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Japanese Automakers turn to Thailand instead of China

For japanese investors, a series of strikes in the last two months in mainland China has not been the only factor contributing to China’s manufacturing market losing its appeal

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For foreign investors, a series of strikes in the last two months in mainland China has not been the only factor contributing to China’s manufacturing market losing its appeal.

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Low wages and the renminbi (RMB) exchange rate were the main incentives for many foreign investors to originally invest in mainland China, but now those premises are being challenged. Many large corporations are considering withdrawing from China or relocating to other developing countries. Some will even move their production lines back to the West.

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BOI promotes new incentive scheme for new automobile types to attract foreign direct investment in automobile sector.

According to a report by Japanese newspaper, Yomiuri Shimbun, rising wages, labor shortages and a series of unprecedented worker strikes in mainland China have had a long-term impact on Japanese companies’ strategies, forcing them to reconsider their long-term goal of using China as their low cost export base. Moreover, the anticipated rise of the RMB exchange rate will further erode the profitability factor for exporters.

Japan Turns to Thailand

The annual salary for a Chinese Honda worker currently can run as high as US$4,500 to 5,500: about twice that of Indian workers, and 33 percent higher than Thai workers.

Kyodo News reported that the Thai government has defined small cars that have fuel consumption and carbon dioxide emission levels lower than standard compliance guidelines as “green cars,” and encourages their production through tax reduction and exemption incentives.

Japan’s auto makers are now strengthening their production operations in Thailand. Various companies now consider Thailand to be a production and export base for environmentally-friendly and energy-efficient “global strategic models.” They plan to open new plants or increase production lines in Thailand.

via Epoch Times – Japanese Automakers in Thailand Undercut China’s Manufacturing Edge.

China

Will Myanmar’s coup help China influence ASEAN?

The Myanmar crisis is becoming increasingly tragic, with the military’s use of lethal force now killing over 60 protestors.

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On 16 January 2021, Chinese Foreign Minister Wang Yi concluded a visit to four ASEAN countries. One destination was Myanmar, the upcoming country coordinator of the ASEAN–China dialogue and now centre of international attention after the country’s military seized power.

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China

Rapid growth in China post-COVID makes it ripe for investment

Being “first in and first out” of COVID-19, China is the only country among the G20 that is thought by the Organisation for Economic Co-operation and Development (OECD) to have increased GDP in 2020.

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China’s economy rebounded sharply.

In January 2020 as the world began to learn of COVID-19, many market observers predicted a challenging year for Asia. While there continue to be headwinds from the health and economic crisis, Asia, and China in particular, has demonstrated comparatively advantageous resilience.

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China

Mainland China is in no position to take Taiwan by force

Unlike his predecessors, Chinese President Xi Jinping has demonstrated greater intensity in the desire for reunification.

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The situation across the Taiwan Strait has seemed to be on the brink of crisis since 2018. Beijing has sent numerous sorties of military aircraft to conduct exercises near Taiwan and frequently crossed the median line of the Taiwan Strait.

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