president xi said the deal will offer bigger markets and a better business environment for both china and the e.u. after 7 years of these difficult negotiations chancellor merkel pushed a fellow europeans to reach a deal before the year and deadline but the agreement could harm the new biden ministrations relationship with brussels join me now with co-host and swan and host of economic of day author of the sickness is assistant professor richard wolfe professor wafa let's begin with you what does this investment deal mean for european companies and what does it mean for china. well basically what it does is it shoots out the relationship between the european union on the one hand and china making it easier for trade for capital flows for investment for a cold. development between the 2 countries it encourages investment in both directions it is a very important she had

a lot of obstacles i think 2 things made it happen. the fact that you are up is that our mind is the british compared to what it was before and the other thing was mr trump's nationalism and us delivery to china that meant that both europe and china are worth faced with problems that they're now going to be in are by a closer relationship with one another and that is a way in which people can see a new world economic order emerging well united states is concerned the new incoming by the administration they they are worried because they are trying to get european allies to go harder on china and with this new deal they're trying to obviously negotiate and implement these these are these new economic you know deals that will help the relationship between the 2 countries about i do want to ask you

as a there's a new number new number a report that show that china is going to overtake the u.s. within this decade as the number one economy in the world we've talked about this before. it looks like it's going to happen sooner rather than later what does this mean for the united states. it is going to happen sooner rather than later later was at least 10 years now we're looking at about 7 years about 3 years sooner than we had thought and it might even be sooner than that because keep in mind you know when you're looking at these numbers when you don't include things like world wide pandemics that shut down the supply chains and then we watch as china redoubles its effort and gets manufacturing moving again at a breakneck pace and the u.s. has not done that and other countries have not at china is on pace actually maybe to get there even sooner than 7 years from now but here's what's really fascinating is that what the chinese have managed to do is they have become not only the most

desirable market in the world for every company and every manufacturer right who once their products their goods their items to be sold in china and by the way that really is the value of what china is bringing to this european trade deal the european manufacturers and companies that are trying to get into china are thrilled at the idea that they have access to it the u.s. wants to slow that down and the u.s. is attempted on many levels to slow that down but the problem that they run into over and over and over again is that china has all the bargaining chips china holds everything right now they create a lot of the manufacturing but they also have access to the markets that everybody wants access to so it's a win win for the chinese it's also a win for the chinese in that as much as the u.s. might want to create disruption for chinese technologies right now the chinese have managed to go around the u.s. that one bill one road initiative is a very powerful way of kind of seducing and pushing other countries to play along and i don't say that in a way that says see the chinese are manipulating because the u.s.

broke the playbook and manipulation of other countries we've done it for decades it's just now the chinese are doing it better than we are and that's why we're frustrated but if they have the students in then becomes a teacher. but but a. special it won't it cannot china can tell it also wanted it wanted to go into the energy sector as well i know that was a big key part of this trade right. yeah absolutely it is but it's bigger than even just that it's the fact that the chinese have figured out ways to say if we want to have unilateral relationships in africa in across europe we don't need the united states to be the broker of those things and the problem is that for many many decades the u.s. has been the sole broker of all those kinds of agreements if you want to do business worldwide you have to have the u.s. as a blessing that is no longer the case it is becoming the case for now you have to have china's blessing and the chinese have yes they've manipulated markets to make that

happen yes they did the global situation to make it happen but again you can't say that and not recognize that the u.s. did it 1st we were the initial country that was doing that for the past several decades to say we'll control who gets to do business with whom now the chinese get to do it professor what i want to talk about these numbers that predict that china is going to become obviously the world's largest economy in just 7 years china has not fully recovered from the shock of the crown of pandemic they did we did did find out that exports dead girl by 21 percent we talked about this a few weeks ago what's going on here. well i think what you're seeing and it's a painful for me to have to say that there's no way around the chinese adopted a really strict harsh lock down early in this and then the best example is the city with millions of people in it who want if you go to war one

today and there was just the report the other day from radio if you want to or wanted a people are not wearing masks they're going to call it's not in violation of the lockdown but because they don't need it and the more they demonstrated that actually i know mobilization of all public and private to confront this disease in the status way constable turns out to have been the best economic policy trading off between pandemic and economics which is what we were told each year turns out to have been a big big mistake and then is quite right that there are better solution for the pandemic is now helping them make the economic gains that are really changing the playbook for how the world economy is going to work and the years of the final irony about the deal with europe the last time historically europe went to china it

went to carve china up the germans the french the belgians those anish everybody took a piece of china basically and ran it now the shoe is very much on the other foot and the chinese on the very concept of these 3 historic reversal of the role now you are up comes offering deals in a completely different relationship that is much more like equals than any years the old colonial system and i think it marks a real turn me on and a for much of the world that is also growing in that direction well much like ben said china has the upper hand here they're trying to make to health what's. e.u. with other countries while the united states. you know still under the strain we're going hard on china then there's a belief that there is a coming backlash against china from global powers obviously the united states is one of them pressuring year opinion in life to to work to really were tele work kind of against china sort of speak is there any truth to this besides the think

sample i just gave yeah i think there is i do think we're going to see more of a pushback and more kind of global backlash we've already seen it across the board in certain ways for instance with the technology sector the way story which we've covered extensively as you know there is certainly some backlash that's there and it shouldn't be in china's in a leader is really in an interesting position because he is pushing very hard right now to really move forward at a breakneck pace to really dominate the world in terms of what china is able to do i think the problem that the u.s. is going to run into is that we have put ourselves in a position where we are far more dependent on china than they are on us and if we learned anything during the for track trade war between the trump and the tradition and china it's the chinese didn't really have a whole lot to sweat here yes there are some companies kind of that were an apple

at that but the truth is that the tiny out of that situation in a much better position than we came out of it because what jobs really big come back none manufacturing didn't come back nope sure didn't but the chinese still have the upper hand pretty much across the board in that way and that tells you something about where the rest of the world stands and i think the professor is right when he says there is far more humility coming out of europe dealing with china today than there was in the past professor richard ben swan ben stick around we have another story for you later but thank you both for your time today. a new strain of the coronavirus 1st reported in england has been discovered in the united . states in colorado and now the governor is working with health officials hoping to share and answer questions about what this newest mutation contains r.t. correspondent atocha suite on the west coast and the bureau with the latest natasha . yes they are the governor of colorado addressing this new strain of co that after

a colorado national guard member test positive and many are wondering if it's more contagious and will the new vaccines work to contain it the man who tested positive is reportedly in isolation just southeast of denver and interestingly enough just by contract in this new strain health officials say he has not traveled recently and a 2nd suspected case of another guard member is being investigated governor of colorado he is saying that the testing numbers have recently gone down possibly as a result of the holidays. we want to encourage anybody with. a cold like symptoms he's. better to identified early and. mobile and family members and others and to get the treatment. now scientists in the u.k. say they believe the strain to be more contagious than previous strains but the good news is they say the current vaccines seem to be useful against it the u.s. surgeon general however says these findings are still being looked into. by

refuting what they did storage to be true which is the biography which all this movie made to make you treat it doesn't the times already this year that doesn't mean it's more dangerous it doesn't mean more contagious and nurse and california who received the pfizer vaccine still contracted the crown a virus the 45 year old man who works at 2 different hospitals posted on facebook that he received the vaccine on december 18th 6 days later he became sick while working at a covert unit on christmas eve he tested positive the day after christmas and other vaccine developed partly by the university of oxford has been approved for emergency use in the u.k. officials say the 1st set of doses will roll out on wednesday and if you have to the 2nd dose is just a few weeks and you can do. so if you. got some protection. that's actually allows just under control.

now mitch mcconnell objected to the house's proposal of increasing coronavirus relief aid on tuesday and this also goes against the president's veto house speaker nancy pelosi condemning mcconnell and senate republicans wednesday in her address saying they should pass the bill giving $2000.00 stimulus checks to the american people in blocking it they are in denial of the hardship that the american people are experiencing. have. to nationally and everywhere their lives and livelihood and many cases are on the brink. now the discovery of this new strain has led the centers for disease control and prevention to issue new travel guidelines travelers arriving to the u.s. from the u.k. well they're being required to show proof of a negative covert test reporting for boom bust and harshest suites are to.

a solitary day for the u.k. as lawmakers approved the historic drugs that trade agreement the u.k.'s members of parliament backed the deal by a vote of 521273 just one day before the december 31st deadline u.k. prime minister boris johnson said the deal will open a new chapter for britain and hopefully benefit both sides but this deal gives us is i would say pretty much the best of both worlds because you have a gigantic free trade agreement which you also have the flexibility that people wanted in that we all care about to do things differently and better if you if you choose and it means certainty you from generally the 1st after all this for the obvious we've got certainty for. the business got certainty for holders for aviation. the budget deal ensures britain and the $27.00 nation e.u. can continue trade without tariffs or quotas the annual trade between the 2 totaled

$894000000000.00 and hundreds of thousands of jobs rely on it while the e.u. ambassadors approved a provisional deal on monday but you parliament vote isn't expected until next month. time now for a quick break but when we come back the pandemic economy has forced many companies to pull away chains are fighting the dean of miami harvard business school about what is being done to limit backlogs and disruption as well as what changes may be sure to say as we go to break here the number.

was under make no certain you know borders just like. this until. we can do better and we should be. everyone is contributing way but we also know that this crisis will not go on forever the challenge is crazy to respond. so many good people are helping us. it makes us feel very proud that we're in it together. some people would associate optimism with risky behavior because they don't want to

and like the trolls they don't want to invite the state they don't want to invite to see out mob they don't want to live by all kinds of trouble that comes with optimistic think throughout history optimists have been punished it could be galileo it could be copernicus it could be einstein it could be all sorts of be steve jobs and they were punished for their optimism but now there is no punishment for relentless optimism. the world is driven by a dream shaped by. the day or thinks. we dare to ask.

kovan 1000 has a wildly altered the way supply chains operate the pandemic snarled the world's sprawling supply chains for months shutting factories disrupting shipping and making it difficult for companies to get products from factories to consumers the changes have been so dramatic that many firms want to for every change the very definitions of supply chains joining me now to discuss is john quality family time which school of business and let's welcome back who must co-host ben swan let's start with you many companies they're looking at ways to prevent supply chain disruptions in the future the ones we saw during the pandemic is this is this a new way of doing business. supply chains are extremely critical to the efficiency of the global economy and pretty covert sure in the free trade area if i can put it that way goods and services were moving with

increasing lack of friction across national boundaries this gave companies the confidence to rely on extremely long supply chains typically from asia into the u.s. for example with covert and the tariff war combined disruptions caused many companies to reassess their supply chains particularly looking at diversification away from single suppliers and away from single countries of supply china in particular in the short run there were certain low tech products that. shifted some supply out of china or into viet nam and other southeast asian countries but actually it's very difficult to alter the supply chains and to set up new ones in a short fashion so one of the things if i may just say connecting to the earliest

story professor wolff referred i think correctly to the speed with which china restored its supply chain back into the western economies its main customers and it did this because it was obviously wary of the fact that there was an appetite to diversify to other sources beyond china so the foster it could get its own supply chains restored and running properly again the less chance there was going to be of losing market share for the long run to other suppliers out of a. well much like you said we saw this even before during the trade war where the united states and other countries were changing and their supply chains and moving it from china to vietnam india other other countries we talked about diversification and you're saying that a lot of people have changed instead of manufacturing from single suppliers to

others then what are other examples of things that businesses are doing to protect against the these future disruptions. yeah well i mean obviously with the dangers that there is absolutely correct it's the goal is to change what it means to have a supply chain where that means moving factories closer to home diversifying what countries they're in. deciding whether or not to what you can actually create yourself there's a company out of australia for instance that creates titanium powder it does this for the purpose of creating weapons and defense systems this company instead of now having about a dozen companies around the world that collectively will create this powder for them out of metal have decided to do it in house and so they have instead of continuing to depend on supply chains around the world they're doing it on their own they're creating that in that way so there are there are a number of ways that this is right now in some cases it is about saying let's use

fewer factories in other cases it's about saying let's make these as as close to home as possible you would think that in terms of what we just talked about with china that that would have been china's undoing and the dean makes a great point that the speed at which china was able to get its supply chain systems back online essentially saves its economy because if you don't the rest of the world moves on from us quickly as possible that was the opportunity that other countries had to be able to get a share of that supply chain market i would say they failed to do so china knew it was coming so they were prepared to do so we are watching a massive shift here on e-commerce i want to talk about the move from end person retailers to e-commerce economy in a way that few really have to. dick did what happened at least at this paper this this quickly has a pandemic killed in person retail. certainly not killed it and there's incredible entertainment and social value to and person retail that i think

will see a resurgence and demond once the pandemic is clear but that having been said there's no doubt the pandemic has accelerated the speed with which call mess has eaten into traditional retail and we know that many marginal shopping malls for example around the country will simply not come back i think one of the great stories of the last few months is actually the incredible ability that. was on and other companies in this space have shown to be able to adroitly adapt to massively increased amaan that was unexpected in the short term and all of their suppliers including the the shipping companies they rely on the back room computer software and systems companies so they rely on all of these

companies were able to step up in the short run to accommodate the incredible increase in demand that is really a major positive story and eating from the pandemic in terms of business success well but are there any crocs in terms that we're seeing as an e-commerce side that perhaps we hadn't expected to see during the pandemic. yeah i think there are a 1000000 example. does work with i think the exact one example you could give would be the sony and it's rolled out of the p s 5 just as as an example over christmas time anybody who has tried to buy a p s 5 gaming system it has been pretty much out of luck for the last few months it's a fascinating thing go online and just search for p s 5 you can't find them anywhere and the reason for that is because most box stores didn't stock them internally with physical items so target walmart best buy the usual places you would go to buy

one of these these items they're not there instead most of it was online though here's what we saw happen over the christmas season something that's never happened before which is that scalpers and bots have bottom all up so every time there's a restock walmart or best buy somebody tries to to restock with the box immediately buy them out in fact the other day walmart called on congress to intervene saying that they need congressional help and laws to be written in a way that prevents scalpers from stealing using boss all the items because consumers can access them that is something that is entirely of an e-commerce world and not of the brick and mortar world where if they were actually in the stores you could walk into a wal-mart you could walk into a target and you could buy them and i think that's where you use the term cracks there are cracks in that system certainly where consumers will say hey maybe this e-commerce thing isn't all that it's cracked up to be if i cannot walk in and buy the thing for christmas that i was hoping to get that's why they're thick curbside

when there actually are that but they're not physically in the store they didn't sit right at the store and when stock it when they haven't stock that's true unfortunately we're out of time again john part of the miami herbert business school and the best co-host investigative journalist pentagon thank you both for breaking it down to us. that's all for now you can catch him bust on demand on the part of the t.v. after the next time. this sport is not the 1st snow. it's not a money spinner but it is expensive. and it's dangerous . this is speed.

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an entire village in alaska has had to move if another country threaten the wife of an american town. we do everything in our power to protect. water that escaping climate change is the same threat right now alaska seems some of the fastest coastal erosion in the world we lost about 35 feet. 35 feet of grass in just about 3 months while we were measuring. it is fast in the east the river is $35.00 closers and how that was or were a part of america or 1st for. this

just so midday here in moscow in the headlines this new year's eve england extends covert restrictions on the number of areas affected as the right of infections spirals following the discovery of the. new highly contagious strain of the virus. other news the e.u. strikes a milestone trade deal with china removing key barriers to investment comes after years of talks and despite the incoming administration demanding it be consulted ahead of the deal. plus the year that was you speak to some of the medical workers around the world who've become the unsung heroes in the year of the pandemic. and we've seen people die in the scene people coming in they can't brain we have to be way down what we want info.