Business

EU, China pledge for more trade

Published

1 year ago

16/01/2023

It is time to further cement ties, boost economic cooperation, experts say

Business people in China and the European Union have pledged to team up to push for more trade and investment relations amid geopolitical headwinds.

The European Union Chamber of Commerce in China, or EUCCC, which represents EU businesses operating in China, and the Chinese Chamber of Commerce to the EU, or CCCEU, which represents Chinese companies in the EU, held a business leaders roundtable in Brussels on Friday, the first such formal event since the CCCEU was founded in 2018.

Joerg Wuttke, president of the EUCCC and chief representative of BASF in China, said the two chambers are best placed to advocate smooth trade and investment relations, and said he hopes there will be no more tit-for-tat actions, without specifying whether he was referring to the China-EU Comprehensive Agreement on Investment. The agreement’s ratification was blocked by the European Parliament after the EU and China imposed tit-for-tat sanctions on each other in early 2021.

The agreement, if ratified, will address many of the market access concerns by EU investors in China and ensure more stable EU policy on Chinese investment in the EU.Both chambers have long supported the agreement.

Wuttke said he was glad to be able to travel outside China for the first time in three years.

“That’s very important because we need human touch in our business engagements,” he said. “We need our politicians to meet. We need to build trust at the high level.”

Wuttke called Chinese counterparts “comrade-in-arms”, saying “we are in the same business, we are in advocacy, we are agency for change, and we are trying to make the business environment in our respective regions better for us to conduct our business”.

Wuttke’s delegation ended a five-day tour in Europe on Friday, their first since February 2020 because of the pandemic. They met senior officials at the European Commission, the European Parliament and industry and business associations.

Xu Haifeng, chairman of the CCCEU, applauded the first in-person high-level event between the two chambers.

“It is our due responsibility to promote bilateral trade and address global challenges,” he said.

“As China and the EU are both advancing their green and digital transitions and economic modernization, there is great potential for cooperation to tap.”

Xu talked of positive news for 2023 such as China’s determination to continue to open up and modernize its economy and the rebound of economic activities after the easing of pandemic control restrictions. However, he warned of the mix of difficulties China and the EU face as a result of geopolitical conflict, energy price rises and supply chain disruptions.

The World Bank forecast last week that global economic growth will slow sharply this year, to 1.7 percent, with the 20-member eurozone economy stagnating and then growing 1.6 percent next year, while China’s economy is forecast to grow 4.3 percent this year and 5 percent next year.

“It is high time for China and Europe to further cement their economic and trade relations and work to jointly address the issues” that concern them both, Xu said.

In a report issued on Sept 30, the CCCEU said Chinese businesses in the EU recorded rapid growth despite headwinds but sentiment on the bloc’s business environment fell to a three-year low. The report urged the EU not to selectively decouple from China in targeted high-tech, digital and green sectors.

A similar position paper by the EUCCC last year made 967 recommendations for China.

The EU has tightened screening of Chinese investment in recent years, sometimes mimicking the US by playing up national security concerns.

Following the EU’s widespread restrictions on Huawei’s 5G as a result of heavy pressure from the US, Brussels is now facing another test as the US presses ASML of the Netherlands, the world’s top chip equipment manufacturer, to ban exports to China, a move both ASML and Dutch officials have questioned.

Zhonghua Xu, national chair of the EUCCC’s energy working group, said his group has built a dynamic ecosystem involving hundreds of Chinese and EU businesses, focusing on green hydrogen, offshore wind, energy storage and smart energy.

“We need to work with each other,” said Xu, who is also head of TotalEnergies R&D for Asia.

Zhang Hui, vice-president for Europe of the Chinese electric vehicle maker Nio, said his company has more than 1,000 partners in Europe, which gives his company huge market potential.

“We want to make our contribution to the Green Deal and Fit-for-55 in Europe,” he said, referring to the EU’s ambitious plans for climate neutrality by 2050.

CHEN WEIHUA in Brussels.

Source(s): China Daily

Business

Economy thrives, projects speed ahead despite challenges

Published

2 days ago

18/04/2024

Before President Dr. Mohamed Muizzu assumed office, the economic condition of the Maldives was significantly deteriorating. Experts attribute the primary reason for the depreciation of the Maldivian currency to the excessive printing of money by the previous administration.

According to statistics from the Maldives Monetary Authority (MMA), more than USD 518.04 million was printed over the last three consecutive years, marking a historic high compared to USD 388.53 million printed over 40 years.

Additionally, upon assuming office, President Muizzu inherited a heavy debt burden. The total debt amounted to over USD 7.71 billion, with a significant portion owed to companies for upcoming parliamentary elections and previously initiated projects, totaling USD 584.88 million.

Despite these challenges, President Muizzu has been proactive in rejuvenating the Maldives’ economic status. Within three months of his tenure, USD 35 million has been deposited into the sovereign development fund. The President estimates that more than USD 100 million will be deposited into the fund by the end of the year.

discontinuation of printing money has been regarded as a pivotal step towards economic progression for the Maldives

President Muizzu’s commitment to revitalizing the Maldivian economy without resorting to the printing of money is indeed a significant pledge. By discontinuing the practice of printing money, the government aims to address economic challenges while ensuring fiscal responsibility and long-term sustainability.

The decision to immediately halt the printing of money upon assuming office underscores President Muizzu’s determination to prioritize sound monetary policy. This move reflects an acknowledgment of the risks associated with excessive money printing, including inflation and currency devaluation, and signals a commitment to addressing these challenges through prudent financial management.

Furthermore, President Muizzu’s plans to boost the country’s prosperity and income by reducing reliance on loans and settling debts owed to both foreign and domestic entities demonstrate a holistic approach to economic revitalization.

attracting a vast pool of investors

The efforts of the present administration to attract a wide range of investors reflect a strategic approach to addressing the significant development needs of the Maldives. By engaging in investment forums both domestically and abroad, the government has been successful in showcasing the diverse investment opportunities available in the country.

The decision to host investment forums in countries like China and the UAE demonstrates a proactive approach to international investment promotion. These forums serve as platforms for highlighting the potential for investment in key sectors such as infrastructure, tourism, and hospitality. By creating awareness about these opportunities, the government aims to attract investors who are interested in contributing to the development of critical projects, including the establishment of bridges, domestic airports, and resorts.

Over 500 projects underway

The continuation of 527 projects, including those that faced interruptions due to non-payment to companies during the government transition, underscores the commitment of President Muizzu’s administration to ensure continuity and progress in ongoing initiatives. Despite the challenges encountered, efforts have been made to address issues such as delayed payments and optimize project expenses to keep important projects on track.

It’s notable that the current year’s budget, initially approved by the prior administration, may not have fully aligned with President Muizzu’s priorities and rules for project implementation. This misalignment may have resulted in some projects not receiving adequate budget allocations or not being included in the budget at all. However, the administration has taken steps to optimize expenses and prioritize projects that align with President Muizzu’s vision for development

Initiatives to enhance economic growth and foster sustainable growth

The International Monetary Fund (IMF) has recognized President Muizzu’s initiatives as some of the strongest implementations seen among world leaders, emphasizing their potential for substantial progression. The IMF applauded the government’s decision not to overdraw the government’s account and expressed its readiness to provide any assistance needed. This endorsement from the IMF underscores the effectiveness of President Muizzu’s economic policies and strategies.

Additionally, the Maldives National Chamber of Commerce and Industries has voiced support for the government’s initiatives, recognizing them as favorable for the Maldivian future as a growing economy. Despite challenges such as a shortage of dollars for small businesses, the Chamber remains optimistic that the government’s decisive actions will lead to economic growth and stability in the value of the dollar.

The government has projected a 5.5 percent economic growth rate for this year, indicating confidence in the trajectory of the economy under President Muizzu’s leadership. Furthermore, President Muizzu revealed a significant reduction in the country’s primary debt balance, from USD 103.61 billion last year to USD 8.68 million in the current year. This reduction in debt, achieved within just four months, demonstrates the government’s commitment to fiscal responsibility and its ability to effectively manage the country’s finances.

Overall, these developments indicate that the government’s economic rejuvenation efforts have been successful, earning the confidence of global financial institutions in the Maldives’ future economic prospects.

Source(s): PsmNews

Business

Council to issue 14 plots in Hanimaadhoo for tourism development

Published

5 days ago

15/04/2024

Haa Dhaalu atoll Hanimaadhoo island council has announced a 50-year lease on 14 plots from the island for tourism development purposes.

In the announcement put on gazette by the council, it has opened bid opportunity for interested bidders to lease the plots from Hanimaadhoo’s tourism zone.

The council has announced lease of 5,000 square feet plots for a 50-year lease period, for which interested proponents are required to register for the bids before 13:00hrs on April 30th, 2024.

For proponents wishing to mail the bid registration form, they can mail it to info@hanimaadhoo.gov.mv.

Proponents must furnish a bid registration, non-refundable, fee of MVR 1,000 for the 5,000 square feet plots. If proponents wish to acquire more than one plot, then they must pay MVR 1,000 per plot.

If the council annuls the announcement, it said the registration fees will be refunded to the proponents, and added the proponents will receive bid books upon registration.

Bid acceptance and opening are scheduled for April 30th, 2024 as well.

While the Hanimaadhoo International Airport is under an expansion project, the island has been putting efforts to increase its local tourism activities as well.

During his last month visit to Hanimaadhoo, President Dr. Mohamed Muizzu said the airport’s expansion will contribute towards increased tourism activity in the island.

He also said sustainable development cannot be achieved without individual development of key regions which include Hanimaadhoo as well.

Source(s): sun.mv

Business

Maldives signs with Chinese firm for Laamu Integrated Maritime Hub Project

Published

1 week ago

12/04/2024

Agreements pertaining to the Laamu Integrated Maritime Hub Project have been signed with a Chinese company, aiming to accomplish the commitments made by President Dr. Mohamed Muizzu. The contract laying groundworks for this transformative endeavor was signed by the Chief Executive Officer (CEO) of Maldives Ports Limited (MPL) Mohamed Wajeeh and the General Manager of CAMC Engineering Li Wei Wei.

Outlined within the agreement are details of six subprojects:

Launching offshore bunkering services
Developing a cruise terminal
Establishing a super yacht marina
Developing Gaadhoo as an Eco-resort
Establishing a facility to store regionally produced food items
Building a transshipment port

Providing insight into the developmental project, CEO Wajeeh underscored MPL’s ongoing efforts to secure a relevant market. He envisioned attracting international shipping lines to the transshipment port, anticipating a significant economic boost from even a single shipping line. Discussions are also underway with cruise operators to initiate cruise terminal operations.

MPL disclosed proposals from two companies to assist in providing bunkering services. While Vitol Bunkering, currently involved in developing bunkering facilities in Haa Alif Atoll, is one of them, the second company expressing interest hails from Dubai.

The establishment of a commercial port and a harbor including logistics is a commitment outlined in the governments’ manifesto.

Source(s): PsmNews