What the Trump-Xi summit means for global power & Why SA’s SMMEs are struggling to scale

SPEAKER_1 (0:00)

And now, The Money Show with Motheo Khoaripe.

Stephen Grootes (0:09)

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Welcome to the Friday edition of The Money Show. It does feel like it's been a long week. You had a little bit of a break in between because marking, of course, the Heritage Day holiday that's meant to have had a longer week and that's punished the JSE as a result. We'll cover markets later, looking at those lower volumes coming out of the local market. MTS. Suleman, director and portfolio manager at Centure Capital, joining us to break down the numbers locally, but also the macro numbers that came through as we had a lot of key meetings this week, especially with the US and China. We'll see how that has affected the markets. But our key conversation this evening, we'll be looking at the Trump-Xi Summit that happened this week. The president Xi Jinping going to the US for the first time in more than a decade to try and iron out the trade conditions with the world's largest economy, but also looking at things like the advancement of AI and, of course, the technology wars between the two countries. We'll be breaking that down with Professor David Monyae, Professor of Political Science and International Relations at UJ, and also the Director of the Centre for Africa-China Studies. In our Money Show explainer, we look at South Africa's small and medium enterprises. They're surviving. They're also providing employment, according to States SA, but they're struggling to scale. They still remain small, still remain medium when the country needs them to grow bigger, of course, to make sure that we make a dent on that unemployment number. We'll be talking to Maude Modise, Enterprise and Government Relations Executive at Shoprite a little later. Then South Africa has key ambitions in motorsport, looking to have Cape Town as one of the calendar destinations of the Formula One event by 2031 South Africa's race to become a global motorsport destination is on, and we'll be looking at just what we need to do in terms of infrastructure, and also attracting some of the investment needed to pull off such a great event. Nabila Ndrovu, the founder of Cash and Sport Research and Advisory, joins us for that conversation. All that and more on The Money Show. But for now, let's talk money.

SPEAKER_1 (2:44)

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Stephen Grootes (2:56)

All the United States securing an extension of its trade truce this week with China, but only for a short period. US. Treasury Secretary, Scott Besant, saying the two sides agreeing to extend by two months a trade agreement that ended last year's trade war and was due to expire in November. The extension would give Washington and Beijing more time to see what they can both do on the economic front. We're now joined by Professor David Monyae because, of course, that conversation goes beyond Washington into the rest of the world economy. The Professor of Political Science and International Relations at UJ and also the Director of the Centre for Africa-China Studies. Professor, welcome to The Money Show.

David Monyae (3:43)

Good evening. Thank you for having me.

Stephen Grootes (3:45)

We saw the return of Panda Diplomacy by China offering to send some pandas from their research units in China into the United States, something of soft power. Can you explain what the play is there from China?

David Monyae (4:02)

That's one of China's best ways of demonstrating friendship, sending pandas to Atlanta. I think a positive move that is showing the fruits of the discussions and the previous visit by President Trump to China and now President Xi's visit in the US. I think, put it briefly, it is just management of this rivalry and stabilizing instead of a major breakthrough in terms of resolving issues. I think they are now in a phase in which the rivalry is being managed better.

Stephen Grootes (4:48)

And, you know, one would have expected a lot of fireworks with the world's largest economy and the second largest economy leaders meeting in Washington. There's a lot to talk about in terms of trade, rare earths and who's getting what and what the regulations are on different companies from the US and China. But none of that, just a well-managed situation, like you're saying, between the two, a lot of respect are shown from both sides.

That very deliberate, given that both sides were basically kicking the can down the road with this particular agreement, not touching on things like rare earth supplies, not touching on things like tariffs or Chinese purchases, just saying we'll wait for the next round of negotiations. So this visit really a polite way to say we can still sit at the table.