The Brazilian government is working to strengthen cooperation among countries in the Global South through a program focused on inclusive and sustainable governance. A key challenge for Brazil is ensuring that new member countries are actively participating in the initiative. Additionally, the country aims to develop a payment system using local currencies instead of the US dollar in trade between nations.
https://en.mercopress.com/2025/01/02/brazil-takes-over-brics-rotating-presidency#commentsChina and Russia have agreed to collaborate on artificial intelligence (AI) technology, leveraging their respective strengths in areas such as finance, manufacturing, transportation, and quantum computing. This partnership aims to promote innovation and the application of AI globally. The collaboration is based on the complementary advantages of both countries, including technological research and innovation, as well as industrial applications and markets.
https://www.globaltimes.cn/page/202501/1326194.shtmlChina's economic growth is expected to face challenges due to weak consumer confidence, rising youth unemployment and geopolitical tensions, according to Jing Qian, co-founder of the Asia Society Policy Institute's Center for China Analysis. The country will also be closely watching US President Donald Trump's actions after his return to the White House on January 20, as a potential increase in tariffs could impact trade relations between the two nations. Additionally, China's relationship with Taiwan and its efforts to consolidate power at home under President Xi Jinping are expected to remain key issues in the new year, with implications for global markets.
https://channelnewsasia.com/asia/china-2025-challenges-trump-trade-taiwan-4834571China may be able to circumvent Donald Trump's tariffs by shifting production of goods such as bicycles to facilities in countries like Cambodia, India, Malaysia, Taiwan and Vietnam. This allows them to export the products directly to the US without paying a 25% tariff. The practice is seen as inflationary and does not benefit American companies, but rather reduces bilateral trade between the two nations. Chinese companies are also using tactics such as stripping out costs like intellectual property payments from their imports to lower the recorded value of trade.
https://www.rawstory.com/trump-china-tariffs/The Commerce Ministry in China has taken action against US companies, citing their actions as a threat to its sovereignty and territorial integrity. The move is part of an ongoing escalation in economic tensions between the two nations, which have led to the Biden administration imposing restrictions on 140 Chinese companies supplying dual-use items.
https://www.upi.com/Top_News/World-News/2025/01/02/punitive-measures-American-companies-Taiwan/2001735833009/U.S. Steel's acquisition by Nippon Steel is seen as a strategic move to enhance US national and economic security through investment in manufacturing and innovation from a close ally. The deal aims to combat China's competitive threat in the steel industry, according to U.S. Steel officials. They argue that this transaction sets a positive precedent for "friendshoring" investments, ensuring the long-term success of U.S. Steel, its employees, communities, and customers.
https://www.upi.com/Top_News/US/2025/01/01/nippon-steel-us-steel-governmental-veto/4121735780682/During a meeting between Pakistani Minister Aurangzeb and US Ambassador Donald Blome, they agreed to promote investment opportunities in Pakistan by engaging the Pakistani diaspora community. The two countries aim to enhance economic diplomacy and explore joint business ventures, with the US remaining Pakistan's largest trading partner and export destination. They also plan to share regular updates on macroeconomic data with stakeholders and the diaspora to encourage investment in Pakistan's growing economy. This comes after the IMF approved a $7-billion loan programme for Pakistan in July 2022, which is aimed at promoting stability and inclusive growth.
https://www.brecorder.com/news/40340733/eyeing-stronger-pakistan-us-ties-aurangzeb-advocates-diaspora-engagementThe Trump administration is facing a paradoxical challenge as it pursues both tariffs to strengthen the US dollar and a weaker dollar to make the country more competitive globally. While some tariffs may be aimed at negotiating new trade agreements, others could harm small businesses and economic growth. The administration's goal of weakening the dollar is expected to be hindered by the strengthening effect of tariffs, posing a challenge for President Trump and his team, including individuals such as Bessent. To achieve their objectives, the administration may need to focus on targeted tariffs related to national security issues.
https://www.foxnews.com/opinion/three-biggest-challenges-trump-face-trying-fix-bidens-mistakesthree-of-the-biggest-challenges-trump-will-face-trying-to-fix-bidens-mistakesDonald Trump's threat to impose higher tariffs on countries has raised concerns about its impact on India's economy. In a panel discussion with experts, including Neelkanth Mishra of Axis Bank and Soumya Kanti Ghosh of the State Bank of India, they discussed the potential effects of these policies on India's GDP growth, which hit an 18-month low at 5.4% in the second quarter. The experts noted that Trump's labelling of India as the "Tariff King" has sparked debate among Indian economists and policymakers about the implications of his tariff threats for the country's economy.
https://indiatoday.in/business/story/donald-trump-tariff-threat-impact-on-indian-economy-top-experts-discuss-global-trade-rupee-gdp-export-2658685-2025-01-02