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00:00:04of
00:00:09You're watching TRT World with me John Paul Davis,
00:00:11a reminder now of our main headlines. Yemen's
00:00:14ancerolties say they've targeted Riyad's
00:00:18of international airport and base in the south
00:00:22of of the country in the past few hours. Saudi
00:00:22me Arabia has confirmed that Kames Mushad base was targeted and
00:00:26of says the danger has now passed. It's also vowed a strong response. to recent
00:00:30hoothy attacks on Riyad's main international airport and
00:00:34extended the suspension of all flights to and from its capital
00:00:37city. The event of recent weeks
00:00:41are serious. Our response must be equally
00:00:45serious.
00:00:46of Energy security cannot be taken for
00:00:49of granted.
00:00:50of For Saudi Arabia, this circum this circumstances have tested
00:00:54our infrastructure, our
00:00:57institution, our people.
00:01:00of and our resilience, they have also
00:01:04tested decision made long before the present
00:01:07crisis. An Israeli drone attack
00:01:11has targeted
00:01:12a refugee camp in the south of Gaza, killing at least two Palestinians.
00:01:16Paramedics
00:01:17of say several people were wounded in the strike on the camp near Raffa, which is home
00:01:21to
00:01:21of thousands of Palestinians who've been displaced multiple times during Israel's
00:01:25three-year war. US immigration
00:01:29officials. raided the home of Somali born Congresswoman Ilan
00:01:32Homer in the early
00:01:34of hours of Monday. Omar is described or described the raid as
00:01:38an active intimidation vowing
00:01:40in not to be silenced. The investigation reportedly concerns her
00:01:44immigration
00:01:46a paperwork. Russia is continuing to attack Ukraine's
00:01:49energy facilities that despite the so-called energy cease fire
00:01:53declared by US President Donald Trump on Sunday. Russia has yet to
00:01:57comment on Trump's claim, but Ukrainian president. Zelensky says
00:02:01several gas facilities were hit since his cease far
00:02:04announcement,
00:02:08and hundreds of supermarkets in France have been hit by an unprecedented cyber
00:02:12attack that raised fridge and freezer temperatures to
00:02:16in 50 of degrees celsius, all fires and widespread food spoilage have
00:02:20been reported with losses
00:02:21of estimated at the millions of dollars. Some
00:02:23of the country's biggest supermarket change were hit including Carfour, which
00:02:27said 80 of its stores
00:02:29me were affected. and the news continues on
00:02:33TRT World after the
00:02:37of newsmakers.
00:02:47After two days of talks in Beijing, have the EU and
00:02:51China averted a trade war. Intensive consultations
00:02:55may cut EU imports of Chinese EVs by half, but does that ease
00:02:59Beijing's complaints? of protectionism and can the adjustment help
00:03:03correct Europe's $1 billion a day trade deficit
00:03:12in
00:03:14of
00:03:27When US President Trump first launched his tariff trade. war, some
00:03:30predicted the EU and
00:03:32of China would lean into each other to offset the damage. Instead, the two
00:03:36a are now working to avert a trade war
00:03:42of of their own. Over the weekend, crucial talks in Beijing produced what seem like some break-through measures, but no break-through deal.
00:03:46China feels it's being blamed for the EU's economic problems when Beijing
00:03:49should be seen as a partner in solving them, but can the two
00:03:53really find a balance that benefits all, with a free-market model on one
00:03:57side, and a massive mostly state control. economy on the
00:04:01other. Here's a look: trade wars between China and the
00:04:04US may have received more headline coverage, but the EU
00:04:08has also grown increasingly wary of trade imbalances with
00:04:12China in recent years. As massive tariffs hit
00:04:16Chinese exports to the US, China increasingly turned
00:04:19of to Europe as an export market, but that presented
00:04:23Europe with a problem. 1 billion Euros every
00:04:27day. That was Europe's trade deficit with. china last
00:04:30year and this gap is growing even further. for
00:04:34too long we have opened our market without getting the same access in
00:04:38china. for too long we have accepted
00:04:42unfair competition while European companies paid the
00:04:45price and for too long we have watched china
00:04:49test the limits of international law. the European
00:04:53parliament voted in october to touffen its stance on
00:04:57china. the 27 nation block. has long considered
00:05:01China's massive subsidies and surplus
00:05:04a exports, especially in car manufacturing as a major
00:05:07threat to European industries, but over the weekend,
00:05:11EU-China trade. talks may
00:05:13have helped soothe European anxieties. China's
00:05:17commerce ministry said the two sides agreed to explore the
00:05:20possibility of reducing tariffs on certain goods
00:05:24within the World Trade Organization
00:05:26Framework. The frequency and effectiveness
00:05:30these consultations have met our expectations. Both teams have
00:05:34engaged in very intensive and challenging discussions.
00:05:37Announcing the deal in Beijing, the EU trade commissioner said China
00:05:41had a reed to limit exports of hybrid electric
00:05:45vehicles after two days of high stakes
00:05:48negotiations. looking at the the period of four years
00:05:52and according to the projection we
00:05:55have that's more than a halfing
00:05:58the exports of
00:06:02hybrids and plugging hybrids into the
00:06:06European Union under no change scenario so i think
00:06:09by by this step we are actually preventing. several millions
00:06:13of cars
00:06:16exports from China to the European Union. In 2024, the
00:06:20EU imposed tariffs on fully electric Chinese
00:06:23vehicles, but China got around that by exporting hybrid
00:06:27electric vehicles instead. In the first half of 2026,
00:06:31Chinese EVs took around 10% the EU
00:06:34market, but for hybrids and specifically
00:06:38plug-in hybrid vehicles, one in four were Chinese brands.
00:06:43but if Brussels and all 27 nations approved the deal later this
00:06:46week, Chinese EV exports would fall to
00:06:49around 350,000, cut by more
00:06:53than half the projected exports over a 4-year period,
00:06:57starting at the end of 2027. China's commerce
00:07:01ministry said on Monday that the deal ensured Chinese
00:07:04companies had room to export and be stable
00:07:08while addressing the EU's realistic concerns, but
00:07:12Concerns about China extend well beyond electric
00:07:15cars. China has a critical chokehold on rare earth
00:07:19minerals which are crucial for manufacturing everything from
00:07:23computer chips to green energy infrastructure to weapons
00:07:27and complex technology. Brussels has
00:07:30proposed several measures to limit Chinese companies
00:07:33access to Europe's 450 million
00:07:37strong consumer market, but Europe provides Beijing
00:07:41a useful outlet for overproduction,
00:07:45and Europe also wants Beijing to open up Chinese markets
00:07:49to billions of dollars of European products. The true
00:07:53test of EU-Chinese trade corporation lies
00:07:56not just in electric vehicle agreements alone.
00:08:00The EU needs these vehicle sector agreements to
00:08:03signal further agreements yet to
00:08:31being with me, Earl, I'll start with you, you when you look at the
00:08:33numbers, of course the most standout statistic
00:08:37is that $1 billion a day trade deficit
00:08:41between the EU and china, but is is that alone,
00:08:45you know, enough for the EU to say that China is clearly
00:08:49behaving unfairly, or is that kind of shock headline, actually a bit
00:08:52deceptive? It's a great question, Andrean, and it's
00:08:56wonderful to to to be here with you again, um, I think it's
00:09:00fundamentally important to understand that the one billion is is really
00:09:03headline news in many ways, there are fundamental
00:09:07issues with both the EU and China
00:09:10in terms of trade. but I think it's important for us
00:09:14to to segregate their their untrade trade, unfair
00:09:18trade practices, but there's also the the basic notion that China
00:09:22has historically been able to produce goods at cheaper prices
00:09:26and that alone does not necessarily imply unfair
00:09:30trade practices. one the concerns that we're
00:09:33seeing now is countries like Germany that are
00:09:37seeing something like a the the US uh the city group
00:09:41president said that on her recent visit to Germany and Germany was
00:09:45losing something like 10,000 jobs a day due to
00:09:49unfair trade practices, if you do the math that's about 120,00 jobs
00:09:53a year, so that's significantly that's a significant issues
00:09:56when you look at the issue of Chinese EVs um
00:09:59historically um countries like Germany,
00:10:03Volkswagen for example where the were the industry standard um
00:10:06for for for cars over the last 40 years, however they weren't
00:10:10able to adopt,
00:10:12make the... necessary
00:10:13changes to shift from auto manufacturing into evs and as result
00:10:17Chinese local Chinese EVs were
00:10:20able to significantly take over the market make the
00:10:24necessary. changes so I think it's important to understand that
00:10:27that that dichotomy, not necessarily there are
00:10:31clear and inherent um just because there's
00:10:35a trade imbalance does not necessarily imply trade
00:10:38um unfair trade practices got it so I mean
00:10:42China you're saying in the case especially of EVs it it managed to
00:10:46innovate quickly so let ask yeah what do you
00:10:50make what do you make first of all of the talks that just concluded in
00:10:53Beijing and particularly the focus on EVs
00:10:56in the end
00:10:57that ended up being the headline uh as far as results were
00:11:00concerned, will it now hurt Chinese
00:11:04manufacturing, I mean can Beijing afford it? go
00:11:07ahead. well, I think um, I think,
00:11:11as mentioned before a trade imbalance, I
00:11:14doesn't automatically mean unfair trade practice, and also
00:11:18actually reflects, what European business and consumers
00:11:22choose to buy, many European consumers. by Chinese electrical
00:11:26vehicles, batteries and even solar panels, because they
00:11:30offer a competitive price and a good quality,
00:11:34so you know take BYD, for example, European drivers in
00:11:37Germany, the UK, France and Norway are choosing
00:11:41his cars because the price and the technology, and the company is
00:11:44now in building a plant in Hungary, which
00:11:47means will bring a lot of European jobs and also
00:11:51there is uh MG is started as a British British. brand
00:11:55morris on garages and today is Chinese owned and
00:11:59one the top selling Chinese owned car brands in Europe and many European
00:12:03drivers don't even realize it and all and all this you can
00:12:07help Europe achieve its own uh green transition goals as
00:12:10well so you know I think uh China's
00:12:13competitiveness didn't happen and also China's competitiveness didn't
00:12:17happen overnight it's the result of decades of investment
00:12:21in infrastructure supply chains talent and
00:12:25information combined with intense competition in its own
00:12:29domestic market, so Europe has its own challenges
00:12:32including high energy costs right now and
00:12:35slower and slower industrial innovation, these are real
00:12:39issues, but ts won't
00:12:40you know solve them, so I think protecting your market doesn't
00:12:44automatically make your own industries more competitive, it can simply mean
00:12:48you higher costs for consumers and more even more
00:12:52expensive green transition, so let ask: then, I mean, is the
00:12:56EU in part, to blame for its losses here, and is
00:13:00there a risk that it will actually punish
00:13:03consumers who prefer cheaper, but well-made
00:13:07Chinese models, according especially to what Serena was saying, uh, is it
00:13:11ready to punish consumers to create jobs?
00:13:15Well, the risk is there. I think that Europe
00:13:18spent decades consolidating the EU and the euro and we
00:13:22failed to recognize that China was becoming... huge
00:13:25superpower with a high level of innovation, with huge,
00:13:29of course economies of skills and suddenly we
00:13:33do realize that we had trouble, but the other thing is that
00:13:37referring to a question, we thought i would
00:13:41say 25 years ago that think to the euro there
00:13:45would be huge industrial consolidation in
00:13:48Europe, we thought that we would have huge chemistry
00:13:52industries, but name it in the banking. world,
00:13:55insurance, chemistry, all them, we failed to
00:13:59consolidate companies and we are still living with nation states,
00:14:03meaning that some countries are becoming weaker than other ones, france is a good
00:14:07example of that, and so we are more open to Chinese
00:14:10goods then we could have been if we had consolidated the
00:14:14EU, so I think that
00:14:16fundamentally, unless Europe
00:14:19decides to consolidate its own industries,
00:14:23will he will be in? with China, and when I
00:14:27walk down the streets in Brussels, I see more and more day by
00:14:31day Chinese cars, because as you just mentioned, people would
00:14:35prefer high quality and cheaper cars than German cars, but European
00:14:38industrial consolidation, that is a big ask.
00:14:42Bruno, I'm going to stick with you for second, because meanwhile EU
00:14:46ministers and representatives are back at work today and Brussels after these
00:14:50talks, what does the EU, what are they thinking
00:14:53now, and our EU
00:14:55member states at least united on an approach to
00:14:58China? I think they are not
00:15:01united, especially because some
00:15:05countries like Germany will will try to find bilateral
00:15:09agreements with China, that's a big danger for the EU as a
00:15:12whole, but also
00:15:14because we need to embrace
00:15:18globalization, and we cannot do that with weak
00:15:21oppositions, we cannot do that with
00:15:24the nation state. as we are acting today, so I think that Europe will
00:15:28still be at risk, and I hope that some EU
00:15:31countries will not prefer
00:15:34protectionism, and we see that no. emerging in
00:15:38Germany, but also in France, because that would be the end the
00:15:42intra-european globalization, but also with the extra
00:15:45European globalization, so
00:15:48there was a huge thinking process that should be in place in Europe, and
00:15:52also the last thing I would like to add is that we had two years
00:15:55ago, commissioner dragi, used to be the
00:15:59president the ECB, published his famous
00:16:02report, since then nothing has been done, although he was mentioning
00:16:06that innovation was key to success, we are still nowhere,
00:16:09so we we are really facing huge, huge
00:16:12changes. okay, i can see you
00:16:16notding, so so you agree as per
00:16:20what challenges the EU is fundamentally facing and not just its
00:16:24economy, but the health the EU-china trade,
00:16:28the EU-China trade relationship uh, and how that affects the entire
00:16:32EU? absolutely, and and it's a clear balancing
00:16:36act, I would agree with with Bruno, one the things right now is that
00:16:39Europe is not united, I mean you have Germany
00:16:43in many ways trying to head um visa v the
00:16:47United States um and trying to bargain for better
00:16:50reciprocity with the Chinese market um and at the
00:16:54same time uh while I agree with Serena that there
00:16:58are um China has made huge
00:17:01strides uh in their EV market, I mean there are
00:17:05clear examples where China. has used anti-dumping
00:17:09duties flooding the market with with cheap um
00:17:13products below their normal value um and that has
00:17:17an impact and or um stealing intellectual property
00:17:21rights now I think it is important that we define uh and and have
00:17:24clear evidence of those and when that there are those
00:17:28infractions that the EU be able to
00:17:31um do investigations into these
00:17:34Chinese EV vehicles the batteries
00:17:38themselves, but impose countervailing duties. i think the
00:17:42problem, the
00:17:43the the issues that have played the European Union, they that they they've
00:17:47operated too slow, they took invest take
00:17:51investigations for example, they first notified, they
00:17:54concluded in october 24 that there were these
00:17:58investigations, but then the official announcements on price
00:18:02commitments came out in January 2026, so i think it's important for
00:18:06europe to be able. to move faster, be more united
00:18:10when when when bargating and negotiating with China and really
00:18:14address these these these fundamental concerns. Right. Sarena,
00:18:18I want your response to that, and does it also come down to
00:18:22the difficulty in trying to reconcile a free market system that is the
00:18:25EU with, a state-controlled economy, so that they can
00:18:29try to trade more fairly,
00:18:31but at such huge scale.
00:18:35Well, as a mentioned. Maybe Europe should be
00:18:38like united uh more in in you
00:18:42know with dealing with the China, but what what I want to say when it
00:18:46comes to China eU relations, especially the so-called
00:18:50deal risking with China, even there's promoting
00:18:54some uh sort sort of wider EU China trade wars, I
00:18:58think the risk is real, but I think we need to be more
00:19:02clear about how that risk develops, because China,
00:19:05Beijing has consistently. that it doesn't want a trade war and
00:19:09prefers to resolve differences through dialogue and negotiation which the
00:19:13you know dialogue has just happened you know a
00:19:17couple of days ago when EU and China has reached a very
00:19:20good understanding of a hyber vehicles
00:19:24and and medical imports exports and etc. but that doesn't
00:19:28mean China will simply accept measures that undermine is
00:19:31legitimate interests if the EU expends its um trade
00:19:35defense measures China will have to respond. we've already
00:19:38seen the that dynamic in China's anti-doping
00:19:42investigation into imports of PNT from the EU,
00:19:46these are responses to specific trade measures, not
00:19:49escalation for the sake of for the sake of
00:19:53escalation, and that's said, I think if there's
00:19:56a wide wider trade war is still avoidable,
00:20:00because
00:20:01you know the economic ties are simply too deep between China and the
00:20:04EU. European manufacturers depend on Chines.
00:20:07components, materials and batteries, while Chinese
00:20:11exports rely on the European market, of course, so disrupting those
00:20:15links will be hurt business and consumers on both side,
00:20:19so um, I'd also be careful about how we use uh the
00:20:22term derisking, as I mentioned earlier, if measures keep
00:20:26expanding across sectors such as steel, medical
00:20:30devices, raw materials and automobiles, they may
00:20:34end up
00:20:34you know creating the very uncertainty, and they are which
00:20:38they are supposed to reduce, so I think so far the
00:20:42biggest danger isn't necessarily when dramatic breakdown
00:20:46between China and EU and it's a gradual escalation with each.
00:20:50side, you adding new restrictions until the costs become
00:20:54too high and the relationship becomes much harder to
00:20:57repair. right, there are so many measures to look at
00:21:01here, and bruno, you know, and we see over the weekend really, as we
00:21:05said, the big big headline was that there was this
00:21:08agreement that looks like it will be approved, specifically on
00:21:12EVs, so when we talk about EVs, there's another question
00:21:16I want to ask about whether it unfairly benefits.
00:21:20certain EU producer countries to the point that maybe it
00:21:24won't necessarily pass, because it would
00:21:27hurt consumers in other EU countries that would
00:21:31prefer to buy those cheaper Chinese cars that don't have
00:21:35the manufacturing base there, so is this,
00:21:39even this one thing
00:21:40we got out the weekend talks, is that a given that it
00:21:44will pass? you
00:21:47know, the first point and referring. whana just
00:21:51mentioned, i think that Europe cannot afford a trade war with China,
00:21:55that would be detrimental for both parties, and as you
00:21:58rightly mention, the ev,
00:22:02you know, provision may not pass,
00:22:05also because some country would probably benefit from that,
00:22:09but other ones no, so I'm talking about countries like France or
00:22:13Spain, Portugal, Italy, so I would be very careful about
00:22:16EVs, the problem, I think I would'
00:22:20China I would look at the problem with another angle, you
00:22:23know, if we are today competing about
00:22:26with the EVs, the question is to know
00:22:29how does it come that Europe could not increase its innovation level up to
00:22:33the one of China? That's a real question, so I do see
00:22:37competition as a way to force Europe to
00:22:40increase its exposure to China and maybe to
00:22:43cooperate on the grounds of innovation, that's key, that's the
00:22:47real issue, because competing on just... vehicles or
00:22:51devices doesn't solve any problem, the problem is that
00:22:55we need to innovate together and maybe open both markets each
00:22:58other, including evs, that would be the solution to me, it's it's
00:23:02a liberal answer, but i think it it may work a globalized
00:23:06world, it may work, do you think they can honestly do it, do you think
00:23:10there's enough cohesion to kind of get to that level and agree on on that common
00:23:13approach? well, if we do not reach
00:23:17European cohesion on that. "it means that the
00:23:21problem will get worse and worse in the coming years,
00:23:25so to today, today, because the dialogue with
00:23:29with China, that's i would say a
00:23:32warning that we have to do more together,
00:23:36consolidate our own industries and then try to keep
00:23:40up with China on the ground of innovation. okay, earl,
00:23:43you know, the EU obviously is trying to up its own leverage in in
00:23:47its trade talks with China, just just..."
00:23:50position, just the United States is trying its own very unique approach with
00:23:53China, you know, much more
00:23:56iron-fisted tariff but from
00:23:58intensive your assessment, do you think the EU is
00:24:02a better position in its trade relationship with China than
00:24:06the US or vice versa, or they are they in the same
00:24:08court? I think the
00:24:12issue with Europe is that it's when you're when you're
00:24:16negotiating with so many different countries, it it's hard... to
00:24:20get cohesion, the United States can in many ways make
00:24:23unilateral decisions um its own,
00:24:27um, I so so from that standpoint
00:24:29I think uh the European Union in terms their their
00:24:32decision-making process and the regulations that are involved
00:24:36particularly industries like automotives takes
00:24:39years to to kind of implement refine and and make
00:24:42decisions on that being said, I do agree with with
00:24:46Bruno's part, Bruno's point that a...
00:24:50protracted trade war between
00:24:53Europe and China would be catastrophic,
00:24:57would would would be horrible for both Europe and for China.
00:25:01Um, Europe's core manufacturing base, you've
00:25:04seen, just this year alone, almost Volkswagen announced
00:25:08almost 100,00 um people in terms of layoffs. China
00:25:12is also struggling in terms of almost 20% uh
00:25:16with with youth unemployment, so I think it is incredibly.
00:25:21important that both Europe and China find a
00:25:24way to to um have one
00:25:28concrete and sustained talks right on on
00:25:32on on very
00:25:33you know specific ways that they can bring the the the
00:25:37the
00:25:37the the tariffs down and engage more in in in dialogue, I
00:25:41think Europe needs the right balance of both sticks
00:25:45and carrots um they need the right types
00:25:48of um um, you know, if
00:25:52if China is not adhering to their
00:25:55agreed um, agreements, they need the right
00:25:59mechanisms to be able to enforce China to to.
00:26:14fragmented uh in many ways and China comes from very
00:26:18strong position of knowing exactly what it wants and and what kind of leverage it
00:26:21has uh so it's it's hard to see there's Bruno has painted
00:26:25very clear picture of what Europe should do but it's I it's hard to see
00:26:29how that's going to manifest going forward but Serena. last question
00:26:33actually for you, because on the other side there are also these accusations that China
00:26:37has kind of been weaponizing rare earths and that it's again using
00:26:41its its advantages there to play
00:26:44unfairly according to Europe. where do you see that
00:26:47going? well, as I
00:26:51mentioned earlier, China has consistently
00:26:55said it doesn't want of trade war, which
00:26:58you know is clearly stated its position, and also that '
00:27:02that the dynamic in China's anti-doping
00:27:06investigation into imports of PNT from from the EU, I think
00:27:09these these responses are to specific measures are not
00:27:13escalation for the sake of escalation and also
00:27:17you know the latest understanding shows that there
00:27:20are there's still room for dialogue and compromises, so the key now
00:27:24is to
00:27:25you know whether both sides can turn that concrete progress
00:27:29before tensions esc escalate further,
00:27:41that, as I was mentioning, a globalized world, we
00:27:44cooperate, need to and also the other thing is that Europe is facing
00:27:48different competition coming from the US, so I think that we need to
00:27:52strengthen our links with China, that's one thing, we need to
00:27:55consolidate countries across
00:27:57industrial agreements and
00:28:01that will
00:28:02be the key. for success for both parties, if we don't do that, we will be five
00:28:06years on the road with the same issues and the situation will be worse than in
00:28:09Europe. think at France, the industry in France
00:28:13accounts for less than 10% the GDP, if we don't do anything, it
00:28:17will be five or 6% on the
00:28:29us as well, remember you can follow us on social media and do be sure. subscribe to our
00:28:33youtube channel, i'm Andrea sanky, we'll see you next
00:28:35time.
00:29:03a global conversation where everyone has a
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00:29:08impact. no matter who, no
00:29:12matter where, social media connects us all. oh
00:29:16my god, on newsfeed, we look at the world through the
00:29:20prism of social media,
00:29:24right, intelligent, informs and
00:29:27entertains. know what's happening in the palm of your
00:29:31hands? newsfeed on TRT
00:29:34World.
00:30:09"there is no end insight to fighting between Saudi Arabia and the
00:30:13Yemen-based hoothies. Hello, welcome to
00:30:17TRT World Live from Istanbul with me John Paul Davis,
00:30:21also ahead on the program, I Muhammad reporting from
00:30:25the negative in southern Israel where 400 residents have been left homeless
00:30:28and 80 homes demolished by Israeli authorities."
00:30:33Amid rising criticism over their actions, US Homeland
00:30:36security raised the house of Somali born Muslim
00:30:40congresswoman, Ilhan Omar, and
00:30:43Bangladesh is making history as it prepares to bring its
00:30:47first nuclear power plant into
00:30:49service.