Asia's manufacturing is still sick: Hailed for successfully managing the public health challenges of the pandemic, some of Asia's exporting powerhouses are now coming to terms with the economic impact of the crisis. A series of surveys released Monday show that the continent's crucial manufacturing sector took another hit last month as global trade continued to contract. While China's manufacturing activity expanded in May, showing some signs of a modest economic comeback, some of the region's export heavyweights have suffered their sharpest economic downturns in over a decade, as new export orders from their main trade partners remain slim. South Korea, for example, has been hailed for its apt management of the health crisis, but its exports have now slumped for three months straight, with shipments contracting 23.7 per cent year-on-year in May. Similarly, Taiwan has recorded just 7 deaths from the virus, but its manufacturing activity fell again in May from the previous month, while the IMF predicts that the economic bloc made up of Indonesia, Malaysia, Philippines, Thailand, and Vietnam will grow at -0.6 percent this year, down from its earlier estimate of +4.8 percent. Analysts now say that the region's economic rebound could take way longer than previously predicted.
Trump promised a statement about China. Today's announcement was not about China. Most significant was about the World Health Organization, which is a distraction for Trump because it's weaker. They're reliant on the US, have no ability to hit back. But announcing they're pulling all funding and pulling out of the World Health Organization, the international governmental organization tasked with responding to pandemics, in the middle of a pandemic, is one of the stupidest foreign policy decisions that President Trump could make.
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The world's worst health crisis in a hundred years might not seem like the best time for the World Health Organization's biggest financial supporter to threaten to pull the plug on its operations, but that's where we are. On Friday afternoon, President Trump announced that the US is withdrawing entirely from the Organization.
The move comes ten days after the White House sent a withering four-page letter to the organization's Director General which accused the organization of ignoring early warnings about the virus' spread and bowing to Chinese efforts to downplay its severity. The letter closed with a threat to withdraw within 30 days unless the WHO shaped up to better serve "American interests." In the end, the Administration had patience only for 10 days after all.
Coronavirus Politics Daily: Chile's miners in a jam, sexist attacks in Italy, climate summit postponed
Chile's miners caught in a COVID bind: Even as coronavirus swept their country, Chile's hardy copper miners, whose industry accounts for a full ten percent of Chile's economy, continued to go to work. But now, as their unions prepare for new contract negotiations and seek bonuses for having worked amid COVID-19 hazards, they might be stuck in a tight shaft. For one thing, coronavirus related economic shutdowns around the world, especially in copper-hungry China, have caused prices to plunge, putting copper companies in an especially tight-fisted frame of mind. For another, the pandemic has increased many companies' desire to replace more of their workers with robots — Chile's mining industry is particularly exposed. The outcome of the negotiations, which could shape life for Chile's miners for years to come, is an early bellwether of the kinds of issues that unions around the world may face as they seek to negotiate with employers in the aftermath of the pandemic.
Facing the biggest economic crisis in the EU's history, the European Commission's president, Ursula von der Leyen, pulled out all the stops this week, unveiling an unprecedented plan to boost the union's post-coronavirus recovery.
The plan: The EU would go to international capital markets to raise 750 billion euros ($830 billion). 500 billion of that would be given to member states as grants to fund economic recovery over the next seven years; the remainder would be issued as loans to be paid back to Brussels. The EU would pay back its bondholders for the full 750 billion plus interest by 2058, in part by raising new EU-wide taxes on tech companies and emissions.