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Speaker 1: Let's get to our guest. Ferry Boards most Ran, director

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Speaker 1: at the Institute of Global Finance, on the line from

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Speaker 1: Sydney Ferry Boards. Thanks for being with us. I'm looking

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Speaker 1: at the data that we're just now getting from China.

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Speaker 1: Not un well, it's a little weak, I guess, not

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Speaker 1: unsurprisingly with the retail sales number going negative, the street

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Speaker 1: was looking for some positivity. Is this all COVID related?

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Speaker 1: Do you think mainly? I would say yes. I think

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Speaker 1: as we know, a number of cities been affected by

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Speaker 1: zero COVID policy, and naturally you could expect that if

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Speaker 1: you like a bit of downtown, if you like in

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Speaker 1: some of the activities in China. And of course we

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Speaker 1: know that economic growth in China this year hasn't been strong,

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Speaker 1: and the expectations are that hopefully next year the situation

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Speaker 1: could get better and economic growth could go a bit

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Speaker 1: higher than three point eight percent which was the last quarter,

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Speaker 1: hopefully to something around four and half percent if you like,

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Speaker 1: for next year, do you anticipate that this week data

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Speaker 1: could motivate policymakers to perhaps speed up the process of

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Speaker 1: relaxing COVID restrictions. That's exactly the point, that's right, and

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Speaker 1: I think we are now getting signals that the policymakers

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Speaker 1: are considering that the fact that the delegation of China

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Speaker 1: now is in G twenty and can see how basically

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Speaker 1: it is if you like safe to manage life with

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Speaker 1: covert I think there would be I would say, some

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Speaker 1: movement to ensure that they can basically balance if you like,

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Speaker 1: the restriction versus economic activities. Yeah, so away from COVID,

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Speaker 1: I think sentiment has also been impacted by the collapse

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Speaker 1: of the property market, and we know now as a

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Speaker 1: result of the newsom Friday of last week, that Beijing

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Speaker 1: intends to provide a little bit of support where the

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Speaker 1: property market is concerned. Do you think this is going

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Speaker 1: to improve in a meaningful way consumer sentiment in China?

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Speaker 1: I think so, I would say definitely. I mean, Chinese

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Speaker 1: economy really didn't have a great time over the last

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Speaker 1: year or so, and definitely supporting the housing industry and

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Speaker 1: the construction in general in China is going to stimulate

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Speaker 1: economy and also it could increase the consumers sentiments and

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Speaker 1: confidence if you like, for them to spend money. I

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Speaker 1: would say they are the measures that they are now

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Speaker 1: considering as part of incentivizing consumers as well as exporters

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Speaker 1: to increase their activities and verry boys. I want to

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Speaker 1: return to what he was talking about their that meeting

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Speaker 1: between President's Biden and she. The photo of I found

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Speaker 1: quite telling. I can't remember ever seeing she jumping smile

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Speaker 1: quite so broadly. Joe Biden says, this isn't a comby

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Speaker 1: our moment, but which economy needs a though in relations

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Speaker 1: more right now? Um, Well, basically I think they both

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Speaker 1: did very well, I would say, and the spirit of

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Speaker 1: the meeting appears to be fairly constructive and positive, and

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Speaker 1: the signals we're getting from I think both parties. I mean,

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Speaker 1: Joe Biden had a press release, press conference after the summit,

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Speaker 1: and of course we've seen some statements from Chinese officials

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Speaker 1: foreign ministry. I think all indications are that I think

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Speaker 1: it's a good star arting point. But what we need

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Speaker 1: to know is whether they are going to, if you like,

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Speaker 1: follow up as they've suggested with some of the agreements,

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Speaker 1: and over time they are going just to basically abide

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Speaker 1: by some of the in principle agreements. If you like,

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Speaker 1: technology is a big sticking point. We know that the

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Speaker 1: Biden administration has put very tough restrictions on access of

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Speaker 1: very sophisticated technology, particularly as it relates to semiconductor production.

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Speaker 1: To what extent does this have the ability if these

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Speaker 1: restrictions do remain in place to kind of significantly curtail

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Speaker 1: China's ambitions when it comes to advanced technologies. Well, there

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Speaker 1: is no question that even if there's been a if

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Speaker 1: you like, a constructive meeting between the two leaders, it

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Speaker 1: doesn't mean that some the trade retrictions are going to

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Speaker 1: be removed. And I think, as you suggested, all indications

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Speaker 1: are that, as also the President Joe Biden mentioned, competition

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Speaker 1: will continue on and behind the competition there would be some,

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Speaker 1: if you like, non tariff and other measures to restrict,

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Speaker 1: if you like, some of the flow of commodities and goods.

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Speaker 1: And I think for that reason, I don't think we

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Speaker 1: need to read too much with regard to semiconductors issues

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Speaker 1: as a consequence of the current summit, And I think

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Speaker 1: we should just really be mindful whether there would be

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Speaker 1: a better bilateral trade relationship between these two countries in

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Speaker 1: the months and in effect years ahead. Later today, there

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Speaker 1: will also be a meeting between She's in pain and

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Speaker 1: Australian Prime Minister Anthony Alban easy, and I'm wondering where

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Speaker 1: you might place the odds of a relaxation of the

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Speaker 1: twenty billion dollars worth of trade strikes against Australia and

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Speaker 1: what kind of message that might send to the rest

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Speaker 1: of the region. Yes, I think the fact that there

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Speaker 1: is no precondition for this meeting is I think it's

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Speaker 1: very constructive approach because it allows China to look at

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Speaker 1: the issue of trade with Australia and as you mentioned,

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Speaker 1: a significant amount of fund and resources which have been

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Speaker 1: basically pulled out of the Australian economy. And I think

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Speaker 1: it is in All indications are that it is possible

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Speaker 1: that there could be some relaxation of trade between these

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Speaker 1: two countries. But good news is it could be done

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Speaker 1: in a way that both countries could feel they are

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Speaker 1: the winnings as their consequence of them. All right, Farry Bosmacharion,

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Speaker 1: Director at the Institute of Global Finance, thanks so much

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Speaker 1: for joining us with your insights today.