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tv   Business Beyond  Deutsche Welle  November 17, 2024 4:15pm-4:30pm CET

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position and according to what we hear here, the party congress and responding with the greens really want is to stay in government up next business beyond looked at how china is massive traits or plus is impacting, developing economies. that's next. the so either thing do the same way you expect and more different things from life than your parents. i just want to pursue what that's my thoughts or you think your kid is 2 different, risky, irresponsible, reasonable port. is this not? i want my son to read, i'm a doctor to in the cloud. it's time to to get your generation with a sleep asked. and then when generation smash watch now on youtube
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dw documentary says kind of when it feels like therapy the to better understand 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, promoting. 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 place heavy restrictions on chinese imports and investments in the represents perhaps the most um, explicit sort of rivalry economically in terms of the sectors are 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's 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 sectors such a steel of sort of 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 of the asian studies at yale university and non decent rush concept,
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an economist at marcellus investment managers, and one by one, is it a tronics or the other is sort of set up on the other is pharmacy to those tenants? electricity, electric vehicles, and also in the sectors particularly on southern manufacturing goods tie can fast dr. products. and you guys heavily dependent on china, not only for the final product, but also for an intermediate product. the chinese, upon me is the one move out date. the prices are, oh, i still struggle with cuz it'll be nice and it will end up going back to the uh so that i, that was oh and even is able to see what all these reviews and that is something that can either be to get they have excess capacity and to look into it. so they've been doing the data in, in countries, and it can be off. it's not going to confuse that to the only way for indian companies making the same intermediate goods. for example, of steel cheap imports from china. i've been disastrous,
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but companies which need them for their own production. welcome, the imports, the very low price, that means the input prices are really low and the profits are much higher. so that's the reason why you need a some fuel. the companies which use trainings for doctor that is going to do with you, i really don't need it. the indian economic policy on china has been shifting 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 stuff from the government in india that we need to integrate our sales with the chinese supply chain and we need to get chinese experts. we need to get chinese technology. i need to get chinese investments. we need to get these china plus one company, which i'm moving out of china into and to boost indian manufacturing for the next 5 to 7 years. he says india is coursing chinese investment in 3 areas. which few of
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those vital to its economic development is wayne taylor. the government is really built in chinese telling me that our products uh, on the line with that is that the whole, the, the whole electronics. so the whole gamut of electronic sector, the secondary sort of boss is the code of the electric lea codes. yes, the china india relationship both economically and politically fundamentally remains one of rivalry which complicates how the picture was developed. a lot of them were often anything, 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 our sense of maturity supply chains. last name for china investment to com. is this really going to head thing in the long run? considering the jo started environment and the geo political environment, english india operate, it's including set to end up strength, a china increasing china as boss along china to deal with it's over capacity
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problem and the initial investment that it has. and the people to send an argument, are you helping china? why wouldn't have 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 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 solely beans in iron. or it has long enjoyed a trade surplus over china in recent years, even with china whitening its overall global trade surplus. it's deficit with brazil has gotten bigger. number 0 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 brazil 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 benefited 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 starts with 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. the 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 the country has been trying to address that. we're trying a different way, 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 for chinese direct back in the world. the brazil example shows how imposing tiresome china can be part of a strategy to attract investment,
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develop domestic industry, and create and protect jobs. so that changes even the perspective that uh china has about the 3rd i think resist concerns are very clear in terms of why what we are worried about. and this is very important because when you come from a perspective of trying to as for tax, your own ability to create jobs as well, paying jobs, industries are 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 stars have 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. the chinese government explicitly refuses to, let's go floor, i understand this are true. so the labor intensive sectors,
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and i'm thinking of tech style carries on bloss furniture, etc. and that's considering china is raising labor costs really should go elsewhere . i should go to the counties that i sent you probably to stay in china inbox because of se subsidies. and that prevents a lot of promotion countries from becoming major players in those sectors. and then using those sectors to move of the valuation, ac inevitable that uh uh, these countries will move off the value chain, right? and getting to a most efficient could do to a manufacturing activities. that is what happening in china nowadays. so you can manufacture menu, fight in products like cellphones and computers. so china is to realize that a, a can knowledge just continue exporting to these countries. it should try to
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promote local manufacturing capacity. 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 disc from china, but that, but deal with them, those capacities guaranteed do not exist in india. so the broad idea is that we need to work a job whose date we will be very careful by doing so. but really to work 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 outweighed the con, the, they the kind of, the, the cooperation and for other countries is going to be the other way around. but i think rivalry is always 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 that 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 playlist and the video description. thanks a lot for watching until the next time. take care the the slow eyes on like all the visual stories. hello. i called her but he said ok, unveiled. all these for his i'm very,
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