Thailand’s Prime Minister Srettha Thavisin defended his frequent overseas trips, citing official commitments and the need to attract foreign investment. He has made 15 overseas visits in his first 10 months as leader and will pause his travels for two months starting in March.
Foreign investment plays a crucial role in India’s economic growth strategy. To attract more investment, the government should address bottlenecks and clarify regulatory uncertainties, particularly around the definition of ‘beneficial owner’ in the Foreign Exchange Management Act. By defining thresholds, control-conferring rights, and establishing a consultation mechanism, the government can ensure that Indian companies can seamlessly receive foreign investment while safeguarding national interests.
JPMorgan Chase & Co. is set to include India in its emerging market debt index from June, with most clients ready to trade. Market feedback has been positive, with the majority of index clients already prepared to participate in the IGB market. Concerns about operational readiness and flexibility of counterparties and custodians exist, but government reforms have been made to address these issues.
Hong Kong officials emphasized the importance of countering negative perceptions about the city and implementing measures to foster economic growth and attract talent and investment. Lawmaker Lo Wai-kwok called for increased revenue and reduced expenses to address the city’s financial deficit. He also stressed the need for a multifaceted approach to economic development, including promoting international e-commerce and restoring Hong Kong’s status as an events hub. Gary Chan Hak-kan highlighted the crucial role of explaining national security legislation and its benefits to enhance confidence among foreign investors and businesses. Tang Fei emphasized the protective aspects of the law and its positive impact on the economic environment and private assets. The debate also raised concerns about the expenses incurred by former leader Carrie Lam’s office, prompting suggestions for more cost-effective arrangements.
According to the American Chamber of Commerce in China, tensions between Beijing and Washington continue to be a major concern for American businesses operating in China. Other concerns include unclear policies, rising labor costs, and data security issues. Despite Chinese officials claiming to welcome foreign investment, many businesses still face barriers to fair competition. Despite improvements in relations in 2023, the upcoming U.S. presidential election casts a shadow over future business prospects.
Ethiopia, Africa’s largest coffee producer, has revised its regulations to allow foreign companies direct access to farmers and processors for coffee purchases. The move is part of efforts to liberalize the East African nation’s economy. Previously, foreign buyers were required to purchase coffee from local companies. The new directive extends this access to other commodities as well, excluding fertilizer.
Argentina’s vast lithium reserves are attracting significant foreign investments, offering a potential catalyst for economic recovery. Amid ongoing negotiations with the IMF and a slumping lithium market, French mining company Eramine has announced an $800 million investment in Salta province, targeting exports of 4,000 tons in 2024 and ramping up to 24,000 tons annually. Emirati company UMPC has also invested $550 million in a lithium project in Catamarca, creating jobs and contributing to the local economy. These investments highlight the potential benefits of responsible resource extraction, mitigating concerns about environmental protection and inclusion. While Argentina faces economic challenges, including a projected GDP contraction, the government aims to secure an IMF deal and create a favorable investment climate. The mining sector, particularly lithium production, remains a crucial aspect of Argentina’s economic outlook.
