to cross china is number one i'm joined by you and alan in our lando he's director of the china center at rome's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tike group and in chicago we have joshua littman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross i've been you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy is already surpassed the american one how do you look at it. yes so you're saying that the most optimistic viewpoint is there that the chinese economy may already be twenty percent larger as in the united states one so they aren't entirely sure where it is but certainly from our point of view the perspective of europe and from the united states and europe is generally. china is lacking far behind and we think that's clearly not true and a

cross talk china is number one i'm joined by you and alan in orlando he is director of the china center at roland's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua littman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-legged means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy has already surpassed the american one how do you look at it. well yes as you are saying that the most optimistic viewpoint of their time is economy may already be twenty of us and largest in the united states one so we aren't entirely sure where it is but certainly from our point of view the perspective of anyone from the united states and europe is generally a that still china is letting far behind and we think that's clearly not

aside so it would take a long time for china to become a member but china has interests in maintaining the internet internationalization of the arctic ocean and also right of passage for for for chinese ships. because of global warming and i think the northwest passage is possible. china has not won one to pay canada or the us for the use of two right so i guess we're trying to. be fair game for every ad by the and if you don't have it it doesn't harm to fly for indeed china is a growing economic superpower doing deals there obviously very lucrative but some european worried about losing more influence to china. well. the. four go include conclusion we are for europe recession and china growing least eight percent a year. china oh pace europe economically soon or later maybe sooner. global community. except. for china's economic superpower and. with china rugged and opposed to china right francis long managing director of investment firm mycenaean holdings live with us on the line from hong kong thanks for your analysis. south sudan's president says that sudan has declared war on his s

the president of china, mr. hu jintao, visited america. the and the vice president of this country, mr. biden, visited china in august. this was a very important visit. there is another next week. we saw last year a record growth of our people to people exchange. according to that temporary statistic, in the first nine months of last year, 1.0 7 million chinese tourists visited this country, the biggest increase of 27.7%. more than 2 million american people visited china, which means on average, every day, more than 9000 people are crossing the pacific. nowadays, about 160,000 chinese students are studying here. you have more than 20,000 american boys and girls studying in china. we saw a new record of our bilateral trade. last year, america experted $167.70 billion to china, up by 19%. that makes china and america each other's second-largest trading partner. the state of california placed a large role in this relationship with china. the state of california experted $10.50 million to china, an increase of 19%, making california the larges

china relations because we often hear from u.s. politicians especially in election year is very hawkish rhetoric towards china and i played one example of mitt romney saying i would label them a currency manipulator if i was in office i'm curious from your perspective you would buy businesses doing business in china that i would presume see china as an opportunity i'm curious what their perspective is from them how do they see china as an opportunity to have exactly right it's a two hundred billion dollar market for u.s. companies and u.s. products and services and we see that very clearly and a number of things are happening to try to win hands that opportunity i think what china has just done here with its currency flexibility move just right now yesterday is a very good move because i think it begins to to play down some of the political concerns about currency many companies are not as concerned about currency as i believe perhaps some politicians and some others here at home where we're jobs may or least perceived jobs have be

sea and it's leaving china on edge the u.s. and the philippines maintains that this is all simply an exercise but china sees it as a provocation this has tension mounts between the philippines and china over disputed territory at the drills are happening here on the western philippine island of palauan there is a standoff between the philippines and china over who has the rights to the nearby waters the philippines says the area lies within their territory china claims it's theirs and there's a lot at stake the island said on what some estimate to be around fifty billion dollars worth of oil china also and territorial disputes with area in the area with indonesia taiwan and vietnam so are the military drills a sign of what's to come and will they be a step toward pushing china to a breaking point to discuss this dr paul craig roberts former reagan administration official joins us joins us now welcome paula so the u.s. and the philippines say these are only drills nothing to be alarmed over but is there more to it. of course the

across china is number one i'm joined by even our own in our lando he is director of the china center at rome's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua lipman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-eyed and you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy is already surpassed the american one how do you look at it. yes they are saying that the most optimistic viewpoint is they're trying as economy may already be traders and largess and the united states won so entirely sure where it is but certainly from our point of view the perspective of the european from the united states and europe is generally a that still china is letting far behind and we think that's clearly not true and apart from

well a few reasons the first reason is that china and iceland have been negotiating a potential free trade agreements and sue thousand and six. after iceland's banking crisis in late two thousand and eight then it became possible that she was interested in joining the european union which would of course negate any potential free trade agreement with china. the iceland e.u. negotiations are now in doubt and china is very interested in perhaps reviving free trade talks so that's one major reason second though is that china has really begun to identify iceland as a very important potential arctic partner iceland is not only a very. centrally important part economically but it's also very geographically significant because of its location in the arctic. well it's also interesting you know last year a chinese tycoon property tycoon tried to buy a large swathe of land and the north of the country for a tourism project but that deal was blogged down by the government of iceland after three years china might use the as a trance arctic shipping port so this official trip now to iceland chang

estimate china's polar developments capability actually china has one up there was most advanced color research and development capabilities china has been investing a shooter amount of money and for a long time into this whole about among the courses i think china is actually said are very far away targets there no doubt this area is a very strategically important area and there are. a number of threats inside china very good. future development in the region. we cannot underestimate that's all right brian if you can how much do you think in china hope to achieve what if arctic ambitions. i think first of china will use always diplomatic skills to try to gain more support from from the not a country which are more friendly towards trial in this region are not a problem are another uses or china were also us is an army our each should gain the support current city but worst is you know crisis specially if for example i sir and i think china will owe you are you small fees or wells to do to gain their support in the region. right now after a gang can thanks very much indeed had to resea

and must work with china. so even though there is a lot of tension and competition, in the end i think it is in the theater's interest, the leaders of both countries recognize that it is in their interest to contain the pressures for competition particularly for distressed. think the most critical single problem we now refer to as his term strategic distress. it is we are not sure of chinese military intentions and they are not sure about american. we hear the chinese leaders say they want a peaceful rise, but then in the south china sea, there's many patrol boats that are coming in conflict with the patrol boats from other countries. so i think it is going to take up a lot of determination on the part of a lot of theaters and much more open discussion of military goals and much more transparency in military preparedness on both sides in order to achieve the kind of cooperation and peaceful future that we all want. >> china faces a lot of challenges today, not just internationally. many of them challenges crea

ready to be second best to china and as china becomes number one pullet demanded a change of the rules that have benefited the west for decades even centuries. the change in the sand. across china is number one i'm joined by even alone in orlando he is director of the china center at roland's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua lipman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-eyed it means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy is already surpassed the american one how do you look at it. yes so you're saying that the most optimistic viewpoint is there are bad the chinese economy may already be traders and lies and the united states won so the i'm entirely sure where it is but cert

ready to be second best in china and as china becomes number one put in man to change the rules that have benefited the west for decades even centuries. to. live. to cross china is number one i'm joined by you and alan in our lando he is director of the china center at roland's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua lipman he's an associate with the boston consulting group and has done prior research on the chinese currency i german this is cross-eyed it means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy is already surpassed the american one how do you look at it. yes so you're saying that the most optimistic viewpoint is there a chinese economy may already be traders and large as in the united states once or who i'm entirely sure where it is but certainly from our point o

for china's economic superpower and except work with china rather than outpost china. south sudan's president says the attacks on his state by rival dan i'm out to a declaration of war sudanese warplanes bombed a town in the south on monday killing mccloy injuring ten people thousand military say eight more bombs were dropped overnight on the president's comic comes during a visit to china to seek funding for a new oil pipeline survive its neighbor has been fierce fighting for weeks and the struggle over a border dispute which has been simmering in south sudan gained independence last twenty years ago the split decades of civil war there has to made it one. half a million lives political analysts charlie at says china has a chance to market it's. typically there is a conflict like these you know it's usually washington are you going to have problems getting in it here's a golden chance for you know asian powers emerging economies to make you know an important diplomatic intervention that will show there be another world order is changing otherwise you see leave it agai

china is the world's largest auto market. the new car sales have been slowing down amid rising fuel prices. >> we would like to be leader in electric car and we want to be at the top level in term of fuel efficiency in all of the other segments of the car market. >> toyota revealed a prototype of a new hybrid model which the company plans to produce and sell in china by 2015. china automaker byd is displaying plug in hybrid vehicles. the chinese government aims to have over 5 million ecofriendly vehicles on the roads by 2020. it plans to provide subsidies on experimental basis for buyers of ecofriendly cars. >>> baby greens are becoming popular in japan, but vegetable farmers often run into trouble trying to ship the salad leaves. different kinds of leaves grow in different season. one japanese company has overcome the problem and is expanding rapidly. nhk world has more. >> reporter: this is where baby greens grow. >> translator: the farm is run by a company in southwestern japan. it grows 15 kinds of vegetables including ga

in china, then that would be an enormous opportunity for the company. >> tom: china is now responsible for a fifth of apple's iphone sales and the so-called "halo effect"-- when iphone customers also buy apple computers-- is in full-effect in china. mac sales were up more than 60% in china. like apple, tonight's "street critique" guest sees opportunity in china. asset manager jim oberweis joins us in just a moment with a chinese mobile internet stock pick. we know the investment world is in love with apple. after all, it's hard not to notice a stock that doubles in less than two years. still, small investors do not feel as kindly towards the rest of the market. suzanne pratt tonight on the concerns of smaller investors. >> reporter: this has been a good year for financial markets. stocks are up, bonds are holding up and volatility has been limited. so how are retail investors navigating 2012? t.d. ameritrade's c.e.o. says they're still very cautious about investing their money. >> they have a memory of last year at this time when the market went up, and then things came unglued in the

capabilities and areas such as south china china sea now there are forty seven thousand u.s. troops stationed in japan twenty thousand american troops stationed in south korea with the u.s. maintains bases in both of those areas additionally washington recently announced plans to build a military defense shield in asia and the middle east clearly none of this news is making china any happy because as you mentioned all of this defense from the u.s. is being built up in its backyard now back in january after president obama announced his quote unquote defense pivot plan china released a statement basically telling warning the u.s. to be careful with its words and its actions in a statement released by the ministry ministry of defense china called america's accusations baseless and said it would close. sleep served the impact of america's military in the asia pacific so this latest step is not going to make china happy the very least we'll see what their response is bite as we're reporting now on how thin reporting the u.s. is moving forward with building up its military presenc

yand probably lesser than china. china has been open arms. india less so. but i think overall clearly they want to see more foreign investments. it's needed. they can't run away from it. >> who will benefit from all this, china? >> possibly. china has open door policy, china is a lot more welcome as far as foreign investments are concerned. you see a lot more money pouring in to china. with india, i think the system is a lot more rigid. it's clearly a lot no bureaucracy. i think china will benefit from the oil flow. >> great. you'll continue to stay on with us. time to zero in on south korea. moody's raising the outlook for the country's sovereign credit rating for the first time since april 2010 from stable to positive. >> yes, this is a nice vote of confidence for the south korean economy and it could improve a global appetite for the country's assets such as the yuan and equities. they're siting midterm economic outlook and steadily improving fiscal positions and banking sector. the credit officer for asia and middle east told cnbc earlier today. >> if k

council meeting. >>> china's leaders are calling for calm. the country often acts as a link between the north and the rest of the world. our susumu kojima tells us how the launch is playing out there. >> chinese state-run media has been giving friday's events in north korea front page coverage, quoting u.s., korean, and japanese media. however, some in beijing are still not sure. >> translator: did you hear the news? >> translator: no, not yet. >> translator: they say they failed. >> translator: i'll find out later. >> translator: what do you mean? north korea never fails. >> reporter: a foreign ministry spokesperson told reporters that the government is asking concerned nations to act calmly. >> translator: china is carefully watching how other countries react to the launch. we hope to continue the dialogue among concerned nations in order to maintain peace and stability on the korean peninsula. >> reporter: in the days before the launch, the united states, south korea and japan asked china, as a permanent member of the u.n. security council

ready to be second best in china and as china becomes number one put the man to change the rules that have benefited the west for decades even centuries. to cross china is number one i'm joined by you and alan in orlando he is director of the china center at rome's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua littman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-eyed means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy is already surpassed the american one how do you look at it. well yes you are saying that the most optimistic viewpoint is china's economy may already be traders and largess and the united states once saw an entirely sure where it is but certainly from our point of view the perspective

we were not one to people would other countries to come the expression a strong china china is now china's maybe it's not really in a big enough to petro ocean as of now but. that will start china's premier in trying to exercise some diplomatic reach even to the arctic ocean because china great now is the second largest economy and he has a stake in just about every economic issue will for europe wallow in recession and china growing at least eight percent a year. and china outpace europe ecological is soon or later maybe sooner and i think the global community. in accepting the emergence of china as an economic superpower and we accept work with china rather than opposed to china. israel says it's not playing games with threats to attack iran the country's defense minister insists it's not just belligerent rhetoric to bully tehran into abandoning its nuclear program but israel's apparent failure to sense for accounting may suggest otherwise as pulse clear explains. the rule very family lives the missile range of gaza for years they complained to the government they had no shelter to prote

rather than our coast of china. israel says it's not playing games with its threats to attack iran the country's defense minister insists it's not just belligerent rhetoric to bully tehran into abandoning its nuclear program but israel's apparent failure to repair its citizens for retaliation may suggest other writes its policy or explains. the rule very family lives in missile range of gaza for years they complained to the government they had no shelter to protect them from because some rockets fired by hamas but disappointed in the group town wasn't a top priority for tel aviv far from it prompting yakov to eventually build a shelter himself to protect his family so we went through some very tough years we used to worry all the time every time we left the house we were in danger when we went to the store to school or to work it took a direct hit on our course house five years ago before the government finally woke up and bought him a shelter opposite the one he really built himself now across his halls close to ci

decoding china data. is growth north of 8% really cause for concern or should we be scooping up energy and material shares right now? we're breaking it all down with a top china expert. and selling the bank earnings. wells and jpmorgan fail to wow investors. we're looking ahead to the big reports next week from bank of america, goldman, and of course, citigroup. welcome to "the fast money halftime report." lots to trade today. let's start doing it. pete najarian, obviously, it's a down week for stocks, major averages off more than 1% or so. it's been a turbulent week at that. and even apple's down. >> right. >> maybe we're seeing some cracks in apple at this point. what are you seeing? >> i don't know that we're seeing necessarily some cracks. i just think we're in this pause stage that we've seen before in apple when we were down near the $400 level. we did get a few pullbacks underneath $400 on a couple occasions only to completely explode to the up side. so i'm not sure yet that we're seeing any cracks

also rest of the china. i think -- i always expressing 1.2 billion chinese people have every right to know the reality. once people know the reality, 1.3 billion chinese people also have the ability to judge what is right, what is wrong. therefore, the censorship is immoral. chinese people should know the reality. so censorship is really -- >> if the censorship goes and the reality comes out, there is more chance of a deal? >> certainly. 100%. >>> let's take a short break. i'm going to come back and talk to you about america. i want you to tell the american people what you think of modern america and how to keep america great. because you've seen america for six decades, seven decades now. i'm interested in your view. the chevy cruze eco also offers 42 mpg on the highway. actually, it's cruze e-co, not ec-o. just like e-ither. or ei-ther. or e-conomical. [ chuckling ] or ec-onomical. pa-tato, po-tato, huh? actually, it's to-mato, ta-mato. oh, that's right. [ laughs ] [ car door shuts ] [ male announcer ] vis

china relations because we often hear from u.s. politicians especially in election years very hawkish rhetoric towards china and i played one example of mitt romney saying i would label them a currency manipulator if i was in office i'm curious from your perspective do you advise businesses doing business in china that i would presume see china as an opportunity i'm curious what their perspective is from them how do they see china as an opportunity and got that exactly right it's a two hundred billion dollar market for u.s. companies and u.s. products and services and we see that very clearly and a number of things are happening to try to win hands that opportunity i think what china has just done here with its currency flexibility move just right now i guess a is a very good move because i think it begins to to play down some of the political concerns about currency many companies are not as concerned about currency as i believe perhaps some politicians and some others here at home where jobs may or least perceived jobs have been

what tells us when china is slowing down, china continues to have the structural problem that is killing our own economy. that structural problem is that it's heavily export dependent. in order for china to grow it basically over the last few years has flooded united states and europe with illegally subsidized exports. >> when you say illegally subsidized exports, what do you mean? >> run them down. china manipulates its currency which acts as a tariff. >> lower than it should. >> right. >> doesn't let it float freely. >> stops cheap at walmart. they engage in illegal export subsidies. when they send something here, they give the producer an extra amount of money. so if a company in akron, ohio is trying to compete with a company there, they can't do that. so we lose jobs there. they steal our intellectual property, which lowers their cost. a pharmaceutical or automotive firm here can't compete fairly. >> you're conveniently missing one point. that is there is one other beneficiary to everything else china is doing. >> the consumer. >> the consumer. >> our stuff is cheap because of all t

yes, there is china. and to be fair, china challenges the concept, challenges the idea that authoritarianism is not stable. there are some who say, well, it's actually more efficient, this authoritarian capitalism. but let's not forget the strains and stresses that are emerging now in china as it makes the greatest socioeconomic leap in human history and does wit a 1.4 billion people. i was first in china in 1988. and the streets of beijing were competition between a few horse carts and a few automobiles and a whole lot of bicycles. that's not beijing today. they have lifted hundreds of millions of people out of poverty, but they've got many, many more to go. and the stresses and strains are showing whether on labor unrest that are driving wages up and changing china's profile in the international economy, to product safety problems, bullet trains that fall off the tracks or baby milk formula that is poisoned, and, oh, by the way, the first impulse was to execute the guy in charge of product safety. not a

let's talk china for a moment. china has become, in your lifetime, arguably now one of the great super powers of the world. and they may economically in the next 10 or 15 years become the number one super power in the world. what do you think of modern china and how it's changed in the time that you've been dalai lama? >> china, most populated nation. and also long history. i think really, china, chinese, i think they have a really long history of civilization, rich culture. and the richness of their food. however, in modern china, a lot of ups and downs. but i have full faith chinese people, they are hard work ing ing. so i think the last six years, i think they already tested sort of the difference of experience. i think they, modern china, they got sort of the experience in the revolution. it seems they opened their eyes. so things are changing. somehow life-long communists, so they very much keep the political power. now, that also is now changing. now prime minister quite often, i think he's meeting with cnn,

is developing or china is using, how much of it was developed at home in china, how much of it was bought from europe and elsewhere, including in the united states and then how much it is just outright stolen? >> well, as the staff report -- as the staff report makes clear, once china's military modernization direct function of its economic development. today they are -- we're witnessing 9%, 10% growth, it's slowing down a little bit today, but with their economic growth they've had -- >> surpassed japan. >> surpassed japan as the second largest economy. with their economic growth, they've had more resources to spend on military modernization and their military budget, including r and d and procurements of foreign weapons systems is second in the world, it's about thrrs 160 billion estimated on an annual basis. so they have money to spend. but they also have a national commitment to move up the technology chain, to have a lot of investments in research, they require foreign companies that come in there to turn over technology. >> they have full access to all that research. >> yeah, as a c

china was riding shotgun! u.s., we were in the backseat, hobbled by divided congress, dysfunctional washington. how dysfunctional? at a time when it looked like the economy might finally be able to grow on its own accord, the president and congress couldn't agree to extend the debt ceiling. we were almost the first nation in history to default on its obligations by choice, not because we couldn't pay. worst, as the fall went on and morphed into winner, our european driver lost the car, while the shotgun-riding chinese was busy shooting itself in its 2 billion feet -- 2 billion people, 2 billion feet, an arithmetic issue there. at the time, what were we doing? well, we were asleep, doing nothing. periodically waking up and asking our parents in front, are we there yet? we should be given some dvds or some ipads to keep ourselves busy. but a funny thing happened when 2012 began. we changed drivers! as our domestic data got storied, the united states has been able to seize control of the wheel. europeans, they've

and rest of the china. i think -- i always expressing 1.2 billion chinese people have every right to know the reality. once people know the reality, 1.3 billion chinese people also have the ability to judge what is right, what is wrong. therefore, the censorship is immoral. chinese people should know the reality. so censorship is really -- very, very sort of -- >> if the censorship goes and the reality comes out, there is more chance of a deal? >> certainly. 100%. >>> let's take a short break. i'm going to come back and talk to you about america. i want you to tell the american people what you think of modern america and how to keep america great because you've seen america for six decades, seven decades now. i'm interested in your view. >> america. >> after this break. ♪ ♪ [ male announcer ] with 50 horsepower, dual overhead cams and fierce acceleration, the gator xuv 825i will shatter your expectations. ♪ and so no one gets left behind, check out our affordable xuv 550s at johndeere.com/gator. ♪ >

sea and it's leaving china on edge the u.s. and the philippines maintains that this is all simply an exercise but china sees it as a provocation this as tensions mount between the philippines and china over disputed territory but drills are happening here on the western philippine island of follow on there's a standoff between the philippines and china over who has the rights to the nearby waters the philippines says the area lies within their territory china claims it's theirs and there's a lot at stake the island sits on what some estimates of be around fifty billion dollars worth of oil china also has territorial disputes in the area with in the nisa taiwan and vietnam. so are the military drills a sign of what's to come and will they be a step toward pushing china to a breaking point to discuss this earlier i spoke to dr paul card roberts former reagan administration official i asked him if there is more to this than just drills here's what he had to say of course there is. the military security complex is putting in motion

is looking at the world max currency war is a hot topic in china so these are photos from the china money report and if you could look at the first photo it shows four different books on currency wars are the top sellers in the. chinese bookshop the number two images dollar crash and number three is the american dream over so this is the view the perception the population of china the one that works to pay off the debts of lloyd blankfein little lloyd blankfein here it is also a reflection of how their actual leaders think because we have a headline here china views us as a declining power says an insider the senior leadership of the chinese government increasingly views the competition between the united states and china as a zero sum game with china the likely long range winner if the american economy and domestic political system continue to stumble according to an influential chinese policy analyst the united states is no longer seen as that awesome nor is it trustworthy and its example to the world and admonitions to china should therefore be much discounted mr wang writes of t

china feels that it has historical. over the soft try turning more income over the south china sea at the same time beijing as it grows in economic and military power is interested in expanding its power outside to that is to fix the problem is that you extend itself outside to the pacific you need to bypass of taiwan and the philippines and as we know i want in the philippines are very strong u.s. allies and so beijing is always concerned about u.s. military exercises with the philippines and taiwan. a complex situation as you know as you say then there's been a week long deadlock between the philippine and chinese vessels in the south china sea and both sides seem determined to stick it out so what's the endgame here what's going to happen. well we have understand that for the past few years there's been a lot of kenshin in the south twenty china sea in fact a lot of experts feel that the world's next conflict will happen in the south china sea just because there's so much conflict in that region. a very important reg

and we way out china. the country keeps knocking on the doors of the nations who already have access to the energy rich region. a very warm welcome to you from all of us here at the moscow. the rules of formula one engines will be heard in the gulf states still shaking under civil unrest regime activists have pledged to boycott the event and step up their protests to members of the force india team have already fled the state but this after they were caught up in clashes on their way back from the track but if. reports are like libya and syria if this uprising is surprisingly alfredo. it took a car fire ahead of a major sporting event for the world to notice the flames of discord engulfing a small island nation in the persian gulf but green is suffocating in the smoke of an ongoing struggle between protesters and police the military says have been happening in a hurry for more than a year now protester say this is the longest lasting revolt in the arab spring but so far the only result from them has been a

china prides itself on continuity. at the seat of beijing's politburo, many in china thing bo xilai threatened the system that values stability above all. >> the american vice-president joe biden was asked to sum up barack obama's residency. osama bin laden is dead. another terrorist is still alive. it was good money after bad for many. for many it represents a level of federal interference. are economics editors have been -- our economics editors have been to the seat of the story. >> detroit, michigan. the american auto industry was born here, and when the financial crisis hit, and nearly died here. with general motors and chrysler and the government bailout of $80 billion. and it worked. the industry is back. on the worst day for the american economy since 1929, the recovery of the most iconic industry. how that happened it tells us a lot about how america will recover and how the rest of the world might, too. in 2009, brad thought his career at gm was over. he was laid off with thousands of others and production st

the big country in question is china. as china has grown, they've been able to throw its weight around with its smaller neighbors. take the example of tiny nepal. it's sandwiched between two bigger powers, india and china. china is the world's second largest economy, and india ranks tenth. nepal is not even in the top 100. it often has to bow to the demands of its bigger, more powerful friends. while india has traditionally had more influence over it, that role is now switching to china. china has doubled aid to nepal. it's building roads there and a railway linking the two countries. obviously, china wants something in return, and it seems to be getting it. for the last two decades, thousands of tibetans have escaped to neighboring nepal every year, often heading onwards to india. that number has now dropped sharply to just a few hundred. as china tries to cement its control over tibet, it has asked nepal to police its border and stop tibetans from escaping. nepal has complied. china's influence stretches far and wide. i

we go back to 2001 when china entered the wto and wages in china were 58 cents. what we're seeing is a pendulum swing. there was a massive rush to build in china and other countries because the wages were just so low that companies had to take advantage of it. but as with any economic trend, you find the pendulum swings too far first and then swings back. what we're seeing in the u.s. is the beginning and just the beginning of that pendulum swinging back in the u.s.'s favor. wages in china rising at 15% to 20% a year and it looks like it may increase from that level. that makes china less competitive. the weakening of the dollar has also helped. relative to used countries that have floating currency and we're seeing china do sal uation right now. because the pendulum is we think that sometimes in 2015, a season of good that are going to be that spread got pretty tough. we would expect to see jobs and activity return to the u.s. because the pendulum just swung too far in the other direction. we were a little surprised because we weren't expecting it when we starte

from china. i don't know the exact extent of that. we have to deal with it in another context in terms of the sensitivity of that information. >> panetta said the potential threat from north korea would be increased if it had mobile capability for long-range ballistic missiles. north korean military leaders put what appeared to be a long-range ballistic missile on display. they say it's the same as a special purpose vehicle developed by a chinese company. an online version of the magazine says if the vehicle was chinese made, china may have violated u.n. sanctions. foreign ministry spokesperson said china strictly follows security council resolutions and says chinese leaders enforce laws to enforce laws against weapons of mass destructions. >>> analysts reflected for a week before putting a satellite into spate. north koreans say they finished analyzing the launch and are determined to press ahead with their aerospace program. >> north korea released a statement about the launch. the statement cr

what it tells us when china is slowing down is that china continues to have the structural problem that is killing our own economy. that structural problem is that it's heavily export dependent. in order for china to grow it basically over the last ten years has flooded the united states and europe with illegally subsidized exports. >> when you say illegally subsidized exports, what do you mean? >> run them down. china manipulates its currency which acts as a tariff on our exports. >> keaches it lower than it should. >> right. >> doesn't let it float freely. >> stops cheap at walmart. they engage in illegal export subsidies. when they send something here, they give the producer an extra amount of money. so if a company in akron, ohio, is trying to compete with something in chungdu they can't do that. so we lose jobs there. they steal our intellectual property, which lowers their cost. a pharmaceutical or automotive firm here can't compete fairly. >> you're conveniently missing one point. >> sure. >> and that is that there is one other beneficiary to everything else that china is doing.

china is developing an aircraft carrier, china is developing nuclear submarines. so the overall chinese military development is a source of tremendous concern to india. the relations between india and china of political, diplomatic and economic have improved over the last eight to ten years. trade is booming, it is about 50 or $60 billion. there's a lot of political and diplomatic exchange, but at the same time there's an underlying tension between india and china because of the outstanding border dispute. india and china have a border dispute, which is one of the longest running disputes in the world. india is very concerned about pakistan and china's close military and nuclear relationship. because both are old friends and there is a lot of military and nuclear cooperation between the two sides. so the increasing concern of indian security planners is a two-front collaboration between pakistan and china. >> that was raul bedi, a correspondent with jane's defense weekly in new delhi. >>> the reaction in china to india's missile launch was restrained. liu weimin c

the result was his book one step ahead in china which appeared in 1989. professor speed retired from teaching in 2000 and i arrived at harvard in 2007 and i am truly grateful for the mentoring and the encouragement and friendship that his offer a far more junior colleagues since his retirement, but of course defending the junior colleagues hasn't been his main focus in the years since his retirement. rather he's devoted his time to completing his book on deng xiaoping and his era. the book was recently awarded the lionel goblet prize for the contributions to international understanding to buy insurance and be the first of many awards for this extraordinary book. the masterful country inns of study chronicles the rich and intricate career from his work to 1904 of the end of the dynasty to his death. he spent almost a century of dramatic changes as of experienced war, revolution, the maoist era and finally the economic boom of opening up reform and she played a role in his nation's politics and development over the period. how does he find a way to turn chi

don't we want to accommodate china's rising status? >> most do but not everybody. >> rose: most everybody does? >> yes. >> rose: all right. i thought most of what john merchant wrote amount was israel before israel he was on china. okay, successful u.s. effort to enlarge the west making its it the world's most stable and democratic zone, corporate west from europe through eurasia by embracing russia and turkey would enhance the appeal of the west core principles for other cultures thus the gradual emergence of a democratic culture. >> yes. and here is the optimistic future, three basic examples, not including the bottom billion, the advanced industrial west and you have to get north america, japan, europe, a few others and you have to get them going more, more dynamic, more lively, you have the rising powers who are democratic and who are taking off but not fully members of the top club, india, much of latin america and brazil, other places like that, you have to make room for them and incorporate them into the system and bind them tig

china rather than oppose their china. israel says it's not playing games with strikes to attack iran the country's defense minister insists it's not just political rhetoric to bleat about him to abandon its nuclear program but israel's apparent failure to prove its citizens for any retaliation they suggest otherwise this policy of. they were very family lives in midst of range of gaza for years they complained to the government they had no shelter to protect them from because someone fired by hamas but the supply of immigrant town wasn't a top priority for tel aviv far from it prompting yakov to eventually build a shelter himself to protect his family we went through some very tough years we used to worry all the time every time we left the house we were in danger when we went to the store to school or to work it took a direct hit on your courthouse five years ago before the government finally woke up and bought him a shelter opposite the one he did with people to solve now across his was closest to gaza there were bomb s

and what's critical here is that china has been the engine of global growth. darren gersh begins our reporting by looking at whether the chinese economy engine may be slowing or shifting into a new gear. >> reporter: as the factory to the world, china's biggest customer is europe. so with the euro crisis crimping wallets, it's not surprising chinese companies are exporting less. but there is another problem for the chinese economy that should be very familiar to americans. >> well, the share of resources that's being devoted to housing in china is substantially in excess, about 50% greater than it ever was in the u.s. at the peak, and it's on a par with spain and we know what happened there, so there is a potential for a big drag on economic growth. >> reporter: of course if housing really tanks, the chinese government has shown it knows how to flood the economy with cheap lending. but that could be more of a challenge now. china is trying to shift away from a traditional model of heavy investment in big factories. >> there is a sense that in an economy that i

is looking at the world max currency war is a hot topic in china so these are photos from the china money report and if you could look at the first photo it shows four different books on currency wars are the top sellers in this. chinese bookshop the number two images dollar crash and number three is the american dream over so this is the view the perception the population of china the one that works to pay off the debts of boy blankfein little lloyd blankfein here it is also a reflection of how their actual leaders think because we have a headline here trying to use us as a declining power says an insider the senior leadership of the chinese government increasingly views the competition between the united states and china as a zero sum game with china the likely long range winner if the american economy and domestic political system continue to stumble according to an influential chinese policy analyst the united states is no longer seen as that awesome nor is it trustworthy and its example to the world and admonitions to china should therefore be much discounted mr wang writes of

for china. the other big implication is that the more convertible and more liberalized the u.n. becomes, the more independent chinese interest rate policy becomes and that could have a very significant impact for interest rates within china. and for the chinese economy. in other words, asset prices if interest rates rise, which they normally would, if china had freedom of interest rates, asset prices would tend to fall. >> okay. thanks so much for coming along. author of chinand at credit crisis, emergence of the new world order. we're live in paris where they go head to head a week before the elections first round. steve sedgwick is there. steve. >> reporter: yeah, a little bit of a day trip for some of us from the squawk team. you of course have have been manning the fort in london, but we're taking a look at the economic fundamentals. why does france enjoy 3% ten year yields when the spanish have 6% ten year yields and yet the dynamics of the economy are strangely familiar in many ways. we've

i still think the china has a long way to go no no denying that china is growing a lot it is but it has a long way to go before it can get close to even think you are passing the us ok. you know i would say six years isn't deadline you know if you actually know for sure i bet there is the former comptroller of the united states the guy who is in charge of auditing the books of the u.s. government david walker has been saying earlier this year that the u.s. is now where greece was two years ago in terms of instead crisis or just under present numbers it is six years it's not really their plan if you're. watching r.t. now our special envoy kofi annan says he's received assurances from syria that it will on a an agreed u.n. . cease fire excuse me by thursday it's after a deadline for troops to leave the city has passed on tuesday with some western and arab states accusing the regime of failing to stick to its commitment in the country has argued socks on a break. the syrian authorities claim that they have big on that partial withdrawal of bad troops from in and around urban settlements we