Employees of China Railway No 8 Engineering Group Co undertake construction work inside a tunnel in Laos in September. [Photo/Xinhua]
Commerce between China, participating economies up by 1.5% to $1.01 trillion
Win-win cooperation and rising development opportunities have become the hallmarks of the Belt and Road Initiative－and ample proof can be found in the steady growth in trade and investment flows between China and the participating economies in the past seven years, experts said.
In the first three quarters of this year, China’s trade with BRI economies rose 1.5 percent to 6.75 trillion yuan ($1.01 trillion), according to the General Administration of Customs.
Particularly, trade with Vietnam and Turkey increased 18.5 percent and 17.1 percent, respectively. Corresponding figures for Poland and Thailand were 13 percent and 10.9 percent, respectively.
The surge in the number of China-Europe freight train trips signifies the strengthening economic and trade ties between China and BRI-related economies.
Despite the COVID-19 pandemic, more than 5,120 train trips were made on the route during the first half of this year, up 36 percent from a year earlier, according to China State Railway Group Co. By the end of September, the freight service operated 30,000 trains since its launch.
Goods trade between China and BRI economies went up from $1.04 trillion in 2013 to $1.34 trillion in 2019.
China’s outbound direct investment in BRI economies reached $117.31 billion during the period. By the end of 2019, ODI stock was $179.47 billion, or 8.2 percent of China’s total.
The growth of nonfinancial ODI in BRI economies was even more obvious in the first nine months of this year, surging almost 30 percent on a yearly basis to more than $13 billion, according to the Ministry of Commerce.
“It’s not a surprise at all that trade and investment activities between China and the BRI regions keep growing, and became a bright spot amid the global contraction in trade and investment activities this year, because the BRI propels trade and economic cooperation that lead to mutual benefits and development,” said Bai Ming, deputy director of international market research at the Chinese Academy of International Trade and Economic Cooperation.
The BRI has been attracting an increasing number of participants since its inception because it was founded on the principle of achieving shared growth through collaboration, he said.
Through the BRI, countries and regions are able to further tap each other’s potentials in trade and investment by exploiting advantages, maximizing strengths and overcoming weaknesses, he said.
Besides, there are a lot of sub-platforms under the framework of the BRI, which also contribute toward economic development of all the countries and regions concerned, he said, citing examples of China’s free trade agreements with other countries.
According to a CAITEC report, China had signed 17 FTAs with 25 countries by the end of 2019, and 12 more FTAs are likely to be signed or upgraded. The country signed an FTA with Cambodia in October.
It had signed 200 cooperation agreements with 138 countries and regions and 30 international organizations under the BRI framework as of May, according to a recent CAITEC report.
Besides, the BRI increasingly encompasses more than just transport infrastructure, moving into power generation and utilities, oil and gas pipelines, and telecommunications.
In addition, the BRI embraces social infrastructure like education, healthcare, software and innovation, according to a Deutsche Bank report published late last year.
Zhang Jianping, director-general of the China Center for Regional Economic Cooperation, which is part of the CAITEC, said China’s efforts to sign FTAs, double taxation agreements, multilateral/bilateral investment agreements, and information technology agreements, besides building a network of free trade zones, effectively facilitate trade and investment activities with BRI-related economies. Increased trade and investments will thus provide continuous development momentum to all the economies concerned.
Progress in BRI-related policy coordination, unimpeded trade, connectivity in facilities, financial integration, and people-to-people exchanges also boost inter-region trade and investment activities, he said.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
