Belt and Road Weekly Investor Intelligence #95
There is a strong theme in Central Asia this week and particularly with Uzbekistan, where reforms and infrastructure development are transforming BRI supply chains. This also spills over to Turkmenistan. In China, we look at the practical issues of importing goods from Taiwan and the benefits of Mongolia’s Double Taxation Convention. Elsewhere, we examine how Turkey is assuming the role of distributor of European and American products to Russia, and India’s hopes for deep road links with ASEAN.
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Practical issues in managing trade and supply chains between China and Taiwan
Import bans and stricter labeling requirements for Taiwanese products imported into mainland China have raised concerns about delays for companies engaging in import-export and those sourcing components from the Taiwan region and integration into the BRI. We discuss practical steps businesses can take to manage China-Taiwan trade and how to mitigate future risks.
China-Mongolia DTA: what are the key elements?
In recent years, the comprehensive strategic partnership between Mongolia and China has developed rapidly, resulting in an acceleration of investment and trade activities between the two countries.
The Uzbek Ministry of Transport has agreed to simplify the regulation of international freight traffic with Iran and Turkmenistan. This is important because Uzbekistan is a dual-landlocked country and must respond to neighboring states to facilitate trade.
This decision is significant because it puts more emphasis on the SCO as a developing regional trade and investment bloc instead of being seen as a security grouping. The SCO currently has eight member states: China, India, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Pakistan and Uzbekistan, while Iran is expected to join next month. Observer states include Afghanistan, Belarus and Mongolia, while Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka and Turkey are dialogue partners.
The Lapis Lazuli Corridor is a vital Eurasian land link.
India is keen to push for the expansion of the trilateral route to Cambodia, Laos and Vietnam and to increase trade with ASEAN. The highway currently connects India to Thailand via Myanmar and stretches for some 1,400 km. If extended, the new route would total approximately 3,200 km.
One way to not have a Russian presence for US and European retailers: get someone else to do it for you.
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