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China and Indonesia Ink $10 Billion Deals Focusing on Green Energy and Technology

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China and Indonesia signed agreements worth $10 billion during the Indonesia-China Business Forum held in Beijing on Sunday, marking a significant step in their growing bilateral relationship. The deals cover a wide range of sectors, including green energy, technology, food, and biotechnology. This event followed a key meeting between Chinese President Xi Jinping and Indonesian President Prabowo Subianto, who is visiting China for the first time since assuming office in October. Notably, Prabowo’s choice of China as his first official visit as president emphasizes Indonesia’s commitment to strengthening its strategic ties with Beijing.

In a joint statement released after the leaders’ discussions, China and Indonesia outlined plans to enhance cooperation in emerging sectors such as new energy vehicles, lithium batteries, photovoltaics, and the digital economy. They also agreed to work together to ensure the security of global mineral supply chains and support the global energy transition. These agreements align with both countries’ broader efforts to address climate change and secure sustainable growth.

One of the key deals signed during the forum was between Chinese battery materials producer GEM and PT Vale Indonesia. The agreement, witnessed by President Prabowo, involves the construction of a high-pressure acid leaching plant in Central Sulawesi, a crucial step in securing nickel resources. Indonesia, as the world’s largest nickel producer, plays a pivotal role in the global electric vehicle supply chain, with Chinese companies such as Tsingshan Holding Group and Zhejiang Huayou Cobalt dominating the sector.

In the technology space, Indonesian tech giant GoTo Gojek Tokopedia formed partnerships with China’s Tencent and Alibaba to advance cloud infrastructure and foster digital talent development in Indonesia. These collaborations are expected to boost Indonesia’s digital economy and increase its technological capabilities.

The two countries also agreed on several measures to improve connectivity, including the introduction of multi-entry long-term visas and the expansion of direct flights between the two nations. Additionally, the agreements included cooperation in the housing sector and initiatives to increase exports of fresh coconuts from Indonesia to China.

These developments reflect the deepening ties between China and Indonesia, positioning them as key partners in the global push for green energy solutions and digital innovation.

 

China on Track to Record Its Lowest Number of New Marriages, Official Data Shows

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China is projected to experience its lowest number of new marriages since record-keeping began, with official data revealing a significant decline in marriage registrations amid a deepening demographic crisis. This trend poses serious challenges for Beijing, as a shrinking workforce and an aging population threaten the country’s economic stability.

In the first three quarters of 2024, approximately 4.74 million couples registered their marriages, marking a 16.6% decrease from the 5.69 million reported during the same period in 2023, according to data released by the Ministry of Civil Affairs. This downward trajectory aligns with a broader trend since reaching a peak of over 13 million new marriages in 2013, and it is anticipated that marriages will fall below 2022’s record low of 6.83 million.

While there was a temporary rebound in marriages last year following the lifting of strict COVID-19 restrictions, this was largely viewed as a short-term spike driven by pent-up demand. The country has faced two consecutive years of population decline, with last year recording the lowest birth rate since the establishment of the People’s Republic in 1949. In 2022, India surpassed China to become the most populous nation in the world.

Chinese officials have identified a direct correlation between the decline in marriages and the plummeting birth rate. Social norms and governmental regulations complicate childbearing for unmarried couples, prompting officials to implement various measures aimed at reversing this trend. These include financial incentives, public awareness campaigns, and events such as blind dating and mass weddings to encourage young couples to marry and have children.

Additionally, efforts have been made to reduce the traditional “bride price,” which can hinder marriage prospects for many poorer men, particularly in rural areas. Since 2022, pilot programs initiated by China’s Family Planning Association have sought to cultivate a “new-era marriage and childbearing culture,” promoting the societal benefits of childbearing and encouraging young people to marry and start families at a suitable age.

However, these initiatives have not succeeded in persuading many young adults, who are facing high unemployment rates, rising living costs, and insufficient social welfare amid an economic downturn. As a result, many are delaying marriage and childbirth, with an increasing number choosing to forgo them altogether.

The decline in marriages and births is also attributed to decades of population control policies that have resulted in fewer young people of marriageable age. Although China ended its one-child policy in 2015, allowing for two children, and further expanded this to three children in 2021, both marriage and birth rates continue to drop.

Changing attitudes towards marriage, particularly among young women who are becoming more educated and financially independent, further complicate the situation. Many women are growing disillusioned with marriage due to prevalent workplace discrimination and traditional gender roles that often assign them the majority of childcare and household responsibilities.

In response to rising divorce rates, China implemented a mandatory 30-day “cooling-off” period for individuals filing for divorce in 2021, despite criticisms that this may complicate exits from unhappy or abusive relationships. In the first nine months of 2024, around 1.96 million couples registered for divorce, reflecting a slight decrease of 6,000 compared to the previous year.

China’s situation mirrors trends seen in other countries, such as Japan and South Korea, where falling marriage and birth rates have prompted the introduction of various incentives, including financial support and childcare subsidies, yet with limited effectiveness.

 

U.S. Elections in Spotlight as Polls Open

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What You Need to Know Today

U.S. Markets Mostly Gain After Elections
Historically, U.S. stock markets have generally experienced gains following presidential elections, despite some potential short-term volatility. According to data, the three major U.S. indices have consistently recorded average gains between Election Day and year-end since 1980.

Markets Slip Ahead of Election Day
On Monday, stock markets declined as investors braced for the U.S. presidential election and the Federal Reserve’s interest rate decision later this week. The Dow Jones Industrial Average fell by 0.61%, while the S&P 500 decreased by 0.28%. The Nasdaq Composite dropped 0.33%, closing at 18,179.98. In the Asia-Pacific region, markets exhibited mixed performances on Tuesday, with China’s CSI 300 index leading gains, rising by 2.28%.

China Reviews Plan to Raise Local Government Debt
China’s parliament standing committee reviewed a proposal on Monday to increase the local government debt limit, according to state media reports. Local authorities in China have historically managed significant public service spending but are facing challenges due to declining revenue from land sales to developers.

Poor China Takings Weigh on U.S. Firms
Weak revenue from China has negatively impacted the earnings of several U.S. companies, primarily due to low consumer confidence and rising competition from domestic brands. Among those affected are Apple, Starbucks, Nike, and LVMH, though some companies, such as Tesla and athleisure brands Adidas and Lululemon, have shown more resilience.

[PRO] Investors Bullish on Equities
Despite the heightened volatility in the market surrounding the U.S. presidential election, consumer confidence in equities has reached an all-time high, according to the latest Consumer Confidence survey from The Conference Board.

The Bottom Line
As America prepares to chart its course for the next four years in the presidential election, the global community is closely watching the proceedings. Candidates from both the Republican and Democratic parties have spent months campaigning across the nation. Polls in the Eastern states are set to open for Election Day shortly.

The contrasting views of the candidates regarding the future of America are likely to inject uncertainty into the markets. However, historical trends indicate that stocks typically rise after elections, regardless of the outcome. Analysis shows that the three major U.S. indices have experienced gains between Election Day and the end of the year in every presidential election year since 1980.

Nonetheless, investors hoping for immediate gains on Wednesday might be disappointed. The three indices have seen declines in the session and the week following Election Day in the past, though they typically recover within a month.

Lines from Frank Sinatra’s song “My Way” resonate with investors who are prepared to endure market uncertainty following the election:
“The record shows I took the blows
And did it my way.”