from which cellulose is extracted glycerol, a waste by product of biodiesel is added and turns the mixture into a soft hydro out. once the hydro job is $35.00, we just need to take it out from the malls. these molecules are added to make the jo and he micro bill, then phase of these hydro job base bandages he said is moist. so do with the prevent the wound phone from trying up research, say, using waste materials and makes production cheaper than that of conventional bandages. the technology can also be used on other raw materials. the team now hoped to commercialize the bandages and scale up production. so turning food waste into something useful can become widespread. florence li, algebra. ah, this is al jazeera,

remind now of the pump stories. china has fried to canadians who were being held for nearly 3 years. michael carver, again michael 5 or were accused of espionage. they were arrested in december 2018 shortly after police and canada, arrested chinese executive monks out there is going to be time for reflections and analysis in the coming days and weeks. but the fact of the matter is, i know canadians will be incredibly happy to know. right now this friday night, michael co vega, michael's favor are on a plane and they're coming home. as i mentioned just alva, earlier among herself with fried and canada. a canadian cor discharged her after her us extradition case was dropped. she's now on her way back to tribe. the incident is strained. china's relations with the us and with canada. a group representing catholic bishops and canada has for the 1st time apologized its role in the countries residential school system. the canadian conference of catholic

bishops had been on the pressure to do so. for years earlier this year, the remains of hundreds of indigenous children were found on the grounds of former schools. the poets and the catholic church itself have refused to apologize for the church as role us president joe biden says he takes responsibility for the harsh treatment of haitian migrants on the border with mexico. he says border patrol agents will pay after they were film husing, horse rains against people trying to cross over from mexico. 3 more towns being evacuated off the explosions from interrupting volcano intensified on the canary islands. the volcano on the palmer started romping on sunday for the 1st time in 50 use. these alive pictures will the 7000 people have already fled their homes and hundreds of buildings have been destroyed by rivers of lava. as the headlines one use here on al jazeera right off the inside story,

see shortly, bye for now. teaching news you can watch or english streaming live on. i do channels plus thousands of our programs award winning documentaries. that need to put a scribe to you, choose dot com, forward slash al jazeera english time is 2nd largest property ever grant is in deep financial trouble. banks, investors, buyers and suppliers are all effected. so what would a possible collapse of this company mean for china and for the world? this is inside. ah hello, welcome to the program on kim vanelle. fears that want to chime is biggest,

probably developers could default on its debt. a rippling through global markets. the vast ever grand group has outstanding debts of more than $300000000000.00. building work on many of its projects has stopped and several investors have stopped getting paid. on friday, the company entered a 30 day grace period to make an $83000000.00 interest payment of the missing a deadline. the default of such a large company would be unprecedented for china and could send the country's outsized real estate market into free fall. the firms woes have been compared to the collapse of the lehman brothers group in the us that preceded the 2008 financial crisis. ever going to financial troubles are rooted into decades of huge borrowing. the company took out several loans to rapidly grow its real estate portfolio and expand into other sectors like health care and finance. it made millions of people homeowners in china. it's project sprang up in every province selling apartments years before they were built. but in august of asked year,

the chinese government imposed new borrowing limits to crack down on debt and ramen and inflated property market. with the growth of ours pandemic pushing down sales. the heavily indebted firm began selling of assets at large discounts. that further alarmed vestos and since shares plunging the let's introduce our guests in london. we have garrath lever, senior economist and capital economics in beijing, vic to go check the best suits out university and also vice president at the center for china and globalization. and in old orchard beach, that's a town in maine and the u. s. adam hersch visiting economists at the economic policy institute. a very welcome to you all. let's start to make sense in beijing. mr. gow, how do you think this is going to play out? is ever grand destined to default?

well, 1st of all, ever grants. problem right now is one of the biggest financial problems in china. for many a yes. and the company, which is one of the largest property developers, and also diversified into many of the sectors, has accumulated huge amount of indebtedness. however, allow me to emphasize that the debt incurred to buy ever grant is mostly a debt in itself, is not reproduced into derivatives. as what was the case in the lima brother financial crisis, in that sense, the ever grant debt situation is very, very different in many, many important ways compared with the international financial crisis breaking out in 2008. i hope china will be able to put

a good handle onto this major situation, either through bankruptcy of rule, major restructuring. and it is not going to be just one single restructuring because ever grant has operations almost everywhere in china. so on the provincial basis, i'll talk in about more than 30 probably show units of bankruptcies. so you are talking about a major financial situation and i hope it will be worked out even though it will be very painful in the process. ok. garrett leather and london, i'd like to bring you when do you agree with that assessment? what your take on where things are right now? i mean, every grand missed his deadline to pay this dollar bond coupon payment with some $8384000000.00. obviously. now there's, there's a 30 day grace period, but what does that say to you about where this is heading? yeah, i think some kind of default of every grand and bankruptcy is almost inevitable if

it's, if it's struggling to pay these coupon payments with tens of millions of pounds. it's got much bigger principal payments due early next year, which you know, which kind of 10 times the amounts if it's struggling. now, if i don't see how it's going to him, it's going to survive so much longer. i think the big question then is, is what kind of repercussions are off a chinese economy in the world economy? i think the chinese government, you'd be quite happy to see every grand go bus is made quite clear that it wants to inflict some pain on property developers of been them over speculating and, and breaking the rules. but it also wants to ensure that the chinese economy in the chinese financial system gets through this case if they do allow grants to get best, expect a lot of support for the broader economy and financial system to make sure that we don't have a full blank crisis adam, hers and maine. we spoke earlier, we reported earlier about the, the huge borrowing that has gotten the company to this point. what other fact is, has been at play o r a play here?

yeah, i think it's important to keep in mind that this huge over and deadness of ever granted is a symptom of problems in china's financial system. and never grant is not the disease and of itself. and we should be clear on what's happening, the financial distress, the ever grand finds itself in now, is a deliberate choice of policy makers that began tightening down my property developers, and the real estate sector. last year issuing the 3 red lines to guide the leveraging across the sector. so it's very much in and by a deliberate choice that chinese policymakers and financial regulators are, are moving ever grand towards this restructuring. i think the question that is out there is whether regulators really have the wherewithal to understand what all the linkages are that counter party risks, the contingent liability risks from

a default or even an orderly work out of ever grant steps and our policy makers willing and able to make the kind of tough choices that they've been putting off for decades while china has grown so overland dead. and before we move on, talk to me about some of those difficult choices. what do you mean by that? well, you know, china's growth has really been driven by the real estate sector over the past couple years. and they local governments, which have been driving a lot of the off balance sheet debt accumulation, particularly since the after the, the great recession are extremely tied up with a real estate sector from the revenues that can be raised from land leases. so these kind of special interests have been successful in organizing to influence

policy makers in beijing against taking the kind of tough measures that are needed to bring china's financial system under greater credential regulation and under greater control. and it remains to be seen whether policy makers at the center will have the political will to follow through and, and casting off the moral hazard that has been accumulating in the system. sure, victor, girl, i'd like to get your reaction to what mr. her, she said there is the situation that ever grand finds itself in symptomatic of wider problems in china's financial system. what role or what responsibility should chinese regulate his chinese policy make is have here? well 1st of all, i think the panelist was absolutely right. this one which is still developing is very much of a self inflicted wounds posture to initiated by the chinese regulators for quite

a few years. chinese government has been talking about not power chloe more money into the property market. the and the size that the properties should not be for speculation. they should be a used by the consumers, for example. and then over the past one year, also the government has significantly cut down the excess of privately owned the property developers to financing of all kinds driving up significantly, the financing cost faced by many of these property developers. and then by imposing red lines just now mentioned the regulators through new regulations, sometimes suddenly imposed, made the financing very, very difficult. and the very high cost. now, in the private market, financing probably will go up to about 15 percent or even more than 20 percent on

an annual basis. this is truly a very heavy burden for these private borrowers. and then you have a lot of 3rd party transactions that is one that created another indebtedness, etc. so eventually you are talking about the whole chain of indebtedness from one party to another party to a 3rd party to a 4th party event next. so eventually i would say the restructuring of ever ground, which is very big coverage, several sectors and evil. if we just talk about their property sector, they find themselves in opperation with a land to possession, for example, in multiple provinces in multiple cities. so the restructuring will be a very located a restructuring, and i think it will require a lot of wisdom and courage and vision on the part of the government regulators. you're talking about the central government regulators and probably your government

and local governments as well as their supply as the finance years, including banks for example. and the danger is that it breaks up and everyone just rushes into, cough how the peaceful him or herself. and the one point which can make that a bite, much less painful is to do a very overarching restructuring. because if you look at ever grand, it has several listed vehicles. one of them is actually doing quite well. whereas their main flagship listed the vehicles are really tanking as we speak. so the restructuring part, either through bankruptcy or voluntary or restructuring, especially involving the lenders and the pharmacy as of all kinds, will be a very, very sophisticated exercise. ok, now, deaf to legalize the cost to all the stakeholders. it seems that the goal,

like do you have quite an optimistic view? should restructuring happen? i want to come up to you later back in london. if a grand were to default want flow on impact. would that have both in china but also internationally? hey, very much depends on whether they can contain the problems within china. i think one advantage of being a communist state is that you do have a lot more control over your financial system than say for example, the u. s. did ahead of the layman's crisis in 2008. so it means for example, that the chinese government could force banks to continue to lend to each other. so you don't have this kind of in the big crisis that you did that you did back following layman's that being said, you know, it's, it's certainly possible with chinese government trying to click more pain on the property developers that they make a mistake. that, that, that, that things aren't, can take within china that you do get

a financial crisis for the banking sector. that you do get property developers going, going to the wall and the people losing confidence in the property market and not buying property. and you do get a big hard landing if the chinese economy. then i think there's a couple of avenues where other countries will be affected. first of all, you'll get big falls in global stock market, send a reduction risk appetite. so countries, the dependent on caps, lymphoma to fund their external deficits. again, to triple check, he's the obvious candidate, have it. there's a couple of other places in south america, you'd also see big falls in commodity crisis. so countries in africa, less than america and also a straight would also be hit hard by that. but assuming that there is some kind of pass through from china's property sector to the broader economy than other countries in asia, the export, lots of china would also be affected. so it is potentially quite big if things do go wrong from here. ok, let's pause for a moment to take a look at how ever grants. $300000000000.00 crisis compares with other debt

defaults. so in 2001 argentine it defaulted on a record. $95000000000.00 in self and bonds. its economy shrunk by 20 percent, and that led to mass unemployment riots in 2008 the new based lehman brothers. as we've been saying, that investment declared bankruptcy after owing $600000000000.00. and that led to the global financial crisis, which then caused greece to about $200000000000.00 to the u. n. t. the i m f. it was given successive bailouts. i'd like to come back to you and in person in maine . we heard there from, from guarantee earlier talking about the differences between every grant and the lehman brothers collapse. we have though, heard european and us banks trying to reuse, reassure their invest is that their exposure is limited. is it? well, certainly the nature of china, financial system being relatively close has limited exposure to external players.

i think that we want to keep in mind the political context under which this crisis is unfolding. she king is preparing to do something that is unprecedented in the modern history of china, which is to stand for a 3rd term as, as part in chairman and president of china. and it's going to be essential for him in the run up to the 20th party congress next year to continue demonstrating his position of control or perception of his control in this crisis. whatever grand is really jeopardizes that image, that she james king, is trying to project. now, as they think about this, this is a great incentive for intervening in for the crisis. and to make an

example of never grand. but as with all financial crisis, what we'll see is that the, the regulators, even if they think they have a handle on what ever grants, financial positions are in the web that it's created with throughout the, the property and financial and non financial economies in china. and around the world, they really don't have an understanding of that. that's something we can take for take for granted. and so although there's going to be a willingness to intervene, there remains open question whether the policymakers regulators are going to be able to do enough. and fast enough to, to stop the contagion. once every grand starts restructuring, real estate prices in china and across the age of region are going to drop outside of ever grand. every company that has why do what is backed up with

real estate? collateral are going to start to be seen as higher risk and under capitalized. this is going to put a damper on, on accessing to credit for all kinds of firms. households that have been in china that have been putting all of their life savings into real estate investments because there are a few other options to save in. in china. economy are going to find themselves under water. just as china is trying to make the transition from investment lay growth to consumption like growth. just as china is trying to launch a new campaign for common prosperity in the run up to she's infection mentioned at the 20th party congress. there's going to be a tremendous amount of political pressure. i want to pause with. i want to see

there, we will come back and talk about presentation things, push for common prosperity a little later. but before that, i'd like to come back to you to go. it's been reported that in a way this could have been foreseen. people reports that china, in essence has 2 property markets, one and major cities where prices is right. prices are rising, another in smaller cities where over supply has led to downward pressure. and that perhaps ever grand should have foreseen this. do you see it that way? could this have been foreseen? well, if you talk to different property developers in china, then they have sometimes very different philosophies and forecasts as to how the market will work out in the coming several years or coming couple of decades of the other hand, i think the megatron is that the chinese economy is still expanding, overnight is asian is do increasing. and there will be, you know,

a need for additional houses. apartment buildings for the hundreds of millions of migrant workers while now caught in between the urban side of the equation versus the a rural side of the equation. many of the have been working in cities for years, if not even for a couple of decades when they do not have decent housing to speak of the come, the crammed into a rented apartments in a very crowded way. so the demand is the app and it depends on how the chinese government corporate, the developers, etc. the pregnancy is really come up with a mall or coherent view as to how much weight they want to give to property development. as i mentioned, the government in recent years has adopted a very negative view about property market. they do not want people to buy extra apartments, for example. they want to limit the landing to the buyers. they want to emphasize

that the properties should not be used for speculative purposes. they should be used just for your a bolt or housing purposes, etc. so i think there is a lot that we can really re jungle or given the need for greater openings ation in china, greater need for apartments and buildings of all kinds in china. but also they need to restructure in what kind of properties you're talking about. and then i would say one major hurdle is that for whatever reason, right now, the excess to finance by private diverse developers is very much restricted, which in itself is very artificial and i don't think this is normal. and i hope the government will pay enough attention that he should give equal access to privately owned enterprises or developers, as well as state owned enterprises. the private developers should not be discriminated in terms of access to financing to policies for example. and in that

way, the property market should be more normalized in the macro size, and people can really expect to have stable property market rather than huge ups and ups and downs in the property market. because if the property market, which is one of the pillar industries in china, is tanking the repercussion throughout the chinese economy will be huge. you do not know what eventually it will lead to. how much of a final blow it will inflict on the chinese economy as a whole? absolutely gas liver to come back to you on this idea of this thing that's being pushed by seating thing of common prosperity. basically crank down to try and ease inequality by cracking down on technology as well as finance sectors. among others . using ping will want to soften the blow. small investors at least will using

thing allow ever ground to fail. yeah, this is a very good question because this whole question, or this whole kind of crusade, is it worried about some common prosperity? it doesn't fit very well with the states and much poor taxpayers biting out big property conglomerates that they've gone into trouble for speculation. so it's maybe another reason to suspect another reason to think why the chinese government is likely to go quite tough whenever grand and not show much, much simply towards them. i think it does also bring into a kind of broader point about china's long term economic directory that many of the companies, many of the countries so it makes by dynamic, most productive companies. ah, things all of these tech sectors which the government has recently launched a crack down against. now if it's not prepared to allow these companies to, to prosper, to develop, to invest. as these may be looked like the case

a few years ago, then it does kind of bring into question kind of china's florida long term outlook . that some of the companies, some of the countries, most productive companies over income stepped on hard by the government. so it may mean a more more ferris site, but also means less dynamic one, which probably means slow growth in the long run as well. i think that that i'd like to finish with you in beijing. a lot of people bought ever ground wealth management products promised big return, sometimes approaching 12 percent. are there going to be however, this works? how are they going to be a lot of individual investors, a lot of mom and pop investors as a known in the west left out of pocket here. last livelihoods last futures. well, unfortunately, they will be a lot of pain in the market because of ever grad, if you asked me to speculate, i would say, nose who bought into the culprit bombed by ever grants of all kinds and different

services. for example, most likely will suffer a big head hair cut. many of a suppliers or old accounts payable by over grants probably will suck another big hair cut. now some of the investors will prepaid for the apartment, a different part of jama, depending on which should be talking about, probably will suffer a huge haircut to and for those financial institutions of commercial banks in particular, i hope they are well protected by their discipline. in lending to as ever a grant to stop with and they will suffer, but they will suffer less proportional to other stakeholders involved. there are offering lenders to ever grant because of their vehicle is listed in hong kong stock market. but i hope they are also. ready well protected in the sense the use there is sophisticated legal documents try to identify where risks are and how they

can be protected through pledges or guarantees, etc. we will time my apologies that we won't have to leave it there for time. thank you very much for your analysis. a big thank you actually to all about guess garrath with the to go and adam hush and thank you to for watching. you can see the program again anytime by visiting our website. i'll just there a dot com and to the other discussion, go to our facebook page. that's facebook dot com, forward slash ha inside story. you can also join the conversation on twitter. handle is at a j inside joint for me, kim fidel, from the entire team here. and uh huh. bye bye for now. ah, china has been very strategic the way to expanding a switch in indian ocean. what is it?

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i can pronounce this is algebra law from of the coming up more than 100 members of community is biggest political party resigned in protest of the.