China’s New World Order – How dependent is the West? | DW Documentary

China’s New World Order – How dependent is the West? | DW Documentary

[Music] the day many have long warned about would begin with terrifying [Music] news China has invaded Taiwan experts are already confident of how China would proceed taiwan’s Navy and Air Forces would be destroyed by bombing and tens of thousands of Chinese soldiers would rush across the Taiwan straight China has made no secret of its ambitions don’t pretend that Taiwan is not part of China I think we can clearly see that states are linking up to redraw the world map a war between Taiwan and China may seem very far away for Germans but the consequences for the country would be catastrophic we can be blackmailed yes we’d have supply shortages mass unemployment the market crash would hit both economies very hard few countries have made themselves so dependent upon China this is when we as Germans have to ask ourselves is this what we want Germany has made itself vulnerable why we wanted to find the causes and the answers in China Germany and Taiwan is there a way to end this dependency [Music] there are many signs that things have gone ay that Germany’s dependence upon China has become dangerous one such warning is the story of six-year-old Anton from Berlin and his doctor Malik buta he never really gets sick when he had a cold or a fever he still go to the playground Anton got a serious infection in early May a television crew happened to be filming his doctor’s office and documented Anton’s visit We examined him and found that he had bronchitis verging on neumonia we started him on antibiotics the antibiotics were initially available at the pharmacy but too few and in two lower do the line between life and death can be thin it can be as small as a tablet when it’s there you don’t think about it when it isn’t or as in anon’s case there’s not enough of it Things become dangerous the reason for the shortage China wasn’t then supplying enough seyos sprins antibiotics without China Anton was in Peril when the Chinese stops sending us Pharmaceuticals we run short on sephos sporin sephos sporin are very very very important especially for severe infections that means people will die yes there’s no one to tell you don’t worry antibiotics will be available again soon shortages become The New Normal Dr buta tried to circumvent the Chinese Problem by prescribing a lower dose but it didn’t work Anon was admitted to hospital with severe pneumonia shortly after these videos were taken the dependency on China has been tolerated for years our relationship was so unpro that we were never concerned that it could be used against us but we’re seeing how China has changed and now we have to change just how much China has changed became evident in mid October at the new Silk Road Forum in Beijing xiin p side by side with a man who has an International arrest warrant Vladimir Putin for she the brutal war of aggression against Ukraine is no reason to avoid him quite the contrary all these external factors are common threats and they strengthen Russian Chinese cooperation we had to remain outside and like most of the western media follow the opening celebrations on screen in the Press Center for she the new Silk Road is a way to expand China’s power and influence China promises gifts but demands Allegiance she threatens anyone who refuses to comply those who see the development of other states as a threat and consider economic interdependencies a risk don’t benefit and do not help improve their countries she shares Putin’s fantasy of great power they both want to incorporate other countries into their respective Empires Taiwan is to shei what Ukraine is to Putin she’s goal is taiwan’s return to the motherland by force if necessary Tai’s National revolutionary Martyrs Shrine commemorates the victims of the Civil War when Republican and communist Chinese killed each other concern over a return to that conflict can be felt everywhere here the small Democratic Island state is now amassing arms to deter the constant threats from its outsized brother the National Security Council greets Us in taiwan’s presidential Palace Wellington coup has the challenging task of protecting his Island from China China wants unification with Taiwanese territory and is making no secret that it will take any step imaginable to do so but the Taiwanese know that dictatorship and democracy are incompatible ever since the Republican troops fled from the Communists here in 1949 China has been demanding the return of what it sees as a renegade Island around 90% of Taiwanese reject the notion most trust that their government will do everything necessary to protect them for some though that isn’t enough good afternoon I’m Tru I came back from Ukraine 6 months ago the 52-year-old is a tour guide in Japan but in March he decided instead to travel to the front [Music] this is the gun I fought with in [Music] Ukraine Chan keeps the gear he used as a member of the international Legion in Ukraine in a military Club in [Music] Taipei the Ukrainian flag if you survive it’s a souvenir if you die it’s draped over the casket one Taiwanese Soldier has died in Ukraine but Chan brought more than just the Ukrainian flag home with him courage also accompanied him back to the island nation before I went to Ukraine I didn’t know if we could resist the Chinese for 3 Days 3 weeks or three months after fighting there I believe that if Germany France Great Britain and the United States are ready to support Taiwan with weapons the way they support Ukraine we can beat China Chan is preparing for a return to the historic Civil War today he’s meeting with others who feel the same way that all seems a long way away under the Autumn sun in Munich Volkswagen wants to show its best side during an automotive show but something is different something casts a cloud over the industrial Powerhouse Volkswagen’s electric cars are selling poorly in China the world’s biggest car market once the biggest brand VW is being dethroned by Chinese Rivals and one of them byd has set up directly opposite them an automotive duel on Munich’s Grand Boulevard everything is on the line for VW no other German company is so dependent upon China Electric Chinese cars in the pole position is an existential threat for Volkswagen and inspiration for China’s car makers we probably offer something a bit different than German manufacturers in China digital options are very [Music] important I don’t think they believed in electromobility at all wagen or GM they were dominating but what we see today is that Chinese car makers have over 60% of the market in electrom Mobility P not at the time BMW’s head of customer Brands and sales inspects China’s ecars German arrogance towards Chinese models was once legendary but now managers are thronging to see the Chinese and the proof of their own shortcomings volfgang Porsche automotive air and owner of VW is here with VW CEO Ola BL we are still the strongest car maker in China it’s crucial that we now succeed in the transformation to electromobility if the Chinese say German cars are on cool I’d rather buy a byd then VW will just get 20 or 30% of its profits from China that would of course be a disaster for wburg in the large exhibition Hall in Munich an alarmed who’s who of German business moves into place the chancellor alongside the car magnet Chancellor Schulz rushes to Munich to support the German car industry the Chinese offensive is already damaging on this side of the world German profits aren’t what they once were and when profits wne so do jobs the transformation of Mobility is a big job but it’s a team effort I’ve come here today as part of that team that team is fighting a worthy opponent China’s ecars are cheap because Beijing subsidizes them Germany could retaliate with punitive tariffs across Europe that’s our China strategy create a Level Playing Field and say if you protect your markets and provide subsidies so are we we demand equal opportunities for all and we won’t be pushed off the playing field but would Germany dare would Europe risk engaging in a trade conflict with China suddenly the automotive conference becomes something else Greenpeace activists crash the party bodyguards swarm around Schultz while the activists decry climate change it may be more than just the climate that’s changing maybe an entire industry maybe the German economic model trade with China has long been a party former Chancellor Angela Merkel called Beijing a strategic partner the principal Germany supplied engineering and China provided cheap [Music] Goods we thought an authoritarian State wouldn’t allow the freedom and creativity of a democracy that’s why trade was easy with China because China would always try to copy what we orted they’d always be one step behind us a massive miscalculation trade with China was once highly profitable for Germany but China has now caught up and in some areas even [Music] overtaken we’ve reached a point where the balance is Shifting Chinese Imports are increasing our Chinese exports decreasing the balance is Shifting towards China this is when we as Germans have to ask ourselves is this what we want the German business model is over what do you see as the cause well it’s because we import cheap products from China cheap gas from Russia do business all over the world and the Americans pay for our security that’s over now Corona and Russia’s War against Ukraine have shown just how dependent Germany is on Global Supply chains but it’s even more dependent on China than Russia what lessons has Robert habc Germany’s economy Minister learned about global trade we had a 55% gas dependency and we managed to keep the national economy running 19 and it wouldn’t have been possible 90% would have pulled the rug out from underneath us 90% that’s how dependent Germany is on China for certain medicines and raw materials if it comes to a conflict with Taiwan ties between Germany and China will change overnight a war of aggression would result in sanctions against China the world’s most important trade route would be cut between 1/3 and half of all Global goods are shipped through the Taiwan straight none of that would arrive we’d have supply shortages and face mass unemployment could the German government has created a new China strategy the goal is drisking less risk around China less naivity but what does that mean how would it work Taiwan has been hedging its Bets with China for years the up its sleeve computer [Music] chips if taiwan’s foreign trade were interrupted it would be a major disaster not just for Taiwan but for the whole world because Taiwan produces 60% of the world semiconductors the Taiwan semiconductor manufacturing company is one of the most important in the world its highly successful product even has has its own museum and can be found in refrigerators cars and mobile devices around the globe the tsmc museum commemorates the seven fathers of taiwan’s electronics Industry managers and government officials who met in a soy milk snack bar 50 years ago and made a groundbreaking [Music] decision Christy hu is an economist she knows tsmc inside out over a soy milk she reveals the founding father’s plan Taiwan should concentrate its expertise on one product one which could not simply be copied by neighboring countries the plan received government support and became a complete success the world now depends on Taiwan for semiconductors the production is uniquely sophisticated it’s very ironic because uh because even they want to take um tsnc it will be just the factory just the building because um people they have food right they can’t leave right and most of these senior engineers in tsnc probably have green car so they can leave easily and then there will be no way for uh for that um operation to continue neither China nor the rest of the world could weather a stop in the supply of semiconductors China has to think twice before actually attacking Taiwan and The Intern Community would do anything to prevent a war with Taiwan Taiwan created a silicon Shield a shield of [Music] semiconductors and Germany it needs its own silicon Shield there is no backup for the medicines Anon urgently needs no alternative to the antibiotics Anton’s treatment isn’t working Anton’s parents are forced to take him to hospital with severe [Music] pneumonia his oxygen levels were very low Anton was in bad shape he had trouble breathing trouble walking he didn’t want to do anything he lacked all strength if you can’t get antibiotics it’s just bad it’s very painful as a parent being unable to help your child there’s nothing there to help them [Music] but antibiotics used to be produced in Germany penicillin production started in a Frankfurt suburb in 1950 and after a few years could meet all of Germany’s [Music] demands this medicine will save the lives of countless Germans in the years to come think about how much pyin and sephos sporin were manufactured in HST from after the second world war and into this Millennium at some point the Chinese thought we don’t like that we want the market to be dependent on us they flooded the market with substances at dumping prices that means that China made sure that production in Hook ended yes the hook facility is now just an industrial Monument antibiotic s haven’t been produced here since 2017 only the price mattered Germany’s dependence on China quickly became apparent a boiler exploded in an antibiotics Factory in Eastern China in October 2016 kilu produced picy and and antibiotic at the facility and Germany quickly lacked the drug Chinese manufacturers had won the supply War using extremely low prices sephos burin production is now concentrated in just three large [Music] factories we ask the Chinese companies for comment but they refuse we’re seen as corporate spies the companies use popular wording to avoid prying questions from journalists foreigners infiltrating China the whole country is fighting spies the companies can’t address political topics too sensitive this is the answer from kilu a major Chinese antibiotics company we have no interest in working with foreign media we have no external communication with foreign media goodbye we traveled to one of the sephos spirin plants in shanii Province kilo’s European exports increased by 130% last year one employee agrees to talk to us at the main entrance we produce sephin our products go around the world I’m very proud of that our presence doesn’t go unnoticed a discussion with security staff at the main entrance filming prohibited China wants to make others dependent on them while remaining autonomous themselves D risking in China even has its own name dual circulation to prepare itself for a trade War China wants to boost domestic consumption and reduce its own dependence upon exports [Music] but German corporations are risking even more investments into China continue to grow I believe that there are still some in the economy saying we just want to increase profits with China but they’re not also trying to minimize risks Volkswagen wants to stay in the race and has invested 2.4 billion EUR into a project with Horizon robotics the Chinese are the market leaders in self-driving cars we want to offer the customer the best we’re just using the best local Solutions it’s expensive VW hopes its Chinese strategy will run as predictably as many of its [Applause] cars we’ll have to replace the Chinese market eventually because our companies will no longer play the role they have for the last 20 years even less well-known companies are failing to adjust suppliers like noan lies and its 1,000 employees hubus Bach built the company over the last two decades and added a plant in China 8 years ago Volkswagen’s Chinese problems have become his too the best times are when my brain isn’t working at night believe me I have relatively little in recent years this year too his company traditionally produces parts for combustion engines but with ecars advancing especially in China can botch make the transition and what will happen to Volkswagen his most important customer will a struggling VW still need his product small ium siiz Automotive businesses are under extreme pressure moving from the combustion engine to the electric car some certainly won’t make it botch currently has the feeling that he’s okay he only saw his Chinese colleagues on the screen during the pandemic but in 2023 he can finally visit tanin again he’s nervous we’ve accompanied botch before back in 2015 when he opened his 50 million euro Chinese [Music] Factory he used his passport then almost as often as his credit cards as he commuted Between Two Worlds attitudes were different about [Music] China we’re amongst the few private investors it’s not just our passion it’s part of our existence it has to work with China yes it will work botch has been here for eight years now his passport is no longer a familiar site China seems farther away now if only because of Corona it was a long exhausting period I’m very surprised that we’re in such good shape the employees the whole team has kept this business running on their own the pandemic could have served as a warning on dependency what happens when one is suddenly cut off from Supply chains or one’s own Investments my assessment is that German companies operating in China must know that their Investments may be treated completely differently there than in constitutional States like Europe that assets could be seized that’s not just a theoretical possibility B doesn’t want to hear about [Music] drisking there’s also de-industrialization everything starting with d is going downhill we are very strongly organized in China but our company’s bottom line is to make sure our risk in China remains tolerable [Music] China’s aim is to minimize risk to itself it sees itself in a global competition with the US dominance in certain raw materials is at the heart of Beijing strategy yunan Province Southwest China were heading for one of the yunan shiong company mines one of the biggest producers of geranium in the world the corporate video showcases its success story germanium and gallium are extremely important in the production of semiconductors Germany has made itself vulnerable to extortion by becoming dependent upon rare Metals a good half of its gallium comes from China and over 80% of its germanium China has restricted their export since August 2023 to get even with the US trade sanctions the trade war is also affecting Germany China is is no longer supplying germanium and gallium the yunan mine descends 2 km into the Earth sheong didn’t respond to our request for an interview we find bobbed wire and a warning sign at the main entrance strictly forbidden for unauthorized persons and vehicles a security guard appears immediately we again request an interview I’ll have to ask the main office they make the decision you’re not allowed in now the mood is tense the security guard is visibly uncomfortable with our sudden appearance the company doesn’t want to talk to us rejections from government agencies too only Victor GA vice president of the center for China and globalization an unofficial mouthpiece of the Communist Party agrees to be interviewed China has absolute dominance in rare earth and rare medals and under China’s sleeves in China’s sleeves there are more than two dozen cards to play China has no problem with Germany for example but if Germany joins the US imposed unjustified sanctions against China then export to Germany will be under the same review as the Chinese government has announced as far as G E A and G Germany also used to produce gallium on its own here in stada near [Music] Hamburg but only until 2016 st’s gallium then became too expensive there is the political question is the production of gallium in Germany worth the effort to ensure Supply to ensure competitiveness for the semiconductor industry those questions seem to have been [Music] answered in March 2023 both the president of the European commission and the German Chancellor broke ground on a new semiconductor Factory for infinion in Dresden conductors are often referred to as the oil of the 21st century the one raw material so to speak on which almost everything else depends by 2030 we want working together with industry to double Europe’s share of the worldwide semiconductor production up to 20% since the semiconductor Market is developing so rapidly that means that we need to quadruple our current capacity the EU has provided 43 billion for Semiconductor subsidies that also makes Dresden attractive to tsmc semiconductor companies would be foolish to ignore such generous public investment tsmc had once invested significantly in China but the semiconductor industry is now part of taiwan’s National [Music] Security we’re thinking a lot about the econ security of semiconductor design we respect the global position of the company but taiwan’s lead in this industry must remain intact most modern production processes and research have to stay in Taiwan these countries which are recently all allies everywhere they invest at the moment are very close allies to Taiwan is that by chance no it’s not a coincidence that means we agree to develop a global network but to protect the supply chains tsmc only goes to countries with similar [Music] values industrial policy there and here tsmc hopes to be producing semiconductors on this Green Meadow in Dresden beginning in 2027 the most advanced chips will still be made in Taiwan but but earlier Generations will be made here to supply the European automotive industry the Taiwanese want to invest 10 billion EUR about half of it subsidies money well spent for Germany we’re sort of lying to ourselves the impact we’re currently seeing in Europe will not fundamentally change the global industry over the next 10 years although the chip can be manufactured in Dres Germany remains dependent on Asia for rare Metals soldering and packaging Germany’s economy Minister disagrees first of all you have to start somewhere semiconductors will be everywhere soon we will be well advised to produce at least part of what we consume ourselves sometimes I don’t understand it myself there are major concerns about Germany’s attractiveness for industry but when companies come here and build or want to build for the leading industry over the next few decades there’s [Music] criticism Germany is at least trying to become more autonomous but Chinese high-tech has long stood at the center of German Communications operating German mobile networks and critical infrastructure can that be der risked too maybe that’s the error in our drisking because we act like the motivation is peaceful we just need to Der risk some minimize the risk some diversify some as if the Chinese leadership wouldn’t notice as if they aren’t interested in the exact opposite China doesn’t want to be deris first of all if German government wants to shoot its own feet shoot its own feet be my guest you know we can now stop you from doing the stupid things which will inflict all the damage and injury and losses to the German people I just personally hope the German government will be smarter and wiser as I always believe black swans supposedly stand for China’s resilience according to Superstition and hua’s Company history the birds symbolized an unforeseeable event with serious consequences Huawei says The Misfortune and threats they faced have made them even stronger it’s why the black swans are fed and lovingly cared for on the company campus the animals are supposed to continually remind the staff to be ever Vigilant the future is possibly as unimaginable as hua’s corporate campus where the hidle beber castle Oxford University and palaces from bologna and Granada have all been reconstructed according to the wishes of hua’s founder a tribute to Europe’s inventiveness China’s megatech company is researching and developing Behind These facades we were invited on a tour so here we are in haberg and this is the driver lace car the tech company is clearly making an effort to appear open and transparent on German television whed and dined by cast and zens H are wi spokesman for Germany who usually works in the real dard off the only reason exists is to serve our our customers I know it sounds like a marketing slogan but it isn’t huaw self-promotion is aimed at the federal government there’s another Black Swan in the room Berlin views who telecommunications technology as a security risk and fears China could install malware and spy on Germany remotely perhaps even switching off networks and critical infrastructure Preposterous says we as the supplier have no access neither remote access to data in mobile networks nor control of mobile networks those are controlled by a network operators this kind of Espionage and sabotage is more science fiction sence fiction but that fiction like the fear could become reality China’s national security law requires companies to answer to the party and the state the US has long since outlawed huawai components Banning Chinese technology in Germany could have a cooling effect throughout Europe we do not want to lose any country as a customer especially the biggest Market in Europe the German market so if you can survive and Excel in the German Market it means you can survive and Excel in many other markets German telephone companies are also concerned about possible restrictions threatening to sue Berlin for damages they’re naively ignoring the security concerns like car makers they just want relations with China to remain changed the pressure on politicians is enormous I myself have always made it very clear that risk minimization also means not including technology from China that makes our own infrastructure vulnerable we have to have the self-confidence to say we won’t let anyone pressure us which they apparently can Germany is now seeking compromise only a small but significant part of the huawai technology will be banned with more transparency demanded from China drisking Light Germany’s China strategy now lists the country as a partner competitor and systemic rival in Taiwan people are happy about anything that adds distance to China it gives them hope that Germany would in the event of a conflict be steadfast on the side of democratic Taiwan we would like to see that Germany is ready to use their warships in Asia Pacific and to hold military drills in the indopacific region as they have recently but would International help come at all many aren’t counting on it with military discipline they meet weekly at the open air stage of Tai’s danan Park we’re hoping we’ll be able to demonstrate our determination to fight back we can’t expect other countries to help us if we don’t show the will to do it ourselves they may have forgotten their wooden rifles today but not their enthusiasm self-defense groups now exist all over the country young Taiwanese no longer have an emotional tie to the People’s Republic and want to be prepared for the worst case Chan Yu is their star guest today the man who fought in Ukraine last year is now lifting weights here today he becomes emotional at the end of a long evening [Music] he’s singing the Ukrainian national anthem show [Music] me Taiwan [Music] whether China will really attack Taiwan can’t be known but Taiwan is preparing for it is Germany what we need to do in Germany is become more independent and position ourselves against China I believe that will ultimately help create a better relationship with China becoming less dependent and less vulnerable is going to be expensive we have to be able to provide the basics for our population again Germany isn’t simply at China’s Mercy China needs the European market too and China also needs European Imports in Berlin Anon and his father are back at the doctors Fisher kubaki family please Anton recovered in the [Music] hospital his lungs are healthy again [Music] I’m so glad this didn’t end differently but you don’t want to ever be in a situation like this again it causes frustration and anger that it could even come to this do you still remember what it was like when you had to go into the hospital yes even for one night I didn’t want to go to the hospital Miss how are you doing today good for Anton things have turned out for the [Music] best Dr buta is now stockpiling medications that his patients no longer need should Things become scarce again he might have something in the cupboard vulnerabilities sometimes only become apparent when something happens like with Anton moments when a turbulent World crashes into the life of a six-year-old but dependence is not a matter of Fate we create our dependencies and can reduce them if we want

For years, good relations with China guaranteed the German economy healthy profits and cheap goods. But over time, that relationship has become a dependency. The documentary “In the Jaws of the Dragon – How to Deal with China?” explores the nature and extent of this reliance.

At a summit meeting to discuss the “New Silk Road” infrastructure project in October 2023, China’s President Xi appeared alongside Russian President Vladimir Putin. Whether in Asia or the Middle East – China is evidently pushing for a new world order, with offensives directed against the West. Germany is already feeling the consequences.

For a long time, trade with China flourished: From 1984, Volkswagen flooded the Chinese market with cars, ultimately exporting one in every three VWs to China. But now, Chinese companies like BYD are dominating the market with e-cars. And Germany’s reliance on China for computer chips, antibiotics and solar cells can now be seen as downright reckless. This dependence is becoming more evident as China increasingly comes up trumps both politically and economically. Whether regarding the Ukraine war, in its relations with Russia or its continued saber rattling in the conflict with Taiwan: Where China would have once conducted itself with restraint, it now demands its slice of global power. In Berlin, politicians are rubbing their eyes in disbelief: what was once a healthy relationship is now a codependency. And there’s no easy way out.

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