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Speaker 2: Jill Diesis who joins us Bloomberg China Eco Gov editor
Speaker 2: for the big meetings this week, the two sessions. So
Speaker 2: we've talked a lot about this generally, Jill, let me
Speaker 2: ask you something a little more specific here.
Speaker 3: Can we expect a.
Speaker 2: Kind of doubling down on the commitment from Chinese policymakers
Speaker 2: to become self sufficient in some key areas like AI
Speaker 2: and semiconductors and high tech?
Speaker 4: Well, yes, Brian. I think the one thing to keep
Speaker 4: in mind with this National People's Congress that we're gearing
Speaker 4: up for here is that a lot of these policy
Speaker 4: positions were likely charted out in December when key leaders
Speaker 4: met and kind of puddled together and laid out what
Speaker 4: the big priorities would be for twenty twenty four. We
Speaker 4: know that you know economic sustainability is certainly a major
Speaker 4: target for this year. We know that they really really
Speaker 4: want to play some big emphasis on growth, but a
Speaker 4: lot of those you know, mid to long term goals
Speaker 4: for China also rely on becoming more self sufficient, as
Speaker 4: you said, in particular areas like technology. We've seen, you know,
Speaker 4: over the last couple of years, a bigger push toward
Speaker 4: investments in electric vehicles, for example, or renewable energies, advanced technologies,
Speaker 4: those kinds of things. So I imagine that is going
Speaker 4: to continue to play a role in top policymakers thinking
Speaker 4: as they sort of you know, announced this big agenda
Speaker 4: for this year. Of course that the big balance, the
Speaker 4: tricky balance here for them, is going to be balancing
Speaker 4: those priorities against this need to also make sure that
Speaker 4: economic growth is sustainable for the course of the year.
Speaker 1: So, Jill, aside from espousing a lot of nationalism, which
Speaker 1: would be expected, I'm wondering whether our leadership is going
Speaker 1: to make any effort to be empathic, to say to
Speaker 1: the population overall, hey, we know that it's been challenging.
Speaker 1: We know that you're having a tough time believing in
Speaker 1: what we're doing. Maybe maybe that's an extreme example, but
Speaker 1: at least to kind of mirror the reality a little
Speaker 1: bit to saying, yeah, things are tough, we're on the case.
Speaker 4: Well, Doug, I think that at this point it would
Speaker 4: actually be a bit of a surprise if they go
Speaker 4: into a ton of details about economic challenges to say
Speaker 4: the least. But yeah, look, I think that you know,
Speaker 4: we've seen some measures. I mean, you know how this
Speaker 4: goes that Beijing is not necessarily you know, ever been
Speaker 4: incredibly transparent or candid about a lot of the ways
Speaker 4: in which they outline policy. A lot of it is more,
Speaker 4: you know, kind of plays out in actions that they take.
Speaker 4: For example, when we think back to just you know,
Speaker 4: this big multi trillion dollars doc route that we've been
Speaker 4: through within the past, you know, within the past eighteen
Speaker 4: months or so, and then a lot of the conversations
Speaker 4: or you know, a lot of the discussion around that
Speaker 4: within January February, what we saw in China in terms
Speaker 4: of reaction to that and acknowledgment of how much that
Speaker 4: was you know, an issue within the economy, within the
Speaker 4: stock markets, was you know, this big giant change at
Speaker 4: the top, you know, firing the market regulator or replacing
Speaker 4: with someone else. We saw a lot of you know,
Speaker 4: language from Premier Leagu Chong and others saying, you know,
Speaker 4: talking about the need to help. So I'd imagine that
Speaker 4: it would come in something in the form of something
Speaker 4: like that that feels you know, a little bit more,
Speaker 4: you know, Okay, then, yeah.
Speaker 2: I was chuckling as well, because you know, it's hard
Speaker 2: to think of Hijin Ping as an empathetic leader, you know,
Speaker 2: walking walking through the neighborhoods. You know, I feel your pain.
Speaker 2: I'm here to help. And Bill Clinton but but you know, yeah, exactly.
Speaker 2: But but actually I think Doug was spot on. I
Speaker 2: think in some way that's what investors are hoping for,
Speaker 2: that we'll get some sort of maya kulpa in a
Speaker 2: sense from policymakers that that you know, they want to
Speaker 2: make some changes, they want to make life a little
Speaker 2: bit easier for consumers. I'm just wondering. You know, we've
Speaker 2: seen a bounce in property here in Hong Kong after
Speaker 2: we removed a lot of these restrictions. Now they've done
Speaker 2: something of the sort in China, but maybe not quite
Speaker 2: as much across the board. Can we expect perhaps a
Speaker 2: few strong moves on property.
Speaker 4: I look bright and I think that I think that
Speaker 4: investors ultimately want a lot of things out of the
Speaker 4: Chinese government that they're not necessarily going to receive. And
Speaker 4: you know, I mean, we've seen that optimism play out
Speaker 4: time and time again over the past couple of years,
Speaker 4: only to be met with some disappointments. I will say,
Speaker 4: when it comes to the property sector, I'm not really
Speaker 4: sure that you would see massive amounts of new you know,
Speaker 4: you know, massive support for the property sector, a bunch
Speaker 4: of you know, unconventional measures to sort of help move
Speaker 4: things along. But we have seen I will I will
Speaker 4: acknowledge that we have seen Beijing, you know, take some
Speaker 4: measures already that at least, you know, it implied that
Speaker 4: they are thinking about new ways in which they need
Speaker 4: to you know, sort of transform the sector. I mean
Speaker 4: there's a new housing model that Beijing has been promoting
Speaker 4: fairly recently, involving building a portable housing, renovating urban villages.
Speaker 4: That could be something that comes up at this NPC.
Speaker 4: We've seen them also tap into different forms of funding.
Speaker 4: We have policy banks to try to facilitate a little
Speaker 4: bit more investment for the sectors. So through the through
Speaker 4: the people think of China. So there are some measures there.
Speaker 4: I'm just not really sure that we're going to see
Speaker 4: anything sort of radically new announced at this particulars.
Speaker 1: Yeah, so chill when it comes to government spending, do
Speaker 1: we know what we're likely to hear in terms of
Speaker 1: a deficit, you know, the amount of GDP that would
Speaker 1: I guess be sacrificed for a deficit.
Speaker 4: Yes, this is a really interesting one, Doug, and I
Speaker 4: think that probably one of the things that I'm most
Speaker 4: keen to look out for at the NPC this time around.
Speaker 4: So usually the government or historically the government hasn't really
Speaker 4: liked to see that fiscal deficit ratio so depth the
Speaker 4: GDP rise above three percent. That's been kind of a
Speaker 4: fairly fixed line for the government to consider. We did
Speaker 4: see that change though around the middle of last year,
Speaker 4: this is around October or so, where they made a
Speaker 4: very unusual media revision to the budget to essentially raise
Speaker 4: it to about three point eight percent. As they were
Speaker 4: you know, looking at you know, issuing a bit more
Speaker 4: sovereign debt sort of helped with an infrastructure projects. Now,
Speaker 4: the size of that, the amount actually you know, issued
Speaker 4: in debt wasn't massive by any stretch, but I think
Speaker 4: that it did signal something of a sea change in
Speaker 4: this philosophy about how much the central government actually actually
Speaker 4: has to help a lot of these debt ridden local
Speaker 4: governments with with spending and such. A lot of economistsy
Speaker 4: thinking that at this point, for the NPC, we might
Speaker 4: actually see them just chart the years start out saying,
Speaker 4: you know, maybe we'll we'll be willing to bend the
Speaker 4: rules a bit on that three percent line. Maybe we
Speaker 4: see something like that three point three percent physcal deficit ratio.
Speaker 4: So I think that that's that that's a really good
Speaker 4: one to look out for.
Speaker 3: I'll throw you a little bit of a curve ball. Demographics.
Speaker 2: Uh, is there a chance that we might see something
Speaker 2: along the lines of incentivizing young couples to have more children?
Speaker 4: Oh gosh, that's an interesting one. Yeah, I'm not sure.
Speaker 4: I think that, you know, certainly, there's been a lot
Speaker 4: of challenges to uh, you know, population growth within China.
Speaker 4: We you know, obviously saw indias or past China's the
Speaker 4: world with populist country. We've seen, you know, a lot
Speaker 4: of concerns about falling birth rates and the fact that
Speaker 4: you know, the removal of one child policies several years ago,
Speaker 4: and some other incentives haven't really done much to move
Speaker 4: the needle. I'm not I wonder whether that would actually
Speaker 4: come out of the NCC. It's a good question because
Speaker 4: what we have seen in the past from China is,
Speaker 4: you know, some more iterative policies announced on sort of
Speaker 4: an ad hoc basis. I think last year, maybe the
Speaker 4: year before, there were some announcements to try to encourage
Speaker 4: people to have more children, whether in the form of
Speaker 4: incentives or breaks on taxes and stuff like that. I'm
Speaker 4: not sure whether that's going to come out of the MPC,
Speaker 4: but I do think that that is pretty top of
Speaker 4: mind for policy makers because of a lot of those
Speaker 4: concerns about long term impacts that declining populations and Moller
Speaker 4: birth ranks can have on the economy.
Speaker 1: Have family for formation and the rest very quickly. Jill
Speaker 1: thirty seconds, what about military spending.
Speaker 4: Yes, I think that that's another one to look back for.
Speaker 4: I mean, look, national security is top of mind also.
Speaker 4: I mean there's many things that are top of mind.
Speaker 4: I feel for the Chinese government, but we've seen under
Speaker 4: sheet and pain obviously much more interest in building up
Speaker 4: national security. Will see if that translates into more militarios prodict.
Speaker 3: Jill, Thank you, Jill.
Speaker 2: Lisa Sloomberg, China ECOGOV editor, joining us in our studios now,
Speaker 2: Ben Sharple's.
Speaker 3: Bloomberry Energy and Commodities Editor.
Speaker 2: Ben. So, once again we see a little bit of
Speaker 2: back and forth between US and China.
Speaker 3: This is yet another one.
Speaker 2: There's something like three hundred and sixty million barrels of
Speaker 2: oil in the spr Not sure that the million barrels
Speaker 2: that China threw through its subsidiary Unipac America that Sinopek
Speaker 2: bought would make that much of a difference. Is this
Speaker 2: more symbolic or is this quite serious a development like this?
Speaker 5: I think you're right, Brian, it's more symbolic. It's politics
Speaker 5: at play here, point scoring if you like. You know,
Speaker 5: the White House pointed out that by law, the Energy
Speaker 5: Department is required to sell to the highest bidder, even
Speaker 5: if it's a foreign country, foreign country like China. So
Speaker 5: you've had during the Trump administration, they sold barrels to
Speaker 5: Petro China, which one of the biggest producers or consumers
Speaker 5: in China itself, and at the moment, the Energy Department
Speaker 5: is actually trying to fill the SPI. There was a
Speaker 5: huge release in twenty twenty two by the Biden administration
Speaker 5: to tame prices following the Russia's invasion of Ukraine. So
Speaker 5: it's not an actual They're not trying to sell barrels
Speaker 5: at the moment, They're trying to fill it, refill it.
Speaker 5: It's near a forty year low, So I think you
Speaker 5: hit the nail on the head early more early on.
Speaker 5: It is symbolic. It's politics a play in the meantime.
Speaker 1: When I think of China demand, I think of places
Speaker 1: like Iran, I think of places like Russia supplying the
Speaker 1: Chinese system. Are those sources still intact?
Speaker 5: Most certainly, China is a very opportunistic buyer, and they
Speaker 5: look for the cheapest barrels, and for those countries like
Speaker 5: Russia and Iran that have the barrels that have a
Speaker 5: range of sanctions on them, China is the logical place.
Speaker 5: There is a little bit at play at the moment
Speaker 5: that Russian barrels are getting a little bit cheaper than
Speaker 5: Ananium barrel, so there's almost a sort of head to
Speaker 5: heads of scenario going on there. So China is getting
Speaker 5: barrels even cheaper from both those those out there. So yeah,
Speaker 5: I know, if you want to sell barrels and you're
Speaker 5: selling it cheap than China, it's a place to go.
Speaker 2: So I think I mentioned the NPC meetings becaus we'll
Speaker 2: get the growth target. Somewhere around five percent is what's expected.
Speaker 2: I think a lot of people would be curious about
Speaker 2: how strong the demand is for oil in China, whether
Speaker 2: or not that's a decent barometer of economic growth there.
Speaker 2: And we know that China produces its own oil through
Speaker 2: Scenic Offshore and PetroChina Unshore and such, but they still
Speaker 2: import a lot of oil. How strong is the is
Speaker 2: the demand in China?
Speaker 5: China is the barometer in some sense of oil demand.
Speaker 5: It is the biggest importer in the world of oil.
Speaker 5: And what's happening in the property sector there the economy
Speaker 5: is of great concern for producers and people and sellers
Speaker 5: of oil. You had CNPC, the largest energy is China's
Speaker 5: largest energy producer, last week giving its lowest forecast in
Speaker 5: around a decade for all demand this year. Caveat being
Speaker 5: that it's coming off a high base in twenty twenty three,
Speaker 5: but a soft economy, the transition to electric vehicles. It's
Speaker 5: eating in to all demand for China at the moment,
Speaker 5: So it is course of concern and you can see
Speaker 5: that being reflected in prices at the moment.
Speaker 1: Yeah, it's interesting that you make that point because obviously
Speaker 1: this week we're going to learn a lot more on
Speaker 1: economic policy as the National People's Congress gets underway. But
Speaker 1: to the point about green technology and sustainable sources of energy,
Speaker 1: I would imagine as time goes on, China is going
Speaker 1: to become less and less a big buyer on the
Speaker 1: global market of crude and distalates. Is that a fair statement.
Speaker 5: That's a fair statement. But you also have to remember
Speaker 5: that China energy security is a big thing for China,
Speaker 5: so they will still keep buying and still keep buying
Speaker 5: crude to process into fuels. There will still be an
Speaker 5: element there. But if you look at it now and
Speaker 5: the transition, especially to electric vehicles, it's huge in China
Speaker 5: and it is displacing things like gasoline demand. You've had
Speaker 5: the CNPC saying that gasoline demand in China make peak
Speaker 5: this year. There's been a few forecasts over the last
Speaker 5: couple of years of the peak. They've called it early,
Speaker 5: but it's certainly looking like that gasoline demand is starting
Speaker 5: to wane in China.
Speaker 2: Then the other big story this morning on the oil
Speaker 2: front was OPEK Plus extending its oil cuts until the
Speaker 2: end of June. Speaking of Symbolis, I mean, what is
Speaker 2: the gap between what they say they're doing and you
Speaker 2: know how religious are these cuts with the actual output?
Speaker 5: Well, you know, the devil is in the detail there.
Speaker 5: We have to wait to see the numbers, the monthly
Speaker 5: numbers that come out from OPEC to see whether they
Speaker 5: are adhering to it. It was largely expected. The market
Speaker 5: has some problems with China demand at the moment, it
Speaker 5: has some problems with non OPEC supply, especially US shelled
Speaker 5: supply increasing. So there are those elements where it is
Speaker 5: putting pressure on the price. And you saw the reaction
Speaker 5: in prices today. It didn't do much right, It hasn't
Speaker 5: done much at all, and that's largely because the market
Speaker 5: is expecting it. Oil has traded in a narrow, tight
Speaker 5: range of about ten dollars.
Speaker 3: A barrel this year. Is the market just saturated now?
Speaker 5: The market is? You know what the market is looking
Speaker 5: out for is probably the question that a lot of
Speaker 5: people are asking. If you look at prompt time spreads.
Speaker 5: It is tightening. It is showing a tightening in the market.
Speaker 5: But usually when OPEK release says something like this, announces
Speaker 5: something like this, you get a strong reaction. But we're
Speaker 5: not seeing it this time, so there is some caution
Speaker 5: in the market at the moment.
Speaker 1: Are most of the refiners in China set up to
Speaker 1: work with sweet crude or sour crude?
Speaker 5: Look, you know, the Chinese are very good at adapting
Speaker 5: to whatever sources that they can get. You know, you've
Speaker 5: got the teapots, You've got a lot of the big
Speaker 5: new flash refineries that are huge in terms of global perspective.
Speaker 5: So you know, whatever crew that they need, they can
Speaker 5: adjust and they can work to process it because they
Speaker 5: are opportunistic bars and they use a lot of crew
Speaker 5: smart money.
Speaker 2: Now what's it saying for WTI a barrel. It's at
Speaker 2: eighty right on the button just about over the course
Speaker 2: of this year.
Speaker 3: I mean it's tough to say. It's tough to say.
Speaker 5: Yeah, if you look at the time spreads and you
Speaker 5: take that as a measure the market, it is showing
Speaker 5: the market tightening. So I would say prices are going
Speaker 5: up how far?
Speaker 3: How quickly.
Speaker 5: Is the big question here because there are competing factors.
Speaker 5: There's headwindsor's tailwinds. There's China, there's no OPEC supply. There's
Speaker 5: also the geo politics in the Middle East that are
Speaker 5: throwing up that element. So if if I had to
Speaker 5: make a call, I'd say it's going up, but it's
Speaker 5: going up slowly, maybe.
Speaker 3: Eighty to eighty five or something like that.
Speaker 2: All right, Ben, thanks very much, real pleasure. Ben Sharples,
Speaker 2: Bloomberry Energy and Commodities Editor. We're joined by I mentioned
Speaker 2: pay political scientists and fellow at Claremont McKenna College, and
Speaker 2: the Bloomberg opinion columnists.
Speaker 3: So mention.
Speaker 2: It's no small thing really to say that the economy
Speaker 2: will be the top priority. But I think a lot
Speaker 2: of investors would like to see, you know, put your
Speaker 2: money where your mouth is. Do you agree with that
Speaker 2: notion that we put there at the end of the
Speaker 2: story about basically economists expecting you know, growth friendly stuff
Speaker 2: but you know, no real big statement.
Speaker 6: Yeah, I think you're basically right, because why people hear
Speaker 6: a bunch of retic trying to boast of people's confidence
Speaker 6: in the leadership, but we are doing such empty talk
Speaker 6: is not going to do any anything to make people
Speaker 6: confident about the Chinese economic prospects. What we need is
Speaker 6: really a set of very specific policies. I think this
Speaker 6: is where the Chinese government will be challenged during the
Speaker 6: next ten days when the annual session of the parliament
Speaker 6: is actually going on.
Speaker 1: Minchen, Do you think that there will be an honest
Speaker 1: assessment of how weak the economy is right now? Will
Speaker 1: leadership kind of admit the challenges?
Speaker 6: Yeah, it's interesting. I think they will do themselves a
Speaker 6: favor by being honest, but this is unlikely. They're going
Speaker 6: to put out a brave phase to put the Spain
Speaker 6: on the economy, and they've been doing this for the
Speaker 6: last year, frankly, but the market has not turned. So
Speaker 6: I think we all hope they will be honest, but
Speaker 6: it's unlikely to happen.
Speaker 2: Mintion, you said that what we need, you know, what
Speaker 2: they need is very specific policies. They believe that they
Speaker 2: have been coming out with very specific policies, and in fact,
Speaker 2: it seems like investors are saying it's too specific. What
Speaker 2: we need is more muscle, and I guess you're suggesting
Speaker 2: it's not likely to happen.
Speaker 6: Yeah, well, my expectations are very low. Of course, I
Speaker 6: would like to be surprised. On the upside, I think
Speaker 6: what they'd be doing is some dribble dripping a little
Speaker 6: bit of stimulus, cutting reserve rates, cutting some interest rates.
Speaker 6: They're not putting real money, which is fiscal spending on
Speaker 6: the line. I think what is really needed is fiscal spending.
Speaker 6: We're not talking about huge package, but say two additional
Speaker 6: percent going into the pockets of consumers rather than building
Speaker 6: extra infrastructure, extra real estate.
Speaker 1: Does that necessarily mean that the government will allow the
Speaker 1: budget deficit to increase in a meaningful way.
Speaker 6: Yes, I think if they want to stimulate the economy,
Speaker 6: if they really want to change people's perception of groom
Speaker 6: and doom, have to incur a much bigger budget deficit. Otherwise,
Speaker 6: if it go forward with needed gross the budget deficit
Speaker 6: will continue to grow, because right now they do have
Speaker 6: a budget deficit of something like a leaf nominally four
Speaker 6: to five percent real term, probably close to eight percent,
Speaker 6: which is huge. If the growth goes up, the budget
Speaker 6: deficit will actually come down.
Speaker 2: So we'll probably hear from Lee Cheong, you know, these
Speaker 2: types of words that the economy is the priority and
Speaker 2: that you know, they'll be pulling out all the stops
Speaker 2: to get it moving. But do you think that Hi
Speaker 2: Jinping himself has the same sort of commitment to the
Speaker 2: economy And is there any sort of vehicle from which
Speaker 2: he can, you know, make those comments or statements.
Speaker 6: Oh yes, I think this is where the next few
Speaker 6: days will be really interesting time to watch because according
Speaker 6: to protocol or custom, she is going to visit several
Speaker 6: regional delegations and he'll give a speech. He's not going
Speaker 6: to give a long speech at the plenary session, but
Speaker 6: he's going to give a speech at regional sessions and
Speaker 6: we'll see how what he says about economy and what
Speaker 6: he says is really sort of going to be sort
Speaker 6: of a put on the microscope.
Speaker 1: One of the things that I think leadership has been
Speaker 1: challenged with is abandoning the old style playbook in favor
Speaker 1: of something that's a little bit more contemporary. Speaking of
Speaker 1: President She, one of the mantras that he has been
Speaker 1: issuing over the last year and a half at least
Speaker 1: is this notion of high quality economic development. Do you
Speaker 1: think that's going to remain key? Is that a critical theme?
Speaker 3: Oh?
Speaker 6: Yes, this is the mantra, this is the slogan, but
Speaker 6: you know, his understanding of high quality differs from a
Speaker 6: lot of other people's understanding of high quality. What he
Speaker 6: means by a high quality is ipech manufacturing, but that
Speaker 6: is a small segment of the Chinese economy. I think
Speaker 6: real high quality is overall productivity, rising income across the board.
Speaker 6: That is true high quality. But that is unlikely to
Speaker 6: be the government's policy mention.
Speaker 2: If that language isn't right, you know, let's pivot to
Speaker 2: what's the kind of language that global investors would need,
Speaker 2: because you know, there's really been a sense here of
Speaker 2: late that investors are kind of detaching from China. They're
Speaker 2: giving up to a certain degree. You know, you just
Speaker 2: hear it in comments from strategists, and you know outside
Speaker 2: the country and the West of people talking about the
Speaker 2: attraction of the Chinese economy is getting less and less
Speaker 2: and less. What's the type of language that policymakers would
Speaker 2: need to use to change that?
Speaker 6: Yeah, I think the three kinds of language will probably
Speaker 6: be welcomed by investors. First is a much less emphasis
Speaker 6: on security, because if you talk about security then people
Speaker 6: get scared. And Second, a much more emphasis on the
Speaker 6: private sector because so far the government has been pouring
Speaker 6: money into the state sector, and sud is a much
Speaker 6: more welcoming attitude to following investors opening up sectors of
Speaker 6: the economy. I think if they do this, the perception
Speaker 6: of China's leadership and its economic policy will change.
Speaker 1: What about the government's commitment to increase military spending, what
Speaker 1: are you expecting to hear on that front.
Speaker 6: I think probably they're going to announce of a high
Speaker 6: single digit increase as last years around seven to eight percent.
Speaker 6: They can no longer the double digit increases, but given
Speaker 6: the overall security environment, they will have to sort of
Speaker 6: keep up the pace of military spending.
Speaker 2: You know, here in Hong Kong and Shine we have
Speaker 2: kind of like a little microcosm of studying the Chinese
Speaker 2: economy through visitors here. Now, around the time of the
Speaker 2: Chinese New Year, there were tons and tons of mainland
Speaker 2: visitors here, but we noticed that, you know, they were
Speaker 2: not spending here and not staying in hotels for very long.
Speaker 2: Sometimes they're only coming on day trips. And you know,
Speaker 2: if you go out on the trails, you'd see a
Speaker 2: lot of Mainlanders out for hikes, but that means they're
Speaker 2: not shopping at Gucci and Louis Fitton. So when I
Speaker 2: asked you that question about you know, what would foreign
Speaker 2: investors need to hear about the language?
Speaker 3: And I thought you gave an excellent answer.
Speaker 2: But it's really domestic investors and domestic consumers that are
Speaker 2: the most important to Chinese economy.
Speaker 3: What do they need to hear?
Speaker 6: I think that they just hear from the government something
Speaker 6: like this, we feel your pain and we're going to
Speaker 6: do something about it for real. So I think a program,
Speaker 6: as I have written in Bloomberg that consume a voucher
Speaker 6: program every person gets a thousand dollars which can be
Speaker 6: applied to consumption. That kind of program will share people
Speaker 6: up because this would really put money in people's pocket.
Speaker 6: Then they will start spending again.
Speaker 1: What about China's role on the world stage very quickly?
Speaker 1: Is it going to be the role of the leadership
Speaker 1: here to acknowledge a more balanced approach with the rest
Speaker 1: of the world, or is the focus going to be
Speaker 1: more inward looking.
Speaker 6: I think they have to be more inward looking because
Speaker 6: the time when they can actually spend money waste money
Speaker 6: outside the borders of China is over.
Speaker 2: All.
Speaker 3: Right, I mean sheane should be a big week.
Speaker 2: We hope to talk to you plenty over the next
Speaker 2: couple of weeks as we analyze what we get out
Speaker 2: of the two sessions, the CPPs which gets underway today,
Speaker 2: the NPC which starts tomorrow, and of course the work
Speaker 2: report from Lee Chan will be quite interesting. Mentioned Pay's
Speaker 2: political scientist and a fellow at Claremont mckinna College out
Speaker 2: in California, and a Bloomberg opinion columnists.
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