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tv   Business - News  Deutsche Welle  September 7, 2022 4:45pm-5:01pm CEST

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chinese export slow in august, growing signs of weakness have some doubting predictions that china can overtake the u. s. economy by 2030 and no signs of elder otto for el salvador, one year after it made bitcoin legal tender. welcome t d w business. i'm christy platt's number lynn. apple is expected to announce its new i phone model today that's a little earlier than in previous years. it could be with hopes that an additional week or 2 on the market will have a positive effect on the quarterly figures. now holding a hybrid event online and in person marks another change to the way apple has been doing things. and more changes could be ahead when it comes to where it makes its gadgets. the i phone is apple's flagship product. nothing else means more to be american tech giant than the iphone does. almost $41000000000.00 worth of iphones were sold last quarter. that was just under half of apples. total revenue. i phone
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production is almost entirely based in china. and apple is becoming where you have this dependency. china 0 koby policy and strict locked downs paralyzed. it's partner fox con, which makes the phones that complicates things for apple industry. experts think apple has become more reliant on china in the 11 years since tim cook became ceo. he outsource more and more production there to cut costs and increase efficiency. but now, chinese labor costs are on the rise. so it's time for a course correction. apple is expanding in india and vietnam, where workers are much cheaper. well for more in this, we go to fraser, how he is a china analyst and the author of the book read capitalism. frasier, thanks for joining us. why has apple under tim cook been so drawn to china? look, i think it's a similar story for many producers, china has become the place of the world. they had
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a very good day in clusters of infrastructure for manufacturing. and so in that sense, it was a no brainer. you had ultimately, you know, in many their books gone in a lot of people, they're lying on. i would need company set up factories in china. so again, i don't know why the out of course, a very high profile company, the biggest company they lay wildly popular is you know, and so not to follow the path, but many others have done and very much operational chain. supply chain focused and china provided all those things that he looked for in terms of proficient. right. obviously we know a lot about the supply chain issues that came out of the pandemic and the west reliance on chinese production. where is the china apple relationship today? look, i think all of foreign businesses in china are struggling to cobit as you know, yard report mentioned that, but then also the basically the, the political field has changed dramatically in china under she didn't over the
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past few years. so foreign companies are paying a lot more pressure and apple is not going to be, i mean from that, they're also feeling pressure back domestically in the states. and because of their alliance on china. so it's become, it's understandable, the cape so dependent on china for manufacturing and also for sale. you have to realize that the world has changed, but china has changed, and therefore they need to change with it. the supply chains, ties have been built over years over decades. they're not changing fast. rival, we're obviously though hearing about some sort of shift taking place in any case, the cheaper labor in india, vietnam. what could such a shift mean for those countries? i think generally positives, i think, you know, which many of these other countries in asia they've not been able to follow the aches for the export model or my new model. because china has been such a dominant force there. that is greece. other players are,
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i think it's ultimately positive for vietnam, it's positive, but ultimately it's going to harm china. but it got it. these are slow as almost title forces are glacial forces. at times it does take a long time, and i will struggle to some extent because those countries don't have the same sort of cluster infrastructure that china has. but those moves i move out of china dot re balancing if you like, we'll be taking place and will not void that are various again, i'll be hearing about the i phone 14 out later today. frasier, how are you? thank you so much for your analysis. i very much well, sticking with china export growth there slowed significantly in august to growing only 7 point one percent year on year. that was down from 18 percent in july. strict covered, locked down, continue to disrupt production, and many analysts think china's long economic boom may be coming to an end. china's gross domestic product had been catching up with that of the u. s. decades of rapid
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growth had led to predictions. it would become the world's biggest economy by 2030, but china's pandemic response and the real estate crisis there have changed the picture now with growth and exports faltering. some economists say china might never overtake the u. s. let's bring in so it's on han in taipei for more on this. so thanks for joining us. what does this slowing growth in august tell us about the condition of the chinese economy right now? yes, christie, at a time when most countries around the world have relax, epidemic control measures in china at least 74 cities and 313000000 people have been under 4 or posho locked down since late august is a big blow to the chinese economy. especially when china need to rely more on domestic demand, their exports, and not only china's asper growth slow due to weakening external demand, but also the global economy is likely to slow down. the key challenge china faces
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is how to balance domestic comic activities and content cope it. al, brakes. okay, was pretty tough situation for china. it sounds like, does this change at all their ambitions to be the world's largest economy by the end of the decade? yes, definitely. besides arms 0 covey policy, curb in housing speculation, an aging population and high debt levels had cost many expert to reconsider the timing of china overtaking the united states as the world's largest economy. and even whether that will happen or not. more to that, the chinese government's increase in tendency to intervene in private corporate affairs have also significantly lower the expectation for china's economic growth. if china's economic problems continue to pile up, china will be far less prosperous and less productive per capita than the u. s. and lose it's competitive advantage. okay, interesting. well, so you're there in taiwan. what would losing this competitive advantage
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a slowing chinese economy mean for taiwan? or some expert believe that if china goes into recession, it may soon try to of unified how one by force while it's still can. and also the fact is how a steel relies heavily on china for 40 percent of its export. and if china's economy keeps going down 1000000 how uneasy business men in china would also be dragged down by china's weak domestic demand. so these are all influences that we are expecting to see. right. so it's an hon. thank you so much. now to some of the other global business stories making, there's russia's top lender spare. bog expects russian g d p to contract by 4.5 percent. this year, fairbanks seo said the banking sector has begun recovering from the impact of sanctions and spare bank expects to post a profit at the end of the year. lufthansa pilots have called off a 2 day strike after a last minute agreement with germany's biggest airline. the cockpit union said the
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2 sides agreed on the basis of a comprehensive package of monetary and structural issues a walk out last week for the cancellation of hundreds of flights electronic cigarette maker, dual labs has agreed to pay nearly $440000000.00 to settle an investigation by $33.00 u. s. states into the marketing of the vapor products. the investigation found that drill marketed, it's e cigarettes to under age teens. with launch parties, product giveaways ads and social media posts. china will start paying for russian natural gas and rubles, and one instead of u. s. dollars. that's according to russia's energy giant gas from this comes as moscow seeks closer ties with beijing in the wake of western sanctions over its war against ukraine. bitcoin, it used to be a magic word for investors. first, it was individual risk takers who placed bets on the crypt currency than it was
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companies like tesla that invested big sumps. but the biggest bitcoin, visionary of them all, was certainly naya bew kelly, the president of el salvador. he went big on bitcoin and promised to make this central american country rich. as of late, however, d kelly's big dream seems to be falling apart. oh, monica diaz doesn't remember the last time a customer paid with bitcoin. she says no one here cares much for the crypto currency. as for herself, she spent the $30.00 and bit con, that the government gave out to every citizen. and that was it. see, i also sure i bought something for myself with those $30.00. i'm about, i mean, after that, not much happened in her app. it's a far cry from the economic miracle precedent night book kelly had promised, turned himself into an avatar voice fans talking about investment wealth and a huge vision, reconsidering bitcoin city, and nearly tax free community run on energy from a near by volcano to
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a mission. lucille complex in midland, so far, none of this has happened. bitcoin has crashed and people still prefer u. s. dollars. most of them barely have any savings. anyway, they earned just enough to get by with nothing left to invest in shaky bushel currencies. but what allow up all assume salary? the instability of bitcoin is a problem for people. a drop of $0.25 a day can make the difference between a leading and not eating or not matter. in as sante tourist hotspot an hour from the capital city, people were looking forward to the bid con project, expecting visitors to pay for their coffee using crypto easy. i run to get done and we thought they would all come to be part of a bit con revolution. turns out there evolution never started. hotel owners or early adopters have become weary as bit coins value dropped. the little bit
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boy fussy nick and oh, it's not easy to understand bitcoin. i think there's potential in long term investment, but that would be my personal risk as an entrepreneur. if amelia sion, the can 2nd go back president will, kayla has invested public funds and bitcoin, and it's unclear how much were the loses. we've give some hints, economists, ricardo castaneda puts his estimate at $225000000.00 and expect a loss of $60000000.00 records. those couple. the young is that money could have gone into education or into feeding people as half of the population doesn't have enough to eat. i this is ellie min. 30. monica diaz had invested $20.00 in bitcoin and lost half of that. like most people in el salvador, she prefers to stick with you as dollars. now. finally, ukrainian president vladimir lensky, has paid a visit to the new york stock exchange. well, virtually, at least he rang the opening bell and urged business leaders to invest hundreds of
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billions of dollars in ukraine. war torn country is aiming to rebuild infrastructure, strengthen national defense, and exploit its natural resources for the benefit of your children and the want of your car. a quick reminder of our top story, new i phone is set to take center saves at apple's 1st lab events. since the start of the pandemic, arising costs have apple rethinking its reliance on chinese production. that's our show. i'm christy plots number land. thank you so much for watching to see tomorrow . ah ah, with
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with how's it from air vapor real. what sounds like a joke at 1st. a canadian started up wants to make reality soon. find out how they came up with this idea of how it works. and how it will help the environment in made in germany in 30 minutes on d. w. o . ah, several did, and right wing extremists, i suggested again, well, maybe a couple late in burned in south africa. people with disabilities more likely to
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lose their jobs. in the pandemic black lives matter. shine a spotlight on racially motivated police violence, same sex marriage is being legalized in more and more countries. discrimination and inequality, or part of everyday life. for many, we ask why? because life is diversity to make up your own mind. d. w, lead for mine's a ended go listening place of long the mediterranean sea it's waters connect people of many cultures seen of almost rock and jaffar. abdul karim drift along with exploring modern lifestyles and mediterranean. where has history left its traces
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leading regal, hearing their dreams, ready to meet this week? d, w ah, ah, this is dw news live from berlin, b u n's. nuclear watchdog warns a military safe zone is needed around ukraine's operation nuclear plants. gap claim by the head of the international atomic energy agency addresses the un security council warning that if showing around the facility.


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