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tv   Business - News  Deutsche Welle  December 31, 2021 7:15am-7:31am CET

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form their bells, i should say, to perform their most important duty. london's traditional new year's fireworks and concert have been cancelled due to coven 19 restrictions, but there's no holding back big bens bonds. you of course watching g w. news live of from berlin. i'm nick spicer for war headlines and analysis. remember, there's always our website d, w dot com on social media. you'll find it under at d. w. news. banks to watch ah people and trucks injured when trying to flee the city center. more and more refugees are being turned away on the border families,
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planes on attacking the reason for these critical illness, we loaded demonstrate people. lean extreme ross getting 200 people from the agency around the world. more than 300000000 people are seeking refuge. yes. why? because no one should have to flee make up your own mind. w. made for minds. ah, ah. will a new year bring new difficulties for western companies doing business in china? if the end of 2021 is any indicator? then the answer is almost certainly yes, we'll look at
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a tough new law in the u. s. meant to force more businesses to reckon with supply chains in china, at the risk of angering beijing. also on the show 20 years later, the euro unites much of europe and still divides many opinions. we'll look at how the single currency made it this far. hello and welcome to the show. i'm seen beardsley in berlin. we begin in hong kong where shares in the controversial chinese a i start up since time search 23 percent on their market debut. a sense time was supposed to live in new york. however, the us treasury blacklisted the firm only a week ago saying it's facial recognition software was designed to oppress weaker muslims in the chinese province of shin. john, the move essentially prohibits american investment in the firm. or since times i p o is the latest example of how western businesses are under pressure over the issue of cian john both at home and in china. and that pressure is only growing the
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united states recently passed tough new legislation that puts the onus on businesses to prove that their sourcing is clear of forced labor and china has target is it's muslim minority, weaker population through a series of internment camps, force labor programs, and intense surveillance, more than a 1000000 wiggers are believed to have been detained. and yet for companies getting out of business in the region carries its own perils and u. s. chip maker intel issued an apology last week after informing suppliers in china. they would not do business and chin john. the announcement has had caused an uproar across the country. and meanwhile, the upcoming winter olympics in beijing is putting further pressure on businesses. but from another angle. western human rights groups criticize u. s. companies sponsoring the events, including air b and b, coca cola and general electric i from wellness, i'm joined by dexter roberts, he's a journalist and senior fellow with the atlantic council. he's author of the miss the myth of a chinese capitalism. dexter is going to have you on the show. let's start with
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since time this debut plan for us capital markets, like many companies wanting to go to the biggest capital markets in the world, ending up in hong kong because the span should we expect to see more companies, more chinese companies. choosing this route, whether out of the, whether being forced from one side or the other. yeah, absolutely. we're going to see a lot more. we already saw your recall earlier in the month. the announcement by d. t global, the right healing company. china, china is right. healing company, it's announcement that it was the listing. it's going to the list from the exchange in new york and list in hong kong, presumably. and we've got pressures like that, like that facing sense time with the treasury sanctions, against a technology companies involved in, in seen john and human rights abuses and change on it. and then also we've got issues like the one facing dd where the track this,
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the pressure is coming from the chinese government, which wants to control the potential flow of sensitive data to overseas. all right, sure. so pressure from both sides on companies doing business in both countries. when ask about this new law in the u. s. this is seen as one of the toughest laws on the books of facing some large companies that are doing business there, including apple, including many textile manufacturers. how tough can this be? will this be, how do you look at it? i think it's a tremendously daunting from the company's perspective. they are being asked, the owners of proof is on them to show that their supply chains in no way are benefiting or relying rather on forced labor and change on. and you have to keep in mind that they already, sometimes, you know, it's not always easy for them to get to the bottom of, of where their products are being sourced. they tend to focus on their top tier
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suppliers. they don't want to get in trouble because a 1st or 2nd tier supplier isn't doing something that the us government might see is objectionable. but in this case, we have multiple tiers of suppliers. you know, 23456 level suppliers. and if any of those are relying on force labor in china and particularly in change on those companies are going to be held responsible. so honestly they, they haven't done terribly good job in previous years of managing and monitoring their multiple tiers of their suppliers. and now they're being asked to do it to an even greater degree. one last thing i would mention, china has its own law, which forbids chinese companies from cooperating with overseas sanctions. so china, the suppliers of companies like intel and many other companies. they're,
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they're now going to potentially push back and say, well, they don't want to, you know, if they're asked whether they're sourcing from change young and using force labor, they very well may push back and not answer that or not be, be able to, we're willing to address that issue or putting those companies in a further bond decks or briefly. what kind of backing can you expect from the you when it comes to this hard line against china? briefly, if you could i. i think that we're seeing a sort of, if you will, and increasing mean of mines over everything from concerns about china's merc until us trade practices to issues like human rights abuses. and i think with the election in germany as well. we see an announcement by, by, in this case, by the greens party that they want to have a more values based for foreign policy. and i think we'll see more of them going forward or a text roberts as a journalist and senior fellow at the atlantic council. thank you very much. thank
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you. one currency, 19 countries, countless opinions on its future. the euro made its debut 2 decades ago this weekend of the monetary union. it's cements, it has led to prosperity, but also an ongoing argument about budgeting, economies and even fairness across europe's diverse economies. ah, a symbol of hope and prosperity for all of europe. smiles and cheers in front of the repeal central bank in frankfort on new year's eve. the night before, 12 countries shopped out their old bank notes for the freshly minted europe. since then, europeans can travel within the eurozone without the hassle of exchanging currencies. companies also profited as trade within the monetary union sharply increased. now on the eve of 2022 more than 340000000 people in 19 e. u countries is to come in currency every day. at its introduction,
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one euro cost $1.00 us dollar and 7 cents in 2008. it reach, it's all time high of almost one us dollar and 60 cents just before the start of the global financial crisis. that was also the 1st real test for the euro. critic said the massive bailout packages needed to save the economies of southern europe were proof that a single currency for economy is as different as germany and greece had been a recipe for disaster. indeed, the crisis put the euro under unprecedented pressure. speculators tried to caching on the looming failure of the common currency in 2012. however, the president of the e. c. b spoke words that would go down in history. the c, b is ready to do whatever it takes to preserve the euro. and believe me, it will be enough. the
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e. c. b was pushing the envelope and had worked the euro survive the financial crisis. to day. a tough new test. the corona pandemic locked downs have placed a heavy burden on the national budgets of the euro countries. in 2020 they took on joined it. for the 1st time ever. critics of the euro say this move makes financially weaker countries a burden on those which stronger economies. many others, however, still see the euro as the best opportunity for the european union countries to grow even closer. or let's go to james sweeney in new york. hello, james. that piece really pointing out the strong role of central banks and safeguarding a currency that something that we're seeing now, again, with a pandemic, both in europe and in the u. s. however, in this case, the central bank seemed to be diverging. the fed as tightening as prices rise, the easy bees as it's holding on what did these diverging policies tells about
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these pandemic economies as we had into the new year. it's funny because this is kind of playing out like a movie trailer, you know, you got 2 different banks, 2 different regions, 2 different approaches, which one is going to reign supreme in that coming year. but when you put all those jokes aside, it's going to be interesting and i must watch in 2022 because both banks and a different approaches really are showing up different to you when us are at handling a possible pandemic exit. it's kind of like a boxing match because in one corner you've got the you christine la, guard emphasizing that. the pandemic is what the, pressing the euro zone threatening growth. and that in order to ensure recovery and exits the e. c. b needs to maintain both flexibility and as well as optionality, while making this a step by step process and that one mass of full exit. well, in the other corner you have in the red, white, and blue trunks. the federal reserve, jerome power, leading the charge being definitive, saying the u. s. will end all of its bond buying by march, accelerate. the time table for interest rate increases. inflation may be at
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a 31 year high, but the us is heading towards strong growth and full employment. and now who's with me? it's so different in terms of their approach total opposites. and the truth is what these different approaches are doing. they're setting the stage for a very choppy 2022 with the fed determine the end as the purchase of dispatch as possible hydrates as soon as possible. well, the e, c, b is more hesitant to ship. so decisively, in that direction, step by step, not a full on rush. all right, james sweeney calling him out from new york. thank you very much. and let's go to some of the other global business stories making headlines. ikea is hiking prices by 9 per cent due to ongoing global constraints on transport. raw materials. the swedish flat pack furniture giant said it tried to avoid the hike by leasing more ships and optimizing logistics. but as supply chain turmoil persists, it is now passing higher production costs on to its customers. new numbers from chinese ride helen giant dd show the firm last $4700000000.00 in the 3rd quarter of
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2021. and that follows the increase scrutiny from chinese regulators that started after it's new york. i p o. the summer talked about that earlier. beijing has targeted numerous tech companies with stricter rules. and what critics are calling it coordinated crackdown and that's it for me. and the dw business team here in berlin for more finest online he toby, dot com slash business. i've seen beardsley, thanks for watching. finally, learning to read at 60 for her entire life. costly immune
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