China trade may bring new investment in Brazil

2017 ◽  
Keyword(s):  
Latin America ◽  
Natural Resources ◽  
Bilateral Trade ◽  
Value Added ◽  
Short Term ◽  
Trade Surplus ◽  
Domestic Activity ◽  
Content Type ◽  
Economic Relations ◽  
China Trade

Subject The evolution of Brazil-China economic relations. Significance China has been Brazil’s largest export partner since 2009. Brazil’s trade surplus with China reached 11.8 billion dollars in 2016 and 18.2 billion in the first nine months of 2017, largely based on exports of primary commodities. In addition to trade, China’s investment interests in the Brazilian economy are rapidly growing, in particular in sectors such as energy, infrastructure and natural resources. Impacts Bilateral trade would benefit from agreements that encompass higher value-added creation in both economies. Chinese investments in Brazil may represent a source of funding without increasing domestic activity in the short term. Closer Brazil-China relations will help to consolidate China’s presence in Latin America. An up-to-date regulatory framework for investments in Brazil will be crucial to make relations work for both countries.

The impacts of Chinese direct investment in Thailand on the Sino-Thai bilateral trade

2016 ◽  
Vol 9 (1) ◽  
pp. 24-39 ◽  
Author(s):  
Mathavee Keorite ◽  
Huang Pan
Keyword(s):  
Direct Investment ◽  
Design Methodology ◽  
Bilateral Trade ◽  
Raw Materials ◽  
Value Added ◽  
Trade Surplus ◽  
Content Type ◽  
Practical Implications ◽  
Determinant Factor ◽  
Value Added Products

Purpose – The purpose of this paper is to investigate the impacts of Chinese direct investment in Thailand on the Sino-Thai bilateral trade. The economic relationship between Thailand and China has been strengthened through both trade and Chinese direct investment in Thailand for past decades. Design/methodology/approach – AR(p) model was used to examine the effects of Chinese direct investment on both Thailand exports and Thailand imports. Findings – This paper shows that Chinese direct investment in Thailand has contributed to the decrease of intermediate goods of Thailand exports to China. On the other hand, Chinese direct investment has contributed to the increase of finished products of Thailand exports to China. In addition, Chinese direct investment in Thailand has contributed to increase of Thailand imports from China. This suggests that strengthening cooperation for economic growth in either of the two countries can generate mutual benefits through trade. Research limitations/implications – The studies focus only on the effects of foreign direct investment (FDI) on trade, while the effects of trade on FDI are neglected. Practical implications – Policies should be devised to reduce reliance on exports of raw and semi-raw materials by turning on to final products with more value-added products and should improve the equality of infrastructure in the country to attract more FDI into the economy. Originality/value – This paper provides evidence that Chinese direct investment in Thailand is an important determinant factor of the rapid growth of the bilateral trade. It also shows that the appreciation of Thai Baht against Chinese RMB is associated with a decrease in Thailand trade surplus in the bilateral trade.

China’s trade policy towards Latin America: an analysis of free trade agreements policy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dorotea Lopez ◽  
Felipe Munoz
Keyword(s):  
Latin America ◽  
Latin American ◽  
Bilateral Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Flows ◽  
Content Type ◽  
Economic Relations ◽  
The Impact ◽  
Latin American Countries

PurposeThe emergence of China in the international trading system has shifted its gravity center, as the country has become one of the mayor actors in international economic relations. Through the subscription of preferential agreements, China is building a network of strategic partnerships worldwide, including Latin America. The purpose of this paper is to answer the questions: Do free trade agreements (FTAs) between China and Latin American countries contribute to expand trade flows and enhance products diversification?Design/methodology/approachThree countries have an FTA with China, Chile (2005), Peru (2009) and Costa Rica (2010). Through an econometric estimation based on a gravity model, the authors expect to determine the impact of these agreements over both trade flows and products.FindingsThe study shows that FTAs have a positive impact on both bilateral trade flows and on the number of exchanged products. Nevertheless, this impact is positive but diminishes in time. The authors confirm that these agreements allowed for a substantive expansion of trade between Latin American economies and China, becoming relevant for policymakers regarding the bi-regional relation.Originality/valueThe study contributes to the understanding of the bilateral trade relations between China and Latin American countries, giving evidence of the magnitude of the impact of FTAs. Through new data, at a six-digit level of detail, this study improves current knowledge regarding bilateral economic relations.

Nigeria's hefty budget will not dispel investor unease

2016 ◽  
Keyword(s):  
Central Bank ◽  
State Government ◽  
Negative Impact ◽  
Tax Compliance ◽  
Value Added ◽  
Short Term ◽  
State Budget ◽  
Content Type ◽  
The Government ◽  
Final Text

Subject Outlook for Nigeria's 2016 state budget. Significance The Senate this week will forward President Muhammadu Buhari the revised 2016 state budget, which it passed on March 23. Buhari says that he will assess it "ministry by ministry" before signing it into law to ensure that there are no irregularities in the final text. The 6.06-trillion-naira (30.6-billion-dollar) spending plan is 17 billion naira lower than the initial budget proposed by the government in December 2015. Impacts Buhari is unlikely to consider raising the value added tax given its effect on living costs, which would hurt the APC electorally. The central bank will likely keep currency restrictions in place, at least in the short term, despite their negative impact on firms. The tax compliance drive will be most effective in Lagos, due to heavy investment in collection capacity by the state government.

China-Japan economic complementarity will deepen

2018 ◽  
Keyword(s):  
Free Trade ◽  
Product Differentiation ◽  
Bilateral Trade ◽  
Value Added ◽  
Division Of Labour ◽  
Global Market ◽  
Economic Interdependence ◽  
Donald Trump ◽  
Content Type ◽  
Speaking Out

Significance Competition between Japanese and Chinese companies in the global market is increasing, but their bilateral trade reveals that the division of labour and economic interdependence between the two countries is deepening. Tokyo and Beijing have also become the two largest economies speaking out for global free trade -- albeit on their own terms -- amid Washington's turn to protectionism under President Donald Trump. Impacts Intra-industry trade will deepen. The share of high value-added items in trade in both directions will increase. Quality and product differentiation will become more important to exporters’ competitiveness on both sides.

US firms will feel pressure in China, trade war or not

2018 ◽  
Keyword(s):  
United States ◽  
Integrated Circuits ◽  
The United States ◽  
Xi Jinping ◽  
Donald Trump ◽  
Trade Surplus ◽  
Content Type ◽  
China Trade ◽  
Trade War ◽  
Trump Administration

Subject China's options for retaliating against US firms during trade tensions. Significance US President Donald Trump tweeted yesterday that he is working with China's President Xi Jinping to get China's telecoms giant, ZTE, "back in business, fast" -- even though it was penal US sanctions that forced the company to announce last week that it was stopping operations. The Trump administration is divided on whether its objective in threatening imports tariffs on Chinese goods worth 50 billion dollars, effective May 22, is to strike a deal to cut China's trade surplus with the United States or to change China's industrial practices. Impacts Compliance costs will rise even if trade tensions subside. Investors in industries that China sees as strategic (eg, semiconductors and integrated circuits) may face unwritten screening rules. Investors in automobile, aircraft and shipping manufacturing and finance may find new opportunities to enter the market.

Polish VAT surge may subside from mid-2018

2017 ◽  
Keyword(s):  
Credit Rating ◽  
Value Added ◽  
Tax Revenue ◽  
Positive Trend ◽  
Government Budget ◽  
Short Term ◽  
Content Type ◽  
The Difference ◽  
The Government ◽  
The Eu

Significance Budget data for the first ten months show revenue from value-added tax (VAT) exceeding the forecast by 22%. That could help narrow Poland’s 'VAT gap' -- the difference between collected and potential taxes. Impacts Poland is likely to bring its VAT gap closer to the EU average in the short term. However, this positive trend may offer only a temporary reprieve for ruling PiS. Rising tax revenue will boost not only the government budget but also Poland’s credit rating.

Thailand’s democratic deficit will dampen GDP growth

2018 ◽  
Keyword(s):  
Public Spending ◽  
Gdp Growth ◽  
Democratic Deficit ◽  
National Strategy ◽  
Consumer Spending ◽  
Short Term ◽  
Domestic Activity ◽  
Content Type ◽  
The Government ◽  
The Impact

Subject Outlook for the Thai economy. Significance Thailand's GDP grew by 3.9% last year, the most since 2012, and is expected to remain at around 4.0% this year, with stronger public spending supporting surging tourism and solid consumer spending. Thailand’s National Strategy aims to raise GDP growth to 5-6%, but this ambition faces rising short-term risks and longer-term structural impediments. Impacts Despite rising pressure on the government to hold elections, protests will not grow, limiting the impact on spending and tourism. Automobiles, semiconductors and other electronics -- key Thai exports -- will be hit by deteriorating US-China relations. The Bank of Thailand is one South-east Asian central bank keen to ‘normalise’ rates, but higher rates could dampen domestic activity.

China-South Korea trade relationship will transform

2018 ◽  
Keyword(s):  
South Korea ◽  
Bilateral Trade ◽  
Creative Industries ◽  
New Developments ◽  
Content Type ◽  
Economic Relationships ◽  
Economic Relations ◽  
South Korean ◽  
The Us ◽  
Trade Relationship

Subject New developments in China-South Korea economic relations. Significance China and South Korea have one of the most important bilateral economic relationships. Politics trumped economics when China imposed de facto sanctions in response to South Korea's hosting of the US military's THAAD missile defence system -- but there are more fundamental changes underway, too. Impacts South Korean companies will be more cautious about investing in China and will further diversify their investment destinations. South Korea's government and firms will work harder to develop South-East Asian markets for the country's tourism and creative industries. Links will develop further between Chinese and South Korean firms within cross-border technological chains. Overall volumes of bilateral trade will continue to increase, regardless of political tension and economic rivalry.

US investment rules will tighten for some countries

2019 ◽  
Keyword(s):  
United States ◽  
Bilateral Trade ◽  
The United States ◽  
Business Partnerships ◽  
Market Uncertainty ◽  
Content Type ◽  
Chinese Firm ◽  
China Trade ◽  
Bilateral Trade Balance ◽  
Trade Frictions

Significance US-China trade frictions, centring chiefly on disagreements over technology, intellectual property and the bilateral trade balance, are causing international market uncertainty. One US response to concerns about trading with China has been to expand the remit of the Committee on Foreign Investment in the United States (CFIUS), which evaluates investments into the United States from abroad. Impacts CFIUS expansion has bipartisan support and will continue regardless of the winner of the 2020 presidential election. The CFIUS intervened when a Chinese firm bought a US dating app, perhaps a precedent for seemingly non-security related investments. The CFIUS does not cover non-acquiring business partnerships or joint ventures, but general political pressure could curtail these.

Causes of U.S.-China trade imbalances: a review

2020 ◽  
Vol 13 (1) ◽  
pp. 37-44
Author(s):  
Yongqing Wang
Keyword(s):  
Bilateral Trade ◽  
Trade Deficit ◽  
Previous Literature ◽  
Common View ◽  
Content Type ◽  
Trade Imbalances ◽  
China Trade ◽  
The Us ◽  
The Usa ◽  
Trump Administration

Purpose It is a common view to Trump administration and public that devaluation of Chinese currency is the origin of the US trade deficit. However, the previous literature does not support this common view. To better understand the causes of the US trade imbalances with China, this study aims to review the previous literature focusing on the causes of bilateral trade imbalances between the USA and China. Design/methodology/approach Review previous literature according to the different reasons that each paper studies. Findings Based on the previous literature, the Chinese exchange rate is not the main reason for the US trade imbalances. The official US trade figures overestimate the amount of deficit. The actual causes for the US trade deficit with China perhaps should be the relocation of production to China, low saving in the USA and high saving in China, and the US dollar as the international currency and reserve. Originality/value By reviewing previous literature, the authors could better understand the puzzle of the US trade deficit with China.

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