Welcome to the Euro-Intelligence podcast. I'm Wolfgang Munchau and with me are Zasanna Monsenk and Jack Smith.

Today we will talk about China. The threat it poses to the EU, or whether it potentially even poses an opportunity for the EU,

what our relationship will be, but perhaps most importantly what the success of China and the

emergence of China, not only as a big economy, but also as a global tech leader, and

the global dominant force on the Eurasian continent, will mean for us the stability of the

European Union and our prosperity in the long run.

There's a lot happening at the moment.

We see the car industry declining fast.

We see new innovations coming up from China.

How to keep track of this?

There's something new happening every day.

Jack, where are we here?

I guess where we are is in a point where, and I think that the sort of macroeconomic data coming from China kind of belies this,

we're at a point where the Chinese government is making a really concerted effort to basically move up the value chain in terms of its manufacturing, in terms of its industrial production

and manufacturing exports, right? So a kind of simplified but relatively good way of trying to

understand this is moving away from an old three of manufactured goods to a new three of

manufactured goods, right? So the old three are household appliances, furniture, textiles, and clothing, right?

They're sort of relatively low value-added consumer goods and appliances.

The new three are electric cars, lithium-ion batteries, and solar cells and panels.

So these are more advanced products.

But as well, there are products that factor into, you know, the way that the real economy works

and the way that actual kind of, I guess you could say human systems work in a different way, right?

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