Latest news with #Brics
Bangkok Post
an hour ago
- Business
- Bangkok Post
Will Indonesia regret its trade deal with Trump?
Be careful what you wish for, lest it come true. That ancient proverb comes to mind when considering the eagerness of America's trade partners around the world to negotiate deals with US President Donald Trump's administration. Four countries already have, with Indonesia the latest to do so -- and possibly the first to regret it. The United States has announced a complex, tiered tariff regime, including a 25% tariff on labour-intensive goods such as textiles and footwear, a 40% tariff on goods suspected of being "transshipped" or having content of Chinese origin, and a 50% tariff on so-called "strategic sectors", including aluminium, copper, semiconductors, and pharmaceuticals. An additional 10% levy applies to exports from Brics countries (including Indonesia). Countries might also face anti-dumping duties, which are often steep, politically driven, and inconsistently applied. While these measures hurt US importers and consumers the most, they also significantly heighten uncertainty for exporters. By guaranteeing that Indonesia will not face tariffs exceeding 19% on its exports to the US through 2029, its new agreement with the US seems to mitigate this uncertainty, providing a level of protection against Mr Trump's tariff escalations. Indonesia can now rest assured that it will not face the kinds of extreme tariffs to which China has been subjected. Indonesia's government argues that such a deal was essential because even though the US accounts for only 9.9% of Indonesia's total exports, the trade relationship is disproportionately important. Indonesian exports to the US -- including apparel, footwear, furniture, rubber products, and integrated circuits -- are labour-intensive, they note, and thus support a substantial number of jobs. But these sectors may remain vulnerable to higher tariffs. As it stands, it is not clear whether the 19% cap applies to all Indonesian exports, or if some products -- particularly those containing Chinese inputs -- could still be subject to steeper duties. In any case, 19% tariffs are very burdensome, and Indonesia has also agreed to impose no tariffs on US goods. At best, the deal reduces losses; it does not deliver gains. Moreover, to secure this dubious victory, Indonesia reportedly agreed to purchase 50 Boeing aircraft and commit to importing US$15 billion (484.8 billion baht) worth of US energy products (nearly 40% of Indonesia's total energy imports) and $4.5 billion worth of American agricultural products. But many important questions remain unanswered. How will these purchases be financed, and on what terms? What are the specifications, unit costs, and delivery timelines? Who will oversee procurement, and how will transparency be ensured? Most importantly, if these exchanges are merely political gestures, they could turn out to be economically damaging. The use of jets from Boeing, which has faced a string of quality and safety scandals in recent years, could create considerable risks for Indonesia's airlines. And imports of US agricultural goods risk undercutting local farmers and breaching commitments to the Association of Southeast Asian Nations, as well as other trade agreements. The deal might affect Indonesia's trade relationships in other ways. Indonesia has concluded comprehensive trade agreements with several major partners, including Australia, China, India, Japan, New Zealand, and South Korea. It is close to finalising one with the European Union, and it recently launched negotiations with the United Arab Emirates. If US firms are granted preferential treatment and zero-tariff market access, these partners might question Indonesia's commitment to fair competition -- or demand comparable terms. Beyond trade, the agreement risks eroding Indonesia's carefully maintained strategic neutrality. Indonesia has long sought to balance its relationships with the US and China, but this deal could be seen as a lurch towards the US, exposing the country to escalating pressure to choose a side. As Indonesia becomes increasingly politically entangled with one giant -- with far-reaching economic and strategic consequences -- it is at risk of becoming economically dependent on the other. Over the past decade, Indonesia's trade with China has more than doubled, reflecting deepening economic ties. While Indonesia exports mostly commodities and processed metals to China -- especially nickel, iron and steel, mineral fuels, and vegetable oils -- it imports high-value machinery, electrical equipment, vehicles, and plastics from the country. In the face of challenging trade relations with the world's two mightiest powers, Indonesia's government deserves credit for seeking trade assurances. But the deal that it secured with the US lacks clarity, transparency, mutuality, and strategic vision. As a result, it may turn out to be largely symbolic, bringing only a slight reduction in short-term costs. In the long term, it might prove economically and even geopolitically damaging. Three urgent steps can help prevent this outcome. First, Indonesia's government must demand full clarity from the US on the 19% tariff cap: are all its exports shielded from Trump's sector-specific classifications, or is the real cost of the deal hidden in the fine print? Second, the authorities should publish the full details of their procurement commitments, particularly the purchase of Boeing aircraft and US agricultural and energy products, so that these commitments' financial implications and strategic value can be assessed. Finally, Indonesia must reaffirm a long-term trade strategy anchored in diversification, rules-based agreements, and regional leadership. Above all, it needs a strategy that avoids excessive dependence on any single partner and preserves its autonomy in an increasingly polarised global economy. Only then can Indonesia ensure that a handshake in Washington does not become a handcuff at home. ©2025 Project Syndicate
Hindustan Times
9 hours ago
- Business
- Hindustan Times
China's Xi Gives Up Air Miles for More Time at Home
Chinese leader Xi Jinping isn't quite the frequent flier he used to be. People are wondering why. The most well-traveled leader in China's history has reduced his international journeys in recent years, easing a once-packed diplomatic schedule that had honed his reputation as a globe-trotting statesman. Xi traveled to 10 countries across four overseas trips in 2024, and five nations over three trips in the first half of this year, compared with his average of visiting about 14 countries a year between 2013 and 2019, and a 20-nation peak he set in 2014. Since resuming foreign travel in 2022 after a 32-month pause during the Covid pandemic, he has yet to match the peripatetic pace he set during his first two terms in power. Xi and his wife Peng Liyuan disembarked from a plane in Bali, Indonesia, in 2022. This month, Xi skipped an annual summit of the Brics bloc of emerging nations after participating in the past 12 meetings—the second time in two years that he missed a major international gathering where he had been a fixture. Both times he sent Premier Li Qiang, one of Xi's top lieutenants, to represent Beijing. Meanwhile, a China-European Union summit originally set to take place in Brussels this year was moved to Beijing after Chinese officials signaled to EU counterparts that Xi had no plans to visit Europe this year, according to a person with knowledge of the matter. Xi is scheduled to meet EU leaders in Beijing on Thursday when they visit for the summit. Chinese officials haven't explained why Xi chose not to travel for these events, or commented on his reduced foreign visits. China's Foreign Ministry didn't respond to a request for comment. Some analysts say Xi, 72, may be dialing back his travels to devolve some of the many responsibilities he wields as leader, particularly as he grows older and approaches the end of his third five-year term as Communist Party chief in 2027. 'Xi is increasingly willing to delegate the operational bits of foreign policy to his trusted interlocutors,' said Dylan Loh, an assistant professor at Singapore's Nanyang Technological University who studies China's diplomacy. Xi may be doing so to better manage his energy, given his age, and to prioritize domestic issues as Beijing grapples with persistent economic headwinds such as weak consumer demand, according to Loh. 'China is certainly not taking its eyes off foreign policy,' Loh said. 'But it seems to me that Xi is now content with exercising broad strategic direction and while selectively choosing his trips abroad.' Since taking power in 2012, Xi has used his foreign excursions to expand China's economic and political reach around the globe—and stamp his mark as a world leader. These trips have often come with promises of infrastructure investment and deeper trade ties, aimed at positioning Beijing as a benign partner and strategic counterweight to Washington. More recently, China is also trying to capitalize on what many see as a U.S. retreat from global leadership, marked by President Trump's moves to cut foreign aid, sideline multilateral institutions and impose tariffs on adversaries and allies alike. Xi has sought to cast China as a responsible power and a source of stability, using a mix of political, economic and soft-power tools to reshape global narratives in Beijing's favor. To that end, Xi has stayed active on the diplomatic circuit—as a host. China lifted its Covid border controls in late 2022, and foreign leaders have been traveling there at a frequency similar to prepandemic levels. In 2023, Xi hosted at least 74 visits by foreign heads of state and government, as well as de facto leaders, according to a Wall Street Journal review of Chinese Foreign Ministry disclosures. The count, which includes repeat visits by some leaders, rose to 84 last year, compared with the average of about 76 trips that Xi hosted annually between 2013 and 2019. Xi has welcomed leaders from more than a dozen countries so far this year, including Australia's prime minister, who visited Beijing this month. Xi is expected to host more foreign counterparts visiting China later this year to attend diplomatic summits and a military parade. Xi's lieutenants have picked up the slack in foreign travel. Li, during his first full year as premier in 2024, journeyed abroad at a pace similar to that set by his predecessor, Li Keqiang, before the pandemic. Li Qiang traveled to 13 countries last year, matching the number that Li Keqiang visited in his most prolific year in 2014. Another frequent flier is Liu Jianchao, a veteran diplomat and chief of the Communist Party's International Department, which handles relations with foreign political parties and socialist states. A candidate for foreign minister, Liu has traveled more often than his predecessor did since getting the job in 2022, including trips to the U.S. and other Western democracies that past International Department chiefs generally hadn't visited. As China's leader, Xi has embarked on more than 50 international trips and visited more than 70 countries, far surpassing what his predecessors did. He has also hosted visiting world leaders more frequently than previous Chinese heads of state or recent U.S. presidents, according to data collated by Neil Thomas, a fellow at the Asia Society Policy Institute. The Covid pandemic kept Xi in China between 2020 and 2022. During that time, he mostly relied on phone calls and videoconferencing to engage with foreign counterparts. When he restarted international travel in late 2022, Xi first visited nearby countries in Asia before venturing further in subsequent trips. Xi's evolving travel patterns drew attention in the fall of 2023, when he skipped a summit of the Group of 20 advanced and developing economies that India was hosting. He sent Premier Li instead. Chinese officials didn't say why Xi missed an event where he had been a regular participant. China had typically been represented by its president at G-20 summits since the bloc began arranging leader-level meetings in 2008. In early July, when Xi skipped the Brics summit, Li filled in at the meeting in Brazil, where Xi had gone just seven months earlier to attend a G-20 summit and conduct a state visit. Diplomats and analysts say that Xi's decision to skip a Brics summit is notable given his efforts to boost the relevance of multilateral groupings where China holds greater sway, compared with institutions such as G-20, which Beijing has portrayed as too beholden to the U.S. The Brics group—named after its early members of Brazil, Russia, India, China and South Africa—has presented itself as a multilateral counterweight to a U.S.-dominated world order. 'Physical stamina is a precious political resource, and Xi knows it. As Xi grows older, he is carefully managing his travel to preserve his strength,' said Thomas, the fellow at the Asia Society Policy Institute. 'Skipping the Brics summit in Brazil likely had less to do with geopolitics and more with jet lag. A 48-hour round-trip for a two-day meeting just was not worth the physical toll.' Write to Chun Han Wong at
Mint
12 hours ago
- Business
- Mint
China's Xi gives up air miles for more time at home
The most well-traveled leader in China's history has reduced his international journeys in recent years, easing a once-packed diplomatic schedule that had honed his reputation as a globe-trotting statesman. Xi traveled to 10 countries across four overseas trips in 2024, and five nations over three trips in the first half of this year, compared with his average of visiting about 14 countries a year between 2013 and 2019, and a 20-nation peak he set in 2014. Since resuming foreign travel in 2022 after a 32-month pause during the Covid pandemic, he has yet to match the peripatetic pace he set during his first two terms in power. Xi and his wife Peng Liyuan disembarked from a plane in Bali, Indonesia, in 2022. This month, Xi skipped an annual summit of the Brics bloc of emerging nations after participating in the past 12 meetings—the second time in two years that he missed a major international gathering where he had been a fixture. Both times he sent Premier Li Qiang, one of Xi's top lieutenants, to represent Beijing. Meanwhile, a China-European Union summit originally set to take place in Brussels this year was moved to Beijing after Chinese officials signaled to EU counterparts that Xi had no plans to visit Europe this year, according to a person with knowledge of the matter. Xi is scheduled to meet EU leaders in Beijing on Thursday when they visit for the summit. Chinese officials haven't explained why Xi chose not to travel for these events, or commented on his reduced foreign visits. China's Foreign Ministry didn't respond to a request for comment. Some analysts say Xi, 72, may be dialing back his travels to devolve some of the many responsibilities he wields as leader, particularly as he grows older and approaches the end of his third five-year term as Communist Party chief in 2027. 'Xi is increasingly willing to delegate the operational bits of foreign policy to his trusted interlocutors," said Dylan Loh, an assistant professor at Singapore's Nanyang Technological University who studies China's diplomacy. Xi may be doing so to better manage his energy, given his age, and to prioritize domestic issues as Beijing grapples with persistent economic headwinds such as weak consumer demand, according to Loh. 'China is certainly not taking its eyes off foreign policy," Loh said. 'But it seems to me that Xi is now content with exercising broad strategic direction and while selectively choosing his trips abroad." Since taking power in 2012, Xi has used his foreign excursions to expand China's economic and political reach around the globe—and stamp his mark as a world leader. These trips have often come with promises of infrastructure investment and deeper trade ties, aimed at positioning Beijing as a benign partner and strategic counterweight to Washington. More recently, China is also trying to capitalize on what many see as a U.S. retreat from global leadership, marked by President Trump's moves to cut foreign aid, sideline multilateral institutions and impose tariffs on adversaries and allies alike. Xi has sought to cast China as a responsible power and a source of stability, using a mix of political, economic and soft-power tools to reshape global narratives in Beijing's favor. To that end, Xi has stayed active on the diplomatic circuit—as a host. China lifted its Covid border controls in late 2022, and foreign leaders have been traveling there at a frequency similar to prepandemic levels. In 2023, Xi hosted at least 74 visits by foreign heads of state and government, as well as de facto leaders, according to a Wall Street Journal review of Chinese Foreign Ministry disclosures. The count, which includes repeat visits by some leaders, rose to 84 last year, compared with the average of about 76 trips that Xi hosted annually between 2013 and 2019. Xi has welcomed leaders from more than a dozen countries so far this year, including Australia's prime minister, who visited Beijing this month. Xi is expected to host more foreign counterparts visiting China later this year to attend diplomatic summits and a military parade. Xi's lieutenants have picked up the slack in foreign travel. Li, during his first full year as premier in 2024, journeyed abroad at a pace similar to that set by his predecessor, Li Keqiang, before the pandemic. Li Qiang traveled to 13 countries last year, matching the number that Li Keqiang visited in his most prolific year in 2014. Another frequent flier is Liu Jianchao, a veteran diplomat and chief of the Communist Party's International Department, which handles relations with foreign political parties and socialist states. A candidate for foreign minister, Liu has traveled more often than his predecessor did since getting the job in 2022, including trips to the U.S. and other Western democracies that past International Department chiefs generally hadn't visited. As China's leader, Xi has embarked on more than 50 international trips and visited more than 70 countries, far surpassing what his predecessors did. He has also hosted visiting world leaders more frequently than previous Chinese heads of state or recent U.S. presidents, according to data collated by Neil Thomas, a fellow at the Asia Society Policy Institute. The Covid pandemic kept Xi in China between 2020 and 2022. During that time, he mostly relied on phone calls and videoconferencing to engage with foreign counterparts. When he restarted international travel in late 2022, Xi first visited nearby countries in Asia before venturing further in subsequent trips. Xi's evolving travel patterns drew attention in the fall of 2023, when he skipped a summit of the Group of 20 advanced and developing economies that India was hosting. He sent Premier Li instead. Chinese officials didn't say why Xi missed an event where he had been a regular participant. China had typically been represented by its president at G-20 summits since the bloc began arranging leader-level meetings in 2008. In early July, when Xi skipped the Brics summit, Li filled in at the meeting in Brazil, where Xi had gone just seven months earlier to attend a G-20 summit and conduct a state visit. Diplomats and analysts say that Xi's decision to skip a Brics summit is notable given his efforts to boost the relevance of multilateral groupings where China holds greater sway, compared with institutions such as G-20, which Beijing has portrayed as too beholden to the U.S. The Brics group—named after its early members of Brazil, Russia, India, China and South Africa—has presented itself as a multilateral counterweight to a U.S.-dominated world order. 'Physical stamina is a precious political resource, and Xi knows it. As Xi grows older, he is carefully managing his travel to preserve his strength," said Thomas, the fellow at the Asia Society Policy Institute. 'Skipping the Brics summit in Brazil likely had less to do with geopolitics and more with jet lag. A 48-hour round-trip for a two-day meeting just was not worth the physical toll." Write to Chun Han Wong at
The Citizen
16 hours ago
- Business
- The Citizen
Brics bloc slows down on de-dollarisation
Member countries made no new decisions on launching its own currency at the recent summit in Brazil. The technical, political and logistical hurdles of launching its own medium of exchange remain huge. Picture: Mika Otsuki / The Yomiuri Shimbun via AFP) Member countries of the Brics trading bloc seem to have backed down from their rather lofty ideal of establishing their own currency to counter the dominance of the US dollar and the euro, choosing to slow down the process by focusing on growing cross-border trade in national currencies – for now. Commentators noted that current economic and geopolitical uncertainties may have contributed to the new cautious approach while US President Donald Trump's trade war certainly led to it by pitting the US against everyone else. Although the creation of a Brics currency featured prominently at the 2024 Brics Summit in Kazan, Russia, it has become clear that ambitions for an immediate launch have cooled. Russian President Vladimir Putin, who once led the charge for de-dollarisation, appeared on stage at the summit holding what seemed to be a prototype Brics banknote, dubbed the Unit. Now even Putin has softened his tone, stating that the bloc's goal was not to break away from the US-dominated SWIFT (Society for Worldwide Interbank Financial Telecommunications) financial system entirely but rather to reduce the dollar's 'weaponisation' and promote the use of local currencies for trade between the Brics members. ALSO READ: 'Trump is talking from the past': US president 'might regret' warning to Brics over dollar Since discussions around a new global reserve currency began in earnest during the 14th Brics Summit in 2022, progress has largely been rhetorical. Putin then said the Brics countries were ready to issue a new reserve currency backed by a basket of Brics currencies. Brazil's President Luiz Inácio Lula da Silva echoed this vision in 2023, but hopes of a major announcement at that year's summit failed to materialise. The latest summit, held in July 2025 in Rio de Janeiro, took a more measured tone. While the idea of launching a Brics currency – potentially backed by gold – remains on the table, there is no timeline for its implementation. Brazil, which holds the rotating presidency of the group this year, confirmed that no significant decisions on a new currency are imminent. Still, efforts to reduce reliance on the greenback continue. ALSO READ: 'They can find another sucker!': Trump warns Brics countries against replacing dollar The final declaration of the summit runs to 31 pages and outlines extensive plans to deepen cooperation across a range of issues, from global institutional reform and AI development to climate change and logistics infrastructure. The document reaffirms the bloc's commitment to using national currencies in cross-border trade and promoting financial systems independent of the US dollar, including the further development of the Brics Pay platform and consolidation of the Brics New Development Bank (NDB). The goal is clear: shift away from dollar dominance without destabilising global markets or member states' economies. ALSO READ: Analysts say Trump's bid to weaken Brics will fail as US influence declines Trump The return of Donald Trump to the White House on 20 January 2025 has added a new layer of complexity. Markets reacted immediately. The dollar strengthened and currencies such as the Chinese yuan, Russian ruble, Brazilian real, Indian rupee and SA rand depreciated sharply in the days following Trump's election and subsequant inauguration. While these initial losses were later reversed, the shock underscored the power the US still holds in global finance – and why Brics nations may be hesitant about provoking unnecessary volatility by launching a competing currency. Trump's renewed 'America First' rhetoric and ongoing trade disputes with China, Russia and other countries have reinforced the sense among Brics nations that economic resilience requires diversification. But even with this motivation, the technical, political and logistical hurdles of launching a shared Brics currency remain huge. The Atlantic Council, a grouping of US organisations that support the Atlantic Alliance, points out that the dollar continues to dominate the global financial system, as it is used in about 88% of currency trades and comprises 59% of all central bank reserves. While the share of world trade conducted in dollars has gradually declined, the dollar remains entrenched as the world's primary reserve and settlement currency. ALSO READ: Trump victory: Trouble for the rand and Brics allies, joy for crypto Patience In a report by the International Institute for Middle East and Balkan Studies (IFIMES), Advisory Board member and retired Romanian army general Corneliu Pivariu, offered a frank analysis of the summit's outcomes. He characterised the July 2025 Brics meeting as 'a turning point', and said there is potential to accelerate the process of de-dollarisation and the consolidation of a multipolar economic order. Yet he acknowledged that the movement remains cautious. 'The summit reflects the consolidation of Brics as an alternative, but cautious pole, without radical steps. The event marks a shift from ideological rhetoric to practical measures for building economic, financial, and technological autonomy,' said Pivariu. He noted that the summit took place against a backdrop of stagnating Western economic growth, the prolonged Russia-Ukraine war, rising tensions in the Middle East, and accelerating industrial development across Asia. ALSO READ: It's official: Brics welcomes new members to partnership Other 'more significant' moves While the Brics bloc reaffirmed its commitment to reforming global institutions such as the United Nations, International Monetary Fund, and the World Bank, Pivariu says the bloc's more significant moves involve promoting independent payment systems, developing internal supply chains, and pursuing technological cooperation aimed at achieving medium-term autonomy. 'The 2025 Brics meeting will consolidate the trend of diversifying global economic and financial relations, offering member states and partners an alternative to dollar hegemony. 'Through energy and resource agreements, Brics will reduce its members' exposure to sanctions imposed by the USA and EU,' he said. He warned, however, that the West is taking notice. 'The US and the EU have expressed concerns regarding the accelerated de-dollarisation process, fearing the loss of global financial influence and the shift of trade flows towards Brics platforms,' Pivariu said in the report. He added that Europe may need to adjust its energy and industrial strategies to mitigate the risk of being edged out of key markets, especially in the Southern Hemisphere. ALSO READ: Brics bank approves over R20 billion in loans for South African infrastructure projects Idea to infrastructure It is becoming clear that Brics members are moving away from sensational headlines and emotional announcements towards the less glamorous and more practical tasks of building infrastructure to promote systems for financial and physical trade. Pivariu said the summit's emphasis on cross-border systems, local currency settlement, and digital payment integration shows that the member countries understand their limitations, but are 'willing to play the long game'. 'While a gold-backed Brics currency might grab attention, the immediate reality is that increasing the use of national currencies in trade, establishing sovereign payment rails, and strengthening institutions like the NDB offer far more practical benefits for now. 'The Brics strategy seems to be about laying the groundwork for autonomy rather than attempting to topple the dollar overnight,' Pivariu said. 'The summit confirmed that technological and industrial partnerships are becoming a strategic pillar of the bloc. 'In the medium term, Brics aims to create an integrated internal market and transform itself into a major global industrial-technological actor.' This ambition, if realised, would represent the most meaningful step yet toward a multi-polar world, with or without a shared Brics banknote. This article was republished from Moneyweb. Read the original here.
TimesLIVE
a day ago
- Business
- TimesLIVE
Brics would end quickly if they 'ever form in meaningful way': Trump
US President Donald Trump on Friday repeated his threat to slap a 10% tariff on imports from members of the Brics group of developing nations and said the group would end very quickly if they ever formed in a meaningful way. 'When I heard about this group from Brics — six countries, basically — I hit them very, very hard. And if they ever really form in a meaningful way, it will end very quickly,' Trump said without naming the countries. 'We can never let anyone play games with us.' Trump also said he was committed to preserving the dollar's global status as a reserve currency and pledged to never allow the creation of a central bank digital currency in America. Trump announced the new tariff on July 6, saying it would apply to any countries aligning themselves with what he called the 'Anti-American policies' of the Brics group. With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive 'America First' approach of the US president, the Brics group is presenting itself as a haven for multilateral diplomacy.
