Tuesday, December 6, 2022
Compiled by Chris Devonshire-Ellis
The signs are clearly pointing to Russia sanctions blowback as Russia’s PMI Index is now 6 points higher than the EU and trade elsewhere is booming. The Ukraine situation is having the effect of spreading Russia-centric trade away from the West and into the Middle East, Central Asia, and China just as jam oozes out of a soft-pressed doughnut. That is impacting trade relations elsewhere as the CIS nations’ trade increases, Afghanistan starts to talk business and Mongolia gets closer to China. Georgia is looking to South Korea to access East Asia, Turkiye is offering export incentives and Vietnam is looking to connect Hanoi to Ho Chi Minh City by fast-speed rail. Chinese and Russian hands are all over Eurasian development with clear implications for developing supply chains.
To obtain a complimentary subscription to these briefings please click here.
China-Mongolia: Bilateral Trade, Investment, and Future Prospects
The state visit of the Mongolian President Ukhnaa Khurelsukh marks a new height in China-Mongolia relations. As the two countries plan the development of their cooperation against the background of the COVID-19 pandemic and global uncertainties, we discuss their existing bilateral trade and investment relations. China has been Mongolia’s top investment source and trade partner for 18 consecutive years, while Mongolia is an active member of the Belt and Road Initiative.
Vietnam’s Rail Network: Slow Train Headed for Fast-Track?
Last month, Vietnam’s Ministry of Planning and Investment floated the idea of a north-south high-speed railway connecting Hanoi and Ho Chi Minh City. There are two plans on the table: one, a 250-kilometer-per-hour freight and passenger service; or two, a 350-kilometer-per-hour passenger-only service. Even with the slowest of the two options, travel times between the two cities could be cut to a fraction of the current 32-plus hours it currently takes on the Reunification Express.
Afghanistan In Talks With China To Re-Establish Old Silk Road Trade Routes
Afghanistan’s Industry and Commerce Minister, Nooruddin Azizi, has been holding trade and investment talks with Beijing and called for China to speed up its efforts for reopening of the Silk Road trade routes, and specifically the Wakhan Corridor. This Afghan valley route at the Eastern end bisects China and Tajikistan and connects China with Afghanistan via a 98 km wide strip of land at the China end.
Tajikistan Unveils 2023-2037 Green Development Policy
The Green aspect is part of a drive to prioritize further the greater diversity and competitiveness of Tajikistan’s national economy, which also calls for wider digitalization, intensive industrialization, application of innovative technologies and human development, and ensuring sustainable and qualitative national economic development.
COMMONWEALTH OF INDEPENDENT STATES
Russia-Commonwealth of Independent States Trade Up 6.8% In 9M 2022
The Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan and Uzbekistan. It is not a Free Trade Group with common tariff and duty agreements between all members, but rather acts as a looser conglomerate whereby members agree to specific bilateral trade agreements between each other, allowing for a more flexible approach. Collectively, the CIS has a GDP (PPP) of US$5.5 trillion and a population of 239 million. GDP per capita (PPP) is estimated to be US$22,500 – about double that of China.
Turkey’s Pre-financing Project for Exporters
This is good news for Turkish-based manufacturing exporters, as Turkey’s exports reach record highs. The Turkish Minister of Trade has stated “Our exports continued the momentum that they had gained last year in the first 10 months of 2022 and reached the highest monthly export value as it does every month.” Imports increased by 31.9% to rise to US$29.3 billion in October.
Georgia & South Korea To Begin Work On A Free Trade Agreement
A joint feasibility study on a free trade agreement between Georgia and South Korea has confirmed that the deal would have a positive impact on the economic welfare of both countries. An FTA would open up a Free Trade Area including access to much of Eurasia and South East Asia.
Russia’s Purchasing Managers Index In Fastest Rise Since 2017
Russian manufacturing firms recorded their fastest rate of growth last month in almost six years due to new export orders and increased demand from domestic customers, according to a business survey published by S&P Global. This is a clear indicator that Western sanctions have backfired: Russian business recovery and optimism is now 6% higher than the European Union.
2022 Russia-Brazil Bilateral Trade Reaching Record Highs
Trade volumes between Brazil and Russia are on track to reach a record high of US$10 billion by the end of 2022, according to Rodrigo Baena Soares, Brazil’s Ambassador to Russia. “Some US$10 billion is projected by the New Year,” he said, adding that Brazil “purchases a lot of fertilizer and fuel, and it exports a great deal of soybeans, and moreover, it exports equipment and sugar to Russia.”
China’s Belt and Road & Beyond
A global media roundup of all the latest international news, analysis, and opinion from the BRI.
Dezan Shira & Associates provide business intelligence, market research, legal, tax and compliance issues for foreign investors throughout Asia, and have 28 offices across the region. We are members of the Leading Edge Alliance, a network of related firms with offices throughout the world. For assistance with Belt & Road Initiative research, please contact us at email@example.com or visit us at www.dezshira.com. To subscribe to our Belt & Road Initiative portal, please click here.
Previous Article « China-Mongolia: Bilateral Trade, Investment, and Future Prospects
Next Article Saudi Arabia – China Ties: Several Investment Agreements, MoUs Signed During President Xi’s Visit »
Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. With its team of lawyers, tax experts, auditors and...
Doing Business in China 2023 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates in...
With businesses continuously affected by the COVID-19 pandemic and other economic headwinds, financial health and compliance has become more important than...
Tax, Accounting, and Audit in China 2022/23 offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or...
China remains the world’s hottest market for several industries, with high prospects for growth, innovation, and investment. Alongside the optimistic...
A firm understanding of China’s laws and regulations related to human resources and payroll management is absolutely necessary for foreign businesses in...
Dezan Shira & Associates helps
businesses establish, maintain,
and grow their operations.
Stay Ahead of the curve in Emerging Asia. Our subscription service offers regular regulatory updates,
including the most recent legal, tax and accounting changes that affect your business.