over how serious the problem is, russian scientists believe the facilities can still be operated safely. will see these 2 cosmonaut so releasing and stay with us up next business beyond looks at how china is massive traits are plaster is impacting, developing economies of the global sound. so mike, look who, i'll be back with more news at the top to the next down. the my name is the calls back. said loud. thank you so much for joining in. welcome to don't hold bad. a lot of people do that. it's all about saying it aloud. that's what it being nosy bay, like good, everyone to king. you're healthy award winning called called the china 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 tariffs 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. beijing faces new trade barriers in the global. so 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, but threat 2024. that surplus has been increasing dramatically. exports have been rising fast. weak domestic demand means inputs have been stagnant all year. in june, china is 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 commutable and 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 in detail. the time itself has become to be that the bus was in europe in 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 used to describe this or if it's up to the base, some conventions. and of course, china doesn't acknowledge that it's hardly 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 core, underlying issue is the crime, domestic and bottoms within china. is it going to be um, between demand and supply, which has massive speedo, the effects on the wealth? i answered them 1st simply what happens is that in recent shows, we've seen the very 1st increase in china's production capacity, which was fuels by stay sports. and 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 you're home market. um, you know, no matter how big it is, they'll be someone that ask 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 size, was published in may 2024 under the headline accusation of china is over capacity. the global says just doesn't bias 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 are central to the issue. it's economy has

not recovered from the co would 19 pandemic or the property crash, which recently hit the contract. 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 boy exports. in fact, the thing we wouldn't be talking about over capacity is china. is it going to you was crying as fast as it, the train is gardens phase, that it is. but the upshot of china is changing. trade patterns is that it has dramatically increased its overall stick in global of manufacturing between 20192022. china has increased its share approval manufacturing exports by its 3.4 of the people, frequent 5 person face points, which is quite a known as the men 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. 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, the u. s. and the e u. particularly on electric cars. that has led beijing to seek to strength and trade relationships with a whole range of developing economies from india to indonesia, mexico to brazil, vietnam to silent. but these economies to 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 chinese investment in building production plants locally. brazil has also placed tariffs on steel when

india, indonesia thailand. and so the africa of poto, barriers and countering chinese exports across the whole range of sectors from steel to 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 from 2014 to 20. 19 . 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 or 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. uh, 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 markets, just china. in fact, to some extent they've been using cheap chinese inputs and to, to power their own manufacturing industries. and to make products that they're

exposed to the world, 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 and 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 in bolting inputs from china. and then, you know, i'm making products at home, but it's been re exposed to the wells. this will you see that that's ending 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, was 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, slightly 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 chinese economic relationships with the global says, i spoke with lina, binocular and associate professor and 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 term that everyone agrees on. so i asked lena for her view out of a surface level once someone says global southwell, if we imagine this to be a geographical category, literally have several questions about australia, about japan. are these in the global south? are these in the global north? but i think a better way to define the global sales 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 struggled with the issues of colonialism. issues of inequality

is an injustice is imposed by a global order. as for china is 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 in his diplomatic 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 those struggles with china also plays on its economic might when cultivating these relationships. the 2nd identity of china players and it's one policy, is that 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 4, the years becomes a 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 when it's built in 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 in kenya and sri lanka, to name to recent examples for direct chinese outbound investment discharging 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 tires. 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's domestic economic problems, the streams because 1st of all, the trend is going right much long to let's move this company is best for growth and create trucks of roads. when there is a huge unemployment program in china, and so she really collides everything approaches, it will just west and that's but problem the you can draw the line between the spacings because i don't believe that spaces is a morally relevant criteria. and any more than i believe that rice or sex is on frontier. 2 2 should. 2 2 humans are

closer to a chimpanzee vanishing. pansy is even to a dog. the dog here series about our complex relationship with animals. watch now on youtube. d. w documentary, the happiest people on the planet. we find out why the fence plays 1st almost every year. would you pay $200.00 zeros for a fruit see who will as we explore citron in italy and beautiful budapest is hungry is capital really, as pretty as it seems on instagram. the story isn't more coming up on your own macs, [000:00:00;00] the