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Summit season lessens tensions
Published 29 November 2022
How has intense multilateral diplomacy in the last two weeks impacted global trade? Should economies form a non-aligned movement for trade in light of US-China tensions? Why are MNCs finding it hard to let go of China? Our reading list covers the latest developments in international trade.
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The last two weeks have seen intense multilateral diplomacy. COP27 in Egypt concluded with agreement on a historic loss and damage fund and a methane detection system. Reduction in meat consumption was missing from the COP agenda, according to the Institute for European Environmental Policy. World leaders headed to Cambodia, Indonesia, and Thailand for ASEAN, East Asia Summit, G20, and APEC meetings. Nikkei Asia sums up the results of 12 days of summitry. ASEAN and the US agreed to form a comprehensive strategic partnership. The US, Korea, and Japan reaffirmed their trilateral partnership for the Indo-Pacific. Notably, leaders’ declarations were agreed upon at the conclusion of both the G20 and APEC meetings. APEC managed to find consensus on Asia-Pacific free trade and even on Ukraine, notes Nikkei Asia. G20 economies have shifted trade policies over the last year, and not for the better, according to St. Gallen Endowment. Indonesia may see an economic boom, notes The Economist.
- COP27 ends with announcement of historic loss and damage fund – United Nations Environment Programme, 22 November 2022
The fund is expected to compensate developing nations for the worst damage from climate change.
- UN announces high-tech, satellite-based global methane detection system – United Nations Environment Programme, 11 November 2022
A new satellite-based system will detect methane emissions, a potent greenhouse gas.
- The biggest climate solution missing from COP27: meat reduction – Faustine Bas-Defossez and Sarah Lake, Institute for European Environmental Policy, 15 November 2022
Though food system resiliency was a focus of discussions, meat consumption reduction was off the table.
- From ASEAN to G-20 to APEC: 12 days of summitry summed up – Nikkei Asia, 21 November 2022
Navigating through serious geopolitical tensions, modest progress was made and tensions dialed down.
- APEC finds consensus on Pacific free trade, Ukraine war fallout – Nikkei Asia, 19 November 2022
Despite the challenge of a membership at odds, APEC leaders were able to issue an agreed statement.
- G20 Trade Policy Factbook – St. Gallen Endowment, November 2022
G20 trade policy reform is at an all-time high, but not necessarily for the better.
- Indonesia is poised for a boom—politics permitting – The Economist, 19 November 2022
Indonesia, a massive economy, is poised for more growth due to digitalization and natural resources.
- Chairman’s Statement of the 40th and 41st ASEAN Summits – Association of Southeast Asian Nations, 11 November 2022
- Chairman’s Statement of the 17th East Asia Summit – East Asia Summit, 13 November 2022
- Fact Sheet: President Biden and ASEAN Leaders Launch the U.S.-ASEAN Comprehensive Strategic Partnership – The White House, 12 November 2022
- Phnom Penh Statement on US – Japan – Republic of Korea Trilateral Partnership for the Indo-Pacific – The White House, 13 November 2022
- G20 Bali Leaders’ Declaration – G20, 15-16 November 2022
- 2022 APEC Leaders' Declaration – Asia-Pacific Economic Cooperation, 19 November 2022
- 2022 APEC Ministerial Meeting Statement – Asia-Pacific Economic Cooperation, 18 November 2022
Apple’s supply chain foundation is showing its cracks, according to the New York Times. Germany may require major companies to disclose their operations’ reliance on China, per the Wall Street Journal. Yet, multinational firms are finding it hard to let go, writes the Economist. Some foreign companies are staying in China for China reports the Financial Times. Tesla is considering expanding production in China for export to North America, says Reuters. And Singapore’s Foreign Minister has proposed a new “non-aligned movement” for trade and supply chains, writes the Straits Times.
- Apple Built Its Empire With China. Now Its Foundation Is Showing Cracks – Tripp Mickle, Chang Che and Daisuke Wakabayashi, The New York Times, 7 November 2022
Reporting that feels prophetic in the wake of the latest protests at Foxconn’s factory in Zhengzhou.
- Germany Debates Naming Businesses With Large China Exposure – Bojan Pancevski, The Wall Street Journal, 21 November 2022
Germany considers rules to require companies with significant reliance on China to disclose assets.
- Multinational firms are finding it hard to let go of China – The Economist, 26 November 2022
Multinationals reach a fork in the road when it comes to their future in China.
- Foreign companies adopt ‘China for China’ strategy – Thomas Hale and Wang Xueqiao, Financial Times, 15 November 2022
Foreign companies continue to find big upsides to staying in China.
- Exclusive: Tesla has considered exporting EVs from Shanghai to U.S., Canada – Reuters, 12 November 2022
Tesla considers exporting vehicles from its Shanghai factory to North American customers.
- New ‘non-aligned movement’ needed for countries amid US-China tensions: Vivian Balakrishnan – Ng Kei Wai, The Straits Times, 10 November 2022
Should economies form a non-aligned movement for trade in light of US-China tensions?
- Transcript of Minister for Foreign Affairs Dr Vivian Balakrishnan's Remarks – 2nd Next Step Global Conference 2022, 9 November 2022
Inu Manak of the Council on Foreign Relations argues for the Biden Administration to shift gears on US trade policy. The US-China Economic and Security Review Commission recommends that the new Congress consider suspending Permanent Normal Trade Relations for China, per Bloomberg. The US Federal Communications Commission shuts Huawei and ZTE out of the US market, reports Bloomberg. Lastly, lessening reliance on China provides incentive to improve the US-India trade relationship, according to the New York Times.
- Will Biden’s Trade Policy Shift after the Midterms? – Inu Manak, Council on Foreign Relations, 17 November 2022
Key advocates have left the US Congress. What will Congress’s new composition mean for trade?
- A Congressional Panel Is Questioning China’s Role as a Favored US Trading Partner – Courtney McBride, Bloomberg, 15 November 2022
The US-China Economic and Security Review Commission recommends that Congress consider suspending Permanent Normal Trade Relations for China.
- 2022 Annual Report to Congress – US-China Economic and Security Review Commission, 15 November 2022
- US Bans Huawei, ZTE Telecom Equipment on Data-Security Risk – Bloomberg, 26 November 2022
Citing data security, the United States shuts out Huawei and ZTE from the American market.
- U.S. Seeks Closer Ties With India as Tension With China and Russia Builds – Alan Rappeport and Ana Swanson, The New York Times, 11 November 2022
The US seeks stronger trade ties with India, despite a challenging trade relationship.
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