it says it wants to see the place. right? that's all for now. up. next is business after a short break. i'm half in the house. i'll have a more news for you in 45 minutes. talk to me and the team here. it's good to have with us and stay with us. if you can can you see is what old car is has to do with you production. here's a hands on the real media. now, on youtube, of all the grim economic data are coming out of china. these days, this is especially revealing for decades, foreign direct investment poured into china steadily rising rates as investors and

companies look to ride the wave of its economic boom. but it's fallen off the cliff . last year f d i and to china 1000. just $33000000000.00 per 2 year low. the consequence is a key ingredient in any economic success story. and right now it's draining away from china. what they have for the kaufman, do missions that the company is. so basically how so do not bind to the story, people in china, whether they're in the government or in the private sector. i will tell you privately, they are really worried about the countries direction and it's future in a way that they have not said. so for 30 years, china is problems have been planned to many things from the countries property crisis to the struggle to emerge from strict 0 cove and controls. put in this episode, we'll ask if there are more fundamental problems behind it's crisis of confidence over time. the temptation for that or terry is to exert their control and pick

favorites and, and demand loyalty. outweighs the market number sure. do you can when they pulled the didn't to on your, the take a right to extend out the younger people, the chinese government is that a fork does a try to bring those hundreds of millions of people who are so for into the middle class. welcome to business beyond. one of the most obvious ways to see how the chinese economy has changed in the last 2 years is by looking at its growth rate. near double digit growth has been effective life in china for much of the past 2 decades. but it plunge during the cold with 19 crisis on the post pandemic revival . quickly last steam, cdp is projected to fall to 4.6 percent this year. one of the lowest rates in 30 years of one particular story has loomed larger over the chinese economy than any other in recent times. age property. it's all about property,

china grice for you. it's has been driven by real estate multi decade markets. part of it was rational, the last sort of size 6 years is definitely increasingly irrational and 3 tiny bit, plus a pretty heavy hind from badging. that property bubble has an effect on the property crisis thrust hundreds of massively indebted companies such as ever ground into default and towards bankruptcy. has the crisis worse and huge swedes of society have been severely affected? 3 really key positive strategies economy getting hit, the household the binds and the local governments households. well that wealth is in property, terrible, but a fine assets and liabilities, their real property, it's really bad for them. and the local governments really important to him, a fact that they read online sales revenues to infrastructure to pay people salaries,

and of course land sales and crate it as well. and the property sector collapse came as china was dealing with another crisis cove and 19 pandemic. china 0 cove and policy sol, beijing exercise extremely strict controls on public and commercial life in an attempt to keep fires numbers to an absolute minimum. but unlike and most of the rest of the world restrictions and china were not listed until the end of 2022. and when that finally happened, it didn't turn out as well as many had been hoping for. when everyone else came out a tiny bit could very strong positive welts effects. everyone's house project going up. well the equity markets have gone up. so you have isn't, must have kind of wealth to wind behind reopening. who is it a complete opposite in china? equities down property down, and really there was nothing to fuel, post type, it's spending recovery. china's economic slump is larger and longer than just about any one predicted peoplesoft. china would come out of the

pandemic growing relatively well. and in fact, it has a crisis of confidence as well and truly said in spring consumption and an economy low and confidence is not easy. particularly given. the outsides rolled at the property sector had played in that regard for so long. you may go for the show with some john, so you thought that you'd too sure if i need somebody to try and touch it, what solve a contributing student? because i don't, you know, i'm a frontier trying to get in to see what i trouble. tired, doctor barton on board the show for it and i said you've got the the, the top tool of tongues you drew back towards the time that there's a long established relationship in economics between deflation and reduce consumer spending. consumers may be discouraged to spend if they expect for the price falls and compared with similar sized economies. china has

a worrying delegate deflation problem. in 2021, there was a global search of inflation and mid demik supply chain shocks and the effects of government stimulus packages. yet there was barely any inflation in china. and the country quickly entered a period of deflation. when economies like the u. s. and the euro zone economy cut their inflation rates to healthier numbers. ready ready so what's to be done? a major government stimulus package is one option. during a swamp in 2015, china devalued its currency, slashed interest rates and poured money into property an infrastructure. but fishing has been more reluctant this time. ready the same thing he is willing to take quite a lot of pay with the vision, with the goal in mind of having more sustainable long term corrects. so he wants the property set to, to contract in a controlled manner, and stay ready to set, showing her up on a move by that's gross cost going, thoughts. she's planned for a controlled real estate decline, appears to be part of

a general reluctance to pump more money into a struggling economy. if you look at some of the other part of the economy of fiscal or russian new trouble, and so so, so 20 percent an investment, so 10 percent last year. so if everything is floating down, um they will eventually get back to the parking lot in the way that the guy have been tested in a has enough resources to stimulate the economy so. so it seems to me that it's a psy quote the ink and tends to be turning to the downside at the same time test seems to be no pre of 10 being for the economy of china has taken measures to stabilize the situation difficult interest rates. they provided liquidity to banks to struggling property farms on to local authorities, but nothing seems to be working. they've done a huge variety of things over the course. they've also tried to reassure for and investors that china is good placed to do business and they can make money and get deals up. nevertheless, that's still not been enough. i think it shows a very uh,

big problem because it shows that, um, how so concrete, the kind of in the sprint do whatever policy is that, um being well. so um, which means that the cognitive will need to basic control fund even cra, roll map, or maybe from the shop for you to, to come genus to market the process of changing. so is there something else going on? although she's in pain, has been unwilling to intervene with a major stimulus package this time around. some experts say that it's his desire for the chinese communist party to have total control over the country. that's doing a lot of the damage under present. and she the chinese communist party has sort of broken a compact. they had with the drive is people that they have to come back with what i call no politics, no problem. and from 1979 to around 2015. when she consolidated power, the transcodes party basically left average chinese loan to do their business. the

safe to invest. the argument goes that under siege and paying, the chinese communist party has become so authoritarian, that it is compromised, economic development. not every problem is resolved by liberalization. and just allowing more market forces to work. you need some discipline, you need some order. you, you need some extent of, of intervention, but she's in thing really is gone too far and i think i made a challenging situation worse. and that wasn't meant to be always, it wasn't inevitable long time china watchers scott kennedy, believes that she's and things consolidation of power within the chinese communist party has made and even more controlling as the years have gone on. and the more the problems arose, the more he went back to his strategy of control. and that's

just sped up. and the pandemic really pushed those control impulses even further the tensions with the us and the west as well. and so just about every challenge he sees, he responds with the same approach. there are many recent examples to back up the point when billionaire business magnet check my criticize chinese financial regulation in october 2020. it directly led to the suspension of the ip service company and the group a huge regulatory track down on various tech companies followed. the property crisis was in part prompted by the government restricting companies could borrow an understandable move to ran in an overheated sector. perhaps on data li, the heavy 101 speaking of heavy 100, there was also 0 covert. and what seems to have changed over the course of covert

and she is the willingness to change in a positive direction that there is more control being and cause there's a more risk aversion being fail the the party is getting much more directive. and in part because of us than with extra on behaviors, but mostly domestically, is getting much more about self sufficiency in choosing winners and privileging the state sector over the private sector. such an approach has a clear impact on free enterprise. when he is young, she's down to, you know, might need to know where to go to. that's what you got. you know, that's we have some pain on both. well, you know how about there's a tight spot left both. well that's what i'm doing. so shandra bode well to go and, you know, goats or some things with the adult teeth. dr. jacob, just, you know, a medium to do the dish or feed on your engine alone. many analysts say that both

people on businesses come pick on very carefully about how to spend their money in china due to deb, it's over what kind of actions the government med tech and the future north, south, east west center, the party controls everything. that's straight out of sheets and things, recent speeches, and that's not how they're going to solve things. i know that makes them feel better, that they have things under control and they can have a superficial level of stability. but the reality is that, that just grinds people down. what happens to china is economy has profound implications. nachos for it's 1400000000 people. but for the whole world, it's economic success powered global growth for decades. and it's on rivaling, would be equally consequential as much as china is dependent on the rest of the world. we are connected to china is as well. and certainly if, if china suffers a significant economic crisis,

they'll bear the biggest front of those challenges. but the rest of the world will, will feel it in a variety of, of ways. economically. she's in pain, has spoken of the economic recovery being at a critical point. and there is still time for the countries leadership to rebuild the trust and crucially confidence the, the ability of trying to get back onto a higher growth pass though not as high as it once was, is still back in may be, it is a matter of time that it's the government, the party said some form of why we do these things specifically under the emergency of coal bed, and we're not going to do it again. and people initially are doubtful. but over a few years, they stop being quite so arbitrary intervention is baby trust to be re bored to some degree and their growth rate will go up. but such a scenario may require an ideological shift that seems ever more on likely. china

today looks richer, stronger, healthier, and safer than ever before they ought to be celebrating the successful rejuvenation of the chinese nation. instead, they're looking for conspiracies internally, externally, up everything to the leadership is glass, 3 quarters, empty, pulse of july, i 70, which i'm, that you are the session doctors, you know, module with a shelf it full of because she knew something for him. you know, i'm trying to assume about 5 to 2024 is the year of the dragon and china. symbolism will not be lost on a liter. desperately needs to fire up one of the world's most important economic engines, and extinguish debits about the part he has played in its struggles. thanks

a lot for watching. until the next time. take care the the national leaders say they don't want to be drawn into a war with russia. that's also what germany's transfer would have choice cleans, but experts assert. russia has long been at war with the west and with germany put in use as many weapons in his covert, warren cyber attacks, sabotage and this information for the latest examples of wiretapping affairs surrounding a conversation between german army officials about delivering taurus, ms. silas and to crate it took a little effort but created maximum damage to germany's image. since the war and ukraine began the west and especially germany as keeps 2nd most important supporters.