-china -- in the u.s.-china foreign policy-making. i totally agree of the idea of ups and downs of congressional power. we have a lot of consensus. we all agree that domestic politics is one of the most factors in u.s.-china relations and most importantly we all believe that when the two countries protocol goes are consistent, the relations, we all make significant progress. i think this is a very important consensus. some difference. personally, i think the biggest difference between the two reports is that the two sides seem to think about the word of politics in different ways and for the chinese report, we talk about politics as very big issue such as political system, ideology, or even political stability, but u.s. report make me -- give me some impression that politics is about governmental process, decision-making process, specially the key player during this process. i think just because of this difference, the chinese report has bigger political background in future of u.s.-china relations and the u.s. report talks about how

-china relations. the specialists also share views on north korea policies and asia pacific security. [ applause ] >> thank you very much. i'm mike green, professor at georgetown. we had five issue papers with authors for each paper or papers on each subject from u.s. and china. we split the panels up so that this panel will address the papers on u.s. and chinese strategy and interests in the asia-pacific region. and also u.s.-china military issues. and the next panel will cover economics, global issues and politics. scott kennedy will chair that session. we had a number of participants who helped write the papers or who joined us in study groups to review the papers. so this is a representative group, it's clearly not everyone who was involved, but some of the key authors in each of the papers we're going to address in the panels, body glazer, my colleague at css, senior director of the china project will talk about the asia-pacific papers. we're going to ask the panelists not to summarize the papers

-china. relationship i say that, as someone who has spent six years in the white house, i was not in a single conversation with the president, the vice president, the national security adviser, where anybody said china split or system is a threat to american national security and we have to do everything possible to change it. never once, never even remotely close. that said, of course, we have questions and concerns about human rights in china. the clampdown on political freedoms. because that is who we are and that is a structural feature of the u.s.-china relationship. but it's very different from the kind of claims addressed in the paper. the u.s. paper took a different approach. when mike and i were working on it, we focused less on history and ideology and more on anditutions, actors, changing american perception. changing set of institutions, the fact that the executive branch appears to be playing a much more consistently active role in both formulating and implementing china policy,

-china relations. panelists cover trade come military and security issues and north korea's nuclear weapons programs. this is about two 1/2 hours. >> we had five issue papers with authors for each paper or papers on each subject from the u.s. and china. we split the panels up so that this panel will address the papers on u.s. and chinese strategy and interest in the asia-pacific region, and also u.s.-china military to military issues. in the next panel will cover economics, global issues and politics. scott kennedy will share that session. we had a number of participants who helped to write the papers or joined us in study groups to review the papers so this is a representative group, claiming that anyone who is involved but some of the key authors for each of the papers were going to address in the panels. bonnie glaser, my colleague at csis and director by china project will talk about the asia-pacific papers. we're going to ask that panelists not to summarize the papers but identify between the amer

and china?. >> so that's the idea and that power to maintain some level of order to which the rising power would adapt and adjust defense on that underlying correlation if i of the ruling power can be enhanced by relationships with others and with what we're trying to accomplish together. so those various domains but not surprising at. >> host: they said your lead in the financial liberalization. and the chinese like to be respected. and then to be doing the very same thing. >> we are really trying hour best but the jingles are interrupting as. so the gentleman from the red shirt?. >> i am a freshman. i am wondering if you talk about the past 70 years with the international order looks like over chinese international order?. >> that is a great question. but it is one of the most contemplated. and i come from north carolina and i know somewhere in the constitution or somewhere it says usa means no. one. [laughter] did i have no doubt who the good guy is. these other ones i have doubts about. [laug

she spoke to me earlier north—west china. this is still very much in its early stages, it's a huge plan, it is all things to all men and women at the moment and it's very hard to work out which bits matter and which don't, but as you know, rico, the main issue here is china building an almost amount of infrastructure, roads, rails, ports, airports, pipelines, using up the excess capacity from its construction companies inside china and the infrastructure building that's gone on in these china over the past 20 years or so, bringing that construction effort to china's neighbours to boost trade at the end of the day, sell more chinese exports and create more chinese influence. what are the challenges of this initiative and how is this going to be funded? the challenges are immense and numerous. different in different places. in many other places, just beyond me to the west, central asia, we have questions of instability and questions of corruption. infrastructure projects are hard to keep clean at the best of times, they unfold

sanctions or entities in china are. ost: what is incentive for china to see tension between united states and the korean peninsula? guest: china doesn't like what north korea is doing, they don't the north korean program, but unwilling to do pressure on north korea, they fear explosion the sense of north korea lashing out or implosion in the or e of regime instability regime collapse. host: bruce klinger taking calls. independent, michael, go ahead. you.r: thank sir, a famous quote goes like this. it is a tribute to the american leaders are he reported and perceive it lie to wage war tis not tribute to public to be so was mr. oled and that daniel elsburg, pentagon papers. sir, when haley spoke up and outrageous statement to the world that we have the whatever bility to do we want, legal or not, the north korean situation, you have no options. the only option you have is to war illegally because they have the right to defend their country with military arms they can develop just like we did. to show the lies here, if you

if china started to behave ala teddy roosevelt nobody would say that is china being china and they will be fine. relax, let's worry about russia. it is not going to be like that. >> 00:36:40 unidentified speaker actually united states could have taken canada and was interested but he looked at that more than once her go so did the british. but they noticed what was vital and what we could adjust to they tolerated behavior that otherwise was crude and of reasonable and not fair but nevertheless they help the americans to see that american and british interest were quite a wind with that cultural similarity so therefore the u.s. is the natural supply allied for britain. even at the beginning of the war so then with the u.s. entered the war and then to be aligned with britain and then became even thicker with that naval conference americans agreed to hire of feel better with the brits. so where those interests are vital and in other areas if i am not powerful enough and it can adjust lit is to different cultures but that knowledge was elaborate a little bit also in terms of vital interest

china blames the united states. the u.s. blames china. if you are blaming one another, the one who wins and that is north korea. host: let's hear from montana. the independent line. go ahead. .aller: good morning, y'all i don't think there's any way we will solve this. china has us over a barrel on trade. it is pretty bad. if you look at the way the world is set up over there, you have china building these bases in the pacific. they are not supposed to be doing that, and everybody knows it, but they would do it anyway. they flexed their muscles at us, and we don't have an answer for them. we need them, and we know that. i think trump realize that. that's why we will not be able to do anything. yeah, everybody calls kim jung-un crazy, this guy is pretty damn smart. he has the most profanation in the world powerful nation in the world -- ofst: you raise a lot questions beyond korea, but i think everybody is stymied on the peninsula, including china. there was a point where china was an ally of north korea. those days are long since over. in

right now china's president xi is in moscow both china and russia would like to. demonstrate a common interest. deteriorating relations with the united to space both understand that donal's from administration. a serious fan of uncertainty and daydreaming very cautious demonstration. in china and russia is seen to be beneficial on the both the this despite trump's attempt to be best buddies with she a while ago it looks like the geo political set up hasn't really changed just like under obama the two eurasian superpowers seem to be getting along. pretty well while the united states is distancing itself and distrusting both of them. are to new york. breaking news this hour now it's. after the end as it's likely to set a border controls between the two countries r.t. charlotte do joins me live now from paris with more details now charlotte what do we know about this new shift in the longstanding migrant crisis. well that's right austria's ambassador has been summonsed over the fact that vienna has said it could deploy up to seven hundred fifty troops to the border w

and china. btv 7929 in the bloomberg, clearly showing chinese steel output outpacing the world in turquoise, and the u.s. in yellow, and in white, chinese crude steel production. this is one of the key issues, but one where we won't see much movement on given that we are not acting to see capacity cutting reform out of beijing until after the 19th peoples congress. >> absolutely. china wrote a report that could is more steel and april than all the markets in the world combined. this is a broader question. china is now the second largest economy in the world, the largest exporting economy in the world, and that means it will have a higher level of responsibility in terms of how to balance global markets. is one ofquestion them, and i hope the chinese government will work closely not just unilaterally, but also multilaterally, with other countries to rebalance the steel market. unfortunately, it will be challenging in the next 5-6 months. president xi s2 focus may becally and reluctant in some way

china says no, thatis neighbours in debt. china says no, that is nonsense. this boosts trade, a revival of the ancient silk road. 0ne a revival of the ancient silk road. one final thought i leave you with is that there is a huge difference between these two, the old and the new. that one was built by traders, private merchants and grew organically over centuries. this one is the brainchild of the chinese president and is driven by the muscle and the money of the chinese state. a long journey therefore carry who spoke earlier. you're watching newsday on the bbc. still to come on the programme: why thailand's prime minister is telling dancers in some of thailand's bars to tone down their act. central london has been rocked by a series of terrorist attacks. police say there have been many casualties, and there is growing speculation that al-qaeda was responsible. germany will be the host of the 2006 world cup. they pipped the favourite, south africa, by a single vote. in south africa, the possibility of losing hadn't even been contemplated, and celebration part

if you knew nothing about china, nothing about the kind of issues that china braces, you look at this and said why is the world ‘s second—biggest economy, an enormously powerful player, has treated an individual who is crime was six articles he put online with 1000 readers? wide is this extraordinarily strong organisation expand so much political capital on the case of just expand so much political capital on the case ofjust one man? you would conclude the rat fragility is and we are says there are cause most countries would not behave like this. censorship is also part of it. how might china react to the international condemnation that is already coming in? in terms of free trade agreement and climate change it has positive messages coming through more and more. this happened after the g20 which of the president attended. it diminishes that and an does so much of what china has been doing. thank you so much for coming in and talking to us. you're watching newsday on the bbc. still to come on the programme: we'll get the view from beijing about how the death of liu xiaobo is being

against china. this was an agreement between president obama and prime minister modi. that seems to have slipped away under president trump. this is also to do with an arms race and i think the visit of modi to israel testifies to that. to me it is another example of a populist global leader trying to humiliate millions of muslims around the world not only in his own country but in the neighbouring pakistan. he wishes to portray as the enemy within and one that threatens externally. instead of conciliation and resorting to democracy, he sees the future in a constant armed struggle with his side being armed to the teeth and ready to dispatch as many muslims as possible when trouble arises. this is what i call the israeli model and this is why modi has chosen to break decades of overt indian support for the palestinian cause and, indeed, decided to talk to a far right hawk like benjamin netanyahu. his behaviour in israel included snubbing palestinian leaders and stocking up on weapons. i find it outra

against china. this was an agreement between president 0bama and prime minister modi. that seems to have slipped away under president trump. this is also to do with an arms race and i think the visit of modi to israel testifies to that. to me it is another example of a populist global leader trying to humiliate millions of muslims around the world not only in his own country but in the neighbouring pakistan. he wishes to portray as the enemy within and one that threatens externally. instead of conciliation and resorting to democracy, he sees the future in a constant armed struggle with his side being armed to the teeth and ready to dispatch as many muslims as possible when trouble arises. this is what i call the israeli model and this is why modi has chosen to break decades of overt indian support for the palestinian cause and, indeed, decided to talk to a far right hawk like benjamin netanyahu. his behaviour in israel included snubbing palestinian leaders and stocking up on weapons. i find it outra

and china as the u.s. sends a warship to the south china sea. a lot to look ahead to with the g-20 summit in hamburg, germany this week. a potential meeting between xi and putin, as well as trump and president xi jinping. this is bloomberg. ♪ >> a dark, gloomy look to the lion city this morning. you "daybreak asia" are watching "daybreak asia". let's get to first word news now. willind: philip hammond say later the government is changing its tune on brexit and use a speech to business leaders are adopting as realistic tone following the snap elections. splitns about an abrupt from europe were not be discussed. iran will sign a deal on monday to develop the roads biggest gas field in collaboration with total and china international petroleum. 51.1%, whilentrol see in pc will also have an interest, and iran, 19.9%. the trump administration is considering separating the repeal and replace component of abolishing obamacare. white house says the president wants to pass the deal soon. toldweek, mitch mcconnell the senate health care bill from consid

still a latest china pmi numbers out, ubs chief china economist. survey, japan's tankan the highs for more than three years. we have the chief economist from credit suisse joining us from tokyo live next. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. inhaad: i am rishaad salamat hong kong. the latest business flash headlines. the fairfax media pulling out of after neither group submitted a binding offer. is proceeding with its own strategy to spin off its domain listing business by the end of the year. fairfax reporting preliminary earnings of $205 million. haidi: toshiba preparing to raise money by listing it switzerland-based energy unit. the first step towards an ipo in zÜrich may be made this week, although toshiba is still discussing whether a straight sale may be preferable. ubs is advising and talks have been held with several potential buyers, including goldman sachs. three former senior executives of tokyo electric power did not guilty to charges of negligence related to the 2011 fukushima disa

or china? rishaad: china. >> the 19th party congress, the announcements, policy, and so on, it looks like it will be more positive direction. more reforms and so on, so it looks like on the positive side. rishaad: when you say the u.s. is interesting, because you can confuse the two quite happily, 19th party congress, congress, and also a lack of tangible reforms or fiscal stimulus even. china is moving in the right direction in the longer term but u.s. politics is getting worse. if you look at president trump's problem with his staff and also the policy, looks like nothing has been achieved so far. i don't know. the economic front, it looks like the u.s. economy will continue to recover if you look at second-quarter gdp. it is good. wage inflation is moderate. corporate earnings are decent. there were a couple of disappointments like amazon and goode, but a lot was quite from the banking sector, so there is for the room to go up i think. arguably, clearly the trump part of the u.s. rally, the

there are several questions, one is what can china do and the other is what can china do and the other is what would it reasonably be prepared to do? more than any other country, i think analysts would recognise, china has these levers it kampl because beyond the sanctions regime in place right now, that there are the chinese banks and all these chinese companies trading with north korea, all this outbound north korean trade is coming through china, if beijing really wanted to it can pose some very tough measures on china —— impose. the question about whether it would want to or not comes down to this, china doesn't want north korea to have nuclear weapons but there's something worse for china than that and that's regime collapse. it's not going to do anything that risks the whole regime coming down, having a unified korean peninsula with us troops on the border. this is the equation really. unless they can come up with, the chinese, the russians, the americans, with some sort of formula that guarantees that regime collapsed with us troops on the border does not happen, china isn't

china, india, brazil, argentina. tell us how you approach china. mark: wee a lot of the -- a lot of the big stocks in china are in hong kong. now they are starting to open up the asia market. that means we could get into the small and medium size companies who have exciting thing happening in that territory. i think china will become much more important going forward. maria: how much more of a portfolio do you want in china? mark: now it's 28%. i don't want it to go too much higher because we can't ignore places like india growing at a greater rate than china. and brazil is coming along, too, as a result of reforms. maria: in india you have the rule of law. it's not communist. you have got other ideas in terms of the growth story in india. mark: the reforms modi is putting in place, particularly tax reform is exciting. maria: you say the he morning markets represent 30% of the he morning market capitalization. are you worried we'll see reciprocal tax when it comes to the west. the president said for those countries who charge that kind of a fee, we

right now china's president xi is in moscow both china and russia would like to. demonstrate a common interest you can be a. deteriorating relations with the united to space both understand that donal's from administration. a serious fact of uncertainty and dave remain very cautious demonstration. china and russia is seen to be beneficial on the both the this despite trumps attempt to be better. body is was she a while ago looks like the geo political setup hasn't really changed just like under obama the two eurasian superpowers seem to be getting along pretty well while the united states is distancing itself and distrusting both of them. r.t. new york fatah has replied to known to made him delivered by saudi arabia and sound lies i will have the details right after the break. seemed wrong. just don't call. me. yet to shape out these days become active. and engaged with equals betrayal. when something you find themselves worlds apart we choose to look for common ground . income inequality wage stagnation gerrymandering of political districts polarization you know

-china relationship. china is dismayed with a recent u.s. arms deal with taiwan, u.s. sanctions on a chinese bank with alleged ties to north korea and the u.s. navy sailing through disputed waters in the south china sea claimed by china as its own. >> so we're almost in the end of the honeymoon. so they're doing things that now are getting under china's skin. so it's a combined sort of now we like you, but on the other hand now we're going to press you. and as if to say we can manipulate china into behaving the way we want to. i don't think that works too well. >> that is not the way to play china. >> i don't think so. i don't think china especially now xi jinping has to look strong, has to look consistent, has to be the man of stability. he's not going to do something that is at trump's bidding. >> reporter: china is also clear that it does not want regime change in north korea. >> the dilemma is as follows, in order for economic sanction to be able to force north korea to denuclearize, the sanction has to be so tough that it threaten the stability of the economic sys

china is on the move. china he has what they regard as historical claim to the south china sea. it would be roughly though the united states claimed to own the gulf of mexico. china's belief is that they're and chengt territorial right is the result of all of those voyage offed a jink he vument they own that water with space and all of the hydrocarbon that are under it. 80% of pacific trade passes through this south china sea. to reenforce this claim china is building artificial island and reefs, many of them. thousands of acres and they're militarizing e those are airstrips you see. each one of those islands becomes a kind of -- aircraft carrier from which china seeks to operate and it reenforcing their claims under international law. fortunately, we have allies in this region. we have japan which is increasing its military spending and is more inclined to operate alongside us. we have south korea. a booming economy, new president. our allies are the heart of our maritime strategy this this region and it's good that we have them because we have an enormous tactical problem. chi

and only at china. but they need to be mindful, i'm sure they are, that china may not look at this in isolation. they may not compartmentalize this, and the last thing we hwat is a trade war or other sanctions such as the south china sea. >> let's look at tweets from the last couple of months. here is the one most centrally. trade wheen north korea and china in. i have great confidence that china will properly deal with north korea. if they are unable on to do so, the u.s. will, with its allies. two, two and a half months. that's enough. he's moving home. >> listen, it was a good idea to try to find a way to try to commit to the chinese to go along with a policy in north korea. we didn't know if it was going to work. it's not going to work. so what we're looking at is. if we can get to maximum pressure, then we can find out if the north koreans are going to move. if they're not going to move, okay, we went through this prots process, maybe the trump administration learned something about the chinese reg

some factors are beyond china's control, like the civil war in libya. then there are other factors around project management in these countries taking on high levels of debt. it reiterates the fact that china needs to move its focus from infrastructure to really focus on the domestic economy. it is interesting, what works in china is not necessarily going to work elsewhere. the size of china means they can invest huge amounts of money in these railways and they can run with lots of debt, but lots of the countries they were trying to export this to cannot cope those levels of debt. exactly. debt is central to the problems here. also, lots of suspicions from the local populations, suspicions about china's intentions with investing in the country. it is quite interesting. it is a blow to china's reputation as an engineering and project management expert. reputation as an engineering and project management expertlj reputation as an engineering and project management expert. i wanted to ask you about those second—quarterfigures to ask you about those secon

china's loan of zhaoqing. darling and mong among sweet dream comes from the global superpower with a price. needs worth paying attention when germany and china meets these days. germany is europe's undisputed leader. china's surging economic power is turning into a global political muscle. the chancellor and the president are meeting before the world's twenty biggest economies get together in berlin. once it might have been america around the table. but germany ones chinese health claims cropping up old world order destabilized by change in washington. and china once open markets to sell into. an ally that can rely on. we know we're going to see this is pioneering for our relations we are happy to note that thanks to mutual efforts on both sides. chinese german relations have reached a new phase in which we are moving on a peak level. the panda special came to britain in the nineteen seventies as china emerged from decades of isolation. ching ching and cha cha would gifts part of an effort to warm frozen relat

that's kind of all went to europe do you feel like china's has your money coming in china or we're a couple of things in terms of europe in africa and china sort of the other way around because europe has been there for centuries is a clone you know power but the volume of trade between europe and africa is relatively steady and because europe is not liberalizes agricultural policy it's been difficult for africans to export more to europe than they would. as much as they would like to china and india asia more broadly we should say has been the key driver of africa's growth right not only in terms of exports of african commodities what we call the supercycle in economics was high commodities prices for africans and for latin americans and high demand from asia that was the perfect symbiosis for the last fifteen years and now of course chinese infrastructure investment into africa particularly east africa but really just six or seven countries has been very very strong huge and it's helping to create a foundation for future economic growth in a couple of countries but remember africa

policy toward china now? you mention pulling the bank out of the financial system, sanctions, not working with them when it comes to different systems. are these all discrete things happening, are they happening as one broader plan? gordon: last week was coordinated. you start out with prime minister modi from india coming into that was a signal to china. india has some real issues with china on the border. then you have china being dropped into the worst category into the trafficking report on tuesday. thursday you have arms sales to taiwan. sunday, you had the freedom of navigation operation in the south china sea. these things should not have happened on their own. it was president trump saying, china, you have not been able to help, you have not helped, so we will start to impose some costs. we will do it at a low level to give you some room to come back, but we can see the temperature will go up it xi jinping will be intransigent. david: let me ask you about chinese reaction to this, the meeting the pres

china wins again. back at almaty‘s zenkov cathedral, dosym satpaev says the nations of central asia are like billiard balls in a game between the big players, russia and china. china, i believe it will be like some threat for our independence. why? because for china, kazakhstan is not an equal partner. for china, kazakhstan only is like one of the players, in the big china political game. that game stretches far beyond these mountains. but already it's changing lives, shaping the destiny of young nations in the shadow of the chinese giant. carrie gracie, bbc news, kazakhstan. and tomorrow you can see carrie's report from poland in the next stage of her journey. you have been watching newsday. stay with us. we'll be taking you to india to look at the troubles facing its start—ups. with job cuts and difficulties getting investment, can the industry survive? and, before we go, formula one teams spent the afternoon taking over trafalgar square, here in london, showing off their cars on a specially desi

china and germany engaged in panda diplomacy. germany and china's presidents underscore the relationship with a trip to the zoo. we went along. also coming up, guarding the world's most guarded. hamburg prepares to host world leaders and the g 20 summit, but with tens of thousands of protesters expected, we ask, can german police keep the peace? and the united states and south korea fire off their own missiles as a warning to north korea after pr yang testfired an intercontinental ballistic missile -- after pr yang -- after pr yang -- after pyongngyg testfirered an intercontinental baballistic missile. i'm frank of the -- i'm brent goff. it's good to have you with us. chinese president xi jinping is headed to the g 20 summit, but before heading to hamburg, he spent the day in the german capital with the german chancellor. they renew their commitment to deepening ties and visited this is, unveiling its newest residence, a pair of giant pandas, from china to germany on loan as a symbol of friendship. >> china's president brought wi

china and germany engaged in panda diplomacy. germany and china's presidents underscore the relationship with a trip to the zoo. we went along. also coming up, guarding the world's most guarded. hamburg prepares to host world leaders and the g 20 summit, but with tens of thousands of protesters expected, we ask, can german police keep the peace? and the united states and south korea fire off their own missiles as a warning to north korea after pr yang testfired an intercontinental ballistic missile -- after pr yang -- after pr yang -- after pyongyang testfired an intercontinental ballistic missile. i'm frank of the -- i'm brent goff. it's good to have you with us. chinese president xi jinping is headed to the g 20 summit, but before heading to hamburg, he spent the day in the german capital with the german chancellor. they renew their commitment to deepening ties and visited this is, unveiling its newest residence, a pair of giant pandas, from china to germany on loan as a symbol of friendship. >> china's president brought with h

we at the gdp on friday and some emi's from china this morning. -- pmi from china this morning. it's hardly gone off a cliff. these are stable. i had a conversation with the hsbc finance director and that seems to be the tongue. have we passed through the eye of the storm on china in terms of renminbi? growth? of guest: what i can say is that the data so far in the first two quarters of 2017 have surprised on the upside. they have instilled caucus and in the market for both outlook alex in china. it is mounting problems with the credit bubble, but it seems the authority has been handling the situation, especially on the growth for quite smoothly. i do not know if we are past the eye of the storm because in a couple years, this double might burst and lead to something much more serious. for the next 6-9 months, i do not see china representing a .eadwind for global economy on the contrary, i think it represents a tailwind. manus: the consequence of a weaker dollar is something which pboc is going to have to deal with. the capital flows are beginning to be pulled back. they are pul

trade imports, i should say, from china, 19% of u.s. imports from china. we just think about where you see that. you see it in clothes, you see it in electronics. et cetera. so, you're really talking about steps far short of a full cut off or a trade war, right? >> look, the language she used was broad and expansive. we will find out in the coming days whether she really meant to go that far, or whether she was suggesting something more conventional like secondary sanctions. i hope it's the latter because what we need to do is focus like a laser beam on the actual entities that are supplying the north currency and economic growth. not cut off all trade that could end up throwing our country into a -- we want to avoid that. >> donald trump has been in office less than half a year at this point. the obama administration was in power for eight years. how much responsibility, certainly more than the trump administration for where we are today, but how much of a responsibility do you believe the obama administration should accept for where we are today with nor

relative terms in china. the younger chinese leaders i think by and large see north korea is a pretty ugly piece of baggage. there is a way to make a deal here. the chinese concerns we have feared american troops. we do not want to be on the river. we want to get the southern tip of the peninsula. and here is the main point for china i think. at some stage, north korea will be threatening enough that an american president will really have to consider the use of military force. and if that happens there could be chaos on the peninsula. that has to be to china's disadvantage peers are china, you can do this the easy way. to do this the hard way. >> but then you have to be able to show that you are willing to use military force or otherwise it will be, we will end up with acquiescing to the north korean nuclear threat. >> that is right. and look, if you read the media today, some academic publications in the country, people are already being prepared to accept a nuclear north korea. i will not accept a nuclear n

it's likely to be targeted at china, isn't it, and expecting china to step up and resolve this. >> reporter: absolutely. we've heard from donald trump saying that he perhaps, in his words, that china would make a heavy move. again, his words, on north korea over this latest missile test. really the chinese have been all about engaging north korea with the dialogue. they've stuck with the line despite the administration wanting more economic action coming from china. there's no doubt that china does hold a lot of leverage over north korea in terms of economic -- basically an economic survival for north korea. something like 90% of north korean trade is with china. it does give you an idea of how powerful china could be. china will tell you and quite rightly that it is implementing all of the sanctions on north korea and is a signatory to the u.n. sanctions against the country. it says that's the way forward is pushing for dialogue. we've just heard from the ministry of foreign affairs just in the last half hour or so. they note the reports, they're still gathering information. certainly this

so china's seeking new frontiers at home and abroad. first stop west china. to solve economic and security problems with one blow. the silk road was once unimaginably remote to most chinese. not any more. in less than a decade, china's built twice as much rail as the rest of the world combined and pushed it out to the far west, towards the fabled silk road oasis of dunhuang, a magnet for the biggest tourist force in the world. one the government hopes will kick start growth and stabilise the region. heading west to troubled xinjiang, do they fear becoming targets of terror? translation: i'm not afraid. there are people looking after our safety everywhere we go. translation: a small group of people are causing trouble but 99% are good. at xinjiang's grand theatre, they're spending $250 million on a silk road centre—piece but the more china invests, the more it has to protect. the ancient silk road story has moments of danger. and china's grand new narrative is fraught with peril. deliver on the spin of opportunities for all, or forever scan the crowd for the

stripe is betting big on china. the payment enabler unveiled a deal with two of china's biggest payment services. they dominate the market with a combined 90% share. this move gives the start of access to hundreds of millions of chinese customers. joining us to discuss, selina wang from new york. how much new business does this mean for stripe? >> this is a big deal for stripe in setting their global footprint here. wechat and alipay completely dominate the chinese market for mobile payments, have more than 90% of the market. this is a way for stripe to reach consumers that were previously hard to get. most consumers are in one of these wallets and they can access the thousands of businesses that transact through stripe. this is a great deal for stripe because more business for its merchants means more revenue for them since they get revenue by taking a cut of transactions on their platform. emily: stripe has made inroads into china before. what is different now? >> they had a deal with alipay , but that was a more

-china talks. washington slams china for its trade, both declined to comment. betty: trump tells congress to delay the repeal and replace of obamacare. yvonne: elon musk looks at passenger trips into space. he says travelers will have to be brave. this is "daybreak asia," live it from bloomberg's u.s. and asian headquarters. i am yvonne man -- i am betty liu. yvonne: and i am yvonne man. it looks like we got a little bit more drama coming out of the u.s.-china dialogue. it seems like the gloves came off in terms of the trump administration side. have to wonder what happened behind closed doors. would havehought we an action plan in the first 100 days. it was quite tense, both sides canceling their pressers. will we go through with these tariffs? what is the relationship now between xi and trump? it seemed they were getting along swimmingly well at mar-a-lago. to have another golf outing to warm up relations again. [laughter] yvonne: we thought this would be a very choreographed event, not too exciting, but we got more fireworks than expected. the pessimism in t

now, you know, it's coming to the point where china is more and more supplanting point where china is more and more suppla nting russia and point where china is more and more supplanting russia and it's a question of how you manage that relationship. everything you say seems to be that russia is on the back foot here. is it trying to write a long on the coattails of china or actually be an equal partner? this is the thing. in terms of resources on loan, people, economy, russia is vastly inferior to china, it is an asymmetrical relationship and always will be. the way that putin has set up his own political regime, how he has legitimised that, it doesn't really allow him to take an openly subordinate position to say that we are thejunior allies subordinate position to say that we are the junior allies of the chinese and there is a lot to be had in presenting this as an equal partnership of some sort but it isn't. it really isn't. thank you very much indeed. let's stay with the world's second largest economy. china has just opened up its corporate bond market to overseas investors. star

china. ton i first started going china in the 1980's, all i saw were these old rusty bikes, no cars, then they got rid of the bikes and there were too many cars and now, guess what? and anabled bike sharing shared economy mentality from and anaring into airbnb e-commerce share of total chinese consumption that is double hours and it is rising and really shaping and reshaping consumer culture in ways that we do not really appreciate. julia: that will be exciting for the future. i want to bring it act to the short-term and what will happen in the fall of this year with the committee meeting. how important they are for president xi jinping. how things are shifting and the party's china is getting at this moment from president trump, is any of that embarrassing? at any point,-- he has to respond because he did his -- does not want to seem weak domestically? that is a fair question. i think the grip on political power, support from the military , is very strong. is congress coming up at and youof

what will be china's target? what is the framework for the financial deleveraging for china? this structural, almost a paradigm shift, the lack of inflation and wage growth globally, you make an interesting example about how it is playing out in china. you have strong car sales, but falling petrol prices. is this something the authorities can do anything about? that is something new, to allow policymakers to ask people like us. to mention the petrol consumption, this is interesting data we saw for the past few weeks. in april, we see the decline of petrol consumption despite stronger car sales. the also may be due to technological changes in china. have a lot of technological changes, popular topic in china is about the sharing economy, so you can take the bicycle, the sharing bicycle, so that may have some impact on the fuel consumption in general, which means the prices may defy expectations as of this is something new for policymakers. i think we are seeing the early changes regarding how technological changes impact inflation. this tug-of-war between the markets, who wins

but he was denied his dying wish — to leave china. we have been through these kind of cases one after another, but it has still come as a big shock. because, not only because i know him, but also because he has been such a symbol for china's human rights, or democratic movement. liu xiaobo's course was set in 1989. the tiananmen square democracy protests. he tried to secure students safe passage out. before the army moved into kill unknown numbers. many gave up, but he stood firm. in and out ofjail, for demanding political freedoms. translation: as a survivor of the tiananmen square democracy movement, ifeel i have a duty to uphold justice for those who died in that event. in 2010 he won the nobel peace prize, but he was back in prison for subversion. "empty chair" became a banned expression on china's internet. his once irrepressible wife, lui xia, was placed under house arrest, where she fell victim to depression. it was only two weeks‘ ago the world learned of liu xiaobo's illness. hong kong, the one place in china citizens could

russia has huge influence in china. he still remembers the russian literature and russian songs and it is a phenomenon across china. my and it is a phenomenon across china. my father's generation still remembers a famous novel which was widely read in the country back then. but the younger generation probably have chosen a different path. we started to learn english rather than russian when we were growing up. for vladimir putin it is important to alter this tendency if it is possible at the moment. that is why one of the agreements signed was about chinese and russian cartoons, so russia would launch 54 series of kids' cartoon in chinese, the adventures of a rabbit and a panda. they are trying to introduce soft power. a lot of chinese tourists are coming to russia at the moment and moscow wants to boost that. vladimir putin strongly needs his ties with china to become even better than they are at the moment. pressure on the islamic state in raqqa cranks up. syrian forces backed by the us have breached a wall surroundin

well what's in it for china is china i agree with you likes the turmoil for the united states they like the mess that the region is and they don't want north and south korea to come together they like this the preeminence of china geopolitically has because of this mess because of their trade policy the one thing china fears is a collapse of north korea and thousands of refugees from north korea going to china but china should recognize that stability in the region is good for them for trade for commerce militarily geo politically they don't want japan and south korea that are mad at north korea to be mad at china do which is the case now so you know i had china's motives right now are not only suspect but i don't think they're well thought out well you heard nikki haley today threatening more sanctions with countries that work with north korea i assume as a consumer that that would include china so what impact will more trade restrictions have on other countries. well you know that's that's an interesting idea we've never tried that but with china i think we can get adam there are a lo

we do so many things in china. again, our vision alipay. we do so many things in china. again, ourvision is alipay. we do so many things in china. again, our vision is to drive financial inclusion by technology. the first stuff we are taking in europe is to service and merchants here. it is the best way to educate the market for alipay is really about. it is notjust a payment option, it is a login platform for the merchants. it takes time to educate the market, but we are making efforts. one thing that people who are watching, notjust alipay, but the parent company, they will be wanting to know why the delay over the listing? it has been talked about, much hyped, but it now seems to be pushed back to... we don't know when? it was meant to be the biggest of 2017, wasn't it? well, i wish i knew more details. it is not our priority now. it is to solve customer issues and expand to more markets. it is not our priority. we are making lots of progress in various markets around the world and that is our priority. it is not to do with needing regulatory approval or approval from

china -- donald trump has said he wants china to do more. but what can china do? the u.s. wants to see china squeezing sanctions on north korea. 90% of north korea's international trade goes through china. china has taken steps, but we still have a north korean economy that some say is actually growing because of reforms taking place. offa could perhaps squeeze the consumption of oil to north korea. you have the risk of an economic collapse, regime collapse, refugees over the border. you could have potentially reunification in korea and the u.s. looking over at asian from the north korean border. that is a risk china does not want. >> elsa, let's come to you on this. preparee xi and merkel for the g-20, filling the void left by the u.s. on the global leadership stage, at least in the eyes of some. is there something you can .2, better eurozone growth from germany on the global stage? >> these political issues have been fairly priced in at the moment. it is difficult to turn that into a trade. it is not really a currency a six at least not for month or 12 month horizon. whe

on china sooner? >> well, when you look at it in 20/20 hindsight, perhaps they should have or could have. the bottom line is this. six months have gone by and the president has absolutely no plan. he said that missile plan was not going the take place. it did, in fact, take place. they did admit it was a two-stage missile and it has intercontinental capability. now what do we do? >> he did pressure china and had a meeting with xi jinping and said it did not work. congressman, if we could shift to domestic policies here, you were part of a special meeting in georgia that discussed the possibility of replacing nancy pelosi as the house democratic leader. do you think that that's necessary? >> i do think those meetings are necessary. we're for the public. my question to my colleagues is are we putting our best foot forward? we lost the house in 2010. we didn't regain it in 2010 or 2014. we're fast approaching 2018. what are we doing to make sure our message is there, we are working for the people and the

china's slowing down. that's one of the reasons the demand in the global economy for oil and for gas is actually decreased. it really has nothing to do with the administration global markets price oil and gas. >> romans, gas? >> i think prices are going to start to go up a little bit but look, you have a supply glut, weakening demand and low gas. what is funny to me, every four years candidates campaign on i can low he your gas prices and none of them really can. it say global market, but i think that for the working class voters who voted for donald trump in particular the number one indicator are those lower gas prices. i haven't seen a big change in the jobs situation for those workers yet, and he's promising that's going to come. >> there is an interesting economic numbers out just today this week, which may be a little bit of a warning sign and that has to do with auto sales. >> six months in a row stalling auto sales. these are big manufacturing parts, part of the manufacturing base of the united sta