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Business Times
a day ago
- Business
- Business Times
Asean increasingly pulled in opposite directions
ALL eyes are on US trade talks, but for the Asean countries, visibility on progress remains poor. This partly reflects the US administration's priority to strike deals with other larger economies including India, Japan, and China. For Asean, only preliminary talks have taken place and formal discussions are yet to happen. In the case of Thailand, it is yet to get a schedule for its first-round talks with high-level officials. Big ask from the US There are other fundamental factors at play. Where some preliminary talks have already occurred, it is unclear what the US wants exactly and officials have been trying to figure out the specific demands. Once they have a sense, a framework to pursue formal negotiations will be put together along with possible proposals. The US has made it unequivocally clear to its trading partners to clamp down on transshipments from China aiming to circumvent US tariffs. This demand is most relevant for Asean countries, but compliance will also likely be challenging. A few of them, especially Vietnam and Thailand, have benefited from these trade diversion effects since the first round of the US-China trade war and these will be difficult to reverse in the short run. Even in Singapore, where we did not see much re-routing in Trump 1.0, a surge in re-exports boosted its trade surplus to a record high in April. The concern is that this demand seems to be a hard constraint from the US. In Thailand's case, ahead of talks with the US, Prime Minister Paetongtarn Shinawatra reportedly ordered a tightening of the issuance of certificates of origin. But by her own admission, it will take time to resolve, likely longer than the 90-day reprieve period for tariffs which expires in early July. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The US administration is likely bent on using negotiations with other countries to keep the pressure on China by preventing a re-routing of exports to the US via these third countries. China's calculated charm offensive At the same time, China is making its move to strengthen ties with the region, indicated by no less than President Xi Jinping's visit to Vietnam, Malaysia and Cambodia in April. Greater cooperation is the big buzzword from official statements. Key proposals from China include building an economic community and deepening supply chains with the region via the creation of industrial parks, special economic zones and technological corridors. Under China's Belt and Road Initiative, it also proposes fast-tracking the construction of infrastructure projects, particularly railways and an 'Air Silk Road' to improve regional connectivity. While the timeline for implementation of these initiatives remains unclear, the consistent theme across Asean to enhance trade and investment relations with China suggests these have likely been shaped by the desire for a common response to rising US protectionism. Follow-up action from China has also been swift, sending an even clearer signal to Asean leaders that its larger northern neighbour is serious in its intent. Before the Asean Summit in Kuala Lumpur last week, negotiations had already been completed to implement version 3.0 of the Asean-China Free Trade Area, an initiative that President Xi was encouraging as recently as his visit. This upgrade covers new sectors such as the green and digital economy and puts greater emphasis on developing regional supply chains. The inaugural Asean-China-GCC Summit also took place last week, attended by Premier Li Qiang. Malaysia can claim the unique distinction of hosting President Xi and Premier Li back-to-back within a month. In contrast, progress among Asean countries on trade talks with the US have been slow. A pivot adds to the uncertainty In addition to the complex nature of these trade negotiations with the US and the difficulties that Asean countries face in removing non-tariff barriers and reducing transshipments, being caught in the crossfire between the US and China will likely present more challenges for the region. The difficulty in coming up with a deal with the US could encourage a pivot by these countries to trade more with China and try to substitute exports to the US. China's share in Asean's total trade is already nearly twice that of the US, so this is not inconceivable, especially with China's initiatives that could bring benefits such as more investment inflows and assistance in infrastructure roll-out. On the flip side, signs of greater economic cooperation with China could prompt the Trump administration to keep US tariffs high against the Asean countries. The upshot is that uncertainty will likely remain elevated and tariffs may go back up after July, posing more downside risks for the region's growth outlook. The writer is chief Asean economist at Nomura
RTHK
11-05-2025
- Business
- RTHK
Cathay to expand 'Air Silk Road' to Middle East
Cathay to expand 'Air Silk Road' to Middle East Erica Peng says Cathay's flights to Riyadh have been popular, with many travellers from the business sector. Photo: RTHK Cathay Pacific's customer travel director said the airline wants to contribute to the "Air Silk Road" by linking up with the Middle East. Erica Peng said Cathay's flights from Hong Kong to Riyadh in Saudi Arabia – relaunched last October – have been quite popular, with business travellers accounting for 70 percent of the customers. She told RTHK's "Government and You" programme that the airline has other routes to the Middle East too, and it wants to bring people from the region to the mainland, Hong Kong and Southeast Asia. "We see in China's partnership platform, we have more chances to explore different business opportunities," she said. "On the other hand, we can also help promote Hong Kong – that we need to tell friends from Belt and Road countries that the SAR is a tremendous global hub for them."
Zawya
29-04-2025
- Business
- Zawya
Saudia Cargo and China Henan Aviation partner to establish a global air logistics bridge connecting Asia and the Middle East
Saudia Cargo and China Henan Aviation (CHAGC) today signed a Memorandum of Understanding (MoU) at a ceremony witnessed by His Excellency, President Abdulaziz Al-Duailej of the General Authority of Civil Aviation (GACA), Mr. Sun Shougang, Executive Vice-Governor of the Henan Provincial People's Government, and Mingachao, Chairman of China Henan Aviation Group. This strategic partnership aims to establish a robust air logistics bridge between Asia-Pacific, the Middle East, Europe, and Africa, leveraging Zhengzhou and Riyadh as key interconnected hubs. The MoU outlines a comprehensive framework for collaboration, encompassing route development, including launching and scaling cargo flights between Zhengzhou and Riyadh, It also includes a dual hub strategy, positioning Zhengzhou and Riyadh as strategic hubs to interconnect Asia-Pacific, the Middle East, Europe, and Africa, optimizing cargo flow and reducing transit times. Furthermore, the collaboration will focus on cargo and logistics innovation, enhancing digital cargo operations, cross-border e-commerce, and sustainability initiatives to drive efficiency and reduce environmental impact. The partnership will also support airport economic zone cooperation, facilitating the integration of bonded logistics, free trade zones, and airside industries to drive trade growth and attract investment. Key aspects also include regulatory alignment, technical and financial cooperation, and exploring investment opportunities in high-tech and aviation-related sectors in Zhengzhou. Eng. Loay Mashabi, CEO and Managing Director of Saudia Cargo, said: "This MoU with CHAGC marks a significant step in Saudia Cargo's strategic expansion and our commitment to supporting Saudi Vision 2030. By establishing a strong air logistics bridge between Zhengzhou and Riyadh, we will unlock new opportunities for trade, facilitate the growth of e-commerce, and strengthen our position as a leading global cargo carrier. We are confident that this partnership will drive innovation, enhance efficiency, and deliver exceptional value to our customers." Chairman Zhang Mingchao from China Henan Aviation Group (CHAGC), added: "Saudi Arabia offers extensive cooperation potential in aviation and the low-altitude economy. With China Henan Aviation Group's progressively integrated aviation industrial chain, we can develop diverse collaborative models. Building on Saudia Cargo's Zhengzhou-Riyadh all-cargo route launch, our newly signed 'Dual Hub' Strategic MOU opens comprehensive strategic cooperation. China Henan Aviation Group will strengthen collaboration with Saudia Cargo to enhance the Zhengzhou-Riyadh 'Air Silk Road' under both nations' civil aviation authorities' guidance. This will strengthen air route support for bilateral trade also advance cooperation in flight simulation systems、aviation training、 aircraft leasing and etc." About Saudia Cargo: Saudia Cargo stands as a leading national cargo carrier, headquartered in the Kingdom of Saudi Arabia. Leveraging the strategic advantage of the country's location, it serves as a highly efficient aerial bridge connecting the East and the West, seamlessly bridging continents. Our extensive reach encompasses approximately 100 airport destinations and 250 customer destinations across four continents, establishing us as a pivotal player in the global air cargo industry. With a legacy spanning over seven decades and a commitment to a 'human-first' approach, Saudia Cargo has consistently upheld its esteemed reputation as one of the world's most dynamic cargo carriers. This reputation is underpinned by a rich history of innovation and resilience. Our robust alliance with SkyTeam Cargo, the world's largest consortium of air cargo carriers, connects us to an impressive network of 150 freighter destinations in addition to nearly 800 passenger destinations worldwide. Saudia Cargo's access to a modern fleet of Boeing freighter aircraft expedites the transportation of diverse cargo types, including e-commerce, pharmaceuticals, high-value shipments, hazardous materials, and perishables. The company's enduring dedication to humanity, reliability, and agility has been instrumental in driving its remarkable growth trajectory, which continues to expand significantly. About: China Henan Aviation Group China Henan Aviation Group is a large-scale aviation industry group established by the Henan Provincial Government, serving as one of the main builders of China's "Air Silk Road". The business covers eight major sectors including aviation investment, airport operations, air cargo transport, air passenger transport, low-altitude economy, aviation services, aviation maintenance and manufacturing, and aviation infrastructure. The group holds a 35% stake in Cargolux and owns China's fifth-largest dedicated cargo airport、 Henan's only locally based all-cargo airline、the largest flight simulator training center in Central China and the country's largest general aviation fleet with the most extensive operational coverage.
Arab News
29-04-2025
- Business
- Arab News
Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou
RIYADH: Saudi Arabia and China are strengthening their air cargo cooperation through a new agreement to create a joint freight hub as part of the Air Silk Road initiative. The deal, inked between Saudia Cargo and Henan Aviation Group, will see new new routes opened between Riyadh and Zhengzhou, according to a statement. This correlates with the Saudi Aviation Strategy, which recognizes the need to increase air connectivity with key markets such as China as part of the Kingdom's goal of transporting 4.5 million tonnes of air cargo by 2030. The statement further highlighted that the agreement aims to 'support integrated logistics services and free trade zone development' and 'advance sustainability and cross-border e-commerce through logistics innovation.' It also seeks to explore investment opportunities in the high-tech and aviation sectors in Zhengzhou. The MoU came during a meeting held by President of the General Authority of Civil Aviation Abdulaziz bin Abdullah Al-Duailej in Riyadh with Henan Province Vice Governor Sun Shougang to bolster investments between the two countries, the Saudi Press Agency reported. During the discussion, the two sides discussed strengthening economic relations, focusing on fostering high-quality investments for leading firms and empowering the private sector to seize available opportunities. Both parties also explored enhancing Saudi-Chinese air transport in alignment with Vision 2030 and the Saudi Aviation Strategy. GACA also held a Saudi-Chinese roundtable to explore collaboration opportunities in logistics zones and air cargo. The meeting included the Chairman of China Henan Aviation Group, along with representatives from national carriers and logistics firms. The roundtable also included various Saudi government entities, such as the Ministry of Energy, the Ministry of Investment, and the Ministry of Transport and Logistic Services, as well as the Saudi General Authority of Foreign Trade, the Economic Cities and Special Zones Authority, the Industrial Center, and the Air Connectivity Program. The Chinese delegation conducted a field visit to the Special Integrated Logistics Zone in Riyadh and the cargo zones at King Abdulaziz International Airport in Jeddah, where they observed operational capabilities, cargo-handling facilities and zones, e-commerce shipments, and the digital capabilities and mechanisms in use. The delegation also visited King Khalid International Airport in Riyadh, where they toured the Airport Operations Control Center to observe the services provided as well as explored the commercial areas, and duty-free store. China's COSCO Shipping unveils Dammam office Chinese company COSCO Shipping has launched its first office in the Kingdom in Dammam in an attempt to enhance operational efficiency and logistical connectivity. This move also strengthens the firm's partnership with the Saudi Ports Authority, or Mawani, supports trade growth, and achieves the goals of the nation's Vision 2030 of consolidating the Kingdom's position as a global logistics hub. Saudi NHC continues house building deal with Chinese firm Saudi Arabia's National Housing Co. has extended its partnership with China State Construction Engineering Corporation, which aims to build 20,000 housing units within NHC destinations. The partnership has been realized through the launch of multiple projects across NHC sites in the Eastern Region, Riyadh, and Jeddah, delivering over 3,800 housing units. It comes as an extension of the Saudi-Chinese partnership series and several agreements signed with Chinese firms during the official visit to China by Minister Al-Hogail and NHC CEO Mohammed bin Saleh Al-Buty. NHC stated that the partnership extends its efforts to enhance the real estate supply and inject more housing units through quality partnerships with major international companies to establish urban destinations with high-quality standards across the Kingdom.
Malay Mail
23-04-2025
- Business
- Malay Mail
Malaysia, China launch ‘twin hub' push to anchor Asean-China Air Silk Road
PUTRAJAYA, April 23 — Malaysia and China today agreed to strengthen their aviation ties by accelerating the development of a 'twin hub' cooperation between Kuala Lumpur International Airport (KLIA) and Zhengzhou Xinzheng International Airport, in pursuit of a smoother and more efficient Asean-China Air Silk Road. Transport Minister Anthony Loke said the cooperation aligned with the shared interests of both nations and is expected to enhance regional air logistics capacity and facilitate closer economic ties. 'Both sides are committed to a comprehensive aviation cooperation and will strengthen the technical exchange of civil aviation expertise, enhance aviation logistics cooperation between KLIA and Zhengzhou Xinzheng International Airport to realise the common vision of a seamless Air Silk Road between Asean and China,' he said in a statement today. Loke said that to ensure the smooth implementation of this initiative, both parties agreed to establish a dedicated working mechanism and plan to organise a high-level forum focused on air logistics cooperation that brings together government and industry stakeholders to explore practical collaboration. Earlier, Loke received a courtesy call from the Vice-Governor of Henan Province, Sun Shougang and his delegation at the Transport Ministry here. The delegation included several aviation experts from the Henan Province, which has a population of nearly 100 million — three times the size of Malaysia — and possesses significant economic weight and potential in developing aviation hubs. The Vice-Governor's visit follows closely after the state visit to Malaysia by Chinese President Xi Jinping, providing a timely opportunity for both sides to follow through on key areas outlined in the recent Malaysia-China Joint Statement. Loke said Malaysia welcomes greater engagement and cooperation with Chinese provinces and cities, especially those like Henan, which possess strong economic capabilities and strategic positioning in key areas such as transport, logistics and regional connectivity. 'We look forward to building a new model of mutually beneficial cooperation together. In particular, against the backdrop of growing uncertainties in global trade, both parties expressed strong confidence in the steady progress of Malaysia-China relations,' he said. — Bernama
