-china rerelations and what it meant to china? >> i think it was a very fruitful week, a very productive week. it goes a long way in promoting relations between china and the united states, particularly for the second decade of this century because the two sides agreed to develop a partnership based on mutual benefits and, also, a mutual respect. and i think this is very important for the world, for our two countries. >> rose: the chinese got what they hoped to gain from this-- from the meetings? >> i thinkoth sides are pleased with the results of the visit. because we are very sensitive to your concerns, and i think the u.s. has tried its best to be sensitive to our concerns. now i think the challenge is to implement what has been agreed upon. >> rose: would you agree with this statement that someone said it put a floor under the chinese-american relationship after a difficult year? >> actually, when the administration came into this office, we had a good transition, and the relations for most of the time since the administration

china relations. tell me what that blue print might be, ought to be. >> when i came to china on the first visit, when the communication was completed, jintao said to me this will shake the world. because we had been antagonists for 25 years. and it was the alliances for china which had been with the soviet union. now we have a different problem. the problem isn't to shake the world, the problem is to build the world in which in a paradoxical way both china and the united states face the same problem. from a different standpoint. americans think our values are relevant to the rest of the world. and there are many questions that we have a duty to spread our values throughout the rest of the world. the chinese don't spread spread their values. you can't be a chinese but they think they're universal and unique. so here are two of the most powerful countries in world in which there are a lot of problems that can be dealt with on a global basis. so we have to do it together in some fashion. which is not the

we believe china will do so because the alternative would be too costly both for china and for china's relations with the rest of the world. >> reporter: secretary of state clinton. >> we need to open up more opportunities for american manufactured goods, farm and ranch products and services, as well as allowing currency to appreciate more rapidly. these reforms we believe would not only benefit both our countries but contribute to global economic balance, predictability and broader prosperity. >> you have seen a small move lower in the dollar but not pressureably so. >> reporter: back in november, david stek, who runs the foreign exchange desk of a securities company in new york, showed us how the dollar had been faring against the chinese currency. >> here you're looking at a long term chart. >> reporter: for many years china glued its currency to the u.s. dollar, but starting in 2005, china loosened its grip. letting the value of the dollar fall against the chinese currency, some 20% over three years. but in 2008 the world financial crisis hit. and china reglued the currency to the

and china. coming up at 10:30 eastern on this network, the house foreign affairs committee is holding a briefing to discuss current relations between the two countries including the impact of china's economic security and human rights policies on the u.s. florida republican congresswoman chairs that committee. and more coverage of the visit of the chinese president tonight as the white house hosts a state dinner in his honor. it will begin at 5:30 eastern as we'll show you guest arrivals for the dinner at 6:00 we'll have the arrival of the chinese president and his wife on the north portico of the white house. and then at 8:00, we'll bring you a discussion on the state visit including re-airs of toast. president obama and president hu along with viewer phone calls. that's starting at 8:00 pm eastern. a discussion for you on u.s./china relations. john huntsman will be speaking from the brookings institution. this is about an hour. [inaudible conversations] >> i'm kenneth -- >> good morning, to th

the rise of china is not against the prevailing edgemont in the world america but the rise of china is we in the hedge money system itself what i mean by that is that globalization which is a western driven reach driven project. has facilitated the rise of china so china rises so much as the west allows it to rise and now the chinese stronger and feels more secure they're starting to weaken issued it's on their own they're starting to try to create a consumption class within china itself to become more self-sustaining so americans are now have a very codependent relationship in which china finances america's debt allowing america militaristic around the world controlling resources american consumes chinese products which are developed cheaply benefiting both china and america so they're incredibly that and in terms of finance and banking they're heavily heavily integrated but there's also it's gets a frantic relationship in a sense because there are also each other's greatest competitors and this is mostly seen in the competition for global resources and this has been outlined in strat

democracy in china. leslie, mr. robert sutter to has been a visiting professor of asian studies at the school of porn services in georgetown university since 2001. in addition to his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal agencies that lasted 33 years. we will begin with mr. larry wortzel. i'm sorry that i'm not so great with the pronunciations, but look at my name. i don't get too picky. i will be rather ruthless with the five minutes, so please confine yourself to five minutes. larry, you are recognized. thank you. >> chairman, ros-lehtinen, ranking member berman, members of the committee, thank you for the opportunity to address you today. that use at present are my own informed by my service in the u.s. army, on the u.s.-china security and review commission and my own research. in lat

china, china is of two minds in this. of the one hand china would eventually like to see a more low--calorie gorbachev and style buffer states, a kind of of authoritarian capitalist trending in north korea that would be blessed stalinist it, less extreme than the current regime. on the other hand china is afraid of pushing this too far because it fears the collapse of north korea because the bulk of north korea's population and industry is in the northern part of north korea. were you to have a collapse of the state you could have millions of north caribbean refugees flooding across the river into chinese manchuria itself. china is very much afraid of that. so why would it want a regime that is less tolerable than the current stalinist monstrosity. at the same time, china is very fearful of a collapse. so china is upholding the status quo in north korea, but my opinion is that a regime like this is ultimately not viable in the world that we live in today. were the north korean regime would unravel suddenly, you could have

china just is not claims against the other nations in the south china sea, china feels the south china sea as a core interest, which it hopes to dominate. think of the south china sea as china's caribbean. in geographical terms, the south china sea is what is called a marginal fee. that is it is partly enclosed, partly open to the ocean, same as the caribbean and. a chinese official said to me, when i mention that china considers it a core national interests and this is counter to what the united states and its allies in all the other countries in the area see a. this chinese officials did to me, you americans in the 19th century and in the earliest 20th, you recognize the caribbean was an international waterway, but you also made it clear that you intended to dominate. why should we chinese act any differently towards the south china sea than you americans due to the caribbean -- due to the caribbean? said the south china sea is a coming issue. it's an issue that's going to be -- that has a great future in the headline, as much as the persian gulf has had in the last few decades. so l

japan and china. japan will continue to exert its control over the senkaku islands. >> reporter: he also referred to economic relations between the two countries. >> translator: it is vital for japan and china to build a win-win relationship. we can do this by advancing discussions on free trade agreements and by further boosting trade. >> maehara said he expects he and prime minister naoto kan will visit china in 2011 and chinese leaders will also come to japan. >>> south korea confirmed its first bird flu cases in chickens and ducks in more than two and a half years. the foreign ministry says the virulent h5n1 strain of avian influenza was discovered on friday at two poultry farms in the southern part of the country. local authorities have destroyed 7,000 chickens and 10,000 ducks. they have called more than 90,000 chickens at a nearby farm to prevent the flu from spreading. the transport of chickens and ducks has been band within areas of a 10 kilometers radius of the outbreaks. early in 2010 south

think of the south china sea as china's caribbean. it's a -- in geographical terms, this sea is a marginal sea. that is, it's partly enclosed, partly open to the ocean, same as the caribbean is. a chinese official said to me when i mentioned that china considers it a core national interest, and this is counter to what the united states and its allies and all the other countries in the area see it, the chinese official said to me, you americans in the 19th century and in the early 20th, you recognize that the caribbean was an international waterway, but you also made it clear that you intended to dominate it. why should we chinese act any differently towards the south china sea than you americans did to the caribbean? so the south china sea is a coming issue. it's an issue that's going to be with a great future in the headlines as much as the persian gulf has had in the last few decades. let me close up with this idea that mill trair activity -- military activity is often not linnier. the vietnam war was more like the philippine war at

one is to china's government and the others to china's people. that can be described as we can get away. they put nobel peace pre when they're in j-lo. we can get away standing for human rights. the message to the people, that if u.s. may not be that sincere about human rights issues in china. and i want to emphasize that china is very practical, very rational play. china's legitimacy is performance-based. namely, the only thought of legitimate for this regime to continue its rule in china is economic growth. so we have to much impose the fear onour self, thinking that if we take a stronger position on human rights issue, that will jeopardize our economic relationship with china. why should we fear? these are the persons we should -- it is then that we should fear, you know, any jeopardizes economic relations with the u.s. and the rest of the world. because the slow economic growth will be there all t problems we have been aumulating in the past years, that will cost the government to collapse. >> thank you very much, mr. reno, for giving the tim

products to china as kind of a you know a sweetener to kind of nudge the chinese along to appreciate their currency a little bit faster do you think this is the chinese will bite i mean is this just a snow job because the u.s. doesn't have a lot of leverage here. first of all clearly more and more the chinese are in the driver's seat so there can be no doubt about that actually even independent research association based in the us in new york maybe mike it and also tell us something about it if you know them that's the conference board they recently came out is a projection of saying that china at the size of the chinese economy in real terms of physical production terms when you adjust the currency for the undervaluation of on the purchasing power basis then china may overtake the united states next year to become the number one economy and also projecting if the growth rates that we're seeing are continuing for the next nine ten years we might see china making up twenty four percent of the world economic output by two thousand and twenty and the u.s. about fifteen percent of china

they swim in the east china sea. much remains unknown about the species. >>> we'll be back with more news in 30 minutes, i'm gene otani. -- captions by vitac -- www.vitac.com

and there's a very very long so i think a lot of the preconception about china and also. wrong end of western media or taste quite a biased on those economies. are not justified you know michael it's interesting i mean again just looking at the western mainstream media you know in about the visit of the chinese president i mean in looking back at the the mid-term elections i mean blame china blame these people blame everybody americans just love to blame everybody else but they don't want to look at inside and look at themselves and to see what they have done wrong every country makes mistakes and hopefully countries have the ability to learn from their mistakes is the united states doing that because as this trip is about to happen i just see again all that really does slurs and people they simply have no idea what they're talking about. here's the problem that's being missed every economy since the stone age has been a planned economy the question is who's going to do the planning if the government doesn't plan you're still going to have a planned economy but the planni

you know the capital of china know nothing about china can you name the chinese president. yes and no i will be forgotten. the media's negative message about china is obviously reaching the viewers one in five americans think china is the biggest threat to the us and as it turns out this appears stems from a simple lack of knowledge is that your cannot read to new york. or perhaps the a lack of knowledge amongst average americans when it comes to china stems from the lack of consensus from within our media our political class on how to really categorize the country economically militarily there are power on the rise but is that a good thing or a bad thing for america while some shine a spotlight on china and its successes its clean energy sector while usa today editorialized that china's smart moves only highlight the foolishness of our own actions you also have members of congress calling hu jintao everything from a dictator to a baby killer and a big red threat so does china have everyone stopped joining to discuss it as michael barnes attorney and policy advisor for d.c.

/china relations soured l.a. last year after the obama administration decided to sell arms to taiwan. in retaliation, china suspended military exchanges with the u.s. the two countries recently agreed to resume military contact. however, differences remain between the two countries over the yuan/dollar exchange rate and how to deal with north korea. ♪ >>> year after year, china prominence has been increasing in the international community and it looks as if this year as well the country will remain in the spotlight. on the economic front, china is projected to see an annual growth rate of about 9% this year, and will continue to be a driving force behind the world economy. this will become quite clear later this month when chinese president hu jintao will visit the united states for talks with president barack obama. but domestically there is growing public discontent arising from an economic divide that is presenting a major challenge to the chinese government, which will have to work out solutions to pressing

-china initiative. let me just talk about a few of them be the flagship program here at the research center is the first of its kind, joint clean energy brings together teams of u.s. and chinese scientific engineers more than 150 of whom have come to washington, d.c. today and tomorrow and many are here in the room. thank you for your commitment to this work, a hugely important and a tremendous opportunity we believe. $150 million of public funding over five years split evenly between the two countries. the past couple of weeks it had people tell me both that's too little and too much so maybe we got it right and the initial topic areas are building, coal and vehicles. here is my roskam secretary chu with the minister at the signing of the korean energy research center agreement last year along with u.s. commerce secretary barry locke. this is in the great hall of the people. at the department of energy in the past year we release what we call a funding opportunity announcement. it's a legal american te

the south china sea. china japan and shipping. and variety of other things so this summit in a way follows on from from all of those events and it's really an opportunity for president obama and president hu to sit down and to talk about the future of the u.s. and china relationship not sort of promising anything or are offering up the hope of a major sort of did it were a little like a major communique that would that will really offer a breakthrough on some of the core disagreements but really to try to lay the groundwork for for you know for the relationship to be more predictable and to have fewer surprise us maybe to manage the tensions over the next year or two when you talk just through some of the tensions this of really dominated the friendship in recent years that both the u.s. president and asian talent said that america and china have an enormous stake in each other's success but it is the u.s. really it's in this sense of beijing and vice versa during this this is. what i think the visit the visit went quite well give

for china, if you put yourselves into china's shoes, what's the interest of china? all we need is peace abroad and the stability at home. we modernize our defense because the world is not safe. we had to prepare. that means that we are going to challenge the u.s. no, we will not do that. i don't know whether the people... whether people still remember what he say in 1974 before the u.n. assembly. you know, i was there. i was at the chinese mission to the united nations. i say china will never speak hegemony. should one day the chinese do that, i urge people around the world, i appeal to people around the world to unite and to defeat the chinese hegemony. i was in the united nations for many years. i heard many statesmen. none made such a statement. china is very serious. we'll not seek hegemony. we'll not challenge u.s. hegemony. what we want is to develop cooperation with the u.s. on the basics of equality and mutual benefits. and we did that in the past 30 years. on the chinese side, we'll keep doing that in the coming age. that was in china's best interest. >> ch

has facilitated the rise of china so china rises so much as the west allows it to rise by now that china is stronger and feels more secure they're starting to make an issue that's on the oh they're starting to try to create a consumption class within china itself to become more self-sustaining so american china has a very codependent relationship in which china finances america's debt allowing america to be militaristic around the world controlling resources america consumes chinese products which are developed cheaply benefiting both china and america so they're incredibly dependent and in terms of finance and banking they're heavily heavily integrated but there's also it's gets a frantic relationship in a sense because they're also each other's greatest competitors and this is mostly seen in the competition for global resources and this has been outlined in strategy papers in america since the early ninety's where the aim is to prevent the rise of the new power by controlling world resources. the u.s. debt holder comes under scrutiny in the kaiser report later today on r.t. as max and

and china? >> i think that some of that may be somewhat dependent on what i just discussed in terms of whether there's cooperation between these countries on different aspects of bilateral and bilateral relationship -- multilateral relationships. there are challenges and things that must be worked through. i know in order to make progress on certain issues you've seen the two countries work together despite again having differences on things like continued economic growth and human rights and i think that's -- i think that's where you see the two presidents discuss tomorrow. >> will there be joint statements? >> just at the press conference. i know there will be coverage of the oval meeting. there will be the coverage of the ceo's, and coverage obviously on the arrival -- obviously there's some weather balancing concerns we're working through for tomorrow's state arrival, but obviously the press conference and the questions tomorrow. yes? >> following up on that in terms of a joint statement. sh

. >>> china's new car sales topped 18 million units last year. the record high figure makes the china auto markers the top for the second straight year. the china association of automobile manufacturers said new car sales grew 3.2% to over 18 million unit in 2010, exceeding the figure for the u.s. market by over 6 million units. china's robust sales came as rapid economic growth boosted the income of many consumers. sales figures were helped by tax cuts and state subsidies for eco-friendly vehicles. while the tax cuts expired at the end of the year, continuing subsidies for fuel-efficient cars are attracting more buyers. industry watchers say that in 2011, china may become the first auto market to sell over 20 million new units in one year. >>> chinese exports grew more than 30% last year to a record high. the figure makes it almost certain that china will be the world's top exporter for the second straight year. f. >>> chinese customs officials say they grew to $1.58 trillion. the export volume rebounded just one year after marking the first dec

now in china clearly china is a human rights offender of course but the u.s. works with a lot of countries that are human rights offenders and so why is it that with china they tend to make this the sticking point well i think it's just for show it's just talk and you know our foreign policy really is annoying to towards human rights at all i mean look at them care about human rights duress where we supported the government there last year we don't care what he would writes in haiti where our government right now is trying to tell them who their election should be you know so i don't think and the chinese don't believe it either in fact the chinese actually put out a human rights report on the united states in response to our human rights report. and it's very interesting because in the last few years they've added a section which is called the violation of human rights in other countries where they count you know the hundreds of thousands of people killed in iraq for example as human rights violations committed by the united states and that's why i think the

and some in china worry that the united states is bent on containing china's rise and constraining china's growth, i view that is stoking a new streak of us are chinese nationalism. we reject those of use. in the 21st century, it does not make sense to apply zero-sum 19th century theories of how major powers interact. we are moving through the uncharted territory. we need new ways of understanding the shifting dynamics of the international landscape, a landscape marked by emerging centers of influence, but also by nontraditional, even non-state actors, and unprecedented challenge -- challenges and opportunity created by globalization. this is a fact that we believe is especially out of trouble to the u.s.-china relationship. our engagement, indeed, i would say our entanglement, can only be understood in the context of this new and more complicated landscape. i said when i first went to china as secretary of state early in my tenure, that there was an old chinese saying that when you're in the same boat you have to grow in the same direction. we are in the same boat. and we will either row

china's business group, lenovo, group and hire. question, china's raid surplus with the u.s. was $275 billion. so how significant, mort, is this bundle of deals yielding $45 billion? >> well it's still $45 billion, which as we see, that ain't change. it's a significant amount, but the real advantage that we are gonna have to build on is not low-cost manufacturing because we're never going to be able to compete not only with china but a whole series of companies to compete with us because they have much lower costs. we have to find a way to keep the people who have the great technological skills in our graduate schools who get to be m.a.s and ph.ds in this country. instead, we are allowing very few of them to stay. we're forcing them to go abroad, even those who want to stay. they now compete with us. in the computer industry, which was an american industry born and bred, we have 160,000 people who work here in the computer industry and 1.5 million work in asia manufacturing the goods. this is the problem that we have. we cannot compete on a price basis. >> what about the mani

firms made $50 billion in capital investments and that china -- in china." democrat glenn, good morning. caller: i want to respond to china owning so much of our debt. ben bernanke has done it two rounds of quantitative easing over the last two years. we have are the money from china, $2 trillion. how are we paying for the war in afghanistan? we are borrowing from china. they know that and they are laughing. they are looking at five years ahead and we're looking to the next election. we need to be careful, and robert gates needs to address the issue of what types of military equipment they are looking at. ge is allowing their technology to be used in china to build aircraft engines. they are going to build their own international company. this does not bode well for the united states. we need to employ our richest nation and the will to preserve democracy. communism rules china. we must be very alert about that. host: we believe that their. james mann? guest: i will make a point in general about the economic relationship. president obama is going to meet thi

it is china's war on women and girls. i say to president obama, any discussion of women's rights, indeed any discussion of human rights would be a complete charade if the one-child policy is not front and center in that discussion. it does not matter whether you are pro-choice or pro-life on this issue. no one supports forced abortion because it's not a choice. rather, the chinese forced abortion policy is systemic, institutionalized violence against women. the chinese communist party says that this is none of our business. it's just their internal affair. this argument is a smoke screen. first of all, the chinese communist party has signed several international treaties, and it is violating them by forced abortion, forced sterilization and infant shied second, one-child policy has given rise to gendercide and here's a big column that appeared in the paper, where are 100 million baby girls? because of sex selective abortion, there are now currently an estimated 37 million more men in china than women. and that in turn is

-china relationship is one of our rivals. china's latest leap forward is in education. students scored stunning results on international tests topping the world in math and reading. america was languishing more than 20 places below in each category. the education secretary said it was a wake-up call. do you like learning chinese? >> >> what do you work at the -- what do you speak at home? >> english and chinese. ♪ >> the path to excellence starts very early. they began their immersion at the age of five. his father is chinese but mother is american. >> the way their economy is going we think it is important her chinese is well and full academic chinese. >> you are preparing her for the future. this part of california -- north carolina has high expectations. america seems much less willing to embrace china outside. then in the 1980's there was the fear japan might double up corporate america. -- goggle up corporate america. the vexing factor is they have become a capitalist superstar. two hours west in the blue ridge mountains we come across this plate that was once th

to china. china now has great responsibility to do its share in the world in many different fields, and expo 2010 in shanghai was the beginning of china's contribution to the world, as well as the world's contribution to china. that's the great legacy. >> religion and ethnicity influence everything. this year a special economic zone was set up and a new communist took the helm. he came with a new set of policies that set the course for the western region for years to come. >> mountainous plains, asian land, traditional architecture, and a simple life are the pillars of kashgar's center. now the sprauling sprawling city is embracing progress and moving forward into a brand new era. something new does happen here with great changes. kashgar has become a pearl in western china. much of this change has been driven by a range of government policies to boost development of the region that were drafted in may where kashgar was nominated for the newest economic development. the city was given state-lev

not just our toys in the bag we made in china. but the image and everything else culture coming from china. or others china elicits feelings of inferiority according to the pew research center forty seven percent of americans think china is the world's leading economic power only thirty one percent think america. that's certainly the opinion among students at millinocket school in maine which will welcome paying chinese students to close its budget gap next year i think the chinese are going to be total shock i think about high tech in a way more advanced than us but ten times more money alike and a better society and then you look at eisenhower like whore and nothing as hu jintao towards the u.s. capitol american officials are eager to quell fears about what a rising china could mean for the world's only superpower still some analysts say that the united states should be focusing on what it can learn from china rather than merely containing it china knows how to develop they're doing it we are expanding boring and consuming rathe

to china. because china now has great responsibility to do its share in the world in many different fields and expo 2010 shanghai was the beginning of china's contribution to the world, as well as the world's contribution to china. that's the great legacy. ♪ >> religion and ethnicity influence everything. and the central leadership always take that into account. this year a especially economic zone was set up and a new communist official took the helm of the western region. he came with a new set of policies that set the course for the rest of the region for years to come. >> mountainous plains, asian land, traditional architecture and a simple life are the pillars of this cri culture. now the sprawling cities are embracing progress and moving forward into its brand new era. something new does happen here with new changes. it has evolved to become a pearl in western china with an impressive past and bright future. much of this change has been driven by a range of government policies to boost

and china? >> i think some of that may be somewhat dependent on what i just discussed in terms of their art -- there is cooperation between these countries on different aspects of bilateral and multilateral relationships; there are challenges. there are benefits and there are things that must be worked through. so i know that in order to make progress on certain issues, you've seen the two countries work together, despite, again, continuing to have differences on things like continued economic growth and human rights. and i think that's what you will see the president -- the two presidents discussed tomorrow. >> and will there be any joint statement after the statement? >> just a press conference, and will be coverage of the oval meeting, there will be a coverage of the ceos and there will be coverage obviously -- well, obviously the arrival, some sort of -- obviously there's some water balancing concerns that we are working for for tomorrows staff the rival -- but obviously the press conference

look at china today? we hear president obama referring to china's recognize. but we also hear people talking about aner secure china. how do you see it? >> well, you know, china did recover first from the global financial crisis and because of that, many news stories say china's more assertive now because it's got this new confidence. but actually internally there's a tremendous insecurity that its leaders feel because they see domestic threats everywhere. they're very worried that a communist party cannot continue to rule this very dynamic and open market economy. so they react, sometimes they're hyperresponsive to public opinion, as in the case of anti-foreign nationalism. and they now... there's a public demand for a tougher rhetorical stance toward the united states, toward china's neighbors. and i think that's what this new assertiveness is in part all about. >> brown: minxin pei, what would you add to that? how should we look at china today? >> well, i essentially agree with susan's assessment. china really behaves like somebody with a split personality.

in terms of cooperation within china and india, china should be praised. in general, if you ask me to give a score, i would give china between four and 5. >> would you give that score as well? we're seeing some confidence when it comes to the territory between china and her neighboring countries in asia and the peace in the korean peninsula has been challenged. china has a role to play as a mediator. what do you think? >> there is a split between economics and politics. if you look at the economics, i agree with the professor that china has done well in the last couple of years, trying to meet the expectations that as as the second-largest economy. -- tha tit has -- that it has as the second-largest economy. it is going to take a while -- a country pushed on to the world stage does not automatically come out as well as it will. we can praise china on the economic side. politically, we hope that china will do better as a becomes accustomed to its new role in the world. >> you are doing very well on our show. let's go to another question regarding relations

the most obvious example is china. how concerned are you that state capitalism, with its political linkage as well, is a real threat to the stability of the democracy and market economics elsewhere. >> well we know you can have capitalism without democracies, and in my last book democracy's good name i had the privilege of discussing with you the venue, on explore the relationship between the two. so the fact that china is capitalist and economically successful without being space is nothing new. i would note that state capitalism is after all a form of capitalism. it just involves a larger role for the state. it is on one part of the spectrum which goes all the way to the united states where the role of the state is much less important, but they're still part of the same family of economic systems. so that's one point. the second point i would make is that china has done very well with its state capitalist model, but we can't be sure, and the chinese cannot be sure that it will continue to do well. in fact, many stude

china business council's john frisbie says companies around the world have protested. >> china is choosing the path that says they want to use government procurement preferences to determine winners and losers, and they want to do that in a way that might be skewed against foreign companies. >> reporter: china agreed to eliminate a requirement that foreign companies move their intellectual property to china in order to win a spot on the approved list. and it's put the entire policy on hold for now. at the peterson institute for international economics, analyst nicholas lardy says steps like that are encouraging signs that china will use it's clout carefully. >> in some ways, they are playing by the rules. for example, they accepted the w.t.o. settlement process. when they lose cases in the w.t.o, they come into compliance. and in certain respects, a stronger, more buoyant china is in our interests. >> reporter: as hu heads into his meetings with president obama, eswar prasad argues the u.s. finds itself on the defensive, another sign of china's growing economic stature. >> it's very diffic