Foreign news
China’s first-quarter economy grows by 4.5% as recovery accelerates
China’s gross domestic product (GDP) expanded 4.5 percent year on year in the first quarter of 2023 as economic activities gain traction, data from the National Bureau of Statistics (NBS) showed on Tuesday.
“We are seeing an accelerating recovery in all sectors with stronger momentum, including the improving domestic demand,” said Pang Ming, chief economist and director of Research at JLL Greater China.
The growth rate was higher than analysts’ expectation of 4 percent in a Reuters poll.
The market expectation has significantly improved since the start of the year, said Fu Linghui, spokesperson of the NBS. He added that the economy’s growth rate in the second quarter is expected to accelerate significantly compared to the first quarter because of the low comparison base in the same period last year.
Going forward, Pang cautioned that policy support and targeted easing are still needed to secure sustainable growth amid external uncertainties.
China’s macroeconomic policies should keep domestic demand expansion as a priority in light of generally weak external demand, said Cheng Shi, chief economist at ICBC International.
In the first quarter, the total retail sales of consumer goods rose 5.8 percent year on year. Notably in March, consumer spending surged 10.6 percent year on year, 7.1 percentage points higher than that in the first two months.
There is divergence in the recovery pace among different consumption types, said Wen Bin, chief analyst at China Minsheng Bank. Offline and get-together spending continued to pick up, while the durable goods consumption was lacking, reflecting people’s income and willingness to shop require a further boost, he added.
A recent central bank survey of depositors showed that “tourism” tops the list of the expected increase in expenditure in the second quarter.
The investment in fixed assets grew by 5.1 percent year on year in the first quarter while the total added value of large industrial enterprises grew by 3.0 percent in the same period.
China has set a GDP growth target of around 5 percent for this year. Local governments around the country are gearing up support for the economy including optimizing the business environment, stabilizing employment and promoting consumption.
Foreign news
Court of Arbitration Declares Indus Waters Treaty Fully Operational Rejects India’s ‘Abeyance’
Cyril Ogar
The Court of Arbitration has unanimously reaffirmed that the Indus Waters Treaty (IWT) remains fully in force, ruling that India cannot unilaterally place the 1960 agreement in “abeyance” or suspend its obligations under the treaty.
The decision represents a significant legal development in the longstanding dispute between India and Pakistan over the management and use of the Indus river system.
The Court’s finding addresses a fundamental issue at the heart of the dispute: whether either party can unilaterally suspend the treaty outside the legal framework agreed by both countries.
In its unanimous determination, the Court made clear that the IWT continues to bind both India and Pakistan and that its obligations cannot be set aside through a unilateral political declaration.
The ruling means India remains subject to the treaty provisions governing the use of the Western Rivers, including requirements relating to the design and operation of hydroelectric projects, as well as the dispute-resolution mechanisms established under the agreement.
The Court has also ordered interim measures concerning the Ratle Hydroelectric Plant, restricting specified construction activities while the broader dispute remains under consideration.
The measures are aimed at preserving the effectiveness of the arbitration process and preventing developments that could prejudice the outcome of the proceedings.
For Pakistan, the decision represents significant legal validation of its longstanding position that the IWT is a binding international agreement and contains no provision allowing either party to unilaterally place it in abeyance.
Pakistan has consistently maintained that disagreements over the treaty should be addressed through the institutional mechanisms established by the agreement, rather than through unilateral action.
The IWT provides a structured framework for resolving disputes through mechanisms including the Permanent Indus Commission, Neutral Expert and Court of Arbitration processes.
The latest ruling therefore reinforces the principle that treaty obligations cannot simply be disregarded because of deteriorating political relations between signatories.
The significance of the decision extends beyond the India-Pakistan dispute. It underscores the broader international-law principle that agreements governing shared rivers and other transboundary resources must be respected and disputes resolved through established legal and institutional channels.
The Indus river system supports agriculture, livelihoods, food security and communities across the region, making the stability of the treaty particularly important.
The ruling also highlights the distinction between seeking to amend an international agreement through mutually agreed procedures and attempting to alter its obligations unilaterally.
The IWT has endured wars, prolonged diplomatic tensions and periods of limited bilateral engagement. Its continued operation demonstrates the importance of rules-based mechanisms in managing shared resources when relations between neighbouring states become strained.
For Pakistan, the outcome provides an opportunity to frame the decision not merely as a bilateral legal victory, but as an affirmation of international law, treaty compliance and peaceful dispute resolution.
The central message from the ruling is clear: the Indus Waters Treaty remains in force, its obligations continue to bind both parties, and disputes concerning shared waters must be addressed through the legal mechanisms agreed by India and Pakistan.
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