How U.S. efforts to shut out Chinese chips spark its own downfall?
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Chinese President Xi Jinping underscores strong confidence in high-quality development during his Henan inspection tour. Beijing criticizes Washington's attempt to ban Chinese chips. And Japan signals no rush for a trade deal with the United States. Welcome to Road Today, a news program with a different perspective. I'm Ge'enna in Beijing. To listen to this episode again or to catch up on previous episodes, you can download our podcast by searching Road Today.

Let's begin today's show with President Xi Jinping's recent inspection tour of Henan Province, a trip that emphasized high-quality development and revitalization of China's central region. During the tour, President Xi called for strengthening the province's manufacturing sector as a key driver of Chinese modernization. He also visited historical and cultural landmarks and held discussions with local officials.

So to help us unpack the significance of this visit, I'm joined by Dr. Yao Shujie, Chang Kong Professor of Economics at Chongqing University. Professor, President Xi has constantly underscored the importance of Henan's development, having made multiple inspection tours to the province. How should we interpret the timing and strategic significance of this latest visit?

Yes, I think next year is the 15th annual plan for the country. So, the presidency is paying significant attention to how the five-year plan could be drawn. So, he has a very intensive visiting tour across the country. Certainly, Henan province has a number of significance.

Partly and not only because it has the largest population among the Chinese regions and provinces, also it has a very balanced industrial structure, agriculture, manufacturing and services.

And also the location along the Yellow River Ranch, which is the Yellow River Ecology System, is one of the most important locations for China to promote regional economic growth and also improve the living standard and living environment of the public.

So the visit to Henan has signified the importance of the ASEAN and the attention by President Xi Jinping.

I think he not only pays a visit to the manufacturing base in Luoyang city, but also bearing in mind that he is also very interested in agricultural security, food security for China, which is one of the most important priorities for the central government. Another significance is that

Because Henan Province is situated in the middle of China, which is in between the coastal area and the western area, and the absurgence of the middle China region is certainly a very strategic importance for the national, regional economy coordinated development.

So this logic, I think, sends a very strong signal not only to Henan province itself but also to the rest of the country that he himself and also the central government is very interested in promoting regional balanced economic development, particularly in the most populous province such as Henan province.

Professor, indeed, as you said, Henan has long been known as a key agricultural base, but today it's emerging as a modern industrial hub because President Xi's stop at Luoyang Bearing Group, a Lexi factory, now transformed into an advanced manufacturing firm, highlighted this shift. So what does the transformation of Luoyang Bearing Group say about China's approach to upgrading its manufacturing base?

In terms of the modernization process of the Chinese economy, it certainly is featured with two major factors. One is the upgrading and also the quality improvement of the traditional industries and manufacturing. The second is also the new productive forces such as the digital technology and also the Internet of Things.

Now, Luoyang Bearing Group is a very interesting area for attention because Luoyang Bearing Group in the 1950s is one of the heavy manufacturing industry producing all kinds of bearing for production, industrial equipment and also the transportation as well as train, truck, as well as the airplane.

Now, as the Chinese economy is deepening and the quality is improving, diversification of production only relies on the transformation of the traditional industry, such as the case of Bering Group in Luoyang.

And Luoyang is transforming from the traditional manufacturing to one which now has been heavily diversified into all kinds of key areas that are desperately needed for the Chinese modern industry. And it is also integrated into automation, digital control and AI. This makes Luoyang, the old factory, become very vibrant to meet the needs of the modern industrialization process.

So paying attention to the Loyal Valiant Group is very important to reflect President Xi Jinping's emphasis on the so-called new productive forces to drive the socialist modernization.

Professor, as you just touched upon earlier, we are also witnessing a larger structural transition with manufacturing activities gradually relocating from China's coast to its interior. Henan with its transportation links and labor pool is clearly

is clearly a beneficiary. So how does the rise of Henan and the central region more broadly fit into China's coordinated regional development strategy today? And could this be a sign of a more balanced national economic layout in the years ahead? Yes, I think we just give some examples to start with. For example, in the end of last century and the early of this century before the world financial crisis,

Chinese manufacturing hubs are basically located in the city along the coastal area. Those factories, they are largely the so-called export processing.

labor intensive, labor processing, relatively low value added for the coastal cities. But as coastal cities become more innovative and also the industrial structure has been transforming from the lower and middle rank to the upper rank of the industrial system,

part of this manufacturing base has to be transferred from the coastal area to the rest of the country, including central China. And where this fairly labor-intensive industry goes, I think certainly they go to

henan because where as i mentioned is the most populous province in china certainly it have an abundant supply of labor particularly in jinzhou we have we used to have the foxconn and also the

manufacturing of chips and automobile and other things, which are traditionally one of the key industrial processes in the coastal area. And now, nowadays, it becomes a prominent presence in Zhengzhou and also the rest of the Henan province.

Now, certainly, this is the natural transformation process. This is certainly a natural coordinating regional balance growth. The growth momentum goes from the coastal area to the central and the western area, and it reduces productivity gap.

between the coastal area and the inland area. And it also reduces the income inequality to help countries' economic conversions so that all the production factories across the country can be invigorated to a higher level. And this is certainly a process. Henan Province is a very significant example for this kind of industrial transformation and also into regional balances.

Henan is also becoming a symbol of China's domestic circulation and international connectivity. Coups from Europe and South America now flow through Zhengzhou within hours.

Given Henan's growing logistic capabilities and foreign investment attraction, what role can it play in China's dual circulation strategy, especially as the country faces external uncertainties today? Yes, I mean, with the China-Europe railway and also with the China-Western gateway to the sea and also the Southeast Asian country market and the rest of the world,

The transportation system within China has been largely promoted because of the highway system, because of the high-speed rail system, and also air transport in this case. Now, because Henan Province is situated right in the center of the country, so everywhere you go to the Chinese domestic market, there is nowadays the Taming,

not only just the distance has been shortened because of the transportation route, but also the speed has been increased, so the transportation timing is increasing. So the compression effect on the space as well as on the time enables

you know, Henan to be the hub of the domestic, you know, circulation as well as connected to the rest of the world. So the so-called outside circulation. Now, the purpose of the dual circulation is to promote, unify domestic market, not only for the merchant product, but also for the production, you know, factors, the intermediate, you know, component and also labor.

Because the transportation system has been improved, because the efficiency has been improved, that enables Henan to be more and more integrated not only with the rest of the country but also become a hub for international trade. So this is a partly reflected aggregate development of China itself. Henan province is just a reflection of what the rest of China is actually doing.

Professor, one last question. President Xi also visited the White Horse Temple and Longmen Grottoes. We see that many cultural attractions, including those two, have begun to use scientific and technological support. So how do digital tools like 3D restoration change how China shares its ancient heritage with the world?

Yes, I mean, traditionally the White Horse Temple and also the other tourist spot area, they only demonstrated the cultural heritage. Nowadays with the digital economy, with the digital technology, all this cultural heritage could be digitalized and they can see in the computer screen or also in the mobile phone and so on and so forth.

So they enable tourists not only from China but from the rest of the world. People can see from the mobile phone or also from the TV, video and so on, to digitalize directly seeing what is the most beautiful spot in China. And Henan Province used to be the origin of the Chinese civilization.

So certainly, including the White Horse Temple, these are the kinds of areas that need to be shown off to the rest of the world to attract tourists. Now, why tourism nowadays has become so popular is purely due to the upgrading of people's living standards.

more and more people are able, including mostly the middle income class, after meeting the full and other necessity, they have some spare money to go out. So where to go out?

and how to find out the best place and how to find out the quickest place to visit. I think the digital technology could certainly help the tourists to identify quickly where they can go and spend the money and the time to have leisure to see the most beautiful places, not only in other parts of the country, but in particular in Henan in this case.

Thank you, Professor, for those valuable insights. That was Dr. Yao Shujie, Chang Kong Professor of Economics at Chongqing University. Coming up, Beijing criticizes Washington's attempt to ban Chinese chips. This is Road 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 World Today. In my opinion, The World Today is one of the best China radio programs. In The World 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. Now let's shift to a major disruption in the global tech landscape as U.S. attempts to impose a global ban on advanced Chinese computing chips. China has issued a sharp rebuke condemning the U.S. action as a blatant act of unilateral bullying and protectionism, warning that it undermines global semiconductor supply chains and the shared interest of global tech innovation.

At the same time, the CEO of U.S. chip giant NVIDIA, Jensen Huang, has again publicly condemned the policy as a failure. He said Washington's export restrictions have backfired and cost American businesses billions while failing to halt China's tech progress. So to unpack these developments, I'm joined by Andy Mock, tech analyst and a senior research fellow at the Center for China and Globalization. Thanks for joining us, Andy.

My pleasure as always. Andy, let's start by looking at the bigger picture of this escalating tech oppression from the United States against China. From your perspective, what's driving the United States increasingly aggressive cheap policy towards China? Is this more about national security or economic supremacy? Well, I think the way the U.S. sees it is national security and economic security are related.

And from a more traditional national security perspective, the US relies not on its enormous army. It does not have numerically the largest armed forces in the world. So what it has to rely on is advanced technology. So whenever it sees any country closing the gap, whether that was Japan or today China,

It feels threatened. So it feels it must retaliate or somehow try to slow down or stop the rise of a potential peer competitors. One of the terms that has been used. I think from an economic perspective as well, as we all know,

Technology leaders often are able to charge premium prices as well. So this is also important. But I think the challenge here is that just if we look at these macroeconomic drivers, China with a much larger population, 1.4 billion people, but here's where the people really matter. The number of scientists, STEM graduates, science, technology, engineering, and mathematics graduates

are a multiple. China graduates a multiple of these students a year that the United States does. So I think it's very, very difficult to stop or even slow down China. So in this sense, I think the U.S. is fighting a losing battle as it's becoming increasingly clear.

Andy, the U.S. now is attempting to enforce a global ban on the use of advanced Chinese computing chips. How feasible is such an attempt in practice? And why does China argue that this move could deprive other countries of their legitimate right to develop advanced computing and AI industries? Well, that's absolutely right. So I think that, first of all, this is...

A last ditch desperate attempt by the U.S. that I think probably most U.S. policymakers know but might not be able to publicly acknowledge that it is destined to failure, but it feels it has no other choice.

At the same time, it is inflicting enormous collateral damage and in particular to other countries around the world, because I think that is China has it exactly right. That respect for sovereignty, respect for other countries development choices, including choice of technology platform.

is a vital element of sovereignty. And I think the US by doing this is in fact violating the sovereignty of many countries around the world by exactly, as you said, depriving them of technological choices that not only are very cost effective, but increasingly the technological leader globally. So this is

Absolutely. Not only self-destructive, I think from the perspective of the United States, when we look at the impact it is having on American technology companies like NVIDIA, as you touched upon, but it is also, I think, hurting the development prospects of many countries around the world. And this is, I think, generating or it's eroding the good

the goodwill that many of these countries had towards the United States. And this is why we see leading American investors striking the alarm bell here by saying that the American brand

is suffering enormous global damage that may be difficult, if not impossible, to recover from. Speaking of the damages, beyond official responses, such policies are now being openly criticized by key players in the U.S. tech industry itself. Jensen Huang, the CEO of NVIDIA, a company that once had 95% of

The Chinese AI chip market recently said the U.S. export controls are completely wrong and have actually undermined America's leadership in the AI sector. So how significant is this that someone like Jensen Huang is publicly defining the Washington stance?

No, I think it's very significant that Jensen Huang has come out with these statements. Now, we know that corporate leaders in the U.S. generally tend to be cautious in their public statements. And the fact that he would say something like this, I think, again, shows the damage that these policies are doing. Because when we look at companies like

like Qualcomm.

A lot of these companies in the high-tech space, they spend an enormous percentage of their revenues on research and development to invest in the next generation of technology. So any loss of market share, loss of revenue could erode their leadership position globally. So I think that that is an existential concern.

And then when we look at, as he pointed out in particular regarding China, that many Chinese enterprises would prefer to buy Nvidia. But this creates the space and the incentive for Chinese competitors to accelerate their developments. So again, yes, I think that Jensen Huang is absolutely correct in pointing this out and

you know, we may see again the long-term negative repercussions of these actions that the U.S. has taken. That again, as I

as I touched on, are not only self-destructive, but imposing enormous collateral damage on countries around the world, as well as on American corporations. One last question. He also mentioned that Washington's containment strategy is actually accelerating China's self-reliance and innovation in the semiconductor sector. How do you assess China's recent progress in chip development? And at this stage,

How much impact are the tightened U.S. restrictions really having on China's semiconductor industry? Well, I think the Chinese stance on this, you know, which has been unfolding or, you know, we've seen this,

for eight years now is that hope for the best, be prepared for the worst. Because this again, this did not just start, but at the beginning of the first Trump administration that I think China recognized that it needed to be prepared

for this eventuality, but still leaving the door open to say we want to work with the United States, again, on the basis of mutual respect, respect for sovereignty, respect for each country's development choices, but at the same time being prepared for exactly these kinds of

of action. So I think that this really has been on the one hand challenging set of circumstances for China, but one it has prepared for as well. And I think again is only accelerating

the advances of the semiconductor sector in China. And I believe over the next few years, we may see some very, very dramatic changes that came about precisely because of these, perhaps we could say, not so wise policies on the part of the United States. And I wouldn't be surprised if we see

more tech leaders in the United States also taking positions similar to that of Jensen Huang. Thanks, Andy, for your insightful analysis. That was Andy Mock, tech analyst and senior research fellow at the Center for China and Globalization. You are listening to Road Today. Stay with us for more in-depth analysis after the break.

This is Road Today with me, Guiana, in Beijing. Let's move to Japan. As chief trade negotiator with the United States, Ryosei Akasawa has reiterated that the country is firm in its demand for the removal of U.S. tariffs during bilateral trade negotiations. He emphasized that Japan will not rush into any agreement that might compromise its national interests.

At a recent press conference, Akazawa described U.S. tariffs on automobiles, car parts, steel and aluminum as regrettable. The chief trade negotiator is scheduled to travel to Washington this week and expected to hold the third round of negotiations with U.S. trade representatives.

So to unpack Japan's position and what Lisa had in these trade talks, let's turn now to our guest, Professor Chu Qiang, fellow of Belt and Road Research Center at Minzu University of China. Thanks for joining us, Professor. Thank you.

Professor, many analytical pieces have pointed out that Japan's attitude toward the United States has shifted compared to before, with the Ishiba administration showing a noticeably tougher stance. So how do you view this assessment? What changes have occurred in Japan's approach and position regarding trade talks with the United States?

Well, I think the Yeshiva government actually has this consideration over many factors, for example domestic politics, economy, international...

in a responding number one we know from our source in Japan is that the Japanese are in a political society actually very strongly oppose this kind of the deal because it's been not only hurting the political dignity but also hurting strongly of their economic integrity so this is going to be you know triggering a lot of the address you know confident and also in a affecting the government supporting ratios

And already we have already seen the tariff existing here of policies has been impacting Japanese economy. For example, right now, many major car makers probably are losing more than 19 billion US dollar due to the tariff policies. So I think if a Shiba government do not respond very tough.

And I don't think a domestic society, especially the business society, is going to like that. And also, I think, you know, international factors, Japan has viewing how China is responding to this crisis. Well, China is acting very tough, but the result is simply OK.

But UK, well, they nailed down towards this requirement from the United States. But United States didn't give favor to UK, who is their old alliances. But instead, they've been imposing extra strings on to UK. So Japan is weighing the pros and cons. They've been saying, OK, if I'm

playing soft and USA wouldn't give me a softball back. But if I'm playing hardball, maybe the situation is not going to be that bad eventually. So I think that's a reason why they get this consideration at last.

Professor, the two sides remain significantly divided on issues such as automobiles, steel and aluminum tariffs, and the so-called reciprocal tariffs. Japan has proposed a package involving increased agricultural imports and technological cooperation in exchange for tariff exemption. From the U.S. perspective, is this offer viable? And why does Washington

seem to lack the motivation to make concessions with Japan. Wow, I think Japanese people are really smart. They've been so smart, even I can smell the smartness from China. Well, in Japan, they've been having this problem, what we call "Kome Arashi".

That means the shortage of the major rice supply in Japanese market. Look, if you're going to a supermarket in Japan, you are going to see the price of the ordinary rice, which is a staple food for Japanese people, are rising about 50 times to 100 times. Some people are even trying to smuggle rice.

from the airplane from China into Japan. So consider how terrible the situation is. So I think if Shiba actually wants to import more of the rice from America, so-called to balance its trade between Japan and America,

But basically to solve their own problem. So on one hand, they can bring down the price of the rice in the Japanese market, but also try to satisfy the United States. But I don't think this is going to work because if they are going to use just a rice imported to offset the trade deficit –

Every year, Japan, we're going to need to import more than 64 million tons of the United States rice. This is basically 190 times more than what is needed

in Japan. So everybody is going to need more than 200 times of the rise a year so that they can balance the trade with the United States. And secondly, they're in their package. They're talking about maybe they can cooperate with each other with technology, for example, like the automobiles, so that because they're yielding on the technology secret, so that Washington probably will cut some slack on Japan.

But I don't think they understand the motive in Washington DC because the reliance of Japan's economy on the United States is very large but reversely the United States economy they're relying on Japanese technology or market is very very little so I don't think Washington DC will have any motive to custom flag on Japan or to bargain with them because

I don't think the ace card or the ghost card, the joker card is in Japan's hand. So I don't think this is going to go anywhere. Professor, speaking of the rice imports, reports say such imports have become a key issue influencing the ruling Liberal Democratic Party's electoral prospects. The party's officials have noted that even if Japan agrees to increase U.S. corn and soybean imports,

they cannot make concessions on rice. Why has rice become a non-negotiable issue to Japan? Well, Japan, they're doing what we call the boutique store agriculture. So,

So in Japanese agriculture industry, it's not the farm, it's not the farmers even controlling the whole market, but the agriculture institution or agriculture association. In Japan, we call it a no-kyo. So this no-kyo is more like an organization organization.

you know, tried more like a workers union in the farming industry and controlling and monopolizing all kinds of the resources. And they have a strong power to bargain with Japanese government. So every year they can get a huge subsidy from Japanese government. That's a reason why you see these kind of the Japanese beef and also the Japanese rice are getting so expensive, become the luxury brand and the whole world market is because of this very high subsidies.

And now you're talking about importing 200 times of rice from the United States market to flood the Japanese rice market. And this NOKU, this agriculture association, basically they're going to lose lots and lots of money. And all this kind of luxury brand rice will fall from this boutique store and go to the supermarket or even go to the Costco.

So I don't think those Lords those Chabos would like to see that happening. That's a reason why they're going to see a lot of a protest from the Nokia and also from Japanese Farmers against the government if they take the deal with American on rice.

Professor, historically in the 1980s and 1990s, the U.S. imposed protectionist measures on Japanese automobiles over trade deficit concerns and perceived economic threats. So do you think the U.S. and Japan are heading down a similar path today? So if Japan makes compromises, what negative consequences or setbacks could it face?

Well, indeed. I think we still remember how American automobile industries and workers and also the politicians are smashing down Japanese cars like Toyota and Honda. I think they still got the tragic memories when the workers in the United States tried to smash the Japanese car on the street of America and boycotting all kinds of Japanese products. This is the history. But I don't think this time Japan would like to make it happen again because, number one, Japanese...

Auto industry is not that lucrative like before. They're not number one anymore. If they're yielding to America to a large extent, I think the whole value chain for Japanese auto industry is going to bleeding out even quicker.

And already they've been beating down the whole thing by German cars, by Chinese cars, and even beating down by American cars like Tesla. So I think Honda, Toyota, they're facing a rather difficult moment right now.

and what the chaebol groups and also politician groups if they're representative are going to really really protest against if the government are doing the things to in urban with america to you know on some deals against japanese auto industry and also uh like what just i mentioned this kind of the mood if it happened

this kind of mood will spill over to that culture industry to service industry to high-tech industry so all the japanese business society which they have a lots of lots of lobbyist power against the japanese mark japanese government we don't like it so

this kind of dissatisfaction will probably impact the whole Japanese political society. I don't think the Ishiba government would like to see that happen. Thanks, Professor. Many thanks for your in-depth perspective. That was Professor Chu Qiang, fellow of Belt and Road Research Center at Minsu University of China. Coming up, study shows U.S. tariffs dampen mood of global exporters. This is Road Today. We'll be back.

Hello, I am Dr. Digby James Wren, a political analyst and international relations scholar specializing in China area studies. World Today offers unmatched in-depth perspectives on China's politics, economics, business, technology and society. World Today's team of reporters and contributors provides valuable information from all of the world's major economies. I hope you can join me on World Today for the very best insights and news from China, on China, and help to build a better understanding of China's role in the world today.

Welcome back to Road Today. Let's continue our discussion on how U.S. tariffs policy is disrupting international trade and shaking business confidence around the world. According to a recent survey conducted by German financial services provider Allianz, positive export expectations have been halved just 40% since the U.S. announced its latest round of tariffs last month.

The Allianz Global Trade Survey also estimates the global export loss could surpass 300 billion U.S. dollars this year. The survey covers 4,500 companies across nine major economies, including the United States, China, France, Germany and Singapore, representing 60 percent of global GDP.

So for more on this, my colleague Xu Yawen joining us in the studio. Thanks for joining us, Xu Yawen. It's a pleasure. First, the survey shows a pretty big change in how businesses feel about growth and risks.

since the U.S. announced those tariffs a few weeks ago, especially when it comes to payment delays. How do you think these tariffs have affected businesses and their confidence both around the world and in the U.S.? Thanks for the question, Anna. So as you said, the Allianz Trade Survey provides very timely insight into how businesses are reacting to the latest round of U.S. tariffs.

And we can see the numbers are just quite striking. So before the terrorist war announced on April 2nd, fewer than 5% of exporting firms expected a decline in turnover. But after April 2nd,

what many companies are now referring to as tariff day that number jumped to 42 so that means nearly half of all exporting companies now anticipate a job in turnover over the next 12 months and this is a quite dramatic and sudden shift in business expectations so i think the core issue here is the unpredictability of the u.s trade policy it's just as damaging as the tariffs themselves

We can see, even though, you know, U.S. President has pulled back on many of the tariffs he initially proposed, such as key tariffs, like those additional reciprocal tariffs. However, we know that key tariffs remain in place, including the 10% universal tariff on all U.S. imports, also the 30% tariff on Chinese imports, and some extra tariffs on specific industries like metal and auto parts.

So businesses can still, I mean, they can hardly plan around with such a higher costs if those costs are not stable. And then when policy changes suddenly at such a large scale, it shakes investor confidence. As you also mentioned, delays shipments and also make it harder for companies to honor payment terms. So for global exporters, including many in China, this instability introduces serious risks.

And it becomes harder to manage cash flow or plan production when your biggest customer, the U.S., can change their rules overnight. So within America, I think companies are also feeling the pain. So more than half of the American firms surveyed said that they expect to raise prices to pass along tariffs costs.

which means they don't feel confident in absorbing those shocks internally. And that's a clear sign that business confidence is weakening across the board. I think that's why the report also points out a sharp drop in companies expecting their exports to grow this year. Do you think this is just a temporary thing or could it signal something bigger in long-term shifts in global trade?

Well, I think what we're seeing here is not a temporary reaction. It's going to be a sign of long-term structural shift in global trade patterns. So as the Allianz report shows, a steep drop in companies expecting export growth.

We have noticed that at the beginning of the year, about 80% of businesses were confident in growing their exports. But after the April tariffs, less than half still hold that view. And this collapsing optimism suggests that companies are re-evaluating their long-standing trade relationships.

And we're seeing signs of what economists today are calling friend-shoring, where companies shift the supply chains toward countries with more predictable trade or political alignment. For instance, even though we know that there is the new trade agreement with China and the U.S. recently have brought the average U.S. tariff on Chinese goods down to around 39%, that's a big job from the massive over 100%

before, it's still way higher than the 13% rate before the pre-trade war levels. And many firms see the relief as a temporary measure and they're preparing for a long-term adjustment rather than a return to business as usual. And now if we look at the French shoring,

It's going to keep gaining momentum in the meantime, so Chinese companies, they're starting to look more seriously at European market, the Latin American market as better, more stable options. In the meantime, survey also finds that European companies, they are showing more interest in selling to Chinese market and other parts in Asia.

So the survey also mentioned that export plans to the region rose to 36% and interest in markets in South and Southeast Asia actually doubled to 14%. So in a nutshell, these changes are not just reactive, they reflect a deeper transformation in how companies think about supply chain resilience and also political risk.

Also, the regional trade hubs. So this could be the beginning of a new era in global trade where the U.S. isolates itself from the free trade world and other countries across the globe. They diversify their trade with partners who are willing to engage and cooperate.

Then building on that, when we see big U.S. companies like Walmart are saying they will raise prices and move some production outside the United States, do you think we are seeing more multinationals rethinking how much they can rely on the U.S. market, even those U.S. companies? And how might this change investment plans in places like China or Southeast Asia? Yes.

We're definitely seeing that trend. Like, as you mentioned, multinational firms, they are reassessing the costs and risks of over-reliance on the American market and supply chains rooted in U.S. trade policy. When major companies like Walmart and Metals say they are raising prices and moving production outside the U.S.,

This is not just a business decision. This is a signal to the market and telling us that American multinational companies no longer see the U.S. as a fully reliable anchor for global production and trade. As the U.S. tariffs make operations more expensive and less predictable, I think American companies, they're increasingly looking forward like

to find the markets such as Asia, not only for manufacturing, but also for market growth and long-term stability. And under this context, I think both China and some Southeast Asia countries are becoming more attractive destinations. And while some, maybe we know China still remains this critical player due to its very advanced industrial base infrastructure and deep supplier networks,

Despite some geopolitical tensions, I think many global companies still view China as irreplaceable for advanced manufacturing and as a consumer market too large to ignore. One last question. Briefly, we are hearing that some of America's busiest ports like Los Angeles and Long Beach

are seeing shipments drop by almost half, and they are warning about job losses and inventory problems. What's your take on how these tariffs are impacting U.S. logistics and jobs overall? Yeah, the situation at the U.S. ports is very alarming. Like you mentioned, there's two ports, very important ports in America, Los Angeles and Long Beach ports.

like the shipment traffic at the ports is down nearly 50% and they're the two business that container terminals and they're vital not just for goods from China but also for the entire US retail and manufacturing sectors so I think the impact goes beyond shipping delays like some port officials are warning about serious job losses we're not only talking about like jobs for dock workers but also for truck drivers warehouse staff and more like

their experts suggest that every four containers means a job. So when half of that volume disappears, that's about thousands of jobs at risk. So

So I think this is not just a logistic issue, it's a policy failure. The tariffs are disrupting the flow of goods and creating ripple effects across the U.S. economy. And unless there is a negotiated situation soon, we are likely to see rising prices, fewer production, fewer product choices, and growing unemployment in the sectors related to trade. Great insights. Thanks, Yaowen, for sharing that with my colleague Xu Yaowen.

CATL, a Chinese battery manufacturer, has witnessed the world's biggest IPO listing this year. It raised 4.6 billion US dollars on its first day of trading in Hong Kong. Shares in the company, which makes more than one-third of all electric vehicle batteries worldwide, closed 16 percent up on the debut day, despite the threat of US sanctions.

The CATL flotation lifted Hong Kong back to the number one spot in global fundraising. It means its IPO market this year is already worth of $7.5 billion, that's a six-fold increase on last year. Hong Kong is ahead of both the Nasdaq and New York stock exchange for IPOs so far this year. For more on this, my colleague Zhao Yang spoke with Chen Jiahe, Chief Investment Officer at Novenark Technologies.

So, Jiahe shares in CATL jumped about 16% on its first day of trading in Hong Kong, and this was the largest IPO so far this year. So, what's your take on CATL's debut in Hong Kong? Are you surprised by its jump in share price?

Yeah, it's actually a bit surprised because Hong Kong is a very competitive market. You know, usually companies when making the IPO, they get a flat opening, either go up a bit or down a bit. But this time we see that the ATL has been rising quite a lot.

it really tells you how enthusiastic the hong kong market is about this new share and this shows that hong kong market is again coming back to a bull market in fact many hong kong stocks has been rising in the past a few years basically because many capital are thinking china as a very good destination especially amid the tariff war uh stat started by the trump administration against so many countries in the world i mean people are no longer

that confidence about the capital market in the United States when you look at so volatile the tariff has been over there. So many capital are really coming to China and Hong Kong is one of the most important markets of China. I mean, alongside the markets in Shanghai, Shenzhen, Beijing.

And why did CATL choose a secondary listing in Hong Kong instead of another global financial center like New York or London? And how important is Hong Kong as a financial platform in particular for Chinese companies, especially given this trade tensions and tariff tensions started by the United States?

Yeah, that's a very good question regarding why they chose Hong Kong. I mean, I think it's pretty obvious to say that they chose Hong Kong over New York or NASDAQ, basically because this trade tension between China and the US will stop any Chinese company from having the confidence to get themselves listed in the United States, because you might get discriminated actions. There has been so many rumors and facts about Chinese companies get discriminated

treatment in the United States. So any company thinking that, okay, I'm going to get listed. I'm not going to just get away with an IPO and I get the money away from the IPO and that's about it. I want to do business for 10 years, 20 years. They won't choose the United States because they're worried. So that's why they choose, um,

New York, well, Hong Kong over New York. The reason they choose Hong Kong over London, I think it's basically because, you know, London is not an active market like Hong Kong is. I mean, Hong Kong is a very active market. If you look at how many capital actually going into Hong Kong, if you look at how many investors are coming in here. But if you look at London, London is more like a matured market. You have

very matured market performance you have less capital compared with hong kong so that's probably why they choose hong kong also because they are a chinese company and hong kong is a global market it really offers

It really offers Chinese companies a very good chance to connect with global capital and a very solid political background. You're not worrying about basically anything relating with political issues that would happen to you if you get listed in Hong Kong. So it's a very good platform for Chinese companies over here.

And despite Washington's trade policy, there is still a big confidence among international investors for leading Chinese manufacturers, right? So how do you explain that?

Well, it's very interesting because if you look at the stock price of the ATL, it actually performed much better in Hong Kong. So that means global investors, because Hong Kong market actually got more global investors. So this actually means more global investors are interested about the ATL. So that's why we can say that the global capital are really interesting about China's high-tech companies. Because if you look at the global market, China is one of the most important fields for investing.

you have probably a few large markets. I mean, Europe, Japan, China, United States, Southeast Asia, and that's about it. You don't have that much choice on this world. And China is one of the largest markets, probably the largest market,

Especially if you look at the purchasing power parity of the GDP, we are the largest economy and we are growing at a very solid speed compared with many other economies. And we've got very stable political environments.

The policies Chinese government made about 10 or 20 years ago is inconsistent with what we are making today. And you can expect that for the next 10 or 20 years, you will be able to see the same kind of policies. So that's why so many global capital are really interesting about China. You can't miss this if you are doing global investment.

And the company said part of the funds raised this time will go towards its international business expansion. So how significant is that for CATL? And how insulated is CATL from the U.S. trade policies? I mean, is it fair to say that its ambitions will be focused much more on Europe and other

Obviously, we've seen CATL has a factory being built already in Germany and Hungary, and there is a potential of joint venture in Spain, right? Yeah, definitely. The global business is very important for CATL, especially actually for any Chinese manufacturer who is trying to grab a bigger, bigger, bigger business share in the world. We can't miss the global market. I mean, we definitely

can't focus on the United States because the tariff has been changing so rapidly and the trade tension between China and the U.S. has been going on in the past few years. So you don't know what kind of business environment you will be facing if you are a Chinese company in the United States.

So many Chinese companies are trying to avoid the United States, but United States is only a small part of the world. I mean, they are taking, I think it's about one fifth of the global GDP, but they have a slower growth rate compared with many economies around the

world and europe and southeast asia also very large markets for china so chinese companies are choosing these to expand to these markets as well and these markets many of them are really welcoming the chinese businesses because we offer products at very good price with very good quality um so

Globalization of Chinese companies will not be stopped. It will expand outside of the United States. And this actually will bring more economic benefits to the countries and economies that accept the Chinese companies. I read a report this morning about a port in the United States is that if the tariff is kept on added to a higher level, then they will face a

a bit of disadvantage compared with many other ports around the world because they can't buy the good Chinese products. So this actually brings economic benefits to the economies that accept Chinese companies' products as well. And as the largest IPO so far this year, what does this listing mean for Hong Kong's financial market and its role as a global financial hub?

Well, the Hong Kong financial market has been performing really good in recent two or three years. And this IPO just brings more energy into the market because Hong Kong market currently is absorbing a lot of capital around the world because for global investors, Hong Kong market would be the first step for them to enter into the large Chinese market. Because if you look at the listed companies over there,

Hong Kong market has got all the documents written in English. So that means for many global investors, the first market that they would choose is Hong Kong. Actually, personally, my company has got about 85% of our investment in Hong Kong market as well, because I got almost all the large companies in China listing there and they are trading at very good rates.

very good valuation. So we got about 80 or 90%. I think it's about 85% of our money in Hong Kong as well. So it's a pretty good market. It's been rising really sharp in recent years. And you can throw in billions of money in within just one day and you can get the money out the next day. They got no limits on capital. They got everything written in English. They got all the Chinese large companies listing there. So it's really good market. And this IPO is just helping the market by a further step.

That was Chen Jiahe, Chief Investment Officer at Novenark Technologies. That's all the time for this edition of World Today. I'm Guiana in Beijing. Thank you so much for listening. Bye for now.