

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SingPost to seek shareholder approval for sale of Australia business

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Singapore Post may hold an extraordinary general meeting on March 13 to ask for shareholders ‘ authorization for the withdrawal in order to proceed with the purchase of its Australian business.

The company earlier announced on Dec 2, 2024, that it had entered an agreement to sell Freight Management Holdings ( FMH) to&nbsp, Australia-headquartered Pacific Equity Partners ( PEP ).

SingPost stated in a Singapore Exchange filing on Wednesday ( Feb 26 ) that the proposed sale at an enterprise value of A$ 1.02 billion ( S$ 867 million ) reflects the business’s intrinsic value.

It comes as part of a comprehensive overview of the nation’s postal service that began in July 2023.

SingPost will primarily consist of its Singapore and international business units, which provide telegraph and transportation services in the Asia-Pacific, following the suggested sale.

The committee has stated that the SingPost party will need to change its strategy once the proposed disposal has been completed, given the significantness of the purchase of the American business, according to the company.

The board of directors will consider gradually depriving the team’s non-core assets to lower its debts and establish a fund pool for reinvestment, subject to the group’s strategy update, or return to shareholders.

The team may acquire investing in supporting the expansion of e-commerce logistics in the time to complete the conversion of the Singapore post and logistics business into a responsible one.

SingPost expects to collect about&nbsp, S$ 659.5 million total money in cash from the sale. This is about&nbsp, S$ 274.8 million more than the net asset value of the Australia company, according to the business.

The sale is anticipated to result in a gain of about S$ 289.5 million on removal.

According to the business,” The squeezed return on equity is roughly four times the SingPost Group’s$ 93.6 million capital expenditure in FMH over the past four years.”

SingPost intends to use some of the money to repay debts, in particular&nbsp, A$ 362.1 million in debt undertaken to gain FMH. A unique dividend payment will also be taken into account by the table.

The proposed price” crystallizes the unrealised benefit of the business,” according to board chair Simon Israel in a statement.

According to SingPost, FMH is one of Australia’s leading five shipping companies in terms of profits.

The Australia business contributed S$ 30.4 million to SingPost’s overall operating profit of&nbsp, S$ 51.2 million for the first quarter of fiscal year 2024/2025 ending in September.

The proposed divestiture continues amid SingPost’s latest sacking of&nbsp, three older executives&nbsp, over their admitted handling of a informant’s report related to its worldwide business.

In addition, the organization is planning to employ 45 people as part of a reform practice, despite the statement that the layoffs were” not associated with any previous incidents or reporting reports.”

SingPost’s third-quarter running revenue fell 23.8 per cent year-on-year to achieve S$ 21.1 million, according to economic benefits posted on Feb 20.

The decline was expected to “ongoing economic pressures, including higher prices, supply chain disruptions and a very economical environment”.

In the second quarter, SingPost’s Australia company, growth in revenue of 12.1 percent, and property leasing outweighed lower efforts from its Singapore and international businesses.

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Kidney trade: Myanmar villagers fly to India to sell organs illegally

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12 days ago
BBC Burmese
BBC Image showing Zeya with his back to the camera, sitting cross legged on a floor made of bamboo poles, holding a cigarette in his right hand. His head is blurred and there are several water containers in buckets in the background. BBC

” I just wanted to possess a property and pay off my bills- that’s why I decided to sell my kidney”, says Zeya, a land worker in Myanmar.

Prices had soared after a military coup in 2021 triggered civil war. He could barely feed his young family and was badly in debt.

They all lived in his mother-in-law’s apartment, in a town where thatched houses lined dirt roads, a few hours ‘ drive from the country’s largest city, Yangon.

Zeya, whose brand has been changed to conceal his identity, knew of local citizens who had sold one of their liver. ” They looked good to me”, he says. So he started asking about.

One of the eight people in the area who claimed to have traveled to India and sold a liver to BBC Burmese.

Zeya’s account provides an explanation of how illicit instrument trading occurs in various Asian countries.

Arranging the offer

In both Myanmar and India, Zeya claims to have found a guy he describes as a “broker” after learning that buying or selling individual organs was prohibited.

He claims the man conducted clinical tests and that a few weeks after he learned that a potential victim, a Burmese girl, had been located, and that both of them could travel to India for the procedure.

If the donor and victim are not near relatives in India, they may show the donor’s motive is ethical and describe their relationship.

Zeya says the dealer forged a report, which every house in Myanmar has had, listing the information of family members.

” The agent put my name in the patient’s home tree”, he explains.

He claims that the broker made the claim that he was giving to a person who is not a blood equivalent but a distant relative as if they were giving him money.

Getty Images Close up of man's torso as he lifts his clothing to revealing a diagonal scar, that runs from the centre of his stomach to his side. He was photographed in Afghanistan in 2022, Getty reports that he sold his kidney in an attempt to save his family from starvation.Getty Images

Finally, he says, the agent took him to join the victim in Yangon. According to him, a doctor who identified himself as a doctor that completed more documents and warned Zeya that he would have to pay a sizable fee if he resisted.

After that, the BBC reached out to this gentleman, who claimed that his job was to evaluate the suitability of a person before evaluating the donor-recipient marriage.

Zeya claims that Zeya was promised a package worth 7.5 million Myanmar kyats. The unofficial exchange rate has fluctuated since the revolution, with this amount varying between$ 1, 700 and$ 2, 700 over the past couple of years.

He claims that he traveled to north India for the procedure, which was performed in a sizable doctor.

An approval section called an approval council, established either by the hospital or the local government, is required to approve all transplants involving foreign citizens in India.

Zeya says he was interviewed, via a speaker, by about four persons.

” They asked me if I was freely donating my liver to her, not by army”, he says.

He claims that he explained that the graft was approved because the victim was a sibling.

Before he lost awareness, Zeya recalls the medical professionals who gave him the anesthesia.

” There were no major problems after the operation, except that I couldn’t walk without pain”, he says, adding that he stayed in hospital for a month later.

‘ Fake dad ‘

Another donation, Myo Win, who was also not identified as his true name, claimed to have lied to be related to a person in another way to the BBC.

He claims that the dealer gave me a piece of paper and that I had to memorize what was written on it. He also claims that he was instructed to state that the victim was married to one of his friends.

The agent arranged a false mother for the call, he claims, but the person who is assessing my case also called my mother. He adds that the caller acknowledged that he had given his liver to a sibling with her consent.

Myo Win claims that the seller had to give him about 10 % of the money because it was described as a” benevolent donation” and that he received the same amount as Zeya.

Both people assert that they were given a second of the check upfront. As he entered the operating room, Myo Win claims that he had this in brain:” I made up my mind that I had to do it because I had already taken their money.”

He goes on to say that he” choose this eager method” because he was dealing with his wife’s medical bills and debts.

Since the revolution, the Myanmarese sector has been devastated and foreign investors have fled. In 2017, a quarter of the population were living in poverty- but by 2023, this had risen to quarter, according to the UN’s development organization, UNDP.

Myo Win claims that the seller did not clarify that selling his liver was prohibited. ” I wouldn’t have done it if he did. I am frightened of ending up in prison”, he says.

In order to maintain the privacy and safety of the respondents, the BBC does not name any of the individuals or organizations involved.

However, another person in Myanmar, even speaking secretly, told the BBC he had helped about 10 folks buy or sell liver via surgery in India.

He said he referred people to an “agency” in Mandalay in northern Myanmar, which he said made plans.

” But don’t fret about contributors”, he said. We have a list of contributors waiting in line to give their liver.

He claimed that papers were fabricated to identify individuals as marriage-related. When questioned about receiving funds for his assistance, he refused to respond.

Detention in India

Organ transplants have increased by more than 50 % worldwide since 2010, with about 150, 000 carried out annually, according to the World Health Organization ( WHO ). However, it claims that only about 10 % of the world’s need is met by the supply of tissues.

In nearly all countries, it is unlawful to trade human body parts, which is difficult to measure. In 2007, the WHO estimated that 5-10 % of transplanted organs came from the black market, but the number may be higher.

Illegal liver sales driven by poverty have been documented in recent years across Asia, including in Norway, Pakistan, Indonesia, Afghanistan, India and Bangladesh.

Getty Images Generic library image of surgery, showing a close up of several hands in surgical gloves holding medical instruments including scissors and a scalpel, close to part of a patient which is shielded from view by green fabric.Getty Images

In response to reports in the media and a subsequent police investigation, concern about liver sales has been rising in India, where it has long been a gateway for medical tourism.

An American doctor and her helper were among the seven people who were detained last July in connection with an alleged liver racket, according to Indian police.

Police allege that the team used forged documents to entice bad Bangladeshis to promote their kidneys to get the transplants approved.

It is claimed that Dr. Vijaya Rajakumari, who had been employed at the prestigious Indraprastha Apollo Hospital in Delhi, performed the procedures while visiting a different medical, Yatharth, which was a few kilometers away.

Her attorney told the BBC that her claims are” completely unsupported and without any supporting evidence,” that she only performed surgeries that were approved by approval boards and that she always performed in accordance with the law. According to her loan order, she is not accused of preparing forged files.

Yatharth Hospital stated to the BBC that all of its cases, including those handled by visiting experts, “are subject to our strong protocols to confirm compliance with legal and ethical standards.”

The doctor stated that” we have strengthened our procedures to stop such things from happening in the future.”

Apollo Hospitals claimed that Dr. Rajakumari was a freelance consultant working on a fee-for-service schedule and that it had ended all medical engagements with her following her arrest.

Dr. Rajakumari has not been charged in judge.

‘ No sorrow ‘

A senior health ministry official wrote to Indian state last April warning of a” wave” in foreign implants and calling for better tracking.

Foreign nationals who wish to donate or collect organs may have their documents verified by their own country’s consulate in India, including those that show the relationship between the donor and the recipient, in accordance with American law.

The BBC contacted India’s wellness government and the National Organ and Tissue Transplant Organization, as well as Myanmar’s martial state for comment, but has received no response.

A common health activist in Myanmar, Dr Thurein Hlaing Win, said:” Law enforcement is no powerful”.

He added that right follow-up maintenance is required in addition to the risks of bleeding during operation and harming other organs, as well as that possible donors should be aware of the risks.

Getty Images A line of police with riot shields and helmets face a crowd of protesters with a gap of a few metres between the two sides. Behind the police is a white vehicle spraying water from a water cannon on its roof, as protesters demonstrate against the 1 Feb military coup in the Myanmar capital Naypyidaw on 9 Feb, 2021Getty Images

Zeya was last heard from by the BBC many months after having surgery.

” I was able to sit my debt and bought a plot of land”, he said.

He claimed he was unable to build a house while recovering from surgery and that he could not afford to. He claimed he had been experiencing back problems.

” I have to resume working immediately. I have to deal with it if the side effects occur suddenly. I have no worries about it”, he added.

He claimed that he kept in touch with the receiver for a while and that she had informed him that her kidneys were in good health.

Speaking on condition of anonymity, she told the BBC she paid 100m kyats ( between around$ 22, 000 and$ 35, 000 in recent years ) in total. She denied that documents were forged, maintaining that Zeya was her sibling.

Six weeks after his procedure, Myo Win told the BBC he had paid off most of his obligations, but not all.

He continued, adding that he had been having some belly issues since the surgery,” I have no work and not even a cent left.”

He said he had no worries, but finally added:” I am telling other people not to do this. It is not great”.

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China’s largesse was always a better deal than USAID’s – Asia Times

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As part of a wider plan spearheaded by Elon Musk’s Department of Government Efficiency ( DOGE ), US President Donald Trump has shut down USAID, the country’s top international aid organization.

USAID has been harshly criticized by the Trump administration for perpetuating errors and oddities through its support to developing nations. Musk called USAID” the most crooked establishment” and declared that “it deserves to die”.

While USAID has long claimed to focus on humanitarian aid, health services and growth, Trump has said that it has rather facilitated political interference, problem, opaque governance and unwarranted interference in the inner affairs of recipient countries.

Trump and Musk’s claims would seem to corroborate accusations that recent unrest in Bangladesh and Ukraine’s 2014 “orange revolution” —an event that ultimately led to the Russia-Ukraine war in 2022—are evidence of USAID’s role in orchestrating” color revolutions”, a modern form of regime change akin to a military coup around the world.

The US international coverage framework has three columns: security, politics, and growth. By promoting international policy and expanding effect, USAID purports to support the interests of the US, but it doesn’t always address the real needs of the sender nations.

Only a small portion of the allocated budgets are used to reach the intended recipients, as a significant portion of USAID money is absorbed by administrative costs, high wages, obligations for intermediaries, and highly expensive consultants ( many former USAID senior officials ).

Studies reveal that for every 100 US dollars USAID spends, a mere 12.10 money reaches reader places. Additionally, funding from USAID has been accused of undermining local laws and regulations, causing bribery and opaque governance in host nations. Criticisms contend that the company generally benefits the country’s ruling political elite and its US-educated offspring rather than the less fortunate.

Trump’s” America First” coverage, which is apparently trying to stop the theft of US taxpayer funds domestically and internationally, includes the decision to close USAID. The disclosures of Trump-Musk information have also made the Global South countries have to consider the effects of American support and take the necessary steps to increase financial independence, sovereignty, and progress.

American foreign aid acts as a double-edged weapon for several developing countries. While it claims to bring about growth in the terms of the recipients ‘ nations, it entails dominance and undermines their economic sovereignty and independence.

Western donors first disburse sizable grants, but after recipient nations become more dependent on external aid, they switch to smaller grants.

The recipient countries ‘ economic independence is restrained by the severe economic policy conditions of Western loans ( bilateral and multilateral, such as from the World Bank and IMF), which keep them stuck in a never-ending vicious cycle of borrowing to pay off outstanding debt.

It undermines the foundation of people’s employment and sustainable development by using a more limited government budget to pay off debt and suppress home agriculture and young industries.

American support typically has a relationship to the political objectives of the donor countries, making the recipient countries have to connect their guidelines with those of their donors. In consequence, the receiving nations are unable to develop their own economic and trade techniques.

Moreover, according to Musk, American aid has been linked to promoting fraud and errors in recipient nations by shutting down USAID. Some funds are lost there or mismanaged by help administration, failing to achieve their original objectives.

While frequently well-intentioned, including initiatives to distribute gratis food, grains, and other essential services, USAID’s assistance frequently tramples local crops and companies by displacing domestic producers and deteriorating local knowledge and skills.

Instead of fostering long-term financial self-sufficiency, for investment breeds dependence symptoms, making nations centered on outdoor aid. Some academics contend that American aid fosters resentment and hopelessness rather than promoting real growth.

It is now a very good idea for developing countries to move to financial freedom and independence. Trump’s discovery on USAID calling for a conscious effort to build local business, cut down on imports and boost local production.

Investment in training, technology and equipment is crucial to developing the ability to grow effectively. Development-focused countries must collaborate with lenders who offer enhancement funds without having to meet any social or policy requirements in order to accomplish these objectives.

The Global South has a promising future ahead of geographical trade and assistance. The Global South must abandon the notion of getting rich by exporting cheap products to Western markets or relying on foreign support for national development as the US embraces protectionist policies, which are more demanding than even the Smoot-Hawley Tax Act of 1930.

Rather, it should concentrate on fostering local partnerships and business contracts. To protect themselves from raw materials and manpower exploitation, American nations can use pan-African assistance and collective bargaining.

South America may improve frameworks for local partnership, while ASEAN countries should take advantage of the opportunity to build similarly bold local initiatives. The integration of the Asian economies to produce tangible outcomes is essential under the leadership of Russia.

To implement its stalled free trade agreement (FTA ), South Asia should revive the South Asian Association for Regional Cooperation ( SAARC ). These local efforts can be strengthened by a reinforced BRICS framework, which will encourage greater cooperation among the Global South countries.

More important, these nations need to regain possession of their natural sources. By regaining control over their separation, miners, utilization, and trade, developing nations had put an end to wealthy nations ‘ use of their resources. This will increase the value added from these resources by allowing nations to offer their resources fairly.

Through shared and regional discussions with China, there might be a good chance of achieving this objective. Compared to the zero-sum sport usually promoted by the West, China’s “win-win” trade and development method emphasizes common benefit. Cooperating with China may help China achieve its goals while avoiding the numerous negative effects of American support.

Under the American support model, which is defined by the conditionality of grants and loans, political and economic passions of donor countries are given precedence. American aid often comes with needs for democratization, social reforms, animal rights improvements and stress to meet alliances against rival nations.

It is a type of interference in the domestic affairs of the receiving nations, making them to adhere to American economic, political, and social norms, which are frequently incompatible with their social values and traditions.

China, in comparison, favors trade and investment over social engineering. Through procedures like the Belt and Road Initiative, China invests in large-scale infrastructure projects, including ports, railways and bridges, in recipient places. For numerous emerging countries, these activities are the foundation of long-term monetary expansion.

For example, Chinese investment has accelerated Africa’s clean energy transition and online and transport infrastructure. Interestingly, because China’s design does not impose monetary policy, social systems or cultural requirements, it permits nations to preserve financial policy-making and social autonomy. In this way, it has surpassed the need for nations to chart out their development plans.

China’s expanding monetary potential has a lot of benefits for the global south. China has a great need for resources and products from developing nations because it has the largest financial and luxury market in the world since 2020.

By engaging more closely with China’s supply chains, developing nations can gain significant new markets for their products, including for meals, fresh materials, and manufactured products. Also, China’s industrial overcapacity offers opportunities for relocating its” twilight business” and low-technology-based manufacturing industry to the Global South, fostering native modernization and job creation.

China’s critics often warn of the dangers of resource exploitation and “debt trap diplomacy”. However, many people in the Global South believe that China’s approach is a viable replacement for Western aid, which has always prioritized the needs of its recipients over those of their donors.

Where there was no alternative in the Global South ten years ago, China offers a frequently welcome alternative to Western aid. ( Though Japan has long provided foreign aid without the constraints put on by Western donors ) )

These countries can lay the foundation for self-reliance, economic sovereignty and sustainable development by embracing China’s positive-sum game model over the West’s often zero-sum approach.

To be sure, the debate over development models and foreign aid is not entirely settled. However, as the Global South grapples with the legacy of Western aid and explores new partnerships, it must prioritize its economic sovereignty, national interests and independence.

The Global South may break the cycle of dependency and lead a more just and prosperous future by utilizing regional collaboration, asserting control over natural resources, and engaging with alternative partners like China.

Bhim Bhurtel is on X at @BhimBhurtel

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While US builds walls, China ripping them down – Asia Times

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The United States is threatening to impose levies on its main trading companions. China is advancing deal with the Global South in the interim to strengthen its position as the world’s hub for manufacturing and technological innovation.

If the position of America in globalization has been to take the country’s goods and resources by building on a basis of ever-increasing debt, China has been to produce tangible goods for the global market.

China is expanding its market, particularly to those in the World South.

China eliminated all tariffs on products from the least developed nations as of December 2024. Foreign Premier Li Quang has also referred to China as a potential financial hub for international investment.

Center of Asian business

China’s trade deficit with the rest of the world is about US$ 1 trillion money. Its share of global exports was 14 % in 2023, compared to 8.5 % for the U. S.

China is collaborating with local nations to establish itself as the center of Asian trade. As Chinese firms invest abroad to avoid National tariffs and expand their markets, China’s Belt and Road Initiative is funding facilities in about 150 countries.

At the moment, China accounts for 35 % of the world’s production. The UN projects that this will increase by 45 % by 2030.

China has achieved this reputation by building effective, high-quality system.

Additionally, it fosters very inventive and technologically savvy ecosystems. The recent emergence of DeepSeek, a Chinese artificial intelligence ( AI ) startup that is dramatically disrupting the sector, illustrates this reality.

China also has authority over the world’s industrial supply stores in numerous crucial areas.

The Chinese superstar

Despite its continuing economic decline, China’s market grew by about 5 % in 2024 and has the potential to grow more as it transitions to a high-tech business.

By 2030, the state may have what’s known as a consuming course of 1.1 billion people, making it the world’s largest consumer business.

Only 7.8 % of the population has the equivalent of a bachelor’s degree, but China produces about 65 % of STEM (science, technology, engineering and mathematics ) graduates globally on an annual basis.

China is also the world’s most innovative companies and industries, but there is still room for improvement in equipment in smaller cities and rural areas. China will need to take the lead in managing these innovations ‘ social and economic effects because it is a worldwide leader in using technology and AI.

China has scale economies that no other nation can meet, aside from India. Its dominance in the manufacturing sector is the natural result of introducing a growing, technologically advanced nation with a large population to the contemporary world system.

The primary Donald Trump administration aimed to encourage private business and to encourage investment in the US. He thought taxes may increase the number of manufacturing tasks, reduce the federal deficit, and lower foods costs.

The following Trump administration has resumed imposing tariffs in an effort to import products from different nations into the US. Trump has threatened to impose levies on the United States, Mexico, and Europe.

He has already imposed additional 10 % tariffs on all Chinese goods and imposed 25 % tariffs on all steel and aluminum imports into the US. He’s also threatening tariffs on Taiwan, attempting to remove it of its semiconductor sector.

Trump generally demands that other nations address business imbalances by purchasing more expensive British exports in exchange for unhindered access to the US market.

He’s attempting to recreate an American business dominance that was only possible after World War II. Also, the traditional circumstances that led to China’s reduction in the 19th and 20th centuries are longer history.

To engage with China’s benefits, the US needs a competent and powerful state capable of long-term planning. Under Trump, the US is losing this already-weak potential every day.

National loan

Because both the state and Americans incur remarkable debt to finance their usage, the US is the largest consumer economy in the world.

Currently, the American national debt is more than$ 36 trillion while consumer debt was$ 17.5 trillion in 2024.

Because the US is considered the world’s reserve currency, the dollar is gather a lot of debt. However, the US has manipulated the money by putting sanctions and laws against it outside of its borders by using the currency’s reserve status to impose sanctions and laws on sovereign states.

This has created a significant force — led by the BRICS countries of Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, South Africa and the United Arab Emirates — to remove the US dollars with different economic instruments.

In response, Trump has threatened 100 % taxes on any states that try to cut the US dollar.

There has been a decline in most measures of social well-being in the US, but the British economy has grown through pumping up property bubble. This coincides with increasing British social, political and economic volatility.

Taiwanese products occupy

Imports to the West are more expensive than China’s in the Global South. In Asia, Africa, and Latin America, Taiwanese businesses and products are the most popular.

To the Global South, there are obvious benefits to entering cheap, high-quality systems and commercial products from China. China’s industrial world is also gain a lot from them, but perhaps at the expense of its own established professional capacity.

A contractor checks the display screen at the hall for Chinese computer company Sugon during the World AI Conference in Shanghai in July 2023 that features a computer device and the Chinese words for “independence.” &nbsp, Photo: AP via The Conversation / Ng Han Guan

China’s increasing production dominance means that every nation will need at least some of its products to build or maintain industry, despite some states stumbling to block Chinese imports to safeguard their industries. Nearly difficult for most nations to completely stop all deal with China.

The world is entering a new era of modernization. Many states must decide how to handle the economic and political costs and advantages of engaging with China’s vast industrial potential while avoiding being financially hampered by the US.

St. Thomas University ( Canada ) professor of international relations and political science Shaun Narine.

The Conversation has republished this essay under a Creative Commons license. Read the original post.

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