A Chinese model for modernisation

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A Chinese model for modernisation
The scenic view of Guilin is printed on the back of a 20 yuan banknote.

China is promoting Guanxi Zhuang Autonomous Region, which lies on the border with Vietnam, as a gateway to the mainland for businesses and tourists from the Asean region.

Guanxi’s location in southern China makes it well-suited to become a gateway to Southeast Asia. The region is connected to Vietnam by land, sea and air, and it is served by over 30 international cargo and passenger services which depart from its three international airports and three deep-sea ports.

Local authorities are hoping these facilities will attract more businesses and tourists from Southeast Asia to visit the region, and vice versa, according to Dong Changting, the deputy director of External Publicity and Exchange Department of Guangxi Zhuang Automomous Region.

Guangxi is also known for having one of the highest numbers of education institutions which provide Thai language courses to Chinese students.

A growing number of Chinese students are interested in taking up Thai lessons in Guangxi prior to leaving for Thailand. Similarly, a source said, an increasing number of Thais are also coming to Guangxi to learn Chinese.

The Chinese government is keen to facilitate language exchanges as it expands its reach in the region through its Belt and Road Initiative (BRI), the source said, noting such exchanges also boost the nation’s soft power capacity, which it needs to maintain its influence over its allies.

BRI is a major infrastructure push launched by the Chinese government, which Beijing envisions would ultimately link all major trade routes across Asia, Europe and Africa.

Prime location

Deputy Prime Minister and Commerce Minister, Phumtham Wechayachai, has said Guangxi’s location and proximity to Southeast Asia makes it an ideal gateway for Thai agricultural exports to China, such as jasmine rice, durian, grapefruit and longans.

The reason, he said, is because the autonomous region is well equipped to handle land and marine cargo shipments, allowing Thai products to reach the markets faster than if they had gone through a different gateway.

Recently, authorities in Guangxi Zhuang Autonomous Region hosted a China-Asean expo to boost cooperation between Chinese businesses and their Asean counterparts, in which they showcased the region’s rapid development and modernisation.

The trip was organised by the Propaganda Department of the Guangxi Zhuang Autonomous Region Committee of the Communist Party of China and the Guangxi Branch of China News Service.

Known for Guilin

Before Guangxi became a modern and popular trade hub, it was first known for its natural attractions, chief among which is Guilin, which is world-famous for its beguiling limestone karst formations.

The landscape around Guiling is so renowned that it is featured on the 20-yuan banknote, said Ma Tieqiao, chairman of Guilin Junda Transportation Company, which offers leisure cruises along the Li Jiang River.

In the past, he said, most tourists would have to get on bamboo rafts, which are only big enough for about three people, or risk getting crammed into a small boat for larger groups.

As the number of tourists continue to grow, in 1985 the Guilin Sightseeing Shipping Co was founded to provide improved services for local and international visitors.

The move proved to be successful and now scores of leisure boats cruise along the Li Jiang River everyday, he said.

Home to high-tech industry

Now, Guilin is increasingly becoming known as a hub for high-tech industries.

The rapid transformation started in 1988, when Guilin High-Tech Industrial Development Zone was established. It was upgraded into a high-tech special development zone in 1991, becoming the first national-level high-tech zone across China’s five autonomous regions.

In just 30 years, Guilin has become one of the leaders in scientific innovation and industrial development.

One example of a successful company based in the region is Guangxi Guilin Zhishen Information Technology Company, which produces anti-shake tripods for cameras and other equipment for digital photography, as well as mobile phones.

The company has won several awards such as the iF Design Award, the Red Dot Award and the Excellent Design Award, according to the company.

In addition, Guigang, which is located in eastern Guangxi, has been designated as a hub for electric vehicle (EV) manufacturers. The city is home to more than 100 EV-related businesses, including e-bike producers, machine components and vehicle parts manufacturers.

Having an EV production base in Guigang will give China more opportunities to export its EVs to countries in Southeast Asia, said a representative of Guangxi Luyuan Electric Vehicle Company, which manufactures and distributes electric motorbikes and e-bicycles.

He said as the electric vehicle industry has become more popular in the world, the company expects to expand its reach to many countries in Southeast Asia.

EVs will be a solution for the green energy ecosystem, he said.

The Sun and Moon Pagodas are illuminated at night in the Fir Lake, one of popular tourism sites in Guilin. Photos by Penchan Charoensuthipan

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South Korea plunging deeper into sub export markets

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South Korea aims to crank up its weaponry shipments with a new type of submarine with the potential to give small and mid-sized navies in the Pacific an asymmetric edge in underwater warfare.

This month, Naval News reported that South Korea’s HD Hyundai Heavy Industries (HD HHI) is developing an indigenous mid-size submarine for export markets. South Korea’s submarine market is mainly divided between HD HHI and Hanwha Ocean (previously DSME).

The report notes that Dr Won-Ho Joo, chief operating officer of HD HHI’s Naval & Special Ship Business Unit, made the announcement. He emphasized the importance of collaboration between HD HHI and Hanwha Ocean to enhance competitiveness in international bidding and shipbuilding, the Naval News report quoted him as saying.

The report also mentions Hanwha Ocean’s commitment to working with over 200 domestic partner companies for submarine procurement and future maintenance projects.

Naval News mentions that HD HHI is planning to participate in the Canadian Patrol Submarine Project (CPSP) and has signed a technical cooperation agreement with Babcock Canada. It has also signed a Memorandum of Understanding (MOU) with Polish National Defense company PGZ for Poland’s Orka Project, the nation’s submarine program.

South Korea has previously sold submarines to foreign nations. Nuclear Threat Initiative (NTI) mentions that in 2011, South Korea outbid Russia, France and Germany on a US$1.1 billion contract to supply Indonesia with three Type 209-class submarines.

NTI notes that the first two submarines, the KRI Nagapasa and KRI Ardadedali, were delivered to Indonesia in 2017 and 2018, while the third submarine, KRI Alugoro, was assembled by PT PAL in Indonesia with South Korean support as part of a technology-sharing program.

However, Asia Times noted in March 2022 that Indonesia is reportedly not satisfied with the performance of its South Korean-built submarines, citing power supply problems connected to the batteries, among other technical issues.

Reports indicate South Korea continues to improve its submarines, producing cutting-edge designs that may have already addressed the problems with its earlier models.

In a 2019 article for the S Rajaratnam School of International Studies (RSIS), Richard Bitzinger notes that South Korea began building submarines in the 1990s with the KSS-1, which were license-produced German Type 209-class units, producing nine such vessels.

Bitzinger says the KSS-1 was followed by the KSS-2, a licensed German Type 214 class version. He notes that the KSS-2 was a significant upgrade over the KSS-1, which is larger, heavier and, most importantly, runs on air-independent propulsion (AIP) technology. Nine KSS-2s were built between 2006 and 2017.

The KSS-2 was followed up by the KSS-3, one of the biggest conventional submarines at 3,000 tons, making it capable of blue-water operations. Bitzinger notes that the class is heavily armed with traditional torpedo tubes and a six-silo vertical launch system (VLS) for anti-ship, cruise and submarine-launched ballistic missiles (SLBM).

The KSS-3 is the world’s first AIP submarine capable of launching SLBMs. Bitzinger says later versions of the submarine may have a 10-silo VLS for SLBMs.

Currently, South Korea has 2 KSS-3 submarines, with plans to have nine units. South Korea’s new mid-size export submarine would likely be a variant of the KSS-3, with each unit designed according to technology export restrictions and customer specifications.

South Korea, a major emerging arms exporter, is well-poised to be a major player in emerging submarine markets, most notably in nearby Southeast Asia.

According to the Stockholm International Peace Research Institute (SIPRI), South Korea was the world’s 9th largest arms exporter in 2022, accounting for 2.4% of global arms exports, with most of its sales going to the Philippines, India, and Thailand.

SIPRI data indicates a massive leap in South Korean arms exports between 2013 and 2017 and between 2018 and 2022, showing a 74% increase between the two five-year periods.

Submarines are high on Southeast Asian nations’ military wish lists, driven largely by fears about China’s increasing naval might in the South China Sea. Regional nations are also engaged in low-level arms races where neighbors seek to keep pace with each other’s arsenals.   

In July 2023, Defense News reported that Singapore received the first of four German-built Type 218SG submarines to replace its aging Archer and Challenger-class units. Defense News notes that the Type 218SG is specially designed for tropical waters and possesses state-of-the-art capabilities, significant payload capacity, high levels of automation, enhanced underwater endurance and optimized ergonomics.

Naval News reported in June 2023 that major shipbuilders such as France’s Naval Group, Spain’s Navantia and Hanwha Ocean have offered the Philippines various submarine deals as the latter struggles to modernize its military amidst increased Chinese assertiveness in the South China Sea.

However, given its overreliance on the US and limited defense budget, it is unclear if the Philippines has the political will and resources to pursue its longstanding submarine ambitions.

Asia Times reported in May 2023 that Indonesia had selected France over South Korea as its submarine program’s leading partner. Indonesia plans to acquire two Scorpene-class submarines with a preliminary agreement between PT PAL and Naval Group to collaborate on building two units and establish a joint research and development facility.

Indonesia views submarines as an asymmetric power projection asset, as it does not have the resources to build a blue-water navy.

The New Straits Times reported in February 2023 that Malaysia plans to acquire two more submarines in addition to the two Scorpene-class units it already operates.

New Straits Times says that the first submarine will be acquired between 2031 and 2035 and the second between 2036 and 2040. The report notes that Malaysia views submarines as strategic assets as they are involved in the sensitive South China Sea disputes.

As for China, NTI notes that as of March 2023 China had 56 submarines comprised of six nuclear ballistic missile submarines (SSBN), six nuclear-powered attack submarines (SSN) and 44 diesel-electric attack submarines (SSK), with 17 of the 44 vessels running on AIP technology.

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Moody’s warns US, China it’s time to change their ways

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Moody’s Investors Service is actively and innocently prodding the two largest bears in the world economy.

Experts at the agency threatened to remove Washington’s final AAA credit score next month. The increase in US 10 time bond yields to 17-year peaks was exacerbated by that volley.

Beijing was the next city to speak Moody growl this week. As Asia’s largest economy struggles with an economic slowdown and a worsening real estate crisis, Moody’S changed its outlook on the Chinese government of debt from” stable” to “negative” on Tuesday ( December 5 ).

A day later, Moody’s went even further by telegraphing potential rating steps against state-owned bank tycoons, numerous Foreign government-backed organizations funding system assignments, and even Hong Kong and Macau.

Threatening downgrades for the Industrial and Commercial Bank of China Ltd., China Development Bank, and another behemoths will undoubtedly work if Moody’s is attempting to capture the attention of Chinese leader Xi Jinping. It will also affect international investors who are concerned that Beijing is n’t moving quickly enough to contain contagion risks.

In general, the urge is to respond violently to these instructions. The group of US President Joe Biden carried out that action.

Treasury Secretary Janet Yellen responded to Moody’s risk to drop by saying,” This is a choice I disagree with. Treasury securities continue to be the world’s top safe and liquid asset, and the American market is ultimately strong.

China is also pushing up. Issues of Moody about the aspirations of China’s economic development and fiscal sustainability are unnecessary, the Ministry of Finance of Xi stated on Tuesday, expressing its “dissatisfaction.”

Beijing added that the fallout from financial and property issues is” stable” and that it is working to “deepen measures to tackle risks and challenges.” However, it’s important to take into account the potential benefits of rating agencies like Moody making a timely call for stronger action against the two economical powers.

Janet Yellen, the US Treasury Secretary, disagrees that the country merits a upgrade. Asia Times files / AFP picture

The rules of economic gravity however apply, as Moody’s served as a helpful warning to Biden, Yellen, and Jerome Powell, chairman of the Federal Reserve, in the case of America.

Faith in the money is rapidly eroding as the US federal loan surpasses$ 33 trillion, Biden’s White House raises spending, and the Fed tightens its restrictions with the most vehemence in years.

The price increases in gold and cryptocurrencies are merely the most recent example of how traditional Bretton-Woods economic realities are clashing with contemporary disregard for the ways in which markets you influence perhaps the largest economies.

China, as well. The 24 members of the Communist Party’s Politburo will soon meet to discuss policy priorities and determine rise objectives for the upcoming year. Following that, a course may be charted by the annual Central Economic Work Conference, which will bring up municipal and central government leaders.

A development goal of around 5 % is anticipated for 2024, according to economists at JPMorgan, Standard Chartered, and other major investment bankers.

An optimistic growth target, according to Goldman Sachs economist Maggie Wei,” may help lessen the risk of China falling into a self-fulfilling cycle of melancholy expectations, more depressing growth, and reinforcing negative expectations.”

However, Moody’s is reminding group leaders that economic gravity is more difficult than that.

According to Moody’s, the government and larger public sector may help financially strapped regional and local governments and state-owned enterprises in China, according to its reasoning.

When Moody’s warns of “increased dangers related to functionally and consistently lower medium-term economic growth and the continued reduction of the property sector,” it also speaks for many.

However, it is implied in bold font between the lines that many international investors are n’t buying Xi’s promises to carry out audacious structural reforms. And how new stimulus increases are then “posing wide downside risks to China’s macroeconomic, economic, and institutional strength,” according to Moody.

Chinese President Xi Jinping claims that he now favors more expansion driven by the private sector. Online Screengrab image

China’s finance minister responded by saying that mainland growth is improving in the October–December quarter and that the Chinese economy will account for more than 30 % of global GDP in 2023. That would be consistent with predictions made by the International Monetary Fund ( IMF).

However, there is no timeline for taking action to grow&nbsp, better, rather than just faster, in China’s new rhetoric. According to scholar Lee Lu at Nomura Holdings, more stimulus may become necessary in the short term. We also think it’s too early to say the bottom, he says, “despite the numerous trigger actions announced recently.”

The good news is that Premier Li Qiang is thought to have received Xi’s approval to speed up efforts to reinvigorate the private sector. Li’s team unveiled a 25-point plan package next month to level playing fields and increase funding for private companies.

Eight economic officials and firm tanks are involved in the program, including the All-China Federation of Industry and Commerce, the People’s Bank of China, National Administration of Financial Regulation, China Securities Regulatory Commission, &nbsp, and National Development and Reform Commission.

The goal is to significantly raise the loan to private enterprise ratio in order to increase innovation and productivity and support more powerful supply chains. According to Li’s group, the goal is to guarantee” ongoing revenue solutions” for private businesses that refrain from “blindly stopping, suppressing, withdrawing or cutting off money.”

The NDRC stated this week that China “is comfortable and more capable of achieving long-term robust growth, and constantly bringing new impetus and options to the earth through China’s accelerated advancement.”

According to scholar Diana Choyleva of Enodo Economics,” Beijing is serious about getting funds flowing to the healthier components of the home field, whether it be personal or state-owned.” &nbsp, They are not satisfied with entrusting the choice to the businesses, which have discriminated against the private market for a number of factors.

Jumpstarting the creation of a high-yield bond market to expand China’s money markets universe is an essential component of the business. Theoretically, a lively and varied range of debt offerings would boost options for private sector financing and boost China’s appeal to investors.

These, Xi’s efforts to make the yuan more popular on international businesses are advantageous. As concerns about the US dollar rise, the battle is gaining momentum. Nothing could hasten that progress more quickly than swiftly and openly putting in place significant reforms.

Here is where Xi and his team needed to win back the confidence of international investors. It is important to note that The Moody’s news did n’t destroy Chinese assets.

The most significant lesson from the Moody’s statement, according to economists at advisory organization China Beige Book, is that their team takes years longer than the majority of China viewers to reach an obvious conclusion. Little brand-new around. Continue.

However, analysts at Citigroup Global Markets predict that in 2024, China’s investment-grade payment issues will be more alluring than those of US counterparts. Following the Moody’s information, Citi experts wrote,” The market has now priced this in to some extent, and China investment-grade has some price.”

In Chongqing, China, a butler is seen strolling along dingy bridges with brand-new residential properties in the distance. Photo: Zhang Peng, LightRocket, CNBC Screengrab, and Getty Images

As Beijing works to regulate real estate markets, Citi experts also cited China’s” stronger, but still fragile micro story.” Chinese money bonds with an investment class are currently up about 5.4 % in 2023.

According to Citi researchers,” China risks are primarily in the price.” The Chinese offshore credit market, which is regarded as an asset and money diversifier for regional investors, tends to do well in times of inland equity-market volatility.

Analysts ‘ concern that China’s time of raising GDP rates solely through stimulus and funding is over, however, is where Moody makes a point.

For starters, “remaining plan room may be limited, as we believe central authorities needs to balance moral liability problems when supporting local governments with substantial debt burdens,” according to scientist Samuel Kwok at Fitch Ratings.

Another is that the quality of mainland growth can only be improved by strong financial retooling that unlocks China’s longer-term growth potential. This trend toward trigger over reform explains why S&amp, P Global Ratings predicts that China will grow below 5 % into 2026.

According to S&amp and P record analyst Eunice Tan, China’s real estate market is still under stress despite stimulus. The cash patterns of property developers and heavily indebted regional government borrowing vehicles are being dented by limited access to credit assistance and higher corporate debt utilize.

As a result, S&amp, P’s Tan claims that the rise website for the Asia-Pacific is moving from China to South and Southeast Asia. Tan notes that this change may limit China’s lenders ‘ medium-term face while enhancing those of India, Vietnam, the Philippines, and Indonesia.

China’s imports decreased by 0.6 %, despite data released on Thursday showing a 0.5 % increase in exports in November year over year. More policy supports are required to promote demand, according to a word from UBS analysts, and the data more dashed hopes of regaining China’s consumption-led economy.

According to OANDA researcher Kelvin Wong, “domestic need has remained weak in China despite continued revival efforts by policymakers via intended monetary and fiscal stimulus steps.”

Therefore, according to Wong,” It seems that the previous one-month treatment of transfer growth recorded in October is probably a “blip” and November’s bad year-on-year growth rate suggests the rolling twelve months of bad growth trend in imports remains intact.”

At the Horgos Port in the autonomous region of north China’s Xinjiang Uighur, business containers can be seen. Image: Xinhua

Global traders are anxiously anticipating the Politburo’s next chamber event as difficulties mount. This once-every-five-year program typically takes place in early December.

The fact that it has n’t been scheduled yet has led to rumors that Xi wants to address a number of pressing issues, such as rising local government debt, deflationary pressures, and real estate to record youth unemployment.

As a madly polarizing 2024 presidential election draws near, the US even faces significant obstacles. The US government’s estimated annualized loan interest payments have increased to the$ 1&nbsp, trillion level, among other things.

Shareholders are free to disregard the financial paths in Washington and Beijing that Moody’s, S&amp, P, and Fitch have to say. However, as payment prospects deteriorate, it is important to keep in mind that some observers, analysts, and investors are n’t buying the party line, despite Biden and Xi’s insistence that they are on top of their individual debt problems.

Following William Pesek on X, previously Twitter, at @WilliamPess

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‘Crazy rich’ Chinese making headaches for Singapore 

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SINGAPORE- &nbsp Deng Xiaoping, China’s past liberal elite who unlocked the once-closed country to the outside world, when famously remarked that “if you open the window for clean air, you have to expect some flies to blow in.”

It’s a proverb that holds true in Singapore as the city-state welcomes an increasing number of carefree, high-net-worth Chinese only to find that not all of their investment is tidy.

2023 was anticipated to be a time of economic growth for China. Instead, Asia’s largest economy has experienced its largest capital outflow in years, with rich Chinese nationals being pushed to Singapore as an immigration secure haven amid slow growth, a regulatory crackdown on private enterprise, and ever-expanding domestic societal controls. In addition, &nbsp,

Singapore, known as the” Switzerland of Asia” due to its political neutrality and accessible banking services, is feeling the inflow of Chinese currency very strongly. High-net for individuals from Hong Kong and mainland China are thought to have played a role in the city-state’s report capital inflows over the past two years.

In turn, this has led to skyrocketing real estate and rental costs, which earlier this year helped prices reach a 14-year great. Tales and pictures of” crazy rich” Chinese emigrants flaunting their money in difficult times have gone viral in the meantime, and many people in Singapore have been offended by the outward displays of wealth.

Eugene Tan, a political scientist and law professor at Singapore Management University ( SMU), told Asia Times,” It should not surprise us if Singaporeans are concerned and perceive their city-state is becoming an playground for the rich and feeling extremely priced out.” There is undoubtedly social pressure on the government to solve perceived injustice.

In fact, the political sensitivity of Chinese capital inflows has increased as a result of the arrest and charges of 10 Chinese nationals in August by local authorities, who have been accused of crimes ranging from money laundering to illegitimate playing and scamming.

Cash and other assets worth about S$ 2.8 billion ($ 2 billion ) have so far been frozen or seized in the case. Members of exclusive neighborhood golf clubs and contributors to neighborhood organizations who chose to immigrate and open new businesses in Singapore are among the accused.

One or more of those who are allegedly facing claims have connections to one family offices that the ultra-rich have established to manage their money and investments and that were originally given tax breaks by the central bank.

With minimal income tax rates, no taxes on capital gains or inheritances, strict financial privacy laws, and good incentives for multinational corporations to set up corporate headquarters, this little Southeast Asian country of 5.9 million has long offered banking and investment management services to wealthy people.

Investors can also become permanent residents, though the minimum investment requirement was significantly increased in March from a previous requirement of at least S$ 10 million ($ 7.4 million ) invested in the local business entity, fund, or family office. From 2020 to 2022, about 200 individuals received PR andnbsp through these investments.

In a nearby Straits Times report, rich mainland Chinese flaunt their tastes. Twitter Screengrab and Straits Times picture

Rich island Chinese looking for a way out are drawn to geography and culture as well. About 70 % of Singapore’s people is of Chinese descent, with Mandarin and other frequently spoken official languages being one of the city-states. Popular provincial Chinese cuisines have, have n’t, and also have multiplied as more mainland Chinese workers moved to Singapore.

The incident raises “legitimate concerns whether the emigration regime is weak for that lawlessness is being “imported” into Singapore,” according to SMU’s Tan, even though the government of Singapore has claimed that the current arrests demonstrate its self-proclaimed zero-tolerance for crime and authorities have started a review of anti-money laundering rules for individual family offices.

Social scientist Chong Ja Ian of the National University of Singapore ( NUS) claimed that the case of money laundering involving Chinese nationals “indicates the tension between the need for accountability and effective regulation on the one hand, and the desire to keep bank secrecy and ease of business to get wealth, respectively.” It is challenging to have your cake and eat it to, he continued.

A variable capital company (VCC ) scheme, similar to those well-known in offshore hubs like the Cayman Islands and Luxembourg, has been seized by investment management firms. It offers tax and legal protection for hedge funds, venture capital firms, and private equity firms among others. More than 1, 000 VCCs have been established, re-domited, or established in Singapore this time.

In fixed asset investment commitments for Singapore&nbsp, a record S$ 22.5 billion ($ 16.8 billion ) in 2022, nearly double last year’s S$ 1. 8 billion. According to the Monetary Authority of Singapore ( MAS ) and the central bank, &nbsp, with 76 % sourced from abroad and 88 % invested in overseas assets, the asset management industry oversaw and/or S$ 4.9 trillion ($ 3.6 trillion ) in 2022.

Additionally, there was a huge increase in the number of home offices and single-family offices overseeing the assets of the wealthy and occasionally well-known people last year. The number of individual family practices increased from really 400 in 2020 to 1, 100 in 2022, according to the MAS.

According to the Boston Consulting Group, Singapore now has more than 800 multi-family agencies than it did just 100 years ago.

According to NUS’ Chong, the increase in home offices raises concerns about Singapore’s potential benefits. According to him, family offices “tend to be gentle in terms of their personnel needs and frequently hire account managers abroad.” Furthermore, if money is being moved around a lot, portfolio investments typically do n’t have the same direct positive effects on the local economy as foreign direct investments.

Fund managers in Singapore have been cited by Bloomberg, &nbsp, Financial Times, and other global media outlets as saying that despite significant new money inflows, family offices have largely shied away from investing in capital markets, with accounts of rich newcomers rather lavishly purchasing condominiums and golf club memberships.

According to property consultancy OrangeTee &amp, Tie, andnbsp, which included nearly one-quarter of the 425 recorded “luxury” home purchases, defined by values of at least S$ 5 million ($ 3.7 million ), Mainland Chinese were the top foreign buyers and not the bottom of private property in Singapore in 2022.

Residential real estate prices in Singapore increased by 14 % last year, according to data from the Knight Frank Real Estate Consulting Group. &nbsp,

Authorities increased the property tax charges imposed on Singaporeans and permanent occupants who buy andnbsp, second- and third-year homes in April in an effort to calm the marketplace. The tax was set at an eyewatering 60 % for international buyers. According to reports, foreign buying andnbsp accounted for 7 % of all real estate transactions in the first quarter of this year, an increase from roughly 6 % from 2017 to 2019.

Singapore-housing-property-society, FOCUS, by Idayu SupartoThis photo taken on January 23, 2010 shows people playing basketball in front of the Pinnacle@Duxton, a made by government public housing apartment in Singapore. Eager shutterbugs lined their tripods across the fences overlooking a panoramic skyline of Singapore’s city centre as families and curious visitors milled around the 156-metre high rooftop garden. Tall turnstiles guard its entrances and visitors are required to pay an admission fee of five Singapore dollars to see the view. AFP PHOTO/ROSLAN RAHMAN / AFP PHOTO / ROSLAN RAHMAN
The cost of accommodation in Singapore is constantly rising. Roslan Rahman, AFP, and Asia Times Files

Since then, the demand from foreign buyers has decreased to about 4 % of all transactions so far in 2023. According to &nbsp, the MAS, which on November 27 stated that personal prices may continue to fall as a large number of innovative products are scheduled for completion, residential property prices have since moderated from an increase of 11.4 percent year over year in the first quarter of 2023 to 4.4 % by the fourth quarter.

The Financial Times reported in April that the MAS had indirectly directed andnbsp, bankers, and regulators to avoid talking about the cause of rising cash outflows. An unnamed executive&nbsp, who was quoted in the report, said,” We have n’t been explicitly told not to talk about China, but there is a sense that talking about it publicly will not be welcomed.”

The central bank has advised money managers against aggressively courting company from Hong Kong because the region has experienced heated political unrest in 2019 and has lost waves of international businesses and executives as a result of alleged extreme Covid-19 lockdowns. Singapore has worked to avoid the perception that it is taking advantage of China’s problems.

In relation to current arrests of Foreign nationals related to money laundering, Singaporean officials have more lengthy denied any pressure from Beijing.

There has been some rumor that this operation was carried out at China’s request, both domestically and internationally, in media sources. Regarding the August prosecutions, which included people wanted in China for fraud and illegitimate online gaming, Josephine Teo, Singapore’s following minister for household affairs, told parliament in early October.

According to SMU’s Tan, the idea that Singapore has acted in response to Chinese pressure “makes for eye-catching stories but fails to recognize Singapores ‘ acute awareness to its independence being trampled on.” While dealing with transboundary illegal activities is crucial, He&nbsp stated that” Singapore wo n’t be coerced or bullied into serving as a policeman for China.”

According to NUS Chong, if Singapore comes to be seen as a healthy destination and an outflow, that was “introduce problems” in Singapore-China ties. If Singapore keeps drawing in a lot of money and the PRC market finds itself in need of more money to spur growth or deal with its debt problems, he said, Singapore will have to take that risk.

Despite speak of sluggish consumer demand, China’s economy has not yet experienced the post-pandemic recovery that many had predicted. Instead, the growth of the second-largest economy in the world has sputtered, and a widening interest rate difference with the US has contributed to the renminbi’s 16-year low, making it one of Asian currencies that has performed the worst this year, falling by 6 %, measured andnbsp, against the U.S. money.

China has seen net capital outflows in 2023 for the first time in four years, according to Alicia Garcia Herrero, chief economist for Asia-Pacific at Natixis SA, pointing to negative foreign direct investment ( FDI) flows despite a sizable trade surplus. She continued by saying that fixed-income outflows and loss pressure on the renminbi have been exacerbated by the US Federal Reserve’s aggressive policy.

According to China’s data, international businesses operating there are not simply declining to spend their profits but are also, for the first time, massive online sellers of their existing investments in Chinese businesses and repatriating the funds. In the first three quarters of 2023, FDI&nbsp’s outflows exceeded$ 100 billion, and analysts predict that they will continue to do so as a result of trends, current & infrp.

In display slides reviewed by Asia Times, Herrero stated that” the recent tolerance of the Fed’s voice is helping to succumb amortization pressure and may also help plant off the capital outflows.” She continued by saying that a real estate problems, declining industrial income, and stagnant economic growth have all contributed to net capital outflows into China’s stock markets.

Chinese stocks have been among the worst performers in the world in 2023, with an annual loss&nbsp of 9 % for the MSCI China Index, following a 23.6 % decline for 2022 and 22.8 % for 20, despite initially optimistic expectations. Chinese shares traded in Hong Kong, Shanghai, Shenzhen, and New York have lost$ 955 billion in market capitalization this year, according to Bloomberg data.

Regarding concerns about Singapore’s growing unaffordability for visitors, Nydia Ngiow, a managing director at BowerGroup Asia, an consulting firm for policy advice, stated that” for sentiments did not stem from the new influx of Chinese citizens.” Singapore’s rapid economic growth over the past few decades has been fueled by policies that promote business and wealth, which ultimately led to an increase in inequality.

The rich should pay more, according to Singapore’s taxman. iStock / Getty Images pictures

Ngiow observed that despite Singapore’s efforts to court the powerful, government policies have recently undergone a “leftward shift.” Ngiow stated that “examples of these steps include increased taxes on large incomes and pleasure goods, such as luxury cars, and a proportionate increase in taxes based on the value of private property.”

This year, the city-state increased its tax rate from 220 % to a staggering 320 % on high-end vehicles with an open market value greater than S$ 80, 000 ($ 59, 560 ). Along with making improvements to extravagance property taxes, government increased the personal income tax rate for top-tier workers in 2022, focusing on the top 1.2 % of citizens.

While the migration of Chinese citizens to Singapore is undoubtedly a moving point for the nation because it highlights the number of ultra-wealthy people, Ngiow continued, noting that “deep financial assistance and large investment flows between the two nations go much deeper than disputes over some businessmen,” this is unlikely to significantly strain relations between China and Singapore.

Observe Nile Bowie @NileBowie on X, originally Online.

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Who is Tesla’s super-fast, bulletproof Cybertruck built for?

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Elon Musk, the CEO of Tesla and the owner of X, described the Tesla Cybertruck as a” vehicle of the future” when it was broadcast live on Twitter last Thursday.

The style is eye-catching. In addition to the strange shape and stainless steel finish, the product offerings are even unusual. The stainless steel panels and complete are evocative of the misfortunate DeLorean DMC- 12, which was a somewhat weak car with several problems despite being adored for its leading role in the Back to the Future franchise.

Delorean. Image: Track and Road

The Cybertruck stands out from the competition thanks to its angular shape, straight surfaces, and triangle-shaped roof line. The car is quite different from the typical Tesla lineup of vehicles, which have a more twisted and jelly-like look. This indicates that they have reduced pull to maximize their energy range and are very aerodynamic.

Unreliable product identification

Manufacturers of automobiles frequently use a layout speech that unmistakably identifies the brand across all of their vehicles. This might be indicated by a constant bumper design or by the form and shape of their vehicles. Consider the kidney-shaped gate on BMWs or Mazda’s” Kodo” design viewpoint, which aims to generate action even when the vehicle has stopped.

However, it appears that Tesla intended the Cybertruck to be completely different from any of its different products. There is n’t a distinct brand consistency, at least not internally.

Due to their different functions, pickups frequently appear distinct from vehicles produced by the same company, but even the Tesla Semi, a heavy goods car, retains the jelly-mold style and related aerodynamic advantages of the vehicles made by Tesla. The Cybertruck does n’t really fit in with the aesthetics of the current Tesla lineup.

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Although the Cybertruck wo n’t be produced in China as of yet, these observers believed they saw a potential hint in January.

What is the purpose of the Cybertruck if Tesla car designs have historically been focused on efficiency? The adage” Form follows work” is well known in style. The design speech in Tesla’s current portfolio unmistakably speaks to effectiveness and vitality.

But, Musk’s admission that the square shape had mostly been determined by the material choice—high-strength metal steel (understood to become 30x cold-rolled steel—was the more unexpected result of the Cybertruck delivery event launch on November 30. This decision appears to have limited the manufacturing process, leading to a flatter, geometric shape.

Why pick a material that is more challenging to type using conventional methods, one that compromises the aero efficiency and design language you use? The benefit of the delivery occasion is that this material has made it possible for Tesla to create a bulletproof truck, which the life stream went to great lengths to prove with the use of an undermachine gun.

Therefore, if form follows function, the requirement to be bulletproof is the primary factor in determining the Cybertruck’s style. For a client aircraft that faces the people, that’s an unexpected, special selling point. particularly in light of Musk’s “why no” statement? argument, which he then followed up with the somewhat unsettling statement:

The best disaster technology is available at Tesla, where it can happen at any time.

After armored testing, a Tesla Cybertruck was spotted driving down an open path. The image is @teslaownersSV/X.

The security of the Cybertruck

Although the Cybertruck is the subject of much of Tesla’s PR due to its solidity and safety, health issues prevent it from ever being sold in Europe, at least not in its release form. This is because there is a lack of walking protection.

Musk remarked,” If you have an explanation with another car, you will win,” while driving the vehicle at the start function. The Cybertruck appears to place a lot of emphasis on safeguarding its inhabitants while ignoring improvements in road safety that take into account prone road users like pedestrians, cyclists and motorcyclists as well as other vehicles.

6, 843 kg are contained in the Cybertruck. The majority of non-EV cabs weigh less than 3, 000 kg, and the typical vehicle weighs even less. Due to this higher size, any incidents with a lighter aircraft could be extremely dangerous.

The ultra-hard stainless metal structure of the front bumper and exterior, where the gate had typically remain, is likely to strike a pedestrian due to the high bonnet and bumper. When asked for opinion on the Cybertruck’s health, Tesla did not respond.

A common European vehicle, in contrast, is made to bend and digest the impact on the pedestrian’s head by allowing a pedestrian to drop onto the hood or cap. For increased pedestrian safety, car bodies are frequently made of lighter, less compact materials like metals.

Despite the fact that this style element prevents the Cybertruck from being sold in Europe, it can be in North America, specifically the United States, Canada, and Mexico. This is due to the fact that in these areas it is classified as a light-medium vehicle and is exempt from the laws governing pedestrian safety in passenger cars.

This is unfortunate because Tesla just made investments in pedestrian-focused technologies for its vehicles. For instance, the Model 3 has an active helmet and detection system that lifts to lessen a pedestrian’s front collision impact forces.

The Cybertruck’s appearance and health considerations have deviated from the previous Tesla values in terms of layout. This begs the question: Who is this truck for, besides the original first users, celebrities, and influencers?

Texas soldiers are shown in a painting killing Bonnie and Clyde’s final vehicle. Meisterdrucke image

It ca n’t possibly appeal to the same core group of current, environmentally conscious Tesla customers.

A tank that can reach 60 miles per hour in 2.6 minute and is bulletproof, go-anywhere, and do anything? In the bad hands, it can be quite a resource.

At Nottingham Trent University, Matthew Watkins teaches electrical engineering as the primary teacher.

Under a Creative Commons license, this essay has been republished from The Conversation. read the article in its entirety.

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China’s currency globalization may gain momentum in 2024

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The renminbi, or yuan, of China’s currency, experienced a remarkable increase in cross-border use in 2023, signaling an important departure from its previously sluggish worldwide payment share. &nbsp,

The dollar’s reveal in international payments has been hovering around 1.9 % since China started working to export its currency in 2004. &nbsp,

However, in a startling turn of events, this number shot up to 3.6 % by October of this year, and we predict that this trend will continue to pick up steam in 2024.

The changing political environment is one of the main factors driving the accelerated globalization of yuan. Geopolitical unrest has gotten worse in recent years, forcing nations and businesses to expand their coin investments and transactions. &nbsp,

China has constantly emphasized the significance of reducing rely on the US dollar and additional Group of Seven currencies in light of the increase of American sanctions against Russia following its invasion of Ukraine in 2022 and rising tensions with Taiwan. &nbsp,

These restrictions seem to have encouraged other nations to use the yen for commercial agreements. Without a doubt, China’s readiness with its own Cross-Border Interbank Payment System ( CIPS) for the start of Western sanctions against Russia has been crucial.

The Belt and Road Initiative ( BRI ) of China has been instrumental in promoting the cross-border use of the yuan. &nbsp,

An increasing number of countries are choosing to do business in Yuan as the BRI spreads across continents, promoting economic ties and facilitating infrastructure development. &nbsp,

We can assume that the yuan’s rising prominence on the international stage has been considerably aided by the Peoples Republics ‘ tactical investments in its partner nations as well as the simplicity with which it can be used for commerce within the Tribal model.

This is in addition to China’s dedication to business liberalization and economic reforms. Confidence in the yuan as a viable and stable currency for global deals has increased due to the region’s capital markets gradually opening up and work to loosen restrictions on cross-border investment moves. &nbsp,

The possibilities presented by the Chinese business are attracting investors and businesses more and more, which encourages the use of the yuan in international payments.

Additionally, there is the strategic approach to online currency innovation, which is contributing to the yuan’s increased cross-border use. &nbsp,

International attention has been drawn to the creation and testing of the digital yuan, the nation’s central-bank digital currency ( CBDC ). &nbsp,

The yuan, along with its modern rival, is well positioned to be at the frontline of this economic development, improving cross-border transactions and business settlements as more countries investigate the potential adoption of digital currencies.

This speed is likely to continue as we look forward to 2024 because of a confluence of factors that make the renminbi the market leader in the evolving world of international finance. &nbsp,

Recognizing the options presented by the growing impact of the yen in cross-border purchases, companies, investors, and countries around the world are adapting to this development.

The founder and CEO of deVere&nbsp, Group is Nigel Green. @nigeljgreen on Twitter, follow him.

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Kashmir’s famed apples face extreme weather and economic crisis

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Farmers in a market show fruits with scabAsif Umer
Written by AuqibJaveed
Kashmir’s City

Hundreds of amazon farmers in the Pulwama area of Kashmir, which is under American control, stored their produce in a makeshift tin shelter set up at the fruit market on an cloudy and hazy winter day in anticipation of the arrival of traders who would buy their produce.

The producers were concerned because this year’s fruit had not been of the highest quality, which would have an impact on the price they may receive.

In India, Kashmir is renowned for its apple selection. However, a number of obstacles, including the outbreak of fungus bruise, the effects of climate change, and numerous economic difficulties, have put the burgeoning industry in an unfavorable state of crisis.

Based on their size, color, and superior, grapes are divided into A, B, or C groups. While B and C are those with scab (venturia inaequalis ), with B being less infected than C, A is the premium category.

According to Pulwama orchardist Ghulam Nabi Mir,” Approximately 40 % of the amazon production this year has been C-grade.”

According to the Jammu and Kashmir horticulture department, apple, walnut, and orange farming directly and indirectly employ approximately 2.3 million people in the area.

Ejaz Ayoub, an independent Srinagar-based economist, told the BBC that exports from the Himalayan region’s orchards amount to over two million tonnes annually, generating roughly 120bn rupees ($ 1.44 a year, £1.14b ) in revenue, which is nearly twice as much as that of the tourism industry.

But the effects of strange climate patterns are starting to show.

According to Abdula Gaffar Qazi, 50,” Inclement rainfall in April- Does led to blister affecting the crop.” ” The rains washed it away even when some producers sprayed herbicides.”

According to Dr. Tariq Rasool More, a senior scholar at Sher-e-Kharish University of Agricultural Sciences, severe weather patterns affect the crop’s size, value, and amount.

Apples with scabs seen on a tree branch in Budgam

Asif Umer

Apple superior may drop to a B or C grade depending on whether blister affects the crop in the summer or the spring.

Farmer Ghulam Mohammad Bhat, 58, claims he has never seen such strange weather patterns in the area before. He is from the Chadoora region of Kashmir’s Budgam district.

He adds,” Storm in May damaged my crop,” adding that a protracted dry charm in August and September resulted in water scarcity and diminished apple color.

Five acres make up Mr.Bhat’s amazon garden, but more than half of the branches are scab-infected.

The speed of severe weather occurrences in the ethically delicate Kashmir Valley has increased over the past seven years, according to statistics from Jammu and Kashmir’s weather office.

According to the report, between 2010 and 2022, extreme weather events in Jammu and Kashmir claimed the lives of over 550 persons.

Kashmir experienced the hottest July in eight years on July 18, 2021, with a record temperature of 35C ( 95F ). The river had likewise recorded the coldest day in 30 years earlier that season, in January.

The area experienced dry weather from March to mid-April of this year, with temperatures about 12C above normal, according to Faizan Arif Keng, an impartial weather forecaster in Kashmir. This led to the first flowering of apple crops. However, the weather abruptly changed after that, and temperatures did n’t rise above normal until June.

This “false flower” harmed the crop, he claims.

Crop travel presents a significant challenge for farmers due to the extreme weather.

Harvest begins in the fall. However, due to floods on the perilous Srinagar-Jammu regional highway, the only route connecting the valley to the rest of the nation, it is still cut off from the outside world during the winter.

If floods block the bridge, it’s common to see hundreds of vehicles carrying apples stuck for times.

There has been an influx of Egyptian fruit in India’s fruit areas, according to Vijay Taira, vice chairman of the Kashmir Apple Merchants Association in the Azadpur fruit business in Delhi.

Growers claim that this has an impact on the price and industry communicate of Kashmiri apples.

According to Ahmad Bashir, president of the Kashmir Valley Fruit Growers Cum Dealer Union ( KVFG), a box of Kashmiri apples would have cost between 1,000 and 1,300 rupees in India’s fruit markets just two weeks ago. It is currently being sold for 800 pounds per field, which does not even cover production costs.

Farmers are also in anguish over the drop in prices, he claims, due to the American government’s decision to relinquish off a 20 % tax on fruit imported from the United States.

A fruit market in Pulwama

Asif Umer

KVFG wrote to Prime Minister Narendra Modi in November to ask for his help in resolving the crisis.

The gardening division of the region claims that these problems can only be fixed at the national level.

According to Manzoor Ahmad Mir, the department’s deputy director,” we have brought up these issues with the state.” ” On it, only they can get a call.”

Kashmiri apple producers are also concerned that the government is not putting a stop to dealers selling fake or inferior pesticides.

The blister in our vineyards would be less if the pesticides were of high quality, according to Mr. Singh.

Solid action has been taken against accused dealers, according to Shafiqa Khalid, a deputy director at the state’s gardening department, and criminal charges have been brought against them.

According to her, issues arise when producers disregard recommendations for the timing of chemical spray.

According to economist Mr. Ayoub, the” consumption that drives the local business” is directly impacted when apple producers do n’t earn a good living.

According to him,” The cash flows in the market and reaches many people associated with various types of trade.” People from all walks of life will therefore be impacted if the income stops.

Currently, BBC News India is available on YouTube. To listen and view our documentaries, explanations, and features, click here.

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False prophet of new age protectionism misleading India

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The two presumptions that the plan is being implemented in a very different setting than in the past and that various devices are being deployed are the basis for expectations that trade substitute in India may be successful this time around. &nbsp,

However, each of the nation’s prior import substitution shows failed because they varied from one another along these dimensions.

One could accept their argument if import substitution industrialization proponents base their success solely on their ability to create and maintain the intended industry. The market offers significant room for trade substitute, with goods exports at 21 % of GDP in 2022 as opposed to less than 5 % in 1970. &nbsp,

Numerous products are imported in large quantities, which indicates that there is local need for them. By preventing their imports, regional suppliers of those same items or comparable substitutes will be able to emerge.

However, this level of success may be comparable to India’s earlier attempts at buy substitution, which it pursued for a number of decades after gaining its independence. India properly established many sectors during that time, including steel, copper, fertilizer, substances, and automobiles, behind a defensive wall.

The domestic supply answer is probably going to be quicker this time around because there are no purchase licensing requirements, less stringent labor and capital markets, no limitations on large-scale creation, more freedom for foreign investors to enter, and no restrictions on tech imports. &nbsp,

Because there is less of a distinction between import prices and domestic production costs, the security loss brought on by the import taxes is also reduced.

But, the true success of import substitution may be determined by its capacity to speed up the expansion of the whole economy, not by how well it can establish and maintain guarded industries. Along this parameter, the trade substitute argument falls apart. &nbsp,

India is increasing the number of iPhone council processes. Photo: Online

The opposite is true for exposed products, which frequently cost more to produce domestically than worldwide. Protection encourages tools to walk into and out of higher-cost products in order to support them.

The idea that import replacements can be successfully pursued alongside export promotion to increase GDP is a common mistake among policymakers. That overlooks the fact that supporting a small number of business means discouraging others when there is merely ONE set amount of resources available at any given time.

An analysis of the full import and export series for any nation over a ten-year period or long shows that when import substitution effectively reduces overall imports, complete exports also decrease.

Import taxes on inputs are one way that import taxes hurt exports and the ultimate import of alternative goods. Whether the inputs are exported or sold internally, these duties lower the profitability of the final products using them. &nbsp,

Real exchange price appreciation is a more widespread way that tariffs hurt imports. The supplier receives fewer Indian pounds for every US currency’s value of exports as a result of currency appreciation.

The success of an advocate buy substitution industrialization policy has been further undermined by two new developments that are mutually reinforcing. &nbsp,

Second, the cost of moving products and information over long distance has significantly decreased thanks to advancements in communication and transportation technologies. &nbsp,

Next, present technology has produced sophisticated mass-consumption products like smartphones and tablets with extensive style and information-related content. Additionally, it has made it possible to more effectively divide up the production of both new and old materials.

Due to these advancements, it is now possible to achieve productivity by locating product development, product design, component production, and assembly across numerous countries, depending on their cost advantages. &nbsp,

The phone is a good example; its innovation, design, manufacture, and assembly of various components are dispersed across twenty-two nations. Modernization that emphasizes buy substitution discourages industrialization by putting barriers in the way of this global specialization.

It is important to avoid mistaking India’s economic prospects for despair when expressing skepticism about trade substitution industrialization. India has been making the right decisions in almost all other areas, despite reverting to a moderate form of ISI. &nbsp,

Through expanding economic reforms, it has also been removing barriers from the product and factor markets. It has been rapidly expanding its infrastructure, concentrating on roads, railways and waterways as well as ports, ports and digital platforms.

In their” China Plus One” strategy, the central government and a few state governments have also been courting multinational corporations to become the” Plus One.” Despite the achievement of import substitution industrialization, these services understand how crucial it is to interact with global markets. &nbsp,

By involving like-minded nations in free trade agreements (FTAs ), India can increase its appeal to multinational corporations as the” Plus One” destination.

India has opened the India-Middle East-Europe Economic Corridor to its north. The assumption of FTAs with the EU and the UK can significantly increase its impact. Perhaps more crucial is India’s relationship with its eastern allies. &nbsp,

Joining the Regional Comprehensive Economic Partnership (RCEP ) would have been the best way to achieve this, in my opinion. However, this has lost social traction in the wake of the recent uprising over the border with China. &nbsp,

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the other significant FTA of the area, should be joined by ASEAN as the next best course of action. India runs the risk of ceding control of the area to China absent these actions.

The imports of some products have been reduced as a result of the American coverage regime, which includes transfer substitution, but no import and exports overall. &nbsp,

At the Jawaharlal Nehru Port Trust facilities in Mumbai, a contractor oversees box stacking. Asia Times Files / AFP image

Full goods exports have remained strong, increasing from a pre-Covid- 19 peak of US$ 518 billion in 2018 to$ 721 billion by 2022. Exports of goods increased from$ 337 billion in 2018 to$ 456 billion by 2022. Exports of services have performed also better.

If history is any indication, ten years from now, proponents of buy substitution may assert that India’s accomplishment was a result of its pursuit of it, in defiance of opposing advice from free trade ideologues. &nbsp,

After all, the story that industrial policy played a role in South Korea, Taiwan, China, and Singapore’s success is still pervasive. However, this assertion is untrue. India may succeed despite import replacements, not as a result of it.

At Columbia University, Arvind Panagariya holds the positions of Jagdish Bhagwati Professor of Indian Political Economy and Economics.

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