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00:00Yeah there's a lot of talk of how in line the EU and the US are when it comes to. I guess going against China in the face of all those topics that which we just mentioned just now. How do you see China's growing influence impacting Europe and how do you see this all playing out for the next coming years. Of course China's having a lot of influence in Europe not only economically but also increasingly politically. They bully countries like look at Lithuania and of course they've worked very closely with others such as my own country Germany. But of course the question the European Union always has was how much have these 27 members. Kind of solidarity and how do we cope with an assertive and a very robust China. And that's of course something where we have a lot of things in common with the United States. You're just put this into context then of what's happening right now whether that's you know the virus virus caused supply chain disruptions we're talking about of course is new variants and of course the Covid zero strategy in China. What is the operating environment like. Right. Like right now the operating environment in the way is quite good because business is booming. The energy crunch we had in September October seems to be over surprisingly very very fast. Of course we have the headwinds of the real estate sector. We have the headwinds bigger ones on the aging of China and the kind of shift from quantity GDP focused growth into more quantity. So I think all of us actually have to see how this pans out for us. But of course we are far more worried about the politicization of the next months to come. Of course the highlight might be the Olympics. I want to talk about your report the politicization of of tech standardization. It's quite a hefty phrasing. Maybe you could tell us a bit more what that means. Usually you see that kind of conflict between the U.S. and China. How has Europe affected. And can you cite some examples how the standards report which we launched today definitely is the piece to read some nuggets. But also we have a report which we actually think reaches decision makers back home in Europe as well as the Chinese government. And it certainly is supposed to be a wakeup call for our companies over here in China. No standard setting is something which in the West was done by private companies by industrial associations. And of course China wants to come to the table and steal that more into a state centric decision making process. And that's what worries us that actually that's the underlining political agenda behind it. But China's really keen to do this. The saying here in Beijing is the third rated companies are doing products the second rate the companies are creating technology and first rate the companies set standards. So in a way China wants to be in the first tier league particularly particular. Of course setting standards means a lot of license fees income. Could you maybe give us an example of of how that would be to your point a neg a negative thing that if if if the if the Policy Center is the policy maker and not the private company. Just give us a tangible example how that might work against private enterprise. Well I mean look at artificial intelligence. If it's set by the industry then of course it has a far more business related background whereas official artificial intelligence was a state backed background might have a far more intelligence driven background. So we have we have of course a new energy vehicle where China wants to have the upper hand. China has realized if you don't set the standards you're not really sitting sitting at the big table. And it's of course all the attempts that we see with the new plane goes in the direction of high tech. And that's where the West has been doing this pretty much offhand industrialized in the decision making and maybe became complacent. So all paper is a bit of a wake up call for. Do you think China has any incentive then York to actually change how they set these technical standards. Well clearly if you are if you are I mean look at it. Look at Qualcomm. Qualcomm has set the standards. And China has to pay for every courtroom item they use. And of course they see how the standard setting has basically cost billions of renminbi to floating into the coffers of an American based company. They want to be the one that actually gets the funds. So if you are basically flyweight if you are a company that wants to be 60 you want to be the one that test the standards so the others have to pay for it. And that's of course the struggle. That's the that's the race. But it's not a race among companies. It has to race between companies. And this is a state sponsored entity among them.

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EU Chamber of Commerce in China on Global Tech Standards

European Union Chamber of Commerce in China President Joerg Wuttke says China is gaining an edge in global tech standards, and focusing more on emerging sectors like drones and 5G. Wuttke speaks to Yvonne Man and David Ingles on 'Bloomberg Markets: China Open'.

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