President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
The leaders of Ethiopia and Eritrea declared the end of a two decades-long war on Monday, and announced a raft of agreements which could boost economic growth in the East Africa region.
“The state of war has come to an end,” tweeted Fitsum Arega on Monday, the chief of staff to Ethiopian Prime Minister Abiy Ahmed.
Abiy and Eritrean President Isaias Afwerki signed a Joint Declaration of Peace and Friendship which included the agreement that “Transport, trade and telecommunication ties will be resumed; diplomatic ties and activities renewed, " according to a tweet by Eritrean Minister of Information Yemane Meskel.
Abiy arrived in the Eritrean capital of Asmara on Sunday. After talks with his counterpart Afwerki, a series of deals were announced, including Ethiopia’s access to an unnamed Eritrean port on the Red Sea, the reopening of embassies in both countries and the restoration of telephone lines that have been severed for two decades.
According to Reuters, the prices of Ethiopian dollar-denominated bonds hit their highest in 10 weeks on Monday, following news of the rapprochement. The news agency also reported thousands of Eritreans cheering Abiy’s arrival on Sunday, waving the flags of both countries.
Meanwhile, U.N. Secretary General Antonio Gutteres is to meet with Abiy in the Ethiopian capital of Addis Ababa on Monday, sources told Reuters.
The news comes as Ethiopia continues its emergence as a regional manufacturing hub. The landlocked country on the Horn of Africa has seen double-digit economic growth as recently as 2017 thanks to its state-led development model which has espoused the mass opening of industrial parks.
According to Jared Jeffery, political analyst for Ethiopia at NKC African Economics, warmer relations will benefit Ethiopia’s economy on multiple fronts.
The rapprochement “will give Ethiopia access to the underdeveloped Eritrean market,” he told CNBC via email. This, in combination with Red Sea port access allowing Ethiopia more scope to ship its goods – as well as bargaining leverage with other ports it uses – will benefit its trade.
“Ethiopia struggles with foreign exchange and this is just one more step to partly alleviate the situation,” Jeffery added.
Ethiopia is Africa’s second-most populous country with over 100 million inhabitants, and is banking on economic growth to create jobs for its youthful society.
Eritrea, a former province of Ethiopia, achieved independence in 1993. But, relations between the two countries have been marred by conflict for decades. The weekend meeting between Abiy and Afwerki was the first of its kind since a post-independence war from 1998 to 2000 which killed approximately 80,000.
Abiy’s overtures to Eritrea began last month. As part of an olive branch to end the war, he announced that flag carrier Ethiopian Airlines would resume flights to the country. Abiy himself has been in power for a matter of months, pushing a reformist agenda after his predecessor Hailemariam Desalegn resigned in February amid mass protests.
Pariah state Eritrea is considered one of the world’s most secretive countries. Its system of indefinite military conscription has caused many young men to leave the country, forming a significant proportion of African migrants crossing the Mediterranean to Europe.