to let it get through to w your shadow, your is always we appreciate your reporting. thank you much and you got the news. i'll be back at the top of the hour with more world news followed by the day i hope to see you there. the name is the calls back, said loud. thank you so much for joining in. welcome to don't hold bad. a lot of people do that. as soon about saying it loud as would have been nosy bay, like good everyone to king, to check out the award winning called called the called back of all the grim economic data are coming out of china these days. this is especially revealing for decades foreign direct investment poured into china steadily rising rates as investors and companies look to ride the wave of its

economic boom. but it's fallen off. it slips last year f d i. and to china 1000. just $33000000000.00 per 2 year low. the confidence is a key ingredient in any economic success story. and right now, it's draining away from china. what they have for the cost to do it seems that the company is so basically how so do not buy into this story. people in china, whether they're in the government or in the private sector. i will tell you privately, they are really worried about the country is direction and it's future in a way that they have not said so for 30 years. china is problems have been planned to many things from the countries property crisis to the struggle to emerge from strict 0 cove and controls. put in this episode, we'll ask if there are more fundamental problems behind it's crisis of confidence. over time, the temptations for us that are terry is to exert their control and pick favorites

and, and demand loyalty. outweighs the market number sure. do you can when they pull the didn't to on your, the take a right to extend out the you handled adult. the chinese government is that a fork does a try to bring those hundreds of millions of people who are still poor into the middle class. welcome to business beyond. one of the most obvious ways to see how the chinese economy has changed and the last 2 years is by looking at its growth rate. near double digit growth has been effective life in china for much of the past 2 decades. but as long as during the code 19 prices and the post pandemic revival, quickly last steam, cdp is projected to forward to 4.6 percent this year. one of the lowest rates in 30 years of one particular story has loomed larger over the chinese economy than any other in recent times. age property. it's all about property,

china grice for you. it's has been driven by real estate multi decade markets. part of it was rational law sort of 56 years is definitely increasingly irrational. and 3 tell you bit to us, a pretty said behind from badging. that property probably has an effect on the property crisis thrust hundreds of massively invested companies such as ever ground into default on towards bankruptcy. as the crisis worse and huge swedes of society have been severely affected, 3 really key parts of the strategies economy getting hits. the household defined and the local governments households, well that wealth is in property, terrible for that fine. assets and liabilities, the real property, it's really bad for them. and at the local governments really important you to make that, that they are with online sales revenues to infrastructure, to pay people salaries,

and of course land sales and crate it as well. and the property sector collapse came as china was dealing with another crisis. the corporate 19 pandemic china 0 cove and policy sol badging exercise extremely strict controls on public and commercial life in an attempt to keep the virus numbers to an absolute minimum. but unlike and most of the rest of the world, restrictions in china were not listed until the end of 2022. and when that finally happened, it didn't turn out as well as many had been hoping for. when everyone else came out a tiny bit could very strong positive welts effects. everyone's house project going up. well the equity markets had gone up. so you have isn't, must have kind of wealth to wind behind reopening. who is it a complete opposite in china? equities down property down, and really there was nothing to fuel, post type, it's spending recovery. china's economic slump is larger and longer than just about any one predicted peoplesoft. china would come out of the

pandemic growing relatively well. and in fact, it has a crisis of confidence as well and truly said in spring consumption and an economy low and confidence is not easy. particularly given. the outsides rolled at the property sector had played in that regard for so long. you made for the show with some john, so you thought that you'd too sure if i need somebody to try and touch it on. what show? vader ginger meeting soon because i don't, you know, i'm a frontier trying to get into i'm. she was a triple tire. dr. barton border, the show a freight and that shit. you've got the, the, the drop off toilet tongues. you drew back towards the time that there's a long established relationship in economics between deflation and reduce consumer spending. consumers maybe discourage to spend if they expect for the price falls and compared with similar sized economies, china has

a worrying dog. it's deflection problem. in 2021, there was a global search of inflation and mit demik supply chain shocks and the effects of government stimulus packages. yet there was barely any inflation in china. and the country quickly entered a period of deflation. while economies like the u. s. and the yours on economy quote there inflation rates to healthy your numbers. ready ready so what's to be done? a major government stimulus package is one option. during a swamp in 2015, china devalued its currency, slashed interest rates and poured money into property and infrastructure. but fishing has been more reluctant this time. ready a decision saying he is willing to take quite a lot of pay with the vision, with the goal in mind of having more sustainable long term corrects. so he wants the property set to, to contract in a controlled manner, and stay ready to set, showing her up on a more finance guys cost going forward. she's planned for a controlled real estate decline, appears to be part of

a general reluctance to pump more money into a struggling economy. if you look at some of the other part of the economy of fiscal or russian news from the line. so, so, so 20 percent an investment, so 10 percent last year. so uh if, if everything has to loading then it will eventually get back to the parking lot. the way that the guy have, the s, the in a has enough resources to stimulate the economy. so, so it seems to me that it's a cycle that tends to be turning to the downside at the same context. seems to be no pre of time being for the economy. it's china has taken measures to stabilize the situation. they've cut interest rates, they've provided liquidity to banks, distributing property farms on to local authorities, but nothing seems to be working. they've done a huge variety of things over the course. they've also tried to reassure for and investors that china is a good place to do business and they can make money and get deals up. nevertheless, that's still not been enough. i think it shows a very uh,

big problem because it shows that, um, how so concrete, the kind of in the sprint do whatever policy is that, um, being rule out. so um, which means that the cognitive will need to basically to fund even cra roadmap, or maybe from the shop for you to, to come genius to market. the policies are changing. so is there something else going on? although she's in pain, hasn't only willing to intervene with a major stimulus package this time around. some experts say that it's his desire for the chinese communist party to have total control over the country. that's doing a lot of the damage. under present a g, the chinese communist party has sort of broken a compact. they have with the drive is people that they have to come back with what i call no politics, no problem. and from 1979 to around 2015. when she consolidated power, the transcodes party basically left average chinese alone to do their business the

safe to invest. the argument goes that under siege and paying the chinese communist party has become so authoritarian that it is compromised economic development. not every problem is resolved by liberalization, and just allowing more market forces to work. you need some discipline, you need some order. you, you need some extent of, of intervention. but she didn't, thing really is gone too far. and i think i made a challenging situation worse and that wasn't meant to be always, it wasn't inevitable long time china watchers scott kennedy, believes the change in things, consolidation of power within the chinese communist party has made and even more controlling as the years have gone on and the more the problems arose, the more he went back to his strategy of control. and

that's just sped up. and the pandemic really pushed those control impulses even further the tensions with the us and the west as well. and so just about every challenge he sees, he responds with the same approach. there are many recent examples to back up the point when billionaire business magnet check my criticize chinese financial regulation in october 2020. it directly led to the suspension of the ip over his company and the group a huge regulatory track down on various tech companies followed. the property crisis was in part prompted by the government restricting have companies could borrow an understandable move to ran in an overheated sector. perhaps hold on data really heavy 101. speaking of heavy 100, there was also 0 coven. and what seems to have changed over the course of coal that

and she is the willingness to change in a positive direction that there's more control being and cause there's some more risk aversion being fell and they've got the party is getting much more directive. and in part because of us and the heck certain behaviors, but mostly domestically, is getting much more about self sufficiency in choosing winners and privileging the state sector over the private sector. such an approach has a clear impact on free enterprise. and when you're young, she can go down to, you know, need to know where to go to go to the dice. you know, that's the, that some pay both. well, you know, how much is a bad spot left? a ball for to them to, to a sender. both box to go and you know, goats or some things with adult teeth. dr. jacob, just, you know, a medium to do the dish or donnelly,

orange alone. many analysts say that both people on businesses have become very careful about how they spend their money in china due to deb, it's over what kind of actions the government may take and the future north, south, east west center, the party controls everything. that's straight out of sheets and things, recent speeches, and that's not how they're going to solve things. i know that makes them feel better, that they have things under control and they can have a superficial level of stability. but the reality is that, that just grinds people down. what happens to china is economy has profound implications, not just for it's 1400000000 people. but for the whole world, it's economic success powered global growth for decades. and it's on rivaling, would be equally consequential as much as china is dependent on the rest of the world. we are connected to china is as well. and certainly if, if china suffers a significant economic crisis,

they'll bear the biggest front of those challenges. but the rest of the world will, will feel it in a variety of, of ways. economically. she's in pain, has spoken of the economic recovery being at a critical point. and there is still time for the countries leadership to rebuild the trust and crucially confidence or the ability of trying to get back on to a higher barrels pass, though not as high as it once was, is still there. and maybe it is a matter of time that is the government, the party says some form of why we do these things specifically under the emergency of cold bed. and we're not going to do it again. and people initially are doubtful . but over a few years, they stop being quite so arbitrary intervention is baby tries to be re bored to some degree and their growth rate will go up. but such a scenario may require an ideological shift that seems ever more on likely. china

today looks richer, stronger, healthier, and safer than ever before they ought to be celebrating the successful rejuvenation of the chinese nation. instead, they're looking for conspiracies internally, externally. up everything to the leadership is glass 3 quarters, empty boots of july 7th, which i'm not sure of the session doctors, you know, module with a shelf it becomes possible to do something to bring you down to address in about 5 to 20. $24.00 is the year of the dragon and china. symbolism will not be lost on a liter. desperately needs to fire up one of the world's most important economic engines, and extinguish doubts about the part he has played in its struggles. thanks

a lot for watching until the next time. take care the the clean energy and cutting with 2 big challenges facing us today. luckily, we don't need to look far to find some pretty smart solutions. so welcome to equal africa. i and sandra the homes that we know of you joining do from complex right here in uganda. thank to sandra. yes. sometimes it seems so difficult to fix all the problems facing i environments what.