Three months after it reopened its economy, Wuhan s uneven recovery offers a glimpse of the hard road back to normality for cities after containing the coronavirus.As of May, factory output, retail sales and exports in the city were nowhere near the same level as last year. That s even though some factories worked throughout the lockdown and normal activity had resumed by April. Private consumption continued to lag factory production, mirroring the divergence seen across China.
Trade boycotts or bans are especially costly when production is organised through global supply chains, as is the case with the pharmaceutical industry. Although India is the third largest producer of finished drugs in the world, it relies significantly on China for supplies of active pharmaceutical ingredients (APIs), the key components in making medicines. An estimated 70 per cent of API requirements of India s pharmaceutical industry are sourced from China. For some drugs, such as paracetamol and ibuprofen, this dependence is almost 100 per cent. This import reliance has been fuelled by environmental controls in India and competition with China, which has higher volumes of production and lower costs. Given this, restricting or banning the import of APIs would cause significant disruption to the Indian pharmaceutical industry which had $40 billion in revenues in 2018 19, according to Pharmexcil.Such a prospect is especially of concern to potential patients. A severe contraction of Indian pharmaceutical production and its almost $20 billion worth of annual exports, would affect access to medicines both in India and globally. The impacts would be especially high in low and middle income countries which have become increasingly dependent on affordable medicines supplied by India. In many African countries, in fact, India supplies almost 50 per cent of the medicines in value terms and even higher percentages in terms of volume.
For decades, China has grown and profited from the world, with little or no scrutiny. It has supported states with ties to terror and its technology sector is based on illegally stealing and proliferating technologies from the West. So, the belated waking up of the world to the threat China poses is a good thing.In India, post the Galwan treachery, there is a determination to redefine the economic relationship with China. For China, the good times in India began some years ago when the Congress government threw open the Indian markets and consumers to it. China started ratcheting up huge trade surpluses, currently over $50 billion annually. As our exports remained flat, imports from China steadily surged displacing Indian manufacturers and jobs.
Earnings from exports to the UK increased 12.22 percent in the first quarter of the year to Sh13.29 billion compared to a similar period in 2019, according to the Kenya National Bureau of Statistics (KNBS) data.The growth, the KNBS says, is largely attributed increased orders of cut flowers by Kenya s former colonial master, helping London move from fifth to third largest importer of the country s merchandise.
The JSW Group is a $ 14 billion conglomerate, which has a presence in core sectors of steel, energy, cement, and infrastructure. The group imports a huge amount of machinery and maintenance equipment. Apart from the JSW Group, the local traders body Confederation of All India Traders (CAIT) had also said that it will further mobilise traders in India to boycott Chinese goods and lend support to indigenous products.Also Read: Coronavirus may cost India USD 150 billion this year; economic activity in these cities takes hardest hitNot only the private bodies, but the centre and the state governments have also stepped up to boycott Chinese goods. In a strong message to China, the Modi government banned 59 Chinese apps, citing them a threat to India s integrity and security. Last month, Finance Minister Nirmala Sitharaman had urged the traders to make more goods in the domestic market and refrain from importing non essential goods, such as Ganesha idols, from China. At the state level, Chief minister Uddhav Thackeray led Maharashtra government has paused three Chinese projects worth Rs 5,000 crore in June, while Yogi Adityanath s Uttar Pradesh, and Manohar Lal Khattar s Haryana have also adopted a tough stance on imports from China. Meanwhile, the Federation of Indian Exports Organisation (FIEO) said that an outright blanket ban is not in India s best interest and is not feasible at the moment.
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The U.S. government s announcements were made a few hours before news broke that China had passed a new national security law that will give it greater control over Hong Kong. It is expected to take effect on July 1, according to the South China Morning Post.The type of tech exports that could be affected by the U.S. policy include computer chips and dual use technology (or tech that has both civilian and military applications), like satellites and telescopic lenses used in firearms.
The Society of Motor Manufacturers and Traders (SMMT), the trade body of Automobile manufacturers of United Kingdom, in a report released on Friday 26th of June 2020, enumerated the state of affairs that the auto industry is in, post the lockdown. The industry, which was the crowning jewel of British exports, has come to a very weak state following the outbreak of the Coronavirus. The production of 5,314 cars in May 2020, though can be called a significant jump compared to only 197 cars produced in the previous month of April, but these figures are nowhere near to what the industry uses to produce in the pre pandemic period and is a tiny fraction of its total capacity. The plants remained idle or started producing at a reduced capacity in the month of May that led to a drop of 95.4 per cent drop in the production for the month, while on a year to date basis the decline was of 41.7 per cent as compared to 2019.There are three factors currently that can be called primarily responsible for the trouble of the industry. The logistics and supply chain setup of the industry has been very badly affected by the coronavirus pandemic. The British Automobile industry has been for a while sourcing a significant portion of its components from countries like China which are cheap then producing it in the United Kingdom and help the British industry be internationally competitive. When the pandemic first broke out in China, most of the suppliers from china has to shut their factories and warehouses for an indefinite period. This inadvertently also resulted in a stoppage of production lines in the United Kingdom. The disruption was so sudden that the manufacturers in the country did not have an opportunity to even develop alternative sources and were forced to issue production and revenue warnings. After the lockdown was imposed, things became worse from bad, the factories which were operating with whatever raw material inventories they had, had to shut down completely because the labour was forced to stay at home because of the government directive. Third and most importantly, the demand structure facing the industry has also crumbled down during the time the lockdown was in effect. The industry which exports nearly 81 per cent of all cars that it produces, is not able to access the international markets because of restricted movement of goods across borders because of the pandemic.
India on Tuesday slapped definitive anti dumping duty on certain steel products imported from China, South Korea and Vietnam after a probe found that these items caused injury to domestic producers.The revenue department said in an order that flat rolled product of steel coated with alloy of aluminium and zinc was exported from these countries below their normal value, resulting in dumping and causing injury to domestic producers. The rate of duty imposed varies from country to country and from exporter to exporter with the highest rate applicable on exports from China at $128.9 per tonne. Provisional anti dumping duty imposed on the product in October 2019 had expired in April this year and the definitive duty imposed on Tuesday is applicable for five years starting from last October, said the order.
Comment Facebook Twitter Reddit Email More Share this storyRussia #039;s Huge Oil Cuts Help Drive Physical Crude Prices Higher Tumblr Pinterest Google LinkedIn (Bloomberg) mdash; To understand why physical crude oil prices are rising across Europe, look to Russia.The country, one of the world ''s largest producers, is curbing its exports to multi year lows. That ''s helped to increase demand for other European grades and recently boosted their values in the market where actual barrels of oil are traded.
Export revenues declined in dollar terms even though volumes increased, reflecting a weaker global market for cement and clinker.Pakistan''s cement industry earned USD242.50m of export revenue by exporting 6.562Mt of cement and clinker in 11MFY19 20, compared to USD260.17m from 6.136Mt of exports in the year ago period. This represents a 6.79 per cent decline in dollar terms, but reflects a growth of 6.94 per cent in terms of quantity, during this period, as reported by FBS.In local currency terms, the export value increased by 9.49 per cent to PKR38.05bn from PKR34.75bn during this export period. Nevertheless, the cost per tonne fell from USD42.40 t in 11MFY18 19 to USD36.951 t in 11MFY19 20.However, recent trends indicate the green shoots of a recovery. In May 2020, revenues rose to USD19.30m on the export of 608,054t from USD13.13m with cement and clinker exports of 363,563t in April 2020. This represents a substantial expansion of 47.01 per cent and 67.25 per cent in terms of both value and quantity, respectively.In addition, when compared with annual data from May 2019 (USD17.04m from 398,079t), a growth trend is also observed. The value of exports increased by 13.22 per cent and 52.75 per cent in terms of quantity YoY.Production in 10MFY20Pakistan''s Federal Bureau of Statistics (PBS) has also released production data for the ten months covering July 2019 April 2020 and April alone, with a footnote that overall output of large scale manufacturing industries (LSMI) decreased by 8.96 per cent YoY for July April 2019 20 compared to July April 2018 19. However, the LSMI output decreased by 41.89 per cent for April 2020 compared to April 2019 and 32.85 per cent, when compared to March 2020.Cement production too contracted during this period on a cumulative and YoY basis. Over the period, Pakistani cement production decreased by 0.42 per cent YoY to 33.33Mt compared to 33.47Mt a year earlier. The downward trend was also observed in April 2020, when production fell by 16.92 per cent to 3.276Mt versus 3.943Mt in April 2019.Pakistan has 25 cement plants with 50 production lines with a total production capacity of 69.164Mta of cement in country. Our editors' pick the top news delivered to your inbox each day.
The Russian food processing industry is growing, driven by strong government support for domestic agricultural production and by an ambitious national goal of increasing food exports by 70 percent by 2024 (to $45 billion). While continuing economic sanctions and a weakening ruble affect demand for imported products, Russia s food processing industry is modernizing to better serve domestic consumers and a growing number of strategic trading partners. Within this context, there are attractive niche opportunities for exporting quality ingredients that offer good value.Russia: Food Processing Ingredients
The US and the European Union, which together account for 64 per cent of India;s readymade garment (RMG) exports, are staring at a recession, Crisil Research said in a report, adding that the US is the worst infected country now, and the pandemic driven lockdown has ripped many apparel retailers there.Besides, a spike in unemployment and fall in personal incomes would cut spending on apparel, it said.
President Donald Trump said he won t renegotiate his so called phase one" trade deal with China, despite the country falling short on agreements to purchase additional U.S. exports. We re not going to renegotiate," he said in an interview with Fox Business Network broadcast Thursday.
Trump also said Prime Minister Narendra Modi was great when he sought his help to allow exports of the anti malarial drug to treat Covid 19 patients in the U.S.On Tuesday, days after adding hydroxychloroquine to the list of active pharmaceutical ingredients that cannot be exported, India lifted the ban after Trump said his country could "retaliate" if it did not release stocks of the drug.
India on Tuesday said it had placed two drugs namely hydroxychloroquine (HCQ), an anti malarial drug considered suitable for the treatment of covid 19, and paracetamol, an anti pyretic, under the licensed category for exports, while freeing up 14 other drugs completely.Exports of all these drugs were previously banned by the Centre following the covid 19 outbreak. The number of infections in India has crossed 5,000, with 136 fatalities.
SEOUL :South Korean exports rose 10.0% in the first 20 days of March year on year as the lockdowns across the world to prevent the coronavirus spread fuelled demand for teleconferencing technology and components.
The official was not authorized to discuss details amid discussions and ahead of an announcement and spoke to The Associated Press on condition anonymity.Both countries are eager to choke off the spread of the virus but also eager to continue the critical economic relationship. Canada relies on the U.S. for 75 percent of its exports.
The Government has set a target of $26 billion turnover in aerospace and military manufacturing in next five years, Defence Minister Rajnath Singh said on Saturday, noting that indigenous defence production was key to achieving the country''s aim to be a $5 trillion economy by 2024.He said adequate thrust is being given on enhancing defence exports though the primary aim of indigenous defence production is to cater to the needs of the armed forces.