china does not say that. but china acts in that sense, china first. why not? gudrun: actually, the chinese ambassador to the u.s. said, if ththe u.s. says america first, d we need to protect ourselves from the trade deficit, it is like looking in the mirror. so what you just said is reflected on the chinese side as well. melinda: in fact, andreas said earlier that certainly donald trump, or that china is not going to be looking to play a values-based leadership role, but that is hardly what donald trump is looking for either. his approach to foreign policy is explicitly transactional. so what would you say he will be looking for from xi jinping in this meeting in china, in terms of getting a good deal? andreas: first of all, i wanted to briefly respond to your previous question about the trade deals, because to me it illustrates that there are bigger issues, north korea and the south china sea that we will get to, but his response to these two trade deals is to me an illustration of his intellectual failure, and perhaps of the entire group around him, to under

-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,

in china. i would like to hear how would you use your important long and trusting friendship with president xi and what i expect will be your growing knowledge of china as you visit every province to really make intellectual property and stopping the theft of me,'s inventions a key priority in your role as governor if confirmed. >> well, senator coons, the incident that i was mentioning a few minutes ago actually involved dupont pioneer. as you know, we share dupont pioneer. they've been a wonderful american company and we think it's critically important that the rights and i'm aware of the fact that they're doing some important business in china. we also have the world food prize in iowa, and one of the recipients of the world food prize is the chinese gentleman that was involved in rice. and there's opportunity for dupont pioneer and they're also going through a potential mesrgr right now, there's opportunities for them to work together for the benefit of not only these great american compani

china's new silk road needs to solve china's problems — this china out here, notjust the one i've left behind in yiwu. the silk road was once unimaginably remote to most chinese — not any more. in less than a decade, china's built twice as much high—speed rail as the rest of the world combined, and pushed it out to the far west. using the lure of the silk road to draw the biggest tourist force in the world. china hopes its new silk road, laden with tourists, can bring wealth to the west. xinjiang is home to the uighur ethnic minority. they're mostly muslim, culturally closer to central asia, but outnumbered in their homeland. the region has witnessed a vicious cycle. bitterness over marginalisation driving bomb and knife attacks by uighurs, and met by overwhelming force and religious repression. china is investing here — more than $250 million to build this theatre alone — and the more china invests, the more it has to protect. but this silk road show works hard to spin a story of ethnic harmony. behind her stage make—up, buhalima is a uighur. 0nce xinjiang was known for musi

in china the ballpark statistic. it is definitely part of this process of chinese search for meaning with the collapse of the thoughts. buddhism is large. the other question down front? >> yes, sir. >> wait for the mic if you could. >> this may be a follow-up to the question just asked but i am wondering if there is increasing pressure from chinese business men to perhaps enter into joint venturing, if you will, with the american business to help their economy and likewise is there more entrance in our country in american businesses. >> the trading relationship between our countries has been started to become robust in the 1980s. it really took off in the 1990s. it exploded after 2001. that said, the business community in america is split on how it views china. in the past, it used to be after the collapse of the soviet union and tinman square it was the main thing that kept the relationship on an even keel. now, back to the question if you are a high technology manufacturer and you want to do business in china. the

with china's. the label as a communist and state china subject of some modest compare worth their weight they're not trying to run the world they're not even trying to run asia pacific i think they want to keep america from dominating the asia pacific so they have what they believe is their rightful place in asia pacific because of our civilisation long history and their size so their objectives are really modest compared with their capacity. the the world for new wealth in china and often so this is this is the product of so entrepreneur school but is it not also the product of the exploitation of people at the bottom what are known in china as migrants but they're not really migrants so. if you really. go to port to this my women workers you will find quite surprisingly. over the past five to seventy years they have experienced. greater increase there in the social groups china not a car society. but china is a class society. these are the homes of migrant workers people who build and service the

china relationship. it is relatively well managed, and that could change in the event there was an unexpected turn and taiwanese politics. i don't think we are at a point where this is a defining issue in the u.s. china relationship. graham: in the book i have a chapter about taiwan being a viable country. i think the things about taiwan that washington doesn't like, china will fight over taiwan independence. i think that is a fact. the u.s. has its -- accepted that fact and they're not likely to fight over taiwan's independence. >> charles, right here in the front. >> thank you. i'm part of the u.s. china working group and capital counsel of asian research. i agreed as will play out in an economic sphere and as i watch the f and ed, i won't comment on what trump is doing with the new negotiation strategy. it seems they are more process oriented as time went on. it became more and more and tolt to have results get chinese to commit. given that a lot of this is going to play out in the institutional arena

make china stronger and his vision of making china stronger has biota especially at a time when the rest of the united states especially does not seem to be stepping up to the plate as far as leadership is concerned so he's able to said to the chinese people that this is an opportunity that i and china must take it. isaac stone fish in washington d.c. there are some saying he's emerging as a transformational leader perhaps like chairman mao or done shopping as you know chairman mao established the communist state don't chopping introduced economic reforms that transform china what is he going to be known for i think it's good to insert a bit of hesitancy in skepticism so from what we can see she is becoming a more and more powerful leader but there's just so much we don't know we don't know what his relationship is with other members of the standing committee we think it's quite good but all we have are the tea leaves that we can see from the outside we think he has a good relationship with the men who run the military that's also something we don't know so if we stick with the assu

there was a time when china also had doubts about economic globalization and was not sure whether china should join the world trade organization. but we came to the conclusion that integration into the global economy represents an historical trend. to grow its economy, china must have the courage to swim in the vast ocean of the bloebl markgl. if one is always afraid of bracing storm and exploring the new world he will get drowned in the ocean sooner or later. so what china did was to take a brave step forward to embrace the global market. we have had our fair chair of choking in the water and we have encounter eed whirlpools and choppy waves. but we have learned how to swindle this process. it has proved to be the right strategic choice. whether you like it or not, the global economy is the big ocean that you cannot escape from. any attempt to cut off flows of capital, technologies, products, industries and people between economists and channel the waters in the ocean back into isolated lakes and creeks, this is simply not possible and indeed it run s counter to the historical trend. t

-china relations. he will examine a key 50 years been in the relationship of the two countries, in this case from 1900 and 1950 that really set the stage for a lot of what was to come, including south korea, the korean war and the vietnam war. ats a period he's looking the started with american involvement in conjunction with the boxer rebellion of 1900. this of course was before xi jinping is even a twinkle in or maybeump's eye, it's vice versa, i'm not sure. the event continues. i think our favorite and most successful programming partnership with the command and general staff college, they are specialists in a sure many of you have been to their presentations before. they do not fail. are engaging, they are enlightening, and they are entertaining. they are terrific to have here. firstk this is geoff's time here. he's overdue. he's taught there since 1991. he's a retired u.s. army's daschle versus officer. he was lieutenant colonel. as as trained by the army china for an area officer, which is one of

indeed, china's one belt one road is, to me, the coming—of—age of china as a full—fledged superpower. if not regional, it is a global superpower. it is the manifestation of chinese ambition, not just as an economic superpower but also eventually cultural, geopolitical, and also a military regional power. so, the impact, but consequences for us smaller nations in asia is quite significant. i think the important component of one belt one road is this idea of connectivity. and connectivity takes a lot of money to create. physical infrastructure is the most important thing. without this physical infrastructure connectivity, the one belt one road will go back to the seventh century, moving by ship, you know. so, who is going to invest in this one belt one road, connectivity building up the infrastructure chat? i would say that a lot of countries along this one belt one road in the past do not have that singular ability to pull this thing together, and with this initiative, there is suddenly a reason for all these companies and countries to come together, and a lot more viability for their

it doesn't happen yet china is not intended apparently to do that instead china. despite all the declaration of protecting of free trade china and. chris hughes something else china. for example use euro just one sided to westm and without any. fair play of for the protection of in ways many china shut down the only market for european enterprises it is not the just the policy of xi jinping but she jumping continues and i think. it is quite obvious that the united staes in some term just follow china's example. donald trump says america first china doesn't say that but trying x. percent china first or not. well actually the chinese ambassador to the u.s. said if the u.s. says america come first and we need to protect ourselves from the trade deficit it's like looking in the mirror so what you just said is reflected on the chinese side as well and in fact. said to us a little bit earlier that certainly donald trump it or that that china is not going to be looking to play a values based leadership role but that's hardly what donald trump is looking for either his ap

-china ties. my perspective on these economic issues is absolutely shaped by my current work, helping foreign investors navigate rapidly changing china market. for all of my corporate clients, american come a european and asian from a development of u.s.-china relations is a sick sick and interest. our advice is don't bridge group to counsel on ways that accompany between its corporate goals in china and is that by the government. this will help clients demonstrate interest and value into the china market for the long term. the rather precarious state of the u.s. economic relations in 2017 is complicating this work and increasing the number of corporate clients are concerned their business could be directly and not per se a fact they buy a downturn in commercial relations or heaven forbid a trade war. when i step back from the issues and look at trade and investment opportunities and challenges for the u.s. and china, of course it is possible to be reassured by statistics given the size and breadt

in china. i would like to hear how would you use your important long and trusting friendship with president xi and what i expect will be your growing knowledge of china as you visit every province to really make intellectual property and stopping the theft of me,'s inventions a key priority in your role as governor if confirmed. >> well, senator coons, the incident that i was mentioning a few minutes ago actually involved dupont pioneer. as you know, we share dupont pioneer. they've been a wonderful american company and we think it's critically important that the rights and i'm aware of the fact that they're doing some important business in china. we also have the world food prize in iowa, and one of the recipients of the world food prize is the chinese gentleman that was involved in rice. and there's opportunity for dupont pioneer and they're also going through a potential merger right now, there's opportunities for them to work together for the benefit of not only these great american compani

bulls bank of china so that especially china becomes america's biggest landlord and keeping prices down and they'll do it in the name of jobs and global harmony and this is i think what we're going to expect in the next few years because the u.s. is the world's biggest debtor china is the world's biggest creditor so you put those two together you have the biggest creditor taking on some of the u.s. debt this is a quasi government guarantee fannie mae freddie mac. but all the people who love borrowing money on those games they've got chinese landlords. who move global economy now he did also you know upset the democratic partisans because he basically went soft on the south china sea he didn't press you know there of these territorial disputes between philippines and japan and china well here's another headline relating to that. regarding the philippines trump makes friends by putting america first and ignoring human rights in asia president donald trump did not press philippine president to tear it on human rights issues in the philippines where thousands are believed to have been kille

in china, and the recent, "unmade in china." he has conducted many briefings about chinese trade and u.s. competitiveness to members of congress, senior military officers and the business community. his analysis has been featured in the wall street journal, the financial times, u.s. news & world report, npr, bbc, and other cable and other media news outlets. with that said, please help me to welcome jeremy haft. [applause] jeremy thank you very much. : thank you all for coming today. thank you for the world affairs council of colorado springs for hosting us. i confess that i was the one who voted for no podium. i tend to get lost. it's the darndest thing. when i started doing business in china 20 years ago i was 6'4". , part of the thing i want to talk to about, the view on the ground in china is very different from what we hear in our politics. the topic today is timely. we have president xi arriving to trump meet with president to talk about a host of pressing issues. and so doing, i want to bring your attention to a study tha

korea was part of china to a certain extent of course during different kinda how over china was not an occupying force of korea at all throughout the historical period and i think between china and the korea for two thousand years the relations have been normally very knowing or more and good ok and the korean culture has really benefited. a raise anytime say china are threatening isn't there a response to that that really is not making any sense at all ok let's let him respond to that i can see him shaking his head. i dast say that the u.s. state particularly want to be treated to an argument about history but history matters enormously in this region i suppose i'm a disinterested observer from the outside. the aggression thing could be argued in lots of ways but the claims that korea was in any sense part of china are deeply controversial and resent it there are lots of historical arguments but i guess maybe i mean i think it's a very what victor is saying will i suspect be seen in south korea though i'm not the one to say this as as as actually quite patronized like the point i draw

excuse me, for china. them to choose to send south korea to protect the south korean people from an imaginary problem. this is a real problem. and the problem is not south it in a fully defensive system for the defense of their own people. the problem is north korea, and it we want to stop bringing more into thecapability northwest pacific, we have to address the problem that is a threat to japan, to south korea, and all the other nations, so we have many areas we can work with korea, but at the same time -- excuse me, with china. at the same time, north korea is a problem that has to be addressed, and we can do so. we believe that by now, china is working this issue, but i hope that addresses each of the four questions. >> thank you very much. i will take a quick round. please keep your questions crisp. from india. secretary, i am from india. we have been hearing not just but we talk about rules-based laws being followed. will pullhink china back his militarization -- back its militarization. are we going

selling to china. so, i actually think the demand is not growing, making it harder for the us to start cooling down the relationship. now it's china buying in the u.s. >> what would you recommend for u.s. companies wanting to get involved in china? we see bai-du, companies doing research in silicon valley, china coming in, start ups, all their manufacturing in shen zen. what can we do? >> two things to be wear of. chinese start ups have not done well outside of china, southeast asia. u.s. has done horribly in china as well. i think it's all of our building long-term relationships. we spent four years in china before we started doing real business. we spent time forging relationships, work with the government, et cetera. i think for u.s. companies selling into china right now, that's a massive market of chinese consumers wanting western goods. they want brands outside the normal ones. it's hot access to get that in china. t-mobile, et cetera. that's a massive opportunity. it is getting easier and easier

rising china. where you land on these assumptions, in many ways determines where you will come out in policy issues, which i think are very important. otherwise, they will lurk behind. the first is the inevitability of china's rise. i was reading graham's op-ed about china's unstoppable rise. anne described china's economy as the world largest year amid scheme,-- pyramid that it will not be important to the world economy in a short amount of time. the trajectory is fundamental. other question is is china's rise good for you the united states and the world? some believe the effects will not be much different. or they will want what they want but it will not affect us all that much. there is a different school that would suggest not that china's rise is a bad thing but there are elements other question is t challenges to the vital interest of the united states. where you come down on that question, the nature and character of china's rise is fundamental. it's worth bringing those out in the discussio

as regards china, the u.s. pursued a two-pronged strategy, seeking to engage china across all domains, economic in particular, but diplomatic and others, and at the same time, working at our allies and partners in maintaining our own forces in the region to preserve a balance of power that was favorable to our interests and the security of our allies. the goals of that policy were to deter thetability, to possibility of aggression, while waiting for engagement to work its magic. the u.s. hoped in effect to ,btain and to transform china to encourage its leaders to see their interests as lying in the preservation of that order, and to set in motion processes that would lead eventually to the economic and political liberalization of that country. as in europe, so also in asia. our ultimate aim was to build a region whole and free and open -- an open, liberal region. it has become important -- a -- apparent that this has not worked. china is far stronger, far richer, but it is more oppressive domestically than at a

fading empire is china rising what is china going to do in terms of the u.s. as you know over the past few years. they're pulling out their basic lee financial nuclear weapons they're cutting people off from swift as jim rickards has said on the show once you do that you know it's hard to go back from there and will other nations develop their own swift alternatives here we have that case just like you know what you're saying you mentioned that there mining big queen and here is a little indicator of why they might be mining declined in north korea because the un applied sanctions from march of two thousand and sixteen which banned the export of gold verret e.-m. titanium and rare earth metals earlier this year a group of u.n. experts concluded that north korea despite sanctions continues to export banned minerals they determined as well that north korea uses another mineral gold along with cash to entirely circumvent the formal financial sector so of course gold has always been a way to get around sanctions here it's being used to get around sanctions because

and western china as opposed to having to go east you know from the seaports on eastern china and go through the straits of malacca they're going to go west on a rail and are going to get to europe quicker and that's already cheap because the labor costs in china but then it's going to be cheaper transportation so i think the other nations particularly in europe are going to be looking at this and say whoa this is a pretty good deal not too bad how would do you think this went bump them up to the top of the heap as far as the world's economies the u.s. is one you think it's going to cost to overtake that i do actually i mean they have been on the verge of being the number one economy u.s. is right now but they are already they have ninety some countries that view that china as their largest trading partner we're about forty fifty two rather so they're already doing way they're going to probably overtake us as you know we've. talked about it before they've got about a six percent gross domestic product growth we're struggling to get to you know two point two this year right sixty perc

china relations. well let me take the middle part and i think china is not without influence under narco and at the same time i think that not koreans also know just how much to do to stay under the red line as far as china stands and i think they're not good in communist party that we can gradually to achieve on this particular congress. there is a limit to which not korea will go. under and i also don't see at the same time while all the reasons that that will mention in the beginning there because of the trust deficit between not korea and the united states. they're not going to see their provocations the chinese certainly don't want american troops on their borders they certainly don't want to not ready to collapse so i think what myspace might be not really regime survival is just an important national security consideration for the chinese out there and your brain just think jobim thank you very much thank you to all our guests i'm a tongue in job in jacob and isaac stone fish remember if you're

has kept china down. that so much of western ideology has been about containment. and a deliberate subjugation of the chinese people. that is a very, very powerful -- that inspires a very powerful patriotism. but it also turns the people against anything that has the whiff of western ideology, individualism, liberal democracy. that reflexive sense of contempt for anything western can derail progress in china, moving forward. charlie: any possibilities that the region will become alarmed and vietnam and india and south korea, all will feel a sense that they must come together in order to restrain china? richard: that is a fascinating point. even though china is announcing its arrival on the global stage, peak china, think about it. china has territorial disputes with japan, vietnam, malaysia, indonesia, brunei, the philippines. it is currently beating up on south korea. on with northt korea, in theory, its ally. it just had a big dispute with india and the like. that is china's big failing. they are tellin

china, china, china, china, china. steve: china is a cruel, corrupt, communist dictatorship. it's a one-party state abusing women, imprisoning and executing citizens in denying its people basic freedoms. it's run by this man, next week will be re- appointed to a second five-year term by the communist party which stopped wednesday in beijing. many of you might be thinking that really communist anymore, look at their economy. communism is in the end about controlling the people. listen to this from "the wall street journal" top reporter in beijing talking about president critics. likthe vanguard of his economic policies are fake owned enterprises with limitless state wealth and endlessly obedient. for decades the elite in both parties here have been apologist for china. we were told that if we gave them the olympics it would make the human rights abuse better but it got worse. we were told that if you engage with china economy it would move china closely to a democracy but it moved further away. we were told that if we let china into the world trading system they would get rich

chinese people coming back to china, china has the most disciplined leader of a generation, and china is more powerful than it has been for 150 years. in the white house, we have the most ill disciplined president, maybe, ever. and he is ineffective to boot. the chinese have a comparison they can make at the moment. we have now be enjoined from beijing. sorry we had such trouble getting the line to you. we were talking about the disconnect tween the huge amount of economic development and so forth, and heavy weather ahead on the economy, and the idea that it is a society that is not free, yet it seems to be working. this is the socialism with chinese characteristics. absolutely. china has seemed to provide an alternative model that is different from the western democracy that can push through economic reforms at important times and lift people out of poverty. but the problem currently is that once that has been done, how do you keep the large middle class being employed? that requires improving the governance system, so china can transition into innovation —based economy. and that r

imports to china and over the south china sea. we have seen the offshore yuan versus the dollar trade lower following these tweets, and the question is whether this is more empty rhetoric from donald trump or whether it confirms he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's, unless he can make a deal. what is the buzz on the ground in beijing as to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media as to how some h

going to china, enabling us to do better in china. china has a consumption upgrade. millennial's becoming more globalized interviews, and taste , and in the way they consume. way for alibaba to take advantage of it. caroline: what sort of goods are we talking about? i am thinking a crackdown on luxury items will hit the french juggernauts. what will be sold in the u.s. to china? what we seeing with platforms is that you see apparel, fashion goods, mass-market price points. you see beauty products, health ,are products, gadgets electronics, a variety of things are doing well in china that were originally designed in the u.s.. they may have been manufactured in china, but were designed in branded in the u.s.. caroline: let's talk about another of your key investments, xiaomi. the way and having very powerful smartphones at a cheap price point. it seems that the competition is hot at home. when you see the company going? hans: four xiaomi, two fronts. they are the number two and number three in india now. initially to buy a phone in india, you had to go online to buy xi

the eu is already china's main trading partner, and china is the eu's second-biggest after the u.s. the trade comes to more than $1 million a day. the mantle ofn facilitating global trade. currently, finland's board members say they may not share the same values, that we share the goal of free trade. xi jinping has said that a prosperous and stable europe is conducive to the global economy. he has made statements like this, especially since the u.k. voted to leave the european union. haidi: this is not a bilateral relationship we have necessarily spend a lot of time looking at in the past. tell me about this relationship between finland and china. xi jinping's visit is a chance for china to resurface a relationship between china and the nordic reason. this is the first visit in my than 20 years, the last time was 1995. he will meet with finland's president. on this bloomberg chart, we can see the white line that shows finland's exports to china. it just crossed over with the blue line, which is china's exports to finland. posted a, finland trade surplus with china last 2002.the firs

exports go to china. that is a very disproportionate kind of interdependence and for china and for russia, they cannot do much for one another. accelerate,eally sustain, transform their economic strength or ability to bring prosperity or fundamentally change their military capabilities. they both need factors and relationships available in the west. and more broadly. china --f russia and they seek to gain advantages by closer withby being each other? of course they do. look at the hard numbers. i would disagree with catherine. it is a different set of numbers. numbers, thek shared economy is 24%. that is down a 2% since 1979 when china began its rise. we of dropped 2%. china's share of world economy world bank numbers is about 17% which is almost exactly the same share a's chai population. 4.5%, inchieved with the u.s., of the world population. the indicator gap is widening. >> yes. ppp, that means purchasing power parity. if you bought goods in china or whata, trying to compare those would cost relativel

imports in china. wilbur ross, the head of the donald trump trade team, will he take that cudgel up? kathleen hays, thank you. we are looking at the business of banking in asia. this is bloomberg. "daybreak asia." >> abn amro is one of the oldest banks in asia during it sold its regional business. a change in asian strategy for abn? haslinda: a tweak in the strategy. it is pretty strategic. i spoke to marine. it is good to have you with us. abn decided to get rid of its management business. what is the focus of the bank in asia? >> the focus is the bank. we have several businesses. it is very industry focused. we have commodity and we have a clearing business. that business has been steadily growing in the past few years. haslinda: industry growth, where is it and where will it the? >> the asian numbers are included in the global growth numbers. since we started from a smaller base, we have been expanding geographically. last year, we opened a branch in shanghai. we have a long history in asia. shangha

ambassador a direct plea to china to exert greater economic pressure on its ally and neighbor we need china to do more president called chinese president xi this morning and told him that we have come to the point that china must cut off the oil from north korea that would be a pivotal step in the world's effort to stop this international pariah but no such pledge from china instead it called again on the u.s. to explore a freeze for freeze scenario in which north korea would slow its missile program if the u.s. and south korea lowered their military posture on the peninsula this position supported by russia. we proposed a solution based along the principle of suspension for suspension which in visions of d.p. r. k. stopping missile tests while at the same time the u.s. and south korea decreasing the scale of their military exercises this in turn will pave the way for the principles of peaceful coexistence and peaceful discussions between washington and pyongyang. but this has been repeatedly and vehemently ruled out by the u.s. another round of joint exercises between the u.s. and so

imports the china and over the south china sea. we have seen the offshore yuan versus the dollar trade lower following these tweets, and the question is whether this is more empty rhetoric from donald trump or whether he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's, unless he can make a deal. what is the buzz on the ground in beijing as to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media as to how some here feel. th

what is china's position? basically china will hold the leaders meeting what do you hope to accomplish? >> [speaking chinese mandarin] [speaking chinese mandarin] i watch your show almost every night and i hope they will achieve better development. the countries are representative of the emerging economies and over these years they may have risen or fallen and they each space debate could face their own set of challenges but as they have put it the bricks are like five fingers each with its own strength. but when we come together, we are a fist that can punch as long as we stay united at the brickthebricks will not lose itr if more it will shine ever more brightly. >> [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] >> translator: this year they entered the second decade as the chairman china will work with other countries to plan the future offering and the golden decade of the corporation an

think of china today, it is not china in 1969. when we think of russia today it is not rush of 1970. these are much more open societies are you yes, they are authoritarian. -- societies. yes, they are authoritarian. like it was very different -- now everyone has access to the internet. very high internet use in russia. also in china, yes, there are sites that are blocked. nevertheless, clever people find ways around those. i think, even the category of a state and the control a state can exercise, that is being challenged by technology. of greatnother factor importance. thisther thing is, whether president trump is a symptom or a cause of a shift in american thinking about world order. some of his statements have called into doubt two of the very important pillars in which was created.rder mainly, alliances. questions about nato and the commitment to south korea and japan. an issue has been raised. agreements, trade which is also an important part of american policy. you do not know if there will be toeaction to this area -- this.

situation --y need some time for china a tough situation. they need some time for china. germany has a weak position in terms of the nato, how much they should be contributing. south korea, another huge trade surplus against the u.s. i would imagine that germany would be in the spotlight. shery: thank you so much for joining us, head chief asian economist. and our currency editor, thank you so much. the u.s. backs away from enabling china. >> it is 7:30 here in hong kong, happy thursday. it is easter weekend. we are 30 minutes away from asia's first major market open. friday, 7:30our p.m. wednesday here in new york where markets closed down, the s&p 500 down about 1/3 of a percentage. i am ramy inocencio in new york. shery: i am shery ahn in hong kong, you're watching "daybreak asia." let's get first word news with courtney collins. >> president trump says he will not brand china currency manipulator. he is changing a core campaign promise and blames a strong u.s. dollar for changing competitiveness. u.s. 10 year bond yields and the dollar fell after the report saying the

taiwan, the south china sea and other issues concerning china's major court interest. we have drawn a clear line of what is acceptable and acted forcefully to defend our court interest as well as our legitimate right. the emphasis on this issue remains. i think very much it will be reflected in the party congress statement. it reflects the larger emphasis by the regime which began, the defense of stability and the advancement of peace and stability alongside the protection of china's rights and interests. using china's greater influence to advance those interests. at the same time, i think there will be efforts to emphasize multilateral diplomacy as have occurred in the recent party congress in the idea of reforming global governance which has also been a theme in past congress meetings. in the defense and security rounds in particular, i think you'll probably hear the phrase which was again made after the 18 party congress on a search for a common comprehensive, cooperative and sustainable security. in this regard you might hear the placement of the party the three pr

china is building in strips in the south china sea on disputed islands condemned by an international tribunals this is now a flashpoint for war between china and america. what is not news is that china itself is under threat. these american bases form a giant news in circling china with missiles bombers warships all the way from a stranger through the pacific to asia and beyond. i mean if you were in beijing looking out stood on the tallest building in beijing and looked out of the pacific ocean you'd see american warships you'd see guam is about to sink because there's so many missiles pointed at china you look up the korean see american armaments pointing at china you'd see japan which is basically. japan's a glove over the american fist i think if i was chinese i'd have a little to worry about about american aggressiveness and we have china surrounded and we're doing more all the time to try and keep it surrounded and deepen that containment of china. but china presents a fascinating case of a country that is independent doesn't have foreign bases on its territory. growing very ra

essentially china's big three allied is a china southern, china eastern and air china. let's take a look at a graphic illustrating the size of each. they are asia's three largest airlines in terms of their fleet size and the sheer number of passengers they carry. china southern is the largest, carrying over 70 million passengers this year as ofjuly, with over 500 veins in the f. china eastern follows with 63 million passengers. —— 500 planes in the air. finally air china, which flew 57 million people with just a fleet size of 400 planes. you can imagine, with the sheer size of these airlines, you would think they would report fairly good profits. actually they have reported a fairly mixed bag. yesterday we saw decent earnings from china eastern, which saw its first half profit rise. that was really on the fact that they had a 1—off sale of a logistics unit. a stronger chinese currency, as well, the yuan. china southern recorded an 1196 the yuan. china southern recorded an 11% fall in first half profit, due to higherfuel 11% fall in first half profit, due to higher

plan for china is a good example. what is the effect of putting $160 billion into a slush fund essentially funneled through the quote market oriented entity to make it so that you cannot apply wto subsidy rules to it? what is the effect of that going to be on the u.s. semiconductor capabilities and how does it play out, and what should we do about it? we need more time and effort spent about it for questions within the government. and last willy, i would say that it is go ing to be with the new administration, and i think that the trump administration has real opportunities in this space, but i would urge them and urge you to urge them that we need to really do this in concert with the allies. if we tighten up the investment review process, the chinese is going to simply buy european companies and compete with us using a their technology, and the europeans need to have a similarly tight review processes and work with them to ensure that the japanese and the koreans and the taiwanese have pretty good investment process

and western china as opposed to having to go east you know from the seaports on eastern china and go through the straits of malacca they're going to go west on a rail and are going to get to europe quicker and that's already cheap because the labor costs in china but then it's going to be cheaper transportation so i think the other nations particularly in europe are going to be looking at this and say whoa there's a pretty good deal not too bad how would do you think this would bump them up to the top of the heap as far as the world economy is u.s. is one you think that's going to cause you to overtake that i do actually i mean they have been on the verge of being the number one economy u.s. is right now but they are already they have ninety some countries that viewed that china as their largest trading partner we're about forty fifty two rather so they're already doing way they're going to probably overtake us as you know we've talked about it before they've got about a six percent gross domestic product growth we're struggling to get to you know two point two this year i sixty one

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

should take a more aggressive approach to china in the south china sea. >> we are going to have to send a clear signal that the island building stops and your access to those islands is not going to be allowed. >> i will run through some of the other points. theddition to what most of senate committee hearings were about russia and the battle against islamic history is in. chinana and asia, he said has serious human rights olations. he criticized china for stealing intellectual property. he is not opposed to the tpp, which has been a hallmark of obama's ticket to asia but he -- obama's pivot to asia. he said the u.s. should review some of the climate change accords. that was another hallmark of the obama administration's success in reaching a consensus with china on climate change. >> let's move to north korea, though. >> that issue, yes. .hat is another one, of course he would like to see china take a larger role in renting in north korea's nuclear ambitions. the south korean defense ministry had a paper saying pyongyang may considerable on nuclear capabilities and rex tillerson said t

a view from china. in other news, federal reserve officials basically have given a stronger signal that they may shift away from the post financial crisis investment policy. they also said they see considerable uncertainty about the effects of a possible stimulus from the donald trump administration. but they said they do not know how quickly there will be phasing out of investments. the owner of krispy kreme will buy panera bread. that is as it expands its empire in the us market. panera has about 2000 bakery cafes in the us. fresh offerings appeal to health—conscious consumers. india. the next instalment of our week—long series looking at the property industry. first it was undeclared wealth, now it is property. india's prime minister is on a mission to stamp out illegal financial activities, as well as tax evasion. but while last year's tax bank caused a lot of inconvenience for many indians, a crackdown on real estate may actually help them. like many indianfamilies, estate may actually help the

china, for example u is -- is seeking to dominate the south china sea with the south china seas. they will continue to to do thao matter what we do or say. trish: great to get your analysis, appreciate it. now joining me right now on thoughts of north korea, fox news strategic analyst and, author, lieutenant ralph peters. colonel, good to see you, we have been talking for days about this and it's been heating up considerably with just last night kim jong un flying a missile over japan, what stage does this leave us in now? >> well, we need to realize some basic things. trish, kim jong un is not afraid of us. despite our overwhelming military power, he doesn't believe we will use it. he believes we are tired n -- in retreat. but overall, kim jong un is convinced that even though -- china will back him and putin will back him and we won't fight. i have tremendous respect for nikki haley, she's really amazing, i think she has a great future ahead of her but she didn't talk about key economic issue which is smuggling. so much of this, the sanctions are being undercut by chinese and r

thanks max already we're talking about china are talking about india parent a china and india and at loggerheads up there in the himalayas there bhutan a lot of skirmishes go on and on war with these two eminent you think there could be a shooting shooting match going on in the near future right damn well china said the clock's ticking of started been two months no china will not negotiate till the indian troops of withdrawn so until we see that i don't think they'll be any negotiation but yeah we're getting dangerously close to a shooting war i think within within the next thirty days unless they would draw right so i understand china's you know got a lot of military hardware to bring to they bring to the table there's india got the military might to go up against china haven't really followed them too closely what's going on there. no i mean chinese economies. twenty times roughly india's economy the military ten fifteen times the size of india much more technically advanced china has huge and you know indigenous military development projects projects. you know advanced fighter jet

even china cannot help because as. studies say show exports is to the west. not to china. is it economic so why. is it in the west there i'm afraid we're going to have to leave it where we're out of time thank you to all of our guests on the program today. to go out and hustle. thank you for watching don't forget you can see the program at any time just by visiting websites i was zero dot com for further discussion joined us at our facebook page at facebook dot com forward slash a.j. inside story you can also join the conversation on twitter handle at a.j. inside story from me or the whole team here and thanks for watching i'll see you again with. the new era in television news. it doesn't say that it's tough to do things in secret that are i mean we had actual victims who had survived the torture detention and this was the cause of my arrest if you could. just stay the fuck would you. like this conviction that everyone has a deep reservoir i'm going to if you can give them the opportunity and wonderful things start to