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Speaker 1: Peter lewis our Asia Business correspondents with us. Hey Peter, Hello, Hello,

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Speaker 1: So we've got the full text of the decisions that

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Speaker 1: were made in the third Planum. Is there anything in

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Speaker 1: there is interesting?

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Speaker 2: There's not a lot that's new, but there is rather

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Speaker 2: a large number of measures they talk about. They've set

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Speaker 2: out over three hundred reform measures, things that are going

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Speaker 2: to hopefully help improve their economy. The problem is a

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Speaker 2: lot of these things we've heard about already. They've been

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Speaker 2: talked about many times in the past. Several of them

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Speaker 2: are already in train. And I think the two main

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Speaker 2: themes we know about very well. The first one is

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Speaker 2: national security. President Ji Jinping says national intersecurity is just

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Speaker 2: as important as the economy. I suspect that when push

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Speaker 2: comes to shove, national security is even more important than

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Speaker 2: than the economy, and given the choice, he'll go for

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Speaker 2: national security every time. The second thing is what he

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Speaker 2: talks about is advancing new productive forces in the economy.

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Speaker 2: These are new areas where China wants to be strong in,

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Speaker 2: wants to be a global player in which are technology

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Speaker 2: things like electric vehicles, batteries, solar panels and so on.

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Speaker 2: And he wants to be very self sufficient in technology

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Speaker 2: so that he doesn't have to rely on the West.

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Speaker 2: But the problem is, I'm not at all convinced that

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Speaker 2: these measures are really going to be enough to solve

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Speaker 2: China's economic woes. And I think the first reason for

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Speaker 2: that is because it doesn't deal with the main issue,

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Speaker 2: which is that consumers just do not want to spend.

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Speaker 2: They're seeing the value of their property go down month

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Speaker 2: after month, They're worried about their jobs. Youth unemployment is

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Speaker 2: very very high in the country, so rather than go

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Speaker 2: out and spend their saving or pang down their mortgages,

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Speaker 2: and it doesn't matter how much you offer them cheap

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Speaker 2: loans or cut interest rates, they just do not want

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Speaker 2: to borrow. And unless you get theonomy the domestic side,

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Speaker 2: of the domestic demand side of the economy going, it's

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Speaker 2: going to be very difficult for the economy to recover overall.

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Speaker 2: And that leads to the second issue. If you're going

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Speaker 2: to produce all these things and your local consumers aren't

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Speaker 2: going to buy them, then it means you've got to

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Speaker 2: export them to the rest of the world. Unfortunately, for China,

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Speaker 2: the rest of the world increasingly doesn't want to buy

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Speaker 2: them anymore. And it sees the trade practices that China

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Speaker 2: is following here in trying to boost certain sectors as

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Speaker 2: being unfair. And they don't want to see in the

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Speaker 2: EU and the US their own industries in the electric

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Speaker 2: vehicles and batteries and solar panels and so on decimated.

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Speaker 2: And these decisions don't really give a nod to those

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Speaker 2: difficulties if anything. I mean, the way President she presents

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Speaker 2: it is we're going to carry on regardless, and they're

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Speaker 2: going to carry on pouring money into these sectors, and

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Speaker 2: we're going to become a global exporting nation of all

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Speaker 2: these ex as products. And I think that's where it's

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Speaker 2: going to run into difficulties.

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Speaker 1: Yeah, that's a very good point that you make. There

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Speaker 1: actually number of points that you make. Listen, So Taiwan's

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Speaker 1: starting at annual war games on Monday. What does this

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Speaker 1: actually look like? What are they actually doing?

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Speaker 2: Well, they're doing it differently this time. First of all,

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Speaker 2: they're not following any sort of script. What they're trying

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Speaker 2: to do is really simulate what is a real, live

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Speaker 2: surprise invasion by China by mainland forces to see how

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Speaker 2: their troops will respond to that. Now, obviously they're taking

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Speaker 2: recent developments very very seriously. I mean, China has been

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Speaker 2: increasing its own war games around tai Taiwan. It's initiated

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Speaker 2: for a while, a blockade, it puts, it puts initiatives

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Speaker 2: against Taiwan when it's elected William Lai as their presidents,

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Speaker 2: and China sees him as being a dangerous separatist who

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Speaker 2: wants to split Taiwan from the rest of China. So

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Speaker 2: Taiwan really has got to up its own defenses here

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Speaker 2: because as much as it may want to rely on

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Speaker 2: the US and other nations to help it, its first

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Speaker 2: line of defense is going to be itself. So it

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Speaker 2: really is prepping itself for doing this. The only problem

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Speaker 2: is it's all come to a bit of a halt

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Speaker 2: because of the typhoon that hit Taiwan the last couple

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Speaker 2: of days, a massive typhoon which has seen a couple

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Speaker 2: of ship sink around the island. So that means they've

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Speaker 2: had to pull back on some of these war games.

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Speaker 2: But China will no doubt be watching this very very closely.

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Speaker 1: Peter, it's good to talk to you. Thank you so much.

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Speaker 1: As always, look forward to talking to you next week.

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Speaker 1: That's Peter Lewis out Asia Business corresponding For more from

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Speaker 1: Hither duplessy Alan Drive, Listen live to news talks it'd

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