A new world economic order? | Global News Podcast

Welcome to the Global News podcast on. YouTube where we go behind the headlines. of a story and tell you why it really. matters. I'm Ana Desai and today we're. discussing whether economic ties between. countries may be reset going forward. China and Canada have negotiated some. historic tariff deals and what. implications could this have on Donald. Trump and Washington because they. started the ball rolling last year. imposing some big tariffs on a lot of. their neighbors as well as rivals around. the world. So to delve deeper into this,

I've got Fisel Islam, our economics. editor, who can tell us a little bit. more. Fisel, this relationship between. China and Canada. What does this mean. for future negotiations between the two. nations, but also the impact, the ripple. effect it could have across the world? >> Well, this is absolutely fascinating, isn't it? We haven't just got a sort of. Western leader. It's a G7 leader, the. seventh biggest democratic economies in. the world. He's a member of the Five. Eyes Western Intelligence Alliance. He's. a serious guy. Former Bank of England.

Governor Mark Carney, the prime. minister, going to Beijing, the. symbolism of him meeting Xi Jinping. within a year of him becoming prime. minister, but also within a year of him. having uh faced off or faced down what. he calls his neighbor to his to the. south, obviously Donald Trump, the USA, and their threats of trade war against. Canada. threats that were delivered upon. threats that were sort of had the China. fentinel trade as a pretext uh as the. Canadians would see it. And yet now we.

see him in Beijing not just saying that. there's a new world order, also saying. there's a strategic alignment on various. issues. Uh and you have this sort of. paradox, [snorts] don't you, of Donald. Trump trying to sort of throw his weight. in his neck of the woods, a version of. what was called in the 70s the Monroe uh. doctrine, now called the Dunroe. convention doctrine after Donald that. America would have supremacy in its own.

hemisphere. But the Canadians often seen. as a little sort of the little brother. of the Americans deciding to pop up in. Beijing and do trade deals there in. China and not just do trade deals, also. to abolish the taxes, the tariffs that. are paid on China's booming electric. vehicle industry uh down to zero for. tens of thousands of Chinese cars, which. is obviously not the policy. You hardly. see any of these cars in America. They're tariffs coming into Europe. They're not tariffs coming into the UK, but but like just just a fascinating.

sense of shifting sands in world power. And not that Donald Trump is watching. those pictures, but if when he does see. them, he may well contemplate that they. are that that scene is a direct. consequence of his actions. >> I know it feels like this could be a. real seismic shift in trade relations. between some countries. Some bold words. as you mentioned from Mark Carney there. Um, I I guess could this be a question. of now who deals with who going forward?

And I guess could it be the start of. countries hedging against a more. unpredictable United States, especially. the way Donald Trump has been, I guess, trying to make different deals and and. and be quite aggressive with the tariffs. in particular. >> Absolutely. Well, that scene, that. picture that you see, you know, the. world seems to be defined by astonishing. images right now. you know, um, the. image of Donald Trump with the five big. tech bros from Silicon Valley at his. inauguration. This is another stunning.

image of of Mark Carney, a western. leader going to Beijing at a time when. the world's biggest Western power, America, wants to face off against. Beijing and wants to create hemisph, you. know, wants to create their own sort of. banged band of brothers to take on. China's technological economic threat to. their supremacy. No doubt about it. So. to see the Canadians do this is. fascinating. But the picture I recall. from last year was when I went to Canada. uh on the last day of Mark Carney trying.

to be elected prime minister. He was. already appointed prime minister. You. want to be elected prime minister. People were worried in Canada. They were. worried. They were like what is. happening to America? And he said well. we can deal with their threats. They are. changing. Our relationship will change. but we have to diversify. We have to. grow our trade with other countries. And. what you get and what is absolutely. fascinating I just dug up the numbers is. yes the trade with America from Canada. is down 5% down 20 billion Canadian. dollars in total from January to October.

last year. That is not great but the. trade with the rest of the world from. Canada is up 22 billion Canadian. dollars. So they've managed to diversify. and the symbol of that is what we see. there with uh this visit to China. Mark. Hardney an interesting um backstory as. well in terms of his history when it. comes to being a former governor of the. Bank of England. He used economics as. one of the key facets of his push to. become the leader of Canada as well. And.

also fisel some of the quotes as well. that I'm picking up from his. conversations here with China. He's. saying institutions like the World Trade. Organization and International Monetary. Fund would become less relevant and. there could be a change in how countries. work together and and big institutions. like the ones I've mentioned. They could. be under threat as well. There have been. some punchy words and and a look into. the future as to how economics could. unfold between many countries, many. nations around the world in terms of the. relationships that could be forged going.

forward. Now the part of this anal is is. is a reflection on not just America's. policy which they were the originators. the authors of a globalized world with. these multinational institutions that. help if you like lay out the rules of. the road so that everybody had a fairish. shot. That was the idea. They don't. believe in those anymore. They're being. ripped up. And it's some irony that you. get the Canadians and the Chinese now. defending that in the communicate from.

Carney and Xi Jinping. You have a whole. paragraph saying we will now defend the. multilateral institutions. That's. clearly side eye aimed at Donald Trump. It is quite incredible really to think. of these things. And actually the. figures that I mentioned for Canada, they also apply to China. China has seen. I think a 20% fall in in in in the value. of its dollar exports to the US. That is. a disaster. That is a breaking of a. traditional if you like the axis of the. world economy but they've seen huge.

increases in exports to Africa 26% up to. Asia the rest of Asia uh to Europe up. 8%. So you're seeing this. diversification and if you're stood uh. where in Washington DC with an a you. know you can't say anything other than. an increasingly isolationist America. which is rejecting if you like that it. was the main beneficiary of this. globalized world. It's big global brands. its um its big banks Silicon Valley you. know America won globalization they're.

now rejecting it or rejecting its terms. of trade. And when you look at the. conception of Donald Trump's trade war, that remember that big blue board that. he held up in in in the White House, um. that was it wasn't an attack, but it was. a policy that affected the entire world. and annoyed the entire world based on. fairly arbitrary calculation. And yet it. caused so much bother for America. itself. Uh so much bother in the. financial markets. Suddenly the safest. assets in the world, which is US.

government debt, there were doubts about. that. uh that they had to row back and. suddenly it became oh this is mainly. about China all this stuff is so unc and. suddenly the the tariffs went up to 100%. basically blocking off trade ships. stopped sailing and here's the point if. you were planning as the Americans if. the actual plan was to take on the. Chinese you wouldn't have started by. annoying not just the entire world but. also all of your principal allies and. that is what happened and that is very. tricky.

>> okay so a couple of things to finish on. then fisel when it comes to this being a. template for others to follow, could it. be that? Um, also, how does this sit. with Washington and Donald Trump loves. to be the kingping, loves to be the the. dealmaker when it comes to things like. tariffs and and talking to other. countries and being on the front foot, but also this new world order remark I. thought was really interesting from Mark. Carney. Would this rattle other leaders. of of other nations around the world and. how how will those comments sit with.

some of those going forward? >> So Ghani has deep relationships. You. mentioned his previous job as Bank of. England governor, global financial. diplomat. I remember talking to him in. China when he was Bank of England. governor after he I think he met Xi. Jinping at the 2008 G20 summit. He told. me he was Xi Jinping put him on the top. table, the top boat, the two boats. floating on the lake outside of Hango. and he was on the top boat and the. British prime minister was not. So he's. always had some connections in this. sphere. He works by economic logic and.

he works by growth and he's like, well, okay, the Americans don't want our. trade. We're just going to have to grow. it elsewhere. And that's what he's. trying to deliver. It is a logical push. It is not though doesn't sit. particularly firmly with where the. Americans, I think, want the world to. go. But if they had wanted the world to. go into some giant kind of battle. between an America West and China, not. just for economic supremacy, military. supremacy, geopolitical supremacy, technological supremacy, there's. astonishing things coming out of China. right now that are competing with the. best in Silicon Valley. Whether it's.

electric vehicles, as we said, um BYD, the Chinese uh exporter now bigger than. Tesla, that's quite a statement. You've. got chip manufacturing coming in there. You've got DeepSeek, the the you know, we talk a lot about ChachiBT, but a tiny. hedge fund in China developed a a large. language model that, you know, out. competed the Americans. And what are the. Chinese doing? They're focusing on cheap. in terms of cost, cheap in terms of. energy, AI, not trying to be the.

biggest, most powerful AI in the world, using up all the world's energy. And it. reminds me of the space race which. obviously America ultimately won but you. know the Americans spent 30 million on a. on a gravitydeeing pen the Soviet Union. used a pencil right so you've got that. type of vibe around um and so I think. there is a model of diver it's not just. a model it's just a natural response and. I think in general I'll put it like this. understandably all of us all of us on. podcasts like this on our in our news.

organizations in all the world's. newspapers on the internet on X. everywhere we are obsessed and focused. with every tiny meander of Donald. Trump's brain. >> and what he says on X, what he says on. Truth Social. What really matters in a. global trade environment is how that is. reacted to around the world and how the. rest of the world interacts with each. other. We're seeing the UK get closer to. Europe after Brexit. We're seeing the UK. doing deals with India. We're seeing. India cozy up to Europe. It there's a.

yin and yan to all of this. There is not. just half the story. It is possibly the. main story because although the US is. the biggest, the first amongst sequels, it is not the whole world economy and I. think we're seeing this so clearly in. visions in pictures like Mark Carney's. visit to Beijing in the past few days. >> Fisel, thank you so much for your time. Fisel Islam, our economics editor there. If you enjoy world stories like this. one, do check out our global news. podcast. You can find that wherever you.

download your podcast from. Also do. subscribe and like to our BBC News. YouTube channel. Thank you so much for. your time.