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EU, China pledge for more trade

FI

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1 year ago

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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

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Business

MTCC reports staggering 82.9% net profit drop

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2 days ago

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01/05/2024

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Maldives Transport and Contracting Company (MTCC) has reported a staggering 82.9% net profit decline for Q1-2024.

According to MTCC, it earned just MVR 5.2 million in net profit for the review quarter, which came down from MVR 30.8 million in the last quarter of 2023.

The company’s revenue for Q1-2024 stood at MVR 664.4 million, which is a 15.8% drop from MVR 789.2 million generated in the Q4-2023.

Moreover, MTCC reported a whopping 94.5% decline in its Gross Profit for the review quarter, registering MVR 2.5 million in Q1-2024 compared to MVR 44.3 million.

The operating profit for the review quarter stood at MVR 41.8 million, which is a 26% drop from MVR 56.5 million in Q3-2023.

The net asset value per share dropped from MVR 227.95 in Q4-2023 to MVR 226.98 to Q1-2024, while earnings per share saw a notable decline from MVR 3.83 in the preceding quarter to just MVR 0.65 in the review quarter.

Source(s): sun.mv

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Business

STO opens showroom in Hulhumale’

FI

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1 week ago

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24/04/2024

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State Trading Organization (STO) has opened a showroom specialized for construction in Hulhumale’.

The showroom was inaugurated by Construction Minister Dr. Abdulla Muthalib during a special ceremony held on Tuesday night.

Speaking at the ceremony, STO’s Managing Director Shimad Ibrahim stressed the role of the company’s former managements and board members in carrying forward the company and therefore extended them gratitude.

Situated at the same location as STO’s Hulhumale’ shop – next to STO’s Smart Store near Hulhuamle’ Hospital – the construction solutions showroom was opened following renovations up to modern standards.

STO reports that all construction-related products sold by the company will be available at the showroom including some of the most renowned brands sold by the company; Makita tools, Nippon paint and concrete from prominent mix designing brands among others.

The state-owned company is prominent in the local construction industry as STO’s constructions solutions is the largest importer and seller of construction-related products in the Maldives.

STO noted that customers can now place orders for construction-related products including Makita tools and Nippon paint via the Hulhumale’ showroom which would eliminate the need to travel to Male’ to make the purchases. Arrangements have been made in the showroom to prepare the colors of Nippon paint ordered by the customers on demand.

Henceforth, they attributed the opening of the new showroom as something which would bring easements to the lives of Hulhumale’ residents and construction industry partners operating in the suburb.

Source(s): sun.mv

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Business

Economy thrives, projects speed ahead despite challenges

FI

Published

2 weeks ago

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18/04/2024

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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

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