China pitches itself as the perfect business partner

Summary

Marketplace Morning Report

Episode: China pitches itself as the perfect business partner
Date: September 1, 2025
Host: Sarah Rogers (BBC World Service for Marketplace)

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Episode Overview

In this concise episode, Sarah Rogers explores the shifting dynamics of global trade, focusing on China’s efforts to position itself as an indispensable economic partner amid US-led tariffs and geopolitical tensions. Key stories include updates from the Shanghai Cooperation Organization summit, insights into the automotive industry as tariffs bite, and highlights from global markets. The tone is brisk but informative, combining on-the-ground reporting with direct experiences from industry professionals.

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Key Discussion Points & Insights

1. China’s Strategic Economic Positioning at the Shanghai Cooperation Organization (SCO) Summit

Timestamps: 00:59 – 04:05

• Summit Context:
  The Shanghai Cooperation Organization, once a security-focused body, now increasingly emphasizes economic alliances.

  • “The focus has moved very much onto economics with some very powerful nations involved.” —Sarah Rogers [01:47]

• China's Investment Pledges:

  • President Xi Jinping pledged $280 million to support SCO member states and an additional $1.5 billion to speed the establishment of a new development bank.
  • “He was talking it up as a multilateral trade organisation as well as one that deals with security.” —Stephen McDonnell [02:44]

• India-China Relations and Tariff Pressures:

  • Indian Prime Minister Narendra Modi visits the summit to seek alternatives amid 50% US tariffs, coinciding with announcements that direct flights between India and China are resuming—a symbolic move to mend ties and foster exchanges.
  • “Just as the Trump administration's tariffs are hitting India up to 50%, now India is looking around for other trade partners. And Xi Jinping may all say, well, here we are, you know, imagine what we can achieve together.” —Stephen McDonnell [02:55]

• Potential for Economic Scale:

  • The two leaders represent a combined population of 2.8 billion, underlying the massive potential of Sino-Indian cooperation.

2. Global and Financial Market Updates

Timestamps: 04:06 – 04:54

• Chinese EV Industry:
  • Shares in BYD dropped 5% after a rare quarterly profit fall (down 30% to $895 million).
• Defense Sector:
  • BAE Systems stocks rose 2.7% on a $14 billion Norwegian warship deal.
• US Markets:
  • North American financial markets are closed for Labor Day.

3. Local Impact: U.S. Auto Dealerships Amid Tariffs

Timestamps: 04:54 – 08:45
Reporter: Monica Miller, New York State

• Dealership Experience:

  • Eleanor Gula of Larchmont, NY, describes a volatile year: initial sales surge as consumers rushed to beat tariff-induced price hikes, followed by slower business as uncertainty deterred customers.
  • “So there's definitely been a slowdown.” —Eleanor Gula [05:16]
  • “People wanted to lock into low pricing before the tariffs took in effect. But then after that settled in… consumers are concerned about pricing, how the tariffs will affect pricing on new cars. So they're delaying their purchases.” —Eleanor Gula [05:27]

• Shifting Buyer Behavior:

  • Customers are extending leases, cutting back on multiple car households, or buying used vehicles instead of new.
  • There is renewed interest in electric and hybrid vehicles ahead of expiring tax incentives, pressured by looming policy changes.
  • “They definitely want to get that vehicle before the incentives end on September 30th.” —Eleanor Gula [06:17]

• Tariffs’ Financial Toll:

  • American auto brands (e.g., Jeep, Chrysler, Dodge, Ram—parent: Stellantis) have absorbed $1.7 billion in tariff costs so far; 2025 described as a tough year by industry leaders.

• Industry Uncertainty:

  • Mark Scheinberg, Greater NY Automobile Dealers Association: “It's about affordability. Everything's about affordability.” [07:09]
  • The car business is described as the “bellwether of the economy,” subject to forces beyond local control (interest rates, fuel prices, tariffs):
    • “We got out of COVID at one point just to hit other issues… dealers are always trying to piece it all together.” —Mark Scheinberg [07:20]
  • Absorbing new costs can’t last forever:
    • “So I think there's a feeling from consumers and from dealers that we're on very shaky ground again.” —Mark Scheinberg [08:00]

• Consumer Voices:

  • One customer, Pete, sums up consumer uncertainty and patriotism:
    • “Every day someone opens his mouth and the price goes up. Tomorrow he'll open his mouth. The price goes down.” —Pete [08:13]
    • “I buy American cars.” —Pete [08:21]

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Notable Quotes & Memorable Moments

• On Geopolitical Timing and Opportunity:

  • “In a case of spectacularly good timing for Xi Jinping, India's leader has come here to try to rebuild the relationship… now India is looking around for other trade partners. And Xi Jinping may all say, well, here we are…”
    —Stephen McDonnell [02:55]

• On Consumer Sentiment in the Auto Market:

  • “So there's definitely been a slowdown.” —Eleanor Gula [05:16]
  • “It's about affordability. Everything's about affordability.” —Mark Scheinberg [07:09]
  • “Every day someone opens his mouth and the price goes up. Tomorrow he'll open his mouth. The price goes down.” —Pete [08:13]

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Important Timestamps

• 00:59 — Start of main coverage, intro to SCO summit (Sarah Rogers)
• 01:45 — Live from the summit (Stephen McDonnell)
• 02:55 — Xi Jinping and Modi, tariffs, direct flights announced
• 04:06 — Market and company news (BYD, BAE Systems, US holiday)
• 04:54 — US auto dealers facing tariffs (Monica Miller, Eleanor Gula)
• 06:46 — Impact on auto manufacturers (Stellantis, tariff costs)
• 07:09 — Dealer association viewpoint (Mark Scheinberg)
• 08:13 — Consumer insight (Pete)
• 08:45 — Closing remarks

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Summary

This episode delivers a snapshot of how geopolitical shifts and trade tensions are impacting economies on both global and local levels. From China’s assertive maneuvering at a high-profile summit to the day-to-day struggles of American auto dealers and their customers, the report captures the uncertainty, adaptation, and recalibration at play within the world economy in 2025.

Transcript

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[Sarah Rogers]

Scenes at a key summit in China, it's all about trade talks. Live from the uk, this is the Marketplace Morning report from the BBC World Service. I'm Sarah Rogers. Good morning. And we start in China, where a summit for world leaders has descended into sideline trade talks. President Xi Jinping has been speaking to world leaders, including Russia and India at the Shanghai Cooperation Organization, where he's pledged $280 million to support partner members. The Chinese leader also urged the group to speed up plans to establish its own development bank, saying the country will contribute around $1.5 billion. This, of course, set against the backdrop of trade tariffs from President Trump's administration. The BBC's Stephen McDonnell is in Tianjin where the summit is taking place. Hi, Stephen.

[Stephen McDonnell]

Hello.

[Maggie Smith]

How you going?

[Sarah Rogers]

Very well. So, I mean, this is known as a security summit, but the focus has moved very much onto economics with some very powerful nations involved. Just tell us a bit more about what's been happening.

[Stephen McDonnell]

Yes. Well, the Shanghai Cooperation Organization started off as a body all about security. So it was Russia, China and the Stans. And then afterwards, in the following years, India and Pakistan joined and Belarus, and they've got these other countries coming along as well, the likes of Iran, Saudi Arabia, Malaysia, Indonesia, Turkey, even as sort of observer nations. And as it's grown, what the body does has changed and they've expanded their focus to now be looking at questions of economics. Xi Jinping, when he spoke today, he was talking it up as a multilateral trade organisation as well as one that deals with security.

[Sarah Rogers]

Has this summit become a place to look for new trade partners? We know India has been hit with 50% trade tariffs. Is these sort of side meetings overshadowing the summit itself?

[Stephen McDonnell]

In a case of spectacularly good timing for Xi Jinping, India's leader has come here to try to rebuild the relationship between the world's two most populous nations. Just as the Trump administration's tariffs are hitting India up to 50%, now India is looking around for other trade partners. And Xi Jinping may all say, well, here we are, you know, imagine what we can achieve together. One thing, for example, that Narendra Modi mentioned is that direct flights were going to resume between the two countries. Now, I think many people who are not Indian or Chinese probably didn't even realise there were no direct flights. But if you want to get student exchanges going, if you want to boost tourism now, they've got a long way to go given how much bad blood there's been in recent times with troops shooting at one another across a disputed border, et cetera. Narendra Modi said that 2.8 billion people relying on those two leaders getting on with one another and forging a stronger economic relationship, that potential there has got to be massive for now.

[Sarah Rogers]

Stephen McDonnell, thanks so much for joining us on Marketplace.

[Stephen McDonnell]

Great to talk to you.

[Sarah Rogers]

Right, let's see the numbers. Shares in Chinese electric vehicle maker BYD slid around 5% after it reported quarterly profit fel for the first time in more than three years. Net profit dropped 30% to $895 million from last year. Meanwhile, stocks in Britain's defense giant BAE Systems were up 2.7%. That as Norway agreed to buy five new warships in a deal worth $14 billion. And of course, financial markets in North America are closed today for Labor Day. Now car dealerships across America are grappling with a new reality. As tariff policies reshape their bottom lines. Manufacturers and local dealers are walking a tightrope to absor costs and keep their customers happy whilst working within their slim margins. The BBC's Monica Miller reports from New York State.

[Monica Miller]

The end of the summer is just around the corner and auto dealers are looking to entice buyers with Labor Day sales to sell their 2025 inventories. At a car retailer in Larchmont, about an hour outside of Manhattan, a shiny red Jeep with a white bow is on display. A well air conditioned showroom and new car smell greet customers when they arrive.

[Eleanor Gula]

So there's definitely been a slowdown.

[Monica Miller]

Eleanor Gula runs her family business, which has been selling cars since 1961. She says it's been a wild ride over the past few months.

[Eleanor Gula]

In April this year, we had a big surge in business because of the tariffs, and people wanted to lock into low pricing before the tariffs took in effect. But then after that settled in, I think the following months have been slower. I think consumers are concerned about pricing, how the tariffs will affect pricing on new cars. So they're delaying their purchases. They're either extending their leases or doing more with less, maybe cutting down on the number of cars in their household or buying prions.

[Monica Miller]

Ms. Gula says she's seeing some customers interested in buying electric vehicles and plug in hybrids before tax credits expire. Under the One Big Beautiful Bill act.

[Eleanor Gula]

For example, they drive a Wrangler hybrid. They love it, and they definitely want to get that vehicle before the incentives end in September 30th. So we are seeing that for sure. And it's hard to predict the future of EVs. We've invested a lot in the technology and we trained our employees. So we're hoping that there's some fair resolution in the Future. That includes EVs.

[Monica Miller]

The dealership sells mostly American iconic brands like Jeep, Chrysler, Dodge, and Ram, which are under the parent company Stellantis. Tariffs have already cost the automaker roughly $1.7 billion. Its chief executive says 2025 is turning out to be a tough year. Mark Scheinberg is the president of the Greater New York Automobile Dealers Association.

[Mark Scheinberg]

It's about affordability. Everything's about affordability.

[Monica Miller]

With a fluctuation of interest rates and fuel prices. He says working at a car business is like riding a roller coaster.

[Mark Scheinberg]

It's got its ups and its downs. It's the bellwether of the economy in some respects. We got out of COVID at one point just to hit other issues, especially the the tariff issues. So dealers are always trying to piece it all together to figure out how they make their operations work, lots of times beyond their control. If interest rates go up, vehicle sales are impacted. If gas prices go up, same thing occurs on the retail level.

[Monica Miller]

Many American manufacturers are absorbing the additional costs that come with tariffs. But Mr. Sheinberg says that can't last forever.

[Mark Scheinberg]

So I think there's a feeling from consumers and from dealers that we're on.

[Monica Miller]

Very shaky ground again for customers like Pete. He thought the time was right to trade in his large SUV for a Jeep.

[Stephen McDonnell]

Every day someone opens his mouth and the price goes up. Tomorrow he'll open his mouth. The price goes down.

[Monica Miller]

Do you buy an American car just because you like them or because you.

[Stephen McDonnell]

Feel patriotic or just because I feel patriotic? I buy American cars.

[Monica Miller]

As Pete drives his black Jeep off the lot, his blend of patriotism and pragmatism captures the moment consumers find themselves in during these economic uncertain times. As for the local dealers, they're carefully watching to see what tomorrow's headlines might mean for the next vehicles to be traded in.

[Sarah Rogers]

Well, that from the BBC's Monica Miller and in the UK I'm Sarah Rogers with the Marketplace morning report from the BBC World Service. Thanks for listening.

[Maggie Smith]

Poetry has the power to connect our inner universe and the outer world. I'm Maggie Smith, poet and host of the Slowdown, a podcast from American Public Media. Each weekday find time to take a breather from your to do list or doom scrolling for that matter and take in a moment of reflection with a hand picked poem. Listen to the Slowdown wherever you get podcasts.