is using things, leadership is coming, china is economy. i'm anthony, how they'll have more headlines for you. 45 minutes. you might not find out where to go from one, use the website at www. dot. com and the socials, like instagram at dw needs, is handled. you need to talk to the 1000000 people in just a 100 days. my parents because of my family. what cute. how is this age? i'm on a journey to find out about the roots of the 19 there to put you on the site, but they expect to see through, under my name is some way to shimmer. i'm afraid it makes sweet shaming history out documentary stuffs. april 6th on dw, of all the grim economic data are coming out of china these days. this is especially revealing. for decades, foreign direct investment poured into china steadily rising rates as investors and

companies look to ride the wave of its economic boom. but it's fallen off a cliff. last year, f d i into china 1000 just $33000000000.00 per 2 year low. the consequence is a key ingredient in any economic success story. and right now, it's draining away from china, whatever the cost to do from it seems that the company is so basically how so do not find to distort people in china, whether they're in the government or in the private sector. i will tell you privately, they are really worried about the country is direction and it's future in a way that they have not said so for 30 years. china is problems have been planned to many things from the countries property crisis to the struggle to emerge from strict 0 cove and controls. put in this episode, we'll ask if there are more fundamental problems behind it's crisis of confidence. over time the temptations for us that are terry is to exert their control and pick

favorites and, and demand loyalty. outweighs the market number sure. do you can when they pull the didn't to on your, the take a right to extend out the end of the pool. the chinese government is that a fork does a try to bring those hundreds of millions of people who are so poor into the middle class. welcome to business beyond. one of the most obvious ways to see how china is economy has changed in the last few years, is by looking at its growth rate than mere double digit growth has been effective life in china for much of the past 2 decades. but it plunge during the code 19 crisis and the post pandemic revival. quickly last steam, cdp is projected to fall to 4.6 percent this year. one of the lowest rates in 30 years of one particular story has loomed larger over the chinese economy than any other in recent times. age property. it's all about property,

china grice for you. it's has been driven by real estate multi decade markets. part of it was rational law sort of size 6 years is definitely increasingly irrational and through target plus a pretty heavy hand from badging. that property bubble has an effect pumped the property crisis trust. hundreds of massively indebted companies such as ever ground into default on towards bankruptcy. has the crisis worse and huge swedes of society have been severely affected? 3 really key positive strategies economy getting hit, the household defined and the local governments households will that wealth is in property terrible for that fine. assets and liabilities, the real property, it's really bad for them. and the local governments really important to him. i talked to, they read online sales revenues to infrastructure, to pay people salaries,

and of course land sales and crate it as well. and the property sector collapse came as china was dealing with another crisis. the corporate 19 pandemic. china 0 co would policy, sol, beijing exercise extremely strict controls on public and commercial life in an attempt to keep fires numbers to an absolute minimum. but unlike and most of the rest of the world, restrictions in china were not listed until the end of 2022. and when that finally happened, it didn't turn out as well as many had been hoping for. when everyone else came out to tell you that could very strong positive welts effects everyone's house project going up. well, we have pretty much gone up to everything. must have kind of wells to wind behind reopening. who is it a complete opposite in china activities down property down. and really there was nothing to fuel post quite a bit. spending recovery. china's economic slump is larger and longer than just about any one predicted peoplesoft. china would come out of the

pandemic growing relatively well, and in fact, it has a crisis of confidence as well. and truly said in spring consumption and then economy low and confidence is not easy. particularly given. the outsides rolled at the property sector had played in that regard for so long. you made for the show with some john, so you thought that you didn't too? sure if i need somebody to try and touch her 2 voice over the ginger meeting soon, cause i don't you. i'm a frontier trying to get into i'm. she wants to hold a tire. dr. barton on board the shell fitness center. you've got the meet the top tool of tongues you drew back towards the time that there's a long established relationship in economics between deflation and reduce consumer spending. consumers maybe discourage to spend if they expect for the price falls and compared with similar sized economies. china has

a worrying dogwood deflection problem. in 2021, there was a global search of inflation and made pen demik supply chain shocks. and the effects of government stimulus packages, yet there was barely any inflection in china. and the country quickly entered a period of deflation. when economies like the u. s. and the yours on economy, quote there inflation rates to healthy your numbers. ready ready so what's to be done? a major government stimulus package is one option. during a swamp in 2015, china devalued its currency, slashed interest rates and poured money into property an infrastructure. but fishing has been more reluctant this time. ready a decision thing, he is willing to take quite a lot of pay with the vision, with the goal in mind of having more sustainable long term corrects. so he wants the property set to, to contract in a controlled manner, and stay ready to set, showing her up on a more finance guys cost going forward. she's planned for a controlled real estate decline, appears to be part of

a general reluctance to pump more money into a struggling economy. if you look at some of the other part of the economy of fiscal or russian new trouble, and so, so, so 20 percent. and an investment, so 10 percent last year. so if you, if everything has to loading then it will eventually get back to the park and off the, the way that the guy have the best, the in a has enough resources to stimulate the economy. so. so it seems to me that it's a cycle that tends to be turning to the downside at the same context seems to be no pre of time being for the economy. it's china has taken measures to stabilize the situation. they've called interest rates. they've provided liquidity to banks, distributing property farms on to local authorities, but nothing seems to be working. they've done a huge variety of things over the course. they've also tried to reassure for and investors that china is a good place to do business and they can make money and get deals up. nevertheless, that's still not been enough. i think it shows

a very big problem because it shows that how so concrete, the kind of in the sprint do whatever policies that, um, being rule out. so um, which means that the cognitive will need uh to me, uh, basic, actual fund, even cra, roll map or maybe from the shop for you to, to come genius to market. the policies are changing. so is there something else going on? although she's in pain, has been only willing to intervene with a major stimulus package this time around. some experts say that it's his desire for the chinese communist party to have total control over the country. that's doing a lot of the damage. under present a g. the chinese communist party has sort of broken a compact. they have what the drive is. people that they have to come back with what i call no politics, no problem, and from 1979 to around 2015. when she consolidated power, the transcodes party basically left average chinese loan to do their business the

safe to invest. the argument goes that under siege and paying the chinese communist party has become so authoritarian, that it is compromised economic development. not every problem is resolved by liberalization, and just allowing more market forces to work. you need some discipline, you need some order. you, you need some extent of of intervention. i'm sure you can ping really is gone too far. and i think i made a challenging situation worse and that wasn't meant to be always, it wasn't inevitable long time china watchers scott kennedy, believes the change in things, consolidation of power within the chinese communist party has made and even more controlling as the years have gone on and the more the problems arose, the more he went back to his strategy of control. and

that's just sped up. and the pandemic really pushed those control impulses even further the tensions with the us and the west as well. and so just about every challenge he sees, he responds with the same approach. there are many recent examples to back up the point when billionaire business magnet check my criticize chinese financial regulation in october 2020. it directly led to the suspension of the ip service company and the group a huge regulatory track down on various tech companies followed. the property crisis was in part prompted by the government restricting companies could borrow an understandable move to ran in an overheated sector. perhaps hold on data lea, a heavy 101. speaking of heavy 100, there was also 0 covert. and what seems to have changed over the course of coal

that and she is the willingness to change in a positive direction. that there's more control the new clothes. there's a more risk aversion being fell on the, the party is getting much more directive. and in part because of us than with extra behaviors, but mostly domestically, is getting much more about self sufficiency in choosing winners and privileging the state sector over the private sector. such an approach has a clear impact on free enterprise. a one user young sheet down to, you know, might need to know where to go to. that's what you got. you know, that's the, that some pay both. well, you know, how much is a bad spot left of both? well, that's what i'm doing. so i sandra both books to go to, you know, gold source on google adult to dr. jacob, just, you know, a medium june days of producer feed on your engine allowed. many analysts say that

both people on businesses come pick on very carefully about how to spend their money in china due to deb. it's over what kind of actions the government may take, and the future north, south, east, west center, the party controls everything. that's straight out of sheets and things, recent speeches. and that's not how they're going to solve things. i know that makes them feel better, that they have things under control and they can have a superficial level of stability. but the reality is that, that just grinds people down. what happens to the chinese economy has profound implications, not just for it's 1400000000 people, but for the whole world, it's economic success powered global growth for decades. and it's on rivaling, would be equally consequential as much as china is dependent on the rest of the world. we are connected to china is as well. and certainly if, if china suffers a significant economic crisis,

they'll bear the biggest front of those challenges. but the rest of the world will, will feel it in a variety of, of ways. economically. she's in pain, has spoken of the economic recovery being at a critical point. and there is still time for the countries leadership to rebuild the trust and crucially confidence the ability of trying to get back on to a higher growth pass though not as high as it once was, is still there and may be, it is a matter of time that is the government, the party said some form of why we do these things specifically under the emergency of cold bed, and we're not going to do it again. and people initially are doubtful, but over a few years they stop being quite so arbitrary intervention is baby trust to be re bored to some degree and their growth rate will go. what such a scenario may require an ideological shift that seems ever more on likely trying

to today looks richer, stronger, healthier, and safer than ever before. they ought to be celebrating the successful rejuvenation of the chinese nation. instead, they're looking for conspiracies internally, externally, up everything to the leadership is glass, 3 quarters, empty, pulse of july, i 70, which i'm not sure the session doctors, you know, much of with a shelf at bonham because we've got to do something for him. you know, i'm trying to let you in about 5 years of 20. $24.00 is the year of the dragon and china. symbolism will not be lost on a leader. desperately needs to fire up one of the world's most important economic engines, and extinguish doubts about the part he has played. and it struggles. thanks

a lot for watching until the next time. take care the the. this is data really is africa life from the land is nigeria is government losing control of the country . security on the groups are running rampant, staging their latest mass, kidnapping, in the trouble of notes cartoon estates. this criminality has become a booming business full band and a report from gun away. the africa games are underway. the countries spent $200000000.00 to host the supporting spectacles. but why have you hardly heard about it? plus she was almost lift, paralyzed officer of accidents. now this woman plans to go from.