China is still a critical trading partner for many countries across the world, and the often-used narrative of the superpower being delinked from the global economy is overdone, says the Manila-headquartered Asian Development Bank.

“China’s still probably the number one trading partner for the majority of countries in the world,” ADB’s Chief Economist Albert Park told CNBC.

Although there have been parts of overall trade with China that have declined, the country’s engagement and importance in the global value chain has not diminished, said Park.

China’s trade with its major partners fell in 2023 — its annual exports dipped for the first time in seven years as demand for Chinese goods fell amid slower global growth. However, the economic powerhouse remains a top trading partner to over 120 countries, and is still the largest trading partner to Japan, South Korea, Taiwan and Vietnam, according to U.S. think tank Wilson Center.

While it may ring true for certain goods or specific countries that are “very aggressively trying to restrict Chinese trade,” on a more global scale the delinking is much less evident, said the economist. He added that even following the trade conflict started by former U.S. President Donald Trump in 2018, China’s importance in the global value chain has not slumped.

Trade tensions between China and the U.S. have been festering since 2018 with Trump slapping tariffs and other trade barriers on China.

Even so, China continued to play an outsized role in the global economy, accounting for 18% of global GDP and is regarded still as the world’s largest trading economy.

“The story of China being delinked from the global economy — I think those are probably generally very overdone or very partial,” Park continued.

On China’s end, a pursuit of self-reliance has decreased its dependency on imports, but China continues to maintain its reliance on foreign demand, scaling up on exports which have become intertwined with the country’s growth.

“All told, a delinking of global production processes and consumption from China is not in sight,” the U.S. Federal Reserve said in a recent February statement.

The U.S. and EU have been considering imposing sanctions on Chinese companies it believes are helping Russia fuel its war in Ukraine, a move which could hurt the Chinese economy even further as it tries to move out of the post-Covid doldrums.

Doubts about investing in China have gained ground as the economy continues to battle pressures from deflation, an economic slowdown, and an embattled property market.

Source: CNBC

Three Walmart heirs have more than doubled their money since 2016, adding more than $100 billion to their combined fortunes.

Legendary founder Sam Walton’s three surviving children — Rob, Jim, and Alice — all hold top-20 spots on the Forbes rich list with personal fortunes of between $70 billion and $77 billion. They were less than half as wealthy in 2016.

They’re now worth a combined $224 billion, making them richer as a trio than Elon Musk, who’s number two on the list with an estimated $205 billion net worth.

Their wealth has ballooned in recent years thanks to Walmart stock, which has surged from below $75 in 2016 to a record high of $181 earlier this week.

It’s jumped 11% this year already, fueled by resilient consumer demand and mounting hopes that interest rates will be cut and the economy will escape a recession.

The Walton trio have garnered more than $45 billion in total from stock sales and dividends over the years, per Bloomberg.

Together with other relatives, they own more than 1.25 billion shares, or more than 45% of the company — a stake valued at roughly $220 billion.

Source: Business Insider

The housing market outlook remains hazy for the first quarter as both developers and homebuyers lack confidence in performance and purchases, dampened by elevated interest rates.

Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said both supply and demand were affected by higher interest rates, which were hiked several times last year to a policy rate of 2.50%.

“Developers face higher financial costs, while homebuyers’ purchasing power declined, ultimately affecting developers’ revenue,” he said.

The REIC surveyed housing demand in Greater Bangkok in November last year at the House and Condo Fair, asking 500 respondents to assess sentiment.

The index in the fourth quarter of 2023 was 44.5, improving from 41.2 in the first nine months, but remaining lower than the median of 50, which indicates homebuyer sentiment is still low.

“The low confidence likely derived from the sluggish economy, affected by several negative factors, particularly rises in interest rates, which are expected to remain at this level for a while,” said Mr Vichai.

In addition, the Bank of Thailand does not intend to ease lending curbs as household debt levels have ballooned.

These factors weighed on home purchasing power and homebuyers’ confidence in purchasing homes, as they are concerned about being rejected for a mortgage, noted the centre.

The survey found 46% of respondents were age 25 to 34, while 60% were employed. Some 35% of respondents earned between 15,001 and 30,000 baht per month.

Source: Bangkok Post