Business
Coronavirus Outbreak Could Reduce China’s GDP by 1-2 Percent
Commentary
The short term economic impact from the rapidly spreading coronavirus that has infected nearly 600 and killed 18 could reduce China’s GDP by 1-2 percent, if it is similar to the 2003 SARS outbreak.
The World Health Organization called an Emergency Committee Meeting for Jan. 23 to address the potential pandemic risks associated with novel coronavirus, designated “2019-nCoV,” that through its fourth generation mutation can now spread via person-to-person transmission among close contacts such as in families or in health care settings.
Some coronaviruses don’t infect humans, others do but cause only minor illness, and some can cause severe illness in a high proportion of those infected. The coronavirus responsible for China’s 2003 outbreak of severe acute respiratory syndrome (SARS) sickened more than 8,000 people globally, and killed about 800.
The 2019-nCoV strain is believed to have originated in the Chinese city of Wuhan, but has officially been reported as spreading to Thailand, Japan, South Korea, Taiwan, Singapore, Vietnam, Canada, and the United States. But the contagion has probably been exported by thousands of travelers to dozens of countries. China is trying to limit the damage to its economy by quarantining train and air travel into and out of Wuhan, a city of 11 million that is larger than New York City. Officials have also quarantined nearby Huanggang and Ezhou in Hubei Province.
International confidence in China’s ability to stabilize the coronavirus outbreak is being undermined by its credibility in disclosing public health threats in the past. After the 2003 SARS outbreak, independent reporting forced China to admit dishonesty in under-reporting the scale of infections and deaths to the World Health Organization. China later admitted 5,327 probable SARS cases and 343 deaths, ten times its initial reporting.
An economic analysis by the Massachusetts Institute of Technology’s Center for International Development found that SARS had “significant negative impacts” to China’s economy. The tourism industry lost 50-60…
Business
EU’s Solar Initiatives in Southeast Asia Impacted by US-China Trade Tensions
中国拥有的太阳能公司在东南亚，尤其是泰国、越南、马来西亚和柬埔寨，正面临潜在的挑战和机遇。
Challenges for Chinese Solar Companies in Southeast Asia
Chinese-owned solar companies in Southeast Asia, especially in Thailand, Vietnam, Malaysia, and Cambodia, are encountering significant challenges. These nations are becoming crucial markets for solar energy; however, increased competition and regulatory hurdles are complicating their operations.
Regulatory Hurdles
Many Southeast Asian governments are implementing stricter regulations for foreign investments in renewable energy sectors. This development may hinder Chinese companies’ ability to navigate local laws and establish a strong foothold in these growing markets.
Market Competition
Beyond regulatory challenges, the competition among local and international solar companies is intensifying. To succeed, Chinese firms must innovate and adapt their strategies to meet regional demands while maintaining cost-effectiveness and securing partnerships with local entities.
Source : EU’s solar plans in SE Asia caught in US-China trade war
Business
Malaysia Launches ‘Luxury’ Durian Exports to China as Indonesia Eyes Market Opportunities
Malaysia has begun exporting fresh durian to China, targeting high-end consumers with 40 tonnes shipped in phases. China, the largest durian buyer, may eventually import from Indonesia pending compliance with standards.
Malaysia’s Fresh Durian Shipment to China
Malaysia has successfully sent its first shipment of fresh durians to China, aiming to capture the interest of a market largely supplied by Thailand and Vietnam. This shipment includes 40 tonnes released in three phases, as announced by Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup. China represents the world’s largest durian importer, having purchased 1.4 million tonnes last year, with a significant portion sourced from Thailand.
Emphasis on Quality
Malaysian exporters, having met China’s phytosanitary requirements, are focusing on the quality of their products rather than sheer volume. Lim Chin Khee from the Durian Academy states that Malaysian durians are considered luxury items, targeting high-end consumers. The first shipment of 20 tonnes has already reached the Zhengzhou Xinzheng International Airport, fetching prices that can reach 200 yuan (approximately $28) per fruit.
Indonesia’s Durian Prospects
Indonesia is also exploring opportunities in the Chinese durian market, with discussions surrounding compliance to China’s phytosanitary standards ongoing. As reported, Indonesian officials are eager to establish a protocol that could facilitate durian exports, considering the strong demand in China. Lynn Song from ING emphasizes that should these negotiations succeed, Indonesian durians could effectively carve a niche in the burgeoning market.
Source : Malaysia starts ‘luxury’ durian exports to China as Indonesia sniffs the market
Business
Vietnam’s Exports of Fruits and Vegetables to Thailand Surge by 70%
Thailand has become Vietnam’s fourth largest fruit and vegetable market, with exports rising significantly, particularly in durians, as Thailand faces supply shortages due to droughts.
Growth in Bilateral Trade
Thailand has risen to become Vietnam’s fourth-largest market for fruits and vegetables, according to recent customs data from the Vietnam Fruit and Vegetable Association. This shift from sixth place last year is largely attributed to increased demand, particularly for frozen durian. China continues to dominate as the top buyer, importing nearly $2.5 billion worth, a 25% increase.
Rising Imports and Export Dynamics
The United States and South Korea have also contributed to this growth, with imports from Vietnam surging by 31% and 51%, totaling $189 million and $188 million, respectively. Overall, Vietnam’s exports reached an estimated $4.6 billion, a 29% increase, as the country capitalizes on year-round durian cultivation.
Changing Trade Relationships
The trade landscape between Vietnam and Thailand has transformed significantly over the past decade. Thailand, once the leading supplier of fruits and vegetables to Vietnam, saw its imports drop to just $46.5 million in 2023. However, imports have surged 35% this year, reaching $32 million, with popular items including dates and mangosteens.
Source : Vietnam fruit, vegetable exports to Thailand rise by 70% – VnExpress International
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