As Trump goes full Indian socialist, countries need to coordinate – Asia Times

By:
On:
In: Asia

Your technique has been revealed, Italy. You have been “looting, pillaging, and plundering” your transatlantic alliance for generations, all for your own gain. Not thinking that America leads the world on almost every aspect except justice while your business has scarcely grown for 20 years. You deserve to be punished in Donald Trump’s story economics.

How should all Europeans then respond to the alleged economic war declaration made by our ally and, equally important, to the very personal decision by the world’s largest economy to adopt an economic strategy that was last used by India’s post-colonial communist government in the 1950s in a large nation.

The concept is to replace local production for imports by imposing high trade barriers, as in communist India. This concept remained impoverished for four years in India.

It will now make Americans poorer and raise the cost of producing both domestically and abroad, easing the competitive pressures that had originally caused the US to be so active.

The difference between 1950s India and America is that the size and importance of the US economy mean that the rest of the world may also experience significant changes.

Giorgia Meloni told the&nbsp, Financial Times&nbsp, on March 28th that it was” childish” and” superficial” to think that Italy might have to choose between the United States and Europe. This was the first interview she gave to a foreign publication since entering Palazzo Chigi two and a half years ago.

Trump may have to reevaluate her own strategy now that she has acted in a wildly childish and superficial way by imposing his 20 % tax on US imports of European and other European products.

Trump’s tax statement included many islands inhabited only by penguins, and there was much that was immoral about it. He claimed to have consulted a prominent businessman, Lee Iacocca, the former CEO of Chrysler, the company that is now a part of Stellantis, about his plans, but as Iacocca passed away in 2019, that discussion had had taken place sometime ago.

However, we shouldn’t let these oddities detract from his actions. Trump has demonstrated that America can no longer get trusted as an alliance or companion, not to mention the direct financial impact of this tax strategy.

For long-standing safety allies like Japan and Europe’s NATO members, this is surprising. But it is particularly painful for poorer nations like Vietnam and others in Asia who had a proper economic and security mate that would prevent them from becoming reliant on China.

The transfer taxes he has imposed may increase trade barriers in America to their highest levels since the 1940s. Based on the bilateral balance in goods trade between the US and each country, the formula used to calculate the 20 % tariff on goods from the EU, 24 % on goods from Japan, and 46 % on goods from Vietnam is an unscientific invention. Does the fact that Italy is prospering by plundering the earth mean that it had a merchandise trade deficit of €55 billion in 2024? If so, some Italians have noticed.

However, the formula even asserts that the value added tax in the EU apparently represents an unfair business barrier. Due to the fact that VAT applies to all goods and services sold, whether they are internally produced or imported, it cannot be considered a business stumbling block, let alone an unjust one. Truth does not matter in Trump’s earth. &nbsp,

[ For Bloomberg subscribers, I strongly advise my former coworker Clive Crook ‘s excellent riposte  that if Trump and his advisers really believe that VAT will lead to unfair trade benefits, they should introduce one in the US and use the proceeds to lower income and corporate taxes, rather than tariffs. ]

Additionally, this promotion completely disregards the services industry, which accounts for a third of all trade. The fastest-growing component of global business has been the growth of digital solutions, a sector that America dominates.

Trump ought to beg Elon Musk, Jeff Bezos of Amazon, or Mark Zuckerberg of Meta to discuss how they have grown to be the richest men in the world. They might also point out that digital services are one of the most likely targets for a solid retaliatory reaction.

Not just Meloni, but many Western leaders have responded by criticizing Trump’s monetary strategy and enjoining people to avoid further aggravation by retaliation. The Wall Street tycoon Scott Bessent, the Treasury Secretary of the United States, must realize that the biggest tax increase since 1968 is an act of monetary self-harm, and that countries should deal to reduce these tariffs rather than risk putting them even higher.

This strategy has a disadvantage because it forces you to enter the negotiations in a poor position if you don’t fight. The key to the answer will be to show your power and utilize without promoting Trump’s own power by increasing his threat of 200 % tariffs on European beer, as he did last month. He is at his strongest when, like with any drunk, he can split his foes and sling worry into the weakest.

The most crucial step should be to coordinate trade and cooperation with unity within those alliances. The truly juvenile response would be for specific Western leaders to then travel to Washington to seek concessions, in Meloni’s words.

The best way to advance national interests will be to come to terms with allies first within the European Union, then between the EU and other blocs, on a common strategy.

While it’s impossible to anticipate a world in harmony, whether it’s through the United Nations, the World Trade Organization, or any other organization that previous American presidents worked so hard to create, it should be possible for the EU to work with Japan, for instance, and for Japan to work with Southeast Asian and Oceania, which it successfully incorporated into the Trans-Pacific Partnership free trade bloc during Trump’s first term.

Trump has been discussing his protectionist philosophy for 40 years, even though he will never associate it with Jawaharlal Nehru, India’s first post-colonial leader. No one should be surprised that he is putting this foolish philosophy into practice now that he feels powerful.

The best way to demonstrate that he is not as powerful as he thinks he is is is to criticize US goods and services while maintaining open markets for each other’s goods and services.

Continue Reading

Taiwan wise to China’s many broken promises – Asia Times

By:
On:
In: Asia

Making strategic promises, which the Chinese Communist Party (CCP ) has consistently demonstrated, are later undermined or abandoned once leverage has been gained.

Beijing’s strategy has consistently prioritized political and corporate gain over long-term trustworthiness, from the dismantling of Hong Kong’s autonomy to destroyed trade and market-opening commitments made when it joined the World Trade Organization.

These are structural aspects of how the CCP handles diplomacy: agreements are convenience tools, never binding commitments. This behaviour has created distrust among allies and political organizations, especially those that have paid the price for assuming the CCP’s promises will keep.

The CCP promised Tibet independence in 1951. The Dalai Lama was forced to flee to exile within ten years, and a harsh social destruction campaign took shape. Tempels were destroyed, spoken language was abhorred, and spiritual appearance was prohibited.

Over a million Rohingya have been detained in re-education camps in Xinjiang, which was once hailed as a unit for racial harmony. Surveillance systems encircles the area, transforming daily existence into a futuristic routine.

First assurances of liberty were replaced in both cases by measures of surveillance, destruction, and forced integration.

Hong Kong is the most recent and eminently shocking deception. ” One Country, Two Systems” was guaranteed until 2047 by the Sino-British Joint Declaration of 1997. However, China imposed the National Security Law by 2020, properly robbing Hong Kong of its independence.

Dissention was criminalized, opposition accents were imprisoned, and civil rights were ended. Students activists were exiled or imprisoned, and pro-democracy papers were immediately shut down.

The training is clear: Beijing’s offer of freedom is only a temporary illusion. And then, Taiwan, which is self-governing, has no reason to believe that a negotiated freedom structure would treat it differently.

Trade swindles, maritime deceits, and political feces

The CCP’s deviousness goes way beyond geographical claims. China has relied on international agreements as stepping stones to power, certainly as systems for transparency, on the international stage.

China pledged rules-based trade and market openness when it joined the World Trade Organization ( WTO ) in 2001. However, it consistently abused gaps, including forcing foreign investors to pay for technology transfers, subsidizing state-owned businesses, and engaging in intellectual property theft.

American industries that were engaged in engagement now face weakened supply chains and proper dependence. The idea that political reform would result from economic reform erred devastatingly stupid.

President Xi Jinping vowed to stop militarizing the South China Sea in 2015 when he stood in the White House’s Rose Garden. Beijing installed military installations on artificial islands within weeks, and it quickly set up weapon defenses and detector towers there.

In what were previously global waters, Chinese naval patrols continue to harass foreign vessels. These military areas are now threatening the freedom of navigation on one of the busiest trade routes in the world, causing conflicts in Southeast Asia.

China’s Belt and Road Initiative ( BRI), which is touted as a means of shared prosperity, has instead trapped several developing nations in debt.

Projects are intended to improve Beijing’s financial and technological techniques, from Sri Lanka’s Hambantota interface to African digital system. What starts out as a relationship is subordinated to.

Taiwan, a target of much greater strategic significance, is only anticipate duplicity if global forces and institutions have been deceived.

Taiwan’s Strategic Weight

Taiwan actively envisions a potential built on freedom, resilience, and innovation rather than just resisting Chinese coercion.

Taiwan has asymmetrical protection strategies in an effort to counteract China’s numerical advantage physically. Investments in precision-strike missiles, AI-powered early warning systems, and computer security capabilities demonstrate a shift from responsive protection to corporate deterrence.

Every new technology added to Taiwan’s army sends the message that the cost of an invasion may get severe. Also, Taiwan regularly conducts joint military exercises with its partners to confirm punishment trust and operational readiness.

Taiwan has risen to the top of the world without receiving official reputation. It has established de facto embassies in key capitals, held parliamentary delegations, and strengthened ties with political allies.

Despite Beijing’s opposition, its latest entry into international forums demonstrates growing global will to help its sovereignty. One example of expanding bilateral support that bypasses conventional political considerations is the US and Taiwan’s 2021 International Cooperation and Training Framework ( GCTF).

Taiwan’s status as a key global player is strengthening financially. Its dominance in semiconductor production, led by TSMC, gives it a clout that few other countries can overlook.

Taiwan has also diversified its business with countries other than China while strengthening ties with Southeast Asia, Europe, and North America. New free trade agreements and expense systems have helped to strongly bind Taiwan’s business to the supply chain network of the political world. Economic independence is a weapon against coercion, not just a plan objective.

Most brilliantly, Taiwan is reversing CCP propaganda with democratic innovation. It has created digital systems for voter wedding, fact-checking, and quick response to online impact campaigns.

The political tech model, which is led by electric minister Audrey Tang, serves as a global example of how openness and electronic literacy can protect against authoritarian manipulation. Taiwan is demonstrating that available societies can be more efficient and resilient than finished systems by doing so.

Civil society organizations, reporters, and think tank play a significant role in preventing autocratic narratives at the local level. While universities conduct studies on disinformation and digital defense, Japanese media regularly exposes pro-CCP impact operations.

This whole-of-society endurance unit is what distinguishes Taiwan as a truly proactive and optimistic democracy.

International plea for quality

The evidence is overwhelming. The CCP uses weapons to sabotage claims, but it does not recognize them. It defies conventions, rewrites story, and conceals diplomacy’s expansion. This design is confirmed by Tibet, Xinjiang, Hong Kong, the WTO, and the South China Sea.

The international community must dispel the myth that Beijing’s behavior can be tempered by wedding only. The CCP’s thoughts are techniques rather than agreements. Taiwan, on the other hand, has shown itself to be a companion with a commitment to transparency, shared values, and international role.

Involvement is found in disregarding story. If Taiwan experiences the same death as others who trusted Beijing, the universe cannot claim ignorance. A united political base, strong monetary partnerships, and improved regional deterrence are now the best ways to go about this.

The CCP has long since lost faith, but it is earned. It is not a given. Taiwan has won the respect of the rest of the world thanks to its honesty, tenacity, and creativity. Supporting Taiwan is more of a proper necessity than a moral imperative to maintain the harmony of harmony and democracy in Asia.

Tang Meng Kit is a graduate of Nanyang Technological University (NTU), Singapore’s S. Rajaratnam School of International Studies ( RSIS), and has completed the MSc in International Relations program. His research areas include jet technology, Japanese politics and policy issues, and cross-Strait relations. He is now employed as an aerospace expert.

Continue Reading

China’s Belt and Road crediblity collapsing fast in Thailand – Asia Times

By:
On:
In: Asia

BANGKOK – China’s Belt and Road Initiative projects are being scrutinized in Thailand after Myanmar’s 7.7 earthquake pancaked a 30-floor building 966 kilometers ( 600 miles ) away that Chinese engineers were constructing in Bangkok.

The incomplete building was the only creating to decline in the gently damaged Thai capital. But the crisis exposed reportedly poor metal reinforcing rods that had snapped, reducing the tower to a large dust pile that crushed about 87 construction workers, including 15 confirmed dead and 72 who disappeared.

” I watched many videos of the tower decline from various points”, a startled Thai Prime Minister Paetongtarn Shinawatra said.

” From my experience in the construction business, I have never seen an problem like this.

” We must research carefully because a significant portion of the funds was allocated, and the date for execution had been extended,” Paetongtarn said.

The analysis began with a crazy, disturbing look. Two weeks after the March 28 collapse, four Chinese people were filmed grabbing in their hands as some construction-related files as they could have and running away from the wreckage site.

Police detained, questioned and released them. China’s military in Bangkok and Thailand’s effective interior ministry, which oversees the police, met to discuss the skyscraper’s decline, but their deals were not made public.

China’s picture is critical for Beijing’s exclusive standing among Thais.

Washington and Beijing have been formally competing with each other for decades to control Bangkok’s politics, politics, economy and martial through financial support, investment, tourism, education, ancestorial ties and different ways.

In the collapsed skyscraper’s debris, investigators extracted two different types of steel reinforcing bars, also known as rebars, which were supposed to provide support for the building while encased in cement pillars.

After the earthquake, the Iron and Steel Institute of Thailand reportedly discovered the chemical composition, mass, and stress strength of the rebars appeared to fail its tests.

Photographs displayed by the industry ministry and local media showed a word embossed on a steel rebar dug out of the wreckage.

That brand name was allegedly linked to a Chinese steel-making company in Thailand, the Bangkok Post reported April 2.

Concern about China’s role in the unfinished skyscraper’s deadly collapse comes at a time when some Thais have expressed anxiety about Beijing’s increasing reach into the kingdom.

The earthquake also hit Thailand’s troubled economy, sophisticated tourism industry, multi-billion-dollar high-rise condominium and construction market, insurance rates and other sectors.

This Southeast Asian nation faces an estimated loss of more than$ 1 billion because of the quake, economists said.

At least 30 high-rise buildings in Bangkok were deemed uninhabitable because of the earthquake, the Public Works Department said on April 2.

” We will focus on communicating a single message, ensuring that Thailand is safe for travel,” Tourism and Sports Minister Sorawong Thienthong said.

Thailand’s government institutions for inspecting building contracts, design plans and materials used in construction, and its anti-corruption policies, are being criticized by the public and Thai media for having been unable or unwilling to correct the doomed skyscraper’s flaws before the earthquake.

Many Thais noted, with grim irony, that the only building to collapse in Bangkok was the State Audit Office’s ( SAO ) new headquarters. That government agency is tasked with preventing fudged contracts and dodgy government-linked projects.

” The Facebook page of the State Audit Office is no longer accessible on Wednesday ( April 2 ) after it came under heavy criticism and was accused of corruption related to the collapsed building with over 70 construction workers still unaccounted for, “reported Khaosod English news.

The construction contract was a joint project between the Chinese government’s China Railway No. 10 Engineering Group and the Thailand-based Italian-Thai Development ( ITD ) public company.

ITD was founded in 1958 by an Italian and a Thai who met while salvaging a ship stuck on Thailand’s Chao Phraya River.

Its website says ITD is” the largest infrastructure construction company in Thailand, and one of the largest in Southeast Asia.

“ITD has expanded internationally to numerous regions, including India, Bangladesh, Cambodia, Laos, Indonesia, Maldives, Myanmar, the Philippines, Madagascar etc”, it says.

Among its many projects in Thailand is the 2006 construction of a passenger terminal at Bangkok’s Suvarnabhumi International Airport.

China Railway No. 10 Engineering Group, meanwhile, is part of China Railway Engineering Corp ( CREC ), one of the biggest engineering and construction firms in the world.

” All concerned agencies were instructed to delve deeper to find out how many other projects the company has undertaken”, Prime Minister Paetongtarn said April 1.

” All buildings in Bangkok must meet legal standards. Safety must be the top priority”, she said.

In Thailand, CREC and Railway No. 10 are driving China’s proudly showcased Belt and Road Initiative ( BRI ). The BRI is an international development and financial expansion strategy boosted by Beijing’s investments and loans.

CREC’s projects for the BRI include China’s impressive Beijing-Shanghai and Qinghai-Tibet railways and, in East Africa, the Mombasa-Nairobi railway across Kenya.

CREC is an enterprise owned by the Communist Chinese government and has completed and worked on other projects in Thailand.

These include laying tracks on a link in what will eventually become a high-speed railway connecting Beijing and Singapore via Bangkok by train for the first time.

CREC helped construct one of Bangkok’s underground metro lines and was bidding for others.

The Commerce Ministry, Royal Thai Police Economic Crime Suppression Division and Revenue Department, meanwhile, reportedly opened investigations into a dozen other projects in Thailand allegedly linked to CREC and China Railway No. 10.

Before the quake, CREC proudly heralded the Bangkok SAO skyscraper construction contract as the” first high-rise building for the bureau overseas”.

Philip J Cunningham, a researcher of Asian politics in media, said CREC’s website, after the earthquake, deleted photos, quotes and other pages related to the SAO building, including CREC’s earlier announcement:

” In response to the national Initiative of the Belt and Road, China Railway 10th Bureau set up an Asia-Pacific branch, taking entry into the Thai market as the first step to fully open up new Southeast Asian markets!

” The National Audit Office of Thailand…is the highest height and largest single-building construction project undertaken by the 10th Bureau so far,” a deleted quote said according to Cunningham.

China Railway No. 10 was also constructing a behind-schedule$ 20 million airport terminal at Narathiwat in southernmost Thailand, local media reported.

At a hospital under construction for outpatients and accidents in the southern city of Songkhla, the hospital director told reporters”, The quality of construction materials is under strict control and the building was designed to withstand earthquakes.”

Investigators, meanwhile, are checking if any other Chinese nationals used fake contracts to hide their collaboration with other Thai construction firms.

Richard S. Ehrlich is a Bangkok-based American foreign correspondent reporting from Asia since 1978, and winner of Columbia University’s Foreign Correspondents ‘ Award. Excerpts from his two new nonfiction books”, Rituals. Killers. Wars. &amp, Sex. — Tibet, India, Nepal, Laos, Vietnam, Afghanistan, Sri Lanka &amp, New York “and” Apocalyptic Tribes, Smugglers &amp, Freaks “are available here.

Continue Reading

No, Tariff Man, that’s not what a trade deficit means – Asia Times

By:
On:
In: Asia

On April 2, United States President Donald Trump unveiled a sweeping new “reciprocal tariff” regime he says will level the playing field in global trade – by treating other countries the way ( he claims ) they treat the US.

First, Trump’s strategy may impose a “baseline” 10 % tax on almost all products imported into the US, effective April 5. Therefore, from April 9, 57 states will experience higher “reciprocal taxes”.

These vary by state, according to a method based on individual business imbalances.

On face value, the new tax plan may sound like a easy answer for fairness. If a certain nation was taxing American imports with a 50 % price, it might seem good for the US to tax their goods at 50 % as well.

But appearances are deceiving.

These innovative “reciprocal” taxes apparently aim to eliminate the US trade deficit by making exports more expensive so that Americans buy less from abroad until goods similar exports.

But the Trump administration hasn’t instantly matched certain unusual taxes. Instead, they’ve opted for a simplistic method based on bilateral trade imbalances between the US and each particular state. Those aren’t the same items.

Trade imbalances aren’t taxes

A nation has a business gap when the full price of everything it imports from somewhere else exceeds the value of what it exports it. A business deficit is the same.

Trade imbalances and surplus – the balance of trade – may be calculated between certain countries, but also between one state and the rest of the world.

Taxes are unique things entirely – income a land charges on imports when they cross the border, paid by the buyer.

Trump’s fresh mutual taxes have been calculated by taking the US trade deficit with each nation, dividing it by full US exports from that country, therefore halving the resulting amount and converting it into a portion.

For example, in 2024, the US imported approximately US$ 605.8 billion from the European Union, but exported only$ 370.2 billion, resulting in a trade deficit of$ 235.6 billion.

Dividing the deficit by total imports from the EU gives a ratio of 39 %. The White House interpreted this figure as the EU’s trade “advantage” and subsequently imposed a “discounted” 20 % tariff on EU products – roughly half of 39 %.

This same calculation led to a 34 % tariff on China, 26 % on India, 24 % on Japan and 25 % on South Korea. More export-dependent developing countries, including many in Southeast Asia, face some eye-wateringly high reciprocal tariffs.

Trade experts swiftly criticised the methodology behind the tariffs. James Surowiecki, a financial journalist, labelled it “extraordinary nonsense”.

While the use of economic formulas in the corresponding US Trade Representative document might give it an appearance of being grounded in economic theory, it is detached from the rigours of trade economics.

The formula assumes every trade deficit is a result of other countries ‘ unfair trade practices, but that is simply not the case. To see why, we need to understand why Trump’s obsession with trade deficits is wrong.

A government isn’t a household

Why does Trump detest trade deficits? He appears to think of the national balance of trade like a business or household’s finances.

Under Trump’s logic, if more money is leaving the “account” than coming in, that’s bad business. A$ 200 million trade deficit would mean the US is “losing” – with money and jobs being siphoned away.

Trump argues other countries have been taking advantage of America by running up big trade surpluses and “hollowing out” US industry. He has long argued that America’s massive deficits indicate unfair trade deals, foreign protectionism, and even a threat to national security.

Few economists share Trump’s view

The trade gap is not money simply being drained overseas by allegedly rapacious foreigners. Rather, it represents the exchange of value.

American consumer behaviour is a significant driver of the US trade deficit. As a consumption powerhouse, the United States sees its residents and businesses spending vast sums on imported products ranging from iPhones and TVs to clothing and toys.

Many of these are actually produced by US companies but made overseas. Moreover, those US companies license foreign factories to produce these goods, and the intellectual property revenues earned make up a huge US surplus in services trade.

But services trade does not feature in the formula. This shows the singular obsession with tangible things, or goods trade. Yet, in most supply chains, it is the services components that yield the most value.

Back on the goods side, when the US economy is robust and people have disposable income, imports naturally increase. Ultimately, while trade deficits indicate economic dynamics, they are not inherently negative nor do they signify economic weakness.

Rather, they often reflect a nation’s economic structure and consumer preference for diverse global products. After all, Australia has run trade deficits for decades, including with the US, and is one of the wealthiest countries in the world.

Four King Penguins walking in the snow
The uninhabited Heard and McDonald Islands, home to a large population of penguins, were hit with tariffs in this week’s announcement. Image: VW Pics/Getty via The Conversation

The real reason for the deficit

The formula used to calculate the reciprocal tariffs is highly misleading. Responsible policy makers would take account of many other factors in their calculations.

Among other variables, the US Trade Representative formula fails to consider strong US consumer demand for imports. It also overlooks the US government’s gigantic fiscal deficit. This requires it to borrow money from overseas, pushing up the value of the US dollar. This strong dollar supports US purchases of imports.

In other words, the US runs large trade deficits not primarily because other nations have high trade barriers but largely because Americans need to fund their debts and want to buy lots of imported goods. The misleading formula places the blame entirely on an ill-conceived notion, and we are all going to pay the price.

Peter Draper is professor and executive director, Institute for International Trade and Jean Monnet Chair of Trade and Environment, University of Adelaide and Vutha Hing is lecturer in international trade, University of Adelaide

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading

American academic faces royal insult charge

By:
On:
In: South-East Asia

Paul Chambers to record to police on Tuesday to reply complaint filed by Thai army

PUBLISHED: 4 Apr 2025 at 14: 10

Paul Chambers, a lecturer and adviser on international affairs at Naresuan University in Phitsanulok, is a longtime resident of Thailand and well-known commentator on civil and military issues.
Paul Chambers, a teacher and assistant on foreign affairs at Naresuan University in Phitsanulok, is a lifelong resident of Thailand and well-known pundit on civil and military problems.

A popular American scientific and longtime tenant of Thailand is facing a charge of imperial slander, following a complaint filed by the military.

Paul Chambers, a teacher and special adviser on foreign interests at Naresuan University in Phitsanulok, is scheduled to report to authorities on April 8 to recognize the problem, according to Sunai Phasuk, a senior scholar on Thailand for Human Rights Watch.

Mr Sunai said that officers who visited the university on Friday agreed never to prosecute Mr Chambers after agreements with the leader of the organization.

The complaint filed by the Third Army Region stems from a presentation Mr Chambers gave final year about the martial change, which reportedly contained information that was disrespectful to the king, said Mr Sunai.

In addition to a complaint of lese-majeste under Section 112 of the Criminal Code, Mr Chambers could face a charge of computer crime. The two charges are frequently used together.

Lese-majeste is punishable by between 3 and 15 years in prison.

The academic told AFP that while he felt “intimidated” by the situation, he was being supported by the US embassy and colleagues at the university.

Mr Chambers, who holds a PhD in political science from Northern Illinois University, is well-known in academic circles as a commentator on civil-military relations and democracy in Asia, with a special focus on Thailand.

His books include Khaki Capital: The Political Economy of the Military in Southeast Asia, and Praetorian Kingdom: A History of Military Ascendancy in Thailand.

Continue Reading

Myanmar quake: Singapore not just focused on own safety, will do its part to help neighbours in need, says PM Wong

By:
On:
In: South-East Asia

UNCERTAIN GLOBAL ENVIRONMENT

During the meeting, Mr Wong was even asked if the position of institutions such as the Home Team has changed amid a unique global weather and the risk of radicalisations.

” We are now in a more worried, a more questionable, a more dangerous culture worldwide. The importance of security and safety for Singapore is something we cannot take for granted”, he said, adding that the government will continue to invest in its functions to maintain a high level of trust and trust in its safety and security forces.

The visit to the police heart and fire place was a chance for him to familiarizing himself with what the Home Team is doing. &nbsp,

” But interestingly, to suggest to all our Home Team soldiers, thank you for your service, thank you for your devotion, your confidence and your dedication to serve”, he added. &nbsp,

During the visit, Mr Wong was briefed on some of the latest education and operational capabilities of the Home Team, such as the officer’s small transceiver guns to store drones, and the new rapid reaction car with advanced features such as automatic number plate recognition. &nbsp,

SCDF even demonstrated its” bright classroom” with Digital Reality and Expanded Reality training methods, and the electric pump ladder, dubbed as Southeast Asia’s first fully electric firefighting aircraft.

Several of the latest technologies are a result of collaborations with HTX ( Home Team Science and Technology Agency ). But not all technology needs to be homegrown, Mr Wong said. &nbsp,

” We, of course, want to nurture and groom and get some of that anchored within Singapore, but we also learn from the best and in so many different places”, he added. &nbsp,

There may also be more technology-enabled crimes including threats from unmanned vehicles and unmanned autonomous vehicles. &nbsp,

” With all these new threats that continue to emerge, our own capabilities have to improve, and we are always focused on harnessing the best technologies to make sure that we have an effective Home Team”, the prime minister said.

Continue Reading

Trump’s 25% auto tariffs: Price cuts and ‘safe mode’ – how Southeast Asia players might ride out turbulence

By:
On:
In: Asia

Both Malaysia and Indonesia have much thinner vehicle business links with the US, with the countries ‘ full vehicle parts exports to the US worth US$ 86.3 million and US$ 73.8 million both in 2023, according to the UN trade figures.

While not all South Asian countries does face serious economic impacts following the introduction of the new tariffs, the ripple effects may mean their mechanical industries will face fresh market dynamics.

For example, Archanun feels that North Vietnamese carmakers- considered comparatively smaller global players that also produce most of their cars directly- will try to “divert” their car sales from the US to countries like Thailand.

” That seems to be in line with what we observed in Thailand, where Asian carmakers like Kia or Hyundai are participating in a price war intensively”, he said, noting that sticker rates on some models were slashed by roughly 25 per cent.

It is worth noting that ahead of the tax date, Hyundai had announced it had spend US$ 21 billion in the US by building a new metal plant in Louisiana. Whether that move reaped any concessions with the Trump administration is unclear.

Likewise, larger Original Equipment Manufacturers ( OEM)- global carmakers such as Toyota that Southeast Asian countries largely serve as local parts suppliers- will also be looking for alternative opportunities given that their vehicles are likely to be priced out of the US market, Patarapong said.

The solution may end up largely being within Southeast Asia itself, he suggested, contending that the impact of trade barriers to the US could in time be supplemented by a rise in intra-ASEAN trade, coupled with more investments within the broader ASEAN 6 group, which includes China, Japan, South Korea, Australia, New Zealand and India.

” I think ( the industry in Southeast Asia ) can weather the storm to some extent”, he said. ” In the long term, we think it may not be so bad”.

He expected more investment from countries such as China in the regional automotive industry because it wants” to rely more on the regional value chain rather than the US market”.

” For Japan, I think they will not withdraw their investments very easily, because right now they need to make sure that their investment is something controllable and ASEAN is like a backyard of Japan.

” You can also see more and more investment by the Korean automotive sector in ASEAN too, especially Vietnam and Indonesia. That’s going to increase over time, “he said.

Hyundai has invested US$ 415 million in Vietnam and employs about 2, 300 people, with annual revenues of around US$ 2.6 billion.

International businesses serving the auto industry with presence in Southeast Asia, like Desoutter Industrial Tools, are already trying to chart a course where they no longer have dependence on the American market.

But they are” hesitating” about where and when to invest given the pace and unpredictability of Trump’s policy-making, according to Glenn Heed, the global business manager for the motor vehicle industry at Desoutter, which provides automotive assembly tools and process control technologies to major carmakers around the world. It has operations in Thailand, Malaysia, Indonesia and Vietnam.

” The economy is breaking or slowing down just because of the uncertainty,” Heed said”. Of course, I’m worried. But this affects everyone. It’s how agile you are. What kind of decisions are you taking? I do think it’ll be like this for a long time, so we are trying to change the way we see the world, “he said.

Importantly, he sees the” possibility to increase partnerships with neighbours and other parts of the world”, and drive the rise of” local for local “production. &nbsp,

” Over a long time, I think it could be a positive thing for the rest of the world. ” &nbsp, &nbsp,

But Archanun cautioned that a self-serving strategy in Southeast Asia alone could not fill the gap for companies losing out on American business. &nbsp,

He forecasted that demand for durable goods like vehicles would drop in the months to come given the broader economic shocks expected following the tariffs introduced to countries all around the world.

That could lead to strong competition among automakers facing constrained consumer demand in this region.

” The cake will be smaller. They will have to fight very fiercely in this market, “he said.

Continue Reading

Trump tariffs: How will India navigate a world on the brink of a trade war?

By:
On:
In: Asia

Donald Trump’s cover taxes have put the world on the verge of a possible international trade war. The European Union has vowed a united answer, and China has threatened measures.

Scores agencies like Fitch have warned that the large price hikes could result in lower development, higher prices and possibly a crisis in some parts of the world.

How may India- Asia’s second largest market- navigate these global tremors?

Trump has dealt the most brutal blow to Asian countries, slapping 34 % tariffs on China in addition to the 20 % previously levied. Vietnam and Cambodia will have to give 46 % and 49 % respectively.

In relative terms, at 27 % India has fared better.

But the price is still rough and will greatly influence big “labour intense exports”, says Priyanka Kishore of the consultancy Asia Decoded. ” That will probably have a knock-on impact on domestic desire and title gross domestic product at a time when progress is now stuttering”, said Ms Kishore.

But the new trade realities also throw up opportunities for India.

Its new price divergent with Asian peers may possibly guide to some trade re-routing. ” We can bring the shoes and clothing company from Asiatic peers if we get our work up”, says Nilesh Shah, a senior fund manager.

This may take time nevertheless.

Prime Minister Narendra Modi’s state will therefore have to be strategic in how it navigates the situation.

Foremost, the news really “give the state a greater sense of urgency in wrapping up a business deal with the US”, says Rahul Ahluwalia, a public policy expert who previously worked for a government office. ” The US is our largest export business, so this is significant stuff”.

India exports some$ 91bn ( £69bn ) in goods to the US, which account for 18 % of its overall exports. Hectic trade negotiations have been under approach with a drop date for finish. Ahluwalia says that date could now be compressed and brought forth.

While doing that, India may even develop export markets beyond the US and concentrate on regions where tariffs remain low, such as Europe, Southeast Asia, and Africa, recommends American business research agency GTRI.

In the last couple of years, India has shown a renewed appetite for trade deals, launching free trade agreement (FTA ) talks with a range of countries and blocs, including the European Union and the United Kingdom.

Last year, Delhi signed a$ 100bn free trade agreement with the European Free Trade Association ( EFTA )- a group of four European countries that are not members of the European Union.

Experts say talks with other partners could now be expedited as cracks deepen between the US and many other global economies over Trump’s actions.

But even as trade negotiations carry on with global partners, the government will need a plan on how it deals with the domestic fallout of Trump’s decision.

Impact on sectors that employ millions of people- like gems and jewellery and textiles- is likely to be significant. The government will need to extend support through means like expanding production-linked subsidies to ensure that India’s domestic industry stays globally competitive and can leverage the new opportunities this has thrown up, according to the consultancy, Ernst &amp, Young

The tariffs are “fundamentally reshaping the global trading system”, says Agneshwar Sen, a trade policy expert at Ernst &amp, Young India. This will require a “fundamental revaluation of trading strategies” as new supply chains emerge, he adds.

India will also have to be mindful of other risk factors that emerge from this- such as” Chinese dumping”, says Mr Shah.

As it becomes more difficult for Chinese goods to enter the US, these will have to find other markets. And there are few others that are as large as India.

“The global South accounts for more than 20% of global consumption and is where the new middle class is being created. This is where China will attempt to sell,” according to Akash Prakash of Amansa Capital, an investment management company in Singapore.

For the moment there’s little clarity and no official word from the government on what its plans are.

India has already reduced tariffs on some goods including high-end motorbikes and bourbon whiskey. Unlike Canada, Mexico or the European Union, Modi’s government has adopted a conciliatory approach to Trump and these announcements are unlikely to trigger a retaliation, say experts.

Indian businesses will now most likely face a period of uncertainty which is unlikely to go away anytime soon.

” Clearly, the ( Trump ) administration wants even broader and deeper tariff cuts. The question is what, if anything, will satisfy the Trump administration”?, Milan Vaishnav, a senior fellow at Carnegie Endowment told the BBC.

It is a million dollar question, for which there are no immediate answers.

Follow BBC News India on Instagram, YouTube, X and Facebook.

Continue Reading