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US, China set to sign vital trade truce

The world's two dominant economic powers, the United States and China, are poised to sign a trade truce Wednesday that will allow businesses around the globe to breathe a sigh of relief.
Although tariffs on hundreds of billions of dollars of two-way trade will remain in place, likely at least until after President Donald Trump faces reelection in November, some of the uncertainty will go away.
And just as he is about to face an impeachment trial in the US Senate, Trump will be able to crow about a victory with his "phase one" agreement that includes pledges from China to beef up purchases of American crops and products, at least in the short term.
That has boosted stock markets worldwide in recent days, as it takes the threat of new tariffs off the table for now.
"He's delivering on all his promises, and he is building a great economy for American companies and American workers," Treasury Secretary Steven Mnuchin said late Tuesday on the eve of the signing.
"I think phase one is an enormous step in the right direction," he said in an interview on the Fox Business network.
However, the most difficult issues remain to be dealt with in "phase two" negotiations, including massive subsidies for the state industry and forced technology transfer.
And even the achievements in the deal take the relationship back to where it was before Trump took office, restoring elements he scrapped.
"The US-China phase-one deal is essentially a trade truce, with large state-directed purchases attached," economist Mary Lovely said in an analysis. "The truce is good news for the US and the world economy."
Still, the trade expert with the Peterson Institute for International Economics, cautioned that "we will continue to see the impact of this in slower investment and higher business costs."
US officials have said they will release details of the agreement set to be signed at a White House ceremony on Wednesday.
After announcing the deal on December 13, the US canceled a damaging round of new tariffs that were due to kick on December 15 and promised to slash in half the 15 percent tariffs on $120 billion imposed on September 1, on consumer goods like clothing.
Mnuchin dismissed a Bloomberg report that the initial agreement could include provisions to roll back more tariffs on China after the election.
"The tariffs will stay in place until there is a phase two. If the president gets phase two quickly, he will consider releasing tariffs. If not, there won't be any tariff relief," Mnuchin said on Bloomberg TV.
"It has nothing to do with the election or anything else."
Washington said Beijing agreed to import, over two years, $200 billion of US products above the levels in 2017 before Trump launched his offensive.
Trump has repeatedly touted the trade pact as a boon for American farmers, saying China will buy $40 to $50 billion in agricultural goods.
US farmers were hit hard by the tariff war -- notably on soybeans which saw exports to China plunged to just $3 billion from more than $12 billion in 2017. The Trump administration paid out $28 billion in aid to farmers in the last two years.
But many economists question whether they can meet that demand.
And Lovely raised a question about the wisdom of relying so heavily on the Chinese market.
"It also means Chinese retaliation could be reinstated, dampening farmers' willingness to invest to meet the very hard export targets in the deal."
US and Chinese officials say the agreement includes protections for intellectual property and addresses financial services and foreign exchange while including a provision for dispute resolution, which Mnuchin said will be binding for the first time.
Trump in August formally accused China of manipulating its currency to gain an advantage in trade and offset the impact of the tariffs.
The label was removed earlier this week.
The deal also restores a twice-yearly dialogue process that previous administrations conducted regularly but that Trump scrapped.
source: AFP
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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