WEBVTT - Xi Jinping’s right-hand man is coming to Australia

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<v Speaker 1>From Schwartz Media. I'm Ashlin McGee. This is seven am.

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<v Speaker 1>Australia is about to be visited by the most senior

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<v Speaker 1>Chinese leader we've had on our shores in almost a decade.

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<v Speaker 1>The visit by Chinese Premier Li Chiang comes at a

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<v Speaker 1>really interesting time for China, with economic stumbles and looming

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<v Speaker 1>sanctions making President Shi Jimping's vision for the future more

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<v Speaker 1>precarious than ever. So what's going on inside she's in

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<v Speaker 1>a circle and what message will she's close political ally

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<v Speaker 1>bring when he lands in Australia today. A contributor to

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<v Speaker 1>the Saturday Paper, Richard McGregor on the rumors swirling and

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<v Speaker 1>what they reveal about She's grip on power. It's Tuesday,

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<v Speaker 1>June eleven.

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<v Speaker 2>Richard.

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<v Speaker 1>You're in Washington recently and there was this question that

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<v Speaker 1>China watchers kept asking, can you tell me about that?

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<v Speaker 2>Yeah.

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<v Speaker 3>I was attending various conferences, some closed doors in public

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<v Speaker 3>about various aspects of China, and people kept asking me

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<v Speaker 3>whether Shijimping's wife, pugli Um was going to be appointed

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<v Speaker 3>to the Polart Bureau. I would like to introduce to

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<v Speaker 3>you the other six members, the STRESS members who have

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<v Speaker 3>also been elected to the Standing Committee of the Political Bureau,

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<v Speaker 3>and the Pollitt Bureau is the sort of top political

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<v Speaker 3>body in China.

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<v Speaker 4>At the top of the par pyramid is the Pollit

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<v Speaker 4>Bureau Standing Committee, composed of nine men ranked by number.

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<v Speaker 5>It has no women on it.

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<v Speaker 4>Incidentally, the entire system is designed to promote collective leadership,

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<v Speaker 4>but in the process it's resulted in fears jocking among

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<v Speaker 4>politicians at every level.

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<v Speaker 3>But for her to be appointed to the top level

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<v Speaker 3>body kind of sounded ridiculous, but people only took it

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<v Speaker 3>seriously because she is so powerful these days, and his

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<v Speaker 3>power is so personal that they thought they had to

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<v Speaker 3>sort of ask around about it.

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<v Speaker 1>So tell me a little bit more about Pung l Un.

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<v Speaker 1>What do we know about her?

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<v Speaker 3>Well, she's a very glamorous first lady, and that has

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<v Speaker 3>not always been the case in China. And she's famous

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<v Speaker 3>in her own right. She was a famous singer in

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<v Speaker 3>the People's Liberation Army's Military musical Troops. She's also famous,

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<v Speaker 3>much famous, more famous than him for many years because

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<v Speaker 3>she used to appear on the Lunar New Year or

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<v Speaker 3>Chinese New Year Concerts, which is sort of the biggest

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<v Speaker 3>thing on TV. Every year and sing a song. And

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<v Speaker 3>when she first married she that was his second marriage.

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<v Speaker 3>He was the party secretary of a sort of middle

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<v Speaker 3>ranking city in a coastal province. But she was highly recognizable,

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<v Speaker 3>and I don't think it was really until about two

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<v Speaker 3>thousand and seven when he started climbing the ranks through

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<v Speaker 3>the party that he really outshone her or was more

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<v Speaker 3>recognizable as a public figure.

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<v Speaker 2>I now have the great honor to present to you

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<v Speaker 2>our keynote speaker, Professor Pung lu Jan.

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<v Speaker 3>Now she's a sort of ambassador for all sorts of

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<v Speaker 3>causes in China.

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<v Speaker 2>First Lady of China and John Escu's Special Envoy for

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<v Speaker 2>the advancement of Girls and Women's Education.

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<v Speaker 3>She's associated herself with causes people with disabilities, AIDS and

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<v Speaker 3>the like, which people I don't think had really done

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<v Speaker 3>in China before. And on top of all those appointments,

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<v Speaker 3>Madame Pung was also appointed to this sort of opaque

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<v Speaker 3>military body. I think it's called the Cadre Assessment Body

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<v Speaker 3>or something like that, and that's one of these Chinese

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<v Speaker 3>bodies that runs right through the Communist Party at different levels,

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<v Speaker 3>and that's the sort of top level of people who

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<v Speaker 3>have to be cleared by the system every time they're promoted,

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<v Speaker 3>and I guess she's part.

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<v Speaker 5>Of the military wing of that.

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<v Speaker 3>But it would really have been astounding for her to

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<v Speaker 3>have been appointed to the Poloit Bureau. And I guess

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<v Speaker 3>rumors are sometimes floated deliberately. Sometimes they're kind of circular.

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<v Speaker 3>I suspect this was a kind of circular one because

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<v Speaker 3>it hasn't happened. But I just think the point is

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<v Speaker 3>that people took it seriously, because you take anything with

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<v Speaker 3>she seriously.

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<v Speaker 1>Richard, the fact that this was even a live discussion

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<v Speaker 1>in Washington about whether she'd be appointed to the politbureau,

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<v Speaker 1>what does that tell you about how she Jimping is

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<v Speaker 1>perceived in China.

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<v Speaker 3>Yes, he's kind of I would say he's well and

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<v Speaker 3>truly consolidated his power. I guess in his first one

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<v Speaker 3>hundred days he rapidly tried to take over the system.

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<v Speaker 3>He had a big anti corruption campaign. Ten twelve years later,

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<v Speaker 3>it's still going, you know. For example, last year, the

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<v Speaker 3>foreign minister and the Defense Minister were both disappeared detained.

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<v Speaker 5>We don't know exactly what for.

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<v Speaker 3>So over time she has put his own people so

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<v Speaker 3>they dominate the top level of Chinese politics, that's the

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<v Speaker 3>bureau Standing Committee. Every single person on that body now

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<v Speaker 3>is a Sea loyalist, and that's most unusual in Chinese

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<v Speaker 3>politics because you always have internal balancing left wing right.

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<v Speaker 3>When they had the same thing in China, that's gone

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<v Speaker 3>now under him, he's gradually consolidated control of the military,

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<v Speaker 3>which is very important, and also the security services and

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<v Speaker 3>economic policy making. So he really that's why people jokingly

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<v Speaker 3>call she the chairman of everything, because he's put himself

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<v Speaker 3>in charge of everything.

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<v Speaker 5>Yeah yea wait, I should he cheerful? Yeah? More you want, man.

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<v Speaker 3>I just think these days in China, you know, the

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<v Speaker 3>personal's political, she's in charge.

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<v Speaker 5>People hang off every word of his.

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<v Speaker 2>She monks.

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<v Speaker 3>Jiang day, they read his speeches, they sort of try

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<v Speaker 3>to calibrate his public appearances and the like. I just

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<v Speaker 3>think that it's a function of the fact that he's

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<v Speaker 3>really on top of the whole system and has all

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<v Speaker 3>the leavers of power in his hands. Hunga And since

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<v Speaker 3>China opened its door after COVID, Chinese economic policy has

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<v Speaker 3>actually been very volatile to put it nicely, and unstable

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<v Speaker 3>to put it less. So you know, one day China

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<v Speaker 3>loves foreign investment. One day they love foreigners, win win cooperation,

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<v Speaker 3>We're after Davas and all that. The next day they're

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<v Speaker 3>locking up foreigners, they're issuing proclamations about foreign spies, they're

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<v Speaker 3>raiding foreign companies and the like. So it's been really

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<v Speaker 3>for China pretty all over the place.

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<v Speaker 1>After the break, A top Chinese leader coming to Australia

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<v Speaker 1>and the message he'll bring on behalf.

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<v Speaker 5>Of Shi Jimping.

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<v Speaker 1>Richard in the middle of these rumors, and she's very

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<v Speaker 1>real efforts to consolidate power. And we're going to get

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<v Speaker 1>a visit from Premier League Chiang. He's heading to Australia

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<v Speaker 1>in June. That's pretty big, right, tell us a little

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<v Speaker 1>bit about him and what we can expect from this visit.

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<v Speaker 3>Yes, he's a Shei loyalist. He wouldn't be at the

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<v Speaker 3>top otherwise. He's officially ranked as number two in the party.

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<v Speaker 5>In China.

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<v Speaker 1>Lee Chang has been appointed as Premier, the nation's second

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<v Speaker 1>highest post. It follows his nomination by President Shihin Ping.

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<v Speaker 3>He was the Party secretary of Shanghai, and you know,

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<v Speaker 3>by the way, if you're the Party secretary of Shanghai,

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<v Speaker 3>you're number one in the city you rank above the mayor.

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<v Speaker 3>And he was also in the charge in charge of

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<v Speaker 3>a number of other prosperous cities near Shanghai. So he

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<v Speaker 3>has a pretty good record as an official. He has

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<v Speaker 3>one big black mark against his name was that he

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<v Speaker 3>had to do the Shanghai lockdown during COVID, which was

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<v Speaker 3>a really painful period. But he was kind of just

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<v Speaker 3>following orders there. But to give you another example of

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<v Speaker 3>something that Lee Chang pulled off.

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<v Speaker 5>You know why is the world's biggest tesla factory are

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<v Speaker 5>in Shanghai.

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<v Speaker 3>And the reason is because he negotiated with Elong Musk

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<v Speaker 3>to put it there. You know, Elon Musk in the

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<v Speaker 3>way that he does, said I want you to build

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<v Speaker 3>it in two years, and in fact they built it

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<v Speaker 3>in a year. And so that's why that's helped China

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<v Speaker 3>build the country into the basically the electric vehicle powerhouse

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<v Speaker 3>that it is these days. And by the way, all

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<v Speaker 3>the teslas you see on the roads in Australia are

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<v Speaker 3>built in Shanghai. So Lee Tang is head of the

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<v Speaker 3>government in theory or also head of the economy, a

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<v Speaker 3>very competent official, but he's very much under She's thumb and.

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<v Speaker 1>So it's been about seven years since someone of his

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<v Speaker 1>ranking travelte what will you be listening for when he

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<v Speaker 1>speaks in Australia.

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<v Speaker 3>Yes, well, it's going to be very interesting to listen because,

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<v Speaker 3>as you say, we haven't had anybody from China of

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<v Speaker 3>this stature for some time, and of course in the interim,

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<v Speaker 3>China put Australia, you know, deep into the freezer. Ministerial

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<v Speaker 3>contacts were cut off for years.

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<v Speaker 6>The latest in an tip diplomatic stoush, this retaliation for

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<v Speaker 6>the federal government trading of China's built and road deal

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<v Speaker 6>with Victoria. Today accusing Australia of acting out of a

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<v Speaker 6>Cold war mindset and ideological discrimination.

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<v Speaker 3>We had all manner of punitive trade measures leveled against US.

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<v Speaker 1>China has fired a new and damaging shot in its

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<v Speaker 1>trade war with Australia. It slapped massive tariffs on our

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<v Speaker 1>wine exports with more than one point two billion.

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<v Speaker 3>China was very unhappy with US on a ton of issues, Taiwan,

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<v Speaker 3>South China, Sea, Huawei, foreign interference, COVID inquiries.

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<v Speaker 5>The list goes on and on and on.

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<v Speaker 3>Australia says it is echine closet and stabilizing its fraught

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<v Speaker 3>relationship with its largest trading partner. So under the Labor government,

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<v Speaker 3>the relationship is not stable, but stabilizing if that's not

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<v Speaker 3>a contradictionsation and the resolution of trade issues will take time,

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<v Speaker 3>but we are pleased at constructive dialogue has resumed.

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<v Speaker 5>So you know, we're not kind of kissing and making up.

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<v Speaker 3>We're sort of just agreeing to sort of go for

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<v Speaker 3>a walk in the park again, so to speak.

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<v Speaker 5>What will he say?

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<v Speaker 3>He'll say what a lot of Chinese say about Australia.

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<v Speaker 3>They'll say, We've got no territorial disputes to divide us.

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<v Speaker 3>We've got no fundamental areas of difference between us. Our

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<v Speaker 3>economies are complementary. We should get along. That's the public face,

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<v Speaker 3>of course, but behind that, China hates August. They don't

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<v Speaker 3>like the tightening US Australia alliance. They don't like the

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<v Speaker 3>fact that we still sail our naval ships as we

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<v Speaker 3>have for decades in the South China Sea. They don't

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<v Speaker 3>like our tightening links with Japan.

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<v Speaker 5>But I think.

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<v Speaker 3>China is taking a longer term view and trying to

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<v Speaker 3>see how they might be able to get along with Australia.

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<v Speaker 5>And I guess the same is true of us, Richard.

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<v Speaker 1>So that's the Chinese government's external relationships. But how are

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<v Speaker 1>things going internally? With the economy faltering? Is there a

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<v Speaker 1>bit more of a challenge that she is facing inside

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<v Speaker 1>the country?

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<v Speaker 3>Yeah, I think the economy is She's Achilles heel if

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<v Speaker 3>you like. You know, China's economy is not going to collapse.

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<v Speaker 3>You know, we're not on the verge of a sort

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<v Speaker 3>of deep recession. But growth is much lower than it

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<v Speaker 3>has been for a long time. And more to the point,

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<v Speaker 3>Chinese have got a pretty crappy stock market and they

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<v Speaker 3>can't really invest offshore. You know, it's a closed capital market,

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<v Speaker 3>so household wealth is tied up in the real estate sector,

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<v Speaker 3>in your home and any investment homes that you own.

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<v Speaker 3>I mean, this is a total revolution in China since

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<v Speaker 3>the mid nineties, really successful in many ways, but grew

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<v Speaker 3>into this massive bubble. Big developers have gone bust. And

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<v Speaker 3>of course, demographics is another big one. You know, we're

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<v Speaker 3>on the cusp in theory of the Asian century. But

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<v Speaker 3>every big country in Asia, South Korea, Taiwan, Japan, and

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<v Speaker 3>most of all China, their populations are falling. There's no

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<v Speaker 3>more demographic dividend. You can't do what we're doing, frankly

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<v Speaker 3>in Australia throw more people into the economy and growth

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<v Speaker 3>like that.

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<v Speaker 5>So they're struggling in.

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<v Speaker 3>That respect, and I think that one of Hijimping's key

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<v Speaker 3>goals is to make China into a high tech powerhouse.

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<v Speaker 3>You know, the US is leveling all manner of sanctions

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<v Speaker 3>against China at the moment related to technology to try

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<v Speaker 3>and sort of slow down China's development. Well, China would

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<v Speaker 3>like to do that to America, so they're investing literally

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<v Speaker 3>tens hundreds of billions of dollars to catch up. So

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<v Speaker 3>it's a really hydra headed competition, and we're dragged into

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<v Speaker 3>that because we are a close US security ally. People

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<v Speaker 3>who watch China and followed China have been wondering for

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<v Speaker 3>many months when something called the third Plenum of the

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<v Speaker 3>Current Party Congress would be held, And all that means

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<v Speaker 3>is it's a full meeting of the sort of broader

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<v Speaker 3>larger board of China INK at the Central Committee, and

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<v Speaker 3>they would issue some proclamation on economic policy. The fact

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<v Speaker 3>that it's delayed tells you that there's probably a lot

0:14:27.520 --> 0:14:31.960
<v Speaker 3>of debate, discussion in fighting about the direction of the

0:14:32.040 --> 0:14:36.040
<v Speaker 3>Chinese economy. So she is an all powerful leader, but

0:14:36.120 --> 0:14:40.160
<v Speaker 3>he might be the first leader since about nineteen eighty

0:14:40.400 --> 0:14:44.000
<v Speaker 3>to preside over a relative contraction of the economy, and

0:14:44.040 --> 0:14:48.280
<v Speaker 3>that affects a politician standing in an autocracy as much

0:14:48.320 --> 0:14:50.600
<v Speaker 3>as it does in a democracy.

0:14:51.200 --> 0:14:52.800
<v Speaker 1>Richard, thanks so much for your time today.

0:14:53.280 --> 0:14:54.280
<v Speaker 5>Thanks great to be here.

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<v Speaker 1>Also in the news today, the French Parliament's been dissolved

0:15:09.280 --> 0:15:12.480
<v Speaker 1>by President Emmanuel Macron, with an election to be held

0:15:12.480 --> 0:15:16.480
<v Speaker 1>within thirty days. Macron made the decision after Marine Le

0:15:16.600 --> 0:15:19.640
<v Speaker 1>Penn's far right opposition one an overwhelming number of seats

0:15:19.640 --> 0:15:23.520
<v Speaker 1>in elections to represent France in the European Parliament, with

0:15:23.640 --> 0:15:26.800
<v Speaker 1>Macron telling the nation during a late night televised address

0:15:26.920 --> 0:15:29.440
<v Speaker 1>that he intended to confront the writer at the ballot

0:15:29.440 --> 0:15:33.320
<v Speaker 1>box in a high stake snap election, and Colls is

0:15:33.360 --> 0:15:36.680
<v Speaker 1>limiting how many Eggs customers around Australa can buyed Drew

0:15:36.760 --> 0:15:40.200
<v Speaker 1>cartons per person. After an outbreak of bird flu in Victoria,

0:15:40.640 --> 0:15:42.920
<v Speaker 1>more than half a million chickens in Victoria have been

0:15:43.000 --> 0:15:46.000
<v Speaker 1>euthanized in an effort to stop the spread of the disease,

0:15:46.400 --> 0:15:49.360
<v Speaker 1>but the outbreak is likely to continue to limit supply,

0:15:49.480 --> 0:15:52.240
<v Speaker 1>with some reports warning the cost of eggs could double

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<v Speaker 1>in the next few weeks. That's all from the seven

0:15:54.680 --> 0:15:57.480
<v Speaker 1>Am team for today. My name is Ashlin McGhee. Thanks

0:15:57.480 --> 0:16:03.320
<v Speaker 1>for your company and I'll see you again tomorrow