so you're watching the w news of the next business beyond considers how the china is trade surplus is impacting, developing economies. i'll be back at the top of the hour with more world news. i hope to see you then the i want to tell you something. it's a bear with me raising awareness of h o d and on and we're still in test shane assignments. we need to break out of and i want to tell you something how to tennessee chris starts november 29th on dw china. it is counting on its world, beating export machine to help pull it out of its economic slump. but that strategy is been complicated by way of, of terrace. and it's not just the usual suspects in the west. so far this year,

several developing economies. i've taken action against what they believe is, china is over capacity from electric vehicles in brazil to textiles and indonesia, being faced as new trade barriers and the global side. many believe china is exporting too much on importing to little. the country generally has a strong trade surface, which means that exports more than the imports for threat 2024. that surplus has been increasing dramatically. exports have been rising fast. quite weak. domestic demand means imports have been stagnant all year. in june, china's trade surplus hit $99000000000.00 a monthly record. in this episode, we will look at what soaring chinese exports mean for countries seeking to build up their own manufacturing basis and emulate the success which has made china an economic superpower. and we ask if tariffs will simply become the new norman and

try his relationship with the world's biggest emerging economies? welcome to business beyond over capacity. what exactly does it mean? the term is controversial because who decides when capacity has been reached? and why does that tend to primarily only focus on china? to answer these questions i spoke with community building was from the rhodium group, an independent research organization. she's part of their china projects team and she studies the country's economic system and detail. the time itself is be going to be that the bus was in europe. another country is when it comes to china. but it's a very loosely defined concept. and there is no formal definition, which also means the metrics use to describe this, or if it's up to the base, i'm conventions. and of course, china doesn't take much the tire, so the capacities fundamentally over capacity here is the idea that china produces

too much for its domestic consumption. and much more than normal market forces would allow the poor underlying issue is the crime, domestic and buttons within china's economy. and between demand and supply, which has massive speedo, the effects of the wealth. and to them throws simply what happens is that in recent shows, we've seen the very 1st increase in china's production capacity, which was fueled by states both at the same time, the domestic demand has been very weak and couldn't have sold all that screen production capacity. however, kyle chan, a researcher and chinese industrial policy at princeton university, says that from china is perspective, this is not over capacity, but rather the country wanting to explore this fire in widely as possible. an am shared by many economies. it would be surprising for any country, and you've seen this, you know, historically in the us, in much of europe,

you'll be surprising if you have the ability to do so, to not try to reach beyond, especially if your home market. um, you know, no matter how big it is, they'll be someone that asks for the view of the chinese communist party. a good insight into its perspective can be found on the international section of its official website. an opinion piece purportedly from a badging best commentator called voc saves was published in may 2024 under the headline. accusation of china is over capacity. the global sales just doesn't biased and argues the talk of over capacity is just another china threat theory trumped up by a handful of western media and politicians focusing in particular and chinese green energy exports, including electric cars. it says china is production capacity, creates better lives for the global. so however, it's framed domestic chinese problems power central to the issue. it's economy has not recovered from the co would 19 pandemic or the property crash,

which recently hit the country. the government is trying to revive growth, but demand remains very weak. ties running out of options to produce economy and the new way it has left is for more and more exports. in fact, the thing we wouldn't be talking about over capacity is china's because he was crying as fast as it, the train is gone and stays, that it is. but the upshot of china is changing tre. patterns is that it has dramatically increased its overall stake in global of manufacturing between 20192022. china has increased its share approval manufacturing exports by its 3.4 of the people, frequent 5 person page points, which is quite a known estimate for the country of the size of china, which accounts. so i bought the service of google manufacturing it's, it's really a loss. but this all appears to be coming out of potentially serious costs to

beijing. in china remains by far the world's biggest export or with mass of annual export values, approaching $3.00 trillion us dollars. but it faces major trade barriers from 2 of its biggest economic partners. us on the e. u, particularly on electric cars that has led badging to seek to strength and trade relationships with a whole range of developing economies from india to indonesia, mexico, to present a fee of time to silent. but these economies too are starting to erect their own barriers, assuming chinese exports begin to put pressure on their own manufacturing sectors. brazil and turkey port levies in place and electric vehicles to prevent their domestic markets being overrun and partly to encourage trainees investment in building production plans locally. brazil has also placed tariffs on steel when india, indonesia thailand, and said africa, a potent barriers and countering chinese exports across

a whole range of sectors from steel, tech styles, to solar panels. it's easy to understand why they've taken such actions. when we look at some recent trade data, we took a selection of the biggest developing economies focusing on some of the global says countries we just mentioned. here's our china's trade surface with this selection of major emerging economies has developed over the last decade in 2014, to 2019. there was little change. but since the pandemic ended, china is trade surplus with the selected economies has widened dramatically. it's now almost doubled, but it was as recently as 2020 on one level. this is a story about developing economies seeking to protect their own jobs and local industries. from turbocharged chinese competition. we asked henry, go professor of law from singapore management university with a specialization and chinese trade to explain more so many different countries. the

are concerned with the influx of a chinese expos because china is much more competitive than these countries in manufacturing. these products, especially below 2, middle and for consumer products, i mean, no country you can compare against china. chinese products are typically of a bank or at least a comparable quality and much cheaper. and these uh would mean that the local firms cannot compete. but that's not the full story of china is economic relationship with these developing economies. collectively, they haven't really invest market shift. china. in fact, to some extent they've been using cheap chinese inputs to, to power their own manufacturing industries. and to make products that they're exposed to the wells, especially in some sectors where they are currently developing that production

capacity. for decades, emerging economies have benefited from cheap chinese imports, often to power their own manufacturing sectors. and that remains the case. it's especially true as in countries. um, so think of kids now for example, isn't very good the case when it's almost when to, when it's involving a push from china. and then, you know, i'm making products at home, but it's then re exposed to the world's this will you see that such a need in many different countries, really? um, india, mexico, turkey, etc. some experts say that the narrative of china been targeted with a wave of tariffs from developing economies is overblown. and then in many examples, it's a case of countries trying to protect specific sectors. well, it's also trying to attract investment and high tech industries. so there have been some really prominent stories and really prominent cases. so you have indonesia and

throwing out some very large tear of increases. but in that case, if you drill down a lot of that's about protecting their textile sector. for example, you have um brazil, which has a, a, a, a scheduled sort of ramp up in terrace on good select electric vehicles. um, but you see that if you drill down as it appeared, approach to, um, trying to attract chinese investment. and you have actually quite a bit now, including the id plant that will be that's supposed to reach something like a 150000 vehicles pre pre years capacity. that's a key part of this story. the world's biggest developing economy such as india, indonesia, brazil, and figured now in many ways one to emulate china is economic success. but it's a difficult balancing act between sending off chinese competition, trying to attract investment from the country and avoiding,

becoming too dependent on us to better understand the complexities of china is economic relationships for global says. i spoke with lina binocular, an associate professor, an international relations at wake forest university specializes in this topic. we use the phrase global service quite a lot in this program, but it's not a turn that everyone agrees on. so i asked lena for her view out of a surface level when someone says global soft, if we imagine this to be a geographical category, literally have several questions about australia, but japan are these in the global south? are these in the global north? but i think a better way to define the global south would be to actually think about it as not a geographical concept. but it is a concept that historically just stores towards communities and policies and groups of people who have. 6 struggled with issues of colonialism, issues of inner qualities and injustices, and post by a global order. as for china's own relationship with the global says,

there's considerable complexity, a nuance china play on 2 different identities. it is a power, that's the frames itself as a member of the global self. so when it's actually talking and it's due to a medical relations with members of the global south, it speaks as if it is part of the global south. and it brings up sort of this shared history. sure past for china and several countries in the global south for basically struggling with colonialism, but have in similar past and histories around around the struggles with china also plays on its economic mice when cultivating these relationships. the 2nd identity of china players and it's one policy inside. it is the 2nd largest economy in the world. so it becomes a source of aspiration for several countries in the global south to see what china was able to achieve. in the last 30 and 40 years becomes really an attractive

model and attractive example to follow and to us to, to, to, to kind of aspire to become as well. trade has been central while it's belton road initiative. a huge infrastructure investment drive was another way in which china sought to win hearts and minds and developing economies. however, that appears to have run out of steam, with many host countries, left, settled with debt leading to protests and discontent. kenya, and she like its name to recent examples. direct chinese outbound investment is searching to record levels signed that the country is increasingly choosing to invest in manufacturing operations abroad, particularly, and clean energy as part of its way of dealing with new terrace. in many ways, this represents sort of a 2nd chance at winning over the support of the global south in ways that

the b, r i the don't run initiatives turn out to be, you know, perhaps at this next result. but it's not clear how sustan's this type of investment will be given. china is domestic economic problems. the streams because 1st of all, the trend is going from a much long to legible. this company is best for growth and creating shots of growth when there is a huge unemployment program in china. and, and so it's a real close everything approaches it's, we'll just listen, that's the problem. the good. i wish i could have done more to save. you just click away, signed this document, you really see the world

as he's never seen it before. the drive now to dw the teen up. sure. but watch everything from our full consumption to our follow sources to watch on sports. all of this causes waste and for you should. so we could definitely do with somebody locating up. hello and welcome. i'm so i've got the body and you all watching equally and you are an alignment, is becoming increasingly unbelievable. i'm for you to do so we need to fix that short. but we also need to take steps to prevent.