2025-02-25: China's Rural Revitalization Blueprint 2025
Indonesia's Strategic Move Towards Sustainable Investment and Economic Growth
Good Morning,
Below are some of the most important developments in business and economics in Asia today.
▪️ South Korea: South Korea Lifts Short Selling Ban, Reshaping Financial Market Dynamics
With South Korea set to lift its short selling ban on March 31, 2025, the financial landscape is poised for significant change.
▪️ China: Rural Revitalization Blueprint 2025: Tackling Governance, Trade, and Social Challenges
Central Document No 1 of 2025, released on February 23, sets a clear agenda for advancing agricultural and rural governance, prioritizing the "three rural issues." It specifies five key actions focusing on agricultural trade, rural customs, and investments for rural revitalization.
▪️ Indonesia: Danantara Launch: Indonesia's Strategic Move Towards Sustainable Investment and Economic Growth
The launch of Danantara presents a pivotal opportunity for Indonesia to enhance its economic landscape by adhering to Environmental, Social, and Governance (ESG) standards, crucial for attracting foreign investment.
▪️ India: Renewed India-UK Trade Talks Signal Opportunity for Economic Partnership
India and the UK are poised to resume free trade agreement (FTA) negotiations after an eight-month hiatus, with discussions scheduled to begin on Monday.
For more information on these developments, please see the full report below.
Thanks for reading,
Rodney J Johnson
Today's Developments
Widely Reported On Issues of Importance
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South Korea Lifts Short Selling Ban, Reshaping Financial Market Dynamics
With South Korea set to lift its short selling ban on March 31, 2025, the financial landscape is poised for significant change.
Originally imposed on November 6, 2023, ostensibly due to misconduct by global investment banks involving naked short selling, the ban has been in place for 1 year and 5 months. The removal of this restriction is anticipated to increase short selling activities, particularly as market sentiment shifts downward.
Stocks like Hanwha Aerospace and HD Korea Shipbuilding & Offshore Engineering, which have experienced substantial price growth, may become prime targets for investors looking to short sell. Notably, Hanwha has seen its stock value double in the past year, raising questions about its valuation.
Investors are being advised to consider the potential impact of this shift. The resumption of short selling often correlates with heightened market volatility, though it doesn't always translate to a drop in stock prices. Current market conditions, marked by declining operating profits for companies on the KOSPI index, suggest weakening fundamentals—a scenario reminiscent of trends observed following past short selling bans.
The resumption of short selling is seen as a critical measure for restoring credibility and trust in the South Korean stock market. It is expected to help correct inflated stock valuations and improve market accessibility for both foreign and retail investors.
This move also represents a strategic step toward South Korea's potential inclusion in the MSCI developed market index, a status it previously missed due to the ban. Officials stress that a broader implementation of short selling is essential for rebuilding investor confidence.
Kim Byung-hwan, Chairman of the Financial Services Commission (FSC), confirmed that short selling will officially resume on the specified date. To address possible market instability, particularly with specific stocks, the FSC plans to temporarily expand the 'Short Selling Overheated Stock Designation System.' This measure aims to curb excessive volatility.
Previously, short selling was limited to stocks within the KOSPI 200 and KOSDAQ 150 indices, but the upcoming changes will extend it to all 2,700 listed stocks.
In preparation, comprehensive regulatory enhancements have been undertaken over the past year to minimize volatility impact, especially on small and mid-cap stocks, which are more vulnerable to such fluctuations. The FSC stands ready to impose additional restrictions if necessary to prevent any undue market disturbances.
References for this Development
김병환 "공매도 재개 안할 이유없어…한시적 과열 종목 기준 완화"
ZD Net Korea | Local Language | News
Overvalued stocks to face correction when short selling resumes
Korea Times | English | News
김병환 금융위원장 “내달 공매도 재개, 과열 지정 확대 운영”
ET News | Local Language | News
S. Korea to fully resume short selling as planned: chief regulator
Korea Herald | English | News
Korea to fully resume short selling as planned: chief regulator
Korea Times | English | News
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Rural Revitalization Blueprint 2025: Tackling Governance, Trade, and Social Challenges
Central Document No 1 of 2025, released on February 23, sets a clear agenda for advancing agricultural and rural governance, prioritizing the "three rural issues." It specifies five key actions focusing on agricultural trade, rural customs, and investments for rural revitalization.
This year's document, formally titled "Opinions of the CPC Central Committee and the State Council on Further Deepening Rural Reform and Solidly Promoting the Comprehensive Revitalization of Rural Areas," addresses issues like agricultural subsidies, income channels, public services, and the specific needs of various rural individuals and groups.
A significant aspect of the document is its focus on combating marriage fraud and pyramid schemes in rural areas, emphasizing comprehensive governance to address high betrothal gifts and illegal marriage practices. This underscores the importance of increasing legal awareness in rural areas to protect farmers' rights and maintain social stability.
The document proposes tighter import quota management for agricultural products, with a particular focus on beef, to combat smuggling. By controlling activities within special customs zones, these efforts allegedly aim to protect market order and ensure food safety.
Additionally, there is a renewed focus on tackling rural gambling, pyramid schemes, and fraud, with a more aggressive crackdown on these economic crimes to safeguard rural communities.
Another novel focus in the 2025 document is the innovation of investment and financing mechanisms for rural revitalization. This includes improved financing systems and addressing illegal financial practices in rural sectors. The need for compliance with lawful operations within the agricultural sector is emphasized, with alerts about schemes targeting rural populations.
Detailed policies for agricultural subsidies include support for grain production, increased subsidies for corn and soybeans, stabilization of arable land protection, and expanded crop insurance. A new initiative allows provinces to receive inter-provincial interest compensation for grain production, benefiting local growers.
References for this Development
从5个“打击”，读懂2025年中央一号文件划定的治理红线
Beijing News | Local Language | News
@这6类人，今年的中央一号文件与你息息相关
@These 6 types of people, this year's Central Document No. 1 is closely related to you
Beijing News | Local Language | News
中共中央 国务院关于进一步深化农村改革 扎实推进乡村全面振兴的意见
STCN | Local Language | News
证监会最新发声！加快培育耐心资本；2025年中央一号文件发布；巴菲特再发股东信……来看周末要闻
STCN | Local Language | News
新华解码·中央一号文件丨不断夯实农业基础 加力推进乡村振兴——解读2025年中央一号文件
Xinhua | Local Language | News
(China Economic Roundtable) Xinhua Headlines: China's new push for rural reform, revitalization
Xinhua | English | News
受权发布丨中共中央 国务院关于进一步深化农村改革 扎实推进乡村全面振兴的意见
Xinhua | Local Language | News
China outlines key tasks for rural reforms, revitalization in 'No.1 central document'
Peoples Daily | English | News
中央一号文件丨我国将建立脱贫攻坚国家投入形成资产登记管理台账
Xinhua | Local Language | News
Xinhua | English | News
中共中央国务院关于进一步深化农村改革 扎实推进乡村全面振兴的意见
Guangming Daily | Local Language | News
受权发布|中共中央 国务院关于进一步深化农村改革 扎实推进乡村全面振兴的意见
MND | Local Language | Government
中央一号文件要求实施好新一轮农村公路提升行动
MOT | Local Language | Government
China Focus: China outlines key tasks to deepen rural reforms, advance rural revitalization
Xinhua | English | News
China outlines key tasks to deepen rural reforms, advance rural revitalization
Xinhua | English | News
中央一号文件时隔12年再提“以旧换新”，这次的含义大不相同
Beijing News | Local Language | News
“困境儿童”写入一号文件，公益人士：情感帮扶需要多方参与
Beijing News | Local Language | News
森林粮库、以旧换新、对村巡察，为何它们是一号文件“新面孔”？
Beijing News | Local Language | News
2025年中央一号文件发布
The Central Government’s No. 1 Document for 2025 was released
MND | Local Language | Government
微视频丨感悟总书记的“三农”情怀
Micro video: Feeling the General Secretary’s feelings about agriculture, rural areas and farmers
Xinhua | Local Language | News
首提“农业新质生产力” 一号文件释放了哪些新信号？
Beijing News | Local Language | News
(China Economic Roundtable) China steadily advances all-around rural revitalization
Xinhua | English | News
Tech innovation cultivates new productive forces in China's rural revitalization
Peoples Daily | English | News
周末重磅！中美大消息，证监会发声！2025年中央一号文件发布！影响一周市场的十大消息
STCN | Local Language | News
China announces rural revitalisation plans in annual policy blueprint
CNBC | English | News
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Danantara Launch: Indonesia's Strategic Move Towards Sustainable Investment and Economic Growth
The launch of Danantara presents a pivotal opportunity for Indonesia to enhance its economic landscape by adhering to Environmental, Social, and Governance (ESG) standards, crucial for attracting foreign investment.
M. Rizal Taufikurahman from the Center of Macroeconomics and Finance underscores the importance of government involvement to ensure professional management, free from political interference, to boost global confidence in the fund. Transparent regulations, stable policies, and legal certainty are paramount to secure investor interest, conceiving competitive fiscal incentives and protections to distinguish Danantara from other regional investment entities.
Danantara aims to optimize the efficiency of State-Owned Enterprises (BUMN), thereby attracting investments through demonstrable profitability. The presence of inefficiencies and bureaucratic barriers could potentially impede investment growth and diminish economic gains by lowering asset valuations.
Scheduled for launch by President Prabowo Subianto on February 24, 2025, Danantara is positioned as a formidable financial entity to manage Indonesia's assets for the welfare of future generations.
With a mandate to oversee more than US$900 billion in assets, Danantara will begin with an initial US$20 billion fund focusing on sustainable projects in renewable energy and food production. Former presidents and religious leaders are invited by President Prabowo to oversee the fund's management, ensuring collective stewardship and commitment to success.
Supported by revisions to the State-Owned Enterprises Law, Danantara aspires to become Indonesia's strategic investment tool, drawing on the experiences of successful sovereign wealth funds like Temasek and Khazanah. Economists such as Galau D. Muhammad and Anthony Leong underscore the need for depoliticized, professionally managed BUMNs and stress learning from other countries' successes and failures to forecast economic improvements.
References for this Development
Waksekjen Hipmi: Danantara tonggak baru modernisasi pengelolaan BUMN
Deputy Secretary General of Hipmi: Danantara is a new milestone in modernizing BUMN management
Antara News | Local Language | News
Presiden Prabowo Luncurkan Danantara di Istana Besok Pagi
President Prabowo Launches Danantara at Palace Tomorrow Morning
Republika | Local Language | News
Komisi VI DPR Yakin Presiden telah Kantongi Nama Tepat untuk Pimpin Danantara
House of Representatives Commission VI Sure President Has Pocketed Right Name to Lead Danantara
Republika | Local Language | News
IHSG diprediksi menguat di tengah peresmian Danantara
IHSG predicted to strengthen amidst Danantara inauguration
Antara News | Local Language | News
Danantara: Indonesia's New Strategy to Manage State Assets
The Jakarta Globe | English | News
Ekonom: Danantara dorong ekonomi berkelanjutan dan ciptakan pekerjaan
Economist: Danantara drives sustainable economy and creates jobs
Antara News | Local Language | News
Danantara Akan Resmi Diluncurkan Hari Ini, Siapa Saja Bosnya?
Danantara Will Be Officially Launched Today, Who Are the Bosses?
Republika | Local Language | News
Katsumoto vs Omura di Palagan Danantara
Katsumoto vs Omura in the Palagan Danantara
Republika | Local Language | News
SBY, Jokowi, JK, Ma'ruf Amin, Hingga Puan Hadiri Peluncuran BPI Danantara
SBY, Jokowi, JK, Ma'ruf Amin, and Puan Attend the Launch of BPI Danantara
Republika | Local Language | News
Istana sebut ormas hingga mantan Presiden jadi penasihat Danantara
Palace says mass organizations and former presidents become Danantara advisors
Antara News | Local Language | News
Membaca Kembali Komentar Pemilik Temasek Terkait Danantara yang Baru Diresmikan Prabowo
Rereading Temasek Owner's Comments on Prabowo's Newly Inaugurated Danantara
Republika | Local Language | News
Tata Kelola Hingga Manajemen Risiko Jadi Tantangan Danantara
Governance to Risk Management Becomes Danantara's Challenge
Republika | Local Language | News
Ekonom sebut Danantara perkuat transparansi pengelolaan aset negara
Economist says Danantara strengthens transparency in state asset management
Antara News | Local Language | News
Diluncurkan Hari Ini, Wasekjen Hipmi: Danantara Tonggak Baru Pengelolaan BUMN
Launched Today, Wasekjen Hipmi: Danantara is a New Milestone in BUMN Management
Republika | Local Language | News
Ekonom: Danantara Dorong Ekonomi Berkelanjutan dan Ciptakan Pekerjaan
Economist: Danantara Pushes for Sustainable Economy and Creates Jobs
Republika | Local Language | News
Danantara to Spur Growth, Job Creation: Economist
The Jakarta Globe | English | News
Ekonom: Kelola Danantara Sesuai ESG Agar Tarik Investor Asing
Economist: Manage Danantara According to ESG to Attract Foreign Investors
Republika | Local Language | News
Ekonom sebut dewan pengawas bisa jadi mitra di Danantara
Economist says supervisory board could be partner in Danantara
Antara News | Local Language | News
Siap Jadi Dewas Danantara? Gus Yahya: Kita Harus Lihat Dulu Tugasnya
Ready to Become Dewas Danantara? Gus Yahya: We Must See the Tasks First
Republika | Local Language | News
Apa Itu Danantara yang Baru Diluncurkan Presiden Prabowo? Simak Penjelasannya di Sini
What is Danantara that President Prabowo Just Launched? Check Out the Explanation Here
JPNN | Local Language | News
Ini Komentar Raffi Ahmad Soal Danantara
This is Raffi Ahmad's Comment on Danantara
Republika | Local Language | News
Kepala PCO Jelaskan Prabowo Libatkan Ormas Keagamanan Awasi BPI Danantara
PCO Chief Explains Prabowo Involves Religious Organizations to Monitor BPI Danantara
Republika | Local Language | News
Bakal Jadi Kepala Danantara? Begini Jawaban Menteri Rosan
Will Be Head of Danantara? Here's Minister Rosan's Answer
Republika | Local Language | News
Danantara diluncurkan, menteri hingga duta besar mulai tiba di Istana
Danantara launched, ministers to ambassadors begin arriving at the Palace
Antara News | Local Language | News
Ekonom Mewanti-Wanti, Pengelolaan Danantara Jangan jadi Bola Panas
Economists Warn, Danantara Management Should Not Become a Hot Potato
JPNN | Local Language | News
Ekonom: Kelola Danantara sesuai ESG agar tarik investor asing
Economist: Manage Danantara according to ESG to attract foreign investors
Antara News | Local Language | News
Prabowo Resmi Teken Keppres Pengangkatan Dewan Pengawas dan BPI Danantara
Prabowo Officially Signs Presidential Decree on Appointment of Danantara Supervisory Board and BPI
Republika | Local Language | News
SBY, Jokowi, dan Puan Hadir, Megawati Absen di Peluncuran BPI Danantara
SBY, Jokowi, and Puan Present, Megawati Absent from BPI Danantara Launch
Republika | Local Language | News
Hari Ini Presiden Prabowo Luncurkan Danantara
Today President Prabowo Launches Danantara
JPNN | Local Language | News
Presiden Prabowo luncurkan Danantara di Istana pada Senin
President Prabowo launched Danantara at the Palace on Monday
Antara News | Local Language | News
Pengamat: Danantara katalisator peningkatan investasi di Indonesia
Observer: Danantara is a catalyst for increasing investment in Indonesia
Antara News | Local Language | News
Prabowo, SBY, dan Jokowi tiba naik mobil buggy di Peluncuran Danantara
Prabowo, SBY, and Jokowi arrive in a buggy at the Danantara Launch
Antara News | Local Language | News
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Renewed India-UK Trade Talks Signal Opportunity for Economic Partnership
India and the UK are poised to resume free trade agreement (FTA) negotiations after an eight-month hiatus, with discussions scheduled to begin on Monday.
The renewed talks will focus on key sectors such as advanced manufacturing, clean energy, and financial services, which align closely with the UK's Industrial Strategy. These negotiations are part of India's broader effort to secure bilateral trade agreements, including one with the United States.
India is committed to strengthening its relationship with the UK as it aims for a threefold increase in exports by 2030, contributing to its broader $1 trillion merchandise export goal by FY30.
In the 2023-24 fiscal year, bilateral trade amounted to $21.33 billion, with India exporting $12.98 billion and importing $8.41 billion. The UK remains a vital partner for India, consistently ranking among its top five export destinations.
Central to these negotiations are issues such as tariff concessions on electric vehicles, alcoholic beverages, and services. India seeks improved access for its skilled professionals in the UK, while the UK is pushing for reduced import duties on products like Scotch whisky and automobiles.
Additionally, there are opportunities for UK businesses in India's service sectors such as telecommunications and finance, with insurance particularly in focus. India has proposed lifting the foreign direct investment limit to 100% in this sector.
As part of these efforts, UK Investment Minister Poppy Gustafsson is visiting India to promote the UK as an attractive business destination amidst rising Indian investment in the UK.
Leading the discussions are UK Business and Trade Secretary Jonathan Reynolds and Indian Commerce Minister Piyush Goyal. They will address significant concerns, including visa regulations for Indian students and professionals, and access for British service industries.
Achieving a deal with India is a top priority for the Labour Government, which is focusing on economic growth and stability. During his visit, Reynolds will tour the National Crafts Museum in Delhi and BT India's office in Gurugram, while Business Minister Poppy Gustafsson will meet with investors in Mumbai and Bengaluru.
While both countries aimed to finalize the deal by October 2022, talks had stalled over tariffs, market access, and professional mobility. However, Reynolds and Goyal are scheduled to meet on February 24, and the next round of negotiations is planned for February 25, hinting at the prospect of a swift 15th round.
The UK perceives this as a fresh start under Labour Prime Minister Keir Starmer, who is eager to reassess trade dynamics. British interests extend beyond trade, encompassing security, education, technology, and climate change partnerships.
Critical agenda points include Indian student and professional mobility, tariffs on electric vehicles and alcoholic beverages, and the access of British financial services to the Indian market. However, the proposed UK carbon border tax, slated for implementation by January 2027, remains contentious due to India's opposition to a similar EU measure.
Despite previous political instabilities that hindered progress, both nations remain optimistic about achieving a favorable outcome, addressing issues like migration and business visa reforms.
References for this Development
UK-India free trade talks relaunch as Business Secretary heads to New Delhi
Evening Standard | English | News
India, UK to resume FTA talks after one-year gap
Hindustan Times | English | News
India, UK to relaunch FTA talks Monday
The Economic Times | English | News
Operations Media
Key News Articles by Operations Category
Demographics
S. Korea enters era of consistent workforce decline
South Korea | Chosun Ilbo | English | News| Feb. 25, 2025
South Korea is entering a demographic burden period in 2025, marked by a diminishing workforce that threatens economic growth. Projections indicate an annual decline in employed individuals, with estimates of a decrease between 12,000 to 60,000 this year due to a shrinking working-age population. This shift raises concerns over potential long-term stagnation driven by reduced consumer spending, skill transfer, and tax revenue.
Economic Growth
Report warns of explosive debt increase, growth freeze
South Korea | Korea Herald | English | News| Feb. 25, 2025
South Korea's national debt is projected to surge to 7,000 trillion won ($4.87 trillion) by 2072, a sixfold increase from the current 1,270 trillion won. The National Assembly Budget Office's report attributes this alarming forecast to the rapid aging population, which threatens workforce productivity and economic stability. By 2050, debt is expected to surpass the country's production capacity, leading to a debt-to-GDP ratio rise from 48 percent to 173 percent.
Financial System Problems
Banks, others see rising bad loans
South Korea | Yonhap | English | News| Feb. 25, 2025
South Korea's financial institutions are grappling with rising bad loans due to a sluggish economy and real estate-related loan delays. As of January, bad loans reached 23.8 trillion won (about US$16.6 billion), up from 20.6 trillion won in December, and significantly higher than 10.5 trillion won at the end of 2022.
Real Estate
Vietnam proposes new real estate policies for foreigners in financial centers
Vietnam | Vietnam Net - E | English | News| Feb. 25, 2025
The Ministry of Planning and Investment (MPI) in Vietnam has proposed policies allowing foreign nationals in the financial sector to buy and sell properties in major financial centers. This initiative aims to enhance property rights for foreign investors and boost investment attractiveness. Key features include extending land-use rights from 50 to 70 years and allowing foreign enterprises to mortgage land-use rights without payment restrictions.
Tech Development/Adoption
Japan's digital deficit hits record 6.5 trillion yen as U.S. tech reigns
Japan | Kyodo News | English | News| Feb. 25, 2025
Japan's digital trade deficit hit a record 6.46 trillion yen ($43 billion) in 2024, as per the Finance Ministry. This figure has more than tripled since 2014, when the deficit stood at 2.02 trillion yen. The growing reliance on U.S. tech providers like Amazon, Microsoft, and Google drives this imbalance, as companies seek efficiency amid a lack of domestic alternatives.
Trade Issues and Numbers
中國鋼材倒貨 韓越分祭反傾銷稅
China's steel exports to South Korea and Vietnam impose anti-dumping duties
Taiwan | Liberty Times Net | Local Language | News| Feb. 25, 2025
In response to China's steel dumping, South Korea will impose anti-dumping duties of 27.91% to 38.02% on Chinese thick steel plates. This decision follows a significant increase in Chinese steel imports since the 2015 free trade agreement, which allowed these products to enter South Korea tariff-free. Imports have risen dramatically, from 44,000 tons in 2021 to 138,000 tons by 2024, now making up 65% of total imports, severely impacting local steel producers.
Hyundai Steel filed an anti-dumping complaint, arguing that the low-cost Chinese steel threatens domestic businesses. A preliminary investigation confirmed evidence of dumping and resultant damage, prompting the Ministry of Trade, Industry and Energy to impose provisional tariffs.
Vietnam's Ministry of Industry and Trade also announced a 19.5% tariff on certain hot-rolled steel items from China, effective next month. This move targets major Chinese manufacturers, driven by local complaints about dumped imports. Additionally, the U.S. has announced a 25% tariff on all steel and aluminum imports, including those from China.
Business Asia covers business, economics, and operations-related issues for South Korea, Japan, China, Taiwan, India, and Vietnam.
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