Multiple financial institutions in Germany and Japan have recently downgraded their economic growth forecasts amid the U.S. tariffs hike.
Germany's economy is projected to grow by 0.1 percent in 2025, according to a joint forecast released on Thursday by the country's leading economic think-tanks, marking a sharp downgrade from the previous forecast of 0.8 percent issued in autumn 2024.
The revision is attributed to mounting headwinds from newly imposed U.S. tariffs and continued domestic policy uncertainty.
The research director of the Rhein-Westphalia Institute (RWI) for Economic Research said that geopolitical tensions and the U.S trade protectionist policies are exacerbating Germany's already strained economic situation.
Many financial institutions have lowered their economic growth forecasts for Japan this year.
Notably, Mizuho Securities revised its projection down by 0.2 percentage points, while the Daiwa Institute of Research was more pessimistic, estimating a downward revision of 0.4 percentage points for Japan's economic growth in 2025.
In particular, Japan's automobile manufacturing industry -- one of the pillars of its economy -- is expected to suffer a significant blow.
Japan's automobile industry accounts for 50 percent of the total output value of the country's manufacturing sector and provides over five million jobs, representing more than 8 percent of the nation's total workforce.
According to an analysis by the Nomura Research Institute, a 25-percent increase in U.S. auto tariffs could lead to at least a 0.2 percent decline in Japan's GDP.
Trump's tariff policy is expected to cause a contraction in domestic production and a reduction in employment opportunities, accelerating the hollowing-out of the economy and potentially plunging Japan into a downturn in a short period of time.
Germany, Japan economic growth forecasts downgraded amid US tariffs hike
The Ecological and Environmental Code solidifies China's successful reform experiences in the form of law, transforming ecological conservation into a long-term national goal for the sustainable development of the Chinese nation, said a member of the Standing Committee of the 14th National People's Congress (NPC) on Thursday.
Chinese lawmakers voted to adopt the Ecological and Environmental Code at the closing meeting of the fourth session of the 14th National People's Congress in Beijing earlier in the day.
Lyu Zhongmei, also vice chair of the NPC Environmental Protection and Resources Conservation Committee, who first proposed the drafting of the code, said in an interview with China Global Television Network (CGTN) that the adoption of the code represents a milestone in transforming the country's successful reform policies into a stable legal framework, with profound implications on both national ecological governance and people's daily lives.
"I think this actually sends a very strong signal to the world. Many of our past achievements in ecological civilization system reform were reflected through policies, with numerous reform measures introduced. This time, we are institutionalizing the successful experience of those reforms in the form of law, the most authoritative and stable way to solidify them. This shows that our efforts are not just a one-off campaign. Rather, ecological and environmental protection and the building of an ecological civilization are national goals that reflect the people’s aspiration for a better life and serve the ultimate purpose of ensuring the sustainable development of the Chinese nation," said Lyu.
Lyu highlighted that the code directly enshrines China's greenhouse gas pledge and dual-carbon goals into law, demonstrating the country's concrete actions to fulfill its international responsibilities and uphold its image as a responsible major country.
"We have directly written the commitment to fully meet greenhouse gas targets into the code, and incorporated pledges to use the 'dual carbon' goals as a driving force to advance a comprehensive green transformation of economic and social development. I think this reflects our concrete actions to honor our commitments and take responsibility to the international community, demonstrating China’s image as a responsible major country," she said.
On the topic of global trade, she explained how the code will help safeguard China's interests.
"On the one hand, we are raising standards for the green and low-carbon transition and adopting market-based measures. Some of the standards we have established based on China's actual situation and the methodologies we have created can contribute China's experience and expertise to the world. On the other hand, the Ecological and Environmental Code also includes provisions on extraterritorial application and establishes China’s own system of environmental protection standards," Lyu said.
Looking to the future, she discussed the code's role in the 15th Five-Year Plan period (2026-2030).
"During the 15th Five-Year Plan period, I believe our ecological and environmental protection will undergo fundamental changes. In the past, it relied more on strict administrative enforcement and control. But now, while not lowering strict control standards or reducing strict control measures, we must also introduce more incentive-based measures. Strict regulation will push enterprises to transform and encourage them to pursue environmental protection. The code will provide a clear, long-term and stable norm. In my view, the Ecological and Environmental Code is not only a 'tightening band' that constrains corporate behavior, but also an 'engine' that opens up new tracks for enterprises’ future development," she said.
China's ecological environmental code represents milestone in environmental rule of law
