China targets EU pork in tit-for-tat trade spat – Asia Times

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After the union announced the addition of new taxes on Chinese energy cars, China has launched an anti-dumping investigation into meat imports from the European Union. &nbsp,

The research could ultimately lead to an increase in China’s levies on EU meat products, hitting Spain, the Netherlands, Denmark, Germany and France.

Already, China charges a 12 % tax on the EU’s beef imports. According to some analysts, many European exporters will experience the heat of the trade war if the levy is increased to 20 %. They claimed that meat manufacturers in the EU may not be able to make up for their loss in China, yet if they look into new markets like Vietnam and the Philippines.

China’s Ministry of Commerce said Monday that its research will focus on meat imported from the Union for human use, including fresh, dried, smoked, preserved, warm and freezing whole cuts, as well as animal intestines, stomach and vessels. It said the sensor will start immediately.

The China Animal Husbandry Association filed a complaint on June 6 on behalf of the home meat industry in China, according to the report.

It advised those whose alleged dumping actions should get in touch with the Ministry of Commerce’s Trade Remedy and Investigation Bureau to start the research. They were told to give their thoughts to the ministry within 20 days of Monday. &nbsp,

In 2023, China consumed a complete of 57.94 million tons of meat and pork by-products, compared to just 1.55 million lots imported.

About half of China’s meat exports came from Europe. From 2014 to 2020, China’s meat goods continued to grow. After the number peaked at 4.39 million plenty in 2020, it has declined steadily. It fell to 1.55 million lots next month. &nbsp,

Cailianpress.com, a Chinese economic news site, said meat imported from the EU only accounted for a small portion of China’s full meat usage, so a decline in source from the region will not have a big impact on pork prices in China. It said, on the contrary, many pig farms in the EU will suffer as they wo n’t be able to find new buyers for their pig internal organs, trotters, tails and ears, which are not generally used in European dishes. &nbsp,

In Chinese food, animal intestines, stomach and vessels often go into “dim amount” to be consumed in a pho. Ginger and vinegar are used to cook pork knuckles. Pig lungs, tails and ears are for making soups. &nbsp,

Chronology of retaliation

The Chinese government may launch an anti-dumping investigation into EU-sourced pork imports on May 26 according to the state-owned Global Times. Wang Wentao, the head of Chinese commerce, traveled to Spain on June 1st and claimed that the EU’s anti-subvention investigations into Chinese EVs and other products were carried out using fabricated pretexts like Chinese overcapacity and unfair competition.

However, Beijing’s warnings failed to stop the EU from imposing a 17.4- 38.1 % tariff on Chinese EVs on June 12.

Last year, Spain exported about 560, 000 tons of pork products worth 1.2 billion euros ( US$ 1.29 billion ) to China, according to Interporc, the country’s pork producers ‘ association. &nbsp,

Spain has called for trade talks since China launched an investigation into the EU’s pork imports. Luis Planas, the minister of agriculture in Spain, expressed his hope that negotiations will allow for the removal of tariffs on agricultural and food products. &nbsp,

Apart from Spain two other countries, the Netherlands and Denmark, will also be hit by China’s latest anti- dumping probe as they exported to China pork products worth US$ 620 million and US$ 550 million, respectively, in 2023.

The European Commission’s spokesperson stated that the EU is not concerned about China’s anti-dumping investigation and will act decisively to make sure that the investigation adheres to World Trade Organization regulations.

China’s pork supply

China’s pork prices have been declining since September 2020, according to an article in the Economic Daily that published earlier this year, with the exception of a slight increase between April and November 2022. &nbsp,

According to Li Pengcheng, an analyst at the Ministry of Agriculture and Rural Affairs, many pig farms were losing money as a result of the sector’s protracted downturn. &nbsp,

The decline in pork prices also suppressed China’s consumer price index, which increased only 0.2 % year- on- year in 2023, compared with the average 2 % growth in 2016- 2019.

Since April this year, China’s pork prices have regained growth momentum. On Monday, Sichuan Online, a state- owned news website, said many pig farmers in Sichuan province turned profits this month, meaning that the pork industry may have entered an up cycle. &nbsp,

Some commentators predicted that Beijing will have more bargaining chips in a trade negotiation with the bloc because of the rising pork demand in China, which is attractive to the EU. They added that if China needed more pork products, it might also think about bringing them from Brazil and Russia. &nbsp,

Read: China to retaliate if Europe raises EV tariffs&nbsp,

Read: Chinese EV firms can absorb EU tariffs: expert

Follow Jeff Pao on X: &nbsp, @jeffpao3

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PM plans more regional cooperation at trade meet

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Srettha Thavisin, the government’s spokesman Chai Wacharonke, stated yesterday that the prime minister has pledged to strengthen cooperation under the Asean-Australia-New Zealand Free Trade Agreement ( AANZFTA ), maintain existing markets, and find new economic partners.

The Commerce Ministry and the Department of Trade Negotiations (DTN) made the announcement after representatives from the 22nd Asean- Australia- New Zealand Free Trade Agreement Joint Committee ( FJC) Meeting held in Auckland, New Zealand, on May 26 and 31 attended the meeting.

Mr Srettha is promoting economic relations with foreign nations, seeking new funding options, and maintaining existing business relationships, he said.

Under the foundation of new financial ties, the premier said he is willing to advance Thailand’s AANZFTA cooperation in order to stay current with the changing global environment.

Thailand even pledged to support the launch of this year’s expanded AANZFTA.

The most recent completely business deals have facilitated trade restraints and tax relief. Additionally, they are anticipated to boost domestic financial cohesion while boosting financial assistance.

Additionally, discussions arose about advancing initiatives to strengthen local collaboration, increase the functions of people in businesses, and update the taxes reduction obligations that were highlighted in the agreements.

” Mr Srettha sees AANZFTA as a wonderful opportunity to lift the country’s global trading quantities”, he added.

According to the DTN, from January to April, Australia and New Zealand were ranked as Thailand’s sixth and 31st biggest trading partners both.

During that period, Thailand’s trade with Australia and New Zealand came to US$ 7.1 billion, up 0.74 % from the same period last year.

Thailand’s exports to Australia were for US$ 4.1 billion baht, an increase of 22 %. The major exports were cars, auto parts and accessories, air conditioning, and laptops and computer parts.

The government’s exports to New Zealand during the time were valued at US$ 529 million, up 17 %. Related items were most frequently exported to Thailand, similar to those to Australia.

However, Saudi Arabia has given the natural light to the transfer of life cattle, sheep and goats from Thailand, according to the business secretary.

According to Commerce Minister Phumtham Wechayachai, the Saudi Arabian Ministry of Environment, Water, and Agriculture received the approval through the Thai and Saudi Arabian international departments.

He claimed that the live wildlife may be imported from Thailand and therefore kept and slaughtered in Saudi Arabia.

Importers and exporters you apply for business authorizations at the Ministry of Environment, Water, and Agriculture’s Naama Platform.

Mr. Phumtham claimed that prior to the Saudi Arabian Food and Drug Authority’s ( SAFDA ) approval, Thai chicken exporters could export fresh, finished, and cooked chicken to Saudi Arabia through all checkpoints.

Last year business worth between Thailand and Saudi Arabia amounted to US$ 8.79 billion, including imports from Saudi Arabia fair$ 6.13 billion.

For the first four months of this year, it was$ 2.59 billion, down by 17 % year- on- year, including 66 billion baht worth of imports from Saudi Arabia, down by 28 %. Thai exports to Saudi Arabia were estimated at$ 926 million, up 12 %.

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New minister lays out foreign policy

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Solving Myanmar fight a major concern

New minister lays out foreign policy
Maris: Focus on common harmony

Maris Sangiampongsa, the newly appointed Minister of Foreign Affairs, has emphasised Thailand’s responsibility in ensuring peaceful speech to help resolve the issue in Myanmar.

The&nbsp, government held” Meet the Press# 1″ on Friday to describe his plan. At the meeting, Mr Maris shared his perception of Thailand’s international policy under the topic of” Burn Thailand, Re- light Thai Diplomacy”.

He cited the importance of maintaining a great relationship with neighbors because it will contribute to improving Thailand’s security, citing the Myanmar issue, which has had an impact on Thailand’s border security.

” Our foreign policy toward neighboring nations should concentrate on common harmony, which may encourage a concerted effort to achieve common goals,” he continued.

He claimed that the Thailand-Myanmar frontier has been affected by the conflict there, and that Thailand would like to see tranquility there restored because it will improve border security and lessen the impact of the conflict.

” We need to give Myanmar a lot of priority in the protection sector. Also, we want to be a key person in making certain a peace speech happens to solve the problem in Myanmar properly.

Additionally, we will continue to push for humanitarian aid in this area, but it needs to be accepted by all parties. We want to see the conflict cease, and this is where we are most concerned. However, we have to keep in mind that this problem is fragile and needs to be worked on quietly, “he added.

In addition, Thailand also needs to function with Myanmar on the reduction of unlawful companies, call center schemes and drug smuggling.

Furthermore, he said Thailand did also rely on an initiative called” Six Countries, One Destination”, to deliver neighbouring states to work together on tourism.

In order to promote tourism and promote creativity, Thailand can use its soft power plan to build integration and imagination in its efforts with neighboring nations, which may help maintain peace and foster trust.

He said Laos, for example, is considered to be the power of Asia, thus Thailand may work with Laos on alternative solutions such as wind energy, solar power and electricity.

He claimed that Malaysia is a key player in the ongoing insurgency in southern Thailand and along the Thailand-Malaysia border.

He claimed that working with Malaysia on the southern special economic zone will help bring the two countries closer together and advance both economies in addition to having a direct dialogue.

Thailand will soon open the Royal Thai Consulate General in Siem Reap and support collaboration on systematic logistic management.

The minister hopes to gain back trust in Thailand by engaging with international communities through a business-led model.

Thailand “has been off the radar of the world for a long time as a result of our internal political conflicts, and it needs to regain the trust of international organizations.”

” We have lost many opportunities, wasted time and the country’s true potential.

” Therefore, we need to restore Thailand’s image and make sure Thailand has a key role in international communities at both the regional and global levels, and it can be done through trade and investment, “he said.

He also emphasized the significance of the Free Trade Agreement (FTA ), particularly with emerging markets in Latin America, Africa, and the Middle East.

” These countries have strong economic potential. I’ll make an effort to travel to those emerging economies and lay the groundwork for Prime Minister Srettha Thavisin’s negotiations when he travels there.

” Besides, we also have’ Friends from Thailand’, where we are going to push Thais to have more of a role in people- people diplomacy”, he added.

He stated that the key areas that will be the main priorities for regaining trust from the international community are trade, investment, and business.

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The Ghost of Richelieu laments the humbling of France – Asia Times

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Full beneath the drains of Paris, the lamp I brought from Temu had eluded a few levels above the subterranean museum where I made my way to the underground ossuary of the Carthusian priests.

I clenched my telephone between my teeth while its light guided me along the niter-covered walls while holding a large of Chateau Margaux in one palm and a large copper trashcan in the other.

I stumbled with twisted languor until I felt the sticky dirt of the ossuary surface as the destroyed marble steps of the staircase began to sway under my feet. The long-dead Carthusians ‘ stacked heads grinned at me.

When suddenly, I kept tryst with the Spirit of Cardinal Richelieu, winner of the Thirty Years War and designer of France’s 200- time supremacy on the European continent.

I waited until what seemed like an eternity before the next finger on my see suddenly appeared at night and spittoon into the olfactory ooze below. I poured the Margaux into the spittoon, drank, and patiently waited.

The wine was sucked into the windows as the French dying escaped. I identified Marshal Ney and General Weygand, the defeated captain of the Battle of France, as eyes on him as they commanded the back watch during the Grand Armee’s disastrous retreat from Moscow.

I waved them aside until a gloomy haze appeared on the surface. It injected a spectral beak into the constricting opening, absorbed the Bordeaux, and therefore extracted its scalp with an audible roll before popping its head out.

” I warn you”, said the Spirit in his Maurice Chevalier voice. ” I am in a nasty feelings”.

” Eminence”, I ventured, “what will become of France? It seems uninhabitable. Less than 15 % of the votes cast for the European Parliament were cast by President Macron’s gathering next Sunday, and half of the votes were cast by the Rassemblement National. The polls put his party at only 19 % in next month’s snap elections for parliament. What will become of Macron’s promise to send European troops to Ukraine”?

” C’est plus qu’un violence, c’est une faut”, hissed the red Spirit. ” It’s more than a murder. It’s a wrongdoing, as I used to say”.

” Begging your pardon, Eminence, you did n’t say that. It was Introductory”.

” Eh bien”? Richelieu sneered. ” I did n’t have to say it, because I did n’t make that kind of blunder. Not every strategy I devised was successful but I was n’t stupid enough to fight Russia, like Talleyrand’s expert Napoleon. The Russians will just have more chance for target practice with a few thousand Legionaries and a dozen redundant Mirage fighters. It is a small movement made by a small person.

” But why is Ukraine but essential to Macron, Eminence? Why chance his reputation by “playing a poor hand”?

” Irrelevant”! thundered the Cardinal. ” France has become unimportant! It will become a distributor of expensive clutches for China’s new wealthy and a destination for Taiwanese tourists! Although its greatness has vanished, the aristocracy of France also harbors the self-importance of the past.

” But why meaningless”? I pressed.

The “elite of France” is aware that when Ukraine is unable to battle, they may find themselves in a world where their services are no longer needed. No one sector of the economy excels in France. It has less than half the level of business technology found in China, Japan, or Germany.

It exports a fifth of the German auto industry’s sales and produces poor cars. &nbsp, It may engage with the Chinese. Germany will swiggle to the west as the Eurasian landmass tilts toward China, leaving France as the priestly tail of a receding European Community.

” Eminence, I am profoundly confused. What does the giving of French troops to Ukraine have to do with this?

” You are as thick as often, Spengler. Do I have to spell it out for you? Germany may repurchase Russian oil once more and open the door to China, just as the Hungarians have done, if Ukraine is humiliated. It will take advantage of China’s great initiative to create a global South, automakers will continue to integrate with their Taiwanese counterparts, German investors will be able to buy from its factories in China, and Mittelstand will export its goods to markets prepared by Taiwanese infrastructure.

” Eminence, Macron said that a Soviet success in Ukraine ‘ may reduce Europe’s trust to zero,'” I offered.

No simply: It would render France’s credibility a zero, and one could say the same for Italy, but it has no trustworthiness at all. Charles DeGaulle was nevertheless persuaded two generations ago that the French had fill the gap between the Americans and the Soviets.

Macron now wants to ostensibly maintain the National attempt, so he at least has a seat at the table. In reality, Macron tried to resolve between Russia and Ukraine until the very last moment, hoping that the Minsk II sacrifice may stop the Ukraine conflict, like the Germans. But now he’s tied to it and terrified by the thought of being humiliated by the United States.

” Eminence”, I asked, “is that why the French voted against him”?

They chose Macron because his trust has already been eroded, according to the statement! thundered the Cardinal. ” The French do n’t want to fight in Ukraine. They may win a battle whose failure may be humiliating. In Ukraine, they lack the people and the tools to change things. It is an empty, helpless, foolish gesture. Macron is the film version of Napoleon, if Napoleon I was horror and Napoleon III was folly. The French may accept fraud, conscience, arrogance and perhaps fight but they cannot stomach Canard Donald as their leader”.

” You were the most brutal leader France always had, Eminence: Is there any chief who might raise France out of its lethargy”?

” Hélas”, sighed the ghost. ” The issue, it is the French themselves. They do not want to have kids but they do not like refugees, either. They do not need China to overshadow their business, but they also do not want to work. They oppose Russian bullying, but they also oppose fighting.

I made the claim that” The Rassemblement National of Marine le Pen is a patriotic group.”

The Cardinal responded,” Le Pen appeals to their sloth rather than the fading grandeur of the Flemish.” Her most common suggestion is to lower the retirement age, which would cause the French Treasury to fail.

” What will become of France, Eminence”?

” The same thing that has become of me: It will be a spirit of its original self”, the Cardinal sighed, as his shiny purple robes turned lustrous. Some of the bone stacks against the wall assembled themselves into remains, formed a circle and began to sing,” Dansons la carmagnole”!

The now-fading Spirit of Richelieu dismissed the corpses with a curt movement after a few rounds, and they were then threw into piles of vertebrae that twitched in the ossuary floor’s primordial seep. ” Get away”! I cried – I do not know why –” Boogie the Carmagnole”!

However, by this point, the chamber was spinning around me. A low Rabelais and an empty container of Cognac greeted me as I awoke.

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IPEF making economic gains above the naysaying critics – Asia Times

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SINGAPORE – The results of the last week’s Indo-Pacific Economic Framework ( IPEF ) meetings in Singapore heightened the potential and need for even greater private sector support.

Many people questioned the IPEF’s worth from the beginning because its ambition falls short of the Trans-Pacific Partnership ( TPP )’s previous US foray into Asia-Pacific trade leadership.

But the project’s rely on supply chain resilience, green market investments and tackling obstacles to doing business in the region is proving the Biden administration’s brilliance while reaffirming US leadership in local financial, investment and integration issues.

That was seen in next week’s filing of the Clean Economy and Fair Economy Agreements, which demonstrated the project’s partners continue to take the necessary steps for approval, acceptance and endorsement of IPEF agreements.

During the Singapore meeting, the US Department of Commerce’s Office of the Secretary announced six press releases, including notable new achievements in the areas of the IPEF Agreement Relating to Supply Chain Resilience ( Pillar II ), the IPEF Agreement Relating to a Clean Economy ( Pillar III ), and the IPEF Agreement Relating to a Fair Economy ( Pillar IV ), as well as the overarching Agreement on IPEF.

( The IPEF brings together Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam and US. )

However, critics point out that IPEF fails to address the US’s obvious inability to handle local trade barriers and to create opportunities that conventional free trade agreements do not. They note IPEF does not identical TPP when it comes to business reform. However, the past year demonstrated how serious IPEF is about finding new ways to take the result.

Two weeks prior to the meetings, Dr. Deborah Elms, the renowned head of trade policy at the Hinrich Foundation, testified before the US Congress that” IPEF is a bad supplement” for what the different 13 members of the platform really desire: a US return to traditional free trade agreements.

She cited in particular the region’s desire for the US to sign up for the CPTPP, the Indo-Pacific’s successor to the TPP, which has provisions for market access, stronger labor and environmental provisions, and consistency of regulations in a range of sectors.

Others shared a similar assessment. A Politico article stated that” Doubts follow Raimondo on a trip to sign more IPEF deals” prior to US Secretary of Commerce Gina Raimondo’s visit to Singapore, where she signed the two agreements and led a delegation of investors to the IPEF Clean Economy Investor Forum.

” ]W] ithin the business community, a big question hangs over the deals: will they make any difference”?, the article asks. Many in the private sector believed they would not, according to the report.

Realistically, a return to TPP is unlikely and wo n’t occur as a result of Donald Trump’s potential White House entry and the Democratic Party’s hard line on free trade. Trump, who resigned from TPP after his third day in office, has pledged to do the same for IPEF.

” Under the next administration … the Biden plan for’ TPP Two’ will be dead on day one”, Trump said at a recent campaign event in Iowa. It’s worse than the first one, threatening to pulverize farmers and manufacturers with yet another massive globalist monstrosity designed to boost outsourcing to Asia.

IPEF, of course, does no such thing, especially with the initiative’s relevant trade provisions now seemingly on indefinite hold. The division of IPEF into four pillars, with only one focusing on trade, turns out to be a useful feature rather than a bug.

The IPEF’s Investor Forum on Clean Economy, which is unique, demonstrates how engagement can occur when tangible outcomes are possible. &nbsp,

The Singapore forum identified US$ 23 billion in terms of potential investment in accelerating the transition to green energy by establishing mechanisms for cooperation and enabling governments, developers, and investors to meet and address priorities in ways that are not otherwise known. Private equity firms KKR and GIP co- chaired the initiative, with global investors BlackRock, GIC, Rockefeller Foundation and Singapore’s Temasek all part of the coalition.

To catalyze investment to advance the energy transition, regulatory frameworks must be established. The IPEF partners continued their progress on a range of climate solutions through the cooperative work program ( CWP ) mechanism, which focuses on hydrogen, carbon markets, clean electricity, emissions intensity accounting, e- waste and small modular nuclear reactors.

Momentum is also building around the Indo- Pacific Partnership for Progress ( IP3 ), a collaboration of public, private, and non- profit leaders dedicated to mobilizing capital and expertise to advance economic growth, sustainability, and inclusivity. &nbsp,

A US return to traditional free trade agreements would, as the Hinrich Foundation’s Elms noted, “bind the US to partners in the Indo- Pacific”. And as Bilahari Kausikan and I noted in our post about the US-Singapore FTA’s 20th anniversary, creating the most powerful geopolitical latticework for the US requires more than just a crisscross of strips representing diplomacy, defense, and development, but also trade.

FTAs that are properly executed will enhance that effort. The US must continue to be a regional leader that collaborates with numerous partners in whatever political contexts are acceptable. And for now, the IPEF remains the only game in town, as I wrote for Asia Times in November.

Singapore demonstrated the IPEF’s commitment to advance US interests in the area. The next step in advancing that success is to increase business and investor engagement, which are by design essential to IPEF.

Steven R. Okun serves as the senior adviser to Singapore-based geostrategic consulting firm McLarty Associates. He is the CEO of APAC Advisors.

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CNA launches in North America as part of international expansion

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The launch event was moderated and held by CNA donors and correspondents, and it will be promoted in the capital city this year.

In addition to Walk The Line, CNA offers content for people in North America:

  • Daily updates from the Eastern region on the Asia Tonight program and a comprehensive analysis of developments in the Eastern Peninsula, Japan, and Greater China on the East Asia Now program.
  • Insight is a well-known analytical film that examines political, social, and financial issues that affect Asia and the rest of the world.
  • The Great Migration: A New Eden – A initiative showcasing a year- much trip with a team of specialists moving 3, 500 birds into Asia’s largest animal park in Singapore. World Media Festivals awarded the program the silver medal.
  • Preparing For Hazardous Storms: Inside the People’s Liberation Army – A three- part line on the country’s largest army taking measures to ensure technology, energy, and food self- sufficiency in China. The film won the World Media Festivals ‘ metal award for best documentary in the field of global issues.

CNA’S INTERNATIONAL EXPANSION

CNA was established in March 1999 by Singapore’s nationwide media community Mediacorp. The information channel has journalists in 15 major cities across Asia, and is supported by 23 ministries in North America, Europe, and Africa.

Mediacorp, during CNA’s 25th anniversary celebration in March, announced plans to level up rise and reach new audiences in regional and international markets.

According to president Niam Chiang Meng, studies have revealed there is a sizable market in the US, Canada, and the UK who is interested in watching movies about Asia, particularly China, Japan, and Korea.” We are making intentional advances in these areas,” he said.

By providing real stories and firsthand accounts from the Asian region, CNA, according to Mediacorp, will help expand viewers ‘ knowledge of Asia, filling a critical difference in the North American market.

This includes in- level coverage of the country’s social landscape, business developments, lifestyle trends as well as people- interest features which reflect the diversity of Asia.

Earlier this year, CNA launched its FAST channel in the UK with six hours of programming repeated throughout the day with news updates, in- depth current affairs content, and documentaries.

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European debt now a better bet than US Treasuries – Asia Times

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As relationship expert Bill Gross sparkles a bright spotlight on a rapidly evolving threat to US Treasury securities, the November election, Janet Yellen the n’t become happy.

The former Pacific Investment Management Co ( PIMCO ) chief investment officer has mentioned European debt as a ready substitute for securities that were sold by US Treasury Secretary Yellen’s team in recent interviews.

” As we move to November, and everything becomes more clear as to who may or who might not win, the doubt plus the potential legislation implications may affect Treasuries significantly”, Gross told Bloomberg.

Gross’s apparent move to Europe comes even after the electoral debacles in Berlin and Paris. Emmanuel Macron and Olaf Scholz faced opposition in the European Parliament elections on June 9.

As President Macron called a snap election in a bid to consolidate power, French bond yields reached their highest level since November. German and Italian bond prices plunged, too, as traders assessed the fiscal policy implications of the elections.

Gross notes, political surprises coming from the continent, and other significant events in India, Mexico, and South Africa that put many bond investors at risk due to market reactions. Could the US election pitting Democrats for Republicans against President Joe Biden be the next market snob?

” What we’ve seen the last few weeks is a reaction to uncertainty, in terms of not only the party that’s dominating, but uncertainty as to what their policies will be”, Gross explains.

As such, Gross adds,” there’s coming a point where European bonds are more attractive than Treasury bonds, in my opinion. In terms of attraction, the spreads for German and French 10-year bonds have decreased significantly over the past month or two in relation to Treasuries and today as well.

This is how US electioneering may cast a serious shadow over the attractiveness of the dollar, the linchpin of global finance and trade, written between the lines in bold font. And the difficult task Team Yellen must complete in order to stop the US government’s debt from rising worldwide.

Adding to Yellen’s challenges, a US national debt approaching US$ 35 trillion just as Washington politics become increasingly toxic.

A US debt run might be in the offing. Photo: Wikimedia Commons

Extreme polarization is already imperiling Washington’s credit rating. Last August, when Fitch Ratings yanked away America’s AAA&nbsp, credit score, it cited the polarization behind the January 6, 2021 insurrection among the reasons.

Additionally, Fitch cited political conflict involving raising the statutory debt ceiling and funding the US government as risk factors for the credit rating of Washington. Such clashes might worry Asia less if not for the fact Washington’s debt is&nbsp, twice the size&nbsp, of China’s annual GDP and more than eight times Japan’s.

Combined, Tokyo and Beijing hold about$ 2 trillion of US government debt. That vast pool of savings could be at risk if Moody’s Investors Service revokes Washington’s last remaining AAA rating. Surging US yields would affect global markets in unanticipated ways.

America’s sharp mercantilist pivot since 2017 is another worry for Asia’s export- reliant economies. Then, President Trump imposed severe tariffs on global steel and aluminum as well as Chinese goods.

When Biden arrived, he left Trump’s trade war in place— and added new layers of China- targeted curbs, most targeting China’s access to semiconductors, chip- making equipment and other vital, cutting- edge technologies.

Now, Trump’s plan to slap 60 % taxes on all Chinese goods is catalyzing something of a tariff arms race, one that’s drawing retaliation threats from Xi Jinping’s government. The EU followed this week with 38 % of its own tariffs after Beijing just imposed a 100 % tax on China-made electric vehicles.

Never mind that “policies are more likely to hurt than help the lower- and middle-income Americans they purport to benefit,” asserts economist Kimberly Clausing of the Peterson Institute for International Economics, a think tank based in Washington.

Stock markets everywhere could be in harm’s way as trade war risks increase and uncertainty surrounds growth prospects. According to Gross, the US’s “equity market is valued at historically high levels if looking at current 21-times ‘ price to earnings ratios” are considered. If GDP slows, he notes, there could be” a problem in terms of valuation at the moment for many stocks”.

That goes, too, for Europe’s economic prospects as the region’s biggest economy, Germany, fends off recession risks. With a narrower electoral mandate, Chancellor Scholz ‘ Social Democrats and its progressive coalition partners are now free to stimulate growth.

Macron is smarting in France now that he lost to Marine Le Pen’s nationalist far-right party in parliamentary elections. The surprise snap election he announced overlaps with Macron’s hosting of the Paris Summer Olympics. Macron’s instinct to fight contrasts with Belgium’s Alexander De Croo, who resigned instead.

Macron urges French citizens to cast ballots the same way they did this weekend for the European Parliament, which has long been seen as a protest vote, according to Mujtaba Rahman, an analyst at Eurasia Group.

Macron “believes he can defy the polls by having to choose between the pro-EU, pro-Ukrainian, and centrist status quo” and the existential risk of a far-right government,” he said.

It’s quite a gamble on France’s future. Polls, Rahman says, suggest Macron’s centrist coalition will fail to win a majority, and if Le Pen’s National Rally picks up the most seats.”

That means” France will be in uncharted waters,” Rahman explains”. Le Pen has stated that she will partially withhold EU funding, impose stricter immigration laws, violate the EU single market by putting French business before French aid, and impose restrictions on aid to Ukraine.

Italy’s Giorgia Meloni had a much better week, continuing her pivot from far- right to mainstream. Along with a solid election showing, Meloni’s government will host the Group of Seven ( G7 ) in the days ahead.

Centrist European Commission President Ursula von der Leyen also appears to have reclaimed the far-right trend and been given another five-year term. She will likely be forced to make concessions to immigration and environmental policies to advance the agenda.

Ursula von der Leyen, the EC president, has been hawkish about China trade issues. Photo: Asia Times Files / AFP / Dursun Aydemir / Anadolu Agency

What all of this means for EU fiscal dynamics is a ripe subject. Another wildcard is the outlook for US rates. The core consumer price index dropped to its lowest level in more than three years in May.

Despite May’s lower CPI, the US Federal Reserve’s guidance seems” roughly unchanged,” says economist Dominique Dwor- Frecaut at advisory Macro Hive”. Cuts continue to be the best case scenario until the Fed has increased its confidence in the disinflationary outlook.

Will Denyer, economist at Gavekal Dragonomics, adds that” even though they had this softer inflation data in hand, Fed policymakers still pared back their rate cut expectations for the year.”

The global implications are uncertain. The belief that the Fed is” committed to its 2 % inflation target” in the foreign exchange market implies that any increase in US inflation has a tendency to cause the dollar to rise while slower inflation causes the US currency to contract, according to Denyer.

As a result, May’s softer CPI release saw the dollar ease against most currencies. However, it’s still unclear whether this focus will continue to be the main force behind the world’s exchange markets in the coming days and weeks.

Denyer contends that worries about the outcome of the French parliamentary election could devalue the euro. A potential drop in the Bank of Japan’s asset purchases could increase the yen. The main story is, however, May’s moderate US inflation and what it implies for US policy and global markets.

Not the whole story, though, as election- year shenanigans heat up in the US. Global markets will continue to be tense as Biden and Trump battle it out in the polls. &nbsp,

According to Kelvin Wong, an analyst at OANDA, the 10-year yield spread premium between US Treasury notes and Japanese government bonds has reduced Japanese insurance companies ‘ ability to invest in fixed-income securities, which may result in higher odds that the long-term JGB yields will likely trend higher.

According to Wang,” These potential upcoming fixed income portfolio adjustments from Japanese insurance companies may provide some support to halt the major yen’s weakness against the US dollar.”

However, as Gross points out, European debt will soon be popular with global investors as Yellen’s team struggles to maintain demand for a US Treasury debt market that appears to be in decline.

” Relative to the US, we see support for European bonds due to smaller fiscal deficits,” says Ann- Katrin Petersen, investment strategist at the BlackRock Investment Institute.

Follow William Pesek on X at @WilliamPesek

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Pet market raids coming after blaze

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PUBLISHED: 14 Jun 2024 at 05: 56

Pet market raids coming after blaze
More than 5, 000 animals are killed in a blaze at a dog industry in Bangkok’s Chatuchak district on Tuesday, according to the incident. Following Tuesday’s blaze in Chatuchak, the Bangkok Metropolitan Administration ( BMA ) will raid unauthorised pet markets throughout the city to stop similar incidents from occurring again. ( Photo: Pornprom Satrabhaya )

Following Tuesday’s blaze at a pet market in the Chatuchak district, which left more than 5, 000 animals dead, the Bangkok Metropolitan Administration ( BMA ) will raid unlicensed pet stores throughout the city to stop similar incidents from occurring again.

In response to the fire at Sri Somrat Market, Governor Chadchart Sittipunt and BMA members held a joint press event with an animal shelter organization system on Wednesday.

According to Mr Chadchart, the market, located on land owned by the State Railway of Thailand ( SRT ) behind the JJ Mall shopping centre, caught fire at 4.08am and was extinguished at 4.37am.

At least 5, 300 species, including numerous exotic species, which were kept in 118 animal stores in an region covering 1, 400 square feet, were reported to have died.

Sri Somrat Market has been operating a pet economy for at least 20 years. The industry’s running permission was renewed four years ago, Mr Chadchart said.

In response to the drama, Mr. Chadchart promised to look into the businesses and practices of different pet markets, including Chatuchak 2 Market in Min Buri and Sanam Luang 2 Industry in Thawi Wattana.

Mr. Chadchart stated that the investigation will be conducted following a rigorous” checklist” to help standardize pet profits and minimize problems with business partners.

Every pet shop must now have two permits, one from the BMA and the other from the Department of Livestock Development ( DoDL), according to the governor’s announcement.

The permits include a license to operate a health-hazardous business under the Public Health Act, BE 2535 ( 1992 ), and an authorization to sell animals and carcasses under the Animal Epidemics Act, BE 2558 ( 2015 ) and the Cruelty Prevention and Welfare of Animals Act, BE 2557 ( 2014 ).

According to Mr. Chadchart, the BMA began really just issuing pet shops operating licenses for health-risk businesses because there were some constitutional ambiguities in the rules.

After clarifying the problem with the Department of Health in December, Mr Chadchart said that all petconomy firms, including fields, pet stores, and animal cafes, are required to qualify for the permission.

By July 15th, Bangkok city offices must submit an evaluation of their checks.

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Chinese EV firms can absorb EU tariffs: expert – Asia Times

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According to a former general counsel of the Office of the United States Trade Representative ( USTR ), the new tariffs imposed on Chinese electric vehicles ( EVs ) wo n’t have a significant impact on imports from China.

According to Greta Peisch, a companion in the Wiley International Trade Practice, Chinese automakers are able to capture the EU’s weak tariffs and maintain successful margins in Europe in an interview with Asia Times.

Greta Peisch, a companion at Wiley and former Office of the United States Trade Representative general counsel, is shown in this picture. laws

In China, Chinese firms are selling their Vehicles for less money than in Europe. And when you compare the two different sticker costs, it appears that there is a lot of room for Taiwanese businesses to take that tariff, she said. &nbsp,

They may still be able to offer their EVs in Europe with the same income margin that they would be able to make in China, she said, even if the price is likely set at 38 %.

She claimed that China’s market has a capacity-building slump that it can no longer capture, leading to the price decline of EVs in China. She said, for instance, that BYD sold an EV type in China for about US$ 12, 000.

In April 2023, BYD priced its Seagull subcompact EV, the company’s cheapest unit, at US$ 11, 400 in China. The concept, powered by a 55 watt electrical motor and a 30 kilowatt per minute battery pack, you move 305- 405 kilometers per charge. The battery allows the EV to charge up to 80 % in 30 minutes. &nbsp,

Last month, BYD offered its Seagull EV Honor Edition at US$ 9, 700 in China. According to media reports, the business planned to sell the model for about 20 000 euros ( US$ 21.47 ) in Europe. Similar European EV models are priced at around 25, 000 to 30, 000 euros. &nbsp,

In fact, the EU on Wednesday only imposed a 17.4 % tariff on BYD’s EVs. The Hong Kong- listed BYD shares rose 5.82 % to HK$ 232.8 ( US$ 29.8 ). The Hang Seng Index, the benchmark for Hong Kong stock market, only rose by 0.97 % to 18, 112. &nbsp,

Germany’s opposition&nbsp,

The European Commission set up a 13-month investigation last October to find out whether government subsidies have helped Chinese EV manufacturers increase market share in Europe in recent years. Nine months after the investigation begins, it has the authority to impose provisional anti-subsidies. &nbsp,

The EC announced on Wednesday that it has “provisionally concluded” that if discussions with Chinese EV manufacturers fail to produce a successful solution, they will be subject to tariffs starting on July 4.

EV makers who participated in the investigation will typically be subject to a 21 % duty, as per the EC’s decision, while those who did not will be subject to a 38 % duty.

Specific charges will apply to BYD ( 17.4 % ), Geely ( 20 % ) and SAIC ( 38.1 % ). These costs would be added to the 10 % tariff currently in place on all imported vehicles into the EU. This results in tariffs of up to 48.1 % for Chinese EV manufacturers.

Non-Chinese automakers that produce some EVs in China will also be affected. Tesla may be given an “individually calculated duty rate” due to a particular request it made, though.

According to reports in the media, Germany made a final push to the EC to keep the EV tariffs as low as possible on Tuesday to stop China from retaliating. &nbsp,

After the EC’s Wednesday announcement, German Transport Minister Volker Wissing posted on X that” the EU Commission’s punitive tariffs affect German companies and their top products” .&nbsp,

German businesses expressed concern that the EU tariffs will have an impact on the country’s stark export-oriented economy.

Peisch, whose key responsibilities at USTR included coordinating with European partners on tariff action to address Chinese overcapacity, said it’s a significant challenge that Germany and its businesses oppose the EU’s new tariffs on Chinese EVs. &nbsp,

” Many German businesses have invested heavily in China. And it’s understandable that they are concerned about the EU’s tariffs and what they might mean for their Chinese markets, she said. They” simply assume that China will engage in retaliatory behavior,” they say.

” But in my opinion, Germany and those companies are a little short-sighted because I believe China wants to dethrone those European sellers in its own market,” she continued. There are still a lot of money to be made in China by these German producers in the near future. But will they still be greeted there in a while?

Before China begins replacing German businesses with local players, she advised German businesses to make long-term plans for their development. &nbsp,

Due to uncertainty over how China might respond to the EU’s new tariffs, European auto stocks fell on Wednesday and Thursday. &nbsp,

China’s responses

Beijing vowed to take the necessary steps on Thursday in response to the EU’s decision to impose new tariffs on Chinese electric vehicles.

The China-based government will pay close attention to the European side’s progress and will resolutely take all necessary steps to resolutely defend the legitimate rights and interests of Chinese companies, according to the government’s official statement on Thursday. &nbsp,

Lin Jian, a spokesperson for China’s foreign ministry, described the EU’s anti-subvention investigation as a typical example of protectionism that disregarded the facts and World Trade Organization regulations. &nbsp,

We urge the EU to take into account the rational and objective viewpoints of various stakeholders, correct its mistaken choice at once, stop politicizing trade, properly address economic and trade frictions through dialogue and consultation, and prevent harming China and the EU’s mutual trust, dialogue, and cooperation, Lin said.

According to Sun Xiaohong, secretary-general of the automotive branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, China has a lot of countermeasures against the EC’s most recent action, which does not adhere to WTO principles. &nbsp,

He said the EU’s move is unreasonable and not good for trade development. He claimed that Tesla’s temporary exemption from the temporary tariffs demonstrated that only Chinese businesses are targeted by the EU tariffs. &nbsp,

He added, however, that China is still willing to engage in negotiations with the EU to prevent a full-fledged trade war.

Peisch said it’s unclear what allegations and arguments China might have if it sued the WTO for the EU’s tariff action.

” Just saying’ protectionism’ does not make it inconsistent with the WTO rules”, she said. They would need to determine how the EU had broken those rules specifically. And from the face of it, I do n’t know what that would be”.

Read: China to retaliate if Europe raises EV tariffs

Follow Jeff Pao on X: &nbsp, @jeffpao3

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