International News 30/12
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Thailand Receives Formal Invitation to Become a BRICS Partner Country
Thailand has received an invitation from Russia to become a partner country of BRICS, which could potentially lead to full membership in the group. The Thai government has confirmed its positive response to the invitation in a letter from the Foreign Minister to the Russian Foreign Minister. Joining BRICS is seen as an important step for Thailand in its journey towards becoming a full member. By becoming a partner, Thailand aims to strengthen its relations with BRICS members and gain access to enhanced economic development opportunities. The partner status is also expected to enhance Thailand's role in building relationships with other developing countries and create a more favourable system of relationships for economic growth.
Retaliation Continues, China Extends European Brandy Antidumping Investigation
The Ministry of Commerce of the People's Republic of China has announced its decision to extend the duration of its anti-dumping investigation into brandy from the European Union by a period of three months. The investigation, initially set to be completed within a year, was launched on 5 January. The extension to 5 April is due to the complexity of the investigation. The ministry did not provide further details in its statement. Reuters reports that investigations can usually be extended by up to six months under special circumstances. In October, the ministry imposed provisional measures on EU brandy imports, citing preliminary findings that showed the dumping of EU brandy posed a threat to the Chinese sector. This development is expected to have a significant impact on prominent French brands such as Hennessy and Remy Martin. The investigation is widely believed to be in response to France's support for EU tariffs on Chinese-made electric vehicles. The measures implemented by China require Chinese importers to pay a security deposit of nearly 40%, which increases the cost of importing brandy from the EU.
World Bank Raises China's Economic Growth Projections for 2024-2025
The World Bank has revised its growth projections for China's economy, with an upward adjustment for both 2024 and 2025. However, the Bank has also issued a warning that factors such as sluggish household and business confidence, as well as issues in the property sector, will continue to exert downward pressure on the economy in the coming year. This year, China has faced challenges due to the property crisis and weak domestic demand. The potential impact of expected US tariff hikes on Chinese goods under the new administration could also affect growth. The World Bank has identified the following as key to achieving a sustainable recovery: addressing challenges in the property sector, strengthening social safety nets, and improving local government finances. While China's gross domestic product (GDP) is expected to grow by 4.9% this year, the forecast for 2025 indicates a growth rate of 4.5%, although this is still higher than the forecast for 2025. The government of China is confident in achieving its economic growth target of around 5% this year.
World Bank Raises China's GDP Projections for 2024-2025
The World Bank has revised its economic growth projections for China in 2024 and 2025, indicating a slight increase in GDP growth compared to previous estimates. However, the institution also highlighted challenges that could hinder economic recovery, such as weak consumer and business confidence and issues in the property sector. The possibility of tariff increases by the United States under the leadership of President-elect Donald Trump is also seen as a potential obstacle to growth. To foster a sustainable recovery, it is recommended to address challenges in the property sector, strengthen social safety nets, and improve local government finances.The World Bank emphasised the importance of balancing short-term support for economic growth with long-term structural reforms.Despite these challenges, recent policy easing and strong short-term export performance are expected to support China's economic growth in the coming years, with the Chinese government itself having set a growth target for the economy.