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South China Morning Post
3 days ago
- Business
- South China Morning Post
Asean-GCC-China partnership can kick-start shift away from US-centric trade
When the leaders of Asean, the Gulf Cooperation Council (GCC) and China gathered for an inaugural summit in Kuala Lumpur last week, it marked a historic convergence – the three economic powerhouses represent over 2 billion people and a combined economy of nearly US$25 trillion. Advertisement Emphasising deeper cooperation in trade, supply chains, infrastructure and finance, the summit's key areas of focus included green energy, the digital transformation, connectivity and sustainable agriculture to address climate change and food security. This trilateral partnership aligns with China's Belt and Road Initiative , leveraging the consumer markets of the Association of Southeast Asian Nations, the GCC's energy wealth and China's manufacturing and technological prowess. With Asean-China trade worth US$1 trillion and GCC-China trade of over US$288 billion last year, the summit underscored a collective ambition to foster regional stability and economic globalisation, with vast potential for trade expansion. It is also a transformative opportunity to reduce their reliance on the US market by diversifying supply chains and focusing on complementary strengths, enhanced connectivity, trade agreements and regional production in critical sectors. First, Asean's resources, the GCC's financial clout and China's manufacturing dominance constitute complementary strengths that can forge a robust supply chain ecosystem. Raw materials such as Indonesia's nickel and Malaysia's palm oil complement China's manufacturing capacity, while the GCC's sovereign wealth funds, worth a collective US$5 trillion, can finance critical projects. Advertisement Cooperation has begun. In April, the Qatar Investment Authority and sovereign wealth fund Danantara Indonesia announced a joint US$4 billion fund to invest in renewable energy, healthcare and technology in Indonesia. A practical model could see Asean supplying raw materials for China's electric vehicle battery production with GCC funding.
South China Morning Post
5 days ago
- Business
- South China Morning Post
Deloitte China launches global office to help mainland clients navigate trade tensions
Deloitte China will set up a new global office, increase headcount and invest in technology to support its mainland Chinese clients' global expansion plans while helping them navigate geopolitical tensions, according to its new boss. Advertisement 'The current US-China tariff dispute presents a golden opportunity for Chinese companies to truly go global,' said Dora Liu, who took over as CEO of Deloitte China for the next four years on Sunday. 'We see a trend of Chinese companies now expanding to Southeast Asia, the Middle East and Central Europe.' She is the first woman to lead Deloitte China, taking over from Patrick Tsang, who has become a senior partner of the firm. Mainland Chinese companies are increasingly seeking new supply chains and new markets amid the US-China trade war. The dispute escalated after US President Donald Trump on April 2 introduced the so-called 'reciprocal tariffs' on imports from China and other countries, but a temporary 90-day truce last month considerably reduced the tit-for-tat tariffs on both sides. 03:01 US appeals court allows Donald Trump's tariffs to stay in effect US appeals court allows Donald Trump's tariffs to stay in effect The US Court of International Trade in Manhattan ruled on Wednesday against Trump's move to impose punitive tariffs on the nation's trading partners, saying the president overstepped his authority, but analysts said the uncertainties surrounding the trade disputes were a concern. Advertisement Liu said these uncertainties would bring new opportunities. She planned to establish a global office at Deloitte China, involving dozens of regional and global partners and staff to help multinational clients and mainland Chinese companies achieve their global goals.
Reuters
27-05-2025
- Business
- Reuters
ASEAN unveils strategic plan to integrate its economies
KUALA LUMPUR, May 27 (Reuters) - The Southeast Asian bloc ASEAN on Tuesday announced an ambitious strategic plan that includes harmonising trade standards and greater financial integration in an effort to collectively become the world's fourth-largest economy. The five-year, 41-page plan for the 10-member Association of Southeast Asian Nations, released during a leaders' summit in Malaysia, calls for increased regional trade, freer movement of businesses and people, enhanced transparency and regulatory practices and sustainable mining, industry and farming policies to attract foreign investment. The plan said ASEAN countries - Indonesia, Thailand, Malaysia, Vietnam, the Philippines, Singapore, Cambodia, Laos, Myanmar and Brunei - must deepen their economic integration, pursue energy security, boost transport connectivity and strengthen supply chains. "Carrying on with business as usual will not suffice for this highly dynamic economic region," the plan said. "For ASEAN to become the fourth-largest global economy by 2045, countries in the region will need to deepen their economic integration and enhance their agility to address multifaceted challenges." The document identified several challenges for ASEAN's economic integration ranging from geopolitical tensions, shifting trade flows and technological transformation to climate change impacts and demographic shifts. Formed in 1967 initially as five members, ASEAN established an economic community in 2015 with the aim of integrating its economies and boosting the region's global standing. But despite rapid growth of its members economies in recent years and a collective GDP of $3.8 trillion, integration has been slow, with huge differences in its members' economies, political systems, population sizes and development levels, and no central authority to ensure compliance with ASEAN agreements and initiatives. The strategic plan said ASEAN's Economic Community Council would be be responsible for implementing the strategies while the ASEAN secretariat would monitor implementation. The ongoing tariff war between the United States and China and steep U.S. tariffs on Southeast Asian countries has created urgency for ASEAN to move towards regional integration faster, said Tricia Yeoh, Associate Professor of Practice at the University of Nottingham Malaysia. Yeoh said ASEAN countries must recognise the greater collective value of unified negotiations rather than pursuing bilateral agreements on their own. 'ASEAN needs to demonstrate efficacy in order for it to remain relevant. If they can't even achieve negotiating over Myanmar or the code of conduct with China on the maritime issue, people will question ASEAN's purpose,' she said, referring to two thorny political issues within the bloc.
South China Morning Post
10-05-2025
- Business
- South China Morning Post
As EU scrutinises US trade deal with Britain, China is the ‘elephant in the room'
European officials are studying a trade deal announced between the United States and Britain on Thursday for signs of how US President Donald Trump may cajole them into adopting tougher policies on China. Advertisement Sources from the EU and its member states said the text showed that Trump wanted to ensure America's allies would work to cut Beijing out of important supply chains, namely steel and pharmaceuticals. China is not named in the agreement, but it is alluded to throughout. 'The language in this agreement on alignment with the US on forced labour, data security, economic security, and investment bans can only be read as China being the elephant in the room,' said Sam Goodman, senior policy director at the China Strategic Risks Institute, a British think tank. Britain agreed to 'promptly meet US requirements on the security of the supply chains of steel and aluminium products intended for export to the United States and on the nature of ownership of relevant production facilities', the text read, in what observers saw to be references to Chinese ownership in the industry. The document seeks to bind Britain to 'ensuring the security of supply chains, using appropriate measures, of products intended for export to the United States' for sectors that are subject to Section 232 investigations now or at future points. Such an investigation is currently under way in the pharmaceutical sector. 01:00 Trump justifies 'China tariffs' as US effort to curb 'greatest job theft in the world' Trump justifies 'China tariffs' as US effort to curb 'greatest job theft in the world' Henry Gao, a professor specialising in international trade at Singapore Management University, suggested that the deal's China focus would be a running theme as countries around the world scrambled to avoid tariffs.
