Is China-Singapore relationship more important than ever before?
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Hello and welcome to World Today, I'm Ding Hen in Beijing. Coming up, China and Singapore vow to bolster bilateral ties. And we're going to take a look at the uncertainties surrounding possible ceasefire between Iran and Israel.

Morgan Stanley predicts that China's robotics market is going to double in four years. Canada and the European Union signed defense pact amid strained American relations. To listen to this episode again or to catch up on previous episodes, you can download our podcast by searching World Today.

First up, Chinese President Xi Jinping has called on China and Singapore to inherit and carry forward the fine traditions in their ties. The top Chinese leader made a remark in a meeting with Singaporean Prime Minister Lawrence Wan here in Beijing. President Xi Jinping called on the two sides to achieve more remarkable results in sectors including the digital economy, green development and artificial intelligence. He

He also called for more efforts to be done to boosting bilateral people-to-people exchanges. Lawrence Wong says Singapore will continue to expand bilateral trade and investment, adding that China-Singapore relationship is more important than ever before in times of global turbulence. The Singaporean Prime Minister is currently on a trip to China from Sunday to Thursday.

So for more, joining us now on the line is Dr. Rong Ying, Chair Professor with the School of International Studies, Sichuan University. So thank you very much for joining us today, Rong Ying. It's reported that this is Prime Minister Lawrence Wang's first visit to a non-Azian country since he assumed office.

What do you think this tells us? Well, yeah, certainly I think this is a very important visit, politically, diplomatically, and it tells, of course, a lot. I think first and foremost, by making this visit as the first non-ASEAN country, I mean, destination to China, I mean, non-ASEAN countries,

I think the Singaporean side would like to send a very strong signal, the priorities and the importance that they're being attached to its relationship with China. And also by joining other countries

ASEAN countries and a lot of countries in the world when they have a new leadership, a new re-election, so and so, they always wanted to make its first overseas trip to China. This is, of course, very much reflects the relationship per se, but more importantly, I think the

the importance of bilateral relationship. And last but not least, I think China and Singapore, bilateral relations are always a very good tradition. High level visit, top leadership exchange frequently. And so for Prime Minister Lawrence Wong, I think it just carried forward kind of a fine tradition.

Like his predecessors, we wanted to make the point that his continued sort of importance, continued political sort of commitment extended to this very important relationship, which by the way is now celebrating the 35th anniversary of the founding of the relationship. So it's a very special, very important to visit and

And definitely, I think as we have seen, that the two leadership are going to provide not only strategic guidance, more importantly, I think working together to plan the future. So more about that. I mean, a point that Lawrence Wan has made in his meeting with both the Chinese president and the Chinese premier is that the relationship between Singapore and China is

is built upon a deep level of mutual respect, trust and understanding. So why do you think between China and Singapore there can be these things or these very good qualities?

Yeah, that is, I think, kind of constitute the secret, if I can say. But the most importantly, I think, political foundation of that relationship. We all know that the past 35 years have seen that relationship as steadily grow and deepening to the extent that the

The political trust between two sides has not only provide kind of a foundation, but most importantly, help push for the further expanding of the relationship. Just to look at the formula of the relationship, I think from one in the past 35 years, we have seen that they've been upgraded step by step to a kind of a unique,

where the relationship they call a kind of a high quality forward looking innovative relationship. This is very much I think, reflect the depth and the breadth of the relationship. And at this moment, I think the common challenges or the common issues

facing the relationship and of course the leadership and the two peoples as well is how to make full use of that political foundation, deep-rooted trust and extensive close cooperation so that it brings more benefits for the people, two peoples, but also for the region and the world at large.

Now, with regard to this comment or this idea that the relationship between China and Singapore is nowadays more important than ever before in times of global uncertainty, in times of global turbulence,

Can you pinpoint the prominent common challenges that both China and Singapore are faced with? And how do you think these two countries can strengthen their strategic cooperation, for example, in order to jointly address those common challenges?

Yeah, that's a good question. I think I would rather define the kind of common issues facing the relationship.

the political foundation, the political trust has been certainly very much important. But also I think, I believe that the important issue is how to make sure this political sort of trust would be translated into concrete areas or specific

results of cooperation. In this regard, I think the leadership of the two countries

has during the visit agreed that it would to further pursue a kind of a more integrated cooperation in the context where both China and Singapore are pursuing their respective development strategy. In the case of China, we call this Chinese modernization. I think for Singapore, it also has, I mean, take into account the common

challenges or I mean the issues that facing in terms of finger portions cooperation. So in this regard, there are some specific issues, specific areas where the two sides will continue following the sound foundations of cooperation.

There are some, as we have seen, some flagship projects, I mean, in terms of the relationship at different stages, phase of relationship, right? The Singapore Industrial Park in Suzhou is one that was the time, 1990s, when China was pursuing industrialization. And then the Eco City in Tianjin, this is again a kind of a new

a new sort of innovative way to have better synergy in terms of cooperation. And also I think in Chongqing, I guess there are some other cooperation on the international transportation and so on and so forth. At this moment, under the framework of that integrated, I mean, that seem of integrated cooperation, I believe that the two sides are working very closely to adapt their cooperation to the new areas

emerging areas where I think the two sides feel very much, I think, important to further and deepen in that relationship. Yeah, I guess Chinese cities like Chongqing, Tianjin and Suzhou, they are indeed the most important eyewitnesses to the cooperation between China and Singapore, that's for sure. Then in

in specific economic areas such as the digital economy, green development and artificial intelligence. Professor Rongying, in your opinion, what can China and Singapore bring to each other in these specific fields?

Certainly, we have the foundations over there. And also, I think the experience is very much solid, helpful. And most importantly, there are kind of huge potentialities and complementarities between the two sides, despite the differences of the size of the market. So I think that's exactly why the two sides are working together.

by learning or adopting the successful experience of the past and working for new areas of cooperation. And so digital economy, green economy,

AI, smart cities and so forth. These are the areas I think being identified by the two leaders that during for this visit. And also I think very much related to that, this kind of cooperation or implementing cooperation is the mechanism. I think the success

of China-Singapore practical cooperation in the past 30 years and more, 35 years, is very much related to the success, successful sort of operation of cooperation mechanism and also of the planning.

and its implementation. So I believe that these are the areas where certainly continue to help and in the meantime, need to work better at the other, I mean, beyond the bilateral level, at the regional level and even at the level in the global context. And in this regard, again, Singapore and the China cooperation is taking place in the context of China and ASEAN.

So China and Singapore cooperation can play a kind of effect of demonstration to showcase the result and a pathway for China and ASEAN cooperation. This is again a very important area.

By the way, Dr. Rongyin, in somewhat relevant development, the two sides have now most recently agreed to jointly develop a Singapore-China third country training program for government officials from ASEAN countries and Timor-Leste.

What do you make of the significance of this particular program? This is again a kind of a creative way that China and Singapore cooperation

that have always been working on. And the third party cooperation or cooperation on the third market or third parties very much, I think, demonstrate that creativity or innovativeness.

And it also being very much in a way as China and Singapore, I mean, is pursuing their cooperation in an open and inclusive way. In other words, the bilateral cooperation not only benefits the two sides, but also in terms of the development of the third party. So I thought that this is a very important area of cooperation.

and not only for China, Singapore and China and the relevant third parties, but also in terms of China's cooperation with other partners as the third party market cooperation has been, I think over the past year, I mean, one of the major

areas where China is pursuing well with other cooperative partners and even developed countries like France and others. Let us hope that this cooperation will continue to move ahead most importantly in terms of experience and

lessons, if we can say. Your point's well taken. But thank you very much for joining us. Dr. Rong Ying, Chair Professor with the School of International Studies, Sichuan University. Coming up, we will take a look at the ongoing uncertainties shrouding a possible ceasefire between Israel and Iran. This is World Today. We'll be back. You're listening to World Today. I'm Ding Hen in Beijing.

China says it is closely following developments in the Middle East and doesn't hope to see escalations of tensions. Chinese Foreign Ministry spokesperson Guo Jiaquan said on Tuesday that military means can't bring peace, and dialogue is the only right path forward. The spokesperson said China is ready to work with the international community in terms of contributing to peace and stability for the region.

So joining us now on the line is Dr. Wang Jing, Associate Professor with Northwestern University in Xi'an, China. Thank you very much for joining us. It's my great pleasure. So Dr. Wang Jing, you know better than I do, now there were talks, there were media reports surrounding a possible ceasefire between Israel and Iran. What do you make of the uncertainties and vulnerabilities, let's say, surrounding a possible ceasefire?

The possible ceasefire has already been reached, but the problem is how it could be implemented. Because as you mentioned, the ceasefire toxin is very fragile.

there is no formal document, there were no formal kind of signature ceremony, there was no formal long and well logistically organized languages. So the only thing that they have the kind of the consensus and so this based on these consensus and they have the oral agreement that the ceasefire should be reached.

But the problem is that, as you mentioned, on the one hand, there's a trust between the two sides. Israel and Iran is very fragile. They do not trust each other. They maintain that there are still many very strong possibilities that the other side would attack them, if not now, but even later. So on the other hand, there is no strong or reliable monitoring system to help

the ceasefire maintained to help the ceasefire to be followed. So that's why the ceasefire is very fragile and we hope that it will continue but actually I think we will face several difficulties within the upcoming hours.

So, by the way, Dr. Wang Jing, why do you think in your observation, why do you think the Trump administration has turned to diplomacy after carrying out strikes on three Iranian nuclear, you know, nuclear sites?

I think the United States always hopes to rely on a diplomatic way. Because although there were many talks, okay, now the United States always threats, impose threats to Iran and always say some very strong words that show that the United States might upgrade.

its military activities in this region. But no matter how, this is just the manner of United States diplomatic way. It's just the hopes that the Iranian side could make concessions on the negotiation table rather than insist that they are all strong senses. So that's why we should be very clear that

To start the war or continue the war is a way of the diplomatic way and is an expression of the diplomatic way. And also to stop the war or suspend the war is also the way of the very expression of the diplomatic way. So that's why I think now Donald Trump may be realizing that the war might be endless.

And that's why the resources that the United States should put into this region to protect Israel and to support Israel might be countless. So that's why this is a very high price that the United States does not want to hold. And this is a very high cost that the United States does not want to pay.

So that's why I think now, very finally, the United States make the decision and try to facilitate Iran and Israel to reach a kind of the oral agreement that the war should be over. So going back to our previous question, under what kind of circumstances, under what kind of conditions do you think

possible peace can endure between the Iranian side and the Israeli side? I think it would be very difficult because there were no direct diplomatic relations between the two countries. They do not recognize each other and they still perceive and define the other side as the most evil role in this region. So that's why they are actually under the very hostile status. And then second, there was no direct communication channel between the two sides.

and they just send the words and send their willingness with very ambiguities with a kind of the defiance against each other through the third party so that's why this kind of the very clear message that's very likely that their clear message for example I want to end the war I want to suspend the war might be covered by these by other strong words they used in these messages and certainly I think

There is, as we repeatedly stressed, there is no reliable country that could help monitor the ceasefire. So that's why when there were some kind of misunderstandings between each other and miscalculation between each other, that could lead to further suspicion and further miscalculation of the other side, and then escalated a new round of conflict. So that's why I think there were many ways that we could do to help

the ceasefire or agreement endure much longer. But if you want to say, "Okay, forever," I don't think it is a very likely choice. Now, some people say for Israel, this conflict marks a turning point in the country's decades-long confrontation with Iran, because for the first time, Israel successfully brought a prolonged battle to the Iranian soil.

What is your take on this? And what do you think, if this observation I mentioned has a point, what do you think the Israeli side has gained so far in this conflict? And what has Israel failed to gain?

I think Israel's goal in this war has many dimensions. The very direct dimension or the very original dimension was that Israel hoped to delay the process of Iran nuclear capabilities construction and hope to intervene in Iran's missile and other strategic

the capabilities construction process. So that's why from that point, maybe Israel realized their goal because they tried to suspend the war, I'm sorry, suspend the process. They successfully attacked the many targets, particularly the nuclear facilities inside Israel.

Iran and also they to some extent they track the United States directly into the war the very first time after 1949 that Iranians sorry Iranians own territory attacked by United States so heavily and so strongly so they might perceive the by Israel the victory but also there are some other goals as you as we mentioned that they say okay Israel just want to over swoon the regime but that would that has not happened

and Israel may be totally, I mean, weaken Iranians military capability and destruct this, this damage the whole Iranians military capabilities. That does not happen. So that's why I think there was something that maybe Israel perceived that they successfully realized, but then there were still many things that far from being realized.

So for the Iranian side, do you think rebuilding the country's deterrence capability, be it the country's air defense system, for example, or its damaged nuclear facilities, do you think rebuilding these things will be a priority for Tehran in the days ahead?

I think there were still also divisions inside Iran because some of the hotliners, they believe, okay, the very key after the war is to upgrade their military capabilities. But then there were still many other kind of discussions or opinions that, okay, now Iran should focus on the economy. That's why I think we're still...

But maybe we can see what should be done because as we mentioned that there were still many divisions and discussions inside Iran. What should be the priority? So a lot of things should be discussed and I think we will face a lot of uncertainties and a lot of divisions inside Iran, which would be very apparent in the future. Thank you very much for putting this into perspective.

Dr. Wang Jing, associate professor with Northwest University in Xi'an, China.

Coming up, Morgan Stanley has predicted that China's robotics market will double in four years. Canada and the European Union have signed defense pact amid strained relations with the United States. You are listening to World Today. To listen to this episode again or to catch up on previous episodes, you can download our podcast by searching World Today. I'm Dinghan in Beijing. We'll be back after a short break.

You're back with World Today, I'm Ding Hen in Beijing. A leading global investment expert says China will remain a key destination for foreign direct investment despite mounting protectionism and rising geopolitical tensions worldwide.

James Zhang, chairperson of the Executive Board of the World Investment Conference, an influential platform for global investment dialogue, made remarks at the ongoing Summer Devils Forum, which opened on Tuesday in North China's city of Tianjin.

In a conversation with my colleague Xu Yaowen, Dr. Zhan also notes that global foreign direct investment is undergoing a structural transformation. It's no longer just about expansion, but about diversification, building resilience, and strategic realignment. Let's hear more from this interview.

You earlier participated in this panel discussion about new urban engines, emerging innovation zones. Could you briefly share with us your thoughts at the panel? And also, what's your assessment of the overall global investment landscape today?

First of all, about the special economic zones we talked about this morning, it's related to AI, or generative AI. This is a new form of special economic zones. It's small but with huge network. That's the feature. And then focusing on AI, it's like incubating all kinds of Silicon Valley specialized in AI. That's happened in China, in cities like Beijing,

in Tianjin, in Hangzhou, in Shenzhen, for example. It's also happening in the US. Of course, it's more of an Ivy League than for very few countries having this. But the trend is that it's going to grow and grow very fast. Now the discussion today is more focusing on the challenges and opportunities of further development of these zones.

My message to the panel and through the panel to this forum is basically there's a great potential. This is just the starting of a very new types of zones, but it needs to foster partnership with the other zones because there are over 10,000 special economic zones of different types, science parks, innovation hubs,

free trade zones, economic development zones, all these type of zones for them they provide the market, they provide the platform, they provide the kind of opportunities for innovation in the process of application. So this is very important for spillover effects of these

R&D in AI. It's also important for the kind of development at the international dimension, international level. For example, all these AI driven zones could have collaboration with other countries, with advanced countries, particularly in those countries have developing

are developing their smart cities. So the application could be immediate, beneficial and also mutually reinforcing through the application of the AI, the new

outputs of the R&D. You come from a background with rich knowledge in foreign direct investment and I've noticed that earlier this year when you participated in another forum, you said that services now account for about 70% of global FDI and you predicted that the long-term trend will be continued expansion of service sector.

What made you come out with this kind of prediction? Despite there is a rising trade barriers and protectionism and also the service sector, why is less affected by current global turbulence? It's a very good question because at the moment the world is focusing on trade wars and trade wars impact directly on trade, trading goods and impact on

market-seeking FDI, or efficient-seeking FDI, so to speak, export-oriented FDI. So when we talk about that focus, we need to bear in mind over the past decade, foreign direct investment was mainly driven by services, and investment in services account for over 70% of the global FDI flows. And that is the major trend, and I see it will continue

to drive the global FDI flows even against the current trends of the protectionism and all these problems. Why do I say that? In fact, there are several factors. One is the service sector has been growing very fast.

both in advanced countries and the emerging markets and developing countries in general, including in China, including in all those Asian countries. We have seen that growth rate that's going up, the purchasing power has been increasing over the years. So this is a kind of, because of service FDI is a market FDI in nature, market seeking FDI in nature. So that is one factor. Secondly, it's driven by technology.

technology for e-commerce, technology for digital banking and the transformation of all these services enabled first by the digital technology and now by AI.

So all these will drive the foreign direct investment in the services. You also mentioned that some sectors are still attracting strong FDIs, such as renewables, semiconductors, electric vehicles and communications. Yes. So which of these do you think are likely to lead the way in 2025? And where do you see the strongest regional momentum?

These are the sectors I identified at the end of last year. Based on a key indicator, one of the key indicators, it is the greenfield announced projects, the number of projects and the value of that. Because by the end of last year, we see all these greenfields. When we say greenfield, it means new projects, not cross-border merger and acquisitions. It's new projects.

investment projects announced, the deals were concluded. That has been increased. That's an indicator for future investment, actual investment in the country. Having said that, given the kind of disruption of the huge challenges since January of this year, some of the projects may be delayed, may be shelved, may be reformulated. So that will affect that. But that's the lead indicator for the future investment.

Also, the statistics that came out for the first quarter of this year, the Greenfield investment announcement, the deals announcement, including what we called in those sectors also increased, even though at the general level it declined, but in those sectors they will still increase.

So it shows the robustness of these sectors. There will be growth momentum in these sectors, plus the services, because these are all manufacturing sector statistics, plus the services. So this will drive the resilience of global FDI, not necessarily at a new high level, but at some reasonably strong level.

level of flows. Let's look at China's case here. Chinese policymakers have introduced the goals of high quality development and also stabilizing foreign investment. What unique advantages do you think China still offers to global investors in today's turbulent environment? First, over the past couple of years or three or four years since 2017-18 starts the

Challenges in trade, we do see investment in manufacturing has experienced the investment restructuring and diversion impact. This shows that it's quite challenging.

In the meantime, we still see the stable environment, business environment for market-seeking FDI, for service sectors, for that and also for high-tech advanced technology related areas. If you want to see the prospect for China in terms of the opportunities, then I still believe looking at the triple drivers,

sustainability driven investment. We talk about green economy, blue economy, ocean economy, we talk about grey economy and these are more of market seeking foreign direct investment. It will continue and foreign investors still very much interested in the Chinese market. It's big and attractive.

technology advancement and technology related sectors is another opportunity for foreign investors. And then the consumer market, particularly the new modes driven by technology, by digitalization and by AI. I think there's still a lot of opportunities.

That was Dr. James Zhang, the chairperson of the World Investment Conference Executive Board, speaking with my colleague Xu Yaowen. Coming up, Morgan Stanley predicts that China's robotics market will double in four years. This is World Today. We'll be back. You're back with World Today. I'm Ding Han in Beijing.

China's robotics industry is developing quickly. Morgan Stanley projections show that the market will more than double by the year 2028, from $47 billion to $108 billion, and that China is positioning itself as a global powerhouse in robotics innovation and deployment.

From assembly lines to hospitals, from smart warehouses to senior care homes, robots are no longer science fictions here in China, they are becoming an everyday reality. Last year, China accounted for 40% of the global robotics market and more than half of all industrial robot installations.

Meanwhile, the humanoid robot industry is on an even faster track. Experts say it will grow 63% annually over the next five years. For more, my colleague Zhao Yang spoke with Dr. Yan Liang, professor of economics with William Mett University.

So, Yan, thank you very much for joining us. Morgan Stanley projected that China's robotics market will more than double by the year 2028. So what are the main reasons behind this rapid market expansion?

Right. So in Morgan Stanley's report, they actually gives 10 reasons, a very comprehensive analysis of China's leading edge in this industry. But I think what is worth highlighting are a few. So first of all, China is able to have all the necessary components to build robots. Basically, China is able to source

um the robots materials uh 90 of them within china so this monopoly or the complete control of some of these rare earth minerals are really important and secondly i think they also talked about you know there is a natural drive for china to develop this technology because of demographic challenges

But also because China has really a large amount of skilled labor force, very talented students who are enrolled in vocational schools, they're able to really help to develop this industry. And I think they also highlight the government's role in

fostering this industry. So the government has been providing incentives and also helped to build infrastructure to play sort of the long game and building to help to nurture the talents and so on and so forth. One of the things that they specifically mentioned is, for example, companies are able to deduct 200% of their qualified R&D expenses from the tax bill.

So there's a lot of incentives that are given to the companies. And last but not the least, I think they really mentioned the really the drive for innovations through competitions between these Chinese firms. And so in 2024, last year,

There are 31 companies in China that unveiled 36 competing humanoid models. And so that is very much driving this industry through the government's efforts and through these companies' innovative and also competitive incentives. So I think those are the major reasons for China is taking the lead role in this robotics industry.

And as we know, China accounts for more than half of the industrial robot installations in the world. And now China is making great advancements in humanoid robots. And Shenzhen is China's robot valley with more than 74,000 robotics companies. So tell us, how is Shenzhen feeling the growth in this sector?

Right. So Shenzhen is really actively supporting many of these high tech industries. And so humanoid robotics industry is definitely one of the center of the tech sector. So I think the Shenzhen government is doing this

through really a combination of factors. For example, they provide a lot of financial incentives. They wrote out a $330 million worth of subsidy plan to help to provide financing resources for many of these companies. And as you mentioned, there are 74,000 of these robotics firms. And so they're really compete with each other and really roll out this process that Morgan Stanley call a destructive innovation process

There are also a lot of policy initiatives, how to recruit and retain talent through government procurement

to provide a demand for the industries. And also the government is playing a role to help to attract many of the suppliers to really deliberately to build industrial cluster. And that is very important because that help to speed up the development of the human rights industry. For instance, if you need certain components to build this robot, you can source

the foot from one company that just down the streets and then you could have, you know, different parts from different companies along the same area. So this kinds of industrial clustering is very important how to build this integrated, you know, supply chain. And last but not least, you know, the city has been building infrastructure and really fostering the cooperation between firms, research institutes and universities

And so all of these, I think, are really hoping to develop the human right industries. The city actually aims to be a global leader in the human right toolbox, and they're targeting 13.8 billion dollars by 2027. So it's a very ambitious goal. But I think they're also putting a lot of efforts to really foster the industry and nurture the industry to the fullest extent.

What are the latest advancements in humanoid robots here in China? Are we seeing the real world deployment beyond the lab? I mean, what are the main applications for humanoid robots in China? Are they being used in factories, in customer services, healthcare, etc., etc.?

Right. So first of all, I think the general picture is the humanoid robots are seeing really very fast growth. The annual rate of growth is 63%. And so this is going to grow from a 300 million industry in 2025 to 3.4 billion.

by 2030, and the estimate is that by 2050, so the turn of the century, there will be 302 million humanoid robots in China, which account for about 30% of the global total. So this year actually is a very important landmark year. It marks the start of mass production of humanoid

robots. And so what we've seen is that, you know, the human noise robots and other industrial robots help to automate the process of production and that that further boosts productivity and quality of these human noise. Now, you also ask a question about not only that China is

really growing the productive capacity of these humanoids. But we're also seeing increasing adoption and utilization of these humanoids. So they're definitely being installed in factories, in some of those smart factories, in dozens of factories in BYD or Foxconn, some of these very well-known manufacturers.

But they're also being utilized in service industry, for example, in hospitality industries. When you go to hotels, for example, you see a robot that is delivering food and other things to your room. You're also seeing this in restaurants where robots are bringing food services to customers.

You're also seeing that increasingly in customer service, in elderly care and in logistics that you can find humanoids. Also in research exploration, you're also seeing many of these humanoids. So I think the trend is that China's humanoid development is increasing in terms of its production, but also in terms of its technological advancement as well as its utilization.

How critical is AI, especially the large models and real-time learning, in enabling the humanoid robots to become more the real-world applications?

Right. So AI is very important, is essential because all these humanoid robots are basically what people call the embodied AI platforms. So this is really sort of the AI plus with these sort of the bodies, right, the robot bodies. So to have a humanoid robots, you cannot have a humanoid robots without AI.

And so, you know, according to some of the industry experts, they really emphasize that, you know, large language models like DeepSea have been really helpful in task reasoning and comprehension. And so these robots are not just performing, you know, very routine and repetitive and very well pre-programmed kind of movements and motions.

They're really analyzing the environment. They're able to have the instant analysis of their surroundings and tailor their tasks based on their needs. And so that really contributes to the so-called development of the robot's brains. So I think that is very important. Then you can see the synergies that on the one hand, China is really developing the AI in leaps and bounds. And on the other hand, this AI is being applied in various industries, including

including developing the humanoid robots. So we're likely to see these robots are going to be smarter, they're going to be more efficient, they're going to be more productive and evolving in the technologies thanks to these AI developments as well. And how does China's progress in humanoid robots compared with the US, Japan and other leading countries? What's the global landscape of this industry?

Right. So this is definitely a next generation technologies and many countries are really double down on the development. And countries like Japan, they also have the natural needs to develop robots and they're one of the ones that have the highest robots per worker ratio in the world.

because the population is aging and South Korea is another country that also see very wide adoption of industrial robots and also robots in the service industry. In the United States, of course, thanks to its leading role in the AI technologies, they're also developing the industry in a very rapid and efficient way. But still, I think China has its own unique

advantages. As I mentioned earlier last year, China has 36 competing human rights models, whereas in the United States they had only eight of them. And I think also China is not only able to develop the technology, they're also able to really bring down the costs.

So I think, you know, with China's technological development, with this mass production, with this cost efficiency, I think that would really put China in a lead role in the humanoid and industrial robots area. Professor Yan Liang, professor of economics with Willamette University. Stay tuned.

You are listening to World Today. I'm Ding Han in Beijing. The European Union and Canada have signed a wide-ranging defense pact. The European Commission President Ursula von der Leyen says the defense partnership means working on joint capability, interoperability, and joint procurement. The pact is a Canadian version of the agreement that the EU signed with Britain last month.

The bloc already had similar arrangements with six other countries, but this is the first ever one with a country in the Americas. The signing of the deal came on the eve of a two-day NATO summit where members of the military alliance will be called upon to pledge to spend 5% of GDP on defense.

So joining us now on the line is Kamal Makili-Aliyev, associate professor with the School of Global Studies, University of Gothenburg in Sweden. Thank you very much for joining us. Thank you for having me. So frankly speaking, Kamal, do you think U.S. President Donald Trump is the biggest reason for the two sides to sign this particular pact?

Well, frankly, I don't think he's the biggest reason, but he's certainly the biggest catalyst. And, you know, the Pact Alliance has broader concerns about U.S. reliability under President Trump, but he isn't the sole driver. Rising global instability, particularly due to the war in Ukraine and shared strategic values...

that have pushed the EU and Canada closer together can be named, I think, as a main reason. At the same time, Trump's pressure on NATO allies to boost defence spending from 2% to 5% of GDP, it has certainly influenced both Europe and Canada to diversify partnerships.

On the other hand, Canada's own agenda, for example, under PM Mark Carney, new PM, Prime Minister, so to reduce reliance on US defense supply and at the same time support rules-based order has also been an equal motivator.

Similarly, the EU's drive for strategic autonomy, as evidenced by the Safe Procurement Fund, reflects very much longstanding press and fighting realignment goals that are independent of US partisanship. So Trump's stance accelerated the process, but it is not the main reason here.

I see. So this partnership is opening the door for Canada to participate in the European Union's fledgling 150 billion euro defense called SAFE. Realistically speaking, Kamau, do you think Canada needs involvement in this particular EU fund? And realistically, to what extent is the European side willing to share this fund with the Canadian side?

Those are really good questions. And I think these are two separate questions. First, does Canada need it? Well, Canada's defense budget has lagged behind NATO targets. Only 1.37% of GDP in 2024, if I'm not mistaken, but it's now accelerating and plans to reach 2% by 2026.

On the other hand, Canada wants to modernize capabilities, submarine jets, cyber systems very rapidly, you know, and safe access would provide much cheaper co-financing and diversify suppliers beyond the US. So yes, Canada actually needs it.

Will the EU share it? Oh, it's also a very good question. I think yes, but with conditions, right? Canada will need to finalize a security and defense agreement with the EU. That's for sure. I mean, this is the EU law, similar to Brexit-era deals with the UK. Only after signing this agreement can it access joint procurement and the safe.

Also, Europe is inclined to allow cooperation, especially on a high-value project like submarines and AI, although some EU powers, like France, are cautious about non-EU inclusion, also due to nuclear considerations.

So the two sides, we understand, also have a trading pact signed back in the year 2016 that abolished somewhere around 98% of the tariffs between them. However, this deal is yet to be ratified by national parliaments in about 10 existing EU member states, including some of the European economic heavyweights like Italy and France.

So do you think the pursuit of closer defense ties, closer security ties will necessarily lead to more free and open trade between the two sides?

Oh, this is one of the most interesting parts of international relations theory. You know, and the rule of the thumb says security cooperation can help political will and trade, but it's not a silver bullet. So the Comprehensive Economic and Trade Agreement, CETA, has already removed 98% of tariffs. But national parliaments in 10 EU states, including France and Italy, have yet to ratify it.

So it's not yet enforced. On the other hand, while enhanced defense ties, you know, they can create momentum for closer integration. There are sticking points like EU concerns about the TARs, US or Canadian subsidies. They're still there in place and they remain.

Also, political leadership at both ends will be critical because defense goodwill won't automatically overcome domestic protectionist pressures in EU capitals, for example, we can name the same France and Italy. So while defense ties can ease trade diplomacy, they're really not a substitute for resolving structural political barriers to full seat ratification. So it's very much under question still.

Thank you very much for your perspective and for joining us. Dr. Kamal Makhily-Aliyev, Associate Professor with the School of Global Studies, University of Gothenburg in Sweden. That's all the time for this edition of World Today. To listen to this episode again or to catch up on previous episodes, you can download our podcast by searching World Today. I'm Dinghan in Beijing. Thank you so much for listening. Bye for now. ♪

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