for china, if you put yourselves into china's shoes, what's the interest of china? all we need is peace abroad and the stability at home. we modernize our defense because the world is not safe. we had to prepare. that means that we are going to challenge the u.s. no, we will not do that. i don't know whether the people... whether people still remember what he say in 1974 before the u.n. assembly. you know, i was there. i was at the chinese mission to the united nations. i say china will never speak hegemony. should one day the chinese do that, i urge people around the world, i appeal to people around the world to unite and to defeat the chinese hegemony. i was in the united nations for many years. i heard many statesmen. none made such a statement. china is very serious. we'll not seek hegemony. we'll not challenge u.s. hegemony. what we want is to develop cooperation with the u.s. on the basics of equality and mutual benefits. and we did that in the past 30 years. on the chinese side, we'll keep doing that in the coming age. that was in china's best interest. >> ch

-china rerelations and what it meant to china? >> i think it was a very fruitful week, a very productive week. it goes a long way in promoting relations between china and the united states, particularly for the second decade of this century because the two sides agreed to develop a partnership based on mutual benefits and, also, a mutual respect. and i think this is very important for the world, for our two countries. >> rose: the chinese got what they hoped to gain from this-- from the meetings? >> i thinkoth sides are pleased with the results of the visit. because we are very sensitive to your concerns, and i think the u.s. has tried its best to be sensitive to our concerns. now i think the challenge is to implement what has been agreed upon. >> rose: would you agree with this statement that someone said it put a floor under the chinese-american relationship after a difficult year? >> actually, when the administration came into this office, we had a good transition, and the relations for most of the time since e administration c

and china? >> i think some of that may be somewhat dependent on what i just discussed in terms of their art -- there is cooperation between these countries on different aspects of bilateral and multilateral relationships; there are challenges. there are benefits and there are things that must be worked through. so i know that in order to make progress on certain issues, you've seen the two countries work together, despite, again, continuing to have differences on things like continued economic growth and human rights. and i think that's what you will see the president -- the two presidents discussed tomorrow. >> and will there be any joint statement after the statement? >> just a press conference, and will be coverage of the oval meeting, there will be a coverage of the ceos and there will be coverage obviously -- well, obviously the arrival, some sort of -- obviously there's some water balancing concerns that we are working for for tomorrows staff the rival -- but obviously the press conference

products to china as kind of a you know a sweetener to kind of nudge the chinese along to appreciate their currency a little bit faster do you think this is the chinese will bite i mean is this just a snow job because the u.s. doesn't have a lot of leverage here. first of all clearly more and more the chinese are in the driver's seat so there can be no doubt about that actually even independent research association based in the us in new in new york maybe michael taylor to tell us something about it if you know them there's that conference board they recently came out as a projection of saying that china at the size of the chinese economy in real terms of physical production terms when you adjust the currency for the undervaluation of on the purchasing power basis then china may overtake the united states next year to become the number one economy and also projecting if the growth rates that we're seeing are continuing for the next nine ten years you might see china making up twenty four percent of the world economic output by two thousand and twenty and the us about fifteen percent

we believe china will do so because the alternative would be too costly both for china and for china's relations with the rest of the world. >> reporter: secretary of state clinton. >> we need to open up more opportunities for american manufactured goods, farm and ranch products and services, as well as allowing currency to appreciate more rapidly. these reforms we believe would not only benefit both our countries but contribute to global economic balance, predictability and broader prosperity. >> you have seen a small move lower in the dollar but not pressureably so. >> reporter: back in november, david stek, who runs the foreign exchange desk of a securities company in new york, showed us how the dollar had been faring against the chinese currency. >> here you're looking at a long term chart. >> reporter: for many years china glued its currency to the u.s. dollar, but starting in 2005, china loosened its grip. letting the value of the dollar fall against the chinese currency, some 20% over three years. but in 2008 the world financial crisis hit. and china reglued the currency to the

and china. coming up at 10:30 eastern on this network, the house foreign affairs committee is holding a briefing to discuss current relations between the two countries including the impact of china's economic security and human rights policies on the u.s. florida republican congresswoman chairs that committee. and more coverage of the visit of the chinese president tonight as the white house hosts a state dinner in his honor. it will begin at 5:30 eastern as we'll show you guest arrivals for the dinner at 6:00 we'll have the arrival of the chinese president and his wife on the north portico of the white house. and then at 8:00, we'll bring you a discussion on the state visit including re-airs of toast. president obama and president hu along with viewer phone calls. that's starting at 8:00 pm eastern. a discussion for you on u.s./china relations. john huntsman will be speaking from the brookings institution. this is about an hour. [inaudible conversations] >> i'm kenneth -- >> good morning, to th

sell in china. today, hu focused on greater cooperation. >> ( translated ): china-u.s. relationship is not one in which one side's gain means the other sides loss. rather it should be a relationship in which the two sides respect each other and endeavor to deepen strategic mutual trust. it should be a relationship that highlights common interests and cooperation in all fields. on wednesday, president obama raised one area of disagreement -- human rights-- and hu acknowledged china has more work to do. today, white house press secretary robert gibbs said the u.s. wants chinese actions to match those words, but he welcomed hu's statement. >> i think you would all have to strain your recent memory to find a leader from china traveling outside his country, or in, after meeting with the president on number of occasions making such a frank admission of improvement that needed to happen in country of china on human rights. >> brown: as he wound up his washington visit today, hu called for both sides to foc

china's business group, lenovo, group and hire. question, china's raid surplus with the u.s. was $275 billion. so how significant, mort, is this bundle of deals yielding $45 billion? >> well it's still $45 billion, which as we see, that ain't change. it's a significant amount, but the real advantage that we are gonna have to build on is not low-cost manufacturing because we're never going to be able to compete not only with china but a whole series of companies to compete with us because they have much lower costs. we have to find a way to keep the people who have the great technological skills in our graduate schools who get to be m.a.s and ph.ds in this country. instead, we are allowing very few of them to stay. we're forcing them to go abroad, even those who want to stay. they now compete with us. in the computer industry, which was an american industry born and bred, we have 160,000 people who work here in the computer industry and 1.5 million work in asia manufacturing the goods. this is the problem that we have. we cannot compete on a price basis. >> what about the mani

-china rerelations and what it meant to china? >> i think it was a very fruitful week, a very productive week. it goes a long way in promoting relations between china and the united states, particularly for the second decade of this century because the two sides agreed to develop a partnership based on mutual benefits and, also, a mutual respect. and i think this is very important for the world, for our two countries. >> rose: the chinese got what they hoped to gain from this-- from the meetings? >> i thinkoth sides are pleased with the results of the visit. because we are very sensitive to your concerns, and i think the u.s. has tried its best to be sensitive to our concerns. now i think the challenge is to implement what has been agreed upon. >> rose: would you agree with this statement that someone said it put a floor under the chinese-american relationship after a difficult year? >> actually, when the administration came into this office, we had a good transition, and the relations for most of the time since the administration

because in china, inside china, the investors, they have enough money. they don't face some difficulties about, you know, the shortage of liquidity, so they just want to put the money here, but not a deposit. they just want to buy some property. personally, i'm chinese. i have to say that chinese individuals, they haven't been internationalized. most investors, they are selfish about profit. i think for every country investors almost the same, but we need to communicate to each other. while i think that, you know, chinese economy is still going to continue the high level economic growth and and also the investments will expand continuously to east asia countries, especially japan, korea, and other asean countries, i think, basically, this is good news for our east asian countries regionally. but i have to say we need to create some architecture and also we need to do more effort to create a win-win gain. >> that was ke long, a specialist at the research institute. investment from china is expected to grow over the years. japan faces challenges in drawing

not just our toys in the bag made in china but the image and everything else culture coming from china. or others china elicits feelings of inferiority according to the pew research center forty seven percent of americans think china is the world's leading economic power only thirty one percent think america. that's certainly the opinion among students at millinocket school in maine which will welcome paying chinese students to close its budget gap next year i think the chinese are going to be total shock i think about high tech in a way more advanced than us like ten times more money in like in a better society and then you look at a similar way poor and. as hu jintao tours the u.s. capital american officials are eager to quell fears about what a rising china could mean for the world's only superpower still some analysts say that the united states should be focusing on what it can learn from china rather than merely containing it china knows how to develop it they're doing it we're spending boring and consuming rather than saving and investing for the future a sentiment echoed by many

has been willing to buy from china and to accommodate china's rise. obviously, weakness in the american economy could change that view, but that's more our problem than china's problem. >> all right. and what about the role of the emerging economies? the three of you have been mentioning that earlier in our talk. do you think, professor, there's going to be more coordination and hope about the economic situation as well as the political situation with the rise of the emerging economies as they say? >> are well, i would say i hope so. when you look at, you know, brazil, russia, india, especially between india and china. our premier just visit india a couple weeks ago, and we signed a big deal with i could yang companies. -- indian companies. obviously, they're going to play a big role in the economy. and for cooperation in other areas i remain hopeful. but we know there are many issues out there for very close negotiation and cooperation, coordination. so in the future we have to look ahead. we remain optimistic but in the end we have to sit down and w

china relations. tell me what that blue print might be, ought to be. >> when i came to china on the first visit, when the communication was completed, jintao said to me this will shake the world. because we had been antagonists for 25 years. and it was the alliances for china which had been with the soviet union. now we have a different problem. the problem isn't to shake the world, the problem is to build the world in which in a paradoxical way both china and the united states face the same problem. from a different standpoint. americans think our values are relevant to the rest of the world. and there are many questions that we have a duty to spread our values throughout the rest of the world. the chinese don't spread spread their values. you can't be a chinese but they think they're universal and unique. so here are two of the most powerful countries in world in which there are a lot of problems that can be dealt with on a global basis. so we have to do it together in some fashion. which is not the

has facilitated the rise of china from china rises so much as the west allows it to rise but now that china is stronger and feels more secure they're starting to you can issue gets on are you starting to try to create a consumption class which in turn itself become more self-sustaining. so americans have a very codependent relationship in which trying to finances america's debts allowing america militaristic around the world control resources american consumers trying these products which are cheaply benefiting and america so they're incredibly deep and in terms of finance. they're heavily heavily in the group but there's also it's gets a frantic relationship in a sense because they're also each other's greatest competitors and this is mostly seen as competition for global resources and this is been outlined in strategy in american since the early ninety's where the aim is to prevent the rise of the power by controlling world. china and the west value for the world's resources wall street isn't sitting idle oh no. explain how those beyond the u.s. financial crash of two thousand and e

/china relations soured l.a. last year after the obama administration decided to sell arms to taiwan. in retaliation, china suspended military exchanges with the u.s. the two countries recently agreed to resume military contact. however, differences remain between the two countries over the yuan/dollar exchange rate and how to deal with north korea. ♪ >>> year after year, china prominence has been increasing in the international community and it looks as if this year as well the country will remain in the spotlight. on the economic front, china is projected to see an annual growth rate of about 9% this year, and will continue to be a driving force behind the world economy. this will become quite clear later this month when chinese president hu jintao will visit the united states for talks with president barack obama. but domestically there is growing public discontent arising from an economic divide that is presenting a major challenge to the chinese government, which will have to work out solutions to pressing

china is taking american jobs. it is mr. obama's task to demonstrate to the american people this investment, $45 billion in trade, it will directly benefit the american people and to have the white house pushing hard, saying that will support up to a quarter of a million american jobs. >> thank you. an american pastor has been banned from entering the u.k. by the government on the grounds that his presence is not conducive to the good of the public. pastor terry jones who leads the church in florida was criticized last year when he threatened to burn a copy of the kathethe gra. >> brandishing the koran he promised to burn, pastor terry jones caused international outcry when he told americans to follow his example on the anniversary of the 9/11 attacks. muslims around the world poured onto the streets to vent their anger at his suggestion. it prompted world leaders to urge him to cancel his protests and for few days in late summer, he and his tiny church in florida were in the eye of the diplomatic storm. so, his intention no

democracy in china. leslie, mr. robert sutter to has been a visiting professor of asian studies at the school of porn services in georgetown university since 2001. in addition to his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal agencies that lasted 33 years. we will begin with mr. larry wortzel. i'm sorry that i'm not so great with the pronunciations, but look at my name. i don't get too picky. i will be rather ruthless with the five minutes, so please confine yourself to five minutes. larry, you are recognized. thank you. >> chairman, ros-lehtinen, ranking member berman, members of the committee, thank you for the opportunity to address you today. that use at present are my own informed by my service in the u.s. army, on the u.s.-china security and review commission and my own research. in lat

china just is not claims against the other nations in the south china sea, china feels the south china sea as a core interest, which it hopes to dominate. think of the south china sea as china's caribbean. in geographical terms, the south china sea is what is called a marginal fee. that is it is partly enclosed, partly open to the ocean, same as the caribbean and. a chinese official said to me, when i mention that china considers it a core national interests and this is counter to what the united states and its allies in all the other countries in the area see a. this chinese officials did to me, you americans in the 19th century and in the earliest 20th, you recognize the caribbean was an international waterway, but you also made it clear that you intended to dominate. why should we chinese act any differently towards the south china sea than you americans due to the caribbean -- due to the caribbean? said the south china sea is a coming issue. it's an issue that's going to be -- that has a great future in the headline, as much as the persian gulf has had in the last few decades. so l

the rise of china is not against the prevailing edgemont in the world america but the rise of china is we in the hedge money system itself what i mean by that is that globalization which is a western driven reach driven project. has facilitated the rise of china so china rises so much as the west allows it to rise and now the chinese stronger and feels more secure they're starting to weaken issued it's on their own they're starting to try to create a consumption class within china itself to become more self-sustaining so americans are now have a very codependent relationship in which china finances america's debt allowing america militaristic around the world controlling resources american consumes chinese products which are developed cheaply benefiting both china and america so they're incredibly that and in terms of finance and banking they're heavily heavily integrated but there's also it's gets a frantic relationship in a sense because there are also each other's greatest competitors and this is mostly seen in the competition for global resources and this has been outlined in strat

and china? >> i think that some of that may be somewhat dependent on what i just discussed in terms of whether there's cooperation between these countries on different aspects of bilateral and bilateral relationship -- multilateral relationships. there are challenges and things that must be worked through. i know in order to make progress on certain issues you've seen the two countries work together despite again having differences on things like continued economic growth and human rights and i think that's -- i think that's where you see the two presidents discuss tomorrow. >> will there be joint statements? >> just at the press conference. i know there will be coverage of the oval meeting. there will be the coverage of the ceo's, and coverage obviously on the arrival -- obviously there's some weather balancing concerns we're working through for tomorrow's state arrival, but obviously the press conference and the questions tomorrow. yes? >> following up on that in terms of a joint statement. sh

has facilitated the rise of china so china rises so much as the west allows it to rise by now that china is stronger and feels more secure they're starting to make an issue that's on the oh they're starting to try to create a consumption class within china itself to become more self-sustaining so american china has a very codependent relationship in which china finances america's debt allowing america to be militaristic around the world controlling resources america consumes chinese products which are developed cheaply benefiting both china and america so they're incredibly dependent and in terms of finance and banking they're heavily heavily integrated but there's also it's gets a frantic relationship in a sense because they're also each other's greatest competitors and this is mostly seen in the competition for global resources and this has been outlined in strategy papers in america since the early ninety's where the aim is to prevent the rise of the new power by controlling world resources. the u.s. debt holder comes under scrutiny in the kaiser report later today on r.t. as max and

designed, produced and assembled in china. darren gersh, "nightly business report," washington. >> susie: here are the stories in tonight's n.b.r. newswheel: disappointing earnings pressured stocks. the dow fell 12 points, the nasdaq lost 40 and the s&p 500 was off 13. trading volume pulled back slightly on the big board, but was still above a billion shares. it rose on the nasdaq to 2.2 billion. builders broke ground on fewer new homes last month. housing starts were off 4.3% to 529,000-- the lowest in over a year. another guilty plea in the largest insider trading case ever, galleon group. former hedge fund consultant danielle chiesi admitted to three counts of insider trading. this is the 16th guilty plea. but she won't cooperate in the case against galleon founder raj rajaratnam. late today, house republicans voted to clear the way for a repeal of president obama's health care reform law. but it's doubtful the measure will get any traction in the democratically controlled senate. >> tom: still ahead, "street critique" gues

has facilitated the rise of china so china rises so much as the west allows it to rise by now that china is stronger and feels more secure they're starting to weaken issued it's on their own they're starting to try to create a consumption class with engineering itself become more sense of steam so american journal had a very codependent relationship in which china finances america's debt allowing america to be militaristic around the world controlling resources america consumes chinese products which are developed cheaply benefiting both china and america so they're incredibly dependent in terms of finance and banking they're heavily heavily integrated but there's also it's schizophrenia relationship in a sense because they're also each other's greatest competitors and this is mostly seen in the competition for global resources and this has been outlined in strategy papers in america since the early ninety's where the aim is to prevent the rise of the power by controlling world resources by the u.s. death toll comes under scrutiny in the kaiser report that they all ought to be as max and

and china. the "new york times" writes about that this morning on their front page, writing that the two countries have to resolve a wide range of economic tensions including one american multinational corporations see as a deteriorating environment for investing in making money in what has become the worlds second largest economy. the times writes it's no longer justified overachiever chinese textile and electronics and toy imports. china won that battle years ago. now the question with japan in the 1980s is whether general electric and microsoft and other american companies that dearly want to expand into china rapidly expanding markets will find themselves eaten at their own game backed by chinese companies, backed by the chinese government. those leaders of those companies, general electric, microsoft and boeing and others have been meeting with president obama and president hu just a short while ago. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible co

japan and china. japan will continue to exert its control over the senkaku islands. >> reporter: he also referred to economic relations between the two countries. >> translator: it is vital for japan and china to build a win-win relationship. we can do this by advancing discussions on free trade agreements and by further boosting trade. >> maehara said he expects he and prime minister naoto kan will visit china in 2011 and chinese leaders will also come to japan. >>> south korea confirmed its first bird flu cases in chickens and ducks in more than two and a half years. the foreign ministry says the virulent h5n1 strain of avian influenza was discovered on friday at two poultry farms in the southern part of the country. local authorities have destroyed 7,000 chickens and 10,000 ducks. they have called more than 90,000 chickens at a nearby farm to prevent the flu from spreading. the transport of chickens and ducks has been band within areas of a 10 kilometers radius of the outbreaks. early in 2010 south

and some in china worry that the united states is bent on containing china's rise and con training china's growth. a view that is stoking a new streak of assertive chinese nationalism. we reject those views. in the 21st century, it does not make sense to apply zero-sum 19th century theories of how major powers interact. we are moving through uncharted territory. we need new ways of understanding the shifting dynamics of the international landscape. a landscape marked by emerging centers of influence, but also by nontraditional, even nonstate actors and the unprecedented challenges and opportunities created by globalization. this is a fact that we believe is especially applicable to the u.s.-china relationship. our engagement, indeed, i would say our entanglement can only be understood in the context of this new and more complicated landscape. i said when i first went to china as secretary of state early in my tenure that there was an old chinese saying that you are in the same boat, you have to row in the same direction. we are in the same boat. and we will either row in the same direction

-china relations. in honor of this very historic moment, i would like to propose a toast to presidents hu and to his esteemed delegation. kombai. to the great future of china, the great future of the united states, and to the continued health of strong-u.s. relations. now i would like to introduce a gentleman and friend who plays a critical role in shaping health u.s. relations with china. secretary of commerce, gary lauck has graciously agreed to make remarks on behalf of the obama administration this afternoon. secretary locke last month co- chaired the meeting last month. two leaders of the dialogue are here today with us, the co- chair, ron kirk and well month lows in this room, a town of's -- john's the vice premier. i applaud and thank all three of you for the important work. [applause] secretary locke is a strong supporter of balanced and instructed u.s.-china relations. we are fortunate to have him representing our commercial interests here and around the globe. we're fortunate to hear his rema

-china relationship. our engagement, indeed, i would say our entank lment can only be understood in the context of this new and more complicated landscape. i said when i first went to china as secretary of state early in my tenure that there was an old chinese saying that you're in the same boat, you have to row in the same direction. we are in the same boat. >> host: comments last friday this leading up to the state visit of president hu jintao. let many ask you about u.s. businesses complaining that china has not opened doors enough. >> guest: there's no question that u.s. businesses at the forefront of the u.s.-china relationship especially large multinationals for two decades now have cooled quite a bit. they are concerned about china's future policies and future openness to large-scale u.s. business activity in china. they seek policies surrounding what the chinese call indigenous innovation. there's a larger state sector, a continuing weak intellectual property rights regime. you put these and regul

they swim in the east china sea. much remains unknown about the species. >>> we'll be back with more news in 30 minutes, i'm gene otani. -- captions by vitac -- www.vitac.com

in china. so this is a new development. as ambassador hans van mentioned , investment in the infrastructure project is small and medium-sized enterprises in america's south and west will help of its economic recovery and job creation. i think this will show that china u.s., naturists are moving from the strategic macrolevel to a micro level. during this two days, apart from a dialect, china and u.s. relations, we shall also explore ways to develop convergence adventures in these communities between our two countries is certainly an important areas of clean energy. i believe this kind of discussion will not only contribute to the global effort to address the challenge of climate change, but also help promote low carbon development and energy security for respective countries. in addition, you may crave our business opportunities for two countries. china u.s. practical cooperation in clean energy surely can expand and deepen the convergence adventures and become an important part of the communiti

products to china as kind of a you know a sweetener to kind of nudge the chinese along to appreciate their currency a little bit faster do you think this is the chinese will bite i mean is this just a snow job because the u.s. doesn't have a lot of leverage here. first of all clearly more and more the chinese are in the driver's seat so there can be no doubt about that actually even independent research association based in the us in new in new york maybe michael taylor to tell us something about it if you know them that's the conference board they recently came out as a projection of saying that china at the size of the chinese economy in real terms of physical production terms when you adjust the currency for the undervaluation of on the purchasing power basis then china may overtake the united states next year to become the worst number one economy and the odds are projecting if the growth rates that we are seeing are continuing for the next nine ten years you might see china making up twenty four percent of the world economic output by two thousand and twenty and the u.s. about f

you know the capital of china know nothing about china can you name the chinese president. yes and no i will be forgotten. the media's negative message about china is obviously reaching the viewers one in five americans think china is the biggest threat to the us and as it turns out this appears stems from a simple lack of knowledge is that your cannot read to new york. or perhaps the a lack of knowledge amongst average americans when it comes to china stems from the lack of consensus from within our media our political class on how to really categorize the country economically militarily there are power on the rise but is that a good thing or a bad thing for america while some shine a spotlight on china and its successes its clean energy sector while usa today editorialized that china's smart moves only highlight the foolishness of our own actions you also have members of congress calling hu jintao everything from a dictator to a baby killer and a big red threat so does china have everyone stopped joining to discuss it as michael barnes attorney and policy advisor for d.c.

products to china as kind of a you know a sweetener to kind of nudge the chinese along to appreciate their currency a little bit faster do you think this is the chinese will bite i mean is this is the snow job because the u.s. doesn't have a lot of leverage here but first of all ok more and more the chinese driver see it so there can be no doubt about that it's actually even independent researchers are safe and based on the u.s. and europe maybe michael can also tell us something about it if you know them that's the conference board they recently came out as a projection saying that. as the size of the chinese economy in real terms of physical production terms just the currency for the undervaluation of on the purchasing power basis then china may overtake the united states next year to become the worst number one economy and their odds of projecting if the growth rates that we're seeing are continuing for the next nine ten years you might see china making up twenty four percent of the world economic output by two thousand and twenty and the us about fifteen percent of china will be

need to be done in china in terms of human rights. [speaking chinese] >> we will continue our efforts to improve the lives of the chinese people and we will continue our efforts to promote democracy and the rule of law and our country. at the same time, we are willing to continue to have exchanges and dialogue with other countries in terms of human rights and we are also willing to learn from each other in terms of the good practices. [speaking chinese] [speaking chinese] >> [english translation] china is willing to engage in dialogue with the united states on the principle of non- interference in each other's internal affairs. we will be able to further increase our mutual understanding, reduce our disagreements, and expand our common ground. >> speaking chinese] >> speaking chinese] >> as to who is attending the dinner, that is a question best answered by president obama. >> you said the inmates to be further adjustment in the exchange rate. to what extent is the depression of the chinese currency affect your ability to grow jobs in

china, china is of two minds in this. of the one hand china would eventually like to see a more low--calorie gorbachev and style buffer states, a kind of of authoritarian capitalist trending in north korea that would be blessed stalinist it, less extreme than the current regime. on the other hand china is afraid of pushing this too far because it fears the collapse of north korea because the bulk of north korea's population and industry is in the northern part of north korea. were you to have a collapse of the state you could have millions of north caribbean refugees flooding across the river into chinese manchuria itself. china is very much afraid of that. so why would it want a regime that is less tolerable than the current stalinist monstrosity. at the same time, china is very fearful of a collapse. so china is upholding the status quo in north korea, but my opinion is that a regime like this is ultimately not viable in the world that we live in today. were the north korean regime would unravel suddenly, you could have

>>guest: china is in such trouble without us, we are rebuilding china and we have the power and we are rapidly losing that power because they will take things over, but we are the ones with the power because they make our products, they are rebuilting their cities with the money we have and the jobs they have, and it is an absolute outrage and the president of china comes here and we greet him and obama will drop to his knees and kiss his hand and i don't get it. >>neil: the president will not drop to his knees. >>guest: we will see what happens. >>neil: this is a familiar show. you thing we are always feel be beholden to the chinese and we hold the chips. what are they? >>guest: they are manipulating the currency so it is hard for us to compete with the currency and i know because the products i order unfortunately come from china because our companies cannot compete in terms of glass and many other products. they cannot compete with what china is doing. by the way, now they are trying to take the airline industry away and the ail manufacturing industry, wait until you see what happen

think of the south china sea as china's caribbean. it's a -- in geographical terms, this sea is a marginal sea. that is, it's partly enclosed, partly open to the ocean, same as the caribbean is. a chinese official said to me when i mentioned that china considers it a core national interest, and this is counter to what the united states and its allies and all the other countries in the area see it, the chinese official said to me, you americans in the 19th century and in the early 20th, you recognize that the caribbean was an international waterway, but you also made it clear that you intended to dominate it. why should we chinese act any differently towards the south china sea than you americans did to the caribbean? so the south china sea is a coming issue. it's an issue that's going to be with a great future in the headlines as much as the persian gulf has had in the last few decades. let me close up with this idea that mill trair activity -- military activity is often not linnier. the vietnam war was more like the philippine war at

and china. as president obama hosts president hu next month, we are reminded of the issues with china. looking forward, the u.s. relationship with china is highly challenging and complex and frankly it raises more questions than answers at the moment, but it is our job to search for the answers and remember the concerns of the average americans who elect and send members of congress here to be a part of the process. it is also important for us to keep in mind, i think, the view of the average american who takes seriously the warning in our rearview mirror that objects may be closer than they appear. that at least is what i plan to do. i take seriously the challenges facing our nation internally and on the stage and look forward to working with colleagues on both sides of the aisle to bear down focus and address these challenges. i'm grateful to ppi for this opportunity this morning and i hope i contributed something as a new member of the senate in wandering if we will play a strategic role. tha

so when china was buying -- japan imports more than china, then imports from china. so that china has a negative trade balance. it has high power equipment and earthmovers and high-end steel. so when china is building and buying, japan is doing okay. when china isn't, japan collapses. the problem is japan hasn't solved a their domestic consumption issues. it's almost entirely depend on how does china go or not go. there's much less willingness to cast a lot with china because of the historical pride in tension. i wouldn't hold one's breath about that kind of fusion between japan and china except for the fact that already japan's growth is a derivative and dependent on china. so there's kind of de facto. it's much less clear, particularly 10 years down the line if china does which is likely to do make a lot of us have japan is doing but it's not clear what japan add to that equation because it's not a market. for all the discomfort, the fact it is such a vibrant market, even in a humble state china's trade with the united states dropped 10% this year. it's about what

it is easy to beat up on china, because china cannot respond, in the middle of an election in your specific district. i am not saying there are not issues with china we need to address. there was a lot of anti-china rhetoric in this last election. that is one issue on which there is a divide in this town. there is china and a litany of other things i could roll out. you are all aware of that. what say you about what is or is not going to happen, courtesy of this new divided government here in washington? >> we have got nine hours or a little longer, we can talk about it. it is tough. it is a complicated issue. i think it starts with a moral factor in this country as it relates to god. because if you think about it -- i travel around the country and talk to people like jim wallace on the left and ralph reed on the right. here is one thing they agree with. there is a moral crisis in this country in everything from wall street to the housing market to what has happened economically. i would suggest there is a lot of common ground that can be found in this area of economic catastrophe, if you w

so again i think a lot of the preconception about china and also. wrong in the best. taste quite a biased on those economies. are not justified you know michael it's interesting i mean again just looking at the western mainstream media you know in about the visit of the chinese president i mean in looking back at the room the midterm elections i mean blame china and blame these people blame everybody americans just love to blame everybody else but they don't want to look an inside and look at themselves and to see what they have done wrong every country makes mistakes and hopefully countries have the ability to learn from their mistakes is the united states doing that because as this trip is about to happen i just see again really just slurs and people they simply have no idea what they're talking about. here's the problem that's being missed every economy since the stone age has been a planned economy the question is who's going to do the planning if the government doesn't plan you're still going to have a planned economy but the planning is being done by the financi