confidence to invest in china is at a record low. one of the biggest shipping lines is explaining why the red sea crisis is contributing to the problems for shipping goods around the globe. there will be problems for the global economy of all these problems continue to grow. wherever you are joining all these problems continue to grow. wherever you arejoining me all these problems continue to grow. wherever you are joining me from around the world, hello. but first, ever since the end of the second world war, peace and prosperity had been tied together the global trade. selling stuff to other countries. is that now unravelling? amid growing hostilities, politicians are putting up hostilities, politicians are putting up more barriers to trade. in particular when it comes to the technology of the future. youssef imposed a range of new tariffs on china. with regard to electric vehicles in particular. the eu is also putting tariffs on electric cars from china. if talks fail to sort out the differences, there will be tariffs on europe's farmers from china. why is this happening? everyone wants control of the technology of the future. politicians want to create jobs in the hopes of winning votes. {hind politicians want to create jobs in the hopes of winning votes. china is roducin: the hopes of winning votes. china is producing far _ the hopes of winning votes. china is producing far more _ the hopes of winning votes. china is producing far more than _ the hopes of winning votes. china is producing far more than the - the hopes of winning votes. china is producing far more than the rest - the hopes of winning votes. china is producing far more than the rest of| producing far more than the rest of the world can is up so. there will be excess products on the mark kit with low prices driving other manufacturers out of business. i want competition with china and not conflict. we want competition with china and not conflict. ~ . ., want competition with china and not conflict. ~ _, _, , ., conflict. we welcome competition. but this competition _ conflict. we welcome competition. but this competition must - conflict. we welcome competition. but this competition must be - conflict. we welcome competition. but this competition must be fair. | but this competition must be fair. this is_ but this competition must be fair. this is protectionism. what we are doing _ this is protectionism. what we are doing is_ this is protectionism. what we are doing is in— this is protectionism. what we are doing is in fully in line with eu rules — doing is in fully in line with eu rules. . , , , doing is in fully in line with eu rules. ., , , , ., ~ rules. china disputes that. when it comes to the _ rules. china disputes that. when it comes to the us _ rules. china disputes that. when it comes to the us and _ rules. china disputes that. when it comes to the us and china, - rules. china disputes that. when it comes to the us and china, it - comes to the us and china, it lurking in the background are the widespread tariffs that they put on each other�*s exports. they are being keptin each other�*s exports. they are being kept in face by presidentjoe biden. china has rejected us allegations of dumping. it says it wants fair competition on electric vehicles. we should keep an open mind and work closely— should keep an open mind and work closely together. rejects block conference plantation. maintain the stability— conference plantation. maintain the stability and smoothness of industrial supply chains. promote chain— industrial supply chains. promote chain and — industrial supply chains. promote chain and liberalisation. we should lead and _ chain and liberalisation. we should lead and promote healthy development. bring together world economic— development. bring together world economic growth.— development. bring together world economic growth. meanwhile china has been growing — economic growth. meanwhile china has been growing its _ economic growth. meanwhile china has been growing its trade _ economic growth. meanwhile china has been growing its trade links _ economic growth. meanwhile china has been growing its trade links with - been growing its trade links with russia as a result of economic pressure from the west. many camps on a siding with them or the west. companies such as ikea, nikkei and apple. they are thinking about where they make their staff. world trade organization has said that global trade has fallen i.2% organization has said that global trade has fallen 1.2% last year. only the third fall in 30 years. the international monetary fund is warning that if the world splits into two trading blocs, it could cost the world economy nearly seven and a half trillion dollars in the long term. irate and a half trillion dollars in the long term-— and a half trillion dollars in the long term. and a half trillion dollars in the lona term. ~ ., , .,, long term. we have seen in the last few years. — long term. we have seen in the last few years, especially _ long term. we have seen in the last few years, especially when - long term. we have seen in the last few years, especially when it - long term. we have seen in the lastj few years, especially when it comes to global trade relations, it is nothing like we have seen since the end of the cold war. the last few years we have had numerous shops including the pandemic, russia's invasion of ukraine and following these events, increasingly countries around the world are guided by economic security and national security concerns in determining who they trade with and who they invest in. ~ . they trade with and who they invest in. . ., ,., . they trade with and who they invest in. . ., . , they trade with and who they invest in. ., , in. what impact is all this happening _ in. what impact is all this happening on _ in. what impact is all this happening on the - in. what impact is all this i happening on the companies in. what impact is all this - happening on the companies on the front line of these differences? ever since china opened its doors to foreign trade at the end of the 19705, thousands of american and european companies have become reliant on it for manufacturing. and also, increasingly as a place to sell their stuff. also, increasingly as a place to sell theirstuff. i also, increasingly as a place to sell their stuff. i decided to catch up sell their stuff. i decided to catch up with the president of the presence of the european union chamber of commerce in china. it is great to have you on the show. you have just released your annual confidence survey. it doesn't make pretty reading if you are a foreign company operating in china stop just explain what you found. what company operating in china stop 'ust explain what you foundi explain what you found. what is ha enin: explain what you found. what is happening in — explain what you found. what is happening in relation _ explain what you found. what is happening in relation to - explain what you found. what is happening in relation to last - explain what you found. what is| happening in relation to last year is that— happening in relation to last year is that companies are increasingly concerned — is that companies are increasingly concerned about the state of the domestic— concerned about the state of the domestic economy. china's economy and the _ domestic economy. china's economy and the global economy that, there are concerns about china's domestic economx _ are concerns about china's domestic economx it — are concerns about china's domestic economy. it is dragging down sentiments. gn economy. it is dragging down sentiments.— economy. it is dragging down sentiments. , , ., sentiments. on the flip side, how im ortant sentiments. on the flip side, how important are _ sentiments. on the flip side, how important are in _ sentiments. on the flip side, how important are in foreign _ sentiments. on the flip side, how. important are in foreign companies for china's economy? if you look inside china you have problems with youth unemployment, huge debt legacies, it does beg the question how much does in type and a need that investment from abroad to keep its economy running? it is that investment from abroad to keep its economy running?— its economy running? it is in a situation _ its economy running? it is in a situation where _ its economy running? it is in a situation where it _ its economy running? it is in a situation where it is _ its economy running? it is in a situation where it is fairly - its economy running? it is in a - situation where it is fairly complex and dire, — situation where it is fairly complex and dire, everything that generate economic— and dire, everything that generate economic activity is basically welcome. china has been providing hi-h welcome. china has been providing high quality attractive jobs. let welcome. china has been providing high quality attractive jobs.- high quality attractive “obs. let us talk about the h high quality attractive jobs. let us talk about the automotive - high quality attractive jobs. let us. talk about the automotive industry. names such as bmw, volkswagen, jaguar and land rover. how concerned are you that the eu is putting these tariffs in place on electric vehicles made in china? i tariffs in place on electric vehicles made in china? i think the introduction _ vehicles made in china? i think the introduction of _ vehicles made in china? i think the introduction of tariffs _ vehicles made in china? i think the introduction of tariffs is _ vehicles made in china? i think the introduction of tariffs is a - vehicles made in china? i think the introduction of tariffs is a sign - introduction of tariffs is a sign that— introduction of tariffs is a sign that something is out of balance. we do think— that something is out of balance. we do think that something is out of balance — do think that something is out of balance. we need to find a solution the both— balance. we need to find a solution the both europe and china can live with _ the both europe and china can live with we _ the both europe and china can live with. we need to see chinese imports from europe _ with. we need to see chinese imports from europe going up by a third. the chinese _ from europe going up by a third. the chinese economy has moved improved by 30 _ chinese economy has moved improved by 30 to— chinese economy has moved improved by 30 to 40%. on trade balances and the overall— by 30 to 40%. on trade balances and the overall trade relationship, the complete — the overall trade relationship, the complete manifestation of that is the investigation and now the prospect— the investigation and now the prospect of tariffs being introduced. we need both sides to realise _ introduced. we need both sides to realise the — introduced. we need both sides to realise the seriousness of the situation _ realise the seriousness of the situation and sit down and try to work— situation and sit down and try to work out — situation and sit down and try to work out their differences. some estimates suggest _ work out their differences. some estimates suggest that - work out their differences. some estimates suggest that the - work out their differences. fins estimates suggest that the chinese companies are now producing more than half of the world's electric vehicles. i am wondering can these chinese ev companies compete on the international market without subsidies and other government helpful? subsidies and other government helful? ~ ,,., , subsidies and other government helful? ~ , ~ subsidies and other government helful? ~ , . ., ., , helpful? absolutely. we need to keep in mind that part— helpful? absolutely. we need to keep in mind that part of— helpful? absolutely. we need to keep in mind that part of the _ helpful? absolutely. we need to keep in mind that part of the dominance . in mind that part of the dominance of the _ in mind that part of the dominance of the ev _ in mind that part of the dominance of the ev manufacturers have achieved _ of the ev manufacturers have achieved is because of direct and indirect— achieved is because of direct and indirect subsidies. i�*m achieved is because of direct and indirect subsidies.— indirect subsidies. i'm also wondering _ indirect subsidies. i'm also wondering what _ indirect subsidies. i'm also wondering what are - indirect subsidies. i'm also wondering what are the - indirect subsidies. i'm also i wondering what are the other challenges that make it tougher european and other foreign companies to operate in china? i european and other foreign companies to operate in china?— to operate in china? i think there are a number. _ to operate in china? i think there are a number. it _ to operate in china? i think there are a number. it depends - to operate in china? i think there are a number. it depends on - to operate in china? i think there are a number. it depends on the| to operate in china? i think there - are a number. it depends on the type of industry— are a number. it depends on the type of industry you are looking at. for somef _ of industry you are looking at. for some. it — of industry you are looking at. for some. it it— of industry you are looking at. for some, it it there will be reckless to property. if companies operate in the same _ to property. if companies operate in the same way in china as china operates— the same way in china as china operates in— the same way in china as china operates in europe. we have also seen _ operates in europe. we have also seen a _ operates in europe. we have also seen a significant number of instances where new security regulations in general are beginning to impact— regulations in general are beginning to impact the ability of european companies to sell to china. i think it is fair— companies to sell to china. i think it is fair to — companies to sell to china. i think it is fair to say that europe still remains — it is fair to say that europe still remains a _ it is fair to say that europe still remains a significantly dependent on china, _ remains a significantly dependent on china, ratherthan remains a significantly dependent on china, rather than the other way around — china, rather than the other way around. that is in there needs to change — around. that is in there needs to change it— around. that is in there needs to chance. , around. that is in there needs to chante, , ., around. that is in there needs to chance. ,., , ., around. that is in there needs to chance. , ., , ., ., ., change. it is always going to have ou on change. it is always going to have you on the _ change. it is always going to have you on the show. _ change. it is always going to have you on the show. thank _ change. it is always going to have you on the show. thank you - change. it is always going to have you on the show. thank you for. you on the show. thank you for joining me. i you on the show. thank you for joining me— you on the show. thank you for joining me. you on the show. thank you for “oininr me. ., , , , joining me. i cannot believe this is our last joining me. i cannot believe this is your last show- — joining me. i cannot believe this is your last show. i _ joining me. i cannot believe this is your last show. i have _ joining me. i cannot believe this is your last show. i have been - your last show. i have been following _ your last show. i have been following you for the last 20 years. all the _ following you for the last 20 years. all the best in the future and i will see — all the best in the future and i will see you somewhere around the world _ will see you somewhere around the world. . ~ will see you somewhere around the world. ., ~' ,, , will see you somewhere around the world. . ~ ,, , . will see you somewhere around the world. ., ,, , . ~ . world. thank you very much. much appreciated- _ world. thank you very much. much appreciated- no — world. thank you very much. much appreciated. no country _ world. thank you very much. much appreciated. no country export - world. thank you very much. much l appreciated. no country export more goodsin appreciated. no country export more goods in china. the stuff made their is hugely important to the global shipping industry which moves about 90% of all the world's trade. tariffs are just one problem it is facing as it tries to do its bit to keep the global economy moving. at this i have been speaking to the big boss. we are halfway through 202a. we have politicians throwing tariffs around we have disruption in the red sea and congestion in many ports and in the mediterranean. i sea and congestion in many ports and in the mediterranean.— in the mediterranean. i think the situation the _ in the mediterranean. i think the situation the panama _ in the mediterranean. i think the situation the panama canal - in the mediterranean. i think the situation the panama canal has i situation the panama canal has improved. the red sea has been the main issue throughout 202a. there is also some congestion here and there. a bit more than we would have hoped for. but these are the chances we face a day—to—day basis china is hugely important to the global supply chain you have a magus role in keeping the trade going how long does it take to make a difference in the movement of goods? brute does it take to make a difference in the movement of goods?— does it take to make a difference in the movement of goods? we see a seem ve stron: the movement of goods? we see a seem very strong boy — the movement of goods? we see a seem very strong boy today- — the movement of goods? we see a seem very strong boy today. we _ the movement of goods? we see a seem very strong boy today. we need - the movement of goods? we see a seem very strong boy today. we need to - very strong boy today. we need to move stuff — very strong boy today. we need to move stuff now _ very strong boy today. we need to move stuff now before _ very strong boy today. we need to move stuff now before some - very strong boy today. we need to move stuff now before some of. very strong boy today. we need to | move stuff now before some of the tariffs kick in. we need to move production around. people will move production around. people will move production from china to other places in southeast asia. in recent times we have certainly seen more activity in places like mexico and india. then we see flow is changing. luckily, the flows are still there. let us talk more about the red sea situation. , ., ., , ., situation. they are taxes on shipping- — situation. they are taxes on shipping- this _ situation. they are taxes on shipping. this all _ situation. they are taxes on shipping. this all important | shipping. this all important shipping. this all important shipping route for the global economy is going to open any time soon. how damaging as i feel as a company. it soon. how damaging as i feel as a coman . . ,., soon. how damaging as i feel as a coman . . , . ~' soon. how damaging as i feel as a com an , ., , ., " ., ., company. it adds a week or two weeks to rlobal company. it adds a week or two weeks to global supply _ company. it adds a week or two weeks to global supply chains. _ company. it adds a week or two weeks to global supply chains. luckily, - to global supply chains. luckily, all of us have invested in chips over the years. that means today we are able to sail around the cape of good hope. that is the positive side of it but, of course, in the long run it is not a good situation. we hope that by the end of the year the situation will go back to normal. there are significant growing congestion imports in the mediterranean and across asia, dubai, singapore and shanghai. can you explain to the uninitiated what is happening and what it means for the ability to move goods around the world? we the ability to move goods a