Asia Pacific News
LAST UPDATE: May 16, 2025
India's April trade deficit widens to over $26b
Reuters
India's trade deficit expanded to $26.42 billion in April 2025, driven by a decline in exports and a rise in imports. US tariffs on Indian goods have contributed to this imbalance.
Insight
The widening deficit reflects vulnerabilities in India's trade dynamics, exacerbated by global protectionist policies. Strategic trade negotiations are crucial to mitigate these challenges.
India Central Bank Board Considers Change to Capital Framework
Bloomberg
The Reserve Bank of India is reviewing its Economic Capital Framework, which dictates the surplus funds transferred to the government. This reassessment may impact fiscal planning and monetary policy.
Insight
Adjustments to the capital framework could influence India's fiscal stability and the central bank's autonomy, highlighting the delicate balance between monetary policy and government financing needs.
Vietnam faces the heat over Chinese tariff ‘backdoor’ to US
FT
Vietnam is under scrutiny for allegedly facilitating Chinese goods' entry into the US market to circumvent tariffs. The US has imposed high tariffs on Vietnamese exports, pressuring Vietnam to tighten trade practices.
Insight
This situation places Vietnam in a challenging position, balancing relations with both the US and China. Strengthening trade compliance is essential to maintain economic partnerships and avoid punitive measures.
China urges a 'more fair' business environment in France
AFP
Chinese Vice Premier He Lifeng has called for a fair and predictable business environment in France amid ongoing trade tensions, particularly concerning tariffs on electric vehicles and brandy.
Insight
China's appeal underscores the need for equitable trade practices and may influence future negotiations, aiming to ease bilateral tensions and foster mutual economic growth.
China warns Panama ports deal firms to 'proceed with caution'
AFP
China has issued a warning to companies involved in Hong Kong conglomerate CK Hutchison's sale of Panama Canal ports, urging them to "proceed with caution" and highlighting potential legal consequences if the deal proceeds without Beijing's approval.
Insight
This move reflects China's intent to maintain influence over strategic global infrastructure and signals its readiness to assert legal authority over overseas transactions involving Chinese firms.
Trade War Has Chinese Suppliers Offering Cheaper Goods to Europe
Bloomberg
In response to U.S. tariffs, Chinese suppliers are redirecting excess goods to Europe, offering them at lower prices. This influx is causing concerns in the EU about market saturation and the potential impact on local industries.
Insight
The redirection of Chinese goods to Europe highlights the interconnectedness of global trade and the unintended consequences of protectionist policies. The EU may need to consider measures to protect its markets while maintaining fair trade practices.
Malaysian minister more hopeful after trade talks with US
Reuters
Malaysian Trade Minister Tengku Zafrul Aziz expressed optimism after discussions with U.S. Trade Representative Jamieson Greer during the APEC summit. The talks focused on reducing tariffs and enhancing trade relations, with particular attention to sectors like aerospace and semiconductors.
Insight
Positive developments in Malaysia-U.S. trade relations could bolster Malaysia's economy and strengthen bilateral ties. However, the outcome will depend on the successful negotiation of mutually beneficial agreements.
