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Speaker 1: And with US. Right now, we have Peter Lewis Asia

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Speaker 1: Business correspondent Alopiza. Hello, Heada, what do you make of

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Speaker 1: the fact that Trump has extended the deadline with China again.

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Speaker 2: I think it's kicking the can down the road. I

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Speaker 2: don't think they're making that much progress. Other than what

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Speaker 2: this kicking of the can does is it reduces the

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Speaker 2: impact of what would have been exceedingly high tarofts because

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Speaker 2: there would have been one hundred and forty five percent

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Speaker 2: tarots on China and China would have had one hundred

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Speaker 2: and twenty five percent tarists back on the US, So

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Speaker 2: that would have effectively ended all trade between both countries.

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Speaker 2: It would have been a trade embargo. But what are

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Speaker 2: they going to do in this three months? They've been

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Speaker 2: talking for a long time now, and I think the

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Speaker 2: problem is the differences between the two sides are really

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Speaker 2: just too intractable. From the Chinese side, they are ramping

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Speaker 2: up production in all these industries, causing massive over capacity

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Speaker 2: and driving prices down, which is affecting companies and industries

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Speaker 2: around the world, basically putting them either close to extinction

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Speaker 2: or sending that particular sector into deflation. And then from

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Speaker 2: the US side, they have this belief that when you

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Speaker 2: have trade between two countries, there are winners and losers.

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Speaker 2: It's not a benefit for both sides. If I win,

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Speaker 2: then you lose. And as long as you have that attitude,

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Speaker 2: it's very hard to come up with any sort of

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Speaker 2: trade deal which is mutually beneficial, because as soon you

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Speaker 2: see benefits from one side, you want to take them away.

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Speaker 2: So with that sort of mindset and China's mindset of

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Speaker 2: really this command and controlled economy where they dictate which sectors,

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Speaker 2: which companies get investments and do well. And also plus

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Speaker 2: the US concerns over national security that it's high tech

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Speaker 2: semiconductor's chip making equipment is getting into the hands of

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Speaker 2: the military. I see it very hard to see how

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Speaker 2: they're going to make much progress over the next three months,

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Speaker 2: and we're just going to be in the same position

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Speaker 2: again come November.

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Speaker 1: I feel uncomfortable. I mean, I feel like this is

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Speaker 1: the kind of idea that we had ditched, but what

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Speaker 1: seems to have come back. I feel very uncomfortable about it.

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Speaker 1: In video having to pay the government in the US

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Speaker 1: a share of its sales in order to be able

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Speaker 1: to make those sales to China.

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Speaker 2: Do you absolutely? I mean, this is unprecedented. You don't

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Speaker 2: charge companies for getting export licenses, in particular when that

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Speaker 2: export license gives the company a huge advantage because you

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Speaker 2: can sell products into the world's largest consumer market, China,

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Speaker 2: that other companies without those export licenses don't have. So

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Speaker 2: it's almost like a bride it's saying I will give

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Speaker 2: you these export licenses, but in return, you had to

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Speaker 2: pay me fifteen percent of your revenues. It's sort of

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Speaker 2: like the mafia. It's smacks of extortion. Plus, there is

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Speaker 2: an issue which I don't think has been resolved, is

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Speaker 2: under the US constitution, export taxes are illegal. So this

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Speaker 2: is in effect an export tax. And if these products

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Speaker 2: that the video is selling to China, or even the

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Speaker 2: cut down versions, are supposed to be a national security

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Speaker 2: threat because there's a risk that they will get into

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Speaker 2: the wrong hands and do enormous damage to the US,

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Speaker 2: paying fifteen percent of your revenues doesn't get around that flast.

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Speaker 2: They are still national security threats.

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Speaker 1: Yeah, totally.

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Speaker 2: Listen.

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Speaker 1: Do you think that there's anything that India can do

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Speaker 1: to repair its relationship with the US.

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Speaker 2: I don't think it's trying that hard. At the moment.

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Speaker 2: I think one it's doing now is it sees a

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Speaker 2: lot of ground to be made in terms of developing

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Speaker 2: relationships with other emerging market countries, particularly the bricks So

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Speaker 2: it's speaking with Brazil about ways in which they can

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Speaker 2: work together to avoid the impact of the US tarots.

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Speaker 2: It is driving China and India closer together. The Endramodi

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Speaker 2: is going to visit China at the end of this

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Speaker 2: month for security conference. That will be his first visit

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Speaker 2: to China in eight years. This week next week, China

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Speaker 2: is sending one e their foreign minister to India. They're

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Speaker 2: going to discuss their border disputes. They're going to try

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Speaker 2: and restart cross border trade in the Himalayan regions and

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Speaker 2: the Ramodi has also invited Vadimir Putin to Delhi, which

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Speaker 2: is accepted. So at the moment, he is focusing really

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Speaker 2: on developing these relationships with these bricks countries because I

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Speaker 2: think he feels really badly let down by the way

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Speaker 2: in which India has been bullied and been treated by

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Speaker 2: the US, considering they are supposed to be strategic allies

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Speaker 2: in the region, and I think it could take quite

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Speaker 2: a long time to repair that damage because I don't

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Speaker 2: believe India is going to forgive and forget very quickly.

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Speaker 1: No, No, I wouldn't think so. Hey, thank you as always,

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Speaker 1: Peter will chat to you again next week. Look after yourself.

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Speaker 1: That's Peter Lewis, our Asia Business correspondent. For more from

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Speaker 1: Hither Duplessy Alan Drive, listen live to news talks. It'd

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