Round-Up of China's Economic Problems as 2024 Begins 2024-01-03 03:42

welcome to China in Focus I'm Tiffany Meyer our top story a Roundup of some of China's biggest economic problems and how they could affect the US you know the situation is quite bad in China Iran and Argentina giving different answers to an invitation looking to counter the West what their decisions could mean for their economies no more high-tech chipm machines for China the Netherlands just blocked the world's only supply of the technology from being sold to the comp communist country spurred by Washington and a surprise for the oil industry Beijing is now pumping up distribution of crude oil imports to private refineries what's behind the new [Music] strategy two days into 2024 the world's second largest economy is off to a rocky start and even Chinese leader Xi Jinping is acknowledging it in a rare admission Sunday she said Chinese businesses are struggling and job Seekers are having trouble finding work it's the first time she has made such a remark during his new year address in over a decade China economic analyst Antonio grao weighs in you know the situation is quite bad in China and I believe that if he admits anything it means the situation is 100 times worse than that and that he's finally recognizing that I think it also means that he doesn't think he can fix it quickly so what are some of the biggest problems facing China's economy first up real estate the sector amounts for around a quarter of China's GDP but its strength has been weakened by plunging home sales and defaulting Chinese developers including the country's largest property developer Country Garden The Crisis has spilled over into the massive Shadow banking sector causing in defaults and sparking protests across the country local governments are in trouble too many of them are loaded up with debt and have been cutting medical benefits for citizens to cope youth employment has also become so bad that authorities haven't published data on it since last June in addition China's Factory activity hit a sixth month low in December what's more almost 90% of the foreign money that went into China in 2023 has already left that's according to calculations by the financial times China's biggest banks cut deposit rates in a bid to boost the economy but officials have signaled the stimulus would be limited zooming out how could China's economic problems affect the US grfo said more companies are shifting their manufacturing from China to countries like India things are getting much better between the United States in India and these economic ties will help to improve that as well so I think the way it's going to affect the United States is that we will start uh importing and Manufacturing from India from Vietnam from Indonesia I think that's good it's going to help our allies it's going to build our diplomatic power it's going to reduce our dependence on China the international monetary fund said China is now a drag on world output a big drop in China's new year home sales the country's average daily home sales fell by more than a quarter during the 3-day New Year celebrations compared to the same period last year that's according to a survey conducted by one of China's largest independent real estate researchers data shows sales fell the most in smaller cities dropping as much as 50% authorities have been rolling out measures to support China's property Market top officials wrapped up in an important meeting last December one that sets the tone for economic policy for the coming year officials have pledged to put greater FOC focus on economic growth but they didn't lay out any concrete plans to boost consumer demand Argentina has refused to join a trade alliance with China Russia and other Allied countries this according to a letter Argentina's new president sent a leaders of the bricks Alliance China extended an invite to Argentina and other countries on January 1st asking them to join the alliance the decision comes as Argentina's economic crisis wors with more than 160% inflation Argentina's president javir M condemned communist countries while campaigning for president noting it was not an opportune time for his country to join bricks despite declining the offer M says he is open to increasing trade and investment with members of the organization Chinese State media is accusing the US of somehow incentivizing Argentina to reject the bricks Alliance it also states that Argentina is welcome to join bricks when it chooses to Meanwhile Iran has accepted its invitation to join the organization it became an official member on January 1st officials hope the move will help the country's economic crisis they see it as an opportunity to challenge us imposed sanctions the bricks Alliance was originally made up of Brazil Russia India and China with South Africa joining later it sees it self as a counter to Western influence Beijing kicking off 2024 with a bold vow to reunify Taiwan raising fears of an invasion still further what's the endgame in China's Ambitions for the island and how will President Biden's promise to defend it play out we sat down with retired Brigadier General Robert Spalding for his take on that and more General Spalding thank you so much for joining us great to have you back on the show thanks great to be back to begin taiwan's presidential election is less than two weeks away now Chinese regime leader Shin ping said in a speech on Sunday that the reunification is quote inevitable how do you read his comments is this the same old or is it a stronger roric no it's pretty much the same old I mean this has been their plan from the very beginning and I think it's really for them it's about timing what what makes sense I think you know their um their economy being so tightly tied to the rest of the world has been the the one thing that's been dissuading them or deterring them from doing anything I think what's happening now you're seeing as their economy slows down maybe they might have more of a motivation to actually act on you know what xiin Ping has already promised now the US is still sticking by its strategic ambiguity now you and I have spoken in the past about strategic Clarity when it comes to Taiwan how would that help deter a potential Invasion well help strategic Clarity would help in the same way that help deter a Soviet invasion of Western Europe basically um you know John Foster doas said at the Council on Foreign Relations in a very famous speech that you know we would use all means necessary if they were to come across you know through the fold of Gap and attack Western Europe and I think something very similar needs to be done about to Taiwan United States needs to say you know basically bring in the retaliatory capability of nuclear Arsenal and say we would respond if China was to invade T Taiwan if we want to actually deter an attack otherwise I think they're going to be motivated and they believe that they're capable enough to to carry it out everybody says they're not capable enough yet I think when you look at the array of Weaponry that they've developed over the SE last several decades it's clear that they have enough Force to do it it is what is the timing uh and when is that timing right according to xiin Ping now sticking with deterrence reports are noting that Taiwan is considering joining the international criminal court that's to deter a potential Chinese Invasion how would that work well you know the Chinese Communist party doesn't um abide by any International agreement or institution it disagrees with that uh frequently breaks you know trade regulations you know from or proxim you know proclamations from the World Trade Organization and you know it's it's same thing with the international court at the he you know when the Philippines basically won their court case the Chinese just disregarded it so I don't think it makes any difference whatsoever to the Chinese Communist party now zooming out in terms of geopolitics Argentina under its new president Javier Mele just shot down China's invitation to join the bricks Coalition this is a group of Emerging Markets how big of a deal is this well you know I think um one of the things that the bricks could hang its head on for quite a while was the booming economy of China you know this idea that China was a part of the bricks that China had you know fashioned on to a new way to run your economy so that you don't have to have the free market or even a free population yet you could do quite well as that economy starts to slow down I think it's beginning to lose luster in other words China's model to these other bricks Nations so I wouldn't be surprised if you see others you start to step away from bricks at least in the in the way it was fashioned you know when China was really doing well as an economy General Spalding thank you so much for your time thank you the Netherlands is taking a new step toward an international goal cutting off China's access to high-tech chips the country is home to asml the world's only supplier of ultraviolet lithography machines the technology is essential to making the most advanced chips the Dutch government just revoked the company's export license meaning it can't send the machines to China the decision comes as the US urges countries like the Netherlands and Japan to help block Beijing from high-end chips that's over fears the tech would Aid the Chinese regime's aggressive military development or be used for human rights abuses China on Tuesday urged the Netherlands to continue exporting chipm tools to the country and Iz the US for pressuring other nations to restrict China's access to Advanced Technology at least two Financial Executives in China have committed suicide this month that's Su sping is conducting investigations into Banks across the country this year at least 96 Chinese Financial Executives have been removed from their positions while 38 others who work for major state-owned banks have been investigated they're being blamed for the bank's Corrupt Practices leading some to choose suicide in order to protect family or assets according to authorities the president of an interprovincial Bank died of carbon monoxide poisoning earlier last month days later the president of a local branch of a major Chinese Bank died after he fell from a building as pressure mounts other mid-level and Senior executives are also being hit hard Chinese media report that bank Deputy general manager du High died of a heart attack 2 weeks ago he was 49 years old Beijing continues to purge its Financial system amid the ongoing Market crisis largely a result of the covid-19 lockdowns a surprise for the petroleum industry to jump start a new year Beijing has ramed up distributions of imported crude oil to private refiners across the country nd's Sam Wong has more nearly 180 million tons of raw materials is getting pumped into dozens of companies marking a 60% jump from 2023 to put that number in perspective is nearly a whole Year's quota granted in one shot according to Chinese consultancy jlc the purpose of the large distribution is to make it easier for firms to plan ahead for the year worth noting the Chinese regime state-own refiners don't face restrictions on oil imports while private processing plant only begin seeing quota restrictions on crude imports in 2015 those distributions came in bashes every few months prompting uncertainties for those seeking to buy more oil based on their needs crude oil is a key strategic resource its applications range from manufacturing to powering military vehicles such as tanks and fighter jets China is currently the world's largest consumer of the material with Russia being its number one supplier in recent years the regime has boosted military activities in the Pacific as the majority of his imported crude oil passes through shipping lanes there Sam Wong ND news what are some Chinese Americans wishing for this new year we went down to Flushing home to the largest Chinatown in New York City to find out one resident told us her children only received an education after coming to the US the Chinese Communist Party didn't allow my children to go to school where we lived because we weren't originally from that area but here we have respect and human rights I'm very grateful for that we will become taxpayers and file our taxes according to the law I'd like to make contributions to the US turning our attention now to Hong Kong pro-democracy activist and media Tycoon Jimmy Li is pleading not guilty his Landmark National Security trial resumed on Tuesday let's take a look Hong Kong ton Jimmy Li pleaded not guilty on Tuesday in his Landmark National Security trial the 76-year-old is charged with two accounts of conspiracy to collude with foreign forces under a sweeping national security law that Beijing imposed on Hong Kong in 2020 the prosecution alleged that Li called for foreign sanctions against Hong Kong and Chinese officials li who is the founder of now shuttered pro-democracy newspaper Apple Daily is also charged with conspiracy to publish seditious Publications the pr democracy Advocate denies all three charges Marathon legal proceedings had stretched over 3 years since Li was arrested on Tuesday the prosecution outlined key details of their case for the first time including meetings with senior figures in the former administration of US president Donald Trump evidence they said said that he colluded with foreign forces they displayed a chart showing a picture of lie alongside images of then vice president Mike Pence former Secretary of State Mike Pompeo and Trump prosecutor Anthony Charles said Li had been calling for sanctions against Chinese and Hong Kong officials since 2019 Washington's lapped several rounds of sanctions on political figures including Hong Kong chief executive John Lee after the China imposed National Security Law was enacted both the US and Britain have called for Li's immediate release saying his trial is politically motivated over 280 pro-democracy activists and politicians in Hong Kong have been arrested since the national security law was imposed that's all for today's China InFocus on on YouTube we're now sharing a shorten version of our program here after being demonetized for more than 2 years if you'd like to support us consider donating find us at donorbox.org ch- in-focus or subscribe to our partner platform epic TV where you can watch our full episodes here's what we look out for in our second half a mass protest in China hence the holidays are over they're demonstrating over a teenager's mysterious death saying authorities want to cover up what happened to him political violence in South Korea a knife attack on the country's opposition leader caught live on camera what we know about it so far and a Chinese student in a Utah Foreign Exchange program Falls victim to a cyber kidnapping scam he's reported safe but what length were he and his family forced to go to more on that after the break here on China in focus [Music] thanks for watching China and focus I'm Tiffany Meyer see you [Music] tomorrow [Music]