well the marsh. has been the d.p. in northern ireland to reason why it's governments are not going to miss tricky notice the good ear they reject of any hot water on the republic of ireland marsh. ok and we should know more about where this is heading following that cabinet meeting today josh bloom thanks very much for that from. well we'll german cities be banning diesel cars and trucks then we'll have more on that coming up in the business. in rural. a contentious figure at home. here in germany. gorbachev is one of the great heroes of the twentieth century mikhail gorbachev the last leader of the soviet union was an agent of change. who quickly met his downfall. i have decided to resign my duties as president of

the soviet union. he continues to fight for world peace with a reminder when you notice we have to comprehend where peace has taken us today there is a new arms race. the roof time gorbachev and the opportunity for peace which starts october third on d w. china accuses the u.s. of starting the largest trade war in economic history this after washington slaps a new round of tariffs on chinese goods from handbags to rice coming into effect today. and the heads of germany's make its failed to reach a deal with the chancellor the fate of their dirty diesels hangs in the balance.

i've been for all and let's do business financial markets are increasingly bracing for a pro long trade war a lot of the key asian and european indices falling this monday washington's latest tariffs have kicked in for two hundred billion dollars worth of chinese products beijing retaliating by targeting sixty billion dollars worth of goods with extra. workers in a chinese factory making flags and banners for donald trump's reelection campaign in twenty twenty if you want an idea of the irony and complexity of the trade dispute between the world's two biggest economies here it is in a nutshell the dispute has escalated dramatically since this meeting between the american president and his chinese counterpart cheesing ping almost a year ago so what's happened since then and what it meant for both economies let's take a look at last year the u.s. imported five hundred five billion dollars worth of goods from china back in june

trump impose tariffs on fifty billion dollars worth of them as of today further gigi's have come into effect on another two hundred billion dollars worth of goods . on the other side china it's imports from the u.s. in twenty seventeen total one hundred twenty nine billion dollars in the summer china responded to u.s. tires by imposing duties on some fifty billion dollars worth of u.s. goods and now its retaliation began by adding juiciest to a further sixty billion dollars of u.s. products. meanwhile the war of words continues to. here's what u.s. secretary of state mike pompei o had to say about the trade war when he appeared on fox news on sunday. we know this much the trade war on by china against the united states has been going on for years. here's what's different in this of ministration to the extent one wants to call this

a trade war we are determined to win it china for its part accuses the united states of bullying with no sign of a less open the tit for tat economists say the real losers in this trade battle could ultimately be consumers in both countries. we asked the german economist clarence firsts which side is hurting more in this dispute. the u.s. economy can hardly replace the chinese goods so it's not like these goods will be produced in the united states what's going to happen probably is that prices up the chinese goods will increase maybe the chinese currency will be bad for you a little but in the end it could very well be the u.s. is the loser or the us consumer is the biggest loser in this thing so it's not clear that this will hit the chinese more than the u.s.

let's bring in now asia correspondent linda hong who's based in singapore linda what are people saying way you are is china going to come out on top. well china being a one party government since one thousand nine hundred forty nine needs at this it has needs to wage this trade war for longer and apart from terrorists it's actually launched the tit for tat tariff is also oil companies that has also backtracked its promise of creating a million jobs in the u.s. that this promise was made in twenty seventy and now it's a they no longer does it's going to do it because of the trade war that's ongoing and next week look at the population of over a billion and it's also one of the ways that you know the government could actually boost domestic consumption growth so these are some of the advantages that china my have when going into this trade war going forward for the long term that would china could be. sustainable but at the same time reports keep rolling in of companies shifting production from china to other countries in the region surely

that's going to hurt beijing at some stage. well for now it seems to be hurting trade. show that the supplies to the u.s. will soon record but overall export growth has slowed one off the lawn bright star that we're seeing is there fostered expected imports growth and the signal that the message the mind might be holding up for now about to take note that the headwinds china has a population one billion over a billion yes but its population is also aging and due to the one child policy that has come up with that has ended in twenty sixteen some people might think that it might not be right for them to have children anymore so these are some of the headwinds that china might be facing an aging population going forward so what is the next move in this trade for. well there are many ways what china to grow you know it has just before the trade what it has already looked at a robotics going it's robotics sectors and it's also making solar panels and sustainable energy and in fact

a rising wages have to actually make china not too attractive for manufacturing create war or not and that also tweet deals i mean there are also things like the multilateral deals like the regional comprehensive economic partnership that looks set to conclude by the end of the year and this this trade deal is actually one of the pieces the trans-pacific partnership that president donald trump and say he backed out of when he became president of the u.s. and china is looking to be part of this deal that comprises sixteen countries and it's very big i mean it's when it's concluded that it has three point four billion people with a g.d.p. off about twenty nine trillion dollars and that's a key thirty nine percent of the world's g.d.p. and it's actually and china was. likely to be able to take advantage of the and we're also looking at one belt that's going to be financial products coming up china needs to come up with loans and this is one of the ways that china could perhaps not rely on this trade with the u.s.

going forward and growing its economy it sounds like a trade war could actually spark quite some progress for the chinese later home for us in singapore german chancellor angela merkel mikami because on sunday discuss extra measures to avoid large scale diesel bans across the country among the most contentious issues engine retrofits which the sector so far opposed for the summit ended in conclusively. perhaps b.m.w. wanted to show a little goodwill the c.e.o. came to chancellor angela merkel's office in an electric car for his company there's a lot at stake the same for mercedes boss techa and v.w. management they'll be meeting with macko finance minister shots and transport minister sure once again the subject is driving bans for diesel vehicles the coalition wants to prevent this is much as possible but the industry does not want to make any promises for retrofitting. it instead for clean air in the cities fleet

renewal remains our priority we've also talked about retrofitting now they'll be discussions at the federal level and the individual car manufacturers will do the same and automobile has been just like it tony but the green party demands the conversion of all vehicles that don't meet exhaust emissions standards and so my high school they always say that only older diesels are affected but it isn't true and there are many of the relatively new euro five diesel vehicles which totally exceed the standard values and many of the newest euro sixty s. of vehicles considered the most modern don't meet the standards that's why we demand that the vehicles be retrofitted at the expense of the car industry. the german government has blocked the retrofitting of older diesel engines and prefers offering incentives to buy new vehicles the big car bosses left under the americans office without a deal but the german chancellor wants to present a solution for diesel vehicles by the end of the month. until then it's joins us

from the french stock exchange to talk diesel because. a big name in the industry is now think ditching a good porsche. yes it has it's a decision that porsche can easily make the c.e.o. off portion of a bloom said that this decision was directly linked to the diesel gate problem that's been bothering its parent company for exciting for about three years and a porsche doesn't rely very much on the diesel as a sports car maker it's a very limited it's got a very limited amount of diesel to running here it's only been producing them for about ten years so that's an easy decision to make but at the same time it is more difficult for for other carmakers because they heavily rely on diesel despite drops in the sales figures that we've seen now after these driving bans have come

into place the numbers have gone down to about thirty percent in sales in august but thirty percent is still a lot of a lot of diesel cars and car makers german car makers need these diesel cars in order to reach their goals for c o two emissions which are calculated by fleet i was surprised when i read those figures today as well is is porsche going to be an exception in this decision old will become the rule do you reckon. well difficult to say so on the one hand auto industry experts have said for a while that it's time to replace these all and to bring in electric cars at the same time even after. this event the porsche c.e.o. said they're getting out of diesel he said that modern diesels are still a clean and energy environmentally friendly solution and that believe

as goes across the board in german car companies nonetheless they're trying to show that there are ramping up their efforts in cars only this month adi b.m.w. and brought out new models hoping that that will attract consumers but the problem just doesn't just lie with the slow car industry it's also infrastructure that needs to be provided and a lot of consumers still haven't got a chance to charge their electric cars or would have a possibility so they just leave it they won't buy them. because the inputs for us in frankfurt thank you very much. nice doing business with you.

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