US-China relations are likely to deteriorate under President-elect Donald Trump's return to office, despite both sides acknowledging that conflict would be detrimental and divert attention from domestic issues. In his second term, Trump plans to impose new tariffs on Chinese goods in an attempt to pressure China into a revised economic agreement. This move could lead to a managed decoupling of the US-China relationship, increasing the risk of global economic disruption and crisis.
https://www.scmp.com/opinion/china-opinion/article/3293836/trump-will-put-us-and-china-back-collision-course?module=top_story&pgtype=sectionThe US has been grappling with the negative impacts of tariffs imposed by President Donald Trump during his first term, which have led to increased costs for consumers and a decline in international trade. This protectionist approach is not unique to Trump, as previous presidents such as George W. Bush, Barack Obama, and Joe Biden have also implemented protectionist policies. Despite the overall benefits of free trade, it has been under attack due to concerns about job losses and unfair competition from countries like China. The US steel industry has been particularly affected by tariffs, with some companies benefiting while others struggle to compete. The use of automation in industries such as agriculture has also raised concerns about job displacement. China's protectionist policies have contributed to the decline of free trade, and its impact on global markets is a topic of ongoing debate. Populist arguments against free trade often focus on the perceived negative effects on domestic jobs, but experts argue that these claims are often exaggerated or based on flawed assumptions.
https://reason.com/podcast/2025/01/08/douglas-irwin-why-trumps-tariff-plans-are-dangerous/The global economy is facing concerns that US President-elect Donald Trump's tariff plan will lead to inflation, particularly if interest rates are forced to stay elevated due to higher consumer prices. This has led to a sell-off in bond markets worldwide and caused the yield on 30-year UK Treasury Gilts to reach its highest level since 1998. The eurozone inflation rate accelerated to 2.4% in December, making it difficult for the European Central Bank to cut interest rates to boost sluggish growth. Meanwhile, US services data showed a mixed picture, with the dollar rising against major rivals after initially falling back from earlier gains. Asian stocks closed higher due to speculation that Trump's tariff plans may be scaled back, following reports that his aides are considering applying tariffs only in certain critical sectors.
https://www.khaleejtimes.com/business/markets/inflation-concerns-pull-rug-out-from-wall-street-rallyThe US-led task force is targeting Russian officials and oligarchs with sanctions to isolate Russia internationally and pressure President Vladimir Putin to end his invasion. The effort focuses on those who have violated economic countermeasures imposed by the US and its allies, including export restrictions.
https://www.upi.com/Top_News/US/2025/01/08/DOJ-seize-sanctioned-oligarch-condos/6841736320053/Brazil, under President Luiz Inacio Lula da Silva, aims to strengthen cooperation between countries of the "Global South" during its presidency of BRICS. The group has expanded to include Iran, Egypt, Ethiopia and the UAE as full members. One objective is to develop alternative payment systems for trade among member nations, a move that drew criticism from US President-elect Donald Trump who threatened tariffs if they undermined the US dollar.
https://www.ndtv.com/world-news/brazil-announces-indonesia-entry-into-brics-7415947Malaysia and Singapore are strengthening their economic ties with the signing of several agreements, including the Johor-Singapore Special Economic Zone (JS-SEZ), which aims to enhance trade and talent development between the two nations. The JS-SEZ is one of six memoranda of understanding and a letter of intent signed by Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lee Hsien Loong, who are also celebrating 60 years of diplomatic relations this year. Bilateral trade between the two countries reached US$78.59 billion from January to November 2024, a 6.7% increase over the same period in 2023, making them each other's second-largest trading partners.
On January 7, 2025, several significant events took place globally. In Southeast Asia, Malaysia and Singapore signed a joint agreement to establish a special economic zone at the leaders' retreat in Johor. Meanwhile, Hong Kong eased its investment thresholds to attract more family offices. In other news, Indonesia officially joined the BRICS bloc as a full member, according to Brazil. In South Korea, investigators sought a new warrant to arrest President Yoon, while the Philippines vowed to remain vigilant on prices despite meeting its target. Former New York mayor Rudy Giuliani was held in contempt of court in a defamation case. Additionally, former US president Donald Trump hinted at imposing tariffs but did not specify how he would do so.
https://www.businesstimes.com.sg/international/hong-kong-eases-investment-thresholds-attract-family-officesMalaysia and Singapore have reached an agreement on a special economic zone in Johor, Malaysia, aimed at promoting investment and facilitating the movement of goods and people between the two countries. The plan was first proposed a year ago as part of their efforts to deepen economic ties.
https://www.manilatimes.net/2025/01/08/business/foreign-business/malaysia-singapore-announce-sez-deal/2032228Sardar Dr. Rashid Ilyas Khan, the president of The Centaurus Group, met with members of the Saudi Royal Family, including Prince Mansoor Bin Muhammad Saad Al Saud, to discuss investment collaboration between Pakistan and Saudi Arabia. The meeting aimed to foster mutual business opportunities and enhance bilateral economic ties. Sardar Dr. Rashid welcomed the Saudi delegation on behalf of Pakistan's business community, highlighting the deep-rooted brotherly relationship between the two nations. He assured the Saudi royals of Pakistan's commitment to creating a conducive environment for Saudi investments and strengthening trade partnerships.
https://www.thenews.com.pk/print/1269435-investment-collaboration-between-pakistan-saudi-arabia-discussed