Russia's oil and gas industry is thriving, the US sets conditions for tax reduction with China, EU-Cuba cooperates on biotechnology

Russian oil and gas corporations reap the highest profits in 2024, the US sets conditions for tax reduction for Chinese goods, the EU-Cuba cooperates in the field of biotechnology, South Korea relaxes regulations on duty-free alcohol purchases for tourists... are outstanding world economic news.

In 2024, Russian oil and gas companies earned 5.7 trillion rubles ($67.3 billion), up 10% compared to 2023. (Source: Rogtec Magazine)

US economy

* The US Congressional Budget Office (CBO) warned that if the Tax Cuts and Jobs Act is extended permanently, US public debt could exceed 200% of GDP by 2047 and reach 250% of GDP by 2054.

According to the CBO, if the law is extended without any other adjustments to fiscal policy, the US public debt will reach 214% of GDP in 2054. If borrowing costs increase by 1 percentage point due to worsening financial conditions, the public debt could reach 204% of GDP in 2047 and exceed 250% of GDP in 2054.

Currently, the total US public debt is $36 trillion. Annual interest payments have exceeded $1 trillion, higher than the defense budget.

* An annual report on global threats released by US intelligence agencies on March 25 stated that China aims to surpass the US to become the leading artificial intelligence (AI) power by 2030.

The report warns that China's technological advances, along with its dominance in mining and processing some minerals critical to the semiconductor industry such as gallium and germanium, will pose challenges.

“China almost certainly has a multifaceted, national-level strategy designed to replace the United States as the world’s most influential AI power by 2030,” the report said.

* On March 26, US President Donald Trump said he could reduce tariffs on China to get Beijing's approval for the sale of popular social media platform TikTok.

Speaking to reporters at the White House, Mr. Trump said: "Maybe I'll reduce the tariffs a little bit or do something to get this done."

The US is in talks with four groups interested in acquiring TikTok, as the app faces an uncertain future in the world's largest economy.

Chinese Economy

* China and the US need to choose dialogue and win-win cooperation instead of competing in a "zero-sum game". Chinese Premier Li Qiang made the call during a meeting with US Senator Steve Daines and some US businessmen on the sidelines of the China 2025 Development Forum on March 23.

At the meeting, Li Qiang affirmed that relations between Beijing and Washington "have reached an important turning point", and expressed hope that the US will cooperate with China to promote the stable and sustainable development of bilateral relations.

European Economy

* The European Commission (EC) has just announced strong measures to strengthen protection for the European Union (EU) steel industry against the sudden increase in steel imports.

Specifically, the EC decided to significantly reduce the liberalization rate of steel imports from 1% to just 0.1%, in order to limit the amount of steel that can be imported into the EU without being subject to duties. In addition, EU member states will no longer be allowed to use surplus steel import quotas from other countries, including Russia and Belarus.

The mechanism of "carrying over" unused quotas to the next quarter was also eliminated for steel products that are under high import pressure and have low consumption.

* The EC is investigating whether China provided unfair subsidies to BYD's electric car factory in Hungary.

The European Commission is in the preliminary stages of a foreign subsidy investigation into BYD’s plant, two sources familiar with the matter told The Financial Times , a move that could escalate trade tensions with China.

If the EC concludes that BYD has benefited unfairly from state aid, it could force BYD to sell assets, reduce capacity, repay subsidies and pay fines.

* The Cuban Biopharmaceutical Industry Corporation (BioCubaFarma) announced that EU and Cuban representatives recently met to analyze investment opportunities to expand the research and production portfolio of the biotechnology industry.

With exports to more than 50 countries and a network of joint ventures abroad, the group not only generates foreign currency for the Cuban economy but also strengthens global cooperation, especially with Europe and China, said Ernesto Chico Veliz, Director of New Business Development at BioCubaFarma.

Meanwhile, the First Vice President of BioCubaFarma, Eulogio Pimentel Vázquez, stressed that the "Old Continent" is one of the main commercial partners of the companies of the Cuban pharmaceutical group in the procurement of equipment and raw materials, making it necessary to establish alliances that allow to increase the production of these products.

* UK inflation fell more than expected in February 2025, easing the burden on consumers. According to the Office for National Statistics (ONS), UK consumer prices in February 2025 increased by 2.8% compared to the same period in 2024, but down slightly from the 3.0% increase in January 2025.

Economists polled by Reuters had predicted consumer prices would rise 2.9% in February, while the Bank of England (BoE) had expected a 2.8% rise. However, economists warned that rising energy prices would soon push inflation back up.

* According to data from market analysis firm Kpler, the amount of coal shipped from Russia to China by sea in the first two weeks of March 2025 decreased by 49% compared to the same period last year.

During this period, the amount of coal transported by sea from Russia to China averaged 251,000 tons per week, a sharp decrease compared to 534,000 tons in the same period last year.

Elsewhere in Asia-Pacific, weekly seaborne coal shipments from Russia in March 2025 also fell by about 6% year-on-year to 614,000 tonnes. But compared to February 2025, this figure is still up.

* On March 23, RIA Novosti news agency cited data from the Federal Statistics Service Rosstat showing that Russian oil and gas corporations reaped the highest profits last year . According to Rosstat, in 2024, oil and gas companies earned 5,700 billion rubles ($67.3 billion), up 10% compared to 2023. Meanwhile, the profits of companies in the financial and insurance sector were 3,200 billion rubles, down 2.1%.

Economy of Japan and South Korea

* The 2025 cherry blossom season is expected to bring a record economic impact to Japan , estimated at 1.39 trillion yen ($9 billion), up 22.2 percent from last year. Part of the reason for the increase is the weak yen attracting large numbers of foreign tourists.

More than 25% of Hanami participants in 2025 are expected to be international visitors, the highest proportion ever. This year’s cherry blossom season in Japan began five days earlier than last year, with the flowers expected to bloom in Tokyo from March 28 and last until mid-April.

* Japan's core inflation slowed in February, government data released on March 21 showed, partly due to continued state subsidies for utility bills.

The core CPI, which excludes fresh food prices, rose 3% year-on-year in January, but the pace of increase slowed for the first time in four months. Although it was still higher than the expected 2.9% and much higher than the 2% target set by the Bank of Japan (BoJ), it was lower than January's 3.2%.

* On March 21, the South Korean Ministry of Finance announced that it would relax regulations on duty-free alcohol purchases for tourists visiting Jeju Island, a resort island located in the south of the country. Under the revised regulations, each tourist will be allowed to buy up to 2 liters of alcoholic beverages instead of just 2 bottles as the old limit, with a total value of up to 400 USD.

The aim of the adjustment is to enhance the shopping experience for tourists and support the duty-free retail industry on Jeju Island, according to the Ministry of Finance. The new regulations are expected to take effect from May 2025 after completing administrative procedures.

ASEAN Economy and Emerging Economies

* The Philippines has exempted foreign tourists from value-added tax (VAT) to boost tourism, as well as encourage visitors to shop and spend more when visiting the Southeast Asian country to boost economic growth, the Ministry of Finance said on March 24.

According to the ministry, non-resident tourists or foreign passport holders can apply for VAT refunds on goods purchased locally from accredited stores, with a value equivalent to at least 3,000 pesos (about 52 USD). Tourists must take the goods out of the Philippines as checked baggage within 60 days from the date of purchase.

VAT refunds only apply to retail goods, such as clothing, apparel, electronics, appliances, jewellery, accessories, souvenirs, food or non-food consumer goods and other goods for personal use.

* Bank Negara Malaysia (BNM) released its 2024 annual report showing that anti-money laundering and anti-terrorism financing are the two most penalized violations . The total fines for violating organizations amounted to 18.9 million ringgit (RM), equivalent to about 4.25 million USD.

BNM has taken 326 supervisory and enforcement actions, including forex violations. In addition, BNM has monitored 123 entities, in collaboration with the Royal Malaysian Police and the National Financial Crimes Centre. 37 cease-and-desist orders have been issued against unlicensed money service operators.

BNM also seized RM28.4 million in illegal assets, convicted 11 operators, and recovered RM125.5 million for 1.5 million customers from the offending financial institutions. BNM affirmed that it will continue to strengthen supervision to ensure the stability of the financial system.

* Recently, Indonesian President Prabowo Subianto inaugurated the Special Economic Zone (SEZ) in Batang district, Central Java province, marking an important step in the country's industrialization efforts.

The Batang Integrated Industrial Zone, covering an area of ​​4,300 hectares, is Indonesia's largest state-owned SEZ and a key component of the "Two Countries, Twin Parks" initiative between Indonesia and China.

Speaking at the inauguration ceremony of the SEZ, President Subianto expressed hope that the new industrial park could become Indonesia's "Shenzhen city".

Source: https://baoquocte.vn/kinh-te-the-gioi-nganh-dau-khi-nga-an-nen-lam-ra-my-neu-dieu-kien-giam-thue-voi-trung-quoc-eu-cua-hop-tac-ve-cong-nghe-biological-technology-308976.html