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Business Times
16 hours ago
- Business
- Business Times
China consumer inflation unchanged amid anti-price war campaign
[BEIJING] China's consumer prices held steady in July as deflationary pressures eased on the back of a government pledge to contain excessive competition. The consumer price index was unchanged from a year earlier, the National Bureau of Statistics said on Saturday (Aug 9). The median estimate of economists surveyed by Bloomberg was for a 0.1 per cent decline. Inflation ended a four-month falling streak in June, turning positive. Factory deflation persisted into a 34th month, with the producer price index falling 3.6 per cent, matching June's decline. Price wars are intensifying deflationary pressures in China, where consumer demand remains fragile. The government has launched campaign to curb the cutthroat competition among businesses that's eroded profits and driven down wages the world's second-biggest economy. China's top leadership vowed at its monthly gathering in late July to ramp up management of overcapacity in key industries but faces a challenge in reflating the economy, and more aggressive efforts to boost domestic demand may be necessary. The state's campaign also seems to have had little effect on people's perceptions, with the price expectation index, based on a central bank survey of households, in decline since late last year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up A broad measure of prices across the economy, known as the GDP deflator, has declined for nine straight quarters, its longest streak in decades. Resilient demand for Chinese goods overseas has helped the economy hold up surprisingly well in the face of US tariffs, but industrial profits are deteriorating as companies struggle to pass on rising costs to consumers, given weak spending power and poor sentiment. Fierce rivalry at home, fuelled by excess industrial capacity, has driven exporters to slash prices to boost sales, drawing sharp criticism from abroad and deepening trade frictions. The Communist Party's decision-making Politburo, led by President Xi Jinping, listed the goal of addressing 'disorderly competition' among companies as one of its top priorities when it set the economic policy agenda for the rest of the year at its meeting last month. 'The big picture would remain the same – there is still a long way to go before the economy escapes deflationary pressures,' said Eric Zhu, economist for Bloomberg Economics. 'Policymakers are recognising that 'fixing disorderly competition' is key to addressing the roots of deflation – and more steps may follow.' Xi issued a call in July to 'break involution,' using a term for a destructive state of intense competition sparked by excess capacity that forces people to overwork despite diminishing returns. The president has also questioned the need for local governments to crowd into the same emerging industries, such artificial intelligence and vehicles powered by alternative-energy sources. BLOOMBERG
Business Times
3 days ago
- Business
- Business Times
Thai Airways shares soar to seven-year high after earnings jump
[BANGKOK] Thai Airways International's shares climbed to the highest level in almost eight years after the state-controlled airline reported that net income for the second quarter soared nearly 39-fold from a year earlier. The carrier rose as much as 10.5 per cent on Friday (Aug 8) to the highest intraday level since October 2018, extending its weekly gains to almost 340 per cent. Its market value has reached more than 407.5 billion baht (S$16.2 billion), making it the fifth-largest carrier in Asia, according to data compiled by Bloomberg. Thai Airways's shares resumed trading on Monday for the first time in five years. The company in June exited a court-supervised debt rehabilitation as the post-Covid travel demand boom enabled it to achieve an earnings turnaround and sell new shares to raise capital. The flag carrier's second-quarter net income surged to 12.1 billion baht from 306 million baht a year earlier on lower finance costs and several one-off items, including a gain from termination of aircraft lease agreements. Revenue rose to 51 billion baht, a 14 per cent jump from a year earlier. Thai Airways' cost-cutting programme and declining fuel prices have given the carrier strong financials for now, according to Eric Zhu, an aviation and defence industry analyst at Bloomberg Intelligence. However, the slump in Thai tourism could weigh on the carrier in the future, he said. 'One has to wonder if they can sustain growth this year given the bleak tourism outlook,' Zhu said. Its resumption of trading marked the airline's return to normal business operations after it had accumulated more than 400 billion baht of debt in the lead up to the pandemic that ravaged the global travel industry. BLOOMBERG
Mint
25-07-2025
- Business
- Mint
Thailand-Cambodia Border Clash Kills Nine Civilians
(Bloomberg) -- A long-simmering border dispute between Thailand and Cambodia blew up Thursday as military operations escalated rapidly — with reports of F-16s, missiles, and artillery strikes across their shared frontier — resulting in the deaths of at least nine civilians. Both Southeast Asian nations accused the other of starting the clashes, which were reported at six locations and follow a build up of tensions since a Cambodian soldier was killed in an exchange of gunfire in May. Thailand said its fighter jets hit two Cambodian army bases near the border on Thursday, while Thai army reported that rockets fired from Cambodia killed several civilians, citing provincial authorities. The fatalities included an 8-year-old child, and 14 others were injured. The number of casualties on the Cambodian side remains unclear. Follow The Big Take daily podcast wherever you listen. Bangkok said in a statement that it's prepared to 'intensify' self-defense measures if Cambodia continues its attacks. Cambodia Prime Minister Hun Manet has asked the UN Security Council to convene an urgent meeting, citing Thailand's 'extremely grave aggressions.' Both the US and China sent advisories to their citizens about the clash, with Beijing saying it was deeply concerned over the attacks. Cambodia lacks air assets to counter Thailand's advanced jets, Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote in a note, but the country possesses Chinese-made KS-1C air defense systems. 'The dispute is escalating rapidly and could turn into a serious conflict if left unattended,' said Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore. 'Although the conflict is unlikely to spread beyond the two countries, it will disrupt trade and people movement, which will negatively affect the regional economy.' Thailand's baht and stocks fell on reports of clashes as they could further dent the outlook for an economy that's already reeling from the threat of a 36% US tariff on its exports. The baht, which earlier rose to its highest since February 2022, declined as much as 0.4% to 32.285 per dollar. Stocks declined 1%. The neighbors have a long history of border tensions, although relations have remained largely stable since the 2011 conflict, which left dozens dead. The last major flare-up centered on the Preah Vihear temple, a longstanding point of contention dating back to French colonial rule. Much of the contemporary border disputes between the neighbors stem from different maps based on the text of the Franco-Siamese treaties of early 1900s that laid out the boundaries between Thailand and Cambodia, which was then part of the French Indochina. Thailand also ordered the evacuation of civilians from at least four border provinces as a precautionary measure, the Interior Ministry said, while its embassy in Phnom Penh advised citizens to leave the country. Cambodia's defense ministry spokesperson Maly Socheata condemned the Thai military action, saying Thailand's use of heavy weapons and deployment of troops 'to encroach on Cambodian territory is a clear violation' of international law. Since the clash in May, both countries have massed troops along the frontier and limited land crossings that serve as vital trade routes. The fighting Thursday came just hours after Thailand expelled Cambodia's ambassador and recalled its own envoy from Phnom Penh in response to a landmine explosion that injured five Thai soldiers on Wednesday. In retaliation, Cambodia further downgraded diplomatic ties by withdrawing its diplomats, and requesting that Thailand do the same, according to Cambodian state media. The dispute has also shaken Thailand's domestic politics. A court has suspended Prime Minister Paetongtarn Shinawatra pending an investigation into allegations of ethical misconduct in her handling of the border issue. Paetongtarn had attempted to defuse tensions in a phone call with former Cambodian leader Hun Sen, but the call was leaked, sparking backlash at home and protests demanding her resignation. She has until July 31 to submit her defense in the court case. After the clash in May, Cambodia called for the International Court of Justice in The Hague to help resolve four disputed land areas. Thailand, however, said it does not recognize the court's jurisdiction in the matter. Following a landmine incident last week in which a Thai soldier lost his leg, Thailand has initiated a diplomatic campaign targeting Cambodia. Bangkok has briefed foreign military attachés and diplomats stationed in the country and is seeking action under the United Nations' Anti-Personnel Mine Ban Convention, while also engaging in bilateral efforts to resolve the dispute. --With assistance from Jon Herskovitz. (Corrects year in 10th paragraph to show there were more than one treaty.) More stories like this are available on
Business Times
02-07-2025
- Business
- Business Times
Chinese tourists crown Vietnam, sideline Thailand
[SINGAPORE] Chinese tourists are reshaping travel trends in South-east Asia, with Vietnam and Malaysia gaining ground while Thailand, the traditional hot spot, is seeing visitor growth stall amid currency swings, safety concerns and China's economic headwinds. For more than a decade, Chinese tourists have been the backbone of South-east Asia's tourism engine, filling hotels, malls and tour buses. But the long-awaited post-pandemic rebound is proving uneven, raising warning signs for some countries and cheers in others. During the first six months of 2025, foreign tourist arrivals in Thailand were down 4.2 per cent from the corresponding period in the previous year, with 16 million tourist arrivals, according to a recent announcement by Thailand's Ministry of Sports and Tourism. A major drag came from the slowdown in Chinese visitors, who accounted for just under 14 per cent of Thailand's total arrivals in the first five months of 2025. That marks a sharp drop from about 28 per cent in 2019 before the pandemic and 19 per cent in 2024, based on data from the Bank of America. On the other hand, Vietnam has emerged as an unexpected winner. Chinese arrivals to the country surged more than 78 per cent in the first quarter of 2025 from the same period last year, surpassing Thailand by about 200,000 visitors as tourists flocked to luxury resorts and beaches in popular coastal areas Da Nang and Nha Trang. 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 Thailand received nearly twice as many Chinese travellers in 2024 as its coastal neighbour. 'This might be the first time Thailand has been outpaced by another South-east Asian rival,' Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote on Jun 24. Vietnam led the region in overall tourism growth in the first four months of 2025, with arrivals up 23.8 per cent, while Malaysia came in second with 10.5 per cent growth on the year. Meanwhile, Indonesia experienced a 5.6 per cent rise, while the Philippines and Thailand recorded declines of 0.8 per cent and 0.3 per cent, respectively. Currency shifts, safety woes Currency shifts are part of the story, with the Chinese yuan falling 10.5 per cent against the Thai baht over the past year. This has diminished Thailand's longstanding allure as an affordable destination for Chinese tourists, wrote Zhu and Ferguson. By contrast, the yuan has appreciated against the Vietnamese dong and the Indonesian rupiah, offering Chinese travellers a spending boost in these countries. But the region's reputation as a whole has also taken a hit amid rising safety concerns. A kidnapping involving a Chinese actor in Thailand in January, as well as a March earthquake, have painted a less rosy portrait of China's southern neighbours, such as Laos, Cambodia and Thailand, which have already been battling reputations as hot spots for illegal activity. Meanwhile, relatively safer alternatives, including Japan and South Korea, have witnessed Chinese arrivals surge, with Japan reporting a 68 per cent rise in early 2025, while Chinese travel to South Korea similarly increased 10 per cent, Bloomberg Intelligence noted. Chinese woes While Malaysia, Vietnam and Singapore have seen upticks in Chinese arrivals, the numbers pale in comparison to pre-Covid Chinese visits to the region. Countries that have traditionally relied on mainland China as a significant driver of economic growth now face a double whammy as Chinese economic woes slow outbound travel, and external headwinds may push the remaining travellers into alternative markets. Most vulnerable are Malaysia and Thailand, where tourism accounted for around 14 per cent and 12 per cent of gross domestic product, respectively, in 2024. Hot spots such as Penang and Kuala Lumpur in Malaysia, and Bangkok and Phuket in Thailand, have traditionally been popular among Chinese tourists to the region. Grim economic prospects have also affected spending patterns among younger travellers from China, with a Bloomberg Intelligence survey of the country's travel sentiment noting that international travel budgets have fallen 23 percentage points from April last year. 'Younger travellers indicated greater caution about spending, likely a reflection of the tougher economic challenges they are facing,' the analysts wrote. 'Special forces travellers' Younger Chinese tourists, often calling themselves 'special forces travellers' on social media platforms, have opted for shorter, cheaper and more tightly packed itineraries. These travellers are spontaneous and driven by social media trends, making their habits harder to predict, said Chai Boon Sian, managing director and vice-president of international markets at On platforms such as Xiaohongshu or Douyin, for instance, seemingly random or everyday locations can attain viral popularity online as tourist attractions, such as an oddly colourful Maybank branch in Kota Kinabalu, Malaysia. 'Rather than the Merlion and the Petronas Twin Towers, we now see the Chinese chasing experiences in less-travelled places,' he said. Locations such as Cambodia, Brunei, Semporna in Malaysia, and Phu Quoc island in Vietnam have witnessed surprising demand, Chai told The Business Times. 'Before the pandemic, people travelled in large tour groups by the busloads. Now, younger Chinese travel in smaller groups and stay for shorter periods,' said Chai. This has made it difficult to forecast when a return to pre-pandemic volume within the region might happen, Chai noted. 'It's hard to say, given the changing travel preferences and group sizes,' he said. However, he expected the present slump to eventually rebound in the longer term. 'The sheer size of the Chinese population means that travel demand will remain strong, even with current economic headwinds.' Chai has observed a lasting shift in spending patterns that may spark hope for the tourism sector. 'Unlike older generations who budgeted carefully, the younger generation spend what they want,' Chai added. 'They're not afraid to spend first and figure out savings later.' Indeed, industry group World Travel and Tourism Council (WTTC) forecast that Chinese spending on international holidays would outpace pre-Covid-19 levels in 2025, after the country's reopening in 2024 fell short of spending forecasts by about 11 per cent. Rebound hopes The faltering demand for Chinese tourism is not something that local operators and governments are brushing aside; instead, they are taking concerted efforts to reboot demand from Asia's largest economy. The Tourism Authority of Thailand has initiated campaigns aimed specifically at attracting Chinese travellers to the kingdom. Its efforts include joint marketing campaigns with partners such as travel agencies and airlines. Meanwhile, the Thai tourism ministry has also planned tourist subsidies of up to 1.8 billion baht (S$70.6 million) to boost the country's attractiveness during the slow season. Private players are also working with governments to restore momentum. Last year, Singapore-based online travel agency tied up with Malaysia's tourism authority to draw more Chinese tourists to the country. Governments have also loosened visa requirements. Malaysia in April extended its visa-free policy for Chinese tourists visiting for up to 90 days by five years, having introduced the initiative in December 2023. The country reported about 3.3 million Chinese tourists arriving in 2024, up from 1.5 million in 2023. Likewise, Singapore in February 2024 exempted visa requirements for visits of up to 30 days for Chinese travellers. With higher populations of Mandarin speakers in the region, both Singapore and Malaysia have largely remained attractive to tourists due to linguistic familiarity, Chai explained. For this reason, service providers are starting to incorporate 'China-friendly' hospitality: from Mandarin-speaking staff and Chinese-style breakfasts in Vietnamese and Thai hotels, to retailers accepting Chinese payment services such as Alipay and having access to translation apps. 'Chinese tourists prefer familiar comforts,' Chai noted. Domestic travel booms Instead of venturing southward, an increasing number of Chinese tourists now opt for travel within the mainland. Less-expensive trips closer to home are becoming increasingly popular, including journeys by road and train, the WTTC found in an April report. Research by the council forecast that domestic travel spending will hit nearly US$1 trillion in 2025 in a 19 per cent jump from the previous year, as the country makes moves to boost domestic consumption through retail and tourism spending. Similarly, Bloomberg Intelligence's survey found that just 47 per cent of travellers had intentions to venture abroad in the third quarter – typically the most in-demand period for tourism. This was the lowest recorded figure across the last four quarters, wrote Zhu and Ferguson, while demand for domestic travel held steady at around 71 per cent.
Mint
23-06-2025
- Business
- Mint
Airlines Suspend Gulf Flights as War Disruptions Reach Dubai
Major global airlines extended flight cancellations to the Persian Gulf, disrupting air traffic to critical hubs such as Dubai after the US struck nuclear sites in Iran and Tehran vowed to retaliate. Singapore Airlines Ltd. said it would suspend service to Dubai until Wednesday night and warned more flights could be scrapped. British Airways temporarily added cancellations for Dubai and Doha, while Dutch carrier KLM said it suspended flights to Dubai, Riyadh and Dammam in Saudi Arabia until further notice. The airlines' decisions highlight the potential for a widening of the war between Israel and Iran after US President Donald Trump joined the fight by attacking Iran's nuclear sites. The dramatic escalation risks retaliation, potentially disrupting economies that had previously been shielded from the fallout of regional hostilities. Sign up for our breaking news alerts for the latest developments on the Israel-Iran war. Dubai, home to Emirates, and Doha, the capital of Qatar and its namesake airline, are major travel hubs that handle much of the traffic within the Middle East and form a crossroads for long-haul travel between Asia, Europe and North America. They had avoided previous suspensions that were contained to countries surrounding Israel and the skies over nations where Iran's missiles pass. Prior to the US strikes on Sunday, Tehran threatened to hit US bases in the Persian Gulf should Washington get involved, and close down the Strait of Hormuz, a vital oil-trade waterway bordering with the United Arab Emirates and Oman. Qatar hosts the largest US base in the region, while Bahrain is home to the US Navy's Fifth Fleet. 'A widening conflict around the Strait of Hormuz could threaten to disrupt global airline traffic, particularly if flight restrictions to key transfer hubs in Qatar and the UAE were to occur,' Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote in a note. Excluding local carriers, Indian airlines including IndiGo, Turkish Airlines and British Airways are among the most exposed, they wrote. Shares of the major network carriers fell, including Air France-KLM, Deutsche Lufthansa AG and BA parent IAG SA in Europe. United Airlines Holdings Inc. and Delta Air Lines Inc. declined in US trading. Singapore Airlines has halted flights to Dubai from the city-state since Sunday over security concerns. British Airways diverted a Dubai-bound flight to Zurich after it reached Saudi Arabia's airspace in the early hours of Sunday, according to data from Flightradar24. Another jet returned to Heathrow after going as far as Egypt. The London-based carrier earlier halted routes to Bahrain through the end of the month due to operational constraints and airspace restrictions. With no clear view on next steps, some companies began to take precautions. Japan's biggest banks are considering evacuating employees, with Mitsubishi UFJ Financial Group Inc. beginning to pull out the families of staff. Japan's biggest bank has also halted unnecessary travel in and out of the region. Asian airlines have also taken steps to safeguard passengers and crews. Japan Airlines Co. plans to have flights between Tokyo's Haneda airport and Doha avoid airspace above the Persian Gulf and Gulf of Oman, adding about 20 minutes to journeys. Air India Ltd. will progressively avoid the use of certain airspace over the Persian Gulf in the coming days. The actions follow Trump's decision to undertake the US' first direct military action against Iran after decades of hostility, pushing the Middle East into uncharted territory. The possibility of further disruption will depend on how forcefully Iran retaliates. Trump has threatened more attacks if Tehran doesn't capitulate. Even before the US strikes, several American and European airlines had paused flights to the United Arab Emirates and Qatar after Israel started bombarding Iran. The skies over large swaths of the Middle East have been restricted several times during the past 20 months, making flying through Israel, Jordan, Lebanon, Syria, Iraq and Iran difficult. The closures have forced airlines to cancel flights on profitable routes, spend more on jet fuel and pass through countries they usually avoid like Afghanistan, as they avoid dangerous skies. It has also meant hundreds of disrupted flights and thousands of stranded passengers. Israel has started to allow outbound flights after halting them since its latest attacks on Iran starting June 13. Tel Aviv is expected to let about 1,000 passengers per day leave the country from Ben Gurion Airport and Haifa. The flights, which have a strict limit of 50 passengers per plane to prevent too many people from congregating and presenting a major target at the airport. The government will prioritize foreigners, diplomats and nationals needing to evacuate for life-saving or humanitarian reasons. The UK is organizing a chartered flight for British nationals who want to leave Israel, while Germany sent a military transport plane to extract citizens and France said it also plans repatriation flights. 'Everything depends on how long this lasts,' Ziad Daoud, chief emerging markets economist at Bloomberg Economics, said of the fallout from the flight cancellations. 'If there was a stoppage of flights for a day or two, there won't be an impact, but if this is a prolonged thing then obviously it's an issue.' Dubai airport deferred all queries to the emirate's media office who said the hub remains fully operational for the time being, with the vast majority of flights running on schedule. With assistance from Danny Lee, Siddharth Philip, Nicholas Takahashi, Mihir Mishra and Dan Williams. This article was generated from an automated news agency feed without modifications to text.
