china. russia would not be able to conduct the war in ukraine the way it is without chinese support for that war. the same is true of china. china's military is highly dependent on the transfer of russian arms and technology and therefore makes the problem of deterrence from a u.s. stand point in east asia more difficult than it would be in the absence of that relationship with russia. you can look at this on the economic side, on the technology transfer side, on the diplomatic coordination side and so forth. and then the fact that these two are working together and are really glued together by a shared opposition to what they believe is an anachronistic, unfairly western dominated international order that does not accord for them the space and the status and the influence that they believe they deserve by virtue of their history and their civilization and their interest and geography and power means that they're now alternatives they're trying to put on offer, not just for russia and china

very tough on china. but my sense is, china is not freaking out about donald trump. but what is your view of how china sees the coming? trump of yours, 1st of all, congratulations on donald trump's. when in this presidential election, he actually deserved it. and now he not only has won the presidency of the repub, which is has now be in control of the house, as well as the send it. so its sweeping, we for mr. trump as well as the republican policy email little bit, i mean, not to be too facetious, like one party rule. well, it would never be. well, how do roy in the united states, you know, in 4 years times or a year times, or 12 years time, there will be a change of these issues in the white house. and for the 2 houses, it may change in 2 years, all 4 years. so i'm seeing a change is the rule of the game rather than uh, no change always continues in the same potty control of the united states. having said that, i think i do a maya. i don't want trump for demonstrating authenticity, indeed issue and cont

china. but that this alliance is short-lived anyway. there is an incredibly good job at showing us this is an illusion, this alliance. it will not just disappear because of internal differences. it is not an alliance that can easily be driven apart. but this is something which very much still exists in the minds of europeans. what have russia and china just don't get along with each other anymore? do we really have to interfere? isn't this something that will not last anyway? there will not be strategic moves to break this alliance apart, but this is the hope which covers up the lack of european action. the last point, let me go back to one of the shapers of this russia and china approach in germany for a long time, angela merkel. there is also a perception of china especially in economic circles in europe that still sees china in pre-xi jinping times, still thinks about china as a main economic exporter that underestimates the utilization of china and also underestimates the military links

friends with china. in all of this, how do young taiwanese people see their future? if you ask them would you consider yourself a taiwanese or a chinese? 80% will say, i'm only taiwanese, not chinese, because we're so different. hello, and welcome to a special and rather different edition of unspun world. as donald trump comes back to power in washington, i'll be looking at several of the key conflicts which he faces and giving a bit of a personal view of how we got here. this first programme will focus on the relationship with china, because china is a country which, over the last ten years, has become increasingly difficult for media organisations like the bbc to operate in. i've come to taiwan, a self—governing territory off the chinese coast which could become a majorflash point if president xijinping of china decides to invade it. the capital taipei is orderly, gentle, perhaps a bit drab, but certainly not flashy like the big cities of the mainland. taiwan is where the nationalist forces ended up wh

and the fact that there is only one china and taiwan being part of china on that basis. a lot of flexibility is an adapt ations can be worked out to satisfy the legitimate interests of many countries, especially the united states. because the united states care about free flow of chips and out of taiwan it, which in my view may be a very legitimate consideration. if president trump, who likes to be a president to engage in a lot of 1st goes to tie one, will china be able to live with that? no, i think if that happens, the diplomatic relations between china of the united states will be broken 1st. because china will never allow any country in the world, into the united states of america to have relations with both china on the one hand and taiwan on the, on the if you want to bets on taiwan since the united states has been on tie. while the national, who is the government several times in history, then you need to walk away from china. that's the, a quick pro cold situation. i don't think any real need to all the united states. want to solve it. you as relations with chin

it is fair to say with respect by peace and security china has the best track r record third, china'sonic supporter we firmly see you and at its core in the international order based on international law. chinese people always honor our common enemies and commitments. that's the first question. the possible consequences of the theworld splits into two differt systems. and how to do about it. i think if that is the case the consequences will be unimaginable if the world becomes divided. it would be very difficult for humanityty to address common challenges together and in a worst-case would possibly allow compensation. that would be a situation know can stay unaffected. president xi once said all countries in the world are like passengers inwe the same big shp we share the same future i need to act with stronger global solidarity to narrow down the division and avoid unimaginable consequences we should work together to bring to life t division of community with the sharedy document for mankind ad mentalities at that same time in this process, i think the role of major companies is very

russia is dependent on china in ways that china is not dependent on russia. but who is standing up for this alternative vision and pushing back most vigorously against the west? it is russia, not china. in that respect, it is not clear to me that they see themselves as russian partners and at some point russian greatness will not allow us to sustain that posture. bay: we have a question in coming from in from a member online. >> we will take the next question from robert hormetz. >> i would like to follow-up up richard's point on the trade issue. because one of the most important elements in trying to contain this grouping particularly in china, and to get other countries who you mentioned might be more attracted to china because of trade relations, the united states needs to have a coherent trade policy with countries other than the g7 oecd countries , which means a number of the emerging markets, global south. the problem is, in this administration, which you would have thought would have been inclined in that direction, it has been the opposite. like the p

your presence here today shows the importance of china's global engagement and the critical role china plays in shaping our shared future at such an important and critical moment. your excellency, china has emerged over the last decades as a key player in addressing global challenges and its contributions to global economic development are undeniable. china's commitment to sustainable development and its ambitious goals for a green economy are impressive. your multiple initiatives have the potential to improve global trade and infrastructure, connect continents further and forestall economic woes, especially for the global south. vice premier, you've been a pivotal figure in china's political landscape, known for your strategic region and dedication to advancing china's modernization. with a career spanning several decades, you have played a crucial role in shaping policies that drive economic reform, technological innovations, and sustainable development. your leadership in various capacities, including as director of the c.c.p. channel office has been instrumental in fostering intern

china has not made good — next two years. china has not made good on _ next two years.as not made good on their— next two years. china has not l made good on their agricultural purchases forfour years made good on their agricultural purchases for four years and if confirmed, next week, i would start pushing for them to resume the purchases and event i would conference with president trump on whether he believes that there should be inaudible.— believes that there should be inaudible. ., �* ,, ., inaudible. scott bessent also outline how — inaudible. scott bessent also outline how the _ inaudible. scott bessent also outline how the trump - outline how the trump administration could use tariffs for several purposes. firstly to address unfair trade practices, second, as a tool to raise revenue for the federal budget, and that, as leverage in trade negotiations. as for the use of sanctions, he said he was 100% on board, increasing sanctions on russian oil makers. the edge fund me is seen by many as a safe pair of hands for one of the country's most important economicjobs, m

i think china's economy is a curious _ is? i think china's economy is a curious thing _ is? _ is? i think china's economy is a curious thing to behold, - is? i think china's economy is a curious thing to behold, on| a curious thing to behold, on the one hand you have what everybody i think really understands and sees a lot of nowadays, which is a very advanced modern sector that is advanced modern sector that is a world leader in things like electric vehicles and batteries, wind and solar equipment, and a lot of manufacturing. this is a very dynamic part of the economy, but it is only about seven to 10% of the economy. much of the rest is pretty much flat on its back, actually. and so the numbers which came out for china today, which confirmed the government's target was met, it is always met every year, are a bit of a fiction, really. and don't really tell the full story about how challenged large swathes of the economy are by debt, by poor productivity, by overproduction... productivity, by overroduction. .. productivity, by overroduction... ., overproduction... tell me mo

and china. pointta that i i came up with that and i talk about that is you mentioned my time in congress, on intelligence committee, i became director of national intelligence and i was on other side of court curtain it wasor clear that china and china alone presented greatest national security threat. that was not something that i had seen as a member of congress. irwas pleased to see in unclassifiedt respect a recognition and a it is about that, that china poses that threat. unfortunately, what worries me most about china is that they have a lot of momentum, they didn't just become our number one adversary over night, we should have been talking more honestly and candidly, of china. how they are a near peer competitor to u.s. in so many places we look up on, what worries me, they are a near peer competitor and they have a lot of momentum and unified focus. in their effort and the way they are approaching this they want to replace u.s., they have a lot of resources to devote to that and dedicat

we get the china, you know, they call it the china curse. we get the china curse. their better and their air is dirty. carmel gat that our gift from china. >> all right. so talking about trump, about china, that has been the hallmark of trump's career. now though, china is pulling out all the stops to cater to trump. the vice president headed to his inauguration. chinese kids are even learning the ymca write the song heard at about every rally that's going to be performed at trump's inauguration. artists are making sculptures of trump, and there's one person very close to trump. oh, extremely close his partner. in fact, right now in governing, who no doubt is hoping that trump will be won over by all the flattery well, i'm a big fan of china. >> you can say that i mean, i've got a lot of fans in china. >> well, the feelings are also repeated. >> elon musk i mean, of all the people in trump's inner circle, musk has the biggest financial stake in china. i mean, it's it's you can't underestimate it. it's crucial to his entire business empire, to his hundreds of billio

and the fact that there is only one china and taiwan being part of china on that basis. a lot of flexibility is an adapt ations can be worked out to satisfy the legitimate interests of many countries, especially the united states. because the united states care about free flow of chips and out of taiwan, which you might view, may be a very legitimate consideration. if president trump, who likes to be a president to engage in a lot of 1st goes to tie one, will china be able to live with that? no, i think if that happens, the diplomatic relations between china of the united states will be broken 1st. because china will never allow any country in the world, into the united states of america to have relations with both china on the one hand and taiwan on the, on the if you want to bets on taiwan since the united states has been on tie. while the national, who is the government several times in history, then you need to walk away from china. that's the, a quick pro cold situation. i don't think any real need to all the united states. want to solve it. you as relations with ch

this is not the us against china. other countries need to protect their sectors against china. if you have tears coming on china from, from the you, from brazil, from countries in, in south east asia because of this same item, fair trade practices that china is using when it comes to electric vehicles. you also have concerns throughout the world, including the united states, but everywhere else about china is excess capacity that they're dumping into markets at this. hollowing out some, some of the industrial bases that, that you see in the us and you see elsewhere. so part of this is going to be use the world, you know, it is, you se, asia in parts japan, korea, what are they going to do visa v, china? and then how is china going to react? because if you see this, you know, china plus one this, this diversification of supply chain out of china because of the tariffs, the us has been putting out. it's not just the us and the japanese in new your opinions that are diversifying out of china. it's the chinese who are div

china is the u.k.'h $68 billion worth of trade going from china to the uk last year. miss reeves will be the most senior british official to visit beijing in seven years. as you mentioned, a concerted effort by labour to build bridges with china and ties have been strained in recent years, with allegations of chinese hacking and spying and its jailing approach pro—democracy figures in hong kong. ms reeves �*s tavern �*rust�* travelling to china with the governor of the bank of england and the chair of hsbc. as for what is in it for china, one of the main goals is more cooperation on financial services. china is moving up the value chain and the uk could help given its expertise in services and financial services. china is expected to be at the sharp end of donald trump's aggressive trade policy, which could result in tariffs of up to 60% on all chinese goods. chinese officials are already contending with the rapidly declining currency and a stock market sell—off and a protracted property crisis. the uk

most about china? and they are interrelated in terms of those questions. >> david, to the first question, china is both, they're both an adversary and a competitor. but they should be more of a a competitor and less of an adversary then and it's the other way around right now. we want to compete with china. we want to compete with anyone. american greatness is founded on competing in winning on a level playing field but that's not what's been happening and that's not what has allowed china to rise and what we now see from what you talked about the threat report from the intelligence community that china is our greatest adversary in the sense of the only other nationstate that is capable of challenging and even supplanting the u.s. as the world superpower, economically, militarily and technologically. we talked appropriately, david, about the great power competition that has become a term that we talk about in dealing with china and russia and its appropriate but i d a term with in it which is a greater

china can be helping the us in general.

china related perspective.zy: i mentioned ai. do you think it will be less of a u.s. focus played this year? >> ai was a big deal last year. it is this year. our focus this year is on enabling technologies as opposed to the big ln dems -- l and m's. you have micron technology about high-bandwidth memory, kal, a testing software company, but there is a european story. vat group. valves are critical to create a vacuum is within the semi minute process, and this is a very levered play into this. it is to keep it clean. lizzy: i also went to rescue, because this is what interest me about this list. what are your biggest leftfield ideas this year? >> that is an interesting question as i think through this. when that jumps out, and it is a household name is porsche. along with some of the other big auto manufacturers, it has tanked. we think that is an interesting story in 2025. some they have already announced , others that they will. we think there is an interesting, new product driven story to come through. lizzy:

in china goods. but, but this actually makes it a lot more expensive to do things in china because the tariff is applied on a 100 percent of the value. but only a 3rd of it is actually from china, a vacation. many people are terrified by now. they are afraid to go to hotels like this behind me, major fluids and that they are now doubting the safety standards of the hotels. and of course, there are many institutions and people to be questions about. we know that present drugs up type gone the has living is about to arrive in bullets to, to where a funeral is being helped to show his solidarity with the people. i said him, i know that there's an investigation going on, do we know what they are looking at as well? and there are 6 persecutors involved in this investigation and they are trying to figure out what exactly caused the fire. what do you have been hearing about has been reported since yesterday, and the fire was broke, called inside the kitchen on the 4th floor. the 4th floor is actually the 1s

helping to offset china tariff concerns following trump's reiteration. 10% china tariffs on all china imports still on the table. chinese stocks underperforming although i would note that this is following on from a couple of sessions of games. something where a breather was due. note that 10% is not quite as bad as the 60% that was floated previously. still, these declines in chinese stocks reflect how fragile sentiment is on the mainland and in hong kong. as i say, it's really and ai playthings to trump. -- play thanks to trump. double-digit surge to the highest level since july. some analysts have already put it as a green line from trump on all things ai. boosting not just the chipmakers but also data centers. cable makers. for a, among them in japan. also double-digit kleins -- climbs. you touched on this earlier. the boj on friday. i would just say when it comes to these tariff threats, it is showing up in the pressure on the renminbi and the yen. this is coming despite the expectations that the boj is good to go on friday. if you recall, when he gave his toughest -- dovish pres

china, figures show the econom i china, figures show the economy grew _ i china, figures show the economy grew by - i china, figures show the economy grew by 596, - i china, figures show the i economy grew by 596, hitting i china, figures show the - economy grew by 596, hitting the economy grew by 5%, hitting the target set by the government but that is one of the slowest annual growth rates in decades and comes of the world �*s second—largest economy faces a number of challenges. with donald trump sets return to the white house next week with a promise to hit china up with even more tariffs. some experts have warned the country faces a tough year ahead. let's turn to our newsroom for more on this. tell us about this 5% number and what it means. tell us about this 596 number and what it means.— and what it means. those numbers _ and what it means. those numbers just _ and what it means. those numbersjust coming - and what it means. those numbersjust coming in i and what it means. those l numbersjust coming in and numbers just coming in and showing as you mentioned that china's economy did

and china -- u.s. and china, or do we focus on u.s.china coordination on challenges and third countries? and i don't think we landed on one. i think we need to continue to probe where there's more opportunity. but it was certainly a theme of our conversations. and i mentioned on that note that -- we did do some conversations and workshop looking at international institutions aside on how track twos can be made more effective in the new environment. and one of the observations we heard on each side is that sometimes these track twos are more productive when focused on multilateral issues opposed to bilateral issues which are simply too contentious and a third party is brought into the conversation so i think triking alating thinking about conversations bilateral relations in a broader context, might be a common, common thread here. i want to open up to our audience i'll call on the men first -- [laughter] >> but i see we have a question back here. >> my name is roger, and i'm an editorial contributor on technology policy for the hill ne

trump: if china did not approve it, we could put tariffs on china. don't forget, we charge them very little -- except for what i did, i put hundreds of billions of dollars until. . i came along, china never paid $.10 to this country. they ripped us off and they never paid anything. if we wanted to make a deal with tiktok and china wouldn't approve it, then i think ultimately they would approve it because we would put tariffs on china. it may be. i am not saying i would, but i certainly could do that. if we said oh, you are not going to approve it, we will put tariffs of 25%, 30%, 40%, 50% even 100%. if we did that, i think they would approve it. reporter: you have seen the other living presidents a couple of times in the last few months, if you had to call on anyone of them for advice, which one would you call? pres. trump: i thought bill clinton was a very good politician. i don't think he was used properly. i think they disrespected him. when hillary was running, he came back and said, you better get up to michigan and wisconsin -- you remember tha

race, us and china. soviet union, this ai race, us and china-— and china. that's right.ght. it is very symbolic. something l and china. that's right. it is i very symbolic. something very symbolic with the inauguration �*s tech ceos were in front of his own cabinet. that was an externally powerful message to send. in these 500 billion, trump has promised 100 billion to oracle, a company that deals with databases. software having to do with predicting how people act, whether we will go for a job or leave a job. larry ellis, the ceo of oracle, has predicted the modern surveillance. we argue citizens will be at their best behaviour. just like energy. they have enough data power. they combine military or political power in other kinds of power. aha, other kinds of power. a statement which everyone is behaving really well seems like a country that already exist on this planet. indeed, several of them. does united states know what it's building edge as the european union agree? wejust had the prime minister announced the uk a! action plan only about ten days ago. what a rebuil

we will look at what's in store for us—china relations.lus, trump wants greenland but does greenland want him? we hearfrom a danish lawmaker and some greenlanders in a special report. welcome to newsday, i'm steve lai. we begin in los angeles, where fires continue to rage with attention turning to forecast warnings of an increase in high winds overnight. authorities say they are prepared for the change in weather, which will put the whole of la county under fire threat. so far, 2a people have been killed and several others are missing. tens of thousands of people have been forced to leave their homes and officials say they will not be able to return for at least four days. these wildfires are on track to be among the costliest in us history. accuweather has increased its preliminary estimate of financial losses from the blazes to between $250—275 billion. reiterating those sentiments, california governor gavin newsom said that 1a,000 people are actively working against the fires in what he says could be the worst natural disaster to hit th

so i think the point here is that there is a realization that today's china is certainly not the china of 8 years ago and must be dealt with accordingly. i think what's highly symbolic is president trump invitation of presidency to the inauguration. he's still threatening paris. what does donald trump wants to get out of china with this threat of terrace? well, he's certainly this would have an important impact on chinese businesses. if tariffs are escalated, but the way what i've heard, according to president trump is that terrorists are seen as a general tool to secure the prosperity of the american people. as he said in several of his speeches of the past couple of days, he wants to create a department of x terminal revenue, not an internal revenue to correct to come to collect money from terrace. but the question remains, what does he want to get out of china if he is threatening china with terrorist it is to get what? well, i see this as actually creating opportunity for china, because at the same time he does want to raise terrace for the benefit of the american people. but he al

these are the china and then how is china going to react? because if you see this, you know, china plus one this, this diversification of supply chain out of china because of the tariffs, the us has been putting out. it's not just the us and the japanese, and the your opinions that are diversifying out of china. it's the chinese who are diversifying out of china and what is that going to do? there is upsides and downsize for countries for where china is diversified. so it really is, is not just that, that what's gonna happen between the us and china. it's all the, the effects from it, in addition to enacting to your point, adrian, the us is also going to put tears on other countries, canada, mexico, the you, we're going to see that as well. and so yeah, we're, we're in for a lot of tension in, in trade going forward throughout the world as a result of donald trump's presidency and his approach to an america 1st agenda. i'm glad you brought up the canada there. what are we to make of, of that nonsense of also his threats to, to take greenland

and china promised a lot. it promised that the existing ways the existing freedoms in hong kong would survive for 50 years own currency tax, administration, government, common common law, freedom of press freedom of assembly, freedom of religion all the freedoms that we in open take for granted. this was further codified the basic law, a sort of mini constitution that china wrote and imposed on hong kong and it did promise as you to move towards full democracy which i mean think about it it's just not a big deal honestly. was electing the city council, electing the mayor, the chief executive of the legislative council, even little things proved to be too much, for china. and as you said in 2014, they, they, they back those promises. and the people of hong kong enough. you know, it's been almost decades and you're moving us. what about all these promises? and that's when the students took to the streets and you know very different dynamic between the students and jimmy and apple daily. but they were all trying

is going to beat china in ai. does this morning's executive order actually move the needle in a meaningful way, and what does that leave out. >> if you think about ai infrastructure, and am always reminded of a book that i may or may not have read in the late 1990's, "guns, germs, and steel." the book made the case that mason succeeded when they were able to marshal their natural resources to get a competitive advantage. if you think about it i like the electricity of our era. if we can prevail on a key for us to continue to lead the world, that will ultimately be an infrastructure exercise. it's good to be chips, data, talent, it's going to be the energy piece. specifically to your question, i think what the biden administration has put out today sends an interesting signal in the following way -- we have identified that there is roughly $175 billion of dry capital out there globally, looking to invest in ai infrastructure. there is an understanding that there's going to be such a need for it, in part, driven by

mil speaking about rachel reeves in china. , speaking about rachel reeves in china. �* , china.ppening in _ china. all sorts of things happening in the - china. all sorts of things i happening in the economy china. all sorts of things - happening in the economy this week, cost of borrowing has gone up. rachel reeves as a trainer to start discussions with the government there about how britain and china are improving their change and have attained about 600 millions, quite amount —— like a small amount of benefits. it should not be there with a cap in hand, as he pleaded. the trouble that government is facing on the economy is partly due to the difficult situation that they took over when they won the election. my chancellor, said that the previous government, liz truss and rishi sunak, what they did to the economy cannot be blamed. to the economy cannot be blamed-— to the economy cannot be blamed. , , blamed. the first thing they did when they _ blamed. the first thing they did when they came - blamed. the first thing they did when they came into - blamed. the first thing they i

that if china and by that i mean he ij china and by that i mean he i guess— china and by that i meany that i mean he i guess he means _ china and by that i mean he i guess he means the - china and by that i mean he i guess he means the chinesel guess he means the chinese government— guess he means the chinese government does— guess he means the chinese government does not - guess he means the chinese government does not acceptj guess he means the chinese i government does not accept a deal— government does not accept a deal on — government does not accept a deal on tiktok— government does not accept a deal on tiktok that _ government does not accept a deal on tiktok that he - government does not accept a deal on tiktok that he could l deal on tiktok that he could wield — deal on tiktok that he could wield tariffs _ deal on tiktok that he could wield tariffs to _ deal on tiktok that he could wield tariffs to try _ deal on tiktok that he could wield tariffs to try and - deal on tiktok that he could wield tariffs to try— wield tariffs to try and force bei'in: wield tariffs to try and fo

could send to china.lightly hopeful that trump will pursue calls in which he tries to coerce putin with more help for ukraine in which he coerces putin for something acceptable for ukraine. >> the other side, if the war is coming to apparent n end, they have to spend as much money on that. i would like to understand what is the influence or lack of it from china in this whole context. what is the role they are likely to play when you think about the arrival of donald trump at the white house and how russia and china have been at least on a trade front working more closely together? >> well, china has been drawing closer to russia or more recisely, china has drawn russia more closely to it. in a way, russia is a satellite to some extent to china. i think with the trump tariffs ideas and unpre-dict ability, they have to not harm trump too much because trump is the one to respond with hefty tariffs on china. in a way, china might now think twice about really helping putin more than it has done so far and tha

. lay at home is an international security and china expert. so what we're seeing now is a china is linking these 2 things to improve their becoming a trend porter through the opening of chunky port. but those living next to chunk kite sate their efforts to make sure the port met environmental standards faced serious opposition. dropping somebody needs to see what that got for the stuff and stuff, but for math and my probation, the need to call me in for a cl, nancy, so me some last is still happening for the new children you'll be feeding. my name's lacey sonata medium lives. next door to chunk chi, literally the walls of her home are adjacent to the chunk chi porch pain meds at old style. know me to know is a center level level that's for next me in this inductive. so i'm assuming that since i made to spring, i may have to use those associates to from one of the neil. so for the in the you have to see on this order, i probably would have done this best estimate and that's the same vs. so this is not, not c, as in e s, as in minus, close up th

so this time china, she didn't think very much wanna focus on portraying china as a strong country, stood the country prepared for whatever trump for his assets. and to that end, we had presented to jim ping today would choose to speak with brussels, lead of his intention saying that the bathing must go upon the ship is very strong . that will not be impacted by whatever happens in the us and the aging. also in the months leading up to trump, d, a local agent has made this message clear that it wants to do with trump thoughts if it needs to. it will retaliate against us and us friends to you in beijing. katrina is thank you very much. indeed. joining us now is political economist of david mon live from beijing, so thank you very much indeed for being with us. what's your assessment of china's position when it comes to a trump administration? and there are some of them, the chinese administration who believes that trump will be transactional. i think the more realistic minds seeing that people call trump transactional as if he was a very successful businessman. when we know that he managed

if there is 60% tariffs on china, yes, china will be affected.ariffs in china is not invested in china, period. that is why the market does not react to the news. secondly, 60% tariffs would destroy the u.s. economy. it is not going to happen. president trump knows. he was elected because people were upset about the inflation. he knows and his advisors know . scott bessent is a global macro guy. when was the last time we had one of her own is a treasury secretary? that's great. they understand there is very little room to maneuver in the u.s. 6% budget deficits. interest rates at 5%. the dollar at an all-time high. our view is u.s. assets have been the only place to be in the last 15 years. all the world's money is here. it is priced for exceptionalism. massively priced relative to the rest of the world. we want to say you can have that and we still have positions in the u.s. our focus for 2025-2026 is the u.s. led the way. now the rest of the world will catch up. the rest liberal trades at 13 times forward earnings. the u.s. trades at 22 times f

in china right now?interesting phase and i say that aware that donald trump is about to come into power but ultimately it feels like there might be an opportunity for the u.k. to chart a slightly different path. it's pretty obvious at the moment that we have not put tariffs on electric vehicles and i know that was discussed between rachel reeves and her counterparts in beijing so there are potentially opportunities to carve out a different way of engaging with china and certainly something we saw in our sentiment survey was increasingly british companies are seeing opportunities to support chinese companies going globally. our financial services and legal services are world class and i think that is something where our members have seen real positivity this year and helping china to navigate the global landscape as it goes global. >> what are the remaining challenges that your members bring up for you when it comes to that market share and opportunity in china at a time of slowing chinese growth? >> it's

it is on the budget. -- rachel reeves back from china.— back from china.t is a question of _ back from china. it is a question of timing. - back from china. it is a l question of timing. right back from china. it is a - question of timing. right now interest rates have gone up and that will have an immediate effect. it is already affecting how the market is expecting rachel reeves to manage the physical conditions. will she have to announce more austerity or tax hikes? these are offsetting factors for growth. because the spelling has gone down, will the bank of england not be able to cut interest rates as much as the market had been anticipated? and that is another factor. been anticipated? and that is anotherfactor. where is the been anticipated? and that is another factor. where is the ai effect is likely to be a more subtle, a more gradual effect so the timing of the two issues are not necessarily a natural offset. yes, ai will hopefully generate productivity and growth over the medium and longer term but unfortunately hit to interest rates will have a