the next thing that's about what is the return of the lord jesus christ, the apocalypse companies. witness those into the us as event jellicoe, christine, exploring its influence of democracy and foreign policy on this and try that to you of israel. it's the bulk of the process praying for i'm a good episode, $11.00 that just china is plans for the coming year have been sent out to the national people's congress. the full terms of defining the 2nd largest economy in our global interest as all its political retentions. so what's in store for china and for the rest of the world? this is inside story, the color of the and welcome to the program on jo. now, there was

a time when the world sold the business of the chinese communist party, those launch a domestic matter online and apparently secretive politics in a country essentially closed off to the rest of the world. but not anymore, china's transformation into an economic and technological powerhouse is in a globalized world, means that what goes on there is keenly watched by political leaders and businesses everywhere, both east and west need each other economically. the trade between the 2 now takes place in a much more volatile g, a political climate. some of that's due to more confrontational relations between china and the us. and a few upsets in the countries economy, notably in real estate, have worried some investors who was on the agenda at the national people's congress annual gathering, with 3000 delicates meeting over a week to set out china as priorities for the coming year. so what all day, and what do they mean for china and for the rest of the world will be asking, i guess those questions, and more in just a few moments,

but 1st image and kimber reports on what was discussed at the congress to join his economies. slowing, but the government is aiming to 5 percent growth in 2024. that's the focus of this annual meeting of the national people's congress. under discussion, developing new technologies from electric vehicles to i like the facial recognition scanners knowing in the entrance to the conference. another front which showing a 6 to catch up with the us attracting for an investment and business is a key thing. but some international companies fund china is regulations unappealing duty and they will, i know it's necessary to introduce some more targeted measures to facilitate the trade. the general administration of customs will take the lead in organizing special campaigns to facilitate across the board of trade offering. what convenience to authorized economic operate to enterprises and to continue to expand

the pilot programs across both the e commerce, the domestic housing market is among the challenges. joining faces to achieving more economic growth. in 2021, the market bust is construction joint. advert grand run out of money leaving an estimated millions of people without homes they'd already paid for. the government says auction is being taken. please hold on one of the real estate enterprises that are severely insolvent and have lost their ability to operate should follow the principles of the rule of law and market ties ation and undergo bankruptcy and restructuring behavior. that harms the interest of the masses will be investigated and punished. use unemployment, is it a record high of nearly 15 percent intentions are rising in the south china sea. for the countries worried about an increase in minute troy activity in the pacific and increased hostilities between the us and china. the 7.2 percent roy's in defense spending will be a concern to join to spends nearly $300000000.00

a year on defense foot and $900000000000.00 spent by the united states. a fact that worries beijing composite, we urge the united states britain and australia to abandon the cold war mentality and to faithfully fulfill international obligations to stop creating greater trouble for regional peace and stability. joiner is the world's 2nd largest economy and emerging superpower. and it's joyful great of growth is being closely watched like label, competitors, imaging, kimber, audra 0, the inside story. the let's bring it now, i guess now in beijing, the time it is a senior fellow at the time he institute in jakarta, but hoffman is a professor at the station institute to national university of single pool. he was

also with the will bank in china for 12 years, 6 of them as country director. and in london, vicky price is chief economic adviser at the center for economics and business research and a full u. k. government economic advisor. welcome to you all. so there was no customer a press conference following this is congress by premiere the kick yang that would have helped us read the runes and try to understand china's challenges in china's future direction. so i know, let me come 1st of all to you and i want to 1st of all, whether the absence of a press conference was in fact, a way of avoiding scrutiny over the collapse of the massive housing market. and also talk around the 5 percent growth figure posted which some people for this year, which some people find them vicious. so do you think that the government will draw the not be talking about real estate and do you think that 5 percent g d p growth is realistic? well, let me answer those in reverse order. i do think if they say 5 percent,

uh they've been pretty good about hitting their targets in terms of discussing real estate. they discuss it a great line. cuz as in our discussion, hopefully we'll show in terms of why he didn't to do the press conference. so i'm going assume that it was a personal that you had other people talking. i think from his perspective he's, if you look at his track record, he's more interested in results. he does a tremendous number of inspections, work meetings, very, very practical and very, very much ventured on the domestic economy. right. his predecessor used to dabble in uh, in the international side a lot more. but you know, i think people are trying to read a little bit too much into this, that somehow he is afraid of the price or something. remember that these are not politicians in the way that the us or europe or great britain has a they simply are people who are professionals are responsible for getting it done . his real judgment will come up next year when there is another work report and

he's either accomplished what he's said he was going to do or hasn't. okay, so nothing to hide there. other people have done the talking to the numbers. do the talking or at least some of them as well. but huffman i want to, i want to read it around. other interesting, fascinating, really statistics. i think the new york times for this one ton of central bank lending to real estate was $800000000000.00. in 2019 full years like to edit forwarding to just $75000000000.20. lending to industry. meanwhile, that was $83000000000.00 in 2019 has sort to $670000000000.00 in 2023. a remarkable change of direction for an economy and just for years including the pen demik is an illustration really of the ability of the chinese economic system to change. well clearly uh, this is a major reallocation of resources of banking resource is not the central bank for

the banking system. and it started with a correction under real estate development in 2020 the end of 2021 or the 3 red line policy command, which basically discouraged lending to real estate, which the leadership felt was starting to become too risky, too much of a bible. and so now there is a reallocation to the new, the future direction of us does not depend on that as a manufacturing according to the leadership. so you have the banking system that pretty much follows that it has issues with it. that's great. that does not present, there's less real estate as being constructed, but of course, we've already seen a lot of the the, the fallout from that to include a in the buildings not finished and people waiting for an a housing. lots of bankruptcies are probably going to follow, but at the same time, the manufacturing sector is doing quite well. the one thing that they don't do is

absorb a lot of jobs and i think that's going to be one of the key constraints for the leadership going for the ticket price perhaps consequent to this rise in manufacturing, chinese officials at the end p. c, complaining about a perceived wave of unfair protectionism being level to china from around the world . citing an i m f report that said that the trade restrictions around the world have tripled in the past 4 years. much of it aimed at china. so is the world ganging up on china? it's true that the trade environment has become more difficult, in fact has become more difficult the lives of countries. and we are perhaps moving into a sort of d u. but as ation phase, it also explains why china is now looking to fix much more in developments, domestic economy and, and perhaps we longer the less on exports. and if you look at what has been going on in the last year, the value of expos of goods from china went down. and that includes is quite

important for a country that has traditionally relied on exporting to the rest of the world. and also, the destination of these exports has changed quite significantly. so it was too much of the us because it posted all the sections that won't restrictions, that as well, but also redirecting exports to other parts of the world. so that has been a switch. there is no doubt about it and i think the plans we're hearing about this year and also for later for china do suggest that this re orientation is what they're going to be focusing on. but the experts have been very significant. so gross, if you look at what's been going on and the fact that some graphs that we may get this year is a lot less than what used to be the case in the past. and of that is really because of the fact a, the china is becoming much your economy on his contract price, so fast as it did before. and then also because on the export side and that for manufacturing particular it's needs to rethink what it does. but also actually in

terms of the letters to businesses that you referred to earlier, there's been a big drive to improve the technology innovation and competes a lot more with the us than others. but without giving the fact is out there that are export is there, or other input restrictions with china coming from of goods from the us. right. what i mean that you alluded that to, to changing the political alliances and shifting sands. we will talk about those in a minute, but perhaps, as you've mentioned, one way of addressing this issue of domestic, the domestic economy, jobs and so on is a, but this is to you, a drive towards and it was talked about at the congress, so called future industries, we talk about everything from electric cars to surveillance technology, facial recognition, artificial intelligence, even commercial space flight. how big a transition is this for the chinese economy? how effective is it likely to be and how big a risk does it pose to the likes of silicon valley and the think electric comic

because of japan and south korea and others? so for it, i mean it is a very serious switch and, and clearly the new drive is across or to the future. industries are, are being built as we, as we speak, and as a lot of resources from the banking system, from the government and from visit businesses themselves being allocated to new technologies, spending our research and development not in china is higher done in the us. 2.6 percent of total ttp. and that, of course already results into a competitive industries and, and the electric field cost solar, the new energy that the china is already very competitive and it starts show up in it domestically, but also internationally. that is a 2nd category, which is the, the future industries, and that is more sort of the, the cutting edge or so it's, it's not just right for, for production. but china is investing in it's,

it's bringing in the science is to bring in the technology. so that in future day would actually dominate, so they're moving from a absorbing technology set already dinner from abroad to trying to create the new technology starting to determine in 5 or 10 years. the future. not sure landscape, that's a big move. and vicky i so you, you know, think of them there. i mean, western markets see this coming done today, particularly in, in the sphere to say electric vehicles where the e u. a is looking at putting tasks on to chinese inputs. and the yes, there is a bit of a concert and of course that, and of course, a lot of the support that has been given to industry in china, really beings subsidies and about goods are being exposed to particularly electric vehicles as prices which of the countries cannot compete to getting on the set of closer reviews from china has increased versus substantially in the world market

some. and i think there's those of issues that everyone has to best always done. and we've seen right now. what's going on in the you are there is a loss of re emphasizing the growth in the brain industries. and also, of course, what happens in the us with a installation reduction ox, where there are subsidizing a lot of the green production. we'll call it that of for a reason. other manufacturing areas in if you're building them in the us. but actually we have seen china also investing international, more chinese companies getting into the market. and also up to a point getting run some of those rules and, and i think that's an interesting part of what's been going on. okay, i, i know it says no, i know what do you think of that as well as a big area for, for many people it seems that hypocritical, i mean, uh, europe in america have been preaching. uh, you know, the, the importance of the market. how you have to trust in it, and as soon as i try to actually does something, it all of a sudden it's uh,

you know, we're getting too far ahead. it's now time to put up the walls. and the fact is, 12 years ago, everyone was laughing at china because they said they're going to put a series of, you know, pitch in for e b is why? because they have real problems in the cities with the exhaust gases. people were complaining about the quality of their things like that. now beijing, us is probably nice. so i live here. so i know i noticed the difference. so china has been initially they tried to bring this industry along, but right now it's the subject of extremely blue competition. a lot of these companies are losing money. they are not being subsidized by the government, quite the country. it's us, europe that are looking to subsidize their industries simply because they did not keep up. so this, this idea that somehow it so it's ok when we, when, but not okay when anyone else wins. and you know, for not only for china, but for

a lot of the global south, we see this is the kind of same kind of hit, hypocritical thing thinking that's been going on for way too long. i know i just want to touch on another aspect to these. so the future industries at artificial intelligence, a huge future global market. of course, china, what we're looking to make it head to head roads there and gain a competitive edge. it is suggested by treating a development with a sort of light touch regulation. now, lots of people are already very nervous about the potential effects and consequences of a i should we be worried about the sort of a i that comes out of china? well, we should be worried about any kind of a i, if you read this, no, not does. yeah. and what he's spelled, i mean a high is obviously going to be used by governments all around the world in order to do whatever is they think they need to do. quote, protect themselves for security reasons, regardless of the implications for privacy. it, china is not alone, but they have

a sense that a, i does have dangers, do it back in 2013 the they started this idea of a sovereign inter, not the idea that countries are responsible for what is generated in their country in terms of information and also what is coming in, they need to protect their people from a line of appliances. so china is pursuing that. we'll see what happens. china has a big advantage is data. i is not at the forefront of a guy at this juncture. but as we've seen in the past, under estimating what the chinese can do, you do at your own peril. okay, i know i'm going to stay with you. stay with us, but it's in vicky, but i wanna move on to defense. now. defense spending set at 7.2 percent for 2024. that's a repeat of 2023. kind of putting a lot of money into defense. clearly, at the same time, something interesting that came out of the congress, which was

a very subtle changing language. and the problem is, work report. last year it referred to a peaceful move towards chinese reunification. i'm talking about i want to close this, it would peaceful doesn't feature we're talking about a firm advance towards reunification should be in conjunction with defense spending hikes, a see a shift in tone as a shifting strategy towards taiwan to no, i don't think so. i mean, if you look at the last 6 years, i mean there were years when it was as high as a point 6. the $7.00, as you pointed out, is the same as last year. and it's at the median level in terms of taiwan. and as you know, there was a report today that came out that said that us special forces are now permanently of going to be in taiwan training. the tie, one east to resist the u. s. is providing a higher, very, very high grade. uh, not only defense, but also weapons that we can use on the off ends. us as sailing ships up and down

the taiwan straits. china is trying to draw this red line. they've done it consistently do not interfere with the one china policy. so from beijing's point of view, there keeps trying to send the message. unfortunately, washington isn't receiving it apparently. well, what washington is doing along with the likes of japan, australia, and south korea, but let me put this to you is also hiking the defense spending not exclusively, but partly because of a perceived threat from china was trying to move closer towards the likes of rush or ron north korea, those 3 countries will getting warm woods at the congress is china effectively now, do you think that the center of the new arms, rice but or well, the clearly china as might because of this economic might, is growing in the region and that makes that make some countries novice. john has also been more active in the region, including the south china sea,

which they say is that solvent territory and many would dispute it because they think it is there somewhere in the territory. and there are exclusive economic jones. so does this do up something just on the defense spending? the 7.2 percent would be exactly in line with nominal g d p. so as a share of g d p. if the targets come out, china as defense spending would not increase on that. so i think that this is a very big increase. no, it's not. it's 5 percent gdc grove plus 3 percent for the chinese thing. 3 percent inflation, so it's not growing in sheriff gdp moving swiftly along. foreign policy now also discussed fairly significant the at the congress. we did get a press conference with foreign minister when he giving us some idea of how trying to seize its place in the world, improve relations with the united states. following that meeting between the seating thing and drug by them in san francisco last year,

but also markedly improve relations, as i said, with the likes of russia, iran and north korea. i know, does china think that it can or should it be able to expect that it can have it both ways good relations with the united states in the west and also good relations with countries that the west many countries in the west view is enemies. as well, it's honestly if you take china in the us, china is the only one who's saying that they want to improve relations, but a long e in the 2nd part of a speech, a 0 call that said look, the us talks one thing and does another that kind of inconsistency makes it very difficult to pursue a relationship. a china is basically the position of the prisoner's dilemma. it's uh, the u. s. is far more powerful, economically, politically and militarily, and is intense on keeping china down. that's beijing's vehicle. and if you look at the evidence, you know, everything that the us is doing from keeping ships going,

it seems that that would be, in fact, the impression anyone would get and a reasonable thing. so in terms of, you know, you're wrong and also russia. i don't know that having friend relations is all it's, they're not only having good relations with those countries, but as was tested, testified by the 152 countries that showed up for the belt road initiative, 10 year anniversary. china has good relations with practically everybody. so i, you know, single, single thing these out and saying, well they have good relations to people. we don't like. i don't think that is very fair. but one thing, as you know, people keep talking about this peek china. i would ask people to consider something us went to great lengths to keep russia and europe a part. the combination would have been very, very, you know, as a real threat to us dominance. and as we know of the way that the japan was treated

in the seventy's, the u. s. does not play well with this idea of other dominic countries. so, but unfortunately they created even more stronger no competitor in terms of the russian resources. chinese manufacturing. china is manufacturing right now, signs stands at an equal up to the next 9 countries in terms of their manufacturing rusher spans 13 time zones. they have untold resources available. so the combination is something that should be wearing washington, not this idea that china is being friendly, but looking quickly, it means do you want to come in on that but well, look for you or of course, the close relationship of china. russia is a bit concerned because for russia hasn't faded into the country, it tests rather than all of the principals that europe stands for d o s c stands for, and the u. n. stands for. and that's, of course,

where china is quite uncomfortable because that happens very much emphasizing the day that the prime position of sovereignty. and this is here, here is one of the strategic barcas that is inviting another country. so that is, that is really very difficult for china to handle. frankly, what it has done in europe is to strengthen native is to expand dog within london, sweden, and maybe, and treat you out of the country. so it's, it's, it's very, it's, it's, it's, you know, it's a hurry, my situation is not good for, for the world economy is not good for the world. and, but the prime reason was a russian invasion of your credit. vicki help us through the conversation to a close china inbox on a so their sense of economic and strategic realignment there of this divides, differences in areas of mistrust. but you know, this is the world's 2nd largest economy, the economy is of the west. conte avoid doing business with china. they called

a 4 to it is true. but as close as going on between china and russia has, has meant that it has allowed russia to so collect enough revenues to continue spending on munitions and descending defense spending. so, so that's always a worry, obviously for the, for the west a, but it's absolutely true that china is still very, very important trading partner for loads and loads of countries. and that sort of dramatic connections are very important. phone relations are important. but the interesting thing also is that china has been quite important if you like in the, in setting the, the, uh, the pricing of goods internationally. so for the last few months over the last year, really well the last 6 months ever since the middle of the summer and china has been exporting deflation to the rest of the world. and if you look at this inflation profile, yes, it was a little bit of an uptick in february,

but until then we were seeing other no changing section or negative inflation. so deflation, within the country produce the price is going down. that has been reflected quite know what's going on internationally as well. and i think, i think it just a see quite a lot of the reduction that we've seen in goods of prices across inflation across the, the wealth, a standing from what's going on in china. i'm mentioning that just as an example was inc told to them still of china as a huge trading bottom. now, what time is that really impatient, if you like, of all the can only do it. these may have been in the last few months. i know last what you do accept the china is exporting deflation to the world as well. i think the, the world is, wants to play should i think that was my colleagues point, but i want to get back to some of the birds that, i mean, let's see what happens if donald trump is as president, whether or not that affects nato. since it seems like he's intense on uh,

getting out of it. so i don't know that nato has become stronger because it's, and all the wars, especially in russia and what preceded the, the conflict and not in ukraine. okay. well, i think we're going to leave our discussion there. my thanks to all of my guests on a time going to but hoffman and the coast vicky price. and thanks to you for watching, you can see the program any time. again, by visiting our website, elder 0 dot com and for further discussion, go to our facebook page. that's facebook dot com, forward slash a inside story. and even also during the conversation on x out handle, is that a inside story for me during the whole of the whole team here? good bye. for now, the stuff ation is being used as

a what the only way to stop cutting causation is to allow you then people are surrounding it. sparks goes with the flower, gets hard to break it and shows the level of difficulty because of the shortage of human experience. aids we have no blanket, no food, and no room to. i prefer the desk to this humiliation. moore is not killed us yet. it seems that we will die of hunger and can't find food. people say that they're stuck between death, star bases and displacement the in an increasingly complex world, it's paramount to be direct. water sheds, moments international law is vehicle be this model on. so to discussions the cut through the noise is real, operates under climate of absolute infinity. we challenge conventional wisdom. how does it affect you? how does it affect the community? a sense that message that antibiotic bigotry, that a sama fob. yeah. but these are acceptable forms of,

of hates upfront one out to 0. this chip is home to survivors of losses, earthquakes and took care of floating hotel, its features, rooms, a dining hall and entertainment facilities. social workers over lessons to president, still recovering from there or to 4 to 5 year olds. good note is scared of entering your building after the earthquake destroyed her home. luckily we have the c a, we are leaving on a ship bill, a small well hey, we our family and eventually they have something to look for for it to the nearest part reopened. during many here for the life is a loss returning to normal, their playing nothing, but the trauma is never far away. or here's from, i'll just say around on the go and meet tonight. out is there is only mobile app. is that the, this is where we, the effect from out is there is

a mobile app available in your favorites apps to just set for it and typed on a new app from out to 0 new at you think is it the on top of the crate these are the top stories on elgin's here, and there's been another not have as ready rides in the occupied westbank. military operations have increased in frequency and intensity since as well began. it's for on cancer. and october is rarely pulled as of now withdrawn from jeanine up to destroying buildings and infrastructure. at least 2 palestinians were killed during the incursion on side, ramallah is ready for his shot date, at least 2 palestinians during a ride near a military check point in l. g and now the 3 was injured.