tv Business - News Deutsche Welle July 15, 2020 12:30pm-12:46pm CEST
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sealing the border presumably. he's going to go get him i never work for roger. and i were 2 part documentary analyzes the difficult relationship between russia and the us and between their presidents how does their rivalry and their dangers mutual admiration affect the rest of the world to some bullies putin starts august 3rd on d w. apple an island when their dispute with the european union over back taxes and e.u. court lets the tech giant off the hook for what the commission claimed was an illegal sweetheart tax deal with the irish. and other corporate political tug of war is playing out in the proportions of this battle just got bigger beijing accuses britain of helping washington chinese tech giant while away. at what you
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just thought things couldn't get any worse u.s. chinese relations take another walloping this time of the hong kong preferential trade treatment. i'm going to let's do business a sweet deal for apple the american multinational does not have to pay back 13000000000 euros in taxes to while it was what the e.u. had been trying to force the company into doing but the irish government took the case alongside apple to europe 2nd highest court its long denied that its tax arrangements with the take them out to a legal state 8 the european commission is expected to appeal the ruling to the european court of justice. earlier this year and then irish prime minister current apple chief executive tim cook had an anniversary to celebrate 40 years since apple started manufacturing in our land over the decades the e.u. country in the us i phone maker have both profited from the arrangement. apple gets
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a massive tax break but it provides employment for multinational companies the favorable situation in ireland is practically unrivaled in europe at the moment firms officially pay 12.5 percent corporate tax in arland that's compared with the e.u. average of 21.3 percent officially companies in germany have to cough up at least 30 percent. that alone has attracted many companies to ireland and in fact apple paid far less tax at times for example is little is 0.005 percent in 2014 when the tech giant paid just 50 euros tax on every 1000000 euros in profit. that was the last straw for e.u. competition commissioner my creative s. here in 2016 the european commission ordered apple to pay ireland 13000000000 euros in back taxes but dublin and apple both appeal the ruling.
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we're going to brussels correspondent barbara visa with us as well as our business reporter on the sullivan with me of the apple's welcome the deal so is island even though it just missed out on how much 13000000000 euro yeah that's right so there'll be a lot of parties and i've been celebrating what we're not going to do with 13000000000 euros of those seriously there actually won't be because there's really a lot of people in ireland who aren't happy about this so for starters the opposition parties in our large swathes of the public feel it's quite embarrassing and insulting that of the time when the irish government is spending a fortune on payments to try and boost the economy off the crown of ours or during the democrat or a while this is happening they're turning down it's actually more than $13000000000.00 euros because that figure has increased through interest since the original ruling so it's around 40000000000 euros now what art and doesn't want to because of what the implications would be for its overall economic model what will it mean for its economic well well this is the questions of the reason are and there is government has been so adamant on why took the case with. but it didn't
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want this money was because they had they accepted that they had granted essentially preferential treatment it would have amounted to illegal stated and it would have undermined their entire economic model which for the best part of 30 years now has been based on attracting u.s. investment creating jobs whilst giving shall we say preferential not individually to firms necessarily but to the overall american corporate sector give them preferential treatment both in terms of corporate tax and all the tax grange's a bacterium in a a bit this is above a brussels bomber doesn't even come close to describe it i mean this is an outright slap to the face of for the commission a moderator vester because this was one of her sort of pet projects she is really fighting as since she started on the office to sort of level the playing field on texas within the european union this free countries not only island but luxembourg and the netherlands who know this model of preferential tax treatment sweetheart
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deals as you call them fairly and so she wants to do away with that however the problem is that taxes are still in national competence the european union does no sort of common tax law and so she tried to use was the state aid regulations using state regulations as a leverage to sort of get and sort of poke away at this and it didn't work and now for her this means just a huge loss of face really because she put her all into this and she seemed quite certain of her case when she started it last year and now she just has to sit there and take it but briefly barbara brussels will find back. it is to be assumed because they will not give up the battle they won to make big international corporations pay the taxes they know within the european union here and not somewhere else and they want to fight against these sweetheart deals and so they
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will certainly go to the next level the european high court of justice and try again and sort of put the legal arguments and whether that will be successful we will see at some point next year but they won't give up that easily it will while apple celebrates could this all boost investment or not and of obviously that's what the government the irish government is hoping that over the last few years u.s. investment has continued to copenhagen but the wider context of this is that the waters are gradually rising for low tax regimes like ireland they always seem to be currently trying to get a global agreement on holocaust as barbara just pointed out european commission is continuing to try and bring this fight so i would say it's unlikely that in the longer term arden's tax regime can exist in the way that it has done for years and perhaps is not going to be the bounty that maybe song on the other side in the government would hope for perhaps not obvious other than thank you very much for reporting on this and bob are available for your reporting from brussels we'll try to reduce britain of helping washington hurt while way the british government's decided to strip away you quick but from its 5 g.
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network and beijing or retaliate and there is good reason. chinese state media is foreshadowing public and painful retaliation against the u.k. over its one way ban the chinese state run global times said in an editorial china should not remain passive or be seen as easy to push around. chinese officials however are more diplomatic the chinese ambassador to the u.k. called the ban disappointing and wrong. he tweeted on line it has become questionable whether the u.k. can provide an open fair and nondiscriminatory business environment for companies from other countries. the united kingdom is now following the american stance the u.s. fears the chinese government could force one way to give it access to foreign networks it has helped build. is trying to distance itself from the perception that
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it's an arm of the chinese state. i don't hear people linking you know amazon and apple with the american states you know they they are independent of the american state you know china has its own telecommunications equipment it's only state. estimates and herb you know we're not but we are a different company the united states government however welcomes the u.k.'s decision at a level that was we confronted untrustworthy chinese technology and telecom providers we convinced many countries many countries and i did this myself for the most part not to use while way. and because we think it's an unsafe security risk it's a big security risk. the trumpet ministration has repeatedly claimed that huawei provides a gateway for china to spy on and potentially attack countries that use its equipment . u.s.
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president donald trump has signed an executive order ending hong kong special trading privileges he's also announced sanctions against officials and banks involved in beijing's crackdown on civil liberties in the territory the move could open up hong kong to the tariffs his administration has slapped on chinese exports dragging the form of crown colony into the tribal. between washington and beijing for the past couple years now. clinton is following this one for us cliff it what's the impact of this going to be on hong kong's economy directly but i think hong kong it's been a bit like a boxing match for the last few months and last few years even now and i think this is you know we've had a lot of punches but this is a really big blow i think if you break it down into the foreign firms you got 9000 foreign firms in hong kong of which about 1300 are u.s. firms it's going to have a big impact there a lot of them are in the financial services industry which is a key industry for for hong kong you can have an impact on the domestic companies as well the tycoons that have made hong kong gratian and they're also going to feel
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the impact of this and then there's going to be the chinese companies and they're the ones who probably won't feel the effect as badly they're the ones who may actually stand to gain from this ruling so there's a lot there's a lot of them in potential impacts happening because this is not just hong kong's battle it's also beijing's battle and china is fighting so many fights at the moment and on so many fronts well it's interesting i mean we saw the huawei thing we've got we've had hong kong now. china is under a lot of pressure at the moment it's kind of how does things its own way for a long time and suddenly it's getting a lot of pushback on areas you know hong kong law jiang the competition jiang so there's all these kind of areas where it's having to deal with pressure on translating into. the pressure on the economy which is growing post coronavirus but longer term it's hard to see how it can continue the trajectory it is all that pressure fed i mean john has been saying that it's opening up its economy to the world but there are many experts who say it's closing down its economy to the world
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that's right i mean we're seeing things that it hasn't opened up at the pace of which it's promised and i think that's what that's what the u.s. is saying and so that's where the trade war is coming from and i think people who don't like the use of the word trade war increasingly now have to see it as that because like you say there's so many battles at this stage that certainly it's a big conflict if it couldn't thank you very much. well now to some of the other stories making news iran musk has tweeted his vision of give the latest gigafactory for tesla to produce cars and batteries the project is currently under construction just outside the german capital is planned to open next year and employ of the 10000 people. japan's economy is likely to shrink by 4.7 percent this year and had pulled out from the coronavirus pandemic the bank of japan expects the economy to grow again next year holds its outlook extremely unclear and dependent on the consequences of the pandemic. google has become the latest high profile phone to
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back india's geo the search giant is investing 4 and a half 1000000000 dollars for a stake in the top indian telecoms network campbell also develop a new smartphone with the company. and is it will avoid burger king is adding lemon grass to the diet of some of its beef in order to lower me thing emissions from cow fots by 33 percent a special reduced me thing emissions is on sale in select restaurants in miami new york and l.a. . nice and business with it.
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of the topics covered and the weekly radio show is called spectrum if you would like any information on the throne of virus or any other science topic you should really check out our podcast you can get it wherever you get your podcast you can also find us at. science. this is some notes story a stubborn rice farmer from thailand. his problem tests. his credo no chemicals. his wife thought i was crazy. and i bought ducks. this time. step back.
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for pests don't stand up. the price is. history and he has the finest a production to top it off. training successful. starts trying to separate. that's covered $900.00 cases spike in some countries it's clear that the pandemic isn't slowing down that's why many are pinning their hopes on a vaccine. we're pretty cautiously optimistic that at the end of the year beginning of this coming 2021 we will have one in maybe more i hope more than one vaccine that would be available. fountains of scientists are now working on
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