tv Business Deutsche Welle April 16, 2019 4:45pm-5:01pm CEST
let's do business china's car market needs a jump start sales have skidded off track for the first time in a long time and the communist leaders want to lead in electric vehicles imposing sales targets that's requiring the big brands to pour money into new models to compete with gasoline powered cars. tossed i felt reports. the id rooms might still be a show car but the electric s.u.v. will be built and sold in china starting next year later the usa in europe will follow china is to become the focus groups leading market for electric mobility millions of cars will roll off assembly lines here. china really be the automotive powerhouse of the future electric cars fully connected cars all their technology enterprises working very closely together here we are a very important part we have eighteen percent market share in the group of fourteen. so we are strong pillar of the south to mortify industry that will spur
the company wants to counteract the declining sales figures in the asian giant with a completely new car brand for china the jetta this inexpensive v.w. was designed especially for the chinese market for the equivalent of ten thousand euros the sedan or s.u.v. will reach completely new groups of buyers eighty one percent of those first time buyers so when we want to attract new chinese custom us with the first time in their life and chance to buy a car into our group environment then this is the place to be skoda is placing all its bets on s.u.v.s in china and starting next year all skoda is will be available as eco r.'s still the mood at the fair has been dampened by the current weakness of the market. you know first to. be kate's own. growth the first decline after the ninety's and we have already be information that . the market will pick up again in the second quarter and by the end of the year
hopefully see a normal life to do it again the message from v.w. c.e.o. d.c. is clear the fate of the votes wagon group will be just cited in china. luxury brand b.m.w. also sees the market picking up it'd be timely youngest board member peta norton what he thinks about china opening its caustic to allowing foreign investors majority stakes in joint ventures for the first time be very much welcome the opening up of the chinese market for foreign investment that's great we've also quickly taken the initiative to step up our stake in our joint venture for b.m.w. and we've significantly increased our investment here in china also in local production facilities so we welcome that china is a key strategic markets and b.m.w.
group but only because of its size but also because it's very advanced when it comes to new technologies like electrification and also automated driving. the o.e.c.d. group of rich nations says chinese stimulus will shore up growth this year and next but it warns the measures may see debt balloon aging as stepped up efforts to prevent a slowdown from accelerating weak a domestic demand and trade tensions are squeezing the world's second largest economy corporate debt is poland offer a state clampdown on risky of financing local governments could be sitting on debt with five trillion euros. a long time china. joins us now what these actual stimulus measures and why could they backfire well with the trade war weighing so heavily in china they've introduced various measures they're investing in infrastructure to do all this they're making it easier to
borrow money so they're cutting reserve requirements and cutting taxes for some corporates and trying to get everything to two to help boost the economy how they could backfire is because as you mentioned the government to china is already saddled with quite a lot of debt so it needs to try and balance the need to do this stimulus but also to make sure that it doesn't like things to run out of control as the o.e.c.d. has worried it certainly goes the idea of the building at a time that its economy is shrinking this is something china has done many times on that it helped bail out the global economy in many ways in two thousand and nine and it has got the right idea the problem is always finding this balance between letting letting the corporates make it easy for them to borrow money at particular the state owned enterprises which many people say are in need of reform you know and local governments if they also have too much leeway with the cash whether things will go out of control and bring the economy further into slowdown if they really are sitting on so much hidden debt what is beijing doing about all that that
well what we hear from the people's bank of china the central bank is they're promising to keep an eye on things it's a very reliable institution and the markets have great trust in this. it is trying to find out balance that it's looking at ways to to free up spending interface and to encourage lending while at the same time avoiding some of the the bad debts that have caused so much trouble in recent years and there are signs that a lot of the of the toxic lending that they have many years of in recent years has been dampened a bit would a trade deal with the u.s. save the day or help at least you know it's a kind of emerging as one of those big. whether trade or get at the end of a trade war would save everything i don't know if it's enough to save everything but certainly it would help with things like the car market as we seen earlier with the reports from shanghai it would boost consumption there it will improve sentiment and sentiment is a big factor in the financial markets these days particularly with the global
slowdown with every feeling a little bit downbeat so i think it would certainly have a strong psychological effect on it would we it would possibly give further in persist two to external factors isn't reform something economists always cold for in the middle of a slowdown will and i talked about the caustic the reforming before will other sectors actually follow i think i think reform is very interesting mention the car car sector has led the way in reform in many ways but it would need reform of the financial sector in particular and that's tied in with the trade war of course because that's something that the u.s. government is very interested in courage and they want a level playing field and reform is needed to bring that in so definitely reform could be a big fillip to the to the economy the question is whether this is the political will to introduce the reform that's always the question which on a so that's something we're still going to have to wait and see if it couldn't and thank you very much for coming in. to some other business stories making news.
the board of j. ways is to hold a crisis meeting the indian airlines has failed to secure emergency funding thousands of passengers have been left stranded stuff haven't been paid for months the company has fits of over a billion dollars it's thought the board could decide to suspend all operations. in the u.s. congress has subpoenaed deutsche bank and other lenders over president don't trump's finances it's part of a democrat led if it by the house of representatives to investigate his business dealings twenty eight hundred financial disclosure forms showed he had liabilities of at least one hundred thirty million dollars twenty merican unit of georgia. officials have switched on the baltic season biggest off shore power project german chancellor angela merkel attended the opening she described the kona wind farm as of national significance to germany as
a transitions trooper and you will energy. and time when he's tech manufacturer of foxconn plans to begin the mass production of i phones in india later this year which embury says indian prime minister narendra modi has invited him to visit foxconn is the biggest assembler of apple hansie it's. just a few years back the romanian capital of book arrest was hoping to become the largest chinese business and trade center in central and southeastern europe huge amounts of capital were amount for buildings apartments and schools but something went wrong. chinatown in the romanian capital bucharest it was to become
a hub of trade in chinese goods in the balkans the egyptian merchants sat at aqua was there from the beginning. the halls are empty the project a complete failure the chinese market didn't have a chance against already existing markets in bucharest three thousand square meters of hall space has become utterly useless. because you've. got the opening there was the television the prime minister the chinese ambassador and a lot of fanfare. but the next day the tax collectors were there checking the traders they came almost every day to someone obviously had something against the market many traders felt intimidated and gave up. chinese cheap products were also gradually going out of fashion in romania almost ten thousand chinese retailers left the country often in the direction of poland. more successful is the chinese bicycle manufacturer d.h.s.s.
in the city of deva the company employs around three hundred people and has invested over twenty million euros many different models are produced but the big sellers are the electric bikes. the chinese factory manager is satisfied with the location after all wages here are low by european standards. and we're highly satisfied with our investment which is paying off we have one very good clients in germany and the netherlands also. the market for bicycles with electric motors is currently booming so we still see lots of sales opportunities in this market and. the e.u. requires the chinese entrepreneur to buy sixty percent of the bicycle components within the e.u. imports from china would be much cheaper but chinese suppliers fail due to
bureaucratic hurdles. so. the relocation of chinese companies takes far too long there's too much bureaucracy also because the language differences are very large it all takes far too long and is complicated in china setting of a new company goes much quicker. with. originally one hundred thirty million euros were to be invested in chinatown in bucharest deal or sat at agway has bought a cheap shop on the premises from the insolvency of state. he no longer imports the bulk of the carrier bags from china but from italy. that goes faster and there are more trendy. i spoke business with a. kick
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