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Japan Prime Minister Takaichi: TSMC's Kumamoto Chip Factory Has A Huge Economic Impact, And We Hope To Establish A Win-win Cooperative Relationship With TSMC
Japan Prime Minister Takaichi: 3-Nm Chips Used In Autonomous Vehicles And Robotics Have Great Significance For For Economic Security
Gold Association - China's 2025 Gold Consumption Down 3.57% Year-On-Year To 950.096 Metric Tons
Spot Silver Continued To Decline, Falling 2% On The Day To $86.33 Per Ounce; It Had Previously Risen More Than 2% To Above $90
Chinese President Xi To Lao President: China Looks To Carry Forward Traditional Friendship, Deepen Practical Cooperation, Strengthen Strategic Coordination
The Hang Seng Index Opened 0.82% Lower, And The Hang Seng Tech Index Fell 1.31%. Bilibili Fell More Than 4%, Tencent Music And Hua Hong Semiconductor Fell More Than 3%, And Alibaba, Kuaishou, SMIC, Meituan And Others Fell More Than 2%. Baidu Rose More Than 2% After Authorizing A Share Repurchase Program With A Total Amount Not Exceeding US$5 Billion And Expects To Announce Its First Dividend In 2026

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Aris Aris
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A US-India trade deal, spurred by new diplomacy, revitalizes ties, reshaping South Asia amid regional violence and economic shifts.
After multiple rounds of stalled negotiations, the United States and India have finalized a major trade deal, breathing new life into a floundering relationship. The agreement is a significant win for India's economy, as it slashes tariffs on products exported to one of its largest markets from 50% down to 18%.
The breakthrough comes alongside critical developments across South Asia, including escalating violence in Pakistan's Balochistan province and a new Indian budget that doubles down on manufacturing and defense.
The central question surrounding the new trade agreement is simple: why now? For years, India resisted granting greater access to politically sensitive sectors, particularly agriculture, which consistently derailed previous talks.
A History of Political Friction
Recent history has been marked by diplomatic tension. U.S. Commerce Secretary Howard Lutnick claimed that a deal was held up last summer because Indian Prime Minister Narendra Modi was unwilling to call President Donald Trump—a charge India has disputed. Some analysts also point to Trump's frustration over not receiving credit for his role in an India-Pakistan cease-fire as another obstacle.
However, the key concessions Trump cited as deal-makers were made long ago. India had already reduced its Russian crude imports following new U.S. sanctions last November, and its overall imports from the United States have been rising for years. This suggests another factor was at play.
The 'Gor Factor': A New Envoy's Impact
Much of the recent momentum can be traced to one individual: Sergio Gor, the new U.S. ambassador to India and White House special envoy. Since arriving in New Delhi, Gor has projected a strikingly positive tone about the partnership, marking a clear shift from the previous administration's approach.
Gor has engaged in a flurry of high-level meetings with key Indian officials, including:
• External Affairs Minister S. Jaishankar
• Commerce Minister Piyush Goyal
• Reserve Bank of India Governor Sanjay Malhotra
• Top military leaders
• Maharashtra Chief Minister Devendra Fadnavis
He was also instrumental in securing an invitation for India to join Pax Silica, a U.S.-led silicon supply chain initiative, after it was initially left out. Though not a career diplomat, Gor is a vocal supporter of the U.S.-India relationship, describing it at his Senate confirmation hearing as one of America's most important strategic partnerships. His influence in the White House and direct line to the president likely cleared the final hurdles.
Domestic and Geopolitical Pressures
Other factors may have also pushed the deal across the finish line. With tariffs contributing to rising food inflation in the United States, Trump likely had domestic political incentives. Additionally, the White House may have been concerned about India's new free trade agreement with the European Union.
Ultimately, the deal provides a platform for future progress and could pave the way for a delayed Quadrilateral Security Dialogue summit in New Delhi. With a tangible achievement to celebrate, Trump on Monday called Modi one of his "greatest friends."
Beyond the trade deal, other major events are reshaping the region's landscape.
Violence Escalates in Pakistan's Balochistan Province
The Balochistan Liberation Army (BLA) launched a series of coordinated attacks last Saturday across the province, including in the capital, Quetta. The violence resulted in the deaths of nearly 50 people, including 31 civilians. Pakistan's military reported that its response killed at least 145 BLA fighters, marking one of the deadliest episodes in the region in years.
While the Tehrik-i-Taliban Pakistan (TTP) often dominates headlines, the BLA has quietly strengthened its capabilities. The separatist group has successfully used local grievances over resource exploitation and state crackdowns to fuel its recruitment drives. Its effectiveness was demonstrated last March when it hijacked a passenger train. Pakistani authorities have so far struggled to contain the BLA, relying on military operations that fail to address the underlying drivers of the insurgency.
India's 2026-27 Budget Focuses on Tech and Defense
Indian Finance Minister Nirmala Sitharaman unveiled the government's 2026-27 budget, which pivots away from the populist measures of the previous year, such as middle-class tax cuts. Instead, the new budget prioritizes spending on infrastructure and manufacturing.
Key sectors set to receive a boost include semiconductors and rare-earth magnets, positioning India to compete in the modern global economy. The budget also allocates a record $85 billion to defense, a 15% increase from last year. This sharp rise is likely a response to last May's conflict with Pakistan and a strategic hedge against uncertainties in its partnership with the United States.
A Glimmer of Hope for Pakistan's Economy?
A recent Gallup survey suggests public sentiment in Pakistan is slowly improving, though it remains broadly negative. The poll, published Monday, found:
• 31% of Pakistanis felt their living standards were improving in 2025, up from a low of 15% in 2023.
• 25% believed the overall economy was getting better, compared to 12% in 2024.
• Approval of the country's political leadership rose to 36%, up from 22% the previous year.
These figures align with a recent stabilization of Pakistan's macroeconomy. However, the country continues to face high poverty rates and widespread public anger over increasing political repression.
In an interview with Newsweek, Maldivian President Mohamed Muizzu made a direct pitch to President Trump concerning the strategically vital Chagos Islands. Muizzu proposed that if sovereignty of the archipelago were transferred to the Maldives, he would guarantee the United States could continue using its military base on Diego Garcia.
Last year, the United Kingdom agreed to eventually transfer the islands to Mauritius, a deal Washington opposed over fears it would jeopardize access to the base. On Tuesday, the UK announced it had secured an agreement with the U.S. to ensure continued access for both nations.
Muizzu's offer highlights his ambition to elevate the geopolitical profile of the Maldives, an island nation best known for tourism. The move may also be a subtle appeal to the Trump family's business interests; last November, the Trump Organization announced a partnership to develop a luxury hotel in the Maldives, slated to open by 2028.
U.S. Treasury Secretary Scott Bessent on Wednesday disavowed his previous warnings about tariffs, telling Congress he was mistaken to claim they would fuel inflation. The statement marks a significant reversal from advice he gave investors at his firm, Key Square, in January 2024, before Donald Trump’s successful presidential campaign.
During a tense House Financial Services Committee hearing, Bessent directly addressed his past analysis. "If I was mistaken, I want to correct it," he stated. "And I was also mistaken when I said the tariffs could be inflationary."
Bessent, a Trump appointee, argued that the U.S. economy’s performance since the president returned to office in January 2025 has invalidated concerns over tariff-driven price hikes. He pointed to economic growth and cooling inflation as evidence.
"So tariff inflation was the dog that didn't bark," Bessent told lawmakers.
This view contrasts with recent economic data and commentary from the Federal Reserve. Last month’s Producer Price Index showed a larger-than-expected rise in December, and Fed Chair Jerome Powell recently noted that companies passing tariff costs on to consumers were keeping inflation at elevated levels.
Democrats on the committee used the hearing, which was focused on the Financial Stability Oversight Council’s annual report, to challenge Bessent on the administration's trade policy.
Representative Maxine Waters, the committee's senior Democrat, led the questioning, referencing the same Key Square investor letter that predicted tariff inflation would strengthen the dollar. She demanded a "yes" or "no" answer on whether tariffs cause inflation.
Bessent cited data from the San Francisco Federal Reserve to argue they do not. Waters countered, claiming that prices for coffee and bananas rose after tariffs were imposed on producer countries. She added that tariffs on steel, lumber, and appliances were increasing costs for homebuilders and contributing to housing inflation.
The exchange escalated when Bessent attributed rising housing costs to a surge of immigrants. Waters repeatedly cut him off, stating, "Reclaiming my time," before asking Committee Chairman French Hill, "Can you shut him up?"
Bessent's full admission that his earlier inflation warning was wrong came later in the hearing, during questioning by Democrat Sean Casten.
The hearing also explored the administration’s views on the independence of the Federal Reserve. Democrats pressed Bessent on whether he believed President Trump has the constitutional authority to fire the Fed chair or board members over policy disagreements.
Bessent stated he considers the central bank an independent agency but said he had no opinion on the president’s firing authority.
He acknowledged that "varying opinions" exist within the administration regarding the "unitary executive" theory, a legal doctrine that grants the president vast executive power. Bessent, who is not a lawyer, said the matter would ultimately be decided by the U.S. Supreme Court.
The Court heard arguments last month related to Trump's attempt last year to fire Fed Governor Lisa Cook, with a ruling anticipated by the end of June.
U.S. Treasury Secretary Scott Bessent affirmed his view of the Federal Reserve as an independent agency on Wednesday, even as a historic legal battle over presidential power puts the central bank's autonomy under a microscope.
Speaking before the House Financial Services Committee, Bessent avoided giving a legal opinion on whether a president can fire a Federal Reserve official over monetary policy disagreements. He noted the issue would ultimately be decided by the Supreme Court.
Bessent acknowledged that there were "varying opinions" within the administration regarding the "unitary executive" theory—a legal doctrine that argues for expansive presidential authority over the federal government.
The debate is far from theoretical. The Supreme Court is currently reviewing President Donald Trump’s unprecedented attempt to oust Federal Reserve Governor Lisa Cook, a case that directly challenges the central bank's independence from political pressure.
Since the Federal Reserve was established in 1913, no president has ever tried to remove one of its officials. During arguments last month, Supreme Court justices from both conservative and liberal wings expressed unease with the administration's position, signaling concern for the potential fallout.
The core of the legal debate revolves around what qualifies as sufficient "cause" under federal law to remove a Fed official and what procedures are necessary to ensure a fair process for Cook. Justices appeared hesitant to approve the Trump administration's request to lift a lower court's order that prevents Cook from being fired while the case proceeds.
President Trump's actions are rooted in an aggressive interpretation of the "unitary executive" theory. This doctrine advances a specific reading of Article II of the U.S. Constitution, which outlines presidential powers.
Key arguments of the theory include:
• The president possesses sole authority over the entire executive branch of the federal government.
• This power allows the president to remove any executive branch official.
• This authority holds even when Congress has passed laws to limit a president's ability to fire the heads of independent agencies.
This interpretation challenges the traditional American system of checks and balances, which divides power between the executive, legislative, and judicial branches.
When asked if he viewed the Fed as an executive or legislative agency, Bessent was direct: "I consider it an independent agency."
He stressed that the Federal Reserve's credibility is paramount. "I do believe that the Federal Reserve has to maintain credibility and be like Caesar's wife, beyond reproach," he stated.
In a separate exchange, Bessent linked the Fed's independence to public trust. He argued that the central bank had lost some of that trust by allowing inflation to rise unchecked, which he said "ravaged" the incomes of Americans.
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