tv Business Beyond Deutsche Welle November 13, 2024 10:02pm-10:15pm CET
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to bring to seeking justice for the victims of fantasize starts november 21st on the w the to better understand him. major economies in the global south face the challenge of china surging exports. let's look at 2 of the biggest examples. india and brazil, starting with india. few countries exemplify the complex balancing act of competing and collaborating with china. better than the world's most populous nation. under no rend remotely, india has sought to expand its own relatively modest manufacturing best through it's making india program. part of that, i've seen the country plants, heavy restrictions on chinese imports and investments. or india represents perhaps the most explicit sort of rivalry economically. in terms of the sectors they're going after,
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in terms of parallel industrial policy programs, india has these production linked incentives, trying to boost investment and manufacturing capacity in areas like consumer electronics. and is trying to attract investment from outside china. china is trade surplus with india is whitening dramatically since 2020. it has more than doubled to around $100000000000.00. but it's a complex picture by some indian sector such a steel of software to the hands of cheap chinese imports. holders are heavily dependent on chinese, intermediate goods for down stream production in india and the value of the low prices. to better understand the dynamics, we spoke to, to experts with detailed knowledge of china, india, economic relations. sushi on seeing lecture inside the agent studies at yale university and non decent rush concept, an economist at myself,
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investment managers in more by one. is it a phone its uh, the other is sold out? so one up on the other is pharmacy to those then, and it looks like the electric vehicles and also in the set does particularly on southern manufacturing goods taken for us, dr. products. and you guys, henry, dependent on china. not only for the final products but also for the intermediate products. so the. ringback one me is the one move out date. uh, the prices are, oh, we ask you a story cuz the and it will undergo actually, uh, so that i, that was oh and even if it was the one on these reviews and that is something that can either either get the having says capacity and the one who can do it. uh, so they've been de the benita in, in countries like india is not one of the countries actually lately, for indian companies making the same intermediate goods. for example, steel, cheap imports from china has been disastrous. but companies which need them for
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their own production. welcome the imports, the activity to price that these, the inputs prices are fairly low and the profits are much higher. so that's the reasons why you need a some fuel. they do companies which use chinese products are they going to do with you don't need it. and do you an economic policy on china has been shifting and not just because of dependence on certain cheap imports. while the country wants to reduce that dependence is a growing belief that india needs to become more aligned with china in certain areas to achieve its own manufacturing and economic ambitions. there's a lot of stops on the government in india that we need to deviate our sales with the chinese supply chains. we need to get chinese experts. we need to get chinese technology. i really need to have chinese investments. we need to get these china plus one companies which are moving out of china into india, to boost indian manufacturing for the next 5 to 7 years. he says india is coursing
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chinese investment and 3 areas which few of those vital to its economic development is think the government is really caught in chinese telling me that our products uh, on the line with that is that the only the only electronics. so the whole gamut of electronic sector, the secondary sort of boss says they totally, the electrically codes. yes, the china india relationship both economically and politically fundamentally remains. one of rivalry which complicates have the picture was developed. a lot of them were often getting dance scholars in or died. diplomats have raised questions . economists have raised questions about whether this is the right cost to date, going along with china ongoing being to get into getting a sense of which on the supply chains, asking for chinese investment to come. is this really going to head thing in the long run? considering the joe strategy conglomerate, and did you put a good environment in which india operates? it would in fact end up strength a china increasing china as boss along china to deal with its overall capacity
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problem and the initial investment that it has. and the people to send an argument audio has been china, why you will have to india in this case, how india balances. it's growing depends on chinese imports. and it's need for chinese investment with its own desire to build up its manufacturing best will be closely watched, not least by another major global economy with a similarly challenging balancing act present. i like india, brazil, as a member of the bricks group with china, with a population of more than 200000000 people. and one of the top 10 economies in the world. it's a crucial partner for china. you have on like india, brazil actually has a trade surplus with the country present as a major commodity producer and through exports such as, sorry, b and some iron ore. and as long enjoyed to trade surface over china. in recent years, even with china whitening its overall global trade surplus, it's deficit with brazil has gotten bigger. and brazil has been one of the most active countries encountering chinese export through tyra's recently,
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imposing levies on steel and electric vehicles. to understand how presented navigates, it's evolving but critical economic relationship with china. we spoke to the risk of calls leads to china analysis group at the brazilian center for international relations. she emphasizes that despite the recent terrace, the countries enjoy a positive economic relationship. brazil has really benefit from china as rise as the global economy super far. no big deal is one of these countries. that's because of the nature of exports to china. mostly commodities, really benefit from the fact that china price is demanding commodities on the regular and sustained basis. but like with india and the many other countries with concerns around chinese over capacity, it all comes back to the idea of protecting domestic manufacturing unemployment. but it is a big country with
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a big population of about 200000000 people. and obviously the best jobs are created in the industry. so we really have a concern to be able to maintain our industrial park going going forward. brazil has concerns over chinese export competition and dumping in multiple sectors from steel, chemicals, tires, to electric vehicles. chinese carmakers b y d i n g w. m. have invested in major electric car plants in the country. a sign of both sides eagerness to find a way forward for sale as a country has been trying to address that. we're trying in different ways, but you can think about the opportunities that are created by the different industrial chains in supply chain created by dig logical transition hard in transition. so brazil is already a major destination or chinese direct investment in the world. the brazil example shows how imposing terrace on china can be part of a strategy to attract investment, develop domestic industry,
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and create and protect jobs. so that changes even the perspective that china has about the concern i think for those concerns are very clear in terms of what we are worried about. and this is very important because when you come from a perspective of trying to protect your own ability to create jobs as well, paying jobs that industry is they're able to create a there is no misunderstanding about what your intentions are. the question we posed at the outset of this program was whether the current wave of tariff and a china from some developing economies, signals the start of a wider slash. there's little doubt that some developing economies, particularly in the global south field china, is current strategy is creating a serious challenge, or the chinese government explicitly refuses to less cool uh, floor plans manufacturing. so the labor intensive sectors,
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and i'm thinking of tech style carries on floss, furniture, etc. and that's considering china is raising labor costs really should go elsewhere . i should go to the companies that i sent you probably to stay in china inbox because of say, subsidies and the 3 banks, a lot of promotion countries from becoming major players in those sectors. and then using those sectors to move of the financial aid aging, they have it of all that, uh uh, these countries will move up the value chain, right? and getting to a most sophistic could do to manufacturing activities. that is what happening in china nowadays. so you can manufacture menu in high and products like cellphones and computers. so um, china is to realize that uh, a, a can not just continue exporting to these countries. it is, should try to promote local manufacturing capacity
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yet many developing economies believe they need both chinese imports and direct investment to achieve their central economic. and the idea is not to shun china 5 years, not to, you know, a couple of from china in a certain sense. the idea maybe to some extent deep disk from china about that. but the deal with that and those capacities kind of do not exist in india. so the broad idea is that we need to work with john, whose date we will be very careful by doing so. but really to of your time, china will always be viewed as a rival and always at the same time as a development model to emulate. so think that these 2 will always exist side by side. for some countries, the rivalry will be what out the way the con, the, the, the kind of the, the cooperation and for other countries is going to be the other way around. but i think rival reason was going to be there. it's a high wire balancing act. most of the emerging economies of the global says,
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walking down the line without tripping up. may hold the key to their economic success the and that's all for this episode of business beyond. if you want to see more of our episodes, you'll find our planets in the video description. thanks a lot for watching until the next time. take care the the books view. we'll tell you. happy that we are boxing the story. we have a, getting a visa is more difficult than finding gold listed to use force and for the fuser feeling about what's going on in the industry. instead of being
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