and i'm joined now by business is clifford coonan who has long experience covering china clifford the asian development bank isn't the only multinational lender that signal close look at chinese status is it that's right the world bank is also examining it now and i think people are starting to ask questions about do we really need to be lending money to china when as we saw last week we had the belgian road forum in beijing of which china highlighted how it's lending money to other countries in the region and to build its influence and to to move into other parts of the world so i think people are wondering now what is going to happen with with lending and china now the a.t.p. says that it will keep lending for climate change product projects in this case talk about china is that something that's just really needed in china or is this just sort of a face saving measure to keep lending to them but i think as we saw in the in the report just there you can see the era beijing i mean pollution has got a lot better for the environment is very much on everyone's minds so i think projects w

residence a china expert clifford tour and here with me in the studio and let's go to conrad in frankfurt first hope he's on the line concierge right now come on ask anyway it's easy to blame donald trump for for this. dropping in influence really. is it just down to his rather erratic foreign and economic policy. no it's not we should forget that the united states is of course very important market for europe for example but it's only one market. still even if we take into consideration that the americans and the economy they're setting the tone in the world it has to be said the most important market for europe is europe itself even after breck's it the european union will unite four hundred fifty million consumers and it also has to be said that markets like china have become more and more important in recent decades not only because of car sales but also because of the enormous influence of china in electronics elektra of parts made in china used in virtually everything produced in terms of consumer computers etc you simply cannot avoid china and that also means that you have to inclu

markets already nervous now with in the studio to shed some light on the background here is the china expert clifford coonan and often of course is also standing by in frankfurt the cliff let's start with you it's hardly an accident happened so soon after the strong job state of from the us is this just trump's tactics it's definitely goes in tactic he felt emboldened by the strength of the jobless figures in particular but it's also a bit of negotiation going on the chinese side too they're not prepared to just lie down we're hearing i'm hearing from my sources there that that she jinping wanted. some of the concessions that the negotiation team was making he very much wants to put his imprint on the trade deal that comes out too so i think we're at that stage in trade talks where negotiations they can kind of see the finishing line but there's a lot of a lot of naughty bits and pieces to go through yes but investors seem to disagree that this is just tactics conrad. in frankfurt why a market like this. you know you know whatever it is tactics are not hot it makes the optimism go away optimism that

business good to have you clifford the tariffs that were imposed they came even though talks are ongoing between china and the united states so what's the strategy here well i think what we see is are two very different egos easing styles we have donald trump style which is quite aggressive into the deal sort of trying to show that he's strong and in a time when talks are ongoing he's kind of adding to that situation of. within the deal whereas the chinese are keeping you know very little about how decisions are made there so i think what we're seeing are two different styles of work and pursue trying to work out what's going on present trump of course he thinks that china has been taking advantage of the u.s. he thinks that terrorists will be good for the united states here's what he tweeted just a few hours ago. cares will bring in far more wealth to our country than even a phenomenal deal of the traditional kind he says also much easier and quicker to do our farmers will do better faster and starving nations can now be helped waivers on some products will be granted or go to a news source you know

clifford coonan here in the studio thanks to you both . certainly the biggest threats to global trade is the dispute that the united states and china the world's 2 top economies have been locked in just this month 3 s. ramped up tariffs on chinese products in china quickly retaliated with its own terrorists which will kick in on june 1st and just weeks ago the 2 sides seem close to a deal but now china and the u.s. are digging in. the trade wars escalating and the message donald trump wants out there is that the u.s. is winning. doing very well with china we'll see what happens but i can tell you john you know very much wants to make a deal because the companies are leaving china to avoid this carol china is becoming a very weekend day. in the battle of wills between the world's 2 economic powerhouses trump is confidence china will seek a deal on his terms but beefed up by decades of growth and modernization china is convinced it can hold out far from rolling over the reaction has been defiant don't say we didn't warn you thundered the communist party mouthpiece people's daily as it started to the big guns after the u.s. took aim at tech giant

china isn't revealing what steps it will take next. joining me now is cliff it's comin an analyst from business says welcome clifford what do you make of these latest developments now the status so imposed on china by washington as talks are set to continue on trade yes and as you remember as well these are coming after they were already extended so it is it's quite a significant move i think it means that america is trying to show that it's strong and that goes the asian it's going to follow through and also show a little bit of it's not worried by by the developments and it doesn't fear china it's almost it's almost like a boxing match you know we've got a lot of flexing of muscles in the in the build up and people say i can do this i can do this so i think that's that's the drama we heard it from so that these talks are going on in what he called a congenial man of the do you see this move as an escalation of the dispute i see it as an escalation i see two very different goes aging styles at work he may describe as congenial and he likes to see himself as the master of the art of the deal for china this is a negotiator who goes as t

devious clifford tune in from the business desk has more on that clifford good morning to you today rather the u.s. is adamant that china's walk away products are a threat to its national security it's threatening consequences or any other countries including its partners or do business with while way is germany willing to go down that road well it looks like germany isn't that germany is very keen to this is a national issue germany wants the 5 g. technology to provide so it looks like they're prepared to stand their ground on this issue but at the same time they're trying to keep relations smooth with america so it's a very delicate balancing act at the moment i think for the german government ok and one that is being discussed right now no doubt with the with the chancellor and peo what about germany in terms of the larger the broader picture of tariffs from both sides between the u.s. and china what is germany doing right now to better prove relations between those 2 countries are they trying anything and where are they lining up are they more pro china or pro united states in this battle this is a very difficult posi

s residence china expert clifford tour and here with me in the studio and let's go to conrad and frankfirst hope he's on the line concierge right now come on ask you anyway it's easy to blame donald trump for for this dropping in influence really. is it just down to is rather erratic foreign and economic policy no it's not. we should forget that the united star states is of course very important market for europe for example but it's only one market. still even if we take into consideration that the americans and the economy they're setting the tone in the world it has to be said the most important market for europe is europe itself even after breaks it the european union will unite four hundred fifty million consumers and it also has to be said that markets like china have become more and more important in recent decades not only because of car sales but also because of the enormous influence of china in electronics elektra of parts made in china used in virtually everything produced in terms of consumer computers etc you simply cannot avoid china and that also means that you have to

in frankfurt clifford this announcement came quite as a surprise particularly to the mexicans tell us more about the well he's done it again just as we were all eyes were focused on china on the trade deal there so when he comes out with a new very political move i think aimed at mexico which has opened up everything again in terms of international trade in terms of how america looks at it on itself and its protectionist mode as it is at the moment so yeah a complete surprise and we're all trying to work out what exactly this means for the for the broader trade issues that are going on at the moment and i think surprise is the key word here only looking at the share prices in asia this morning investors are shocked. as the shares went on quite considerably when the news came they didn't end up quite that low but for example the nikkei lost over one percent and hong kong was also down the sort of the mitigated effect at the end due to some bargain hunting we hear why that because may was such a terrible month and some people even though there was this news from trump thought that the last day of the month might be a good idea to cut back just a little bit into the into

china they did it's a real big part of g.d.p. so i think they need to keep the chinese on side ok well clifford u.s. tariffs on a close regional partner mexico have been announced as well president from saying he's slapping a 5 percent tariff on all goods coming into the u.s. from mexico the president says the towers will increase until it's clear that mexico is doing more to prevent margarines from crossing the southern border illegally a national emergency has been in place at the border since february and the tariffs camas trade talks with mexico continue. 2 years after negotiations for a new nafta began everything seem to be working just fine only today we will send the relevant information so that the senate of the republic can ratify the free trade agreement with the united states and canada you can either. then an unexpected shot fired from washington u.s. president trump tweeting about a 5 percent tariff on all goods coming into our country from mexico trump threatens to credibly increase tariffs until the illegal immigration problem is remedied. their reaction in mexico shock. exactly and i