this is your business briefing. from poverty to global power, china bloc 40 poverty to global power, china bloc a0 yea rs of poverty to global power, china bloc a0 years of reforms that made it the second biggest economy. in the former head of the world for a —— world trade organization tells us what he's even bigger hurdle in the us- what he's even bigger hurdle in the us— china trade spat. on financial markets, traders are on airjazz wall street ta kes markets, traders are on airjazz wall street takes another tumble that saw the broader market s&p 500 closing at its lowest in ia months. many ask where is the santa rally? china is marking a0 years of reforms which have lifted much of the country out of poverty, turning it into a global powerhouse. go back to 1978 where china was the 11th will

be as country in the world with an economy worth $1a9 billion. it was a tiny action of that of the united states. the reforms included allowing private firms to operate a transformed the economy, propelling china tables. it is now second only to the us with an output of $12.2 trillion last year. but this phenomenal growth has come at a price. chinese sitting on a debt pile which some estimate could be up to $3a trillion. add to that an ongoing trade war with the us and many chinese economists argue now is the time to push ahead with more reforms. it is also facing growing anxiety in the west over chinese technology firms with a number of countries now banning the use of hardware may bite huawei. that is just one example. we have a special adviser to asia at city and london corporation. good morning. it is

quite hard to up some a0 years. it has been staggering, the change in china. it has. i live in china to three yea rs it has. i live in china to three years and this was that the really pacey time when things were changing so pacey time when things were changing so quickly. lighting the city is growing, most of the cities in china are cities that here in the west you don't even know their name and they are well over 10 million people. this urbanisation has been driving a lot of the growth, and we think of it as lot of the growth, and we think of itasa lot of the growth, and we think of it as a world leader these days. it definitely is looking to be a world leader. it wants to be the world leader. it wants to be the world leader. it wants to be the world leader. the president speaking today in ageing, staying very much on message. we want to be more global, talking globalisation. yet it is still a communist country, a communist state controlled by him and the communist party. very true, but this is notjust a message for today. this is the message for today. this is the message we have been hearing for a long time. if we think about the chinese currency, it is

internationalising incredibly rapidly. we have been working on internationalising this currency since 2012 and we are seeing the u pta ke of since 2012 and we are seeing the uptake of the exposure to china. it is often the case about international investors are thinking about it. china is globalising quickly. when you talk about whether where the money is going, this year alone, there have been so many innovations, but i push —— opening up innovations, but i push —— opening up financial services is a big one. the governor was very clear in terms of the direction of travel and opening up, allowing for investors to own over 50% of companies in the asset management space in insurance in various parts of banking. this is groundbreaking. the pace of change is incredibly rapid and we have seen announcement after announcement over this year in terms of being able to get a ccess this year in terms of being able to get access and have licences in the financial services. certainly exciting times. they are looking to expand, you have the initiative on

the part of china to exceed trade across the world in a more significant and fluid manner.m then you have donald trump in a whiteout in the us and what that means for trade in the future and this situation with the huawei, which has brought to everyone public attention around the world concern about security. it is right to bring an example of how china is stepping up. it is about trade and also filling a gap in asian in bristol are all stop not only that the government can fill but certainly private capital in mobilising that. one of the key things and it was said by the president today is that doing that initiative in terms of infrastructure, that is green and sustainable. it is becoming more important to china and the growth is not at a price. his voice talking about green and sustainable again is very different to the voice we are getting out of the world's biggest economy. how do you see here given the trade you that is ongoing?

right now we are in a period of negotiation, but i think we are going to whatjen tse. from london's point of view, the governments are working on it, it is a big priority —— we are going to wait and see. in terms, perhaps it has gone slower than anyone would like over four yea rs, particularly than anyone would like over four years, particularly in financial services but it is changing rapidly. trade dispute or not, it is moving quickly. watch this space. thank you very much for coming in. very interesting. we have just discussed us — china trade war, casting a dark shadow over the a0th anniversary of china opening up its markets. the conflict has seen the presidents are giving each other fair trade practices. our china correspondent caught up with a former director—general of the world trade organization, and asking whether either of the countries is

right to raise issues about how global trade system currently operates. the us are right that some of the global trade today do not disciplined enough from chinese practices. china is right that the way the us behaves in putting ta riffs way the us behaves in putting tariffs on china is not at all in line with the trade. what is the most troublesome of china's trade practices? in my view, it is the only real issue, the state—owned sector has not only stopped drinking, but increased, and inevitably, if you have one third of your economy which is under a state command, the suspicion that they are playing with subsidies, but the roughly the cost

of capital is there. what is your best and worst case scenario for the trade relationship between them, let's pick number, next 90 days? the approach, china has to be contained for it not to damage the us will not do something more aggressive, pushing back china. i personally believe this is dangerous. i don't wish them to have the majority of people who are at nationalistic china first. i think this is not what the world needs. the former director—general of the world trade organization there. just hours after being elected the new leader in one of in the apartment largest states has given farmers some financial relief. it is waving wooden $5 million in loans after they suffer from losses caused by failing crop prices. its go live

to delhi to speak about india business report. tell us what it going on. it isa going on. it is a lot of money that will come from the state finances, which will cause a lot of stress, though economists say it is good money going after bad money because although the politics that the new government is trying to appease the farmer a voter base in the state, but the economy of this is that these are small loan farmers who have taken these are small loan farmers who have ta ken loa ns these are small loan farmers who have taken loans for about $a00 or $500 and that is to tide over bad monsoon crop failure and higher cost of fertilisers and pesticides, they are not able to pay it back, and if these loans are waived, then those farmers who are able to pay back these loans, they will be different and advised from doing so in the long run. instead, economist steel this money should be dumped in making the infrastructure and the agriculture sector much better and ensuring there are smooth supply chain and better prices given to the

farmers for their crops. in india, there is an issue of farmers committing suicide because of financial distress. there have been at least 3000 farmers committing suicide in the last 20 years and we have been government after government trained to give low waivers to appease these farmers and asking them not to pay back, which economists feel is not a good move. we should move on. thank you for telling us a very interesting story. it's a squeeze in other news the chronicles of four count of the firms are facing a shakeup under reforms the post by the commonage and watchdog. the authority wants to separate audit from consulting services while also encouraging a wider choice of auditors. the regulator said at present the so—called big four, the late, e white, kpmg and pwm see conduct 97% of big companies ordered while also providing them other services as well. france has said it will introduce its own tax on big

technology firms from the start of january. it comes as efforts to do something similar has stalled. the french finance minister said he accepted it to bring in 500 million euros in 2019. i mentioned the santa rally, so traditionally in the run—up to christmas, you see a rally on the share markets. the volumes are already always been that if some of year, but as you can see, serious concerns expressed on wall street and it has filtered through to the day in asia. as a rural reserve start its two—day meeting today and tomorrow. —— the federal reserve. here in the uk, returnable deposit

scheme for bottles, cans and cups is outlined in the plan from a new waste strategy in england. every home would be a weekly food waste collection and recycling would be less confusing. there is more details. the way we deal with waste is about to change. new rule is well aimed to end confusion over what can be recycled and what cannot. the government says we need to use resources more widely. scientists say we are all using too much of the planet's resources, buying stuff and drawing it away. that in turn generates greenhouse gases that are overheating the earth. it has to change. government, local government, businesses, you and me. here is one solution. if food waste is collected separately and rotted ina tank, is collected separately and rotted in a tank, it gives a stream of valuable gas and a load of soil fertiliser. ministers want all

households in the uk to be offered a food waste caddy to help in this process. what we need to do is to make sure the food waste does not go to landfill that is that creates significant environmental harms and we wa nt significant environmental harms and we want to avoid that. it is only through separate food waste collection that we can ensure that we actually use that material in a way which is environmentally sensitive. and there is more. getting rid of waste imposes big cost on us all. ministers want manufacturers of goods to pay the bill for disposing of them. then there are plans to tackle the cursive flat tipping. by tracking the movement of disposal firms with an electronic system for the product of a public ideas are themselves recycled. industry have been fighting proposals for fear of increased cost, councils worry about that as well. environmental is racy ambition of today's strategy but wa nt to ambition of today's strategy but want to see firm policies emerged from the coming series of consultations. this is the briefing, the headlines.

michael flynn, donald trump's former national security adviser, is due to be sentenced for lying to the api to his contacts with russian officials during the transition. official sources in yemen ‘s sake violence has continued to sporadically erupt in the port city of hodeidah despite a planned ceasefire between the government and the houthi rebels opponents. the port is a key gateway for vital supplies of aid to the country's people. and protesters have once again taken to the streets of budapest for the sixth consecutive day against the government. the demonstrators accuse state television of being a mouthpiece of the fidesz government.

what is making headlines in the uk? you can guess. the front page of the guardian is looking at brexit. theresa may intensifying her warnings on the dangers of no deal between britain and the eu, as jeremy corbyn, the opposition leader of the labour party wants to table a vote of no confidence in mrs may. the new york times focuses on those allegations that russia interfered in the 2016 us presidential election. moscow is denying any wrongdoing. the financial times is the difficulties facing britain's accountancy industry. the uk's competition watchdog is unveiling reforms following public concern following the collapse of dash of companies and questions of how these companies and questions of how these companies were audited. look at the business paper. it is called city am

and leads on the troubles facing the on line retailer asos. pre—christmas p°p5 “ on line retailer asos. pre—christmas pops —— profit warning with a knock—on effect. there are fears the retail sector is facing a gloomy festive season and it's notjust on the high street. finally, the new post, you can see a picture of david berryjunior. he post, you can see a picture of david berry junior. he is post, you can see a picture of david berryjunior. he is a convicted poacher from the us state of missouri. he's been sentenced to a year behind bars for killing under the deer that is part of his punishment to watch the movie bambi once a month. the disney film which made me cry when i was very little.