Thailand is set to overhaul its tax system by 2025, proposing taxation of residents’ worldwide income and introducing a 15 percent global minimum corporate tax for multinationals, aligning with international standards. These changes aim to broaden the tax base but may impact foreign investment and compliance costs.
Thailand is set to overhaul its tax system by 2025, proposing taxation of residents’ worldwide income and introducing a 15 percent global minimum corporate tax for multinationals, aligning with international standards. These changes aim to broaden the tax base but may impact foreign investment and compliance costs.
Thailand is preparing to overhaul its taxation framework with a proposed amendment to Section 41 of the Revenue Code, aiming to tax the worldwide income of residents. Under this draft legislation, individuals who spend 180 days or more in Thailand would be required to pay taxes on their global earnings, irrespective of whether the income is transferred to Thailand.
This marks a significant departure from the current system, which taxes foreign income only if it is brought into the country within the same calendar year it is earned. The proposal, expected to take effect in 2025, has drawn mixed reactions.
While it reflects Thailand’s alignment with international tax norms, concerns are mounting among expatriates and foreign chambers of commerce over its potential impact on long-term residency and foreign direct investment.
As discussions around the draft legislation unfold, it is crucial to explore its implications for Thailand’s economic landscape, expatriate community, and global competitiveness.
Changes in 2024: A shift in taxation of foreign-sourced income
On January 1, 2024, a new tax rule was introduced, altering the way foreign-sourced income is taxed. Under the previous tax system, individuals in Thailand who were tax residents (spending 180 days or more in the country) were only taxed on their foreign income if it was brought into Thailand within the same year it was earned.
However, under the new rule, Thai nationals and foreigners who have been in the country for at least 180 days will be taxed on all foreign income, even if it is not brought into Thailand within the year.
This policy change significantly expands the scope of taxable income for residents, including income from employment, business operations, and passive income such as interest, dividends, and rental income from foreign sources. These new rules represent a marked shift from the current approach, making it important for individuals residing in Thailand to reassess their tax obligations, particularly about their overseas earnings.
These changes signal a broader move toward aligning Thailand’s tax policies with global standards, but they also raise concerns about the potential impact on foreign investment and expatriate residents who may now face higher tax liabilities on their global income.
ကိုးကား- ASEAN Briefing
Thailand is set to overhaul its tax system by 2025, proposing taxation of residents’ worldwide income and introducing a 15 percent global minimum corporate tax for multinationals, aligning with international standards. These changes aim to broaden the tax base but may impact foreign investment and compliance costs.
Thailand is preparing to overhaul its taxation framework with a proposed amendment to Section 41 of the Revenue Code, aiming to tax the worldwide income of residents. Under this draft legislation, individuals who spend 180 days or more in Thailand would be required to pay taxes on their global earnings, irrespective of whether the income is transferred to Thailand.
This marks a significant departure from the current system, which taxes foreign income only if it is brought into the country within the same calendar year it is earned. The proposal, expected to take effect in 2025, has drawn mixed reactions.
While it reflects Thailand’s alignment with international tax norms, concerns are mounting among expatriates and foreign chambers of commerce over its potential impact on long-term residency and foreign direct investment.
As discussions around the draft legislation unfold, it is crucial to explore its implications for Thailand’s economic landscape, expatriate community, and global competitiveness.
Changes in 2024: A shift in taxation of foreign-sourced income
On January 1, 2024, a new tax rule was introduced, altering the way foreign-sourced income is taxed. Under the previous tax system, individuals in Thailand who were tax residents (spending 180 days or more in the country) were only taxed on their foreign income if it was brought into Thailand within the same year it was earned.
However, under the new rule, Thai nationals and foreigners who have been in the country for at least 180 days will be taxed on all foreign income, even if it is not brought into Thailand within the year.
This policy change significantly expands the scope of taxable income for residents, including income from employment, business operations, and passive income such as interest, dividends, and rental income from foreign sources. These new rules represent a marked shift from the current approach, making it important for individuals residing in Thailand to reassess their tax obligations, particularly about their overseas earnings.
These changes signal a broader move toward aligning Thailand’s tax policies with global standards, but they also raise concerns about the potential impact on foreign investment and expatriate residents who may now face higher tax liabilities on their global income.
ကိုးကား- ASEAN Briefing
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Company says higher duties on Chinese cranes would just increase costs for American ports. The US ports association agrees
A leading Chinese manufacturer has taken the rare step of publicly criticising US plans to hike tariffs on made-in-China cranes, warning that the proposal would only raise costs for American ports.
Company says higher duties on Chinese cranes would just increase costs for American ports. The US ports association agrees
A leading Chinese manufacturer has taken the rare step of publicly criticising US plans to hike tariffs on made-in-China cranes, warning that the proposal would only raise costs for American ports.
Shanghai Zhenhua Heavy Industries – China’s top producer of container gantry cranes – denied it was a threat to US national security in comments submitted to the Office of the US Trade Representative (USTR) on Monday, adding that levies on Chinese products would not help revive American manufacturing.
China’s ship-to-shore cranes “pose no alleged cybersecurity risk, and the proposed tariffs are not a legitimate remedy”, it said in the statement.
The company’s comments come amid growing industry backlash against the US trade office’s proposal to slap a 100 percent tariff on Chinese-made cranes, which has also provoked criticism from a major US ports association.
USTR first proposed the levy in late April, along with new duties of 20 percent to 100 percent on containers and chassis made in China.
The measures are part of Washington’s broader push to revive US manufacturing and push back against China’s dominance in the maritime sector, which has also seen the introduction of steep port fees targeting Chinese-linked vessels.
The American Association of Port Authorities echoed those comments in its own submission to USTR, warning that the tariffs were doomed to fail due to a lack of alternatives to Chinese-made cranes in the market.
Applying the tariff “will not create a domestic crane manufacturing industry out of thin air. It will only increase costs for public port authorities,” the association said.
There are currently no American producers of ship-to-shore cranes, it noted.
Only three non-Chinese companies are active in the international market: Japan’s Mitsui and the European firms Konecranes and Liebherr.
But none of them have the production capacity to replace China’s market share, the association said.
Shanghai Zhenhua reportedly accounts for about 70 per cent of the global market for quay cranes, with products sold to 108 countries and regions.
The Shanghai-listed company generated about 4.8 per cent of its revenue in North America last year, down more than 30 per cent year on year, according to the firm’s financial statement.
In 2024, the administration of US President Joe Biden imposed a 25 per cent tariff on Chinese STS cranes.
US ports currently have 55 cranes on order and expect to need another 151 over the next six to 10 years. If the tariffs go ahead, they could cost America’s ports up to US$6.7 billion over the next decade, the association estimated.
The Port of Houston in Texas has eight cranes from Shanghai Zhenhua contracted for delivery in spring 2026, at a price of US$14 million each. That means the port would owe a whopping US$302.4 million in taxes if it is forced to pay the full tariffs, the association said.
Though the AAPA said it strongly supported efforts to reshore crane manufacturing, it added that it would take time to rebuild the industry due to a range of factors, including higher domestic steel prices, a shortage of skilled American welders, and a shortage of supplies of key crane components.
The port association suggested that the US Congress pass a bill establishing a tax credit to encourage domestic manufacturing, and called on USTR to hold off on any further tariffs on cranes until such legislation is enacted.
It also called for a delay of one to two years in implementing the proposed 100 percent tariff and requested that cranes ordered or contracted before the proposal’s publication on April 17, 2025, be exempted.
Company says higher duties on Chinese cranes would just increase costs for American ports. The US ports association agrees
A leading Chinese manufacturer has taken the rare step of publicly criticising US plans to hike tariffs on made-in-China cranes, warning that the proposal would only raise costs for American ports.
Shanghai Zhenhua Heavy Industries – China’s top producer of container gantry cranes – denied it was a threat to US national security in comments submitted to the Office of the US Trade Representative (USTR) on Monday, adding that levies on Chinese products would not help revive American manufacturing.
China’s ship-to-shore cranes “pose no alleged cybersecurity risk, and the proposed tariffs are not a legitimate remedy”, it said in the statement.
The company’s comments come amid growing industry backlash against the US trade office’s proposal to slap a 100 percent tariff on Chinese-made cranes, which has also provoked criticism from a major US ports association.
USTR first proposed the levy in late April, along with new duties of 20 percent to 100 percent on containers and chassis made in China.
The measures are part of Washington’s broader push to revive US manufacturing and push back against China’s dominance in the maritime sector, which has also seen the introduction of steep port fees targeting Chinese-linked vessels.
The American Association of Port Authorities echoed those comments in its own submission to USTR, warning that the tariffs were doomed to fail due to a lack of alternatives to Chinese-made cranes in the market.
Applying the tariff “will not create a domestic crane manufacturing industry out of thin air. It will only increase costs for public port authorities,” the association said.
There are currently no American producers of ship-to-shore cranes, it noted.
Only three non-Chinese companies are active in the international market: Japan’s Mitsui and the European firms Konecranes and Liebherr.
But none of them have the production capacity to replace China’s market share, the association said.
Shanghai Zhenhua reportedly accounts for about 70 per cent of the global market for quay cranes, with products sold to 108 countries and regions.
The Shanghai-listed company generated about 4.8 per cent of its revenue in North America last year, down more than 30 per cent year on year, according to the firm’s financial statement.
In 2024, the administration of US President Joe Biden imposed a 25 per cent tariff on Chinese STS cranes.
US ports currently have 55 cranes on order and expect to need another 151 over the next six to 10 years. If the tariffs go ahead, they could cost America’s ports up to US$6.7 billion over the next decade, the association estimated.
The Port of Houston in Texas has eight cranes from Shanghai Zhenhua contracted for delivery in spring 2026, at a price of US$14 million each. That means the port would owe a whopping US$302.4 million in taxes if it is forced to pay the full tariffs, the association said.
Though the AAPA said it strongly supported efforts to reshore crane manufacturing, it added that it would take time to rebuild the industry due to a range of factors, including higher domestic steel prices, a shortage of skilled American welders, and a shortage of supplies of key crane components.
The port association suggested that the US Congress pass a bill establishing a tax credit to encourage domestic manufacturing, and called on USTR to hold off on any further tariffs on cranes until such legislation is enacted.
It also called for a delay of one to two years in implementing the proposed 100 percent tariff and requested that cranes ordered or contracted before the proposal’s publication on April 17, 2025, be exempted.
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On May 12, 2025, the Trump administration announced a mutual reduction in trade measures between the United States and China. This includes not only a reduction in tariffs—bringing U.S. rates down from 145 percent to 30 percent (which is on top of sectoral and Section 301 tariffs), and Chinese tariffs on U.S. goods from 125 percent to 10 percent—but also the relaxation of the critical minerals export restrictions China put in place following “Liberation Day.”
On May 12, 2025, the Trump administration announced a mutual reduction in trade measures between the United States and China. This includes not only a reduction in tariffs—bringing U.S. rates down from 145 percent to 30 percent (which is on top of sectoral and Section 301 tariffs), and Chinese tariffs on U.S. goods from 125 percent to 10 percent—but also the relaxation of the critical minerals export restrictions China put in place following “Liberation Day.”
While many details remain unresolved, this tariff rollback marks a welcome step that could help ease inflation and bolster economic prospects. However, it does not undo the significant damage already inflicted by elevated costs, disrupted supply chains, heightened uncertainty, and weakened U.S. credibility with allies. The ongoing reliance on an erratic trade policy—marked by temporary fixes, strategic inconsistency, and persistent unpredictability—continues to undermine long-term economic resilience and U.S. global leadership, while imposing avoidable costs on consumers and businesses alike.
A Step in the Right Direction . . .
First things first: Tariffs are lower today than they were yesterday, and that is undeniably a positive step. Over the medium term, this reduction should help ease inflationary pressures in the United States, improve the odds of avoiding a recession, and support the capital investment needed to compete strategically with China. Compared to where things stood just 24 hours ago, this is real progress.
. . . But Damage Has Already Been Done
While the rollback is welcome, tariffs were set at punishing levels for more than a month. U.S. firms dependent on imports were either forced to absorb these elevated costs or delay purchases altogether. This caused immediate pain for businesses and consumers and set the stage for future price spikes, potential shortages, and in the long term, lower employment and output. Recent research underscores this point, finding that U.S. tariffs, especially those enacted on Liberation Day, will reduce real income in the United States by $300 billion annually by 2028.
Tariffs Are Still Too High
Even after the temporary rollback, U.S. tariffs remain well above what most economists consider welfare-maximizing levels. A recent report published by the National Bureau of Economic Research argues that the optimal tariff structure would involve lower rates overall and a reallocation away from intermediate goods. This structure would reduce costs for domestic producers, increase the competitiveness of U.S. products in global markets, and likely lead to higher productivity and higher wages here at home. Evidence suggests that fixing just this one inefficiency in the current tariff structure could raise income considerably.
As it stands, nearly 60 percent of Trump-era tariffs target inputs used by U.S. firms—not finished goods from strategic rivals. This distorts supply chains at home while offering little strategic advantage. Even post-reduction, many of these distortions persist.
The Uncertainty Tax on the Economy
Crucially, today’s rollback is not permanent. Despite statements about a “shared interest” in reducing trade barriers, both sides agreed only to another 90-day pause. Firms remain in limbo as they try to plan long-term sourcing and investment decisions. This stop-and-start approach continues to generate instability and uncertainty which acts as a deadweight on investment. Firms will be less willing to commit capital in the United States or China if the viability of the investment hinges on the unpredictable swings of tariff policy.
This fairly obvious point is backed up by academic literature, including Handley and Limão (2017), who demonstrate that trade policy uncertainty can hurt investment as much as actual tariffs. Volatility becomes a tax on planning, especially in capital-intensive sectors like automobiles, semiconductors, and advanced manufacturing.
Credibility Is Eroding—and That’s Dangerous
The administration warned that trade retaliation would carry consequences. But after China’s counter, it appears to have emerged with a lower effective tariff rate than it faced the morning of April 2. This sequence undermines the administration’s preferred posture that it can always “out-escalate” its way to victory in trade disputes. That proposition has now been disproven, and U.S. credibility is weaker for it.
Threat-based trade policy without consistency or follow-through is not just ineffective, it is counterproductive, which is detrimental to administration’s goals and risky for everyday Americans. What happens when the administration feels the need to regain credibility by following through on a threat—regardless of the consequences?
Favoring Adversaries, Alienating Allies
Beyond credibility, the administration is draining trust from longstanding allies. While the deal with the United Kingdom reduced the cost of Land Rovers and Jaguars for American consumers, it did little for broader working-class constituencies. Meanwhile, other allies are growing frustrated with what increasingly resembles economic coercion: “Deal with us or suffer.”
This approach imposes reputational costs and undermines long-term cooperation. Freund, Mattoo, Mulabdic, and Ruta (2023) find that as the United States and China weaponize trade ties, third countries have begun to hedge. Their analysis of post-2018 trade flows show growing “policy-driven divergence,” as supply chains shift based on perceived reliability, not efficiency.
Since 2018, Japan, South Korea, and the European Union have all expanded regional trade agreements—often without U.S. involvement. If the United States continues treating allies more harshly than competitors, that trend will only accelerate.
Two Truths at Once
Like many reversals from this administration, today’s tariff cut requires accepting two truths at once. First, it is a necessary and overdue correction to a damaging policy. Second, the costs of the reversal—higher inflation, weaker investment, and strained alliances—are still unfolding.
The evidence increasingly tells a consistent story: Politically motivated tariff shocks may serve short-term goals, but they weaken long-term economic resilience, degrade institutions, and undermine U.S. global leadership. The price of unpredictability is high—and rising.
Consider the Consumer
Hopefully, this rollback signals something else: The administration may be remembering the importance of the American consumer. Since April 2, there has been a worrying drumbeat of rhetoric portraying the American people solely as producers of physical goods—implying there is no need to worry about who is able to consume them.
That message is hard to reconcile with the administration’s own campaign promises. But this change in course is an opportunity to reaffirm a basic principle: Government should improve the material well-being of its people. That means raising, not lowering, living standards.
So, to end on a somewhat hopeful note, with this pause in trade hostilities, the administration seems more open to the idea that boiling the U.S. consumer alive to bring back “traditional jobs” may not be the best path forward. That is a good thing.
Source - https://www.csis.org/analysis/understanding-temporary-de-escalation-us-china-trade-war
On May 12, 2025, the Trump administration announced a mutual reduction in trade measures between the United States and China. This includes not only a reduction in tariffs—bringing U.S. rates down from 145 percent to 30 percent (which is on top of sectoral and Section 301 tariffs), and Chinese tariffs on U.S. goods from 125 percent to 10 percent—but also the relaxation of the critical minerals export restrictions China put in place following “Liberation Day.”
While many details remain unresolved, this tariff rollback marks a welcome step that could help ease inflation and bolster economic prospects. However, it does not undo the significant damage already inflicted by elevated costs, disrupted supply chains, heightened uncertainty, and weakened U.S. credibility with allies. The ongoing reliance on an erratic trade policy—marked by temporary fixes, strategic inconsistency, and persistent unpredictability—continues to undermine long-term economic resilience and U.S. global leadership, while imposing avoidable costs on consumers and businesses alike.
A Step in the Right Direction . . .
First things first: Tariffs are lower today than they were yesterday, and that is undeniably a positive step. Over the medium term, this reduction should help ease inflationary pressures in the United States, improve the odds of avoiding a recession, and support the capital investment needed to compete strategically with China. Compared to where things stood just 24 hours ago, this is real progress.
. . . But Damage Has Already Been Done
While the rollback is welcome, tariffs were set at punishing levels for more than a month. U.S. firms dependent on imports were either forced to absorb these elevated costs or delay purchases altogether. This caused immediate pain for businesses and consumers and set the stage for future price spikes, potential shortages, and in the long term, lower employment and output. Recent research underscores this point, finding that U.S. tariffs, especially those enacted on Liberation Day, will reduce real income in the United States by $300 billion annually by 2028.
Tariffs Are Still Too High
Even after the temporary rollback, U.S. tariffs remain well above what most economists consider welfare-maximizing levels. A recent report published by the National Bureau of Economic Research argues that the optimal tariff structure would involve lower rates overall and a reallocation away from intermediate goods. This structure would reduce costs for domestic producers, increase the competitiveness of U.S. products in global markets, and likely lead to higher productivity and higher wages here at home. Evidence suggests that fixing just this one inefficiency in the current tariff structure could raise income considerably.
As it stands, nearly 60 percent of Trump-era tariffs target inputs used by U.S. firms—not finished goods from strategic rivals. This distorts supply chains at home while offering little strategic advantage. Even post-reduction, many of these distortions persist.
The Uncertainty Tax on the Economy
Crucially, today’s rollback is not permanent. Despite statements about a “shared interest” in reducing trade barriers, both sides agreed only to another 90-day pause. Firms remain in limbo as they try to plan long-term sourcing and investment decisions. This stop-and-start approach continues to generate instability and uncertainty which acts as a deadweight on investment. Firms will be less willing to commit capital in the United States or China if the viability of the investment hinges on the unpredictable swings of tariff policy.
This fairly obvious point is backed up by academic literature, including Handley and Limão (2017), who demonstrate that trade policy uncertainty can hurt investment as much as actual tariffs. Volatility becomes a tax on planning, especially in capital-intensive sectors like automobiles, semiconductors, and advanced manufacturing.
Credibility Is Eroding—and That’s Dangerous
The administration warned that trade retaliation would carry consequences. But after China’s counter, it appears to have emerged with a lower effective tariff rate than it faced the morning of April 2. This sequence undermines the administration’s preferred posture that it can always “out-escalate” its way to victory in trade disputes. That proposition has now been disproven, and U.S. credibility is weaker for it.
Threat-based trade policy without consistency or follow-through is not just ineffective, it is counterproductive, which is detrimental to administration’s goals and risky for everyday Americans. What happens when the administration feels the need to regain credibility by following through on a threat—regardless of the consequences?
Favoring Adversaries, Alienating Allies
Beyond credibility, the administration is draining trust from longstanding allies. While the deal with the United Kingdom reduced the cost of Land Rovers and Jaguars for American consumers, it did little for broader working-class constituencies. Meanwhile, other allies are growing frustrated with what increasingly resembles economic coercion: “Deal with us or suffer.”
This approach imposes reputational costs and undermines long-term cooperation. Freund, Mattoo, Mulabdic, and Ruta (2023) find that as the United States and China weaponize trade ties, third countries have begun to hedge. Their analysis of post-2018 trade flows show growing “policy-driven divergence,” as supply chains shift based on perceived reliability, not efficiency.
Since 2018, Japan, South Korea, and the European Union have all expanded regional trade agreements—often without U.S. involvement. If the United States continues treating allies more harshly than competitors, that trend will only accelerate.
Two Truths at Once
Like many reversals from this administration, today’s tariff cut requires accepting two truths at once. First, it is a necessary and overdue correction to a damaging policy. Second, the costs of the reversal—higher inflation, weaker investment, and strained alliances—are still unfolding.
The evidence increasingly tells a consistent story: Politically motivated tariff shocks may serve short-term goals, but they weaken long-term economic resilience, degrade institutions, and undermine U.S. global leadership. The price of unpredictability is high—and rising.
Consider the Consumer
Hopefully, this rollback signals something else: The administration may be remembering the importance of the American consumer. Since April 2, there has been a worrying drumbeat of rhetoric portraying the American people solely as producers of physical goods—implying there is no need to worry about who is able to consume them.
That message is hard to reconcile with the administration’s own campaign promises. But this change in course is an opportunity to reaffirm a basic principle: Government should improve the material well-being of its people. That means raising, not lowering, living standards.
So, to end on a somewhat hopeful note, with this pause in trade hostilities, the administration seems more open to the idea that boiling the U.S. consumer alive to bring back “traditional jobs” may not be the best path forward. That is a good thing.
Source - https://www.csis.org/analysis/understanding-temporary-de-escalation-us-china-trade-war
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The highly consequential meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping in Kazan on the side lines of the BRICS summit is opening exciting new opportunities. The ripple effects of this key interaction between strong leaders of the two civilizational states will naturally be felt on the bilateral terrain. Apart from promising stability along their disputed border, the benefits of the Kazan conversation go far beyond security.
The highly consequential meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping in Kazan on the side lines of the BRICS summit is opening exciting new opportunities. The ripple effects of this key interaction between strong leaders of the two civilizational states will naturally be felt on the bilateral terrain. Apart from promising stability along their disputed border, the benefits of the Kazan conversation go far beyond security. For instance, the dialogue between the two tall leaders has opened the door to a new phase of geo-economic engagement between New Delhi and Beijing. Chinese investments in In dia and Indian exports to China in the services sector, especially Information Technology and pharmaceutical and agri-sectors can be the new template for en gagement in the post-Kazan era. After the 2014 summit between Prime Minister Modi and President Xi in India, Beijing pledged a US$20 billion investment pack age in India. That included setting up an industrial park for manufacturing electrical equipment. If everything had gone according to plan, this equipment would have been exported to China, thus easing the adverse balance of payments, which India has chronically faced in its trade relations with China. Following Kazan, if the bilateral economic track takes off, it can encourage the two, to consider joint partnerships in third countries, especially in the Global South under the India-China+ formula. In the future, this formulation could mutate into a Russia-India-China+ idea where the three giants of the multipolar world can work together in the Global South. As the dust settles on the Modi-Xi talks — an event that took place after a gap of five years during which military tensions soared along the high mountain ranges of eastern Ladakh, it is now possible that both Beijing and New Delhi pick up the threads and explore possibilities of joint forays in Myanmar — a key nation on the cusp of South and Southeast Asia.
Why Myanmar?
There are at least four compelling reasons why India needs to reengage with Myanmar. First, Myanmar’s geography makes it a natural candidate for a deeper partnership. Myanmar is India’s gateway to Southeast Asia — indeed the pivot of New Delhi’s Act East policy. It presents a contiguous corridor for greater connectivity between Northeast India and ASEAN. Unsurprisingly, Myanmar is the fulcrum of the Asian Highway that will link India with Thailand, opening the possibility of a northern hookup with Danang in Vietnam. Trade and investments along the corridor can become a new engine for creating jobs, prosperity, and a surge in people-to-people connectivity. Second, Myanmar possesses a unique geo-strategic maritime location, along the Bay of Bengal. India has been Myanmar’s partner in building the Sittway Port. An outlet with huge potential, it is the natural gateway to channel trade from India’s northeast axis with the rest of the world, including ASEAN. On its part, China has constructed the deep-sea port in Kyaukpyu co-located with an industrial park. This port is of prime strategic importance as it lowers China’s trade dependence on the US-dominated Malacca straits, a key chokepoint that can be leveraged for the containment of China. Third, Myanmar possesses huge natural resources. These include significant deposits of precious and semiprecious stones, including rubies, sapphires, jade, and other gem stones. It also has deposits of silver, lead, zinc, gold, tin, tungsten, and barite. Besides, My anmar has substantial reserves of petroleum and natural gas, apart from huge hydropower potential, which can make it energy surplus. Myanmar can also be a major player in guaranteeing regional food security as its fertile land supports the cultivation of various crops, including rice, pulses, and other agricultural products, complementing marine resources such as fisheries. The country’s forests are also a major source of timber, fuel wood, and other forest products. Finally, as a neighbour of the two giants of the multipolar world order, Myanmar is a vital bridge between India and China, spurring the demand for a new regional initiative. Consequently, as a follow-up to the Kazan conversation between Prime Minister Modi and President Xi, a new China-India-Myanmar (CIM) economic corridor can be trilaterally considered a derivative of the BCIM plan. More so, such a standalone project can be kept out of the BRI framework, as its roots can be traced to the pre-BRI era. China has already flagged off the China-Myanmar Economic Corridor, which can be rebooted as a new project, with nodes firmly extending into India. (Atul Aneja is a strategic analyst based in New Delhi, India.)
Source: Global New Light of Myanmar
The highly consequential meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping in Kazan on the side lines of the BRICS summit is opening exciting new opportunities. The ripple effects of this key interaction between strong leaders of the two civilizational states will naturally be felt on the bilateral terrain. Apart from promising stability along their disputed border, the benefits of the Kazan conversation go far beyond security. For instance, the dialogue between the two tall leaders has opened the door to a new phase of geo-economic engagement between New Delhi and Beijing. Chinese investments in In dia and Indian exports to China in the services sector, especially Information Technology and pharmaceutical and agri-sectors can be the new template for en gagement in the post-Kazan era. After the 2014 summit between Prime Minister Modi and President Xi in India, Beijing pledged a US$20 billion investment pack age in India. That included setting up an industrial park for manufacturing electrical equipment. If everything had gone according to plan, this equipment would have been exported to China, thus easing the adverse balance of payments, which India has chronically faced in its trade relations with China. Following Kazan, if the bilateral economic track takes off, it can encourage the two, to consider joint partnerships in third countries, especially in the Global South under the India-China+ formula. In the future, this formulation could mutate into a Russia-India-China+ idea where the three giants of the multipolar world can work together in the Global South. As the dust settles on the Modi-Xi talks — an event that took place after a gap of five years during which military tensions soared along the high mountain ranges of eastern Ladakh, it is now possible that both Beijing and New Delhi pick up the threads and explore possibilities of joint forays in Myanmar — a key nation on the cusp of South and Southeast Asia.
Why Myanmar?
There are at least four compelling reasons why India needs to reengage with Myanmar. First, Myanmar’s geography makes it a natural candidate for a deeper partnership. Myanmar is India’s gateway to Southeast Asia — indeed the pivot of New Delhi’s Act East policy. It presents a contiguous corridor for greater connectivity between Northeast India and ASEAN. Unsurprisingly, Myanmar is the fulcrum of the Asian Highway that will link India with Thailand, opening the possibility of a northern hookup with Danang in Vietnam. Trade and investments along the corridor can become a new engine for creating jobs, prosperity, and a surge in people-to-people connectivity. Second, Myanmar possesses a unique geo-strategic maritime location, along the Bay of Bengal. India has been Myanmar’s partner in building the Sittway Port. An outlet with huge potential, it is the natural gateway to channel trade from India’s northeast axis with the rest of the world, including ASEAN. On its part, China has constructed the deep-sea port in Kyaukpyu co-located with an industrial park. This port is of prime strategic importance as it lowers China’s trade dependence on the US-dominated Malacca straits, a key chokepoint that can be leveraged for the containment of China. Third, Myanmar possesses huge natural resources. These include significant deposits of precious and semiprecious stones, including rubies, sapphires, jade, and other gem stones. It also has deposits of silver, lead, zinc, gold, tin, tungsten, and barite. Besides, My anmar has substantial reserves of petroleum and natural gas, apart from huge hydropower potential, which can make it energy surplus. Myanmar can also be a major player in guaranteeing regional food security as its fertile land supports the cultivation of various crops, including rice, pulses, and other agricultural products, complementing marine resources such as fisheries. The country’s forests are also a major source of timber, fuel wood, and other forest products. Finally, as a neighbour of the two giants of the multipolar world order, Myanmar is a vital bridge between India and China, spurring the demand for a new regional initiative. Consequently, as a follow-up to the Kazan conversation between Prime Minister Modi and President Xi, a new China-India-Myanmar (CIM) economic corridor can be trilaterally considered a derivative of the BCIM plan. More so, such a standalone project can be kept out of the BRI framework, as its roots can be traced to the pre-BRI era. China has already flagged off the China-Myanmar Economic Corridor, which can be rebooted as a new project, with nodes firmly extending into India. (Atul Aneja is a strategic analyst based in New Delhi, India.)
Source: Global New Light of Myanmar
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The 20th China-ASEAN Expo saw record numbers of events, cooperation projects and investments. Nearly 2,000 businesses, up 18.2 per cent from 2022, showcased their products at the expo. High-tech products such as intelligent equipment became a highlight at the expo. Particularly, Brunei’s decision to purchase 30 Chinese-made airplanes, namely C919 and ARJ21, for more than US$2 billion in total became the biggest deal in the expo’s 20-year history.
The 20th China-ASEAN Expo saw record numbers of events, cooperation projects and investments. Nearly 2,000 businesses, up 18.2 per cent from 2022, showcased their products at the expo. High-tech products such as intelligent equipment became a highlight at the expo. Particularly, Brunei’s decision to purchase 30 Chinese-made airplanes, namely C919 and ARJ21, for more than US$2 billion in total became the biggest deal in the expo’s 20-year history.
The bustling scene at the expo illuminates an emerging trend in China’s trade sector in recent months: Even as Chinese exports face a weakening external demand due to a wide range of factors including profound challenges and rising protectionism in advanced economies such as the US and Europe, China’s trade with emerging markets, including ASEAN and countries and regions participating in the joint construction of the Belt and Road Initiative (BRI), continues to rise steadily. Meanwhile, high-value, high-quality Chinese products such as new-energy vehicles (NEVs) and construction equipment are becoming new growth spots.
While foreign media outlets have been hyping claims of “falling” Chinese exports or allegations of Made-in-China being “replaced” by other countries and regions, China’s foreign trade remains resilient in the face of external and internal downward pressure, businesses and economists noted. And as exports remain one of the three growth engines of the Chinese economy, high-value, high-quality trade will continue to help stabilize the world’s second-largest economy in the coming months and years, they noted.
Resilience in hardship
At the exhibition halls of the China-ASEAN Expo, vendors from ASEAN showed a palpable sense of confidence and interest in boosting trade with China, as they showcased various products, which were emptied by visitors. While ASEAN exhibitors focused more on agricultural products and small commodities, Chinese exhibitors focused on high-tech products such as NEVs and robots.
“The world is currently facing an economic slowdown… ASEAN member countries are pinning their hopes on China,” Tan Sri Dato’ Low Kian Chuan, President of The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), told the Global Times on Tuesday on the sidelines of the China-ASEAN Expo. “It can be seen from the trade volume that China-ASEAN trade has surpassed the EU. We need China, and China also needs ASEAN. Bilateral cooperation will definitely deepen.”
In the first eight months of 2023, China’s total imports and exports dropped by 0.1 per cent year-on-year to 27.08 trillion yuan, with exports growing by 0.8 per cent year-on-year to 15.47 trillion yuan, according to data from the General Administration of Customs (GAC). However, there were also plenty of emerging trends that point to the resilience and upgrade of China’s trade sector.
From January to August, China’s imports and exports with 152 countries that are participating in the joint construction of the China-proposed BRI grew by 3.6 per cent yearon-year to 12.62 trillion yuan, accounting for 46.6 per cent of China’s total foreign trade. China’s trade with ASEAN, which remains China’s biggest trading partner, grew by 1.6 per cent year-on-year to 4.11 trillion, accounting for 15.2 per cent of China’s total trade. The fall in China’s overall trade during the period is largely due to declines in exports to the EU, the US and Japan, which all face stubbornly high levels of inflation.
In terms of top export products, demand for Chinese-made mechanical and electrical products remained high, as exports during the first eight months increased 3.6 per cent year-onyear. Exports of cars, including NEVs, skyrocketed by 104.4 per cent year-on-year. China’s car exports have made headlines around the globe, with many foreign media outlets predicting that China is set to overtake Japan as the world’s biggest car exporter in 2023.
A slew of advanced technology exhibits was unveiled at the China-ASEAN Expo. The exhibits cover a wide range of products, spanning aerospace, advanced manufacturing, sustainable development, and digital advanced applicable technologies, offering the audience a glimpse of life in the future. The advanced tech exhibition area covers an area of 3,400 square metres, with a total of 124 exhibitors and 345 exhibiting projects on display.
Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, said Chinese products still maintain a solid competitive edge even though Chinese exports face challenges such as US’ additional tariffs. Gao noted the challenges will be relatively short-term against the back-drop of the trade competition between China and the US.
“The core factor affecting China’s trade, namely the competitiveness of Chinese products, has not undergone major changes,” Gao told the Global Times, adding that while the role of exports as a major economic engine is decreasing due to the rise of Chinese consumption, China’s foreign trade still has a vast potential for development.
High-quality development
New trends in China’s foreign trade also underscored high-quality development, in which more markets have been explored and more Chinese-made high-tech products are getting increasingly popular around the world, analysts noted, stressing that an increasingly optimized trade structure that focuses on emerging markets and industries is more sustainable in the long run.
Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation, said that one of the biggest highlights of China’s foreign trade is that the trade volume with countries participating in the BRI is rising sharply, which in turn lifts local economic developments and thus demand. In terms of product offerings, China’s exports sector has responded swiftly to demand for the digital economy, green development and other new consumption trends.
“To gauge the global influence of one country’s exports, we still need to see whether it can meet the needs of global economic and industrial upgrading, so the quality of exports needs more attention. China’s exports are still recovering, and this recovery is not only reflected in the quantity,” Zhou told the Global Times. “We cannot just focus on increasing the scale of exports, we also need to improve the quality.”
Amid the rapidly shifting global geo-economic landscape and the domestic industrial upgrade, China has made high-quality development in foreign trade one of its top priorities, and has taken a slew of measures in this regard. In April, the Ministry of Commerce introduced a series of policies to stabilize the scale of foreign trade and improve its structure, including helping automakers establish and improve their international marketing and service systems, and improving foreign trade financing services for medium, small and micro enterprises. These measures have greatly helped boost relevant sectors such as soaring NEV exports.
Another highlight of China’s foreign trade sectors this year is surging exports by private enterprises. In the first eight months, total exports value by private enterprises rose by 6 per cent to 14.33 trillion yuan, accounting for 52.9 per cent of the national total, according to the GAC.
The measures, which also include extensively resuming domestic offline exhibitions, will continue to help enterprises explore more markets. China has held a series of trade fairs this year, including the China-ASEAN Expo and the China International Fair for Trade in Services earlier this month. More are under planning, including the China International Import Expo scheduled later this year in Shanghai, which has become a major event for global trade cooperation that focuses on imports.
“I have confidence in China. I believe that China has the conditions and capabilities. Moreover, China is not just the world’s largest factory. It can make breakthroughs and cope with the current challenges through its own technological innovation,” Low said.
Source- The Global New Light of Myanmar
The 20th China-ASEAN Expo saw record numbers of events, cooperation projects and investments. Nearly 2,000 businesses, up 18.2 per cent from 2022, showcased their products at the expo. High-tech products such as intelligent equipment became a highlight at the expo. Particularly, Brunei’s decision to purchase 30 Chinese-made airplanes, namely C919 and ARJ21, for more than US$2 billion in total became the biggest deal in the expo’s 20-year history.
The bustling scene at the expo illuminates an emerging trend in China’s trade sector in recent months: Even as Chinese exports face a weakening external demand due to a wide range of factors including profound challenges and rising protectionism in advanced economies such as the US and Europe, China’s trade with emerging markets, including ASEAN and countries and regions participating in the joint construction of the Belt and Road Initiative (BRI), continues to rise steadily. Meanwhile, high-value, high-quality Chinese products such as new-energy vehicles (NEVs) and construction equipment are becoming new growth spots.
While foreign media outlets have been hyping claims of “falling” Chinese exports or allegations of Made-in-China being “replaced” by other countries and regions, China’s foreign trade remains resilient in the face of external and internal downward pressure, businesses and economists noted. And as exports remain one of the three growth engines of the Chinese economy, high-value, high-quality trade will continue to help stabilize the world’s second-largest economy in the coming months and years, they noted.
Resilience in hardship
At the exhibition halls of the China-ASEAN Expo, vendors from ASEAN showed a palpable sense of confidence and interest in boosting trade with China, as they showcased various products, which were emptied by visitors. While ASEAN exhibitors focused more on agricultural products and small commodities, Chinese exhibitors focused on high-tech products such as NEVs and robots.
“The world is currently facing an economic slowdown… ASEAN member countries are pinning their hopes on China,” Tan Sri Dato’ Low Kian Chuan, President of The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), told the Global Times on Tuesday on the sidelines of the China-ASEAN Expo. “It can be seen from the trade volume that China-ASEAN trade has surpassed the EU. We need China, and China also needs ASEAN. Bilateral cooperation will definitely deepen.”
In the first eight months of 2023, China’s total imports and exports dropped by 0.1 per cent year-on-year to 27.08 trillion yuan, with exports growing by 0.8 per cent year-on-year to 15.47 trillion yuan, according to data from the General Administration of Customs (GAC). However, there were also plenty of emerging trends that point to the resilience and upgrade of China’s trade sector.
From January to August, China’s imports and exports with 152 countries that are participating in the joint construction of the China-proposed BRI grew by 3.6 per cent yearon-year to 12.62 trillion yuan, accounting for 46.6 per cent of China’s total foreign trade. China’s trade with ASEAN, which remains China’s biggest trading partner, grew by 1.6 per cent year-on-year to 4.11 trillion, accounting for 15.2 per cent of China’s total trade. The fall in China’s overall trade during the period is largely due to declines in exports to the EU, the US and Japan, which all face stubbornly high levels of inflation.
In terms of top export products, demand for Chinese-made mechanical and electrical products remained high, as exports during the first eight months increased 3.6 per cent year-onyear. Exports of cars, including NEVs, skyrocketed by 104.4 per cent year-on-year. China’s car exports have made headlines around the globe, with many foreign media outlets predicting that China is set to overtake Japan as the world’s biggest car exporter in 2023.
A slew of advanced technology exhibits was unveiled at the China-ASEAN Expo. The exhibits cover a wide range of products, spanning aerospace, advanced manufacturing, sustainable development, and digital advanced applicable technologies, offering the audience a glimpse of life in the future. The advanced tech exhibition area covers an area of 3,400 square metres, with a total of 124 exhibitors and 345 exhibiting projects on display.
Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, said Chinese products still maintain a solid competitive edge even though Chinese exports face challenges such as US’ additional tariffs. Gao noted the challenges will be relatively short-term against the back-drop of the trade competition between China and the US.
“The core factor affecting China’s trade, namely the competitiveness of Chinese products, has not undergone major changes,” Gao told the Global Times, adding that while the role of exports as a major economic engine is decreasing due to the rise of Chinese consumption, China’s foreign trade still has a vast potential for development.
High-quality development
New trends in China’s foreign trade also underscored high-quality development, in which more markets have been explored and more Chinese-made high-tech products are getting increasingly popular around the world, analysts noted, stressing that an increasingly optimized trade structure that focuses on emerging markets and industries is more sustainable in the long run.
Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation, said that one of the biggest highlights of China’s foreign trade is that the trade volume with countries participating in the BRI is rising sharply, which in turn lifts local economic developments and thus demand. In terms of product offerings, China’s exports sector has responded swiftly to demand for the digital economy, green development and other new consumption trends.
“To gauge the global influence of one country’s exports, we still need to see whether it can meet the needs of global economic and industrial upgrading, so the quality of exports needs more attention. China’s exports are still recovering, and this recovery is not only reflected in the quantity,” Zhou told the Global Times. “We cannot just focus on increasing the scale of exports, we also need to improve the quality.”
Amid the rapidly shifting global geo-economic landscape and the domestic industrial upgrade, China has made high-quality development in foreign trade one of its top priorities, and has taken a slew of measures in this regard. In April, the Ministry of Commerce introduced a series of policies to stabilize the scale of foreign trade and improve its structure, including helping automakers establish and improve their international marketing and service systems, and improving foreign trade financing services for medium, small and micro enterprises. These measures have greatly helped boost relevant sectors such as soaring NEV exports.
Another highlight of China’s foreign trade sectors this year is surging exports by private enterprises. In the first eight months, total exports value by private enterprises rose by 6 per cent to 14.33 trillion yuan, accounting for 52.9 per cent of the national total, according to the GAC.
The measures, which also include extensively resuming domestic offline exhibitions, will continue to help enterprises explore more markets. China has held a series of trade fairs this year, including the China-ASEAN Expo and the China International Fair for Trade in Services earlier this month. More are under planning, including the China International Import Expo scheduled later this year in Shanghai, which has become a major event for global trade cooperation that focuses on imports.
“I have confidence in China. I believe that China has the conditions and capabilities. Moreover, China is not just the world’s largest factory. It can make breakthroughs and cope with the current challenges through its own technological innovation,” Low said.
Source- The Global New Light of Myanmar