Key points of the global economic news on April 3, 2026.

Photo Caption: View of a factory in Harbin, Heilongjiang Province, China. Photo: THX/VNA

1. The Chinese economy shows resilience in the face of troubles in the Middle East: The Chinese economy demonstrates remarkable resilience, with simultaneous recovery in the manufacturing and service sectors. This is the first month of the year where exports have seen growth, driven by sustained demand for AI-related products. Additionally, the Chinese stock market has outperformed many other major markets since the end of February 2026, marked by the outbreak of the Israel-Iran conflict.

2. FAO: Conflict in the Middle East drives up global food prices: According to a report published on April 3 by the Food and Agriculture Organization (FAO) of the United Nations, the food price index, which tracks fluctuations in cereals, sugar, meat, dairy products, and vegetable oils, averaged 128.5 points in March 2026, a 3 point increase (equivalent to 2.4%) from February 2026. This is the second consecutive month of growth, following a five-month decline starting in February 2026.

3. Gulf region promotes new energy corridor to the Mediterranean: Gulf states are considering extending oil pipelines beyond the Strait of Hormuz to reduce dependence on this essential maritime route for their exports. One of the main options being studied is the construction of a pipeline connecting the Arabian Peninsula to the Mediterranean via the Israeli port of Haifa. This project is seen as a strategic step in restructuring the regional energy network, especially amidst increasing geopolitical tensions.

4. Iran receives passage fees in RMB for transit through the Strait of Hormuz: Chinese cross-border payment service companies’ shares have surged following the Chinese Ministry of Commerce’s announcement of using RMB for payment of transit fees in the Strait of Hormuz to Iran. Specifically, a notice on the ministry’s website, citing a recent report from Lloyd’s List, indicates that ships pay Iran a passage fee of $2 million for this essential energy transport route, and these fees can be fully paid in RMB.

5. Japan shifts rice policy towards demand-driven production: On April 3, the Japanese government announced a shift in its policy to promote rice production based on actual demand, while implementing new measures to prevent shortages. In a Cabinet meeting held the same day, the government of Prime Minister Sanae Takaichi approved an amendment to the law on the stability of supply and prices of essential food products, which will be submitted to Parliament. The main objective of this bill is to avoid overproduction. This decision marks a change from the policy of increasing production applied in recent years to cope with rising rice prices.

6. Microsoft invests $10 billion in AI in Japan: On April 3, Brad Smith, President of Microsoft, announced that the company would invest 1.6 trillion yen ($10 billion) in Japan over four years, until 2029, to enhance infrastructure related to artificial intelligence (AI) and cloud computing. This is the largest investment ever made by Microsoft in Japan. This investment plan will focus not only on technical aspects but also on developing human resources and strengthening cybersecurity.

7. Italy postpones closure of coal-fired power plants: Italy postpones the permanent closure of its coal-fired power plants to 2038, 13 years later than originally planned. This extension is included in the latest energy law recently adopted and is part of a right-wing government initiative led by Prime Minister Giorgia Meloni to relax climate goals in response to the worsening energy crisis fueled by the Iranian conflict. This initiative contrasts with that of other EU member states, where renewable energy infrastructure acts as a buffer against the consequences of geopolitical upheavals.