china's problems are not really cyclical. this isn't a response to the cyclical downturn in the data. in fact, if anything, the recent numbers, the pmi we saw this morning and the trade surplus the other day, were much better than expected. so it's not a cyclical issue, it's a structural issue, and that's going to maintain downward pressure. >> you have to explain what that is, then. >> china has too much debt. it's as simple as that. far too much debt. the debt has been led to sectors that are not particularly productive. and until they introduce really major structural reforms to deal with those issues, growth is going to continue to grind lower and lower, because you're basically throwing good money off the bad lending to firms with low or very negative profitability. >> a lot of people talking about the soe, state owned enterprises and other structural changes that need to be instituted to get over this problem. cnbc this week, what do we get? >> i would imagine a lot of talk and not a lot of action. i would imagine the i

china's economy is starting to mature. now the premier has also been touching on the issue of unemployment. they're worried that if economic growth continues to fall, there will be larger segments in the future the unemployment rate in the cities stays at around 4.5%. interesting though antonio he didn't mention the unemployment rate in the country side. the government also said it hopes to create 10 million more jobs this year. so the government is in a sense warning the people look, economic growth is slowing. but we are going to do all we can to mitigate the circumstances. let's put this into context antonio. china's growth rate of 7% would be still the envy of the united states. >> and to most of the world. these meetings have usually been well core yoa tbrafd. choreographed. has it hinted of anything sort? >> that the government will declare war on pollution. it says the premier says pollution is now a blight on everyone's lives and they will do all they can to eliminate it. the government is promising new anti-pollut

and china. and if you try to get an op-ed piece written or go to our media and ask presidential candidates, imagine this big presidential candidate debate in 2016 and someone says well, how do you stand on the new model of great power relations? no one's ever heard of it in the mainstream media. but yet in my humble opinion this is the key point of friction right now between the u.s. and china. and everything else comes under that. if we can't agree on accepting the new model, the chinese proposal for a new model then the americans can accept the idea can peacefully rise like america did against england. it means the americans are still considering at least coercion against china and possibly the use of force. and then the hawks in china read into that, also the rebalance more ships, more planes. if you read ash carter's speeches he says we should focus our defense research and science on the pacific and india. >> you write about china's seven fears -- >> yes that's another chapter. >> which is

channel to china, the travel channel to china in subsequent years. i think that the reaction of the right in the united states was very negative. >> this was the taiwan lobby. >> yes, very negative. after the trip, war and christopher -- warren christopher was given the task of reporting what we had done. his car was pelted with eggs in the garage and of the things. the blowback from the secret trip was essentially shock. >> we paid a certain price with secrecy, particularly with japan. but having said that, i think it was felt necessary because, if there have been public signals in advance, if people knew in advance henry was going to china, every lobbyist, not only taiwan but everyone else would be coming in, and our allies and we would be constrained on what we could explore with the chinese once we got there. the signal was made. we had to keep it secret. he would have to tell his cabinet and the japanese press could get hold of it so the chinese would feel betrayed. it was a tough trade-off. it was worth it.

china, 1.2 4 trillion. japan could overtake china as the biggest u.s. bond buyer. that takes us back to the 1980's, when japan was buying assets like rockefeller center. angie: that is right. sony buying a bunch of new interests and down. zeb: different this time, very different. angie: much of it a search for yield. thank you so much for that. coming up next, from spice girl to entrepreneur, victoria beckham making her mark on the fashion world and has her eye on asia. an exclusive interview when first up continues. ♪ angie: it is 10:30 in sydney and 7:30 in hong kong. shares in australia starting the week with declines. perhaps a word of warning about china's slowing growth. are 30 minutes away from the open of trading in japan and south korea. "ou are watching "first up. threading the needle. will strengthen role of the government was supporting the chinese economy. a --te of emergency at vanuatu as it is devastated by a monster storm. vladimir putin says he warned the west not to intervene in crimea. good morning. i am angie lau. first trading day of the asia

the congress is made up of members living outside china. speaking to reporters in tokyo, she mentioned nations such as malaysia and cambodia that repatriate illegal immigrants to china. she said handing them over to the chinese authorities could result in their being persecuted. >>> two passenger trains collided in thailand, home to many of the country's tourist sites. more than 50 people were injured, including foreigners. this is the third train crash in the same week following two other deadly collisions. the trains collided thursday. the state railway of thailand says 52 people were injured, including one american and five koreans. the crash occurred when an eight carriage train slowed down and was rear ended by a six carriage train. authorities say the driver of the second train did not notice that the first had decreased its speed. this is the third train related collision in the space of a week. on tuesday, a passenger train collided with a truck during heavy rains killing seven people. in a separate incident thursday, a pickup truck

chinese on both sides. >> one china, two china exactly -- china. >> exactly. they recognize there was one china. we had a defense treaty -- >> with taiwan. taiwan is the biggest trading partner with china. there's a lot going on, intercommunication. >> during that week there were three sets of talks going on. one was nixon and joe discussing the world. one was kissinger discussing the actual wording of the shanghai communique. one was rogers and his counterpart, the chinese foreign minister. that was all about what we call the nuts and bolts of the relationship. trade, travel, immigration legal issues, immigration etc. >> >> we had none of those agreements. >> we had talked a little bit trade i remember during one of those talks the chinese were saying you are still requiring us to be fingerprinted when we go to the united states. we said no that's finished. they said no, it's not finished. roger said, you go find out. i rush out. there's a white house telephone in the great hall of the people. i call up. it's a wonderful connection white house which great to

and china. so finally the two militaries are able to come together on that, and i think that is potentially one of a number of stabilizing elements which lie ahead of us, for the u.s.-china relationship. >> rose: how do they view russia? >> well, as tip o'neill famously reminds us here in this country, all politics is local. and i imagine an active conversation between xi jinping and vladimir putin is about what they would both describe as the color revolutions of eastern and central europe. and the extent to which they have concluded that either the europeans or the americans or the collective west were explicit in that. in order -- complicity in that. in other words, aimed at toppling governments and their political systems. that is an active element of the conversation. i think that's true as are their respective attitudes towards the sense org of censoring of the internet in their respective countries as well. i think the relationship between china and russia is a deeper complexity. and some

which centered around the east china sea and south china sea. but i find interesting, in the most recent summit in beijing the two later spent at least eight hours or nine hours talking to each other with a limited number of people around. my advice is that the two leaders got down to thin a tacks, on these questions of are you trying to destabilize us domestically? are you containing us? frankly, i know enough about international relations to know that unless you get down to 10 tin tacks unless you are dealing with those, you cannot get to the second levels of cooperation. my sense is there is a working level of respect now between the two bank presidents. -- the two presidents. which i hope we can turn into something more. >> what are they prepared to do to make it better? >> the first priority is to see the president's priority to bring about a global agreement on climate change. the chinese could have said, we have decided for national regions to act on climate change. here is what we are going to do. we are going to announce a pe aking year

anyone who has been the china and -- to china and walk-through department stores, they are nowhere near as full as they used to be. we said look at them in march and the february number will come out and it will be absolutely horrible. >> it will be priced in already? >> i do not think it is yet, but it is a tough question. let's bring it to the february numbers. they will be a lot worse. last year february was one of the highest on record in terms of revenues. and then you have very soft conditions at the moment. march should be flat, fingers crossed you see some increase. the first quarter will be down year on year in february will be significantly down year on year. where are we sitting for 2016? dubai, you have to be long-term. >> it is always a big bet no matter how you look at it. >> samsung lives on the edge. is it a gimmick or the next big thing? >> a special report after this break. ♪ >> samsung new smartphones going on sale next month with a host of new features. sam grobart has a look. >> samsung has been showing a flagship phone. they are showing two of them. this is the g

japan controls the islands in the east china sea. china and taiwan claim them. the japanese government maintains the islands are inherent part of japan's territory in terms of history and international law. it says there is no issue of sovereignty to be resolved over them. >>> officials at a european research institute say beijing is becoming a bigger player in the international arms market. they say chinese weapons exports have more than doubled in the past five years. the international peace research institute released the figures in a report. it says that global arms trade grew 16% between 2010 and 2014 compared to the previous five years. china is now the world's third largest weapons exporter following the u.s. and russia. it accounts for 5% of global sales. its exports rose by 140% during the period. that's the largest increase among the top ten countries. china sold the weapons to 35 nations, mostly in the developing world. just over 40% went to pakistan. china has also become the third biggest arms importer behind india and saudi arabia. >>> now, let's g

which centered around the east china sea and south china sea. but i find interesting, in the most recent summit in beijing, the two leaders spent at least eight hours or nine hours talking to each other with a limited number of people around. my advice is that the two leaders got down to thin tacks on these questions of, are you --america -- trying to destabilize us domestically? are you containing us? frankly, i know enough about international relations to know that unless you get down to tin tacks, unless you are dealing with those, you cannot get to the second levels of cooperation. my sense is there is a working level of respect now between the two presidents. which i hope we can turn into something more. >> what are they prepared to do to make it better? >> the first priority is to see the president's priority to bring about a global agreement on climate change. the chinese could have said, we have decided for national reasons to act on climate change. here is what we are going to do. we are going to announce a peaking year when our emissio

and china. inna's incremental growth our industry will be greater than we are seeing in the united states. to last year end in mainland china, hong kong, taiwan. we started this year strongly. i am quite bullish. we had the third-largest market after the u.s. and u.k., 16,000 people in eight years. in cities around the country. we will see about $1.6 billion plus of revenue in china this year. yvonne: you talk about a third of your business coming from fast growth economies. there have been people doubting the 7% growth target, saying it will be hard to achieve. roubini saying he could see growth heading towards 5%. how does this impact industries and your clients? guest: if you think about the worldwide economy, it is going about 5.5%. a 7% growth rate is still superior to what we are seeing in the u.s. and u.k., around 2.5%. in the u k budget, the chancellor lowered the gdp forecast by a smidgen. the latest forecast in the united states have been lowered a little bit. a 7% growth rate for chin

chinese on both sides. >> one china, two china exactly -- china. >> exactly. they recognize there was one china. we had a defense treaty -- >> with taiwan. taiwan is the biggest trading partner with china. there's a lot going on intercommunication. >> during that week there were three sets of talks going on. one was nixon and joe discussing the world. one was kissinger discussing the actual wording of the shanghai communique. one was rogers and his counterpart, the chinese foreign minister. that was all about what we call the nuts and bolts of the relationship. trade, travel, immigration legal issues, immigration, etc. >> we had none of those agreements. >> we had talked a little bit trade i remember during one of those talks the chinese were saying, you are still requiring us to be fingerprinted when we go to the united states. we said no, that's finished. they said no, it's not finished. roger said, you go find out. i rush out. there's a white house telephone in the great hall of the people. i call up. it's a wonderful connection white house which great to g

china, have both been on the decline. how'd you see such a situation? and how do you view the possible impact of china's plan to commemorate activities, including the military parade on the part of the japanese people? premier li: [speaking mandarin] translator: this earmarks the 70th anniversary of the chinese people's -- of the victory of the chinese people's war of resistance against japanese aggression and the anti-fascist world war. not only china, but many countries in the world have plan to hold diverse forms of commit -- commemoration entities. the purpose of these activities is to firmly bear in mind the hard lessons gained from the past, and ensure that kind of history will never repeat itself . the purpose is to uphold the outcomes of the second world war, and the postwar international order, and international laws, to maintain enduring peace of mankind. premier li: [speaking mandarin] translator: it is true that the current china-japan relationship is in difficulty. the issue is, how that war and that art of h

they fill china has a banking -- fill china -- feel china has a banking issue. with that statement, it might change the view. doing qe in china and get foreign investors to get excited. angie: taking a page out of all of the central banks, foreign investment, transparency. khiem do: exactly. that is the point. angie: thank you for that. let's talk about europe and the rest when we get back. that is khiem do read joining us in a few moments. coming up next fortesque's chairman defends iron ore prices. we will hear from andrew forrest on why such a cap is in australia's national interest. you are watching "asia edge." ♪ angie: fortesque ceo is defending his point. andrew forrest said companies need to act responsibly and he spoke to stephen engle. andrew: that outcry really missed the elephant in the room and i would like to start talking about that now. there is an issue, china's national interest and australia's national interest is not helped by companies dumping iron ore into a falling market. we are here to husband the assets. we do not actually own the iro

in china, that 5.2 billion euros. add those in with the already announced $12.7 billion profit from last year and you have a theoretical profit that volkswagen is announcing of 17.9 billion euros. they're making a billion and a half dollars every month. they announced for the first two months of the year the sales globally topped 1.5 million vehicles. that's a new record. within the last half hour we had a chance to sit down with the chairman and ceo of volkswagen and talk to him about the record profitability that volkswagen has just posted. >> that is a new figure. your calculation is right. this is the aggregate profit of the group. add the $5.2 billion of profits from china that we account and it is an operating profit which is contributed. 40% is our joint venture, 50% on the joint venture in shanghai. >> you heard him talk about the theoretical profit in china of 5.2 billion euros. keep in mind volkswagen is number one in china in terms of auto sales and has no plans to relinquish that title. the company just an

as long as we continue to appear to the one china -- adhered to the one china principle and consensus, oppose taiwan independence and promote peaceful relations, we will be able to lay more solid foundations for business cooperation. to boost the economic cooperation between the two sides, we need to get both wheels in motion. the one we'll is to enhance institution building, for example, to continue to pursue egg five. the other is for opening up, as far as the mainland is concerned, closer attention will be paid to the investment by taiwan businesspeople on the mainland. here, i would like to ask you to convey a message to these people, which i believe will prove to be reassuring to them. that is, the mainland will continue to protect local rights and interests of taiwan businesspeople on the mainland and continue to pursue professional policies as appropriate. in terms of opening up, we will give priority to taiwan in terms of the intensity of opening up. we welcome people from taiwan businesses especially and including the young people, to come to the mainland to pursue their own

china is an internal demand issue. looking at the external trade numbers, you can see imports falling off. we see no real signs of growth accelerating across that region. certainly from a market point of view, we feel relatively hong kong ands the chinese equity markets. >> it seems like the central bank is leaning against the market pleasures -- market pressures we've seen. are debatingeople in the market about whether they ultimately will be forced to reevaluate. they still have further reserve cuts that can be done. they still have further easing policy measures that can be done. there are many other things they have in their playbook. it looks a little bit too much of a heartrate to get right. we have been underweight. the much cleaner trade across that region is the underweight commodity export to anything that is tied in to that cycle in china. we see no opportunity to pick the bottom on. underweight equities across that region. we will see how this plays out. >> we're going to have another in the -- another move

angie: are you positive on china? reporter: am i worried about china? of course the recent data has been worse than expected. -- numbers came in blue below expectations. of course, over the weekend, in the meeting, they said that we could expect more. there could be more fiscal easing over the course of the year. that would be good for equity markets in china. they remain relatively attractive. what are you looking for exactly for growth in china? reporter: we are still looking for% gdp growth for china 2015. that is the adjustment dollars from 2014. -- downwards from 2014. for evaluation, trading at about 14 times forward. still below the historical average of 16. we still continue to be positive both on the a and other shares. , perhapse for investor keep shares would be a better play coming from a value point of view. angie: good news for us here in hong kong for the equity markets. thank you for joining us. coming up next, the prime minister of greece due to update lawmakers on top between greek government officials and creditors. you are watching "

if you look at the china index, china stocks traded in hong kong , a core part of the southbound activity, it is only up 6%. big divergence. , that chinese index has been pretty static at 10 1/2 times forward earnings. a big change in valuation has been's bird by this outperformance. that is the intrigue. if you look at the dual listed stocks that trade both in shanghai and hong kong, there has been a 50% outperformance on the shanghai side. valuation has extended accordingly. that is where the intrigue is for this shorting activity. >> let's see how it all plays out. thank you so much for that. intelligence, they do so much. let's look at the corporate stories. >> the japanese developer of a 3-d printer that produces human tissue is said to have raised $12 million in funding. people familiar with the matter say [indiscernible] to boost its sales force and for itsinical trials devices. biological 3-d planting plants living cells into artificial human tissue, which could lead to technology the regenerates body parts such as blood vessels and organs. lenovo has promised to purge its install

when it comes to china/u.s. relationship, this is a relationship between the largest developed country in the world. we've proposed that china and the united states work together to build a new model of country relationship featuring new respect, no conflicts and no confrontation. this year the president will give a strong boost to china/u.s. ties. [ speaking foreign language ] [ speaking foreign language ] [ speaking foreign language ] >> translator: admittedly there are difference ps between china and the united states. but what's more important is that the two countries share extensive common interests. when differences are properly held, the two sides can have more extra energy to further expand the convergence of their interests. one highlight in the china/u.s. relationship is that the two sides are advancing negotiations to an investment treaty. and this is built around preestablishment of national treatment and a negative list. this in itself is to break the ceiling over china-u.s. business corporation an

and china relations and china's emergence. i think one element that constitutes a major change for the united states is the relationship with china with the relationship with allies in ways that has not happened before. in a sense that china's immediate challenge is not directed at the united states. but it is directed in it's neighborhood. and it's leader has articulated an order in which it is very difficult way. so in the united states, the main thrust centers on china but the challenges are going to be much more. in once sense the united states hats to demonstrate to their allies that the united states has sufficient resolve, sufficient cape abouts to deal with the threats that exist to them. on the other hand, the united states does not want them to be provocative regarding china. and what is provocative depends on perceptions and so on. and this sense it seems to me that the united states is facing a kind of -- that they not before. and this will create all kinds of difficulties. one of them coordinating all of the eleme

last year china's gdp grew by 7.4%. the government stressed that it has achieved its target but it was the lowest level of growth in 24 years. and it is clear that the economy is slowing. behind this are strong real estate investment and exports which have been driving the economy. in addition, investing searchly in property development and attracting factories in order to achieve high growth. as a result, the housing market is saturated and heavy industry has too much capacity. the administration of xi jinping has been using the new normal as a catch phrase. its stance is that it is aiming for sustainable development rather than rapid growth with an emphasis on quality and efficiency. premier li keqiang said in the report the leaders arrived at this year's growth target by looking at what is needed and what is possible. he stressed that the country can maintain a sufficient number of jobs at this pace of growth. an economist says that chinese government hopes to counter the possible negative impression that the world's

angie: i have to ask you about china. exports, really great for china, but domestically, those import figures show weakness. you can't just look at the weakness in commodity prices. a lot of people are concerned about domestic demand being week. and yet, you think that the economy is still bullish in china. why, and what are you playing in china? guest: i think that's a great question. with china, it is difficult -- chinahina's policy is policy, policy, policy. you never get in the way of china's policy. they are telling you to slow down in equity investment, yet they are supportive of the economy in terms of other stimulated measures. that means someone like me, i want to buy the growth of china but i can't play it in chinese equities. i have to look at properties, some of the australian miners, some of these cyclicals i've been describing. they are much more of an interesting way to play china than chinese equities themselves. i think chinese equities are going to be under constant policy pressure. angie: jason ambrose,

also expected to be on the agenda is china's increased maritime activity in the east and south china sea. abe wants the g-7 nations to address the situation together. >>> and speaking before her meeting with prime minister abe, merkel said that it is important to face up to history in order to improve ties with neighboring countries. merkel said germans will never forget that people in europe and the world reached out for reconciliation following the agony inflicted by nazi germany. she said that would not have been possible had germany not been willing to face up to history. merkel also spoke of her respect with a strong sense of unity displayed by japanese people following the 2011 earthquake and tsunami. >>> people in japan are preparing to mark the fourth anniversary of a disaster that changed so much. the march 11th, 2011 earthquake and tsunami killed more than 15,000 people. about 2600 others are still listed as missing. the disaster triggered one of the worst nuclear accidents in history. the fukushima daiichi plant suffered three meltdowns and three hydrogen explosions. radio

is this on the fringes, as opposed to the back of china? >> the bigger picture is the enormous growth and leverage that china has to reform and move on and move away from net trade and an investment. that entails slower growth and this is about preventing deflation and all of these things have to be dealt with. the growth rate is slowing down and that does not necessarily entail disaster or crisis. there are a lot of issues that need to be handled. it has a downside for commodity exporters. >> you look at the situation in china and i come back to this question because it never really gets answered. have we seen a boom in china over the last 5-10 years in the world that ins not finished falling down the elevator shaft? >> you have instances of credit booms and they hardly ended. we have seen few credit booms that have been locally financed and do not have the dollar amount. the dollar liability leads to a sucking sound of markets and currency markets going down with interest rates going up. the only parallel that comes close with per capita

is human trafficking allowed in china? is it legal in china for the people to be bullied? this is what i want to ask." >> tomorrow. >> you have to look at the suffering of these children. >> director of unicef, anthony lake. >> every one of those numbers is an individual child. >> helping the innocent victims of war. >> what can unicef do? >> there's a very short answer... our best. >> every tomorrow night. >> i lived that character. >> go one on one with america's movers and shakers. >> we will be able to see change. >> gripping. inspiring. entertaining. talk to al jazeera. tomorrow, 6:30 eastern. only on al jazeera america. >> al jazeera's investigative unit has tonight's exclusive report. >> from coast to coast. >> people selling fresh water for fracking. >> stories that have impact. >> we lost lives. >> that make a difference. >> senator, we were hoping that we could ask you some questions about your legal problems. >> that open your world. >> it could be very dangerous. >> i hear gunshots. >> a bullet came right there through the window. >> it absolutely is a crisis.

-china in ukraine russia can't look. this one-hour portion is china central television. mandarin chinese is heard followed by english translation. we will start with environmental protection laws. >> with that happy to impose the documentary made she complains about such big oil companies and patchwork china has been a block to the introduction on environmental protection and law enforcement in this field. for example, in the setting of standards and gasoline consumed as well as introduction of wider use of natural gas. my question is is it true these companies are posed enough gold to enforcing enforcing environmental protection month-end policies? if so what steps will the chinese government take to remove such an obstacle. [speaking chinese] [speaking chinese] [speaking chinese] >> translator: i understand the focus of all of your questions is a backpack with environmental solutions, especially small. this is a concern, uppermost on people's mind. i want to value that the chinese government is determined to tackle smog in environmental pollution as a whole and tremend

meet theure china does growth target. the president said china's economy was take. it had huge potential and plenty focused onools. he the ways china could boost its own growth along with the region. about the asian infrastructure bank. quite a team. shery ahn: thanks a lot. we can take a detailed look at the story later in the show. we want your opinion, so please tweet your opinion. let's take a look at some of your other stories we are is david.here david: let's talk luck shriek earnings, feeling the pinch of this going chinese economy. 450 million euros. revenue was down 1%. the cheaper euro helped sales in the latter part of 2014, but overall the company said it was a challenging year given the political tensions and uncertainty in several import markets. fewerre planning on openings. take a look at shares of product. -- prada. we have seen a drop. we are well below levels of last year. the stock he get over 80 hong kong dollars a pop -- peaked at over 80 hong kong dollars a pop. let's talk about this cyber attack. questions are being raised over the roles of c

an italian fashion house rises again things to help from china. all of that and more in this monday edition of "asia edge." >> the markets taking the lead from the united states. u.s. jobs on friday were stronger than forecast. way more than the 235,000 that economists forecasted. that is leading to fears that rates will go up soon. the timing of when the next raise will happen -- australia is currently the biggest decline or -- declinedr. -- decliner. the trend is very much not your friend today. the markets are seeing declines. exporters are drawing -- driving it lower this morning. these are examples at the lunchtime break. australia that is the picture really across asia. there it is, the dow jones off 1.5%. that was the market reaction to the u.s. jobs on friday. that is where asia is taking its lead. >> thanks, john. our top story here, japan came out of recession the last quarter of 2014, but not nearly as strongly as originally thought. let's head over to tokyo to speak to james. what do the numbers tell us? >> thanks very much. the number

it also says china's accelerating the construction of military installations in the south china sea. fu defended the substantial increase, saying the research and the design of military equipment has been mostly done with the help of other countries, and that china sometimes has to start from scratch. >> translator: china's national security policy is defensive in nature. we will continue on a path of peaceful development. >> but china does not intend to disclose a breakdown of its defense expenditures. analysts believe the cost of research and development, as well as those of space exploration, are not included in the officially announced figures. china's lack of transparency is fuelling concerns among the international community. nhk world, beijing. >> let us now take you to beijing live. our reporter kunihiro yamamoto is covering the event there. kunihiro? >> hi, gene. another focus of attention, this is national people's congress is on measures to be announced to address the problem of serious air and water pollution. fine particulate matter or p.m. 2.5 is causing serious air pol

china struggles. we speak about the linkage of the chinese economy the fragile market, and the government in beijing. deadly serious business. the federal reserve is comedy central brought to you by janet yellen. good morning. this is "bloomberg surveillance." it is thursday. i'm tom keene. joining me, olivia sterns. brendan greeley is on sabbatical. olivia: the lowest economic growth target in 15 years from china. they want the economy to grow 7%. china is facing a number of headwinds. they want to make the economy more efficient. >> we need to develop twin engines to drive development. popular entrepreneurship and innovation and increased supplies of public goods and services. this will ensure that we will adjust without weakening momentum and will underpin with greater quality. olivia: in the past, premier li has said that lower growth is tolerable as long as jobs are created. the u.s. ambassador in south korea is recovering after being slashed in the face by a north korean sympathizer. there was b

china's one child policy has quoted controversy, from >> china's one child policy, today t is being blamed for a declining fertility rate and a major gender imbalance with more than 30 million men to 20. i am on this addition of 101 east. we does about the days of china's one child policy coming to an ends. >> for 21-month-old lin jiahe, saturdays begins in with a menagerie of toys... ...under a shower of attention. >> little jiahe is an only child. he holds the most precious place in the household, with parents and grandparents catering to his every whim... and documenting his every move. >> "i am constantly writing to my son, telling him my thoughts and feelings in micro-blogs or postcards, which he will see in the future. i'm writing down the problems i have encountered and the way i have found to tackle them in the hope that they will be useful to my son when he grows up." >> jiahe and his parents are typical of the three-person nuclear family that has emerged in china in the last three decades, a result of the country's controversial family planning practice - commonly called the one-

it with a new one dominated by china itself. what is your comment? [speaking foreign language] >> i want to make it very clear that china has always been a constructive force in building the international order. if we can compare the international order and system built around the united nations to a big boat, 70 years ago china was intimately involved in designing and building that boat. and china was the first country to put its signature on the charter of the united nations. today, we're in this boat together with more than 190 other countries. so, of course, we don't want to upset the boat. rather, we want to work with the other passengers to make sure that this boat will sail forward, steadily and in the right direction. [speaking foreign language] >> 70 years has passed. the international situation and landscape has changed dramatically. and naturally, the international order needs to be updated. china supports reforming the international order and system. but such reform is not about overturning the current system or star

the japanese claimed islands in the east china sea, which china claims. it's hoped that the meeting would lead to a leadership. we have the latest from sole where the meeting is taking place. >> a number of different issues continue to plague the relationship between the three countries. none more so than the legacy of the second world war. still casting a chateau. in that see awe and china had a chaired grievance. both during world war ii and at the hands of japanese forces. crimes for which japan has not atoned in the eyes of south korea and china. they see in japanese prime minister shinzo abe, a resurgence in january niece nationalism -- japanese nationalism. we have a d dispute in china and japan in disputed territories or islands. having the effect of keeping relations for the past few years. at least there has been enough of a thaw for a meeting of foreign ministers, and the real prize will be whether they have done enough works to bring about a summit meeting of three leaders of china, japan or south korea. if it takes place, it would be a game ch

how big is china going to be? >> it will eventually be the largest cruise market in the world. ♪ betty: the cruising industry has built its success in the west, but halfway around the world, there is another market on the horizon they could change the game completely. richard: the demographic shift in china and the growth of the middle class is one of the biggest single demographic explosions in history, one of the big demographic shifts we have gone through has been the baby boomer generation. that bubble has dictated a lot of american industry. what's happening in china today makes that look insignificant. betty: royal caribbean ceo richard fain says that in a few years, the middle class in china will not only be bigger than the middle class in america, but bigger than america. consumer spending in china is expected to increase of about 7% every year. by 2020, the total could be $5.7 trillion. remember the quantum of the seas, the ship with every bell and whistle you can think of? it is setting sail to its new

china distorts the facts and reiterates its unilateral claim. >> japan is demanding china take down the site. >> u.s. federal agents have found a number of chinese women during a raid on so-called maternity hotels. they swooped down on dozens of location in california where pregnant foreigners give birth. the agents searched about 40 maternity hotels. some were private residences. they suspect tour operators encouraged the women to conceal the true reason for their visit. >> it's not illegal to come to the u.s. and have your baby born as a u.s. citizen, but it is illegal to lie about that during the visa application process. >> they believe the women paid $15,000 for a short stay. they say the trips are increasingly popular among wealthy chinese. cnn reported that figures provided by state-run media in china highlight the growing demand. it said 10,000 chinese women went to the u.s. in 2012 to have a baby.. >>> iraqi forces are trying to encircle islamic state militants in the heart of their stronghold. they're engaged in a major offensive offensive. they report government forces are sh

how will china fight the problem? china will look to curb coal consumption and other fossil fuels, natural gas. renewable sources such as solar winds. another issue that came up in the speech was the military budget. spending will increase 10% this year, the fifth year in a row the budget will increase by double digits. china will increase, aim to add 10 million jobs this year to keep china's unemployment rate from rising above 4.5%. they will wrap up on march 15. anchor: thank you for that. the u.s. ambassador to south korea survived a knife attack in seoul by a political activist already known to the police. north korea called the attack just punishment. reporter: the bloody aftermath of a frantic attack. he was attending a breakfast meeting when he was approached with a man armed with a knife. kim ki-jongmark lippert was then slashed across the face and is left-hand. the government has said they regret the incident. >> unacceptable whatever the reason. we take this seriously because it has happened to the ambassado

in china, the cruise liners can start with a clean slate. richard: this whole concept is new and exciting. there is no old-fashioned myths about cruising. there is none of this cruising is for old people. if you are a family traveler, you can enjoy it together. how many vacations can you have where a 70-year-old and a 20-year-old can go together and both rave about it? so, we have that, and it is extraordinary. there are not many places you can do that. a china, the family bond is stronger than in the western world. so, the ability to offer multi traveling in china is even more viable. betty: carnival ceo arnold donald has no intention of being left in royal caribbean's wake when it comes to china. he says it is a market that they are ready have both feet in since 2006. arnold: we sail to over 700 ports in the world every year. we source from everywhere. we have four ships home ported in china, four in shanghai. betty: carnival carries chinese critical and passengers to japan and south korea. last year, donald put his chief operating officer

china, they used singapore as an economic model for china. the cap the expertise to open tapped their- he expertise to open the chinese market and they were close friends. china sends high-ranking officials to singapore for training for various things including learning about the public housing system. singapore moved its people from to public housing, 90% of the population now homeowners. china is one of several countries in the region learning from the experiences of singapore, rish. will have more reactions throughout the day on bloomberg including a special show coming up midday singapore. we have a special screening of one of the major interviews with 2011, you cann caps off that at 12:30 hong kong singapore time -- catch that 12:30 hong kong and singapore time. this is just one of these sectors facing a downturn, details coming your way next. ♪ reporter: these are the stories making headlines around the world. lee kuan yew has died. he was suffering from pneumonia. was a university trained lawyer who led a singapore from 1959 through

consumption is expanding in step with the rise in china's per capita gdp. as the chinese diet becomes more westernized, beef consumption is exploding. this is true even outside the major cities. this plant processes beef imported from australia. the facility will be skparnded this year to meet demand. this trader handles about $2.5 million worth of imported beef. >> japanese people are concerned that china is buying up all the beef. >> if so why don't they buy from me. they should come here. we've got plenty of beef. >> he's come up with a plan to compete with china's beef buyers. he's thinking of switching to cuts that normally go into ground beef. >> we can't allow people to lose access to whatever they want to eat. i think our mission is to protect japanese pple from falling into that kind of situation. >> china's growing hunger for beef could mean lean times ahead for japanese buyers. >>> that's all for now in business news i'll leave you with a check on markets. >>> every morning, investors turn our attention to asia. the tokyo market leads the way. ma

so china's -- china's people in china are hired instead of people in the united states or the people in these countries we're trading with. these provisions are critical for the auto supply chain in our country. already facing fierce competition from china. we need to make sure we have strong rules of origin so that cars are made and assembled in t.p.p. countries not china. the auto supply chain employees 120,000 people in -- employs 120,000 people in ohio. and to get a feel for how important that is, our country from 2000 to 2010 our nation -- 2000 to 2010, the end of the bush administration -- i'm sorry, the end of the clinton administration till two years into the obama administration, mostly the eight bush years we lost five million manufacturing jobs 60,000 plants in places like pennsylvania and ohio closed. we know that. our industry, our economy has been growing, however, since two things. the recovery act of 2009 and the auto rescue of 2010. we have seen 58, 59, 60 months of economic growth, consecutive months since then. that underscores how important auto is in my state whe

where is china's debt served? on the export front, sure, they would like to see a weakening -- but not too much weakening. >> the euro selloff puts them in a tough situation. i would say i am more constructive than the consensus -- there is less weakening ahead than what we have seen but they are in the top spot because as the euro sells off that will affect the exchange rate. it increases pretty rapidly. they are a very significant export destination. >>having said that, the economic growth they get for weakening is not going to provide them enough of an offset for any kind of financial stability concerns or even what it does against their long-term goals. >> which is another issue that came up. they want to be in, the imf basket, internationalized. i guess continued weakening will not -- and for the bankruptcies in general. >> and as you look at the data what they are doing with their money we know what happens when a central bank looks like it has the intention of using policy and undermining its currency. allo

the independent army spilled into china, making china worry. normally it does not want to deal with a refugee problem. people displaced from the fighting crossing into its borders. it will complicate permission about non-interfere vention, not meddling in its affairs. >> talks postponed after a side didn't show up. the meeting in morocco was halted. it was based in the eastern part of the country in tobruk. the u.n. envoy did though meet members from the tripoli based g.n.c. the general national congress. delegates are concerned about the germ khalifa haftar as the top military commander. >> the houthi rebel group said iran agreed to give the country a billion in aid. it would back the building of power stations and a supply of fuel. protesters have been speaking out against a takeover. a rally for similar protests it took control of the capital and dissolved the government last month >>> cairo won't be the capital of egypt for much longer if the government gets its way. the egyptian government announced plans to spend $45 billion and take seve

yvonne: we are talking china. premier keqiang said he will vow to threaded the needle of warm to help wrote you there -- thread the needle of growth. you are record china debt and slow growth in a stop surgeon mismatch. look at the charts of the day tightening -- painting the future. gdp versus the shanghai composite. gdp growth at the slowest pace since 1990. we had the growth target lowered to 7%. and the shanghai composite jumping 64% last year. and the credit binge. total debt grew double of the output, the most of emerging nations. they just announce they will be suspending gold futures trading today. the hk said they made the decision because of london's benchmark changes that take place this friday. changes in is a gold pricing mechanism. and the hong kong this changes, no trading of existing without open interest will be suspended immediately come existing with open interest will be available for trading until open positions are closed out. they said today will review its precious metal strategy and redesi

in. >> well here's something that gamers in china are probably cheering about. the people at sony are selling their game console in mainland china following the lifting of a sales ban. sony is the first japanese maker to sell video game devices in that market. just about 100 people lined up at a store in shanghai friday. they were waiting to buy sony playstation 4. and playstation vita. chinese authorities had band the sale of gaming devices in 2000 saying they would have a negative effect on young people. but consumers were able to buy consoles and software smugged into the market. the government lifted its ban last year. >> translator: we don't have to buy smuggled products anymore. i'm so happy and relieved. >> chinese authorities are now screening game consoles before they go on sale. >>> well many japanese automakers are expecting record profits this fiscal year. thanks to brisk overseas sales. but the outlook for the domestic market isn't as bright. that's because tax authorities will remove some of the breaks enjoyed by owners of popular mini vehicles. of

china distorts the facts and reiterates its unilateral claim. >> japan is demanding china take down the site. >> u.s. federal agents have found a number of chinese women during a raid on so-called maternity hotels. they swooped down on dozens of location in california where pregnant foreigners give birth. the agents searched about 40 maternity hotels. some were private residences. they suspect tour operators encouraged the women to conceal the true reason for their visit. >> it's not illegal to come to the u.s. and have your baby born as a u.s. citizen, but it is illegal to lie about that during the visa application process. >> they believe the women paid $15,000 for a short stay. they say the trips are increasingly popular among wealthy chinese. cnn reported that figures provided by state-run media in china highlight the growing demand. it said 10,000 chinese women went to the u.s. in 2012 to have a baby. that's more than double the number in 2008. >>> iraqi forces are trying to encircle islamic state militants in the heart of their stronghold. they're engaged in a major offensive offe