tv Fast Money Halftime Report CNBC September 25, 2015 12:00pm-1:01pm EDT
forward on that and challenge the president and challenge his greatest political ally, which is planned parenthood. >> we appreciate your insight, and we'll be watching this one for sure over the coming weeks. thank you very much. >> thank you. >> tim. there's the rose garden. we'll await the president and chinese president xi. in the meantime, it's over to hq. the judge and "the half." >> kwarl, thanks. that's where we're going to stay. welcome to the halftime show. moments from now the president of the united states and china's president xi jinping will meet in the rose garden for that joint news conference. we'll take you there live as the leaders of the two most powerful economies meet reporters with many important issues on the table today. cyber security, the theft of intellectual property, hack, and the threat of u.s. sanctions as well. our chief international correspondent michelle caruso cabrera is on the north lawn for us today. michelle, this visit may have brought the typical pomp and
sick. we saw some of that this morning. as the washington post put it today, the romance between these two is all but debted. a nod, of course, to the many contentious issues that we've highlighted and have to be dealt with today. >> there's a long list of them, aren't there, when it comes to whether it's a situation with the expansion of the islands in the south china seas, whether it's cyber security, and whether or not there is any hopes of them coming to some kind of cyber accord the equivalent of, say, the nuclear accords that we used to talk about during the cold war. not to mention, you know, that's what the general media focuses on when you read all the press, but we, the financial press, know jack lew is involved in these discussions as well and the concern about what exactly and why do they do what they did with the currency that caused tumult in the markets. are they going to be trying to be interventionist with the financial system there. are they going to continue if the allegations are true to steal intellectual property from the american companies that are
doing business here or via cyber attacks that are here in the united states? like you said, scott, there's a lot on the table. very tense. then, by the way, this event that we're about to watch unfold could be very dramatic because president xi jinping has agreed to take two questions. standard protocol is two questions from the visiting foreign pregnancy, two questions from the american press. is he actually going to answer them? he has only taken one question before from an american reporter. it was beijing, 2014. he almost didn't answer it at first, and then finally came back around to it. now we have to see what's going to happen today. >> an american reporter reasked a question from a previous reporter and said you didn't answer my colleague's question and so he finally had to answer. it was an incredibly awkward moment. this is something that we're going to be watching here today
to see how does president xi take on an american free press. i can tell you as reporters when we were in seattle, the way the chinese media was treated versus the way the american media was treated by the chinese was incredibly different. the chinese were allowed to be in the room at all times. our cameramen struggled to bet into the room when he was told he was allowed to be. you know, the president had already started talking at one point before they let the cameraman in. >> this is quite a moment that we're watching unfold. >> you have anticipated what my next question was going to be whether this particular news conference was going to stick with the protocol. we know that president xi answered some questions by the "wall street journal" via e-mail and stuck mostly to the script as it relates to their economy, their intervention in the mashlgs, and you have to wonder, i suppose, even if he does entertain these questions as we're led to believe he will, whether he will stick to the same sort of script or deviate from it at all.
>> yeah. absolutely. >> he spoke twice in a public way in seattle. we know, i think, what he is going to say when it comes to intervention in the markets saying that it had to be done. it was to prevent systemic risk. he says that mature markets have done this before. >> i doubt he will get a financial question. if he gets questions from the american press, it's going to be about human rights. it's going to be about freedom of expression, democratic rights, et cetera. >> they have gotten quite a boost from janet yellen, the fed chair speaking last night and getting clarity to investors. i've got in front of me today
steven weiss, gem levinthal. john negligent aryan. ron, can you put that into context really? do you think it was the fed chair giving clarity that has led to a sizable gain on wall street? >> i hate using the expression that markets hate uncertainty. it's one of the most overused expressions we use. it does appear that the market prefers clarity about policy than it does worry about the risk of a rate hike, and i guess that's what we're getting here. what befuddles me is the world has not calmed down sufficiently given that just a week ago the fed said it was global turmoil that kept them from pulling the trigger. something tells me that by october they're not going to have solved these problems. yet, the market appears to be quite calm. >> where is that then, steve? >> well -- >> why does the market appear to be more calm as ron suggested? numbers today would tell. >> market hates uncertainty. only kidding. >> i hate that expression.
>> me too. me too. we'll just kick the can down the road. >> i read yellen's speech. very forceful. what she did is came back and said, look, we're going. we believe the conditions are set. if they're not, we're going tobacco dative for longer. i would rather see an economy on the verge of getting too hot than not get to get too slow and go back. the fed came out and said -- when you look back on it, it actually voshgd out very well. weren't that prepared. if you look at futures for a rate hike, the last meeting. now we're very prepared for it, and actually, the market is telling you, they're embracing it. what they're embracing is not the hike, but the fact that yellen gave the all clear to the global economy. it's not as bad as we thought. we misspoke. we're going for it.
dhooin emerge to the joint news conference, china also factors in maybe to some of the move today as it relates to nike where i. incredibly strong results. orders over in china of 22%, and maybe that meshes with what the fed chair is saying. some of the issues that insist there may not infect to the level that is some investors had feared. >> i'm going to give that a strong maybe because we're really not going to know at this point in time, there's one theory, and i have put it out on the show earlier this week that nike's strength in china is reflective of how easy it is to make a purchase of ath-leisure wear as opposed to if the economy is slowing. what the xhinz have been saying all along is that the economy is just fine. the impact of the stock market decline there is very muted on consumption. nike does have the potential
because of the unique and positive characteristics of the company to blow through whatever the macroeconomic trend is in china. >> have you to decide, john, which company speak is more important? whether it's dg at caterpillar, which was very dower yesterday, or whether you put more eggs in nike's basket? >> i would go with nike and for all the reasons swrim outlined. obviously you are talking hundreds of thousands or millions of dollars for some of the big-earth moving equipment, and the fx and the affect that it had for nike, it was notable, but nonetheless, they were able to mitigate about half of it. they would have been 17% futures orders would have been up 17%. i'm sure mr. oberhelm at caterpillar would love to have that outlook, but doesn't, and that's why the stocks are trending in the opposite direction.
>> this is, as my colleague carl quintanilla, already said, one of the busiest news days that we can remember. if you consider the pope being in new york as well, waiting on this news conference, of course, and then news within the last few hours that the house speaker john boehner is stepping down at the end of october. eamon javers has had the latest. >> we're told as of right now we're expecting to hear from john boehner at a news conference as soon as 1:00 p.m. we thought he might speak wrerl today. now we're told at 1:00 p.m. we might have a news conference from john boehner. if you want to know why this happened today, a lot of questions about what's going on inside the republican party. there's a brand new poll that's out within the past nine minutes, and i want to give you highlights in this poll, and i'll show you what republican voters are thinking. they're saying in a poll conducted on sunday through thursday, 72% of republican primary voters said they were dissatisfied with boehner and senate majority leader mitch mcconnell's ability to achieve
gop political goals. that includes 44% of the gop primary voters who said they were very dissatisfied with boehner and mcconnell and 36% who want them immediately removed from their leadership position. what are you seeing is a very dissatisfied republican political base. part of the reason why that's flaring up right now is the success of donald trump out on the campaign trail. he is running an anti-establishment, anti-washington, anti-republican leadership presidential campaign that's gained huge traction. he is dominating in the polls, although he has stalled over the past day or so in polls that we've seen recently. we have reaction from donald trump on this according to some information we're just getting out of the values voter summit, which is taking place today. trump asked about boehner's resignation. he says it's wonderful, frankly. i think it's good. it's time, and it's time for someone else to go up. he has asked if he thought boehner was conservative enough.
trump saying i don't think so personally. who would you back for speaker? trump says i don't have a comment on that. guys, there you get a sense of how donald trump feels, and he is leading this insurgent mood, whether is he the leader of, it or whether he is simply captured lightning in a bottle here for now and is riding this wave, to mix my metaphors. it gives you a sense of where the republican base is right now when so many republicans polled in the last week say they want the leaders of the parties removed from their jobs. >> eamon with the latest there. a very busy day in the nation's capital. thank you so much. still waiting on that joint news conference between president obama and president xi of china. there on your right you can see secretary kerry in nearly the middle of your screen as we get ready for that event. we're going to try to slip in a quick break and go live to the rose garden in just a moment when we come back. at&t and dire which means you can watch movies while you're on the move. sitcoms, while you sit on those. and even fargo, in fargo!
my kids and their friends live in this community. every time i go to a customer's house, their children could be friends with my children so it's important to me. one of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. together, we're building a better california. we wait on the joint news conference in the rose garden at the white house between president obama and the president of china. there's a story the other significant one on the left side of skwaur convenient. the industrial average up. the s&p sharply higher as well. three-quarters of 1%. the nasdaq not participating quite as strongly, but nevertheless, a pretty good day for the u.s. markets. ron insana, if we sum up the news that we've learned about the house speaker leaving congress and what that could mean for sdmrood price of pass
aing lean -- was mr. boehner's head, which they've now gotten where, how far, loss some talk that when it comes to reconciliation bills that put the two budgets in the house and senate together, and there will be an effort to defund planned parenthood and obama care which means they're going nowhere when it gets to the president. >> the markets would need and china is center stage here. we're worried about the economy there. the repel effects of the emerging market. on the u.s. earnings. here is the last thing we would need in the context of everything else we're worried about is a government shutdown. >> true, judge. i think the markets aren't so much cheering a rate increase even hoe many of us thought that it would have come last week and could have come last week, but i think what they are is cheering
yellen saying the conditions are good enough in the rest of the world because that was the spooky part of her statement last week. it wasn't the delay alone of the rate increase, but it was actually, you know, citing all those issues in china and naming them and that's why when you asked me wrerl in the week, is it important, and i said, of course, it's important because janet yellen says china is important. the fact that she was able to walk that back a little bit, i think that's why we're up. not because we're cheering for a quarter percent rate increase. >> what i don't understand is what you can't walk back right now is brazil is in a very deep recession. its currency is having trouble. russia wra and japan. europe is uneven. >>. >> are you suggesting that you still think we are walking back towards a retest of those lows? >> maybe, and i'm less concerned in this regard with the stock market as i am with the general
sense of the world insofar as the pulse globally is still deflationary. the u.s. by itself does look fine. to me the rest of the world looks horrible, and that's a factor in the fed's inflation. >> here's the deal. i mean, it's a dual mandate. it's not a triple mandate. >> this is part of the dual mandate. >> dual mandate is inflation, and you are saying what's happening the rest of the world is going to limit the ability to get the 2%. now they're trying to brake out materials and commodities. they drop after the speech. that would be from that standpoint. however, would i say that we can't really worry about that because what we're going to do is we're going to put the brakes on the confidence in this country if we keep having that sky is falling. >> can we handle 25 basis points? >> is there a chuckle?
>> certainly many months if not years that we couldn't. as early as last week we were saying we don't think we can. can we now? >> of course, we can handle 25 bates basis points. i don't mean that in a diminuitive way. there are two different perspectives. people say 25 basis points of a rate hike is a tightening. there are others, and i'm one of them, who says this is just a very preliminary step towards normalizing interest rates. let's just talk some facts here. it's been six months since the nber ended the recession, or, rather, called the end of the recession. six years. you've got employment down around 5%, which for many of us is well below the nonaccelerating inflation rate of unemployment. that would imply that inflation is going to pick up. again, from the perspective of we're not getting hawkish, we're simply normalizing interest rates, this 25 basis points should have no affect. >> it's not this 25. it's the next 25. it's the rate of change.
>> which xi does say, and that being the fed chair yellen that, they'll move forward, in her words, a gradual pace. >> i -- you know, i don't know if you will say we'll test the lows. i still think we're overvalued relative to where we should be. i look to consensus numbers again for the s&p. no change. 131. that's too high. >> i'm going to slip in another quick break as we wait that joint news conference and the rose garden. back right after this.op always obvious. rtuniti sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
>> we are back with breaking news today. a live shot of the rose garden where any moment now we expect the leaders of the two most powerful economies on earth to emerge for their joint news conference. president obama and chinese president xi to appear any moment now and address the media, but what we don't know is whether the chinese president will entertain the questions that are typical in these sort of events. normally it's two u.s. reporters and then two reporters from the
foreign delegation that get their questions into either leader or to each leader and then there is the expected response. we're unsure, frankly, exactly how china's president xi will respond to those questions. >> i mean, listen, they'll run whatever line they want to run when it comes to the economy. they make the number up to begin with, as many people allege. they are running a 7% growth rate. it's probably half that. we don't know the question on cyber security how they would respond given that the u.s. government has said publicly it believes china was responsible for one of the biggest acts in history. i would love to see a reporter ask that question and see how the president of china would respond. that's where the rubber meets the road. >> we could see president xi and obama about to emerge from the white house. head out to the rose garden for that news conference. it is the first state visit by president xi to the united states. not his first time, however, in
the united states. he traveled to the u.s. in february of 2012. he had an informal meeting with the president in 2013. as a younger man, he was here in iowa as well. let's listen now to the president of the united states and president xi of china in their joint news conference. >> good afternoon, everybody. please have a seat. >> i want to welcome president xi back to the white house. we welcomed him here when he was vice president. this is our sixth meeting. as a result of our efforts, our two nations are working together more closely across a broader range of political issues, and our cooperation is delivering results for both our nations and the world. >> chinese investment in the united states helps support jobs across our country. we partner to address global
challenges whether it's promoting nuclear security, combatting piracy off the horn of africa, encouraging development and reconciliation in afghanistan and helping to end the ebola epidemic in west africa. the historic climate change announcements that we made last year in beijing have encouraged other countries to step up as well, increasing the prospects for a stronger global agreement this year. and as a member of the p-5 plus one, china was critical of the sanctions regime that brought iran to the negotiating table and to the talks that produced the conference deal to prevent iran from obtaining a nuclear weapon. greater prosperity and greater security. that's what american and chinese cooperation can deliver. that's why i want to say, again, the united states welcomes the rise of a china that is peaceful, stable, prosperous, and a responsible player in global affairs. i'm committed to expanding our cooperation even as we address
disagreements candidly and constructively. that's what president xi and i have done on this visit during our working dinner last night and our meetings today. let me mention some specifics. first, with respect to our economic relationship, we agreed to step up our work towards a high standard bilateral investment treaty that would help level the playing field for american companies. we've committed ourselves to a set of principles for trade and information technologies, including protection of innovation and intellectual property. president xi discussed his commitment to accelerate market reforms, avoid devaluing china's currency, and have china play a greater role in upholding the rules based system that underpins the global economy, all of which are steps we very much support. i raised, once again, our very serious concerns about growing cyber threats to american companies and american citizens. i indicated it has to stop.
the united states government does not engage in cyber espionage for commercial gain, and today can i announce that our two countries have reached a common understanding on the way forward. we've agreed that neither the u.s. or the chinese government will conduct or knowingly support cyber enabled theft of intellectual property, including trade secrets or other confidential business information for commercial advantage. in addition, we'll work together and with other nations to promote international rules of the road for appropriate conduct in cyberspace. this is progress. i have to incyst that our work is not yet done. i believe we can expand our cooperation in this area even as the united states will continue to use all of the tools at our disposal to protect american companies, citizens, and interests. >> second, i'm pleased we're building on last year's climate commitments. last year i issued our clean power plan to help reduce america's carbon emissions.
today i want to commend china for announcing that it will begin a national market based cap and trade system to limit emissions from some of its largest sectors. last year i announced our pledge of $3 billion to the clean climated fund to help -- today i welcome china's major commitment of climate finance for the most vulnerable countries as well. our two countries are also putting forward our common activision for the ambitious climate change agreements that we seek in paris. the world's two largest economies, energy consumers, and carbon emitters, come together like this, then there is no reason for other countries, whether developed or developing to not do so as well. this is another major step towards the global agreement the world needs to reach in two month's time. third, with respect to security in asia pacific, we agreed to new channels of communication to reduce the risks of miscalculations between our
militaries. the united states and china reaffirmed our commitment to the complete and verifiable denuclearization of the korean peninsula in a peaceful manner. we demand the full implementation of all relevant u.n. security council resolutions and we will not accept north korea as a nuclear weapons state. we did have candid discussions. as such i indicated that the united states will continue to sail, fly, and operate anywhere that international law allows. president we have concerns over land reclamation and the militarization of disputed areas which makes it harder for countries in the region to resolve disagreements peacefully. and i encouraged a resolution between claimants in these areas. we are not a claimant. we just want to make sure that the rules of the road are upheld.
i reiterated my strong commitment as well to our one china policy based on the three joint communiques and the taiwan relations act. fourth, we've agreed to do more to promote international security. u.s. and china will bring countries together to promote afghanistan, and we will work with partners to strengthen international peacekeeping. we agree that all parties, including iran, need to fully imflemt the nuclear deal and that u.n. security council resolutions need to be fully enforced. for the first time the u.s. and china will also formally partner to promote global development. building on our efforts against ebola. we'll expand on humanitarian assist wrans, disaster response, agricultural development, and food security and given china's success in lifting hundreds of millions of people out of poverty, which is one of the most remarkable achievements in
human history, we will help rally the world this weekend around new development goals, including our goal to end extreme poverty. fifth, we had a frank discussion about human rights as we have in the past, and i, again, affirmed america's unwavering support for the human rights and fundamental freedoms of all people, including freedom of assembly and expression, freedom of the press and freedom of religion. i expressed in candid terms our strong view that preventing journalists, lawyers, ngo's, and civil society groups from operating freely or closing churches and denying ethnic minority equal treatment are all problematic in our view and actually prevent china and its people from realizing its full potential. obviously, we recognize that there are real differences there, and president xi shared his views in terms of how he can move forward in a step by step way that preserves chinese
unity, so we expect that we're going to continue to consult in these areas. even as we recognize tibet as the people's republic of china, we encourage to chinese authorities to preserve the religious and cultural identity and to engage the dalai lama or his representatives. finally, we're taking more steps to expand the connections between our two people's. we launch a new initiative to boost tourism between our countries in the coming months, and just as children across china learn english, we're starting a new initiative called one million strong to encourage one million american students to learn mandarin chinese over the next five years. vice president biden pointed out that two of his children are already on track. two of his grandchildren, actually. after all, if our countries are going to do more together around the world, then speaking each other's language truly understanding each other is a good place to start. overall we've had an extremely
productive meeting. the particular work that has been done by our teams shows the extraordinary progress that we can make when we're working together. the candid conversations between president xi and myself about areas of disagreement help us to understand each other better, to avoid misunderstandings or miscalculations, and pave the way potentially for further progress in those areas. president xi, i want to thank you again for expanding your commitment to cooperation between our nations. i believe that it's another reminder that as we work to narrow our differences, we can continue to advance our mutual interest for the benefit of our two people's but for the benefit of the world. thank you very much.
>> for the gracious hospitality and thoughtful arrangements and warm reception to me and the chinese delegation. i also want to thank the american people for a warm welcome. yesterday and today president obama and i have had in depth discussions on our respective domestic and foreign policies, important topics, international and original situation. our meetings are constructive and productive and we have reached extensive and important consensus. during the discussions president obama shared with me the
domestic agenda and foreign policy priorities he has been working on and i congratulated him on the progress that he has made in those areas. i appreciate president obama's reaffirmation to me that the united states welcomes the rise of a peaceful, stable, and prosperous china. it supports china to play a bigger role in the international arena and the united states supports china's reformat opening up. i indicated to president obama that china is making all-around efforts to deepen comprehensive reform to build lobbyist governance to enforce strict party discipline so as to build prosperity in all respects. the reformat opening up china will not stop china is firmly commit to the path of peaceful development. it is committed to friendship and cooperative cooperations with all countries in the world.
to work with the united states to build the new model of major country relationship without conflict, without confrontation, with mutual respect and win-win cooperation is a priority in china's foreign policy. we have spoken highly about the progress made in chinese-united states relationship, and we have agreed follow the consensus, expand the practical cooperation in various areas at the bilateral, regional, and lower level. and manage sensitive issues in constructive manner and to advance the new model of major relationship between c the united states. we have agreed to deepen the practical cooperation in various areas at the bilateral scope. this includes we have agreed to
have iing are asly push forward the bilateral investment treaty negotiation, speed up the pace of the work so as to achieve a high standard and balanced agreement. we will expand a mutually beneficial cooperation in energy, environmental protection, science and technology, aviation, infrastructure, agriculture, health, and other areas. the two governments and relative agencies have signed many cooperation agreements and our businesses have signed a series of commercial contracts. china and the united states are highly complimentary economically, and there is huge potential for further cooperation. for the united states to recognize china's economy status and ease export control on high-tech items, it will help expand the mutually beneficial cooperation between the two
countries. we have also had in depth discussion on the current international economic and financial situation. we have agreed to step up macroeconomic policy coordination and joint lie li promote global economic growth technology. to this end we have established the mechanism on regular phone conversation on economic affairs between china and the united states which will be led by vice premier of china and secretary of treasury jacob lew. they will stay in close communication respective and global major economic issues. we will also step up cooperation within g20, the world bank imf, and other multi-lateral mechanisms. i appreciate the u.s. supporting including the rmv into the imf special drawing rights when certain standards of the imf are
met, and i also appreciate the u.s. commitment to implement the imf governance stushgt reform plan adopted at the g20 summit in 2010 at an earlier date. we have affirmed the new progress made in the building mechanisms between the two militaries. we had agreed to stop up exchanges in policy dialogues between the two mirlz at all levels. hold more joint exercises and training. we believe that terrorism is the common enemy of mankind and we have agreed to step up multi-lateral and bilateral counterterrorism cooperation. we have decided to increase comunication and cooperation on humanitarian systems and disaster reduction and international peacekeeping operation and also nt cooperation, law enforcement expectation to fight against
trans-national corruption crimes. we have in depth discussion on the -- we believe china and the united states have extensive common interests in this region, and we should continue to deepen dialogue and cooperation on regional affairs and work together to promote active interactions and inclusive cooperation in the asia pacific and work with a country in the asia pacific to promote peace, stability, and prosperity in this region. china is committed to the path of peaceful development and a neighboring foreign policy characterized by good neighborlyness and partnership with our neighbors. islands in the south china sea since ancient times are china's territory. we have the right to uphold our own territorial sovereignty and lawful and legitimate maritime rights and interests. we are committed to maintaining peace and stability in the south china sea, managing differences, and disputes through dialogue,
and addressing disputes through negotiations, consultation, and peaceful manner and exploring ways to achieve mutual benefit through cooperation where committed to respect and wrup holding the freedom of navigation and overflow that countries enjoy according to international law, relevant construction activity that is china are undertaking in the islands of south -- do not target or impact any country and china does not intend to pursue militarization. china and the united states have a lot of common interest on the issue of south china sea. we both support peace and stability of the south china sea. the countries directly involved should address their dispute through negotiation, consultation, and in peaceful means and with support freedom of navigation and overflight of countries, according to international law. the management of differences through dialogue and full and
effective impolicemenation on coc based on consensus building. we have agreed to maintain constructive communication on relevant issues. chooirn and the united states are two major cyber countries. we should strengthen dialogue and cooperation. confrontation are not beneficial for both sides. the confident authorities of both countries have reached important consensus on joint fight against cyber crimes. both sides agreed to step up crime case cooperation and information sharing and both governments would not be engaged in or not only support on-line theft of intellectual properties and we will explore the
formulation of appropriate state behavior norms of the cyber states -- of the cyberspace spshgs we will establish a high level joint level dialogue mechanism on the fight against cyber crimes and related issues and to establish hotline links. democracy and human rights are the common pursuit of mankind. at the same time we must recognize that countries have different historical processes and realities that, we need to respect people of all countries in the rights to choose their own development path independently. the chinese people are starting to realize the great renewal of the chinese nation, which is the chinese dream. this process in essence is a process to achieve social equity and justice and human rights. china stands ready to in the spirit of equality and mutual respect conduct human rights
dialogue with the united states, expand consensus, reduce differences, learn from each other, and progress together. we have decided to continue to work together to tackle global challenges and provide more public goods for the international community. we, again, issued a joint announcement on climate change. we have agreed to expand bilateral practical cooperation, strengthen coordination in multi-lateral negotiation, and work together to push the paris climate change conference to produce important congress. we have chinese communication development and we have agreed to expand tri-lateral cooperation in asia, africa, and other regions in terms have food security, public health system, establishment, emergency response, and disaster reduction, and we will maintain
communication and coordination in implementing the post-2015 development agenda, promote a more equitable and balanced global development partnership and help developing countries to achieve dmon development. we have agreed to firmly uphold the international nuclear nonproliferation regime. president obama and i welcome the comprehensive joint plan of action reached by relevant parties regarding the iran wran nuclear issue. we reaffirm that all relevant parties should undertake to implement the agreement fully and work together to implement all rept relevant united nations security council resolutions. we reaffirm to realize the complete and verifiable denuclearization of the korean peninsula in peaceful way. we oppose any action that might cause tension in the korean
peninsula or violate u.n. security council resolution. >> the denuclearization process of the pents la and maintain peace and stability. so as to achieve enduring peace and stability in northeast asia. the friendship between the two peoples is the most reliable foundation for long-term and stable development of china-u.s. relations and we should endeavor toolify this important foundation. we have decided to make 2016 a year of tourism for china and the united states in the next three years we will fund a total of 50,000 students to study in each other's countries. we also work on the united
states to extend the 100,000 strong from universities to elementary and secondary schools and by 2020 one million american students will learn mandarin. the door of friendship of china will continue to be open to the american people. i also hope that the china people could come to the united states for holidays or visits more easily and conveniently. mr. president, in six years of development, the interests of china and the united states are deeply interconnected, and we have greater responsibilities for world peace and human progress. >> theesh on broader areas that the two sides could and can work together. the chinese side stands ready to work with the united states to uphold a spirit of perseverance and balance bilateral relations to seek further progress to the better benefit says of the
chinese and american people and the people in the world. thank you. >> wear going to take a few questions. we're going to start with -- bloomberg. >> thank you, mr. president. president obama and president xi, i would like to talk to you about cyber. if i am an american business, and i am being hacked by chinese peters pirates who are trying to steal my intellectual property, what firm assurance kz you give us today that things are going to get better and when? president obama, are you satisfied enough about the steps that china is taking to hold off on impose anything new sanctions to this end, or what do you still need to see, and president xi, could we expect prosecutions of chinese people and organizations who have hacked american businesses, and if the u.s. did sanction anyone in china, would you respond with sanctions? also, everyone will kill me if i don't ask. what is your reaction to house speaker john boehner's decision to resign? will this make life better or
worse for you? are you concerned it will make it more difficult to avoid a government shutdown or raise the debt limit, and do you think boehner could just wave the rules and get immigration reform through before he leaves? thank you. >> with respect to cyber, you know, this has been a serious discussion between myself and president xi since we first met, and the good news for my perspective is that in the lead-up to and then finalized during our meetings here today, we have i think made significant progress in agreeing to how our law enforcement and investigators are going to work together, how we're going to exchange information how we are
going to go after individuals or entities who are engaging in cyber crimes or cyber attacks, and we have jointly affirmed the principle that governments don't engage in cyber espionage for commercial gain against companies. that all i consider to be progress. what he have said to president xi and to the american people is the question now is are words followed by actions? we will be watching carefully to make an assessment as to whether progress has been made in this area. with respect to the various tools that we have to go after those who are attacking our companies or trying to extract
trade secrets or data, we have traditional law enforcement tools, but as i indicated a while back, through executive action, i have also instituted on individuals or entities where we have proof that they've gone after u.s. companies or u.s. persons. and we did not at our level have specific discussions of specific cases, but i did indicate to president xi that we will apply those and whatever other tools we have in our tool kit to go after cyber criminals either retrospectively or prospectively. those are tools that are generally not directed at governments, they are directed at entities or individuals that
we can identify, and they're not unique to china. those are tools that we're going to be using for cyber criminals around the world, and president xi during these discussions indicated to me that with 1.3 billion people, he can't guarantee the behavior of every single person on chinese soil, which i completely understand. i can't guarantee the actions of every single american. what i can guarantee though and what i'm hoping president xi will show me is that we are not sponsoring these activities and that when it comes to our attention that nongovernmental entities or individuals are engaging in this stuff, that we take it seriously and we're cooperating to enforce the law. last point i'll make on the
cyber issue, because this is a global problem and because unlike some of the other areas of international cooperation, the rules in this area are not well developed. i think it's going to be very important for the united states and china working with other nations and the united nations and other -- and the private sector to start developing an architecture to govern behavior in cyberspace that is enforceable and clear. it doesn't mean that we're going to prevent every cyber crime, but it does start to serve as a template whereby countries know what the rules are, they're held accountable, and we're able to jointly go after nonstate actors in this area. on john boehner i just heard the
news as i was coming out of the meeting here, so it took me by surprise. i took the time prior to this press conference to call john directly and talk to him. you know, john boehner is a good man. he is a patriot. he cares deeply about the house, an institution in which he's served for a long time. he cares about his constituents, and he cares about america. we have obviously had a lot of disagreements, and politically we're at different ends of the spectrum, but i will tell you he has always conducted himself with courtesy and civility with me. he has kept his word when he made a commitment. he is somebody who has been
gracious and i think maybe most importantly he's somebody who understands that in government, in governance, you don't get 100% of what you want, but you have to work with people who you disagree with, sometimes strongly, in order to do the people's business. i'm not going to prejudge who the next speaker will be. that's something that will have to be worked through in the house, and i will certainly reach out immediately to whoever is the new speaker to see what his or her ideas are and how we can make progress on the important issues that america faces. the one thing i will say is that my hope is there's a recognition on the part of the next speaker,
something i think john understood even though at times caucus along, that we can have significant differences on issues, but that doesn't mean you shut down the government. that doesn't mean you risk the full faith and credit of the united states. you don't invite potential financial crises. you build roads and pass transportation bills, and you do the basic work of governance that ensures that our military is operating and that our national parks are open and that our kids are learning, and there's no weakness in that. that's what government is in our democracy. you don't get what you want 100% of the time, and so sometimes you take half a loaf, sometimes you take a quarter loaf, and that's certainly something i have learned here in this
office. so i'm looking forward to working with the next speaker. in the meantime, john is not going to leave for another 30 days, so hopefully he feels like getting as much stuff done as he possibly can, and i'll certainly be looking forward to working with him on that. >> translator: madam reporter has raised the cyber security issue. indeed, at current for the international community and for china and the united states this is an issue all attach great importance to. with president obama and i have on many occasions, and this is a long history, have exchanged views on this. i think it's fair to say we've reached a lot of con ken shsens cyber security including new consensus. overall, the united states is the strongest country in terms of cyber strength.
china is the world's biggest cyber country in terms of the number of web users. we have more than 600 million of netizens. cooperation will benefit both and confrontation will lead to losses on both sides. we are entirely able to carry out government departments and expert levels of dialogue and exchanges to strengthen our cooperation in many respects and turn the cyber security between the two countries into a new gross source rather than a point of confrontation between the two sides. china strongly opposes and combats the theft of commercial secrets and other kinds of hacking attacks. the u.s. side has concerns in this respect, we can through the existing channels express those concerns. the chinese take seriously the u.s. provision of any
information. now, we have already and in the future we will still through the law enforcement authorities maintain a communication and coordination on this matter and appropriately address them. so in all, we have broad common interests in the field of the cyber, but we need to strengthen cooperation and avoid leading to confrontation nor should we politicize this issue. during my current visit, i think it's fair to say that two sides concerning combatting cyber crimes have reached a lot of consensus. going forward we need to at an early date reach further agreement on them and further put them on the ground. thank you. >> translator: now, i would like
to propose for china's central television reporter to raise a question. thank you, mr. president xi. i have a question for president obama. i have noticed that last night during a meeting with president xi jinping as well as the welcoming ceremony this morning and the just recently made remarks you have indicated that u.s. welcomes the rise of a peace, stable, and prosperous china and supports the china to play a bigger role on the international stage. would you please elaborate for your office so far what have you done to enable reaching this target, and we are more interested for the remaineders of the office what will you do still further to reach that goal. thank you. >> well, first of all, i think that the united states has provided a platform in the post
world war ii era in which the asia region has been able to stabilize and the conditions in which china was able to grow so rapidly were maintained, and we're very proud of the work that we did after world war ii to help rebuild both asia and europe, to help establish the international norms and rules that facilitated growing global trade and connections and travel and interactions and to help maintain the peace. since i have been president, my