Japan has unveiled one of its biggest economic transformation plans in decades, announcing a massive 370 trillion yen ($2.5 trillion) investment strategy through 2040. Prime Minister Sanae Takaichi's government aims to strengthen Japan's leadership in artificial intelligence, semiconductors, biotechnology, defense, clean energy, and shipbuilding while boosting long-term economic growth.

The ambitious blueprint is designed to improve productivity, reduce dependence on China, and keep Japan competitive in the global AI race. However, economists and investors are raising concerns over how the government plans to finance the enormous spending package, especially with Japan already carrying one of the world's highest public debt burdens.

Japan Unveils $2.3 Trillion Economic Plan | AI, Semiconductors & Defense Push | Wion News 

UK Prime Minister Andy Burnham has unveiled his first major policy after taking office, announcing the removal of VAT on household electricity bills to help ease the cost of living crisis. The new government says the tax cut will provide financial relief to families while maintaining fiscal responsibility. Burnham also outlined plans for regional decentralization and promised further measures to reduce everyday living costs across the United Kingdom.

New UK Prime Minister Andy Burnham announces tax relief and cost of living measures

Democratic Presidential nominee Kamala Harris promised to support business owners and their employees while outlining her plan for a new "Opportunity economy" that would create jobs and boost the economy.

US: Kamala Harris Campaign Unveils Economic Policy Book

US: Kamala Harris Outlines Vision for 'Opportunity Economy'

Chinese leaders will proceed with a closely-watched economic policy meeting in Beijing this week. China has opted not to postpone the gathering despite a surge in Covid infections. Ahead of the meeting, reports emerged saying that the Biden administration plans to place Chinese chip maker Yangtze Memory Technologies (YMTC) and 35 other Chinese firms on a trade blacklist that would prevent them from buying certain American components.

The US Department of Commerce will add the Chinese companies to a so-called Entity List as early as this week, the report said, citing a person familiar with the matter.

The conference, where officials debate policy goals for the upcoming year, was scheduled to start on Thursday. Members of the Politburo, provincial governors, and the leaders of governmental organisations and financial institutions, in addition to Xi, are present at the meeting. In the past, the summit would span three days, with a readout being released in official media at the conclusion.

This month, <a href="https://www.wionews.com/world/chinas-lac-intrusion-attempt-set-to-rock-indian-parliament-542512">China</a> abruptly put an end to its stringent Zero-Covid pursuit by abandoning many curbs,&nbsp;frequent&nbsp;testing and isolating sick patients. There are already indications that the virus is spreading quickly, notably in Beijing where there are long hospital wait times and a rising lack of fever-treating medications. Beijing's fever clinics had 22,000 patients on Sunday, 16 times more than the previous week, according to a report from the official broadcaster CCTV, quoting Li Ang, a local health commission spokeswoman.

Also read |&nbsp;<a href="https://www.wionews.com/entertainment/lifestyle/news-as-china-recalibrates-its-covid-19-response-strategy-celebs-share-their-infection-experiences-542736">As China recalibrates its COVID-19 response strategy, celebs share their infection experiences</a>

An inquiry via fax for comment was not immediately answered by the State Council Information Office.

Economists had expected authorities to suggest broader fiscal and monetary policy as well as more easing in the real estate market support growth, but the abrupt about-face has added more uncertainty to an already precarious economic picture.

Typically, the conference would also include a target for the economy's growth for the next year, but it won't be made public until the annual parliamentary gathering in March.

Also watch |&nbsp;'PLA troops tried to change status quo in Tawang', says Rajnath Singh

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The new Politburo of the Communist Party, which was assembled with Xi's loyalists after he won a third term in office in October, set the tone for the meeting last week by making a clear turn in favour of supporting growth. Senior authorities are contemplating a growth target of approximately five per cent&nbsp;for the coming year, according to a report from Bloomberg News last week.

Following a Politburo meeting, the CEWC is often convened.

According to analysts surveyed by Bloomberg, the economy would expand at a meagre 3.2 per cent&nbsp;this year, the smallest rate since the 1970s, barring the pandemic dip in 2020.

WATCH WION LIVE HERE:

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Chinese leaders will proceed with a closely-watched economic policy meeting in Beijing this week. China has opted not to postpone the gathering despite a surge in Covid infections.

Chinese leaders will proceed with a closely-watched economic policy meeting in Beijing this week. China has opted not to postpone the gathering despite a surge in Covid infections. Ahead of the meeting, reports emerged saying that the Biden administration plans to place Chinese chip maker Yangtze Memory Technologies (YMTC) and 35 other Chinese firms on a trade blacklist that would prevent them from buying certain American components. The US Department of Commerce will add the Chinese companies to a so-called Entity List as early as this week, the report said, citing a person familiar with the matter. The conference, where officials debate policy goals for the upcoming year, was scheduled to start on Thursday. Members of the Politburo, provincial governors, and the leaders of governmental organisations and financial institutions, in addition to Xi, are present at the meeting. In the past, the summit would span three days, with a readout being released in official media at the conclusion. This month, China abruptly put an end to its stringent Zero-Covid pursuit by abandoning many curbs, frequent testing and isolating sick patients. There are already indications that the virus is spreading quickly, notably in Beijing where there are long hospital wait times and a rising lack of fever-treating medications. Beijing's fever clinics had 22,000 patients on Sunday, 16 times more than the previous week, according to a report from the official broadcaster CCTV, quoting Li Ang, a local health commission spokeswoman. Also read | As China recalibrates its COVID-19 response strategy, celebs share their infection experiences An inquiry via fax for comment was not immediately answered by the State Council Information Office. Economists had expected authorities to suggest broader fiscal and monetary policy as well as more easing in the real estate market support growth, but the abrupt about-face has added more uncertainty to an already precarious economic picture. Typically, the conference would also include a target for the economy's growth for the next year, but it won't be made public until the annual parliamentary gathering in March. Also watch | 'PLA troops tried to change status quo in Tawang', says Rajnath Singh The new Politburo of the Communist Party, which was assembled with Xi's loyalists after he won a third term in office in October, set the tone for the meeting last week by making a clear turn in favour of supporting growth. Senior authorities are contemplating a growth target of approximately five per cent for the coming year, according to a report from Bloomberg News last week. Following a Politburo meeting, the CEWC is often convened. According to analysts surveyed by Bloomberg, the economy would expand at a meagre 3.2 per cent this year, the smallest rate since the 1970s, barring the pandemic dip in 2020. WATCH WION LIVE HERE:

China to go ahead with key meeting on economic policy despite surge in Covid cases

Energy prices set to soar and a heat wave plaguing the majority of England, it is not surprising that the issue of high energy bills dominated the latest clash between the tory candidates. Both Rishi Sunak and Liz Truss clash over their economic policy.

Tory Leadership Race: Rishi Sunak, Liz Truss clash over economic policies

By Mallika Singh

India on Monday <a href="https://www.wionews.com/videos/asean-summit-india-decides-not-to-join-rcep-259919">pulled out of</a> the proposed Regional Comprehensive Economic Partnership (RCEP) stating that the agreement “does not satisfactorily address India's outstanding issues and concerns.” 
&nbsp; 
Prime Minister Modi, while speaking at the Association of Southeast Asian Nations (ASEAN) summit in Thailand said that “neither the Talisman of Gandhiji nor my own conscience permits me to join the RCEP.” 
&nbsp; 
RCEP is a proposed Free Trade Agreement (FTA) that was being negotiated between 16 countries - the 10 member states of ASEAN along with India, Australia, China, Korea, Japan, and New Zealand. 
&nbsp; 
While the exact details of what the agreement entails are yet to be released, its aim, as established in 2012 in Cambodia, was to increase trade by decreasing tariffs and barriers between member states, boost exports, and create an alternative market for investment. 
&nbsp; 
India chose to withhold from joining the trade agreement due to “significant outstanding issues, which remain unresolved”.

"The present form of the RCEP agreement does not fully reflect the basic spirit and the agreed guiding principles of RCEP,” Prime Minister <a href="https://www.wionews.com/india-news/india-not-to-join-rcep-goes-against-countrys-core-interests-259904">Narendra Modi </a>said.

New Delhi’s stand on data localisation is one of the key issues at conflict as RCEP norms support the free flow of data which hampers India’s digital sovereignty. &nbsp;

According to NITI Aayog, the policy think tank of India, the country has a growing trade deficit with ASEAN member states and China. Participating in RCEP would have only widened these deficits. 
&nbsp; 
With the ongoing United States-China trade war, signing the trade agreement would have interfered with India's attempt to augment its ties with the United States.

China’s dumping policy also presented itself as a potential threat to India, where access to an open market might have lead China to dump its products in regional Indian markets. &nbsp;

India felt that there was “inadequate” protection provided to its domestic markets which would have had to suffer losses as cheaper products from China threatened to “flood” Indian markets.

The dairy industry was also expected to face the burden of the trade deal due to the introduction of competition from New Zealand and Australia.

India also failed to receive any assurance on its demand for greater market access and concerns over non-tariff barriers as China has in the past used these to curtail India’s exports to the country.

India expressed dismay at 2014 being set as the base year for tariff reductions instead of 2013. This would have gone against the country's interests as several import duties have gone up since 2014. 
&nbsp; 
RCEP is supposed to be one of the world’s largest trade pacts and the largest regional trading agreement yet. The member countries account for half of the world’s population and almost one-third of the Global Gross Domestic Product.

Becoming a member of the RCEP would have provided New Delhi with an alternative market, reducing its dependence on Western nation-states, an increase in export-oriented Foreign Direct Investment (FDI), and a boost to its service sector.

Although India currently backed out of one of the biggest free trade deals in the world, the remaining 15 members agreed on the negotiated terms and will be signing it next year. 
&nbsp;

By Mallika Singh India on Monday pulled out of the proposed Regional Comprehensive Economic Partnership (RCEP) stating that the agreement “does not satisfactorily address India's outstanding issues and concerns.

By Mallika Singh India on Monday pulled out of the proposed Regional Comprehensive Economic Partnership (RCEP) stating that the agreement “does not satisfactorily address India's outstanding issues and concerns.” Prime Minister Modi, while speaking at the Association of Southeast Asian Nations (ASEAN) summit in Thailand said that “neither the Talisman of Gandhiji nor my own conscience permits me to join the RCEP.” RCEP is a proposed Free Trade Agreement (FTA) that was being negotiated between 16 countries - the 10 member states of ASEAN along with India, Australia, China, Korea, Japan, and New Zealand. While the exact details of what the agreement entails are yet to be released, its aim, as established in 2012 in Cambodia, was to increase trade by decreasing tariffs and barriers between member states, boost exports, and create an alternative market for investment. India chose to withhold from joining the trade agreement due to “significant outstanding issues, which remain unresolved”. "The present form of the RCEP agreement does not fully reflect the basic spirit and the agreed guiding principles of RCEP,” Prime Minister Narendra Modi said. New Delhi’s stand on data localisation is one of the key issues at conflict as RCEP norms support the free flow of data which hampers India’s digital sovereignty. According to NITI Aayog, the policy think tank of India, the country has a growing trade deficit with ASEAN member states and China. Participating in RCEP would have only widened these deficits. With the ongoing United States-China trade war, signing the trade agreement would have interfered with India's attempt to augment its ties with the United States. China’s dumping policy also presented itself as a potential threat to India, where access to an open market might have lead China to dump its products in regional Indian markets. India felt that there was “inadequate” protection provided to its domestic markets which would have had to suffer losses as cheaper products from China threatened to “flood” Indian markets. The dairy industry was also expected to face the burden of the trade deal due to the introduction of competition from New Zealand and Australia. India also failed to receive any assurance on its demand for greater market access and concerns over non-tariff barriers as China has in the past used these to curtail India’s exports to the country. India expressed dismay at 2014 being set as the base year for tariff reductions instead of 2013. This would have gone against the country's interests as several import duties have gone up since 2014. RCEP is supposed to be one of the world’s largest trade pacts and the largest regional trading agreement yet. The member countries account for half of the world’s population and almost one-third of the Global Gross Domestic Product. Becoming a member of the RCEP would have provided New Delhi with an alternative market, reducing its dependence on Western nation-states, an increase in export-oriented Foreign Direct Investment (FDI), and a boost to its service sector. Although India currently backed out of one of the biggest free trade deals in the world, the remaining 15 members agreed on the negotiated terms and will be signing it next year.

RCEP pull-out: India stands by reduced trade deficits, data localisation, and enhancing domestic markets

ASEAN foreign ministers held meetings with key dialogue and strategic partners on Thursday in Bangkok during the annual gathering of the 10-member bloc.

Japan, India, Canada FMs meet ASEAN leaders

The US unemployment rate fell to its lowest level&nbsp;in 18 years&nbsp;in May, the Labor Department reported&nbsp;Friday, showing the world's biggest economy remains robust even as President Donald Trump's aggressive trade policies have stoked fears of an all-out trade war.

The jobless rate fell to 3.8 per cent from 3.9 per cent in the prior month, the lowest level since April 2000.

The last time the rate was lower than 3.8 per cent was December 1969.

With a shortage of workers reported throughout the country and across many industries and skill levels, the latest data confirmed wages are rising.

The economy added 223,000 non-farm jobs last month, stronger than the consensus forecast of economists, and better than the increase of 159,000 in April.

And the jobless rate for African American workers dropped sharply in the month to 5.9 per cent from 6.6 per cent, the lowest since the government began keeping records in 1972.

President Donald Trump has been touting that figure as a major accomplishment of his economic policies.

"We have reached yet one more historic milestone with 3.8 per cent unemployment just announced, and another all-time record low African-American unemployment," Trump said at an event shortly after the data were released.

At an event later&nbsp;Friday&nbsp;he continued to tout the strong results.

"We have such a great country right now," he said. "We have some of the best economic numbers we've ever had as a nation and that goes a long way. And we're building something very special."

But many economists and businesses have warned that jobs and economic growth could be victims of Trump's confrontational trade policies which includes steep tariffs on steel and aluminium that have hit key alli

Trump broke with protocol by tweeting about the report an hour before release time, hinting the figures would be positive.

"Looking forward to seeing the employment numbers at&nbsp;8:30&nbsp;this morning," he said on Twitter.

The data are kept strictly confidential and subject to tight security to prevent early release since investors worldwide are waiting to trade on the information.&nbsp;

The report is given to the White House a day in advance, although officials never hint at the contents.

A government rule prevents officials from commenting on sensitive data reports until one hour after release, something Trump administration officials have ignored on various occasions.

Markets did not appear to react to the tweet ahead of release time but were delighted afterwards.&nbsp;

US stocks surged after the opening bell, and mostly continued upward, with the tech-rich Nasdaq closing up 1.5 per cent, while the Dow gained 0.9 per cent.

With robust hiring continuing -- well beyond the monthly average of 179,000 for the past three months -- employers have been reporting the need to increase salaries and benefits to attract workers and keep them from being poached by competitors.

The report shows average hourly earnings rose 0.3 per cent last month to $26.92, which is 2.7 per cent higher than a year ago.

And the pace of hiring is shrinking the pool of available workers -- defined as those working or actively looking for work -- and that was the main driver behind the lower unemployment rate.&nbsp;

With wage gains finally above the Federal Reserve's two per cent inflation target, the central bank will be watching carefully to see if rising salaries translate into accelerating price increases.

However, the Fed signalled clearly that it is willing to tolerate inflation slightly above two per cent for a short period.

The central bank is widely expected to raise the benchmark lending rate at its meeting later in June, the second increase of three or four expected this year.

Hiring was strong across multiple sectors, although there was a slowdown in manufacturing -- contrary to Trump's repeated claims that the industry is adding workers due to last year's tax cuts and his trade policies, which include steep tariffs on aluminium and steel.

The manufacturing sector added 18,000 workers, the least since September 2017, retailers added 31,000, while health care rose 29,000 and construction 25,000.

Ben Herzon of IHS Markit said the labour market "is tightening rapidly" -- meaning the jobless rate is likely to fall further.

"Nearly all aspects of this report were positive and consistent with the solid growth of wage-and-salary income in the second quarter," Herzon said.

The jobless rate fell to 3.8 per cent from 3.9 per cent in the prior month, the lowest level since April 2000

The US unemployment rate fell to its lowest level in 18 years in May, the Labor Department reported Friday, showing the world's biggest economy remains robust even as President Donald Trump's aggressive trade policies have stoked fears of an all-out trade war. The jobless rate fell to 3.8 per cent from 3.9 per cent in the prior month, the lowest level since April 2000. The last time the rate was lower than 3.8 per cent was December 1969. With a shortage of workers reported throughout the country and across many industries and skill levels, the latest data confirmed wages are rising. The economy added 223,000 non-farm jobs last month, stronger than the consensus forecast of economists, and better than the increase of 159,000 in April. And the jobless rate for African American workers dropped sharply in the month to 5.9 per cent from 6.6 per cent, the lowest since the government began keeping records in 1972. President Donald Trump has been touting that figure as a major accomplishment of his economic policies. "We have reached yet one more historic milestone with 3.8 per cent unemployment just announced, and another all-time record low African-American unemployment," Trump said at an event shortly after the data were released. At an event later Friday he continued to tout the strong results. "We have such a great country right now," he said. "We have some of the best economic numbers we've ever had as a nation and that goes a long way. And we're building something very special." But many economists and businesses have warned that jobs and economic growth could be victims of Trump's confrontational trade policies which includes steep tariffs on steel and aluminium that have hit key alli Trump broke with protocol by tweeting about the report an hour before release time, hinting the figures would be positive. "Looking forward to seeing the employment numbers at 8:30 this morning," he said on Twitter. The data are kept strictly confidential and subject to tight security to prevent early release since investors worldwide are waiting to trade on the information. The report is given to the White House a day in advance, although officials never hint at the contents. A government rule prevents officials from commenting on sensitive data reports until one hour after release, something Trump administration officials have ignored on various occasions. Markets did not appear to react to the tweet ahead of release time but were delighted afterwards. US stocks surged after the opening bell, and mostly continued upward, with the tech-rich Nasdaq closing up 1.5 per cent, while the Dow gained 0.9 per cent. With robust hiring continuing -- well beyond the monthly average of 179,000 for the past three months -- employers have been reporting the need to increase salaries and benefits to attract workers and keep them from being poached by competitors. The report shows average hourly earnings rose 0.3 per cent last month to $26.92, which is 2.7 per cent higher than a year ago. And the pace of hiring is shrinking the pool of available workers -- defined as those working or actively looking for work -- and that was the main driver behind the lower unemployment rate. With wage gains finally above the Federal Reserve's two per cent inflation target, the central bank will be watching carefully to see if rising salaries translate into accelerating price increases. However, the Fed signalled clearly that it is willing to tolerate inflation slightly above two per cent for a short period. The central bank is widely expected to raise the benchmark lending rate at its meeting later in June, the second increase of three or four expected this year. Hiring was strong across multiple sectors, although there was a slowdown in manufacturing -- contrary to Trump's repeated claims that the industry is adding workers due to last year's tax cuts and his trade policies, which include steep tariffs on aluminium and steel. The manufacturing sector added 18,000 workers, the least since September 2017, retailers added 31,000, while health care rose 29,000 and construction 25,000. Ben Herzon of IHS Markit said the labour market "is tightening rapidly" -- meaning the jobless rate is likely to fall further. "Nearly all aspects of this report were positive and consistent with the solid growth of wage-and-salary income in the second quarter," Herzon said.

US unemployment falls to 3.8% in May, lowest in 18 years

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