Died in the Attack And Cobble told us commander has apologized for what he called a tragic mistake. Frances, recall and get sam baset us from the u. S. And a straight after what it called a stab in the back. Frances angry, im frustrated. I cancelled a multi 1000000000 Dollar Submarine Contract to enter a military alliance with the u. S. U. K. Its record on bassett up says that his country has been duped and betrayed by allies. We wed deliberately kept in the black. We where better woodley you can north, and you can realize our deep, we feel about such a thing. Is it possible that you ignore . You dont even mention you dont read. You even refuse to discuss with a trusted partner like france and for you know about such an issue. Oh, could it be possible . China has flown. Its been a free chance across taiwanda asked based on the same day for the u. S. Battleship sailed through the taiwan strait for the 9th time this year. China called the move provocative. It comes as taiwan announced plans to boost its Defense Spending by 9000000000. 00. U. S. Media report say the by the ministration is planning the Mass Deportation of thousands of haitian migrants from a Border Town in texas. Most of the migrant sustained a makeshift camp under a bridge in del rio. An Expert Panel in the u. S. Has rejected government plans to roll out cobit 19 booster shots. Tall americans age 16 and older. But it endorsed extra 5 Bio Intake shots for people above the age of 65. 00. Of those at high risk of severe disease. Those Headlines Monia for Houses Era after counting the cost coming up next. Government supposed swindling russia parliamentary elections take place in september. But as Opposition Leader electing the valley remains in prison and to finalize the band from taking part could do to the kremlin be wide open for another clean sweet fruit in supporting the personal coverage on Al Jazeera. Ah, ah, hI There, im getting vanelle. This is counting the cost on algebra. Youll look at the world of business and economics this week. Is it, the end of china is experiment with capitalism. President s using ping launches, sweeping socialist reforms to address and the quantity in the worlds 2nd biggest economy. And the party is over for the chinese conglomerate that robes the property through hundreds of millions of dollars in debt, implosion of ever grand could take down the banking sector. As traditional analog watchmakers fanned off the Fashion Industry and pick giants that it eating into their business, we find out why sales of their content watches are taking off the president , changing, paying isnt afraid of letting everyone know who is the ultimate power in china. Since his elevation 2012, he launched an anti Corruption Purge of what he called tigers and flies or high ranking national and local officials. Then came the internment of millions of weak is and so called reeducation camps and Gene Gen. He followed that out by crushing the hopes of Democracy Protest as in Hong Kong. G s latest target is a huge segment of the economy that has powered growth in recent years. Billionaires celebrities, Property Gaming and tech companies. Shes reasoning the Side Effect of growth has been ever increasing inequality. Its time he says, for common prosperity. Take a look at this chart. This is chinas janai coefficient. Basically, its a measure of inequality. The closer you are to one, the more unequal society is in 2019, it stood at around 0. 47. Remember, anything about 0. 4 was 0, is considered d, stabilizing. And that is the one thing that the communist party fears, the most social unrest. She is concerned that the young and rule migrants to cities are being priced out of the Property Market. And Education Isnt enough to improve the loss of the poorest. Take a look now at this from the world economic forum, this is their social mobility tracker. Weve to make to the handle of countries out of 82. 00. You can see china lags behind russia, the united states, and most of europe. And heres another play on the same thing. This study by the o, e c, d shows how many generations it would take to climb out of the bottom. 10 percent in to mean income stages. For china. You can see its 7 generations compared to 5 for the united states. And just to at the top here, the denmark and were trying to creating to new 1000000000 is every week. The top one percent are increasing their share of the nations wealth. As you can see from this graph compiled by bloomberg in 989 the top one percent and bought and 50 percent owned roughly, you can see there an equal share of the wealth, but move along here by 2015. The share held by the bottom, 50 percent shrunk, and the top one percent increase their share to a 3rd. And theres so much more to talk about. But lets start with shes crack down. I told bow corresponded to katrina you. She begins this report with aging ban on tutoring, which is hopes to ease the financial burden on parents. Wall Street English once old, private tutoring sessions to chinese students, keen to improve through extra steady. Ah, now its one of more than 1000. 00 companies, forced to close their doors. Following sweeping Education Regulation Tutoring companies can no longer teach compulsory school subjects teach during school hours. Not earn a profit. Thousands of foreign juices like catherine peterson, have suddenly found themselves redundant. The american has taught english and critical thinking skills in china for 5 years. This is going to impact the industry a lot and especially now with cove. It is so hard for foreigners to come into the country to. I think it might mean a huge downsizing of the industry. Many parents invested in chooses to help their children boost their results in hyper competitive exams known as Cow Cow that they need to pass to get into universities. But many say john is Tutoring Industry that was once worth an estimated 140000000000. 00 is now decimated. Can you shop lost her job as an administrator in one of chinas biggest tutoring companies and is now struggling to find work . Sure, yeah, you know, the had his hired on the go, his name is she just because of the huge demand this industry was blooming, but it put a lot of pressure on parents because extra tutoring is not the chinese government. Its cracked on private shoes or reduce the cost of raising a Child And Ease pressure on family. Chinas Birth Rate is low and authority a desperately trying to encourage couples to have more children. But analysts say this isnt the only goal. Authorities also want to encourage investment in more innovative areas of chinas I T industrys to create greater competition with high tech companies in the west. Amazon, the mapping, how alina Space Technology is the company. Mars budge knows the I T giants in china, and they are making money of parents and diets. But some worry that the government may just lead to a black market in private tutoring, just because the government has banned or is trying to cut back on a certain kind of education. I dont mean that was thought parents from trying to pursue it. The government says its Offering Support to thousands of people affected by the measures that that may not be enough to help all of those really from the shock of seeing that Teaching Career in china. Suddenly, at an end, millions of young fans loyal to famous actors and singers are lucrative force in chinas Entertainment Industry. Now, Celebrity Fan Club has become the latest target of government regulators. Authorities has banned activities, which encourage fans to spend money on their favorite stock. Online celebrity rankings, and discussions about the salaries are also prohibited state media newspaper. The global times says fan clubs could be used to manipulate lines and split chinese society. Mega rich entertainers have been criticized and punished to the Tax Evasion and other undesirable behaviors. The moves are part of aging efforts to promote chinese socialist values among young people and cracked down on so called negative influences in entertainment culture. It follows the announcement of new rules limiting how much time young people can spend playing online video game. Mine is, can now log on for 3 hours a week, maximum and only on weekends. Aging says the cuts unnecessary to Combat Gaming and internet addiction, the critic se itll do the opposite of communist. I dont think the new regulation makes any sense to help teenagers or for the less access you get, the more curious you will be on the surface. These changes seem like rules designed to stop unhealthy or obsessive behaviors among young people. But for the chinese communist party, its much more, it sees the Entertainment Industry as an ideological Battle Ground that needs to be kept in check. Regulators have also been the portrayal of a feminine men and online l. G. P. Teach you why communities have been censored. Activists are mean says the government is actively trying to mold the identity of young chinese hoshal aria and the government wants a traditional image for its people. Not taught diverse one to one. I think this really limits the imagination and creativity of the young people. It shows the societies becoming less accepting to those who are different and others like him are worried. Darrell more Changes Head and the freedom of chinese youth will increasingly be replaced by the agenda of the communist government. Lets take a deep dive into geez, common prosperity with iris. Pang irises, the chief economist for great china with i N G Bank. She joins me now from Hong Kong via skype. Thank you for your time. So heating, paying has calls the common prosperity. How big of a problem is inequality . So, if we talk about inequality, we usually use that unique index. Gina, index in china, back into 2000 was point 412, any reading about point 4 in the Case And Inequality issue. But after that, after 2000 happy know updates on the junior in the us in china. So we dont know, does I To situation that as i have seen, Ro Side has in Korea Lee being more wealthy than, than previously. So I Think the Inequality Issue is that many people or culprits that are very rich, and although the rural science has become more wealthy, the inequality, the gap has widens. Common prosperity, though, isnt a new theme, is it . Why is it that were hearing more and more about it now . Come on friday is, isnt new at all. For example, we know that in some countries the Tax Rate is very high. Does this because they want to narrow the Wealth Gap and reduce your bill . Well, from the reach to the poor. So now china is experiencing, there are more rich people, super rich people, as you said. So i expect there will be more progressive Tax Rate system in china for culprits as well as for individuals. But if we think about why president s using paying is pushing this common prosperity theme, i mean, is there a political element to it to does he want perhaps a 3rd term. I think he, he doesnt have to do anything for his time. He has changed the system that he can row over continue sleep. So I Think it is not the ball. Domestic politics is more about the missing quality of people, especially those in and in the base of the pyramid. They, the government wants them to live in install does. Its closer to the rich. China is the 2nd biggest economy. Yeah, i believe 600000000 people. Half the population lives on about 150. 00 a month. So do you think these efforts to tackle that will have the sort of impact thats needed . It depends on how the government do it. So there are many reports that the government will do it through poverty. I dont fully agree, property taxes, just one chill to do this. I, as i said, i expect a more progressive Tax System on call protect as well as individual tax. The government can introduce wealth tax, but this is not really ideal because this will actually the incentive by the people to climb the wealth leather. So i believe progressive task is enough to balance the rich and the pool more effectively. Is this the end . Do you think of the capitalistic spare experiment or an acknowledgment perhaps that we cant leave everything to the market . I think its just the 2nd. We it in many places that are a kind of government Controls Government policies. For example, test asian is one of them in economic theory. If it is a purely market economy, we may not have transportation, ill say that its the 2nd. But of course, how to do it is that in china it will be quite shoshua list methods. So we will hear a lot of Slogan Or Jargon like come on in china, which we may not hear it in other economies, even they share the same idea with a huge population and in almost endless pool of labor was this perhaps inevitable Wealth Gap is inevitable in, in or economies I Think, but how, why is the well got Wealth Gas . If we can narrow it a little bit, it will be better for the, well, the ace in the pyramid and those are struggling to climb the wealth ladder. I think its also important for the children in the poor family that can get access to quality, high Quality Education and chances in the society so that they can move up the ladder. Using thing has over hold the 100000000000. 00 Tutoring Industry taken on Tech Giant Gaming even hit out at celebrities. Has there been any meaningful study as to what impacts that may have on the economy . First of all, the tuition senses. Its already create the pool of jobs, young people, and those young people are actually middle Income Class in china. Just in beijing city, a longer more than 9 G K. Young people being jobless because of the shutdowns of jewish incentives. So you can actually simply multiply it by 4 so that you can get the biggest cities, jobless people from to tuition policy. And in, on the online game policies. I think its not a job. Its about how to switch to the business plans within the company. So they still need the people, so its not, not that that im a j, but it gives room for foreign brands to take into this game markets. Because some game consoles are famous in the world are made by japan. And they will easily get the Market Share because those dont need to be online at all. And the policy only pinpoints on online games. I just want to ask you quickly before we run out of time, we have this huge. If we look to the property sector, we have this huge Property Company ever grant, which is i believe 300000000000. 00 in debt advisors are being called in to look at the structuring of the company assess, its the quality will that be allowed to go on the would that company be allowed to go on to and what kind of impacts would that have . I think survival is the still the main theme because the chinese government doesnt want to create extreme competition in the market. An extreme conditions in the financial sector because they lend to the real estate companies also. So i believe that there will be solutions. Thats a boy extreme conditions or a chief economist grated china with i N G Bank iris pang. Thank you very much for your time. At the center of the Inequality Problem was chinas policy for rapid earnings ation, which meant building millions of homes contributed to break neck economic growth and created sprawling property giants. As we just mentioned, emigrant is now on the brink of collapse, taking on bits of 300000000000. 00. Once again has katrina you ever grant is one of the biggest real estate conglomerates in china. It employs 200000 people nationwide. And even a chinese football team. But the hunger listed giant has become one of the most indebted companies in the world with more than 300000000000. 00 worth of liabilities. And its struggling to pay back sparking fears of a default that could send trends through chinas economy. Its not just the property business, so it also has a new energy branch. Logistic branch. It has business in almost every major city. And many county in china. Evergreen has suspended interest payments to some lenders and delayed payments to others. This week, ratings agencies, fish, and moodies, downgraded its credit status. Company shares have plummeted by 75 percent since the beginning. The year. China can be said to have 2 Property Market in major cities like beijing prices are really sure. In the c d, the average 2 Bedroom Apartment costs more than 1300000. 00. But in small the chinese cities doesnt or just the 5 housing and investing too much in those areas has led to many of every grounds get tighter regulations in chinas financial market. Have also made it difficult for the son to raise cash. The employees have protested outside ever grant offices, saying the salaries havent been paid. Chinese authorities met with Company Management last month, demanding their resolve its debt. But analysts say the government is unlikely to let every grant go bankrupt. They do not want to bail out all those bad behaviors, but still it will be too strong signal if it actually failed. So I Think there will be some effort to go out at least a portion of every business. And maybe the strategic investors will be encouraged on the progress that theyre trying to take over the business. Every grant is Renegotiation Payment deadlines with banks and other creditors. More than 1500000 home buyers waiting for their properties to be completed by the fab. Holding their breath, the multi 1000000000. 00 traditional premium to luxury want to market is expected to see little in the way of growth of the coming years. The industry is under attack from smart watch makers and fashion houses that are rolling out their own brands. Apple has come to dominate the Smartwatch Market with a launch of its new Apple Watch 7, which both the biggest screen it hopes to see off competition from Samsung And Google fit bit. The smart Watch Market is expected to be worth 59000000000. 20. Whereas the traditional market with valued at 49000000000 and 2019 and is expected to be worth up to 59000000000 in 2025. While the traditional market is under threat, the pre owned or 2nd Hand Market is growing. It was worth 18000000000 and 2019, as is expected to be worth 32000000000 by the middle of this decade, the pandemic has sent sales online, and one of the companies taking advantage is a connected man. And im delighted to say that the Founder And Ceo thought is walton, is with me now from london. Thank you for joining us. So is the traditional why watch make a business on the threat from smartphone makers and also from fashion houses . Hi kim. Thanks for having me. You know, I Think its a very valid question. I think when the Apple Watch joined the fray 5 years ago, I Think much of the traditional Watch Industry was fearful about the consequences. I think what happens is theres been a push for innovation inevitably as, as, as traditionally the response in the face to make the central threats 20 market. But I Think whats particularly interesting is its, theres been a boom in the, the more traditional that stay under the market because no watch making everything thats complicated or a little bit independent for high end. Yeah, and to that, and theres been growing interest in the pre owned market, which of course youre capitalizing on. Why do you think that its i look, I Think consumers are increasingly discerning value conscious. They have an interest in sustainability, many cases and equity. Theyre looking for something a little bit more interesting and if you think about it today, you can choose from a limited range of watches available on the market, new according to what the brand has an folio. But if you look at pre owned, you can pretty much have you pick from the last 50 years of watch making more or less hook up through what kind of people are interested in pre owned watches. Whats the demographic that youre seeing coming through . I mean its, its, its a complete Range And Spectrum today. Its young people, its people of all ages all over the worlds. Its still native people who are a little bit more of us are risk averse to online. All areas of the, well its, its an absolute booming market and its, its really not specific to any particular demographic. I would say quite interesting though, that the digital natives that younger people are interested in these pre owned traditional analog watches. I mean, you would think that they would be more looking at the smart Watch Sort of end of things. Yeah, I Think the, in many cases, smart watches open the door at the same time as information became more available and educational information. Theyre more available online to, to a whole new generation. So once you heads remotes of a to people of a certain age to put a watch on their wrist, hadnt thought about it before. What really interested suddenly they were thinking, well actually im used to having this as I Tell my read the left so i can, i can, you know, take the time i rest its convenient to me. Maybe theres something else. And also I Think that leads to subsequent discovery. Mechanical watch making tells how did you come to your business . What was your journey . I mean, so i started to let demand 7 years ago when we started pre owned was really a not a wild west, but it was a hyper traditional markets. It was not at all really online or social media friendly. You know, the, the, the Prince Black says protagonists were high street retailers an auction houses. And to me it just felt like an inevitability. The, the direction of travel would be more digital and so we focused on them. So weve been a digital fasts, education centered social media, you know, highly present business from day one. Today that you know where the market wants us to be. Of course, i mean, as you say, you are digital from day one. But how did the pandemic change your business if it all so i, you know, the pandemic was, they had an appalling consequences for so many people across the world. So many businesses, I Think in all business was fortunate in the sense that we were already poised to benefit from some of the changes in the, the double panama, catalyzed. So people just became more or more comfortable spending higher amounts of money online, reaching out online without seeing and pass and reading about things online. You know, we have a journal where we publish articles 23 times a week that, you know, written by professional journalist and high researched. And I Think as results, you know, all those things came together as well as a growing acceptance of the online cooked story of the pre on concepts and it, and it really say the dog business model. The finally, how you manage to build up your clientele. I mean, these people who want to publicize who they are so its a very, you know, some, some clients are incredibly discrete, incredibly confidentiality, sense sensitive captains of industry. You know, people in the Film Industry in the music industry, et cetera. Other people, all, you know, very, very comfortable with social media either because they grew up with it or because they were already adopters. You know, everyone has to be careful about how they present themselves and how they present the things they own. But most consumers, i would say today are increasing sophisticated and you know, they, they know they know what theyre doing. They know how to handle it. Or I Thank you very much for your time, silas walton, their ceo of a collected man. My pleasure, january. And that is our show for this week. Get in touch with us by treating me at kim for now. Do use the Hash Tag H a t t c. When you do want us an Email Accounting to cost at L Dot Net is our address. Theres more for you online at Al Serra Dot Com Slash ctc, that takes you straight to our page, which as individual reports links and in time episodes for you to catch up on an asset for this edition of counting the cost. Im Kim Fidel from the whole team here and how thanks for joining us. The news on there is next, a russell obeyed in southern england where to farmers, friends, safari, park. Pioneers of this tract is nature in the driving seat. I was just absolutely astonishing the life, the poor back even the very 1st month. And i miguel sophie, i, cynthia when one by your company revolutionizing the system using funds and artificial intelligence. Here in flight. You have you have a technology. Birth rise on alger 0 has become a dangerous business. 11 east, and those who refuse to be silent. Now give me. Ah me. This is Al Jazeera ah, hello, im o patterson. This is the news i live from doha. Coming out of the next 60 minutes, we with deliberately kept in the black, we were there with the War And Frustration among allies, france recalls that some basset to Camera And Washington after it was jumped from a multi 1000000000. 00 Submarine Deal was a mistake