DECEMBERASIA BUSINESS OUTLOOK9NEWSROOMIRAN TO RESUME NUCLEAR PROGRAM WITH EUROPEAN POWERHOUSESIn the past two years, Chinese automakers such as BYD, GAC Aion, and Chery have announced ambitious plans to establish manufacturing facilities in Thailand. BYD and GAC Aion launched operations at their factories in July, contributing to Chinese investments in Thai auto plants, which now exceed $1.4 billion. This marks a significant step in China's strategy to dominate global electric vehicle (EV) markets.Thailand's adoption of EVs is steadily growing. The Electric Vehicle Association of Thailand projects that 80,000 battery-electric vehicles (BEVs) will be registered this year. This follows the 76,739 BEVs registered in 2022, which was 6.5 times higher than the registrations in 2021. While the global pace of EV adoption has slowed in 2023, Thailand remains part of a broader trend driven by increased investment and infrastructure development.In Thailand, Chinese brands are directly competing with long-established Japanese automakers. They are gaining visibility through large-scale marketing efforts, including prominent billboards on highways and new showrooms in Bangkok. Chinese EV production facilities, located within a two-hour drive of the capital, are set to achieve a production capacity of 320,000 vehicles annually once fully operational.This strategic expansion highlights the growing influence of Chinese automakers in the global EV market, particularly in emerging economies where opportunities for rapid growth and government support for EV adoption are robust. With this momentum, Chinese brands are positioning themselves as major players in Thailand's automotive landscape. Iran has announced plans to engage in discussions about its disputed nuclear programme with three European nations--France, Germany, and Britain--on November 29, 2024, the Iranian foreign ministry confirmed on Sunday. This announcement comes shortly after the UN atomic watchdog passed a resolution critical of Tehran, which was backed by the United States and the three European powers. In reaction to the resolution, Iran has taken steps to escalate its nuclear activities, including activating advanced centrifuges to enrich uranium more efficiently.These moves further heighten tensions surrounding Iran's nuclear capabilities, which have been a longstanding point of contention. The talks, reportedly set to take place in Geneva, aim to explore diplomatic solutions ahead of the January inauguration of U.S. President-elect Donald Trump. The nuclear impasse traces back to the Trump administration's 2018 decision to withdraw from the 2015 Iran nuclear pact and reimpose sanctions. In response, Iran breached the pact's nuclear limits by enriching uranium to higher purities, rebuilding stockpiles, and advancing centrifuge technology. Efforts by President Joe Biden's administration to revive the agreement through indirect talks have failed. However, Trump has signaled a willingness to pursue a deal, stating during his campaign: "We have to make a deal because the consequences are impossible." Iranian foreign ministry spokesperson Esmaeil Baghaei confirmed that the talks would not be limited to nuclear issues but would also include regional discussions on Palestine, Lebanon, and broader geopolitical concerns. CHINESE AUTOMAKERS EYE THAILAND AS NEXT MANUFACTURING DESTINATION
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