Category: 3. Business

Our new state-of-the-art logistics centre in Lin-gang is another milestone in the implementation of Maersk’s integrated logistics strategy in the Chinese market. China is not only the world’s largest exporter but also a key consumer market. This facility significantly enhances our omnichannel fulfilment capabilities and further strengthens the connection between China and international markets. It’s another testament to our commitment towards continuously evolving our logistics solutions, helping customers overcome trade challenges and unlock new growth opportunities.

China’s international trade is evolving from an export-driven model to a more diversified approach encompassing export, import, and transshipment. Increasingly, brands are seeking unified inventory management to meet a wide range of trade demands. With the omnichannel fulfilment capabilities of this new warehouse, customers can now achieve this goal and efficiently meet both B2B and B2C requirements.

Officials relayed these messages over the last several days to stakeholders in government and private industry, according to two people with direct knowledge of the matter and a third person briefed on the conversations. A fourth person following the matter also said the administration was taking a more cautious approach to avoid provoking China. The discussions have not been previously reported.

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Trump aides are taking their time on chip tariffs as they work to avoid a rupture with Beijing over trade issues, which would risk a return to a tit-for-tat trade war and disruption of the flow of critical rare earth minerals, according to two of the people.

Those people cautioned that no decision is final until the administration signs off on it, and also said that triple-digit tariffs could be imposed at any time. The sources spoke anonymously in order to recount private conversations about policy deliberations.

A White House spokesman and a Commerce Department official, asked about the discussions, disputed that the administration had adjusted its posture.

“The Trump Administration remains committed to using every lever of executive power to reshore the manufacturing that’s critical to our national and economic security,” said the spokesman, Kush Desai. “Any anonymously-sourced reports suggesting otherwise are simply Fake News.”

The Commerce official said, “There is no change in department policy regarding semiconductor 232 tariffs.” Neither specified how soon tariffs that have been threatened since the early days of the Trump administration would be finalized, nor did they offer any other details.

The Chinese embassy in Washington said cooperation between the two countries on semiconductors is the best approach. “We welcome the U.S. to work with China to implement the consensus reached at the Busan summit between the two heads of state, create a favorable environment for mutually beneficial cooperation between companies from both sides, and jointly maintain the stability of the global semiconductor supply chain,” said the spokesperson, Liu Pengyu.

TRUMP FACES PRESSURE ON CONSUMER PRICES

Any decision by the administration to slow down or narrow the scope of chip tariffs would come at a sensitive time for Trump. The Republican president is facing growing consumer angst over prices heading into the holiday shopping season.

Hiking taxes on imported semiconductors could raise consumer costs on the gadgets they power, from refrigerators to smartphones. Reuters reported in September that the Trump administration was looking at a plan that would also tax foreign electronic devices based on the number of chips in each one.

During those conversations in Korea, U.S. officials nonetheless warned their Chinese counterparts that they could take national security steps in the coming months that Beijing might find objectionable, according to two people familiar with those conversations. Trump has bet that tariffs can revive domestic factory jobs lost over decades to countries including China.

In April, the Trump administration announced investigations into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on them, arguing that extensive reliance on their foreign production poses a national security threat.

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Myanmar’s tourism industry experienced unprecedented growth between 2011 and 2019, fueled by policy reforms, foreign investment, and international interest. The sector received significant foreign investment and saw rapid hotel expansions during this period. The upward trajectory was interrupted by the COVID-19 pandemic in 2020, followed by geopolitical challenges and natural disasters. The analytical note is intended to provide a historical context of Myanmar’s tourism developments since opening-up in 2011, while offering a narrative on the outlook ahead. This comes at a juncture where the tourism industry has rapidly evolved into a crucial pillar of Myanmar’s economy and a key driver of its social and economic development.

Introduction

The Soybean Innovation Lab (SIL) introduces readers to the question whether Sub Saharan Africa (SSA) presents a new market opportunity for US soybean growers. Over the next three weeks SIL and farmdoc will deliver three articles on the topic of Africa as a potential export market for US soybeans. The African market presents a very complex landscape. While it is large, diverse, and growing rapidly, there exists great uncertainty, significant business risks, and demand for soybean and associated products are just beginning to emerge.

This first article in the series focused on the larger food and oil trends dominating the African continent (see farmdoc daily from November 13, 2025).  Today’s article delves into the import flows of soybean, oil, and meal into Africa.  The third article will wrap up the series by outlining four specific country examples – Egypt, Ghana, Nigeria, and Tanzania – touching on their imports of soy and soy products, logistics infrastructure, and existing policies on genetically modified soybean imports. The third and final article will also include a relevant literature review on the subject of soy trade and Africa.

Soy Import Demand in SSA

Is SSA soy import demand significant, or at least potentially significant?  The answer is yes. Soy product demand is potentially very significant.  Using the soybean equivalent import metric, Africa imported a soybean equivalent of 2.1 billion bushels on average per year for the period 2010-2022.  That equals the production of about 40 million acres, about 47% of US plantings (see Figure 1).  Most of that value results from palm oil imports (64%).  Soybean oil, meal, and grain imports amount to 21%, 8%, and 7%, respectively.

The Africa soybean grain import equivalent metric comprises the sum of: 1) soybean imports, 2) soybean oil imports, 3) soybean meal imports, and 4) palm oil imports all corrected to soybean grain equivalents.  That is, based on current soy and palm product imports, were it grain, the metric captures how much grain would theoretically be demanded by Africa’s processors and manufacturers. The grain equivalent metric melds both current import activity and the potential to expand soybean export demand by taking market share from palm oil.  The equivalent metric, when measured in bushels and acres also allows comparison with US production.

These imports grew at a compound annual growth rate (CAGR) of 3.82% between 2010 and 2022.  Soybean grain imports lead the group growing at a CAGR of 8.04%, with palm oil, soybean oil, and soybean meal growing at 4.46%, 2.05%, and -0.34%, respectively.

African soybean production currently amounts to 270 million bushels or about 6% of US production and 2% of global production (see Figure 2).   Global soybean output over the last ten years has grown at a CAGR of 2% while African production has grown at an annual rate of 11%. While growing rapidly, Africa will remain far from being self- sufficient in the future and require significant imports. For example, forecasts to 2050 show Africa would still only be able to supply 35% of its current soybean equivalent import demand, even assuming the current soybean production growth rate.

Finally, African soybean processors in the 1960’s had very little use for soybean, processing less than 20% of the region’s soybean crop to produce food oil (see Figure 3).  Over time, processors have expanded capacity and by 2002 the industry switched from an under capacity position to overcapacity where local supplies were not sufficient to meet demand resulting in significant acceleration in the imports of soybean grain.  Most recently, processors are 40-60% overcapacity relative to domestic supply and import about 200 million bushels of soybeans to keep their factories operating.  Demand for soybean grain imports since 2010 has been quite fast with a compound annual growth rate of just over 8%.

Note: The Soybean Innovation Lab (SIL) at the University of Illinois is the world’s leading organization focused on establishing soybean as the feed, oil, industrial materials, and biofuels standard in Sub Sharan Africa (SSA).  SIL’s strong network across 31 countries, experienced team, track record of success, and partners on the ground support clients looking to serve the fastest growing and a potentially large new soy market.

Baker McKenzie, together with its member firms Baker McKenzie Wong & Leow in Singapore and HHP Law Firm in Indonesia, has advised Twinwood Family Holdings Limited, part of the Sampoerna Strategic Group (“Sampoerna Group”), on the divestment of its entire 65.721% stake in PT Sampoerna Agro Tbk (“SGRO”), to AGPA Pte. Ltd., a subsidiary of POSCO International Corporation (“POSCO International”; Stock Code: 047050.KS), a Korean conglomerate engaged in trading, energy, steel, and agribusiness.

The deal represents a key milestone in Sampoerna Group’s business transformation, enabling the company to seek new opportunities that are in line with current business needs and market trends. The transaction also marks a new chapter for SGRO as it embarks on the next phase of its growth under POSCO International’s management control.

Indonesia’s palm oil industry accounts for around 60% of total global production, with crude palm oil exports of about 50% of total global exports. SGRO is a leading listed company in Indonesia operating palm plantations across Sumatra and Kalimantan. It also owns a specialized palm seed subsidiary and research institute that together hold the second-largest share in the domestic palm seed market.

The cross-border deal team was led by Principals Theodore Heng (M&A) and Bee Chun Boo (M&A), with the support of Senior Associate Alexa Jiang, Associate Gerald Lim and Trainee Willy Wai in Singapore as well as Partner Daniel Pardede (M&A), Associate Partner Bimo Harimahesa (M&A), Senior Associate Bratara Damanik and Associate Naztasha Cesty (Capital Markets) in Jakarta. 

The core team was further supported by multidisciplinary experts across Singapore, Indonesia, Seoul and Dubai, including: Principals Shih Hui Lee (Tax Advisor) and Emmanuel Chua (Dispute Resolution); Partners Iqbal Darmawan (Capital Markets), Seong Hoon Yi (M&A) and Stephanie Samuell (M&A); Senior Associates Santri Satria and Shawn Joo; and Associates Ernest Low, Sharon Tay, Novrita Nadila Humaira, Devinka Adira, Samuel Evan Hardy, Jose Guardiola and Pricilla Patricia.

With more than 2,700 deal practitioners in over 40 jurisdictions, Baker McKenzie is a transactional powerhouse. The Firm has the broadest M&A footprint of any law firm globally, with more than 1,300 locally qualified and globally experienced M&A lawyers. The team excels at advising clients on their most complex, cross-border M&A matters and has advised on more than USD 600 billion in M&A transactions in the last five years (Refinitiv; 2020-2024).