Economics
National News Bureau Of Thailand
BANGKOK (NNT) – The Commerce Ministry has launched measures to increase rice exports to 6 million tons this year, valued at around 150 billion baht, with Indonesia, China, Bangladesh and Iraq set to be the main markets under government-to-government (G2G) deals.
Commerce Minister Jurin Laksanawisit said G2G deals and a campaign to make Thai rice more recognizable around the world will spearhead efforts to increase the export volume from last year’s 5.7 million tons.
He said the ministry is working with the Thai Rice Exporters Association to promote Thai rice under the “Think Rice, Think Thailand” campaign, adding that Thailand successfully made Thai rice become better known in Canada, increasing its exports to the country by 21% to 120,000 tons last year.
Mr Jurin said one of the distinctive characteristics of Thai rice is its very low sugar content. This would make it the preferred choice among Canadians as 28% of the Canadian population has high blood sugar levels.
Business
McKinsey Reduces Workforce by 500 in Overhaul of China Operations – WSJ
McKinsey plans to cut about 500 jobs in China, reducing its workforce by a third as part of a strategic revamp focused on minimizing security risks and decreasing government-linked clients.
McKinsey Job Cuts in China
McKinsey & Company, the renowned US consulting firm, is reportedly laying off approximately 500 employees as part of a significant restructuring in its Chinese operations. This decision reflects the company’s shift away from government-linked clientele, a strategy aimed at mitigating political and security risks in the region.
Workforce Reduction
The job cuts will result in a reduction of McKinsey’s workforce in China by roughly one-third. Over the past two years, the firm has been downsizing its personnel across Greater China, which includes Hong Kong and Taiwan, affecting hundreds of positions. As of June 2023, McKinsey employed nearly 1,500 individuals in Greater China.
Strategic Separation
To address rising security concerns, McKinsey is separating its China unit from its global operations. This move aims to enhance operational security while navigating the complexities of the Chinese market. McKinsey has not yet commented on these developments following a request for information.
Source : McKinsey Cuts 500 Jobs Amid Revamp of China Business – WSJ
Business
This Chinese EV Manufacturer is Ready to Compete with Elon Musk in China
Chinese EV startup Xpeng aims to compete with Tesla in China, developing autonomous driving tech while facing tariffs blocking US entry, and preparing for tough competition in the growing Chinese EV market.
Testing Tech Against Tesla
Chinese EV startup Xpeng is excited about comparing its technology with Tesla’s, especially since it is currently barred from entering the U.S. market due to high tariffs. Xpeng co-president Brian Gu expressed eagerness for this competition, which he sees as an opportunity for both companies to learn from each other and improve their offerings.
Tariff Challenges
The tariffs imposed by the U.S. and European Union have significantly impacted Xpeng and other Chinese EV manufacturers by blocking them from key markets. In May, President Biden introduced a 100% tariff on China-made electric vehicles, aiming to protect the U.S. automotive industry. Gu noted that these levies put pressure on profitability and may affect Xpeng’s pricing strategies.
Future Strategies
Despite these hurdles, Xpeng continues to thrive in China’s lucrative EV market, boasting record sales recently. The company is exploring establishing production facilities in Europe to mitigate tariff impacts. With aggressive pricing, such as the upcoming P7+ model, Xpeng aims to compete effectively against Tesla’s lineup while fostering innovation within the industry.
Source : This Chinese EV maker is up for a battle with Elon Musk in China
Business
China Signals Increased Fiscal Stimulus for Economy, Omits Key Size Details – Reuters.com
China signals increased fiscal stimulus for its economy but does not provide specific details on the size or extent of the measures, as reported by Reuters.
Increased Fiscal Stimulus in China
China is indicating a commitment to enhance fiscal stimulus measures to support its economy. This decision comes in the wake of economic challenges faced by the nation, as authorities look for ways to bolster growth. While the intention is clear, specific details regarding the size and structure of these fiscal measures remain vague.
Economic Context
Recent economic indicators suggest a slowdown, prompting the Chinese government to consider additional stimulus strategies. The lack of concrete information on the fiscal plan raises questions about its effectiveness and potential impact on the economy. Clarity on the specifics will be essential for analysts and businesses looking for guidance.
Future Implications
As markets respond to these signals, investors are keenly watching for further developments. The absence of key details highlights a common concern in economic policy—uncertainty can affect confidence and investment decisions. Going forward, the focus will be on how the Chinese government balances stimulus with long-term economic goals.
Source : China flags more fiscal stimulus for economy, leaves out key details on size – Reuters.com
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- This Chinese EV Manufacturer is Ready to Compete with Elon Musk in China
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