After being infamous for facing the ire of the United States, North Korea seems to have changed its way. Though, not on its security front, it is now aiming to bring about economic development. The recent meeting between the North Korean leader Kim Jong Un and Chinese President Xi Jinping happened in Beijing. The meeting had multiple agendas like economic ties, nuclear talks and a possible second summit between the U.S. President Trump and Kim.

But, there was one topic which was officially not on the agenda. But, it was considered and thought upon. It was the idea of North Korea joining China’s ambitious continent-spanning Belt and Road Initiative, a project aiming to link more than 60 countries in Asia, Europe, Africa, and the Middle East through overland and maritime routes.

After the nuclear threats, the isolation by major countries and the United Nations has been weakening the nation gradually. North Korea is now investment-hungry. And, as per experts, it is the major reason Kim has been engaging with global leaders over the past few years.

North Korea’s other Goals

As the country has been trying very hard to secure nuclear power for prospective alleged threats from the neighbors, North Korea should now move forward to have other goals as well. It has a bad economic condition, so an economic goal for the nation is the need of the hour.

Seoul based online newspaper agency NK News published last month that North Korea is in need of $7.7 million investment. And the information is on North Kore’s foreign trade ministry’s website. And, for this to be happening North Korea would definitely need the help from its rich neighbors.

Among all its neighbors, China seems the brightest for North Korea. The geography, political ideology and the history they share are quite comforting for North Korea. And, China has been the largest trading partner for the economically isolated country for last few years.

Dane Chamorro, a senior partner in the Asia Pacific division of Control Risks, a consulting firm specializing in politics, said North Korea would love to be a part of the mighty Belt and road initiative. It is only waiting for an invitation. Once it is in the group, it can utilize investments and funding to upgrade railway links, ports, and other infrastructures.

Beijing also is not immune to this idea. It has always been prompt in adding more number of partners to this multi-country project. It should be reported here that China has invited North Korea to be a part of the Belt and Road Initiative summit in 2017. But, as of now, nothing has been confirmed about the partnership.

Mintaro Oba, a former U.S. State Department official who specialized in the Koreas in the Obama administration, said having North Korea in the group will be more trouble than the economic worth. So, it is evident China will take much time to consider this.

Having countries like North Korea in a group only will give the group a bad name. It will further cement the doubts and skepticisms of the United States and India that Belt and Road initiative is only to increase the dependence of other member nations on China and with so much of skepticism, it is unlikely to flourish.

As of now, the Chinese leader has decided to go slow with North Korea. Both of these countries will have to wait and watch the global changes in the geopolitical arena. Then only China can decide whether the two countries’ relationship can go more than just security to an economic partnership.

If denuclearisation happens soon in North Korea, it is more likely that China will help the country to be able to stand on its own. China would definitely like North Korea to learn from its history. The economic type and model of economic form in China can be implemented in North Korea; if that happens, China would be the first in Asia to help the country in economic development.

And another factor in this would be South Korea. South Korea is a significant partner in BRI, and if North Korea is taken aboard, South Korea will also have to decide how much the government wants to connect the New Northern Policy with the BRI.

After the unexpected departure news of the World Bank President, the race is on to fill the post. Former UN Ambassador Nikki Haley and the daughter and advisor of President Trump, Ivanka Trump is among the contenders.

Kim surprisingly announced his departure from the World Bank after cutting short his second term. His second term was scheduled to end after three years. And, Nikki Haley stepped down of the post of Ambassador last month. Along with Ivanka and Nikki, the other names that are being floated are treasury undersecretary for international affairs David Malpass and Mark Green, head of the US Agency for International Development.

It should be reported here that Ivanka Trump had worked as the driving force behind the $1 billion Saudi Arabia supported fund to promote entrepreneurship by women. The Treasury Department denied making any comments when asked about the list of potential candidates. The department said it has got multiple recommendations for filling the post, and they are initiating an internal review process for choosing a nominee for the United States. It also added that it was looking forward to working with the Governors to select the new chief.

The World Bank was founded after World War II. And, since its inception, by convention, the United States has been choosing its chiefs. But, recently the times have changed. Kim was the first chief to face resistance in the form of competition in 2012. A nominee of the United States no longer enjoys absolute access to the post. However, the Bank’s board had assured to have an open, merit-based and transparent selection procedure for selection of the chief and it would not exclude any candidates for not being American.

The World Bank Board has said that it would start accepting nominations for the replacement of Kim by the next month and the name of the next chief would be finalized by April. It also added that the next president of the elite institution should have a proven track record of leadership and experience in managing large organizations with international exposure.

The outgoing president of the World Bank has declared that he would work with the private sector to bridge the gap in funding meant for infrastructure development for the developing and underdeveloped nations. It should be noted here that there was information about a scuffle between the Trump administration and Kim, but the information was never officially verified. So, ultimately Kim’s departure has given President Trump an opportunity to post the person of his choice.

The World Bank Group consists of five organizations which provide funds on loan to developing nations for infrastructure development. It has currently 189 member countries. Along with the World Bank, International Monetary Fund (IMF) also works on that front. And like the World Bank, IMF has been having its chiefs from European origin from the starting.

After putting Amazon’s name into the most valuable list and being the richest man on the planet, founder Jeff Bezos has another feather on his cap. He is going to have the most expensive divorce. Jeff Bezos, 54, having a total worth over $137 billion through his stake in Amazon is the richest man in the world after surpassing Bill Gates of Microsoft. He also made Amazon as the most valuable company as far as the market capitalization goes. And Jeff’s announcement regarding the divorce his wife of 25 years, MacKenzie, is likely to become a remarkable event in history.

The Couple had issued a statement on social media on Wednesday saying that after a long period of loving exploration and trial separation; they had decided to divorce and continue to share their lives as friends.

Barring a prenuptial or postnuptial agreement already in place, the Washington State law prescribes for an equal split of wealth which has been accumulated during the time of marriage. And Amazon was founded by Jeff in 1994 after getting married in 1993.

As per the reports, MacKenzie would be getting the 50 percent of total Jeff’s wealth that sums to a whopping $66billion. The divorce would make MacKenzie the richest woman in the world, and it would also make Jeff out of the richest person list. After the divorce, it is likely that Bill Gates again will be on the top spot.

MacKenzie is a Princeton graduate and currently a novelist. She met Jeff in an interview for a job at a New York hedge fund. And, they got married after six months of dating, and now the couple has four children.

If the deal happens at 50:50 settlement, Jeff will have to sell or pledge his shares to fund the alimony of such a huge amount. There are also chances of argument by the lawyers from the side of Jeff that without Jeff the worth of the shares will not be that much.

However, until the divorce is finalized, it is to be seen how much is parted to MacKenzie. But, one thing is certain that the divorce will not have many disturbances as Amazon is a public listed company and it will have severe impacts on the company’s share price. And, no one would like to put the mighty stocks of the most valued company in the world, to tumble.

After being the bestselling smartphone in China, the premium iPhones are now losing market share in the largest smartphone market in the world. To retain the customers, retailers in China are offering huge discounts as the sale of these iPhones is struggling throughout the country.

As per the customers and experts, the phones are really expensive than it should be and it also lacks innovative features like its competitor Huawei is offering. The technology giant also admitted having predicted lower sales of iPhones for the next year owing to slash in demand and the ongoing trade war between the U.S. and China. And the lowering demand in China would definitely result in a bad revenue set up for the coming quarters for Apple.

Chinese biggest iPhone retailer Suning changed the price of the 128GB version of the iPhone XR from 6,999 yuan ($1,036) to 5,799 yuan ($858) — a 1,200 yuan ($178) discount. Other third-party sellers are even offering cheaper iPhones by flash sales. One seller was selling a 256GB version of the iPhone XS Max, Apple’s most premium device, for 9,699 yuan ($1,436), way below the U.S. firm’s official selling price of 10,999 yuan ($1,628) for that smartphone.

Yet, the selling prices of these phones are way above than the selling price of iPhones in the U.S. This particular iPhone XS is sold at $1249 in the American market.

An Apple reseller, Sunion, was advertising 700 yuan off for both the 128GB and 256GB versions of the iPhone XR. Pinduoduo, an e-commerce site is selling these phones through third-party sellers after a huge discount.

The issue with Apple products in China has two answers as per the consumers. First, it has bad pricing. The iPhones are too expensive with respect to its features, and it is not bringing innovative features to the phones as some local brands are doing. Now, as per statistics, much market share of Apple has been lost to other competitors in China.

Pricing Issue-

The price of the iPhones across all the models in not only China but also in any Asian market is way above than the price in the United States. For example, Apple’s 512GB iPhone XS Max, the most expensive of the new models, costs $1,499 in the U.S. But in Asia’s largest economy, the un-discounted price is 12,799 yuan, or nearly $1,900 — this about 26 percent premium on a single phone. And the same way iPhone XR, which was expected to be the cheapest of all iPhones, is also sold at a 28 percent premium in the Chinese market.

But, Apple has blamed the rising trade war between the two largest economies for this slump in demand in China. But, experts say the trade war is just an eye-wash, but the real issue in the Chinese market is its pricing.

It is time for Apple to identify the real issue and declare competitive pricing for the phones. But, as of now, Apple has no plans to slash the price anymore in the Chinese market. It also said that the company’s offer to upgrade iPhone 7 Plus with iPhone XR is also not very successful in China as customers feel that the new phone lacks any new thing or any new inventions.

Huawei-

Though the brand has been on the news for wrong in the international market, the business of Huawei is growing like anything. This has now become the second largest smartphone seller in the world replacing Apple. It is next to only Samsung, the Korean giant.

As per the Chinese consumers, Huawei is offering the newest of features, and they feel a certain sense of connectedness in buying smartphones of the local brand. Huawei phones are cost effective and offer popular features like triple lens camera and on-screen fingerprint scanner. The brand’s flagship phone P20 Pro has taken much interest of the buyers not only in the Chinese market but also in the international market.

The upgrade-

Apple also has not been very prompt to bring upgrades to its phones. Huawei and Samsung have announced that they would bring 5G technology by the end of 2019, but Apple does not seem to bring the high-speed internet technology by late 2020. Major Chinese telecom providers like China Mobile and China Telecom are planning to roll out 5G technology by the end of 2019.

There are lot many dimensions to the poor sales of the iPhones in China. Though the pricing is a major issue, the trade war also seems to be a big factor in this. For the betterment of the global trade, the trade imbroglio should end at the earliest. After all, it is the globalization which has made the best of the many western countries, and the same opportunity should be given to other Asian countries now.

Chinese premier Li Keqiang has stated that the tax cuts in the country are intended to boost employment and foster economic stability. China had introduced a series of measures to cool its economy in 2018 and is expected to roll out more of such support measures in 2019 to combat any risks for a steep slowdown in the economy.

As per the Chinese governmental website, premier stated that all tax cuts are directed at small and micro enterprises for creating more employment. China is scheduled to lower the taxes for small businesses.

Background

China had come up with new tax cuts for businesses last year to support growth and keep the economy afloat as the fears of a trade war with the US grew. As the tensions between two of the greatest world economies soared, Beijing kept up its infrastructure expenditure and continued to assist smaller businesses as the Chinese economy cooled. The government had stated that it would follow an active fiscal policy to help the businesses in their struggle with a liquidity crunch and a fall in demand.

Taxes play a dominating part in the Chinese economy- a position which has been further augmented due to the growing uncertainties both at home and abroad. The country has managed to keep the tax policy and reform in sync. The government had merged the central and local tax departments for the ease of taxpayers. The reduction in taxes helped bring the enterprise cost down which was a great boost to the private businesses whose fate was in limbo due to increasing costs and new challenges of the market. The government thus planned more tax cuts and increased in fee reduction reforms for the prosperity of the private sector.

The private sector has a great role in the Chinese economy, and thus any tax policy should aim at the promotion of the equality principle. The private sector involves SMEs, micro businesses, hi-technology companies, etc. Tax cuts can definitely economic woes of the private sector enterprises, but there are other issues also facing the sector. These include the difficulty of the process to get loans and also other administrative hurdles and charges. Thus, merely lowering the VAT will not serve the purpose unless other related charges and policy-hurdles are also addressed. In addition, to the governmental boost, the private enterprises have to do a thorough overhaul and focus on innovation and research which is the life-line of the sector. Innovation breeds new vigor and vitality to the business. There is an increased need to work on the core-competitiveness of their businesses. This is essential for holistic development of the private sector.