1 00:00:00,280 --> 00:00:02,639 Speaker 1: Cry and Bridge, right, we're going to pay the Lewis 2 00:00:02,680 --> 00:00:04,800 Speaker 1: Asia Business correspondent who's with us paid. 3 00:00:04,600 --> 00:00:06,760 Speaker 2: A good evening, Good evening, Ryan. 4 00:00:07,160 --> 00:00:10,520 Speaker 1: China has been desperate to boost its economy, retail sales 5 00:00:10,560 --> 00:00:12,720 Speaker 1: of mess, the expectations and November. 6 00:00:13,840 --> 00:00:16,120 Speaker 2: Yeah, this has been the big theme really of twenty 7 00:00:16,200 --> 00:00:19,680 Speaker 2: twenty four in China. The consumer just does not want 8 00:00:19,720 --> 00:00:25,160 Speaker 2: to spend, and unlike in other Western economies where consumption 9 00:00:25,920 --> 00:00:28,480 Speaker 2: can be as much as three quarters of the economy, 10 00:00:29,040 --> 00:00:33,920 Speaker 2: in China it really is lagging behind. So China, which 11 00:00:33,960 --> 00:00:37,520 Speaker 2: has been relying on exports to try and boost its economy, 12 00:00:37,560 --> 00:00:39,720 Speaker 2: that's a pillar that is not going to be able 13 00:00:39,760 --> 00:00:43,760 Speaker 2: to rely on next year, really needs to get consumption going. 14 00:00:44,320 --> 00:00:47,280 Speaker 2: One of the reasons why it can't despite all the 15 00:00:47,280 --> 00:00:50,760 Speaker 2: stimulus measures that it's announced, is because it hasn't really 16 00:00:50,800 --> 00:00:55,200 Speaker 2: done anything to expand the social safety net. In China. 17 00:00:55,280 --> 00:00:58,560 Speaker 2: People are worried about their jobs. Youth unemployment is close 18 00:00:58,640 --> 00:01:02,720 Speaker 2: to twenty percent, so very high. People are worried about 19 00:01:02,800 --> 00:01:07,080 Speaker 2: things like healthcare, which they after the pandemic, many people 20 00:01:07,120 --> 00:01:08,800 Speaker 2: realize that so you know, they were going to have 21 00:01:08,800 --> 00:01:11,640 Speaker 2: to pay for their own health care. So people are 22 00:01:11,680 --> 00:01:16,920 Speaker 2: saving for these unforeseen circumstances rather than spending, and that's 23 00:01:16,920 --> 00:01:20,080 Speaker 2: been a real drag on the economy. So China's come 24 00:01:20,160 --> 00:01:23,319 Speaker 2: up with all sorts of measures to try and address this, 25 00:01:24,160 --> 00:01:27,800 Speaker 2: but nothing is really really working. President Ejinping has said 26 00:01:27,800 --> 00:01:31,720 Speaker 2: this will be the number one economic priority next year 27 00:01:32,319 --> 00:01:35,720 Speaker 2: to boost consumer demand. But the question on everyone's lips 28 00:01:35,800 --> 00:01:38,640 Speaker 2: is how what is actually you're going to do to 29 00:01:39,000 --> 00:01:41,520 Speaker 2: do this, And we haven't seen any details of any 30 00:01:41,520 --> 00:01:42,280 Speaker 2: policies yet. 31 00:01:42,640 --> 00:01:44,800 Speaker 1: No when are we going to see details? Do we 32 00:01:44,880 --> 00:01:47,880 Speaker 1: have any indication of when they might come, and if so, 33 00:01:48,080 --> 00:01:49,720 Speaker 1: how significant they might be. 34 00:01:50,920 --> 00:01:53,920 Speaker 2: Well, the China has what's known as its Two Sessions, 35 00:01:54,000 --> 00:01:56,920 Speaker 2: which is its major parliamentary meeting in March, and that's 36 00:01:56,920 --> 00:02:01,280 Speaker 2: when traditionally you get details. For example, it's economic growth targets, 37 00:02:01,280 --> 00:02:05,240 Speaker 2: which last year this year was five percent. The rumors 38 00:02:05,240 --> 00:02:07,680 Speaker 2: are it's going to stick with that five percent growth 39 00:02:07,680 --> 00:02:11,360 Speaker 2: target this year as well that the markets are getting very, 40 00:02:11,440 --> 00:02:13,600 Speaker 2: very jittery. They just can't wait that long. And one 41 00:02:13,639 --> 00:02:15,400 Speaker 2: of the problems we've had this year is we've had 42 00:02:15,440 --> 00:02:20,799 Speaker 2: a lot of press conferences from ministry officials promising all 43 00:02:20,840 --> 00:02:24,520 Speaker 2: sorts of stimulus, lots of talk, but not much action 44 00:02:24,919 --> 00:02:28,920 Speaker 2: and very little actually done in terms of real concrete policies. 45 00:02:29,280 --> 00:02:32,160 Speaker 2: So this is getting more and more urgent, particularly because 46 00:02:32,960 --> 00:02:36,600 Speaker 2: the Chinese economy is very very unbalanced. It's really relying 47 00:02:36,639 --> 00:02:40,079 Speaker 2: a lot at the moment on exports and exporting all 48 00:02:40,120 --> 00:02:44,560 Speaker 2: its over capacity overseas. But that's running into fierce resistance 49 00:02:45,240 --> 00:02:48,520 Speaker 2: from places like the European Union and the United States 50 00:02:48,520 --> 00:02:51,760 Speaker 2: who are putting tariffs on all sorts of products. So 51 00:02:51,800 --> 00:02:53,919 Speaker 2: it's not going to be able to rely on exports 52 00:02:54,520 --> 00:02:57,079 Speaker 2: next year as its main driver of growth. Has got 53 00:02:57,120 --> 00:03:01,079 Speaker 2: to find a way of getting consumers cansumption going again. 54 00:03:01,800 --> 00:03:04,320 Speaker 1: Right South Korea, what on earth is happening there? Now? 55 00:03:04,360 --> 00:03:06,400 Speaker 1: What's the situation around the president? 56 00:03:07,520 --> 00:03:11,720 Speaker 2: Well, he was Congress voted to impeach him. So now 57 00:03:11,760 --> 00:03:14,240 Speaker 2: what happens is there's one hundred and eighty day period 58 00:03:14,240 --> 00:03:19,120 Speaker 2: where the Constitutional Court reviews that decision and they will 59 00:03:19,200 --> 00:03:23,640 Speaker 2: decide either to uphold the impeachment or they will decide 60 00:03:23,720 --> 00:03:29,639 Speaker 2: to reinstate him. And they've started that process. Now. Now 61 00:03:29,639 --> 00:03:32,880 Speaker 2: once that one hundred or once they've made that decision 62 00:03:33,880 --> 00:03:36,080 Speaker 2: within that one hundred and eighty day period, they then 63 00:03:36,160 --> 00:03:40,320 Speaker 2: have sixty days after that to hold elections and elect 64 00:03:40,360 --> 00:03:43,720 Speaker 2: a new president. In the meantime, the current president is 65 00:03:43,760 --> 00:03:47,119 Speaker 2: stripped of all of his responsibilities and the Prime Minister 66 00:03:47,720 --> 00:03:51,480 Speaker 2: has taken over as president. But it's a very uncertain 67 00:03:51,520 --> 00:03:55,640 Speaker 2: situation because it really means right now South kored doesn't 68 00:03:55,640 --> 00:03:58,120 Speaker 2: have a leader, doesn't have a president, it can't really 69 00:03:59,000 --> 00:04:04,640 Speaker 2: take part in major international diplomatic initiatives, and that's going 70 00:04:04,680 --> 00:04:07,560 Speaker 2: to be very, very important with the Donald Trump coming 71 00:04:07,560 --> 00:04:11,920 Speaker 2: to power next month. It's tried to build up under 72 00:04:11,920 --> 00:04:16,120 Speaker 2: the old president alliances with Japan in particular and also 73 00:04:16,160 --> 00:04:19,039 Speaker 2: the United States. So people are wondering what's going to 74 00:04:19,040 --> 00:04:23,560 Speaker 2: happen to those diplomatic initiatives, and everything really is in limbo, 75 00:04:23,640 --> 00:04:26,960 Speaker 2: which sort of drags on the economy and leaves a 76 00:04:26,960 --> 00:04:27,960 Speaker 2: lot of uncertainty. 77 00:04:29,040 --> 00:04:32,800 Speaker 1: Now there is a potential for a merger between the 78 00:04:32,920 --> 00:04:36,680 Speaker 1: carmakers and and Honda. There holding merged talks. What do 79 00:04:36,720 --> 00:04:38,080 Speaker 1: we know at the stage. 80 00:04:38,640 --> 00:04:42,479 Speaker 2: Well, if this happens, It was reported on Tuesday that 81 00:04:42,520 --> 00:04:47,800 Speaker 2: they are in exploratory talks. The Japanese car makers, as 82 00:04:47,800 --> 00:04:50,880 Speaker 2: have car makers in Europe and elsewhere, have been absolutely 83 00:04:50,960 --> 00:04:54,279 Speaker 2: decimated by the rise of Chinese car makers. They've really 84 00:04:54,320 --> 00:04:58,000 Speaker 2: over the last few years come from nowhere to dominate 85 00:04:58,040 --> 00:05:01,960 Speaker 2: the electric vehicle market. Their brands all over the world 86 00:05:02,000 --> 00:05:05,520 Speaker 2: now and they are really the leading eb carmakers, and 87 00:05:05,560 --> 00:05:09,880 Speaker 2: it's put enormous pressure on these more traditional car makers 88 00:05:10,000 --> 00:05:14,560 Speaker 2: like Nissan and Honda. Nissan anyway has been struggling for years. 89 00:05:15,080 --> 00:05:18,520 Speaker 2: If it were to merge with Honda, it would create 90 00:05:18,839 --> 00:05:21,880 Speaker 2: a fifty two billion dollar car giant, and there's talk 91 00:05:21,960 --> 00:05:26,760 Speaker 2: about including Mitsubishi motors in it as well. This would 92 00:05:26,839 --> 00:05:31,800 Speaker 2: really transform the auto industry because it will basically now 93 00:05:31,920 --> 00:05:36,200 Speaker 2: turn Japan into a two company market in that sector, 94 00:05:36,600 --> 00:05:41,839 Speaker 2: and the combined Nissan Honda Mitsubishi company will be the 95 00:05:41,880 --> 00:05:46,120 Speaker 2: third largest automaker in the world, behind Toyota and Volkswagen. 96 00:05:46,200 --> 00:05:49,600 Speaker 2: So this is a really transformative deal. If it were 97 00:05:49,640 --> 00:05:53,000 Speaker 2: to happen, it will give the carmakers a lot more 98 00:05:53,080 --> 00:05:58,279 Speaker 2: scale to make investments to compete with the Chinese manufacturers 99 00:05:58,320 --> 00:06:02,520 Speaker 2: and also with Tesla in the EV space. But there 100 00:06:02,560 --> 00:06:04,680 Speaker 2: is going to be one big problem with it, and 101 00:06:04,720 --> 00:06:07,200 Speaker 2: that is deals like this one of the ways in 102 00:06:07,240 --> 00:06:10,000 Speaker 2: which they save costs is there are enormous job cuts, 103 00:06:10,880 --> 00:06:13,680 Speaker 2: and there's a big question mark over whether Japan is 104 00:06:13,720 --> 00:06:17,080 Speaker 2: really ready to face up to the types of layoffs 105 00:06:17,360 --> 00:06:19,680 Speaker 2: that this type of deal would lead to. 106 00:06:21,320 --> 00:06:24,120 Speaker 1: Yeah, and what would they call it? Nissan and Honda, 107 00:06:24,160 --> 00:06:25,560 Speaker 1: which the name do you go with or do you 108 00:06:25,640 --> 00:06:27,320 Speaker 1: do a hybrid? That's the big question. 109 00:06:27,440 --> 00:06:30,400 Speaker 2: Well, they'll do some sort of new name, like they 110 00:06:30,440 --> 00:06:33,880 Speaker 2: did with Stillantis back in twenty twenty one when fear 111 00:06:33,960 --> 00:06:38,159 Speaker 2: Chrysler joined with Francis PSA group and came up with 112 00:06:38,200 --> 00:06:40,400 Speaker 2: a totally new name called Stellantis. 113 00:06:41,520 --> 00:06:43,880 Speaker 1: I don't like that name. What would you would you 114 00:06:43,920 --> 00:06:50,240 Speaker 1: go like? Hessan, Maybean or Nanda? Thank you very much, 115 00:06:50,360 --> 00:06:54,280 Speaker 1: Peter Lewis that Asia Business corresponding. For more from Hither 116 00:06:54,360 --> 00:06:57,480 Speaker 1: Duplasy Alan Drive, listen live to news talks. It'd be 117 00:06:57,520 --> 00:07:01,400 Speaker 1: from four pm weekdays, or follow the PODCA cast on iHeartRadio.