05/09/2016 Asia Business Report

of the Commons Home Affairs Committee.

Now on BBC News, all the latest business news live from Singapore.

Will the leaders of the world's biggest nations economically find

common ground in the G20 in Chinaof China's development bank tells us

why the G20 is so important for the country. -- The head of. Good

morning, Asia. Hello, world. I'm Rico Hizon. Thank you for investing

your time with us for this edition of Asia Business Report. It's a

Monday. It is the start of a new trading week. It is the second day

of the G20 Summit and already some major points of difference are

merging. Japan has issued a pointed statement outlining concerns over

Brexit. Today, China and the UK will be discussing the mainland's

investment in the nuclear power stations. Will this be overshadowed

by these issues? We have the details of. China's big moment to

demonstrate its position as a responsible Steward of the global

economy has finally arrived. Day one of the G20 Summit had the usual

choreographed moves with the leaders photograph. That was meant to signal

to the world, the assembled press, that the leaders of the big

economies are serious about policy co-ordination and cooperation. There

are though, of course, always areas of disagreement and tension. Some of

those come to the fore in the bilateral meetings that take place

on the sidelines. For example, the US and Chinese residents had

exchanges over the Warnie issues, not least the tensions in the South

China Sea. -- thorny. It is on the second day of the G20 Summit, today,

that one of the trickiest bilateral relationships to calibrate will

really come to the fore. The British Prime Minister will meet her Chinese

counterpart with the whole issue of China's major decision to invest in

a number of British nuclear power stations now hanging in the balance.

Following her decision to place that whole deal under review, Theresa May

comes here with what she hopes will be a message of reassurance. The

message that return is still open for business. But there is little

doubt that China still has concerns. Along with the wider issue of

Britain's decision to leave the European Union, they will linger for

some time yet, and may well overshadow whatever messages of

positive action and progress emerged in the final G20 Summit document.

And that was John Sudworth at the G20 summit. It is seen as an

opportunity for China to play a leading role in global affairs, but

are they in charge of fixing the global economy? We put that question

to the head of their global bank. Of course China is very serious. They

say there should be no policy of beggar thy neighbour. It is not

possible to urge somebody to do something. That is my point. China's

reform will not get stalled. And he said we will not make a U-turn. Some

of the observers of China's policies they talk is cheap. Their argument

is that if you want China to help kickstart global growth, then to

dismantle the huge state-owned enterprises and provide more access

for China's own enterprises and foreign ones, that is the way to do

it. You know I am a Chinese national and you may say I am biased, but we

are not just talking, we are doing. Action is very much expensive but

talk is cheap. Both parties need to do the same. That is why I think the

G20 in Hangzhou is very important. China does not believe it should

dominate. Dominance will not create a great leader. That is one side of

China's face to the world. But another face, and I have to raise

this, is the territorial disputes in the South China Sea, the maritime

disputes. Is there a conflict on what you are trying to do in

international financial institutions and the security side? Is that task?

I am sorry to be tough on this choice, not because I am Chinese,

but because when you look at cases, this kind of tribunal verdict has

never, ever been valid, has never, ever been honoured, respected, or

accepted by the British, by the Americans, by none of these

countries which will accept this. I do want to get into the details of

who was right and who is wrong in the South China Sea or the East

China Sea, we can't. But what I am asking you is does the distrust,

does the tension over these issues under my... I am sorry to say

distrust was created by some people who have no business here. We Asian

countries are willing to sit down and talk is out. I will say if some

countries have no business here, back off. It will be easy to work it

out that way. I will say the efforts by our bank to promote global and

regional conductivity will probably be helpful for very, very good

resolution of these issues. When people see that working together,

cooperation, is the solution, not war and military conflicts. Apart

from the G20 Summit, US jobs are also in the spotlight. Expanding the

US economy added another 151,000 in August, fewer than expected. But

Wall Street had higher expectations the Federal Reserve may hold off on

the read write. The Nikkei is up to start the new trading week. I asked

if uncertainty surrounding the Fed's direction will continue. We need to

know where we stand. That is right. The difference on of will they,

won't they, hike, compared to other banks. That is hurting flows into

emerging markets potentially. Regardless, it is not even

controversial any more to say this, regardless of whether they get one

more hike or none, this will be the shallowest rate hike in history, but

we need to know when it is over. That will be and major turning

point. Even between now and then, could this have an impact on

emerging Asian currencies? If we are getting to the point where markets

are convinced we're getting that hike within a few weeks they could

be negative pressure. But in the meantime, I think waiting for it to

come and knowing it could be as late as December, it could be like the

post- Brexit reaction, any nerves about what comes later, people are

climbing a wall of worry at the moment on that. And this

telecommunications giant is offering what it says is the cheapest data

card on the cheapest 4G network. India is tried to tap into China's

communications producers. This has ramped up the battle between Indian

telecommunication firms to get more customers. They are promising

high-speed 4G Internet and our promising cheaper prices. To try to

put a smartphone into the hands of as many people as possible, at the

heart of its plan our hands of like this. They cost under $50. The

company already has a network standing of over ?18,000 and over

200,000 villages. Their aim is to try to reach 90% of India's

population within one year. These are the absolute lowest data rates

anywhere in the world. It has been a six year wait for Reliance chairman.

He is India's richest man and throwing his resources behind it

could spell trouble for other companies. Little trouble critics

accuse it of unfairly undercutting competitors. India's telecom

operators make most of their money from voice calls rather than data,

and announcing free phone calls could seriously threaten other

operators. But most people in India access the Internet through their

phones, so the next phase of revenue growth will come from data packs.

The cheapest plans of $2 a month with services free until next year

are concerning critics. I am worried about it. Businesses controlling

stakes and start-ups and content, even in the telephone, mobile

services, that worries me. And it should worry the regulator as well

at some stage. With over $20 billion invested already, this is the

biggest venture of its kind. But this is a country where Internet

speeds are really slow and the problem of calls dropping out are

part of day-to-day life. So cheap deals may get customers early on,

solving these problems will guarantee keeping them. BBC News,

India. And with that, thank you so much for investing your time with us

on Asia Business Report. I am Rico Hizon. Sport Today is up next. See

you soon. THEME PLAYS. In Hong Kong, the counting

of votes is continuing in the territory's

legislative elections. A record-high turnout has delayed

the publication of results