welcome to the show. i'm see from beardsley in berlin. china's 0 cove. it policy has european companies. they're bracing for losses and reconsidering their investments. that's according to a new survey from the european chamber of commerce. more than a quarter of the 370 firms participating in the survey said they're thinking about pausing investments or moving them to other markets. that's double the number from 2 months ago. almost 60 percent of those question projected lower revenues for the year. beijing 0 cove policy has resulted in locked down from the manufacturing of, of sion gen, as well as the world's largest port. shanghai is not just beijing's cobra policy was causing problems for the chinese economy, dw businesses, china analyst clifford conan, takes a look at the challenges facing the world 2nd biggest economy. supply chains are struggling to keep product moving. retail sales or falling restaurants in catering or suffering. industrial production is slowing. unemployment is on the rise. almost every metric suggest beijing's official forecast of 5.5 percent growth this year is

too optimistic. some analysts reckon the china will grow below 5 percent in 2022, a rate not seen since the fallout from the gentleman square massacre in 1989. she jim paying is expected to seal an unprecedented 3rd term as leader this fall. but his power push comes against a background of 3 major challenges to the economy. china's property market has been in crisis since last summer. that's when the financial troubles of china ever ground group sparked to sell off and a giant property companies, bonds, and other developers. property developments for accounts for around a quarter of china's economy. and china's top 100 developers monthly contracted sales volume fell for the 8 straight month in february, plunging almost by half compared to a year earlier. since the beginning of 2021 rounded doesn't, chinese developers of defaulted around $14000000000.00 worth of offshore and domestic bonds. the government is trying to sure of the damage, but the emphasis on housing for living rather than speculation means the heady days

of massive growth are likely over china's choice to stand with russia over its invasion of ukraine is putting serious strain on globalization. the u. s. warrens that beijing stance could result in secondary sanctions on chinese firms that could cause further problems for the tech sector, which is heavily reliant on western components. the most significant acute problem is the 0 covey issue. my colleagues, old song hahn in taipei has this for us. thanks, clifford. i'm 45 chinese cities are currently close affecting 375000000 people are about a quarter of china's population for the global economy. the supply chain will be particularly har, hit by the lot downs. if we look at sun, he has been close for more than a month, although the number of cases has dropped significantly. the chinese economy is probably centered in big city like so high in about half of apple supplies are locates near some high sins and or quin san 2 chinese here. my indexes have been

below 50 for 2 consecutive months indicating that the economy in decline. chinese president sheet him, he is now facing a dilemma on the one hand, he wants to ensure stable economy growth, which is crucial for his on that i am on anonymous reelection. this fall by the hand. his insistence on 0 covey policy is a key factor that stifles economic growth, which no one dares to openly oppose. tanks to its own, han anti pay for that. as we can see, 3 major challenges facing the world's 2nd largest economy. 3 major major challenges . well, 45 chinese cities are currently under locked down. that's what we just heard from. so among them, the world's largest port shanghai. earlier today, i had a chance to speak with your booker, he's president of the chamber of commerce in china. i asked him if there were signs that bay gene was ready to turn away from it's controversial lockdown policy. there's unfortunately no assign. and again, maybe the pain has to get deeper in order for them to change. and the truth walks

of 0 tolerance. i mean, today we had the p. m i coming off of services. i see in this covering primarily the east coast as well as the private chinese enterprise in the service sector. and it was a dismal of 36.2 percent. so our survey and this kind of feedback indicates that economic damage is quite severe. the has to be a change, and all the members are requesting a change. we came up with recommendations. how to do this? do you believe that companies really are prepared to move their production, their investment elsewhere? if they don't see a change? i don't see your big company is actually moving out of china and moving them say to bangkok or to a k, k l, a. what we are trying to indicate is that a headquarters of putting additional investment into china on hold, meaning that reconsidering if there has to be more of their products and product production in china. and that doesn't mean it's moving out, is just not moving in and meaning it's relocating to other locations. but again,

of course, that has a significant impact on employment as well as on high tech in china. so the danger for china is missing the train the china has said that expects to see 5 and a half percent growth this year. many analysts have looked at that and said that's not realistic. how do you see it? the 5.5 is all the windows no way. i mean we had a very good 1st quarter for 4.8 percent plus the money, right? but again, it all indications are that the economy, particularly of course, the dell just starting in the last week in march has been in free fall traffic is down transportation traffic down in shop by 80 percent across china, 70 percent, and even a province that has no lockdown whatsoever like one door is down by 50 percent, and that's not going to change. i mean, again, we are facing near lockdown conditions in beijing. that is of course, more service oriented economy is not really strong in manufacturing. but how is

that all gonna end? i think 4 percent at best it is going to be achieved and again, it's a long way to get there. all right, we'll leave it at that. your full co, he's president of the chamber of commerce in china. thank you very much. thank you . and now to some of the other global business stories making headlines, those locked downs in china are adding to problems for german companies. industrial orders, their slumped 4.7 percent in march compared to the previous month. that's according to the federal statistical office. uncertainty around russia's war and ukraine is one factor wing and producers. as are rising energy prices. backing the trend beams of you says its 1st quarter was boosted by its chinese operations. the german luxury car maker reported earning earnings up to 16 percent to 31000000000 euros. the company credited the strong increase to the consolidation of its chinese joint

venture b, m. w brilliance, automotive and high demand for its premium vehicles. rising ticket sales in the 1st quarter helped keep germany's flagship airline tanza in the air, despite high fuel costs compared to the same period last year. the airlines net losses fell by 40 percent using a just 580000000 euros. the company pledge to expand its offering in the coming quarters to reduce bosses further. volkswagen meanwhile, nearly doubled its 1st quarter net profits compared to the same period. last year. it also maintained its annual guidance groups. largest car maker raked in 6700000000 euros in the 1st 3 months of the year. it dodge the major hit from supply chain bottlenecks by providing factories in the u. s. in china with unused semiconductors from europe or global markets have generally welcome the decision by the u. s. federal reserve to raise its benchmark interest rate by just half

a percentage point in an effort to beat back record price increases. inflation in the u. s. is at a 40 year high, the rate hike is actually the largest single optic by the fed in more than 2 decades. and some investors fear the fed might do more. higher interest rates make borrowing more expensive, cutting into business profits and restraining growth in fed. chairman jerome powell said yesterday, the cutting inflation was critical. the economy in the country have been through a lot over the past 2 years and approved resilient. it is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all more rate hikes are expected in the months ahead. but can monetary policy actually bring down us inflation that's been pushed up by stimulus policy? as well as energy costs. when we asked economists, chris for thornburg when he expects price to come down. he was quite candid. i never, i looked the increase in price is we're saying, of course is,

is largely driven by the $11.00 trillion dollars of stimulus. that the federal reserve and congress is thrown at the u. s. economy, candidly vastly more than the economy needed relative to the type of economic shock that the pandemic created. the result of that, of course, is, is rapidly rising. prices were at 8 and a half percent inflation year over year, and candidly, given the pent up demand in our economy right now take, for example, auto inventories that are basically 0. it's hard to see anything slowing down, given these relatively modest moves on the part of the fed. ergo, i don't think they're going to even come close to slowing inflation down a given this kind of policy. inflation is on the rise around the globe, not just in the u. s. and the fed is not the only central bank to tighten its policy. the bank of australia has now raised its main lending rate by a quarter of

a point that's its biggest rate hike in over a decade. in india. meanwhile, the r b i n d a central bank, surprise markets by raising rates there to 4.4 percent. and without warning, or deli correspondence, our car to car has more this is a big move by the kind of parade high had come up. no information has been the most pressing concern for india for months now, both retail as well as getting places have been on an upward, predictably, in fact, inflation breed the 7 percent law last month. and the said that this was the thing that it was worried about. most the be able to talk about political pressures implying essentially the great war and impact on prices across the world and india as well. now, the most immediate impact of the trade hike is going to be for the average because you must the mind we're going to go up. but whether this will have an impact on the police commission or not that for me to to be correspond char cards guy there in

delhi, or back when it was called facebook, it changed the internet forever. now it's corporate parent. meta is going for the real world opening its 1st brick and mortar store. again, mostly to draw you back into an entirely virtual reality. the 1500 square foot met us to work at the company's burlingame campus in california, opens this weekend features v r headsets smart glasses and related items. all products, of course, could also be bought online. and here's a reminder of the top business stories were falling for you as our china 0 cove policy has european companies, they're bracing for losses and reconsidering their investments. that's according to a new survey from the e. u chamber of commerce in china. more than a quarter of the 370 firms participating in the survey said they're thinking about pausing investments, or moving them to other markets. the federal reserve in the united states has

raised its benchmark interest rate by half a percentage point. the biggest hike in 2 decades is meant to battle inflation just currently running at a 40 year high. that's it for me and the dw business team. you can find out more about these and other business stories online. check us out a d, w dot com slash business. we're also on youtube under the d. w. news channel. i'm stephen, beards in berlin likes watching. ah, [000:00:00;00]

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managed by frappe waterloo. ah, ah ah, this is the w news live from berlin. ukraine reports bloody battles asked at b as all steel plot of civilians i believe, to be trapped inside their hopes on elton's, on a new russian promise for a cease fire. also coming up well come and key. if once again, the german chancellor and the german president have received an official invitation