Global Economy News
LAST UPDATE: June 11, 2025
China, Africa ask US to return to ‘right track’ on trade differences
China and 53 African Union members jointly urged the U.S. to resolve trade disputes through dialogue, not unilateral tariffs.
Insight
The broad multilateral appeal reflects alignment between China and African nations resisting U.S. tariff measures announced on April 2. It reinforces China’s diplomatic reach and readiness to offer zero-tariff deals to African partners. Such collective pressure challenges U.S. trade tactics and may influence shifting alliances in global trade. The statement underscores growing solidarity among trading partners affected by protectionism.
US, China Officials Agree on Plan That Awaits Xi, Trump Sign‑Off
U.S. and Chinese negotiators reached agreement on a trade framework in London to ease export controls and rare-earth restrictions, pending sign-off from Presidents Trump and Xi.
Insight
Securing an implementable framework marks the most significant progress since the Geneva truce of April. Including provisions on rare-earths and semiconductors, it aims to stabilize supply chains and reduce trade friction. The requirement of presidential approval indicates both sides retain leverage, signaling cautious optimism. The initiative suggests a potential thaw in U.S.–China tensions contingent on follow-through.
China calls for more contacts with US after ‘candid’ trade talks
Reuters
Following candid negotiations, China’s Vice Premier He Lifeng urged greater communication and consensus-building with the U.S. to maintain progress on current trade agreements.
Insight
The call for “more contacts” signals Beijing’s desire to sustain momentum from London. By emphasizing transparency and dialogue, He sets expectations for a new, regularized engagement channel. This reflects China’s interest in framing the truce as durable and institutionally supported. It also underlines the evolving diplomatic tone behind recent trade detente.
ECB, China’s central bank renew cooperation agreement
The ECB and the People’s Bank of China updated their 2008 memorandum, agreeing to enhanced technical cooperation, data-sharing, and ongoing dialogue.
Insight
Reviving this agreement renews a framework for macroprudential coordination and financial stability measures. It reflects deepening institutional ties amid global financial uncertainty and evolving monetary regimes. The cooperation could facilitate joint research on digital currencies and cross-border payments. It also sends a signal of mutual strategic interest in banking stability across EU–China relations.
Gold overtook euro as global reserve asset in 2024, ECB says
The ECB reported that gold became the second largest global reserve asset in 2024—20% of official reserves—surpassing the euro’s 16%.
Insight
Central banks added record volumes of gold—over 1,000 tonnes—for the third consecutive year, reflecting concerns over dollar dependency and financial sanctions risk. Surpassing the euro shows a shift towards tangible reserves in times of geopolitical strain. Gold’s appeal arises from its liquidity and zero counterparty risk—key in post-Ukraine and de-dollarisation context. This trend may reduce incentives to hold euros and reinforce calls for diversification in reserve portfolios.
EU Ready for Second Attempt at Australia Trade Deal, Envoy Says
The EU ambassador to Australia, Gabriele Visentin, stated that Brussels is prepared to re-launch negotiations for a comprehensive free trade agreement.
Insight
Rebooting talks reflects EU strategy to hedge against rising U.S. tariff risks and diversify trade links in Asia-Pacific. A deal with Australia offers access to critical markets, boosting sectors like agriculture and services. It signals EU’s proactive global trade diplomacy amid geopolitical realignment. The move also aligns with broader European interest in reinforcing regional trade resilience and securing strategic partnerships.
Five nations and EU urge Trump not to impose new airplane tariffs
The EU, along with Canada, Japan, Australia, and Brazil, have urged the Trump administration to refrain from imposing additional tariffs on large commercial aircraft.
Insight
The collective diplomatic push underscores global concern that new tariffs on aircraft parts could destabilize key supply chains and prompt retaliatory measures. Manufacturers such as Boeing and Airbus would be directly impacted. This multi-nation coalition illustrates coordinated pressure to maintain WTO dispute mechanisms rather than unilateral action. The moment reflects rising anxiety over protectionism’s spillover into strategic manufacturing sectors.
May was world’s second-hottest on record, EU scientists say
Scientists at Copernicus, the EU’s Earth observation agency, reported that May 2025 was the second warmest May on record, surpassed only by May 2023.
Insight
The finding reinforces ongoing trends of global climate warming driven by anthropogenic emissions. The temperature spike has implications for agriculture, biodiversity, and extreme weather risk. As climate targets tighten, EU policymakers are likely to intensify pressure on decarbonization strategies. This milestone underscores the urgency of translating climate warnings into concrete action worldwide.
