FEBRUARYASIA BUSINESS OUTLOOK9· China-Central Asia trade surpasses $100 billion in 2025, with 12% growth.· Exports to Central Asia include EVs, lithium batteries, and mechanical products.· Growth boosts China's neighborhood diplomacy, creates jobs, and enhances trade resilience.· India and the EU sealed a landmark free trade agreement.· Tariffs on most EU exports to India will be cut or eliminated.· The deal is expected to take effect within a year.India and the EU (European Union) have signed a landmark agreement that creates the largest trade blocs in the history of the world, consisting of nearly 2 billion individuals.European Commission President, Ursula von der Leyen, called this agreement "the mother of all deals" while India's Prime Minister, Narendra Modi, stated it will allow for new economic opportunity for both sides following nearly 20 years of intermittent negotiations.The agreement encompasses approximately 25% of global GDP (Gross Domestic Product). It should greatly enhance key parts of the Indian economy, such as textiles, gems and jewelry, leather, and manufacturing.Simultaneously, many European exporters who previously paid high tariffs to sell their products in India (i.e. on average 30%) will now be able to sell their products duty-free.Almost 97% of EU goods exported to India will have their tariffs decreased or eliminated. It is projected that these reductions and eliminations will provide an annual savings of 4 Billion in tariffs for EU exporters.Machinery, chemicals, pharmaceuticals, aircraft, and automobiles are expected to be among the major beneficiaries. In addition, EU service providers will have greater access to India's financial and maritime services.This agreement comes as global trade is being realigned due to increasing levels of protectionism and geopolitical tensions between countries. It will go through several months of legal review before it can be formally signed and implemented in approximately one year. Trade between China and the five Central Asian countries reached a historic milestone in 2025, surpassing $100 billion in goods trade for the first time.According to China's Ministry of Commerce, the total trade value hit $106.3 billion, marking a 12% year-on-year growth and solidifying China's status as the largest trading partner for all five Central Asian nations.The Increase in trade has primarily been a result of the rapid increase in exports from CHINA of Mechanical / Electrical Products which now comprise more than 55% of all China's Exports to Central Asia.Products such as Electric Vehicles (EV), Photovoltaic cells, Lithium Batteries, etc. It has increased substantially. Additionally, imports from Central Asia have become more diverse, with growing demand for specialty Products including Flour, Honey and Cherries.According to analysts, this increase in trade is not only a successful trade event, but also a strategic success. It strengthens CHINA'S Neighborhood Diplomacy & Supply Chain Resilience while demonstrating Successful cooperation under the Belt and Road Initiative, Especially Hostility of Global Trade Protectionism.Moreover, this growth has created opportunities for Small Businesses, Jobs and improves logistics from Central Asia to the Chinese consumer. In the future, China intends to optimize trade structures and expands cooperation in green trade, digital trade & services. INDIA & EU SEAL LANDMARK FREE TRADE AGREEMENTCENTRAL ASIA-CHINA TRADE REACHES $100 BILLION FOR FIRST TIMENEWSROOM
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