china also claims the territory. the chairman of the association of the promotional of international trade responded he said the country ares an important part for asia and the rest of the world. they will attend a dinner party hosted by the chairman of the china-japan friendship association. they exchange $340 billion of goods and service every year, but they frequently disagree over territory and history. >> japanese prime minister traveled to beijing in september of 1972 for talks with chinese premier. their discussions paved the way for the normalization of ties. six years later, the chinese leader announced a dramatic shift in policy. china began accepting foreign investments and moved towards a market-oriented economy. japan began sending aid and loaned over the years. the japanese prime minister had inflamed tensions after he took office in 2001 with annual business to the shrine in tokyo that honored the war dead and war criminals. china's economy grew year after year. members of the olympic committee undersc

changed the debate is asked you to be more active and this time record of china's position china's policy toward their regional affairs more support more gas have to go to all parties concerned and other issues that china and russia are commonly worried about is of course the american anti-missile defense system we are hearing about the united nations united states plans to actually feel it's an early warning radar in south japan and at the same time russia is increasingly worried about the united states plans to enhance. it's missile defense capabilities in europe do you think that china and russia could maybe come up with a joint reaction to this plan or each country should deal with that. yeah i'm sure this is the question to your foreign minister rather china and russia to join together to establish our. missile defense system. he didn't give me a direct answer maybe a lot of obstacles on the way for china and russia to call parade in this regard for them political obstacles and the technical people is i don't think at this moment that two countries measure to raise. preferred to shar

we need china as a trade partner. we don't want a trade war with china. we're very dependent on their economy and they're dependent on our economy. mitt romney has invested in china, has family trusts invested in china. both sides have done this here. if you want to call it hypocrisy, call it hypocrisy, but nobody is clean here. >> david: by the way, steve, it's not just china, $2.8 billion in department of energy money went to a spanish firm that did solar stuff. this is not just china. we're outsourcing a lot of money overseas. >> two points, david. romney, what he does it's vol temporary. when the government does, it's taking our resources and playing politics with it. it's about trade barrier, stealing our intellectual property rights, what both candidates should be focused on, not this thing about who invests more in china. >> david: if it's private money, may it go where it will. private investors are free to do with their money, but not my money, not my tax dollars. >> i have no allergic relax to governor romney investing in china, if that's what h

china sea. japan controls the senkakus, china and taiwan claim them. the japanese and chinese vice foreign ministers have met to find a breakthrough, but they could not narrow their differences. japanese vice foreign minister chikao kawai and his chinese counterpart zhang zhijun met for four hours at the foreign ministry in beijing. kawai explained the background and consequence of japan's purchase of the islands. >> translator: we have exchanged our views on the situation frankly. we managed to agree that the two countries should continue talks to resolve their differences. >> the chinese foreign ministry released that said the purchase of the islands hurt the 1.3 billion chinese. a spokesperson quoted him directly. >> translator: japan should reflect deeply on its actions and correct past mistakes. then it should get bilateral ties back on the right track as soon as possible. >> japanese chief cabinet secretary osama fujimura said government officials are trying to resolve the dispute through

government is owed to china. china is the single largest foreign holder of u.s. debt, over $1.1 trillion as of july. as we continue our look at the u.s. debt, tonight we examine whether or not china's massive holdings give it leverage over the u.s. darren gersh reports from washington d.c. >> reporter: when the u.s. was preparing a $5 billion deal to sell arms to taiwan last year, a chinese columnist at the influential people's daily fired a warning shot: it was time for china to use it's "financial weapon" to teach the u.s.a. a lesson. since then, the pentagon and other security analysts have come to think of the threat china will use its trillion dollar plus portfolio of treasury bonds to punish the u.s. as something of a bluff. >> it's always out there as a possibility, but i think the weight of the evidence, particularly from economists has been that it's not a credible threat. that the cost to them would probably be larger than the cost to us. >> reporter: inside china, there are conflicting views of beijing's role as banker to the united states government.

what about china's government? >> reporter: hu jintao wants to strengthen economic relations with russia. china's economy is slowing down due to europe's credit crisis. russia's far east has great potential, both as a supplier of natural resources to chinese businesses, and as a market for their products. chinese officials underscored the need to cooperate with russia. >> translator: russia has accelerated development in the far east and eastern siberia. this development could also benefit neighboring nations, including china. >> reporter: i have attended several press briefings held by apec's delegations. many speak of the need to strengthen trade relations with china. the influence of chinese economy in the region is growing tremendously. this includes the border area between china and russia. suifenhe is a small town on china's border with russia. there are signs in russian everywhere, and the streets are so full of russian people, it looks as if it could be in russia. every year around 500,000 people visit from

head and desalinization right now it's china china waited to exactly the right point they waited till you really cannot get lower in terms of energy in order to desalinate water lower and you need energy. four years ago you may have needed three times as much energy as you need today that's just a figure but now you've gotten down so that you really cannot improve reduce the amount of energy needed now china's full scale there are whole hawg into desalinization they're selling the freshwater for that they get out of the ocean for fifty cents on the dollar they're going to do the same thing in desalinization as they did in solar undercut everybody and learn how to produce it at a cheaper and cheaper rate and be able to use it for their own economy america has to wake up these are the issues talk about water talk about food don't just you don't want conventions which everybody is practicing oratorial skills i think americans are sick of that at this point and you know that could be one of the he says gold is up but the real reason gold is up is because the jig is up. that people know th

what about china's government? >> reporter: hu jintao wants to strengthen economic relations with russia. china's economy is slowing down, due to europe's credit crisis. russia's far east has great potential, both as a supplier of natural resources to chinese businesses, and as a market for their products. chinese officials underscored the need to cooperate with russia. >> translator: russia has accelerated development in the far east and eastern siberia. this development could also benefit neighboring nations, including china. >> reporter: i have attended several press briefings held by apec's delegations. many speak of the need to strengthen trade relations with china. the influence of chinese economy in the region is growing tremendously. this includes the border area between china and russia. suifenhe is a small town on china's border with russia. there are signs in russian everywhere, and the streets are so full of russian people, it looks as if it could be in russia. every year around 500,000 people visit fro

that was the lifeline that fed china town. over the years our business community has been slowly dying. we are no longer as relevant as we were culturally or businesswise. with this project, it is like opening a new arterial. and for a heart patient with stuck arteries, this is life-giving. please approve it. we thank you. >> thank you. >> i'm cynthia jo. i want to speak before the planning commission on this conditional use. i am a member of presbyterian khur frp at 925 china town. we are not pink. we are beige. we are in support of the conditional use for this subway station. the presbyterian khur inch china town has always supported causes beneficial to our community. in fact, we sponsored the presbyterian church as sponsor, sacramento and stockton streets, just two blocks from the church. after 30 years, this coming sunday, september 16th, i invite you to attend our 30th anniversary of the housing project, which is a low-income senior multifamily and commercial use for nonprofit use. so we will be honoring 35 of the origin

imposing unfair trade tariffs on imports from china. the trade organization says china claims a wide range of products are affected including kitchen appliances, steel, tires and chemical products. it's seen as a retaliatory measure against the u.s. >>> time to take a quick look at our global economic calendar for this week. financial markets are watching to see if it will ease its grip on correct. japan's bankrupt i recall will be listed. jal will be returning to the market two years and seven months after trading and its shares were halts. u.s. housing starts for august are due out on wednesday. new housing construction in july fell short of market expectations totaling 746,000 units. the trade balance posted its first deficit in two months in july. finally, also on thursday we'll find the latest on china ease industrial activity when the hsbc pmi comes out. it sank to its lowest level in 41 months due to slowing. that's all for me for now. i'll leave you with the market figures. >>> japanese minister has presented the country's new e

the united states wants to focus its policy on china which means going ten men to china so any improvement in relations between china and india would not be welcomed in washington however for the region absolutely it's good news because china and india are the biggest two most populous countries in the world there are regional superpowers. china in the pacific and saw their share and india are insulted so any reduction in improvements or improvement in their relationship would be ready to welcome for the whole us all they share in the pacific and i must say better the time when the western economies are suffering . and therefore. the government or china and india as the industry party have started to up to but i do want to get this last question as we are short on time now some experts say that there is a shift of power in the world from the west to the east is this new partnership another sign of that shift to be added to the economic partnership of the brics countries. well i was going to say that the economies all of china and india will increasingly depend on each other. and therefore

because of china's actions recently and they are concerned that china will continue to try to intimidate them to so the u.s. obviously is bound by treaty to defend certain nations japan south korea the philippines etc so on the one hand the u.s. is is trying to maintain a neutral position on the sovereignty of the who owns which rock in the ocean issue but we also obviously have different relationships with the nations in the area we're certainly bound by treaty to some of them and if push comes to shove then we are allies as in which you wish certainly we are not with china but we're also trying to maintain all these little sovereignty she has the heart of the issue as collating is something far greater let me play marco had john mccain marco hadn't really is whether. a forward united states' position for united states military position on this and other conflicts in the region is the best way to move from the period we're now in mutual shouting of nationalism of surge of territorial conflicts whether a more fruitful approach is one in which the nations involved in these territorial dis

for china. then finally, i'm going talk about some of the big contemporary questions for china per se. some of the recent items that have been in the news. the trend of u.s. chinese relations and what we can expect for those after the president issue election and the change of power in china. so that is the plan. first about the background of the book, second about the themings of china that i found myself discovering over the last six years and tried to laid out and. china in the larger sense. what we don't know. and what we know. the don't know being an important part. that's the agenda. the reason i ended up writing this book is that when my wife and i first arrived in china, about six years ago, beginning what was a three-plus year unseen incident at that time in several return visits going back again in about ten days. is that -- i found myself looking through magazine articles and other sorts of reports radio and other ways trying to convey some of the things that were most different about

china in. it it's not washington or tokyo or someone you know he's very strange that you're member of the chinese leadership and if these are japan the next time. ryan you want to jump in there the u.s. and. i think it's going on and i think what's going on here and i think it's quite clear that it's quite clear that japan and the united states are long time military allies that they have a joint economic project japan is something of a junior partner to the united states in the region and globally and it has been such since one thousand nine hundred five i think that what's happening is that china is being denied access to the sea it is being denied systematically and through new provocations this one being the latest access to resources that china considers to be necessary for its development i believe that if the united states were not a major factor in the calculations going on in the middle east the countries of the region would actually find a negotiated settlement i think the united stat

russian trade relations with china so well what's your impression well i think russia china trade this expected to grow very dramatically so the figures are you know it's going to grow about five times america five to seven years so definitely there's a huge potential you know to benefit from growth of china and i think russia just is always focused on its own views and then on some issues you know it's has a closer position to china on some issues has a closer position to the u.s. but i think we have very much focused on bringing basters from both you know u.s. and china in kuwait and other places of the world and i think you know politics needs to play a role but right now investors are so much focused on gross that we can actually bring investors from different countries of the world not thinking too much about politics when you said that the russian trade with china in the growth five times in five years years you're talking about biological trade or you're talking about russia's trade to china whether to alter ego or to both i mean since it's so so so is such a figure that will br

soybeans are 60% of -- is sold to china. one-third of u.s. cotton is sold to china. china is also an important market for u.s. automobiles and aircraft. china also is in long-term market for u.s. service industry. in this area, the u.s. has done a long time service. at the same time, the chinese want to prepare -- entrepreneurs are interested in making investments in the united states so there are more and more chinese companies coming to the united states and investments. according to chinese statistics, for the last 18 months, the chinese investment in the united states grew by 18-40% -- by 14%. it is up to $6 billion. the investment is still a small figure. it is growing very fast. today, our common interests have expanded and interdependence has been deepened. now, as the impact of the financial crisis still lingers, both china and the united states have committed to transforming their economic growth. their economic growth models by increasing input in some new areas like new energy, high- tech, high end manufacturing, i.t., bioscience, etc. these could translat

china too will suffer even more. their gdp numbers will go down and we too will flirt with a sub2% growth level then. at this point it will be that much of a drag. at least a good half to maybe a full percentage point you off if this were po persist for several months. >> susie: all right, we'll see how it plays out. john, thanks a lot. john kilduff of again capital. s >> susie: the battle between chicago teachers and mayor rahm emanuel moved from the picket line to the courtroom today. the mayor and the chicago school system asked the court to end the strike, calling it "illegal". in illinois, strikes are only permitted if they relate to wages and benefits, but the school system argues the teachers are focused on other issues like layoffs and class sizes. a judge is scheduled to decide whether to end the strike on wednesday morning, but the chicago teachers union could end it as soon as tomorrow, if it passes the latest contract proposal. the strike started last monday.. and affects almost 350,000 students. today is

this is china's. under obama, we've lost over half a million manufacturing jobs and for the first time, china is beating us, seven times obama could have stopped china's cheating. seven times he refused. >> it's time to stand up to the cheaters and make sure we protect jobs for the american people. >> paul: so, mary, let's first talk about the merits of the obama trade sanction or against china for subsidizing its automobile industry. fair? >> yeah, isn't it terrible, paul, that chinese citizens are subsidizing cheaper automobiles for millions and millions of american consumers, which is what neither would acknowledge. look, it may be a compare complaint. that's what the wto is there to do. >> world trade organization. >> is it arbitrate these complaints, but the problem is the obama administration has politicized this process as we saw today or with the announcement, and made that announcement in ohio. the administration has been politicizing trade since 2009 when they launched their first case again

in china. so the slowdown overall is not bad in the long term. it has to happen because of the structural problems of overinvestment in china, overreliance on trade and a microstructure that china has to readjust its corporate structure in order to pay workers higher salaries. it's a lot going on. >> i wonder what the issue is surrounding the fact that china has been the engine of economic growth for the world. a slowdown there has ramifications all over the world. ann you say china's slowdown is great for the u.s. because it allows the u.s. to manufacture products, take more of the manufacturing from china. do you think that's really going to happen? >> well, absolutely. because china's labor wages have been growing at double digits for the last few years. and its middle class is growing rapidly. it's going to make manufacturing in the u.s. more competitive. and that's what americans want is to have manufacturing come back to the u.s. and with china's growing middle class, their consumption is

as china town trip. it is a grassroots organization of community stakeholders committed to improving transit service and safety in china town through planning, research, education and advocacy. the organization has been involved in a community for over 30 years and has pushed for many efforts from the promotion of pedestrian visibility to larger projects such as the scramble system. we know the stockton corridor is one of the most populous and dense streets in the city. i think improving this conditional use for this is another step towards accommodating for people who visit and live in china town. on behalf of china town trip, we are happy to see this project move forward and would like to extend china town's trip knowledge and experience to the community to he will the city with the commensurate planning process to determine the opportunities that the community residents and visitors are looking for as this project comes into fruition. so thank you for your time and your committed service. >> thank you

the united states wants to focus its policy on china which means containment of china so any improvement in relations between china and india would not be welcomed in washington however for the beating that summer it's good news for the economies of china and india will increasingly depend on each other and therefore the rest of the brics countries. which is a need in minding economic law cause i think it is good news that china and india can improve their lives with their friends increased trade at a time when when the economies of the west are suffering. the growing financial clout of asian countries on the global implications that it could have is also the focus of peter the bell's debate with his guests and cross talk it's showing here in about twenty five minutes but now a quick preview. of the asia pacific economic cooperation regional to what degree is the global economy now centered in the east and so are we living in the pacific century and if we are what is it really me. and other fly in the point meant for russian british relations london has apparently followed in washington'

china have its own green? can there be a china dream that's different from the american dream? because if the china dream is the same as the american dream-- a big house in the suburbs and a big car-- they're going to burn up, choke up, heat up, and smoke up the planet far faster than al gore predicts. >> rose: we conclude with prince turki al-faisal, former head of saudi intelligence, ambassador to the united states and other countries >> and throughout these 80 some years that we have had our kingdom, everybody keeps talking about an uncertain future for the kingdom and because of the sagacity of the people of saudi arabia and the good will of the leadership and the government we have survived pretty well so far we have many problems to face, including syria. many challenges internally among the young people and how the go about the courses of development not just economically but socially and politically and the role of women, etc. all of these are tremendous challenges that are being debated within the kin

of one side and china will deal there. now in georgia the present abuse scandal has now led to a group of opposition activists going on a hunger strike they want the release of several arrests of colleagues who were among the thousands protesting that's after the video shut the lights on that's what for and rape of a night spy jail guards to ministers have set down over the stand over the parsons who placed prison staff with police officers but that once writers say that's not enough and are calling for the prosecution of everyone responsible for the. revelation comes days before parliamentary elections the government's popularizing already called like our citizen going to school off has altered his house. the public is in fact shocked and angry that the comparing the footage shown forging for those with learn from guantanamo except. suspected terrorists was here we're talking about george and me another factor irritating the public right now is the recent arrest of one of the peacekeeping force just think you've got to be

his former boss is one of china's most foul were full politicians. earlier this year his police chief sought refuge at the u.s. consulate and officials an extraordinary story, alleging that his wife had murdered his british business partner. before the unauthorized visit, he had been accused -- for the unauthorized visit, he is accused of trying to defect. he could, in theory, have been given the death penalty. but he has been shown some leniency. had he not blown the whistle, it is likely the crime would never have come to life. as a result, his wife was eventually convicted of poisoned. her husband waits to hear if you will face a criminal court and has been suspended from his seat. he was once tipped for an even higher position when the communist party appoints new leadership later this year. it has altered the chinese political landscape, raise questions about corruption at the highest level, unsettling what was meant to be a smooth transition. >> british and u.s. soldiers balance against insurgents use -- wearing u.s. army uniforms. this was ins

has with china but of course china is also very dependent on the u.s. is it not it is and that's why i don't i don't really for see that tensions would lead to something more serious although you could never tell you know the problem with tensions is that right now there's a build up the military forces on both sides and. anytime that exists there's always the potential for someone to make a dumb mistake and that i think is is my concern right now but the fact is that china and the u.s. are absolute dependent upon you know you talked about a quarter welcome from the chinese authorities that's a quarter from the media but what about the fact the chinese vice president was expected to meet in re clinton then for some unexplained reason the meeting was called off was that a snob or how could that be seen oh i'm sure it was a snub i mean i don't think to try to do anything by accident and i think that you know right now there's a division in china just as there is in the united states and there's a kind of a nationalist wing in china which is pushing for mo

china is losing trust in america and the u.s. dollar and by manifesting that loss of trust they are buying gold and gold prices are going higher people are losing looking at gold and they're and they're saying well that's the proxy of the distrust of the dollar china's aggressively moving me ask you this because you're so plugged into what's happening in washington and wall street you've got to be like the insiders insider it. is china going to make a surprise announcement that they have accumulated suddenly another one or two thousand tons of gold that nobody is on anyone's radar data inside information with us you can share with us in the global audience well i think we can look at experience because they did this before in two thousand and nine charges official reserves were about proximately six hundred tons they came out one day and said you know what we actually have an additional five hundred tons so they got a little over a thousand tons just short of eleven hundred tons a total well they didn't acquire that gold overnigh

china's economy is one tenth the size of america and europe and japan one kid china. as you pointed out it's got a lot of money it's got a lot of savings yes but even if they do fantastic jobs they cannot bail out america europe and japan which are more than ten times bigger than china no matter what a good job they do how they're going to save the rest i mean trying to has become an engine of growth but it cannot bell out the rest of the world that's quite correct it's not it's not yet at the china lectured all the time about what it should do with its economy there is there is a tendency in western media to always lecture the chinese i suppose because of the american election cycle in the world in the euro zone ok i wouldn't say that the future of the western media but i think that yeah i mean if there's a political component to it that the western media reports but but it is it is also true that. the the argument about the imbalances that exist in china between an investment driven economy versus a consumption driven economy are very very real and legitimate indeed

the united states wants to focus its policy on china which means going ten men to china so any improvement in relations between china and india would not be welcome in washington however for that the timid summer it's good news that the economies of china and india will increasingly depend on each other and therefore good that the rest of the brics countries. which is a need reminding economic bloc. i think it is good news that china and india can improve their lives and increased trade and at a time when when the economies of the west are suffering. but during the financial clout of asian countries and the global implications that it could have there's also the focus of peter viles debate with his guests in cross talk and showing next hour is a quick preview. on the eve of the meeting of the pacific economic cooperation regional to what degree is the global economy now centered in the east and so are we living in the pacific century if we are which is really me. media reports have suggested that the u.k. has failed to freeze some of the assets of top officials there is gyptian leader hosn

i mean we're having rolling blackouts across india china i mean china we haven't you know between seven point two and seven point five percent growth i was talking to a construction bank of china and they said that that feels like an absolute recession thank you imagine it's seven it's a great recession a great i mean seven a half percent is just i mean our profit friends in western europe would die for that so yes seven and a half percent but it feels very very bad and that's not is not a great thing erica so rusher in comparison is doing now we've had a slowdown but where if you know would run for four percent you can still see that the consumer spending here in russia no and i think it ben you pointed out earlier i mean we want to know when you have a dozen. so the employment in moscow is at an all time low all time five point two percent. of the economy is running at full capacity and. russia has basically you know the several fives we're looking at about five percent inflation we're looking about five percent unemployment that we were looking at five percent growth maybe four perce

there was praise from the e use side for china and praise from china for the east side, but then, as has already been made clear, suddenly, the chinese decided to get a bit negative and the live transmission was turned off. diplomatically, the eu said he was getting into the substance of the negotiation, but it was the chinese who insisted on that happening. there is a sense that the summit has been sort of run by the chinese. there was not even a final press conference because the chinese wanted a list of which journalists would be there. the european commission had to say that was just not on. there was no press conference of any sort. smiles and backslapping on trade and the economy, and yet, this underlying sense that the chinese are dictating the way the meeting is going on, and, of course, they are in a way dictating the way the economy is going in some form. >> back in china, the government trying to calm public anger against japan by banning public demonstrations. >> tensions erupted recently when japan bought a few islands in east china sea from a private owner. >> japan and

. >> his story is in china's story. he has lived through hardship and famine. his parents died of starvation. he is now 79. life expectancy here now rivals west.westhe china has not built a comprehensive system of pension and old age care. they fend for themselves. their children all far away looking for work. >> i never thought what would happen when i am old. i don't know where my kids are. i guess i will die and no one will know been been >> it is a lonely fate that many here now face. there will be more retired people in china then the entire population of western europe. this is where the young people have come, to its factories where the labor force has driven their economic growth been big as the number of elderly is rising, china's birthrate has collapsed. it will soon be just two people to pay for every one person's pension today. >> the burden is going to be heavy. our parents are going to get old. we will have to support them and pay for our child education. >> it has seemed unstoppable. that may be about to

china. back to our question, the video of governor romney that was put out yesterday on mother jones magazine. the governor responded to it last night. what do you think the impact is on campaign 2012? david is a republican in salisbury, maryland. you are on the air. caller: people are living illegally off the government's. governor romney told the truth. think that he insinuated all the people live on the government or are doing it illegally or unfairly. i had co-workers who were not married, who were working and making as much money as i was. they were getting food stamps and subsidized housing and wherever else they could get. there were living a lot better than i was. people make a living from living. off the living host: here's the new york post with this story yesterday about democratic congresswoman -- deborah is a democrat in richmond, virginia. caller: good morning. people look at this and act like they are shocked. romney has shown how insensitive he is. just last week he did not e

and japan the rao is now hurting japanese exports as the anti japanese protests and china made some of them hold their production at their chinese factories now onto the currency market there the euro is retreating against the u.s. dollar and the russian bull is shedding value to the current sea basket and crude russia's made export commodity is mixed this hour the still retreating after the biggest drop in about a week on monday brands at the moment is in the positive territory. and while the rich get richer. the not so rich get poorer and that's according to the latest reports by wealthy ex about finds russian millionaires are shedding some of their wealth the number of people with more than thirty million dollars in assets has declined to russia's now now britain eight europe's rich list one position lower than a year ago over the past year ten percent fewer people have at least thirty million dollars topping the list is germany with more than fifteen thousand millionaires whose total wealth tops two trillion dollars. well that's impressive that's more money than you can imagine