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Daily news and analysis. We keep you informed and inspired. This is World Today.
China warns staying silent or compromising on terror threat will only embolden bullies to push further. Tensions rise as Pakistan warns of imminent India incursion after Kashmir attack. And Canadian Prime Minister Mark Carney says his country would never yell to the United States as he declared victory in federal elections.
Welcome to Road Today, a news program with a different perspective. I'm Ge'Anna in Beijing. To listen to this episode again or to catch up on previous episodes, you can download our podcast by searching Road Today.
Our top story. China has warned that staying silent or compromising on tariff threats will only embolden bullies to push further. Foreign Minister Wang Yi emphasized the mutually beneficial and complementary nature of global trade at a BRICS foreign ministers' meeting in Brazil. He criticized the United States for serving its own purposes at the expense of international interests.
and going against the international order that Washington has benefited from a great deal. Wang Yi caught on brakes to protect the multilateral trading system and promote free trade. So to discuss this further, let's bring in Professor Qu Qiang, a fellow of the Belt and Road Research Center at Mingzhu University of China. Thanks for joining us, Professor Qu. Thank you.
Professor, Foreign Minister Wang Yi warned that staying silent or compromising on tariff threats would only embolden bullies to escalate their actions. What do you think Wang Yi is trying to convey with this statement and what do you make of the timing? Well, I think Minister Wang Yi representing China has made it sound very loud and clear to show that China will never back off. We'll never kneel down towards all kinds of threat. We will, you know, stand up on our own ground and, you know, wait for whatever...
whatever comes to us. And also, we really suggest that everybody are under the same pressures to try to do the same thing because I think China has this muscle reflection about what's a similar situation coming to it because we have experienced the whole situation back in the Qing Dynasty, which is 120...
years ago when we really been threatened about the western powers of the year columnist and i am very old at that and that yes we backed off but what the situation well he never gets us better any anywhere we anytime we just about call for a knee down with and our head down and they push over the push over in the further again on let until we just lost everything
so this is a very bloody theory as well learn so we will not repeat the same mistake again and also i would like to repeat that uh... you know similar situation also happened to united states as well because the like a you know in a pearl harbor into p_m_ used to be dominated about what you have to do p_m_ imperil is to be dominated by you know the national list and also the popular at the back of the home so
they crazily waged a war towards the United States, a country very, very far away, and they bombed Pearl Harbor. Did the United States stand their heroic people back off and say, okay, let's wait and chill down and talk to Japanese invaders? No. It
United States Army, their military forces, they strongly stand up in a fight against very determinedly. So I think this is the spirit has been for these two countries. So I think for both of us, we will never back off. And also all the other countries, if you do so, probably after 90 days, why Trump has made all this fuss and going through all this kind of experience as ordeals.
He just wanted to say after 90 days, okay, we will stop it by now. No, he won't. Trump is very persistent and very, very stubborn. He has already been doing what he promised when he was in the 40s and the 50s. So he will deliver what he promised us. So there is another round of the impact of well-being here. And don't just be naive.
That's very insightful analysis. Professor Wang Yi also mentioned in this complex international context, BRICS countries must defend the multilateral trade system and promote mutually beneficial integrated development. With global trade protectionism on the rise, what specific practical measures can BRICS take to safeguard the trade interests of both themselves and global South countries?
Well, as I always say, very, very sorry to say that, but currently globalization is facing a recession. And the universal globalization probably is going to fall into what we call desegregated or mosaic globalization. So the whole world will be divided into belts or like the regions. So I think the BRICS countries are probably one of those big BRICS or big regions that we can really count on. So
Politically, I think we can just, you know, cooperate together just to uphold the multilateralism and the cooperation. And I think it's still here. We're trying to provide, you know, leadership and also the contribution towards the world governance, try to provide a fair and, you know, very peaceful environment for the world politics to stand up for the South-South nations. And also economically, I think, you know,
globalization within our own region and also free trade and to build a new free world. And with China and with Brazil as the new free world leaders, this kind of scenario is going to pop out. And also technology and also inclusive development of green energy, you know, this kind of the new areas is also our potential cooperation area because we just don't want to do the –
very old things together, not like before. But we will do, actually, we will do a lot of the new things together. Who says these developing nations or emerging markets can only do the old cooperation and the focusing on labor-intensive industry or resources? No, we're going to focus on AI. We're going to do green energy. We're going to teach each other how to climb up the technology tree and also to develop our
common community with a shared fate and to, you know, a higher ground upon the value chain. So this is what we can do together. So while we welcome all the other countries to join us, the European Union, Australia, even for the United States, you can think for another solution, you know, to get out of the current, you know, craziness. But I think if you don't want to join us, fine. I think we're representing 40% of the world population of
about 35% of the world GDP, we're going to just do fine upon ourselves.
Speaking of innovative path going forward, Wang also called for strengthening global financial governance and reforming the international financial architecture to better reflect changes in the global economic landscape today. What kind of resistance might BRICS face from traditional financial powerhouses during discussions on the, for example, World Bank's equity review and IMF's quota adjustments?
And how can, you know, the BRICS countries effectively respond to that? Well, I think number one obstacle is still the BRICS countries or global South nations are still, you know, comparatively weaker in the economy, smaller size and a competitiveness. So that's a reality we really need to face. And secondly, I think United States still have a very strong weapon about U.S. salary and also its payment system. It's more like a financial nuclear weapon.
I'm not going to lie about it, but they will threaten you. They were going to, okay, if you're going to join China's network, if you're going to gang up together, quote-unquote, you probably will be kicked off the SWIFT system, and also I'm not going to allow you to use U.S. dollar funds.
So fine, this is going to be the reality we're going to face, but this is a pathology. This is a chronic odyssey faced by the global financial payment system and the global trade. We need to solve this kind of problem. It's not going to be now. It's going to be, you know, coding us in the very long run. So we need a parallel payment system, financial service system. For example, like IMF, for example, like the SDR, for example, like the SIPP system, for
from china and we need that to build up of the resilience of the bill that will walk the robot that missed out in our payment and of our trade systems so that we won't we won't be blackmailed we won't be shaped off by squeeze off by the so you know i international financial had money so in the future we have to you know build our own strands you know size of our own trade and try to use our own currency to build this up or call this uh... settlement and the clearing system network
use our own payment system and fintech. And also maybe if we can talk through like five or ten years, we will see a new rising financial horizon on this whole world global trade system. Professor, this gathering marks Indonesia's first participation as an official member in the BRICS foreign ministers' meeting. What opportunities do you foresee this new membership offering BRICS
in advancing peace and security in the future? Well, I think Indonesia is a really important partner not only for the Brexit country but also for the ASEAN arrangement, also the RCEP. So it's a country with probably the largest territory among all the ASEAN nations and also it has more than 100 million population and it's a very, very fast-growing country
emerging economy and also it's an international political importance is a minute showing up really really quickly i think the far eastern asia is the last our resort to for the global certainty but the global peace and a global supply chain now with china with uh... you know i p_n_a_ nations especially malaysia singapore indonesia vietnam and all these important nations and whole region has already been on the same page of their rate of cooperated with each other
They won't be disrupted by any international political coercion. And I think these Far Eastern certainties, this paradise, will be stabilized. It will show the whole world this piece of land will be peaceful. You are free to do trading here. You can still buy things and sell things in the grand market. So certainty and also the future potential will be guaranteed in here. And it will further protect the world's stability markets.
and also provide lots of certainty for the global supply chain, for example, to urge, to curb the inflation and also provide competitive products and services for the rest of the world.
Thanks, Professor, for your insight of analysis. That was Professor Chu Qiang, a fellow of the Belt and Road Research Center at Minzu University of China. Coming up, tensions rise as Pakistan warns of imminent Indian incursion after Kashmir attack. This is World Today. Stay with us. Hello, my name is Alessandro Golombievski Teixeira. I'm a professor of public policy management at Tsinghua University in Beijing.
I am a great listener of The Wall Today. In my opinion, The Wall Today is one of the best China radio programs. In The Wall Today we can get the best news and analysis in what is happening now in the world.
So please come to join us. Welcome back to Road Today. Tensions are flaring between nuclear-armed neighbors India and Pakistan following a deadly militant attack on tourists in India-controlled Kashmir. Pakistan's defense minister warns that a military incursion by India appears imminent.
saying troops have been reinforced along the border. Islamabad has rejected New Delhi's accusation and is calling for an independent investigation into the attack. To delve into this issue, let's bring in our guest Dr. Rong Ying, Chair Professor with the School of International Studies at Sichuan University. Thanks for joining us, Professor. Thank you very much for having me.
Professor, the latest terrorist attack has reignited tensions between India and Pakistan. From a geopolitical and historical perspective, the Kashmir dispute has long been a flashpoint between the two nations. So could you please walk us through the complex historical roots of this conflict? Why does it so often lead to repeated cycles of confrontation following such incidents?
Right. I think the Kashmir dispute certainly has a long history, very much related to the very day when India and Pakistan were partitioned or divided into two sort of nation or nation-state. The idea was, of course, when India and Pakistan was partitioned, the partition was based on the religion.
religious sort of identity. In other words, the majority of Muslims would have become one state that is today's Pakistan. The other is, I mean, the Hindu-dominated sort of nation becomes India. Unfortunately, I think in addition to the so-called British Raj, British India, there are other over 540-something princely states.
Again, primarily, I mean, clearly divided. It can be divided according to their religious sort of identity. But then there are a few which, I mean, the situation becomes very complicated. Kashmir, Jammu and Kashmir was one of them. Just because I think if you look at the residents, look at the majority, very,
Muslims, while the rulers of that princess state were the Hindus. So it became a question that which part of the newly born nation state, India or Pakistan, it should have been. So that was the dispute. But because of that, ever since the partition, India and Pakistan fought four wars and numerous sort of conflict and clashes, and very much related to the
to the geopolitics, the history, but that graduated because India controlled part of Kashmir has, because of the poor governance, because of the grievances, political grievances, development problems, has given birth to the kind of radical trend, radical thinking very much related to the terrorism. And that is, in other words, becomes the dispute has now
terrorist or terrorist radical related sort of aspect. And whenever the dispute, I mean the incident, attacks took place, it would provoke that bad feeling. But the most importantly to related, it would provoke
a kind of a two nation state because of their history, because of their domestic politics turning into a kind of a conflict. And that had become very much true in the context when in 1998,
the two countries has demonstrated their nuclear capability by conducting nuclear testing. So India-Pakistan tension arising from history, arriving at the dispute of Kashmir and the
Whenever there's an incident like we had had last week, and there arose a lot of bad feelings, a lot of concerns, and the most important tensions between the two countries, that could easily raise a concern that these conflicts, the clashes, could even lead to a nuclear sort of conflict.
Thank you for that detailed analysis. We've also seen Pakistan Defense Minister Asif warning of an imminent military incursion by India. Pakistan has reportedly reinforced its troops. So in your view, beyond the long-standing hostilities between the two nations, what real-time factors might have led Minister Asif to conclude that India is preparing to launch an attack?
That's a great question. I think the Kashmir dispute that we've discussed that very much related to the history, the territory, the religious sort of hostilities. But
And it also, I think, in recent years has lead to a kind of a doctrine, a military doctrine, that from the viewpoint of India, how they can manage or they can stop the incident like that. And that is becoming even more true in the context where India are now militarily, economically, and even in terms of comprehensive national power.
much way ahead of Pakistan. So for India, it has become not only territorial, historical, religious, this becomes a national pride, particularly in the context of when India is, I mean, people are talking about India rise or India strongly feel that it's a major country and cannot sort of accept the fact that it was not able to address that kind of issue.
And from the Pakistan perspective, this is very much related to its sovereignty, territorial integrity, religious feelings. But more importantly, I think as the gap comprehensive national sort of power grows, it becomes an existential issue. So when India threats, I mean, retaliate or threat to
kind of military response against, in VW, the terrorist attacks like we had had, then Pakistan would always responded in that it would have to, in a way that by resorting all the available sort of means, which in this case, I think Pakistan is relating to its nuclear probabilities. So all in all, we have disputes, long history, but now we have a very,
real danger that it could lead to not only rising tension, but also possibly the kind of a real sort of a threat of a nuclear clash, nuclear conflict.
Indeed, the situation remains highly volatile. We've also seen India unilaterally releasing water from a dam without prior notice, causing a sharp rise in water levels downstream in Pakistani areas and even triggering flooding in some regions. The move, Pakistan claims, violate the Indus Waters Treaty. So how do you view this tactic of weaponizing water resources? And what deeper implications might it have for bilateral ties and regional security?
I think it's very unfortunate and also unprecedented for India, being a bigger country, being a country that aspires to play a bigger role at the regional, at the global power,
to expand by adopting, I mean, so-called water warfare. The Indian Water Treaty signed into bilateral treaty for water dispute between the two countries was done, I mean, about 1960s with support of World Bank. And despite the ups and downs and even wars, conflict between two sides, it's never been
So this is the first and unprecedented move, and it just brings
bring in more complication, more complicated factor, the water issues in the park sort of attention. And unfortunately again, I think Pakistan has made it very clear and it attempts that by Indian side, excuse me, on the water issues would be an act of
So again, Pakistan is trying to send a strong message that this is an issue, this is the red line, this is an issue Pakistan would not like to take easily if India sincerely or seriously taking about making, I mean, the water as a weaponization of the water issue.
Professor, the United Nations has called for restraint, and China has also urged both sides to resolve differences through dialogue. Do you think international mediation could help de-escalate the current crisis? And what might be the key breakthrough needed to bring India and Pakistan back to the negotiating table?
Well, I think whenever there's a kind of a tension between the two sides, I'm talking about even the three wars, the international committee has always tried to intervene, to help. Even though I think between India and Pakistan, there's a kind of understanding of so-called bilateralism, that is to say, deal with the disputes in a bilateral way or multilateral or internationalization. In this case, very much I think the position of Pakistan.
And all in all, the international community, the international mediation has always played a very important role in helping defusing, de-escalating the tension. But I'm just concerned that given the risk of miscalculations and the tension and other complicating factors that we'll talk about, whether this time will be, I mean, the two countries and the region of the world at large will
be lucky enough that we'll be able to find a way out. But I think the key to this is that the international community, UN in particular, the Senate Secretary General expressed that calling for restraint. China as a neighbor, good and close neighbor of the two countries has also called for restraint. And China, of course, has
also in responding to the ideas of joint sort of investigation that could be our way. There are other countries, I think like Iran and others also offer to help. But all in all, I think it would take India and Pakistan to come to the terms or to the reality where there's no winner for, I mean, conflict.
whatever sort of means is and whatever the advantages military, economic and international would be having. In that case, it's India. So the real answer is negotiations, talks. But at this moment, I think joint investment accepted by India-Pakistan, I mean, in which kind of format would we have to work out, supporting international community could be the first step. Let us hope that it would take place soon.
That was Dr. Rong Ying, Chair Professor with the School of International Studies at Sichuan University. You're listening to World Today. We'll be back. Whether it's about your education, the home you live in, or the items you buy, your money has a story to tell. Because every business story is a human story. Global Business.
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You've been listening to Road Today with Mika Anna in Beijing. Prime Minister Mark Carney has declared victory in Canada's federal election. He promised to fight against Washington's trade war and threats of annexation. Conservative leader Pierre Polyev has conceded defeat and said his party will hold the government to account. So for more on this story, my colleague Zhao Ying joins us in the studio. Welcome, Zhao. Thank
Thanks for having me. To start off, could you briefly introduce Mark Carney and what do you think contributed to his victory in this recent election?
Well, McCartney was a former central banker and his path to power has been quite swift because he only entered politics in January of this year after spending decades in international finance and economic policy. And most Canadians knew him as the former governor of the Bank of Canada during the 2008 financial crisis.
and later as the head of the Bank of England during the turmoil of Brexit. And he also worked at Goldman Sachs and held senior roles in global institutions. So he is kind of a technocrat, someone with deep policy expertise, but until recently, no experience in electoral politics. So how did he win? Simply put, it is because of Donald Trump, because he's
This election campaign has become a referendum on Canada's relationship with the United States, especially with Donald Trump, who in recent months imposed steep tariffs on Canadian goods, threatened economic retaliation, and even folded the idea of annexing Canada as the 51st state.
And that kind of rhetoric triggered a wave of patriotic backlash. And Carney positioned himself as the only candidate with the credibility, expertise and calm demeanor to stand up to Donald Trump. And his campaign message was quite clear. Canada is under pressure and it needs steady hands at the wheel. He promised to rebuild the economy, invest in domestic manufacturing and reduce reliance on the U.S. So I think his combination of economic competence and his patriotism
patriotic defiance turned out to be what many Canadians were looking for. Then from perspective of Conservative Party, Pierre Poliev had been the frontrunner for quite a while. What do you think went wrong for him?
Well, his campaign didn't so much collapse overnight as it was overtaken by a dramatic shift in the political mood in Canada. And again, this shift was triggered not by domestic issues alone, but Donald Trump's aggressive rhetoric and policy towards Canada.
because he has built his campaign around frustration with the liberal government, the high inflation, housing unaffordability, and a sense of economic stagnation. And he championed smaller governments, less regulation, and a break from what he called woke ideology. And that phrase, woke ideology, is often used by conservatives to refer to
the progressive stances on social and cultural issues like gender identity, diversity and inclusion policies, and indigenous reconciliation. And his platform promised to limit funding for initiatives he considered overly ideological, defund the national broadcaster, and challenge what he described as politically correct or activist agendas in public institutions.
And for a time, this message resonated with many Canadians because they were frustrated with the status quo under Trudeau. But the tone of the election changed when President Donald Trump escalated tensions with Canada. And suddenly the ballot question shifted. Instead of asking who can fix the economy, many voters were now asking who can defend Canada. And that's where Polyev struggled because his heartline rhetoric
began to sound very risky, and his refusal to clearly distance himself from Trump's worldview even as Trump attacked Canada's sovereignty made some voters quite nervous because the pre-election polling showed that the centuries and undecided voters were turned off by the
his tone and style, especially when contrasted with the calm, steady image projected by the liberal leader Mark Carney, because as we know, Carney framed the election as a fight for Canadian independence and dignity. And that resonated deeply in a moment when many Canadians felt threatened, not by the eternal cultural wars, but by external pressure from the US. So in short, it's the same populist
playbook that once gave the conservative an edge ended up alienating the very voters that he needed to win. Now that Mark Carney is to continue the post as prime minister, what do you think will be his main focus moving forward?
Well, he has several priorities. First of all, of course, is standing up to the United States and defending Canadian sovereignty because Carney has made it very clear the old relationship with the U.S. is over. He promised to push back hard on any issues
new tariffs from a second Trump administration, including keeping retaliatory tariffs in place until the U.S. backs down. He's also looking to expand Canada's trade ties with other countries to reduce reliance on the American economy. And second is addressing the affordability and restoring economic stability of Canada. Carney is promising targeted tax relief
for the middle class, including eliminating the federal state tax on new homes under $1 million for first-time buyers, phasing out the federal carbon tax on consumers, and balancing the federal budget in four or five years without cutting essential services. So his goal is to ease cost of living pressures without tipping the economy into recession.
And thirdly is tackling the housing crisis because it plans to launch the National Housing Initiative by creating a new corporation called Build Canada Homes, which could fast track construction of affordable housing. And this program actually takes inspiration from post-war public housing campaigns.
And first, he wants to strengthen Canadian manufacturing because he's committed $2 billion to boost industrial production, especially in auto manufacturing, as part of a broader strategy to protect domestic jobs and reduce dependence on foreign supply chains. And besides, he also pledged to meet NATO's 2% defense spending target by 2030. And that includes new investment in submarines, icebreakers, and surveillance in the Arctic.
Carney, as you mentioned, Carney said that the old relationship with the United States is over. What kind of leverage does Canada have when it comes to dealing with Washington's tariff threats today? Well, as we know, for decades, Canada and the U.S. have been close allies. They have open trade. They have shared defense and constant coordination on everything from energy to border security. And the
That's the relationship that Carney says is now broken, not by Canada, but by U.S.'s actions. And Carney is preparing to move away from this automatic alignment with the U.S. and instead treat America like any other conservative global power that Canada must negotiate with, push back against, and occasionally confront.
And as for the leverage, Canada does have some important tools. Like for instance, under Carney, Canada has imposed tariffs on American goods, including steel, aluminum and cars in direct response to Trump's actions. And this hits American producers and creates pressure from within the U.S., especially in border states that rely on trade with Canada.
And second, he has already begun deepening ties with Europe and Asia to reduce economic dependence on the U.S.,
And also, the U.S. still relies on Canadian minerals, energy, and water. And Carney has hinted that Canada will be more strategic in how it manages these exports. So, I mean, Canada does have a leverage. Very briefly, according to reports, the election seems to have revealed some serious regional and generational divides in Canada. How do you think these divisions could create challenges for Carney as he moves forward?
Yes, it is a significant challenge for Mark Kearney because in those oil-rich and gas-rich provinces like Alberta, the conservatives dominated almost entirely. And many in these provinces feel their resource-rich economies are overlooked by federal policymakers
And some had even warned of a national unity crisis if the liberals were reelected. And as you said, apart from the regional device, there are also generational device. And the polling showed that among 18 to 34 years old, conservatives outpaced liberals by more than 10 points.
So and actually Carney acknowledged that division in his victory speech, and he said he intends to govern for all Canadians. But of course, bridging that divide will require more than rhetoric. Thanks, Jiaying, for your insightful analysis. Coming up, China's service trade saw strong growth in the first quarter and 8.7% increase from a year earlier. This is Road Today. We'll be back.
Hi, I'm Einer Tangen, a political and economic analyst and senior fellow at the independent Taiher Institute. World Today is news without the hype and business commentary that is informed and up to date, presenting the facts and asking incisive questions. So join us if you are someone who needs to know what is happening in China as it is happening.
Now turning to China's economic performance in the service sector, China's service trade has seen strong growth. In the first quarter of the year, it totaled nearly 2 trillion yuan or around 270 billion U.S. dollars. That's nearly 9% increase from a year earlier. Exports rose over 12% to more than 110 billion dollars, while imports climbed above 6% to over 150 billion.
Travel services led the surge, jumping over 20% to about $80 billion. Exports in that sector almost doubled, while imports rose nearly 15%. To unpack what's driving this momentum in China's services trade and what it signals for a broader economic recovery,
I'm joined by Dr. Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation. First, let's start with the bigger picture here. We are seeing nearly 9% growth in China's service trade. What do you think is fueling this uptick, especially as the global economy remains somewhat fragile?
Well, we know that China is a manufacturing country, definitely, but we are trying to improve the abilities in the service sectors. So if you're looking at many of these sectors, and we know that in the WTO, we have 12 main sectors of the services and also almost 160 sectors
as a subsectors. So when China entered WTO in the year of 2001, we have made some commitments on almost 100 subsectors. And in the previous about 20 years, we have continually opened our market of the service. If you're looking at, you know, the RCEP, the regional
comprehensive economic partnership, we have opened even 30 more sub-sectors. So this is giving us more strength in developing better service sectors. So that is something to do with enterprises. They are able to provide better service cross-borderly while
For another area, I would say for the import also, we are trying to improve the market access and also welcome the investors from other countries. Service trade is so different compared with trading goods because they are depending on the abilities of the movement of the people, the movement of the technology, and also a lot of intellectual properties.
In the past several years, we have seen that many of the Chinese cities are opening more in these areas like the free trade zones in Shanghai and also other cities. They are having better abilities to getting a better position in the service trade. Then turning to travel services, we've seen an especially dramatic surge. Exports grew nearly 98%. What's behind this sharp increase?
Well, for the export of the tribal, it means that more foreign people come here to China. So I think that there are several factors. First of all, we have used the unilaterally opening up of the visa-free policies to so many other countries, including many of them from European countries. And that provided so many opportunities and facilitation for the people to come here.
to China to enjoy Chinese beautiful sceneries and also to interact with the Chinese people. And the second, we think that there are so many foreign tourists that come here to China and they have brought their own experiences to their friends and the communities, which have so many interesting aspects to other people who have
not too much knowledge about China. And third, I would say that Chinese local governments are really trying to attract the tourists, including the foreign tourists. So they're improving the infrastructure and trying to have better accommodations and also better food. I would say all these things combined have encouraged so many foreign people to come here to China to enjoy the very interesting culture here in China.
Dr. Zhou, let's shift folks to knowledge-intensive services. We see steady growth in this sector as well, with a 2.6% increase overall. How important are these sectors for China's long-term economic strategy, especially in areas like research and development and digital trade?
Well, you know, for China, many of the Chinese enterprises are trying to improve their position in the global value chain. But we are not trying to do that by just taking something from other countries. I think that the basic principle is that we have to do everything based on the market demand and market rules.
So for the research and development, I think that it is one of the priorities for many Chinese companies. They want to improve that. In the past decades, we have benefited a lot by the cooperation with foreign direct investment from other countries. They have some investment here like the Microsoft. They have invested here and do some kind of research institute. Well, it is also true that they benefit a lot also because they have better abilities to
to get used to Chinese market demands and also increase their ability to meet the demand globally. So I think that research and development is one of our priorities as we can find from the new development concept. The first of all is innovation. We are going to provide a better opportunity for innovation. The innovations are not just coming from Chinese people. If you are looking at the example of Huawei, they have attracted
So many foreign scientists come here, mathematicians, physicists, and also in different areas. I think that all these people enjoyed to work here because they are having a very good platform. And the Chinese government are making very important promises that we are going to provide them with even better future. So the development of the research and development, like research and development efforts,
fields, as you mentioned, the knowledge intensive areas are really keen for us to catch up with the leading countries and the leading enterprises. Well, in some fields, we are going to lead the world trend and including the artificial intelligence or other kind of technology. We are hoping that they can have a better performance here in China.
Then from a macro perspective, how will the strong performance of the service trade in the first quarter impact China's overall economic growth this year and also its employment and ongoing industrial restructuring?
Well, I have to say that China is still a manufacturing-dominated country. So the main strengths are coming from the manufacturing. But the service industries are really important because they are not only trying to give more trade volume, but also trying to integrate the manufacturing and also to give better support for the development of the trading goods.
So the service trade are also one of the areas that we are going to open to the foreign companies. If you look at the fact that when we are putting some practices in the free trade zones here in China, the most important area and sectors are based on the service. So the services still are developing. I mean, it's expanding.
expanding its range and arena. We believe that the cooperation with trade services and the trading goods can really benefit both of the domestic market and the foreign market. I think that is one of the very important areas that we are allowing the different cities in China to do their own experiments.
But these experiments are based on their resources, their industries, and their demands for better development. So these experiences can give us more lessons or experiences to copy to other areas, which is definitely one of our targets to be better.
to support the development of the multilateral systems and the regional trade corporations. Then looking ahead, what risks or headwinds might impact the services trade in the coming quarters in China? And how can China mitigate those risks?
Well, it's very difficult for us to get to the target smoothly because we are facing many protectors from the United States, from other countries. I think that is really a challenge we have to face. And the second is that I think there are so many new edge of the development, like the artificial intelligence and combined with different technology, which are having so many requirements
by us to cooperate with our partners. And the third one is about how can we face the uncertainty of the world trade and can we do more to improve the resilience? I hope that it would be, you know, be done by the cooperation with our trading partners also. That was Dr. Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation.
cooperation. Coming up, global car makers flock to Shanghai, eyeing deeper integration in China. This is Rail Today. Stay tuned.
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The Shanghai Auto Show is revving up exchanges between automakers on the latest technological innovations and the industry's challenges amid a global trade war. German automaker BMW announced that it plans to start integrating artificial intelligence from Chinese startup DeepSeek in its new models in China later this year. Chinese automaker Zeker debuted its first hybrid model with 800-watt fast charging technology.
Multinational carmakers and industry suppliers are showcasing their products and technologies and reaffirming their confidence and deep reliance on Chinese market. Despite rising uncertainties in the global market, many are stepping up investment and accelerating integration into China's innovation ecosystem. With more on this, my colleague Zhao Yang spoke with Yan Liang, a professor of economics at Willamette University.
So Yan, first tell us, what are the something new at this year's Shanghai Auto Show? Well, I think this Shanghai Auto Show has showcased really not just a collection of new cars, but really kind of a window into the future of automotive world. I think there are just so many exciting cars and showcasing so many exciting futuristic technologies and all the cooperative opportunities.
between different automotive companies and tech companies. I think it's just amazing to see from all these electric wagon to Zekers luxury SUVs to Mazdas, very sleek new EVs. I think it just shows that China's market, the demand, it's driving all the innovations at all the different levels, including these cars' performances, their designs,
the various technologies and also just the luxurious design and experiences, I think it's just really festive of all these different technologies, how it could drive the future automobile industry.
And as you mentioned, there is huge presence of electric and intelligent vehicles. Over 80% of the models displayed on the auto show is either EVs or hybrids. So what trend does it tell us about the auto industry right now?
Well, I think as you just mentioned, I think one is these energy efficiency. You know, the future, so renewable energies are going to be the main driving sort of fuels for these cars. And as you mentioned that so many of these cars are electric or hybrid cars,
and they feature the really cutting edge technologies. For example, like the Zekers, their 9X SUV, they're able to have a 236 miles on all electric range. And so I think that is really amazing when it just showcase how much the battery technology has improved.
But in addition to that, you mentioned the sort of intelligence of these cars. And I think that is also very important because a lot of these cars are able to integrate AI features in it. And we see, you know, BMW is teaming up with Alibaba,
and Mercedes-Benz is teaming up with ByteDance. They're all integrating, you know, also DeepSeek in their cars. And so I think going forward, these cars are not going to be clean, but they're also going to be very intelligent and provide very good driving experiences and also enhanced safety features, I think, for all the drivers. So I think this is really the
the trend. And I think China is now really leading the way, both in terms of new energy cars, but also in terms of all these intelligent features, in terms of design, in terms of software. And I think this is just showcasing that China's technologies and its energy development are really helping drive a very good ecosystem when it comes to the automotive industry. And despite
the tariffs on the auto imports is becoming a global issue, the cooperation between Chinese and foreign car makers and even suppliers are getting even stronger. So how do you explain that?
Well, you're right. I think despite all these tariff threats, we're seeing over 1,000 companies from 26 countries and regions are here at the Shanghai Auto Show. And I think that just means two things. One is that global trade is really the trend. Companies
across borders, want to cooperate with each other. They want to learn from each other. They want to cooperate in technologies and also in their productions, because when it comes to trade, it's not a zero-sum game. So countries and companies can cooperate so they can divide up the markets and develop their own sort of niche markets.
and they're able to accomplish the economies of a scale, right? So if all cars, if they divide a market to such a small segment, if they only serve the domestic market, their scale of economy is not going to be large enough
for them to be able to reap that efficiency gain. So I think that is very important that companies understand by cooperating each other, they can achieve the common scale, they can expand the market beyond their national borders. And so that way, you know, TRI can be a win-win
instead of a zero-sum game. And second, I think it really just showcased that for each individual company, they are limited in terms of the R&D resources, in terms of the technological capacity, in terms of their talents. But by drawing force together,
as I mentioned earlier, some of these traditional car makers are now teaming up with some of the Chinese AI companies. And so that way you can really build a very, you know, endogenous, I would say, a growth model where they each can contribute together to this market, right? The automakers know how to make cars,
And the AI companies know how to make the car smarter. So I think this is a very good case, excellent example of this kind of technological cooperation can really, I would say, enlarge the games for both the participants.
And so I think that is really key to understand that trade and cooperation are the main trend of the market, despite all these tariff threat. And I think also very interestingly, you see a lot of European cars, car makers. They're coming to China. They both build up their local supply chains. They're in China for China. So they see China as a big potential market and a technological partner. And I think that just define all these sort of threat from the United States.
that try to work with other countries to isolate China. I think for other countries, they see China as opportunity, not a threat. And China is the world's largest auto exporter. So with the U.S. tariff policy or the trade tension, where do you think will be the main export markets for China's EVs next?
Well, I think that's an excellent question. I think, first of all, China's EV does not have a very large presence in the United States. In other words, China doesn't really depend on the US market for its EV. China's EV export to the US is probably only about 1% of its total exports of EVs. And it's not even just, it's not finished cars. It's mostly components and parts.
So in that case, China really doesn't rely on the U.S. market for its EV sales. And European markets, as I mentioned earlier, there's a lot of cooperation. There are European cars that are selling in China, but there are also Chinese cars. BYD, for example, are selling very well in European markets.
And the other one I think very important is this vast and very fast-growing global sales markets. As we know that the Chinese EV industry is really a very comprehensive, a very tiered system. In other words, there are, like I mentioned, these very high-end, luxurious EVs, but they also produce a lot of low-end, very price-competitive kinds of cars that could fit the size, fit the budget requirements
of developing countries. So I think as the whole world is moving towards green transition, trying to make more energy efficient and more renewable energy based cars, I think China can find a lot of markets in the global south, but also in more advanced countries like Japan, Europe, and South Korea and others. I think there's still a very large market domestically as well. So let's not forget a lot of these
EVs are sold domestically. About 85% of these cars still has very large market demand within China and also outside of China. So the US is really not the important, you know, export destination in this case. Mm.
And we've seen the fierce competition in the auto industry today, but competition is good for developing innovations and innovations are very positive for the customers. So, what do you think about the outlook for global auto industry? Do you think the future transportation model will be totally changed with the development of the EV self-driving and artificial intelligence?
Right. I believe this is the trend. Like I said, the new energy vehicles and also intelligent aided or even self-driving vehicles. These are the trend going forward for the transportation industry. And China is leading the way, coupled with European partners and some other countries.
countries like South Korea and Japan. But the United States stick to the gas-gazable cars, and they're not really making inroad in these kinds of energy transition, and the EV adoption rate is falling behind. And so I think it's very likely that we're gonna see the bifurcation in the future automotive world. And I think, again, China's model is definitely, I would say, a future trend, where the United States is looking to the past.
Now, I would also say that with this energy, especially now with the battery technologies, it's going to, like you said, bring down the cost. And with the competition, it's going to drive more innovations. And so all of these would generate benefits for the consumers, not only in terms of affordable prices, but more importantly, I think it's improved quality and safety.
of these vehicles. So I think this is why it's important that companies continue to cooperate and also compete to drive the innovations, to continue to produce good cars, good quality, low-priced cars, or relatively priced competitive cars for the consumers.
That was Yan Liang, a professor of economics at Willamette University. That's all the time for this edition of Road Today. I'm Ge'anna in Beijing. Thank you so much for listening. Bye for now.