عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Bahrain Strengthens Economic Ties with China, Signs 8 Landmark MoUs

Bahrain Strengthens Economic Ties with China, Signs 8 Landmark MoUs
TT
TT

Bahrain Strengthens Economic Ties with China, Signs 8 Landmark MoUs

Bahrain Strengthens Economic Ties with China, Signs 8 Landmark MoUs

A senior delegation from Bahrain led by the Capital Governor Sheikh Hisham bin Abdulrahman Al Khalifa and organized by the Bahrain Economic Development Board (EDB) concluded its visit to Shenzhen, China, by signing eight Memorandums of Understanding (MoU) to strengthen cooperation between the two countries.

The Bahraini delegation met with Vice Mayor of Shenzhen, Ai Xuefeng, and a number of local government officials and business leaders at the Bahrain – Shenzhen Business Forum and the China High-Tech Fair.

An MOU between EDB and the artificial intelligence (AI) firm, Intellifusion Technologies was signed to advance AI dynamic portrait recognition that can benefit China, Bahrain, and the Middle East.

EDB partnered with Shenzhen FinTech company to establish a full mobile payment gateway in Bahrain and explore opportunities in crypto-currency, in addition to the possibility of initiating FinTech Funds.

An MOU between EDB and Shenzhen Outbound Alliance aimed at strengthening economic cooperation, information exchange, and establishing a regular communication channel for business information, and investment opportunities.

In addition, the delegation signed a memorandum with Softbank China Capital – Wonder News aiming to encourage Softbank China Capital and their investment portfolio companies to establish a presence in Bahrain and use it as a regional hub to cover the Middle East.

EDB and 4PX signed an MOU exploring the possibility of 4PX initiating and establishing funds together with Bahraini companies in order to invest in entrepreneurship in both countries.

EDB and Shenzhen Cool-hi Network Culture Technology partnered to promote the development of E-sports between the Middle East and China including hosting E-sports events.

Bahrain Chamber of Commerce and Industry (BCCI) signed an MOU with the China Council for the Promotion of International Trade Shenzhen Branch (CCPITSZ) to harness and enhance collaborative initiatives to promote trade and investments between the two countries.

After that, EDB also established an MOU with CCPITSZ to enhance collaborative initiatives between Bahrain and Shenzhen, strengthening information exchange and cooperation in economic and business activities.

Al Khalifa explained that the partnership with Shenzhen was built on common heritage as open and innovative business hubs with shared economic interests.

“We are very pleased to see our ties with this vibrant city continue to strengthen and believe these agreements will help us move towards a new era of collaboration,” he asserted.

Chief Executive of EDB Khalid al-Rumaihi also commented on the matter saying that Shenzhen is the first city with which Bahrain established a friendship city agreement in China.

He indicated that there are numerous opportunities for Chinese companies in the region, especially as the GCC markets continue to transform their economies.

“Bahrain’s location as the Gateway to the Gulf, and given the fact that it is one of the key countries along the new Belt and Road route, along with our open and liberal lifestyle, competitive business landscape, and world-class regulation makes the Kingdom the ideal location from which Chinese companies can access this $1.5 trillion GCC market,” concluded Rumaihi.

Most Viewed

 
 
Business

China Flags More Policy Measures to Bolster Yuan

People shop around for prosperity decorations for the upcoming Chinese Lunar New Year, at a New Year Bazaar in Beijing, Monday, Jan. 13, 2025. (AP)
People shop around for prosperity decorations for the upcoming Chinese Lunar New Year, at a New Year Bazaar in Beijing, Monday, Jan. 13, 2025. (AP)
TT
TT

China Flags More Policy Measures to Bolster Yuan

People shop around for prosperity decorations for the upcoming Chinese Lunar New Year, at a New Year Bazaar in Beijing, Monday, Jan. 13, 2025. (AP)
People shop around for prosperity decorations for the upcoming Chinese Lunar New Year, at a New Year Bazaar in Beijing, Monday, Jan. 13, 2025. (AP)

China announced more tools to support its weak currency on Monday, unveiling plans to park more dollars in Hong Kong to bolster the yuan and to improve capital flows by allowing companies to borrow more overseas.

A dominant dollar, sliding Chinese bond yields and the threat of higher trade barriers when Donald Trump begins his US presidency next week have left the yuan wallowing around 16-month lows, spurring the central bank into action.

The People's Bank of China (PBOC) has tried other means to arrest the sliding yuan since late last year, including warnings against speculative moves and efforts to shore up yields.

On Monday, authorities warned again against speculating against the yuan. The PBOC raised the limits for offshore borrowings by companies, ostensibly to allow more foreign exchange to flow in.

PBOC Governor Pan Gongsheng meanwhile told the Asia Financial Forum in Hong Kong that the central bank will substantially increase the proportion of China's foreign exchange reserves in Hong Kong, without providing details.

China's foreign reserves stood at around $3.2 trillion at the end of December. Not much is known about where the reserves are invested.

"Today's comments from the PBOC indicate that currency stability remains an important priority for the central bank, despite the market often discussing the possibility of intentional devaluation to offset tariffs," said Lynn Song, chief economist for Greater China at ING.

"Increasing China's foreign reserves will give more ammunition to defend the currency if the market situation eventually necessitates it."

China's onshore yuan traded at 7.3318 per dollar as of 0450 GMT on Monday, not far from a 16-month low of 7.3328 hit on Friday.

It has lost more than 3% to the dollar since the US election in early November, on worries that Trump's threats of fresh trade tariffs will heap more pressure on the struggling Chinese economy.

The central bank has been setting its official midpoint guidance on the firmer side of market projections since mid-November, which analysts say is a sign of unease over the yuan's decline.

Monday's announcements underscore the PBOC's challenges and its juggling act as it seeks to revive economic growth by keeping cash conditions easy, while also trying to douse a runaway bond rally and simultaneously stabilize the currency amid political and economic uncertainty.

It has in recent days unveiled other measures. In efforts to prevent yields from falling too much and to control circulation of yuan offshore, it said it is suspending treasury bond purchases but plans to issue huge amounts of bills in Hong Kong.

Gary Ng, senior economist at Natixis, said while China's onshore market has a much better pool of yuan deposits, Hong Kong plays a "significant role with higher turnover driven by FX swaps and spot transactions."

"This means that Hong Kong can be a venue for supporting the yuan through trading activities and potential investments."

Data on Monday showed China's exports gained momentum in December, with imports also showing recovery, although the export spike at the year-end was in part fueled by factories rushing inventory overseas as they braced for increased trade risks under a Trump presidency.