MNI China Daily Summary: Thursday, March 13

MNI BRIEF: China Has Been In Communication With U.S. On Trade

MNI BRIEF: China To Enhance Customs Clearance

MNI BRIEF: China Consumer Satisfaction Up

MNI: PBOC Net Drains CNY68.6 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1728 Thurs; -0.64% Y/Y

MNI: EUROZONE JAN IP +0.8% M/M, +0% Y/Y

MNI: SWEDEN FINAL FEB CPIF +2.9% Y/Y

MNI: US FEB TREASURY BUDGET -$307.0B

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

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SOUTH AFRICA: DA Refuses To Support Budget Despite VAT Hike Reduction

SOUTH AFRICA
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  • Finance Minister Enoch Godongwana delivered his 2025 Budget Speech despite the lack of support from any parliamentary majority, proposing a phased VAT hike by 0.5p this year and by another 0.5pp in 2026. The leaders of the Democratic Alliance (DA), Economic Freedom Fighters (EFF) and uMkhonto weSizwe (MK) and several smaller parties said that they could not back the spending plan. Godongwana said that the Treasury "thoroughly examined alternatives to raising the VAT rate" but could not abandon it entirely, opting for a reduced increase instead.
  • TimesLIVE reported that DA leaders would meet in the coming days to discuss a way forward as questions about their continued participation in the Government of National Unity (GNU) continue to do the rounds. Meanwhile, during a News24 event this morning, Godongwana said that South Africa has a political problem rather than a budget problem. He accused the DA of politicking, prioritising partisan interest and breaching "all the protocols of the Cabinet."
  • Reports surrounding budget negotiations pointed to a breach of trust, which may affect cooperation between GNU parties regardless of the outcome. Tensions will likely resurface during the parliamentary debate on the 2025 Budget and there is considerable uncertainty around the capacity of GNU parties to compromise.
  • South Africa's January mining data will cross the wires at 09:30GMT/11:30SAST, with manufacturing output coming up at 11:00GMT/13:00SAST.
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  • Finance Minister Enoch Godongwana delivered his 2025 Budget Speech despite the lack of support from any parliamentary majority, proposing a phased VAT hike by 0.5p this year and by another 0.5pp in 2026. The leaders of the Democratic Alliance (DA), Economic Freedom Fighters (EFF) and uMkhonto weSizwe (MK) and several smaller parties said that they could not back the spending plan. Godongwana said that the Treasury "thoroughly examined alternatives to raising the VAT rate" but could not abandon it entirely, opting for a reduced increase instead.
  • TimesLIVE reported that DA leaders would meet in the coming days to discuss a way forward as questions about their continued participation in the Government of National Unity (GNU) continue to do the rounds. Meanwhile, during a News24 event this morning, Godongwana said that South Africa has a political problem rather than a budget problem. He accused the DA of politicking, prioritising partisan interest and breaching "all the protocols of the Cabinet."
  • Reports surrounding budget negotiations pointed to a breach of trust, which may affect cooperation between GNU parties regardless of the outcome. Tensions will likely resurface during the parliamentary debate on the 2025 Budget and there is considerable uncertainty around the capacity of GNU parties to compromise.
  • South Africa's January mining data will cross the wires at 09:30GMT/11:30SAST, with manufacturing output coming up at 11:00GMT/13:00SAST.