US-China relationship on 'more stable footing' Yellen says; China central bank to set up $70 bln tech re-lending programme
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China central bank to set up $70 bln tech re-lending programme
Nikkei Asia
China's central bank is launching a 500 billion yuan ($70 billion) re-lending program to support the country's science and technology sectors. The program will offer loans to small and midsize technology companies at an interest rate of 1.75%. This move comes as China's policymakers aim to boost liquidity and increase confidence in the country's economy, which is facing challenges from a property crisis and trade tensions with major partners.
US-China relationship on 'more stable footing' Yellen says
Deutsche Welle
US Treasury Secretary Janet Yellen and Chinese Premier Li Qiang expressed optimism about improving ties between the two countries during Yellen's visit to China. Yellen said that difficult conversations have put the US-China relationship on a more stable footing, although there is still work to be done. Li stated that China hopes for a partnership rather than an adversarial relationship with the US. During her visit, Yellen emphasized concerns about China's overproduction of clean energy products and its impact on US producers. The visit comes after a meeting between US President Joe Biden and Chinese President Xi Jinping in November that has contributed to a warming of bilateral ties. US Secretary of State Antony Blinken is also expected to visit China soon.
Big three Chinese airlines extend losing streak as rivals rise after COVID
Nikkei Asia
China's three major state-owned airlines, China Southern Airlines, Air China, and China Eastern Airlines, have reported net losses for 2023, despite a significant increase in revenue. The three airlines collectively lost CNY 13.3 billion ($1.87 billion) in 2023, even though revenue jumped over two-fold to CNY 427.6 billion. This is in sharp contrast to smaller domestic rivals and regional peers, which have reported positive net figures for the year. The big three are struggling due to the slow recovery in international travel, as Chinese consumers have stayed closer to home amid a sluggish economy. In contrast, smaller carriers have benefited from domestic travel demand. The airline industry in China has faced complex adjustments in flight resources during and post-pandemic, posing challenges to earnings projections. However, with the recent easing of travel restrictions, the big three airlines are expected to return to profitability in 2024.
Thailand Leads Push for Six-Nation Visa to Lure Moneyed Tourists
Bloomberg
Thailand has proposed a joint-visa programme with Cambodia, Laos, Malaysia, Myanmar and Vietnam, which together hosted 70 million tourists in 2023. The programme is aimed at increasing revenue per tourist and cushioning Thailand's economy from headwinds such as sluggish exports. The single-visa scheme is part of Thai Prime Minister Srettha Thavisin's plans to elevate Thailand to an aviation and logistics hub.
China providing geospatial intelligence to Russia, U.S. warns
Japan Times
The United States has warned its allies that China is providing increased support to Russia, including geospatial intelligence, in its war against Ukraine. China has reportedly supplied Russia with satellite imagery, microelectronics, machine tools, optics, propellants for missiles, and increased space cooperation. This comes amid signs of continued military integration between the two countries.
‘Gladiator Politics’ Dominate Election Season in Polarized South Korea
NY Times
The upcoming elections in South Korea are not just about the 300 seats in Parliament; they are also a battle between President Yoon Suk Yeol and opposition leader Lee Jae-myung, who are both unpopular and rely on hard-line supporters. The country is facing economic challenges, a low birthrate, and growing discontent among its youth. Online hate speech and acts of violence have also become more prevalent in South Korean politics.
AUKUS weighs expanding security pact to deter China, report says
Japan Times
The US, UK, and Australia are set to announce talks about expanding their AUKUS security pact, with Japan being considered as a potential member. The talks will focus on "Pillar Two" of the pact, which involves jointly developing advanced technologies such as quantum computing, undersea capabilities, hypersonic missiles, artificial intelligence, and cybersecurity. The first pillar, which involves providing Australia with nuclear-powered attack submarines, will not be expanded. The move is seen as a way to deter China's growing influence in the Indo-Pacific region.
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