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Saudi Labor Reform Initiative Goes Into Effect

On Sunday, March 14, 2021, the new Labor Reform Initiative (LRI), which seeks to “improve the contractual relationship” for workers in the Kingdom’s private sector, will come into force | Asharq Al-Awsat
On Sunday, March 14, 2021, the new Labor Reform Initiative (LRI), which seeks to “improve the contractual relationship” for workers in the Kingdom’s private sector, will come into force | Asharq Al-Awsat
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Saudi Labor Reform Initiative Goes Into Effect

On Sunday, March 14, 2021, the new Labor Reform Initiative (LRI), which seeks to “improve the contractual relationship” for workers in the Kingdom’s private sector, will come into force | Asharq Al-Awsat
On Sunday, March 14, 2021, the new Labor Reform Initiative (LRI), which seeks to “improve the contractual relationship” for workers in the Kingdom’s private sector, will come into force | Asharq Al-Awsat

Saudi Arabia’s Labor Reform Initiative (LRI), which was announced last November, has gone into effect as of Sunday, bringing the kingdom a step closer to its goal of developing human capital and empowering people by fostering a competitive but fair working environment.

Experts have confirmed that the initiative is a fundamental shift in the Saudi labor market and the relationship between the employer and expatriate workers.

They stressed the importance of improving the local labor market to match the kingdom’s aspirations and attract skilled workers.

The job mobility service offered by LRI helps eliminate unfair control and weak management of employment and forces employers to abide by the contractual relationship.

The vision of the LRI is to create an attractive labor market in the Kingdom that offers flexible working conditions for the contractual workers and helps to empower and improve human resources.

Prior to the reforms, sponsored foreign workers needed to take permission from their current employer to change their job. They also required approval before traveling outside the country or undertaking their administrative tasks.

Implementing contractual relationships will enable raising the efficiency of human capital operating in the Saudi labor market, said Mercer’s CEO in Saudi Arabia Mahmoud Ghazi.

Ghazi noted that the move standardizes work mobility according to fresh procedures and conditions that stem out of competency, merit, and professionalism.

The change brought about by the LRI to labor mobility will produce a qualitative leap in improving both employer and employee rights, Ghazi told Asharq Al-Awsat, adding that this will reflect positively on attracting investors to Saudi Arabia.

Economic analyst Abdulrahman al-Jubeiri has reaffirmed that the initiative brings about a number of advantages to the Saudi labor market.

“Implementing the LRI entails a list of pros that include increasing the competitiveness of the Saudi worker, improving the local work environment, advancing Saudi Arabia’s ranking in the international competitiveness index, and reducing employment costs,” Jubeiri told Asharq Al-Awsat.

He added that the LRI also supports greater opportunities for localizing jobs, technology, and experience in the kingdom.

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China Hits Back at US and Will Raise Tariffs on American Goods from 84% to 125%

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
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China Hits Back at US and Will Raise Tariffs on American Goods from 84% to 125%

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura

China announced Friday that it will raise tariffs on US goods from 84% to 125% — the latest salvo in an escalating trade war between the world's two largest economies that has rattled markets and raised fears of a global slowdown.

While US President Donald Trump paused import taxes this week for other countries, he raised tariffs on China and they now total 145%. China has denounced the policy as “economic bullying" and promised countermeasures. The new tariffs begin Saturday.

Washington's repeated raising of tariffs “will become a joke in the history of the world economy,” a Chinese Finance Ministry spokesman said in a statement announcing the new tariffs. “However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”

China’s Commerce Ministry said it would file another lawsuit with the World Trade Organization against the US tariffs.

“There are no winners in a tariff war,” Chinese leader Xi Jinping said during a meeting with the Spanish Prime Minister Pedro Sanchez, according to a readout from state broadcaster CCTV. “For more than 70 years, China has always relied on itself ... and hard work for development, never relying on favors from anyone, and not fearing any unreasonable suppression.”

Chinese Foreign Minister Wang Yi on Friday said China stands firm against Trump’s tariffs not only to defend its own rights and interests but also to “safeguard the common interests of the international community to ensure that humanity is not dragged back into a jungle world where might makes right.”

Wang made the remarks when he met Rafael Mariano Grossi, director general of the International Atomic Energy Agency in Beijing. Wang said China will “work together with other countries to jointly resist all retrogressive actions in the world.”

Trump's on-again, off-again measures have caused alarm in stock and bond markets and led some to warn that the US could be headed for a recession. There was some relief when Trump paused the tariffs for most countries — but concerns remain since the US and China are the world's No. 1 and No. 2 economies, respectively.

“The risk that this escalating trade war tips the world into a recession is rising as the two largest and most powerful countries in the world continue to punch back with higher and higher tariffs,” Jennifer Lee, a senior economist at BMO Capital markets, wrote Friday. “No one truly knows when this will end.”

Chinese tariffs will affect goods like soybeans, aircrafts and their parts and drugs — all among the country's major imports from the US Beijing, meanwhile, suspended sorghum, poultry and bonemeal imports from some American companies last week, and put more export controls on rare earth minerals, critical for various technologies.

The United States' top imports from China, meanwhile, include electronics, like computers and cell phones, industrial equipment and toys — and consumers and businesses are likely to see prices rise on those products, with tariffs now at 145%.

Trump announced on Wednesday that China would face 125% tariffs, but he did not include a 20% tariff on China tied to its role in fentanyl production.

White House officials hope the import taxes will create more manufacturing jobs by bringing production back to the United States — a politically risky trade-off that could take years to materialize, if at all.