the china money report and collins welcome back to the kaiser report. thanks max going to be bad all right dan collins' economist magazine says the u.s. china relations well defined global politics and twenty thirteen where do you think the relations are going hare well yeah i saw that piece. pretty much agree with that but i think go subplot to the piece that was really about china japan turns over two thousand and thirteen two thousand and twelve we saw massive changes here in china you know not far from where i live here earlier was a panasonic factory burned down as of thousands of chinese hit the street although not on a second dan hold on a second what he said that a panasonic factory was burnt down i don't see that the news what's going on there . oh i'm actually going to try to marry border ordered. yeah the battery was burned down here in studio a little suburb of shanghai a little so over twelve million people. there's a japanese three year the entire japanese restaurant store with all of the windows broken oh i mean it was really bad and it w

oh max you haven't checked out of china motor report or are boarded up. yeah there's a battery was burned down here in studio a little suburb of shanghai here little sort of people. there's a japanese three year the entire japanese restaurant store a lot of the windows broken oh i mean it was really bad and it was a day with reported in the major media about the protests but i don't think outside china people really under and how bad it really was i mean he had there were many reports of even local chinese people here be dragged out of their japanese cars and beaten and that's what's led to seventy percent decline in japanese personal china and they're not coming back when we have a currency war as some describe it it looks like it's heating up to a ground war a hot war and especially with this china japan conflict which is seems to be ask a lady and japan of course is got a new leader and they have committed themselves to crunching and crashing and destroying their currency the yen as an attempt to export their way back into fiscal and monetary and econo

yeah this is the the china ad story is really interesting issue it's not getting too much press but china has basically replaced the west in africa they have built so many hydro power projects a lot of rail if you ask anybody in africa leadership or african themselves africa themselves they are very happy with what's going on with the china african relationship the synergy synergies there are so good you know africa has resources china needs resources ever been needs consumer products but they need sewer products it chinese price points not western price points so chinese consumer goods are huge you know a hit into africa so the synergies of their china import export bank is now funding african projects to the tune of twice what the world bank is so basically in effect a few weeks ago african leaders warner to the west that you're on the verge of being marginalized completely in africa i think this is what might be triggering these potential troop. deployments in africa is that we have no other of card to play here our factors are gone we don't make anything anymore no one in africa wants

you have more people now living in the citizen china than living in the countryside it's guilt. it's beginning to have problems of workforce in some places it's got huge massive corruption and you've got hu jintao who just left the presidency of the country who left with two point seven billion dollars which he acquired god knows how and and you got this tease in various regional places which all you do held by the communist party of people who are making huge fortunes at that level for their own families so what i'm saying is that i'm not sure that the growth of china is still going to go on like that and i also think the ruling party in china has got the major problem that they do not know how to take a decision so they bounce back a decision from regional local to regional to national level and something. new also is loved back to them and the whole country is sort of teacher ing happening with the proceeds from foreign trade and they know perfectly well that if the economies in the west good your ability down you know they're going to be less trade in already the growth figu

but now china is slowing and is struggling to make a profit. >> the slowdown in china's economy means there is too much

china is financing it. it will cost around $94 million. last summer chinese authorities announced that over the next three years, they will spend $20 billion on all the projects. that's double what they spent over the past three years. >> translator: we can't leave everything up to the government. we need to work with the private and nonprofit sectors to expand this program as much as possible. >> reporter: japan's strategy benefits japanese companies. this man works for a motorcycle maker that installs the water purification system. they're working to cut the african market because jica provided research costs and they're able to keep the company's costs down. furthermore, he can build a collection with a local which is a big benefit. his company has viewed this service to promote they're strategy. they hope this will result in more bike sales. >> translator: we want to use japanese government programs infe effectively. i think it's best for everyone. it's a win-win situation, really. >> translator: japan's smaller companies have fine tec

sea china and japan are vying for paul in the disputed territory and it's drawing. that are quickly coming to the forefront of the race that's got more on the matter though with all that added to the age a pan base news website that's a call that the drugs are in cheap and acquiring fleets of them will cost an arm and a leg up both nations ready for the expense of this potential arms race i think they are preparing to to be ready to commit more more resources to the military expenditures and they're getting ready to do that even as we speak and i think we see really the start of a new normal here in east asia as unfortunately i think tension military tensions are going to lead to increasing military expenditures on both sides and we already see that with japan coming out this week announcing the defense ministry announcing an extra one hundred billion yen in spending for the two thousand and thirteen budget for the defense ministry and still japan is only spending about one percent of its g.d.p. on defense so there's a lot of room for growth and i think that's exact

the officials also agree to continue patrols in the south china sea where china is engaged in similar island disputes with the philippines, vietnam and other countries. >>> japanese officials say more than ten chinese planes, including military aircraft, approached japan's air defense identification zone over the east china sea on thursday. aircraft flying inside the zone are required to notify japanese authorities of their flight plans. some of the planes entered the zone, prompting the scrambling of air force defense force fighter jets. the which i needs planes left the zone without entering airspace. >>> eric schmidt has called on north korea to allow its citizens to use the internet and connect with the outside world. schmidt spoke to reporters in beijing on thursday after a four-day visit to pyongyang with bill richardson. he said their visit was private. but he pointed out that the internet access in the north is limited to government, military and university officials. >> the government has to do something. they have to make it possible for people to use the internet, which the

do his students buy his china story? >> there is a bubble so that's >> reporter: consider the coming catastrophe of the one-child policy. >> the social security programs and how the government is sort of going to fund this aging population. >> reporter: of course, not everyone at yale believes that china's headed for a fall. >> if you're looking for a crash landing in china, a slowdown that really puts the economy and its supply chain through the windshield. it's not going to happen. >> reporter: steven roach, longtime economist for the morgan stanley investment bank, spent ten years in china. he teaches several courses on the chinese economy at yale. >> look, china is a high growth and the fast pace focused on exports and investment deliver beyond anyone's wildest expectations including the chinese. >> reporter: but a slowdown doesn't sound the death knell for growth, says roach, just a very deliberate shifting of the gears. look at the latest five-year plan, enacted in 2011. >> it's redirecting the mix of economic grow

tends to support china. as an example, in the same senkaku dispute, it calls on taiwan to cooperate with china encountering japan. as for coverage of the protests in china over newspaper cens censorsh censorship, it's not extensive. earlier this month taiwanese demonstrators lobbied in central taip taipei, protesting against censorship by chinese interests. it was organized by largest opposition bloc, the progressive party. members want taiwan to have a separate identity from china. some protesters carried a banner stating the group must go. about 90,000 people protested. many expressed concern about the future of taiwan's media. >> translator: there should be no media monopoly. it restricts diversity of opinion. >> translator: we have to be wary of china's ambitions for our economy and freedom of speech. i find that reprehensible. >> reporter: and the president says taiwan is improving with economic ties with mainland china. this is evident in the tourism business. last year over 2 million chinese travelers

it is a symbol of china's growing naval ambitions. all of this is making china's neighbors nervous. some of them are turning to washington for support. what is clear is that the south china sea will be one of the main theaters where chinese and american interests abroad up against each other. some are worried about american intentions in these waters. it does not like washington butting into what it considers its own backyard. >> we will be watching that more closely. he is at a naval base in san diego having just returned to a trip from the pacific. how urgent do they think this is? >> and an interesting point there. martin was talking about the chinese aircraft carrier. the u.s. actually has nine. they did have 11. one is being decommissioned and the other is being repaired. it takes a very long time to build those aircraft carriers, years. the u.s. is keeping a close eye on china. 60% of the navy assets would be deployed to the pacific by 2020. that is a shift from 50% at the moment. the navy destroyer is returning home from a seven-month deployment. the crew were talking about h

. >> well, let me start just a little before that, namely with my birth which was in china of missionary parents, so in a way you can almost say that this book was in my jeans because here i was in your toured in a christian home but we were the only westerners in the town and all of my contacts with china east and of course their religions were around me and a lot of folk religion, so one can say that this might be seen as the blossoming of the way that i came in to the world. >> what part of china? >> inland, rural, 70 miles from shanghai. >> what time period are we talking about? >> you know, being chinese in my formation, we look on age as honor, so i'm proud to say that i was born 76 years ago i'm 76 years convenientable. >> and who i long did you grow up in china. >> i was 17 when i came to this country. >> so that's formative. let's talk a little bit about the impact of the modern world on the traditional chinese religious systems when you were growing up. did you see the challenges to those religious systems at that time or was it too early? >> no, we were -- well, it was too ear

a hostile relationship with china. when we return, i'll give you my own memo to the president. >>> we've heard from senior isurprise...it's eating less. to losing weight. i'm hungry just thinking about it. thank goodness for new slimful. one delicious, 90-calorie slimful and a glass of water, like before dinner, helps keep me satisfied for hours. so instead of this much, i only need this much. and slimful tastso good... i don't even miss dessert. slimful and a glass of water... eating less is a beautiful thing. >>> we've heard from senior statesmen and women on what president obama needs to do to have a successful second term. and a successful legacy. here are some of my own thoughts. most presidents get just a couple of lines in history. >> we face common difficulties. >> fdr revived the country after the great depression and one world war ii. >> its purpose is not to punish. >> lyndon johnson created the great society. >> and escalated the war in vietnam. the first line of president obama's legacy has already been wr

about china's growing military progress. well that's an interesting question because i think what we can see here with this strategy of the shift towards the asia pacific and then suddenly this report saying that now the u.s. arms contractors are going to be gaining billions of dollars in contracts from this shift what we can see is really just a return to a very old imperial strategy to building a bogeyman in order to then create the sales to to combat those boogeymen so it's a very old strategy it was identified by name by president eisenhower in his farewell address in one nine hundred sixty when he talked about the military industrial complex and we here we are half a century later with the exact same strategy at play and before it was the communists then there was the terrorist threat and now there's china and that threat so i don't know if it's a question of a real existential threat that china is posing here so much as a chance for contractors associated with the u.s. government to make billions of dollars that you me

quarrel with china? stay tuned. the boys use capital one venture miles for their annual football trip. that's double miles you can actually use. tragically, their buddy got sacked by blackouts. but it's our tradition! that's roughing the card holder. but with the capital one venture card you get double miles you can actually use. [ cheering ] any flight, anytime. the scoreboard doesn't lie. what's in your wallet? hut! i have me on my fantasy team. >>> the middle east is in turmoil. israelis and palestinians bear fresh wounds from the recent conflict in gaza. iran continues to play games with the world regarding its nuclear ambitions. and the arab spring continues to reverberate. in some good ways, for sure. but also, in some troubling ways. and, the civil war in syria becomes a bigger human taryn becomes a bigger humanitarian crisis by the day. that's a lot of problems in just one region. here to give us his take is jimmy carter's national security adviser. what should president obama do with syria as it continues i

: hong kong is unique in china. it's different from other provinces. i hope it keeps the spirit of democracy and judicial independence. >> leung took office last july, but residents have criticized him for a series of controversies. some say he misled them about illegal renovations of his home. others don't like when he tried to introduce compulsory patriotism classes in schools. the new leader of the china communist party met with liu wen last month in a show of support, but many favor a show of democracy for hong kong. the chief executive is chosen by an election committee made up of 1,200 members. >>> kim jong un has delivered the first new year's speech by a north korean leader in 19 years. he said the country should put a priority on healing the rift with south korea. state-run korean central television broadcast kim's speech for more than 20 minutes. >> translator: what's important is to solve the confrontation between the two koreas. south korea should scrap its anti-north policies and take steps toward recon

in the east china sea. japan controls the territory but china and taiwan claims it. he said china and japan differ on the matter and it's important to resolve tissue through dialogue. he said facing up to history will lead to a better future. some experts on japan/china relations say the chinese leaders comments are too vague. we spoke with a professor to teaches international relations in kyoto. >> translator: the chinese government hopes that japan will head in the same direction as china and take meaningful steps to restore and improve bilateral ties. >>> some experts on japan-china relations say the chinese leader's comments are too vague. >>> the letter described the two countries as having one of the most important bilateral relationships. he said that he wrote he hopes to promote strategic ties that benefit both sides. he described his talks as an important meeting. he said xi clarified the direction the two countries should take to ensure a prosperous future. >> translator: the chinese government ho

of course, china is a hot topic. actually, this is, i think, the most important and critical period of time in chinese history. we do look forward to our new generation of state leaders can move this country forward to be more open, democratic, and giving people more choices and opportunities. >> but now you do read mixed messages all the time, so sometimes i'm confused myself. >> do you think that we will see a more open china? >> i think so. >> someone was telling me about the equivalent of twitter, that's a social media in china. is that making a difference? >> definitely. i think technology is providing the largest public arena for honoring chinese people to give them a voice. so i think, you know, when people are talking about where china will go, i think there's only one sensible orientation, which is to be more open and democratic. >> now, you have how many follow followers? >> i have 45 million. i try to -- try to make some good changes. >> people comment about social media allowing people to let off steam. i

including china. the politburo in china promised economic reform. recent data hinted at a pickup in growth. but do these factors equal a positive investment case for china? economists have been divided. >> we're going to see a decent recovery in china. -- 8.6% for this year, not as strong as it was prefinancial crisis, but doing a lot better. that compares with 7.8% last year. anyone who's connected with china's going to do well which includes many of the countries which are linked to china in asia. >> there's a clear roadmap for economic and reform in china. that's the five-year plan that was promulgated over a year ago. the question, will the new leadership put this into practice. if it does, there's every reason for, it not just short term but medium-term optimism. >> it will be difficult for us to continue to have that double digit growth rates for good reasons. the world economy is slowing down, and in -- domestically, consumption is not up to the level that is satisfactory for us to achieve those levels. >> views on china. maria, of course, wi

is no purely private media in china. chinese media are influenced by the government to a certain extent. however, it is incorrect to judge that all chinese media are pro-government. we never pick up either government or public opinions. we are trying to find a well-balanced denominator based on various opinions from any field. >> hu says staff at "the global times" listen carefully to public opinion. they exchange views with readers using the chinese social networking site wabo. he says his readers often disagree with his newspaper's reports. >> translator: people can now openly express their opinions in china. our daily and other newspapers tend to pick up more public opinion. i believe the chinese political leaders won't be able to determine diplomatic policies by themselves once they listen to civilian voices. china's diplomacy must reflect what the people think. if japan makes provocative statements or actions, anti-japanese public opinion will also affect chinese policies on japan. >> hu and staff at "the global tim

in the east china sea. japan controls the territory but china and taiwan claims it. he said china and japan differ on the matter and it's important to resolve tissue through dialogue. he said facing up to history will lead to a better future. some experts on japan/china relations say the chinese leaders comments are too vague. we spoke with a professor to teaches international relations in kyoto. >> translator: the chinese government hopes that japan will head in the same direction as china and take meaningful steps to restore and improve bilateral ties. >>> some experts on japan-china relations say the chinese le leader's comments are too vague. we spoke to a man who teaches international relations in kyoto. >> it's too ambiguous what they have in mind. if they stop sending ships or aircraft to our territory, probably it should be a good sign. but it doesn't say that specifically in such an ambiguous statement. we need more better environment to be able to talk more frankly, but the point is that this will

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china says almost the ebb tire south china sea is its territory. the philippines counters that chioma's claim violates its sovereignty. the philippines has said repeatedly it wanted the dispute brought bv the tribunal. even so the challenge looks unlikely to go far. china's ambassador to the philippines, ma keqing, has issued a statement saying the dispute should be resolved through bilateral dialogue. authorities in beijing have repeatedly refused to accept arbitration based on the u.s. convention on the law of the sea. >>> one month has passed since a shocking gang rape in india revived a national debate about sexual violence. a group of men attacked and raped a 23-year-old woman on a bus in the indian capital new delhi. she was taken to singapore fortreatment but died from her wounds. police arrested six men for alleged involvement in the crime. they have been charged with murder and sexual assault. five of the six were taken to court on monday to enter their pleas. defense lawyers raised the possibility that one of those five is a minor. the he

this country isn't hopeless especially compared to china. while we're suck funyon dust and going broke it seems like china has it all, a growing economy and so many pandas they have been forced to a two panda policy. from now on in china, this is true, only two pandas per family. the place is just ripe with (bleep) pandas. guess what? the grass isn't always greener. >> in china, hazardous record high pollution levels in beijing have prompted an orange fog warning. >> jon: this brings us to the new segment things may be bad but at least we can't chew our air. unemployment is not coming down, the economy is stagnant. let me stop you right there. >> just being outside can make eyes itch and throats burn. >> one expert told me it's becoming an instant motor vehicler. >> jon: s oh, my god, a billion instant smokers. how many marlboro miles could they get? think of china as a wheezing smoker. >> are you expected to talk. >> jon: so, mr. bond, i expect you to -- brb clearing throat] i [clearing throat] [ laughter ] where were we, mr. bond? sorry. [

to territorial disputes in the south china and east china seas. >> we remain optimistic about china around the united states to manage change in the region but it brings with it strategic competition as china's global interests expand. >> gillard called for the peaceful resolution of disagreements through dialogue using forums such as the east asia summit. she said australia would work closely other countries to help solve problems through diplomacy. >>> afghan security forces will take the lead in their own country. repeated insider attacks have damaged trust w suspicions rising on both sides, military come plaerpsd sending soldiers back to school for a some lessons in cultural tolerance. >> we should know the heroes we honor today will not have died in vain. amen. >> reporter: some 440 soldiers died last year in afghanistan. 61 were victims of insider attacks. that's about 30 times the number five years ago. rising anti-u.s. sentiment in afghanistan is partly to blame. angry afghans took to the streets last february after burning of copies of the koran by u.s. military personnel.

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and regarding china, china economic trend is another big concern. but, we think china has already achieved soft landing. >> so he's optimistic about those risk factors and he expects the nikkei to hit 13,000 by this time next year. so we'll keep you updated on the markets as we move into 2013. >>> for most investors this is also the last trading day in currencies in tokyo. the dollar continues to gain strength against the yen. $buying intensified during the day sending the u.s. currency above the 76 yen level. dollar changed hands at its highest levels in two years and five months. it's now nearly ten yen higher than at the beginning of this year. the yen has been losing strength since october. that's because the market speculation, the bank of japan would take further monetary easing measures. the yen came under pressure against the euro on friday, the currency rose to the 114 yen level. that's more than 14 yen higher than when the year started. analysts predict the yen's decline is likely to continue for some time. investors are now focusing their

is china trying? are the leaders trying to make it a rich country that we mains less free? >> the government is trying to do that. in fact, with the global recession they argue that the chinese people might be better. t you have the government themselves are pretty insecure and part of the reason why they are trying to tighten the control is because they feel vulnerable. they know the sosh protests that urban residents and workers and what's interesting about this is that this is so far china's middle-class. educated, wealthy and as one would expect they want to have the right to know. it matters to them. not just freedom of speech. so that's part of what we'll see. essentially you touch off on this but i think it's wider than what we see. it's harder to organize but clearly there's evidence there is widespread sympathy for the southern weekly. >> suarez: because, james, isn't china trying to modernize? trying to expose its people to the world and is there something con from tra tra dicktory about at the same time trying to control the web whichs one of thse door way you op

china turning around. united states stabilizing. 2013 could be a dramatically better year for joy global than 2012. >> it could be a better year. i caution about how quick the turn around is going to occur. customers have i think grown very cautious about journalling the gun. we've seen them do that several times before. 2008, they cut too quickly. 2011, they ramp back up maybe too quick until retrospect. much more cautious, much more methodical. upside in our business. one of the things we've dub that he , we cut the cycles down. today it takes us five months to manufacture a shovel, down from 15 months. our response time is quicker than it was a couple of years ago. we'll see an improvement in the order rate. people willment to see more sustainability in the trends we're seeing out of china before they begin to submit large-scale investments on new mine expansion. by the second half, we'll start to see that kind of groechlt. >> thaw, mike. stuck your neck out. china hard landing, called the bottom. great

well that's not the i don't believe that china is in tension i think china has. been. asking japan to recognize and negotiate rather than rushing ratcheting up the tension of course japan and inviting electing is not going to help because he's very well known ha och in this particular situation i think the saddest part is that the jat japanese people most of the japanese people truly do not understand and understand that they were be. the perpetrators of all atrocious acts of war two and these are the reasons you know instead the japanese government has been very successful in portraying japan as the victim of war two rather than the perpetrator of all of the aggressor being the aggressor and the u.s. for its own strategic reason you view japan as to prefer an ally and that's what's called contin agree this friction but i'm not sure that i think cooler heads will will come and not go to war over these little specks of violence certainly china has never been. the aggressor in terms of in terms of these disputes perceval from subject george through founder and former man

he sees massive potential in china's huge market. >> translator: if japan detached itself from china, its economy would falter. that would be bad. and it would be the same for china, too. i don't think the anti-japanese sentiments are a hurdle that can't be overcome. >> reporter: last year he opened a food processing plant in shanghai. it supplies preparing ingredients for restaurants in china. his aim is to provide backup service until the companies established themselves. he gets many visits from managers of japanese companies who are planning to open branches in china. they are confident that their secret recipes will be secure with him. >> translator: it's not easy to find a company with facilities like this. on many levels this really helps and supports our business. >> reporter: hygiene and safety are major concerns for japanese companies entering the chinese market. he sometimes takes clients aren't markets to help them understand their ingredients better. >> translator: taking on the chinese market, the hurdles are high and hard. but i think the challenge is worth it. >> repor

he sees massive potential in china's huge market. >> translator: if japan detached itself from china, its economy would falter. that would be bad. and it would be the same for china, too. i don't think the anti-japanese sentiments are a hurdle that can't be overcome. >> reporter: last year he opened a food processing plant in shanghai. it supplies preparing ingredients for restaurants in china. his aim is to provide backup service until the companies established themselves. he gets many visits from managers of japanese companies who are planning to open branches in china. they are confident that their secret recipes will be secure with him. >> translator: it's not easy to find a company with facilities like this. on many levels this really helps and supports our business. >> reporter: hygiene and safety are major concerns for japanese companies entering the chinese market. he sometimes takes clients aren't markets to help them understand their ingredients better. >> translator: taking on the chinese market, the hurdles are high and hard. but i think the challenge is worth it. >> repor

that china is asking the u.n. convention to basically sustained the philippines as the sole beneficiary of this area around its 200 nautical miles shoreline. >> more clashes and more protests. why is it becoming contentious these days? >> this is just one of the issues chine is having to deal with. there is a water claim on many areas. you mention some islands in japan. there are islands that said in the middle of the south china sea. these sit in what seemed to be reached and abundant maritime areas. there is a lot of fish to be had and a lot of natural gas reserves believed to be sitting under the seabed in those areas. there is international trade that cuts across these waters. it is a matter of freedom of navigation. many of these countries do not want china to be in sole control of these trade routes. >> troops have retaken two seven shall towns in their fight in the north and now back in ands,.handn h >> the rebels fled on sunday leaving the troops to retake the town. >> it is reassuring with the help of the

china and taiwan claim them. if current leaders do not have the wisdomo solve the problem they shod leave the debate to future generations. japanese and chinese should learn more about each other through culture and economic changes. financial analysts are looking into the future and projecting the big picture from the year ahead. what are analysts saying about japan? >> we just heard from those at the imf yesterday. now we're hearing from the japanese government. officials there project that the country's economy will grow 2.5% in the coming fiscal year. that's due to stimulus measures and a global economic recovery. a large scale economic package will push up the gross domestic product. they forecast a moderate global economic recovery will lift corporate sentiment and boost spending on plant and equipment. the officials expect people will rush toake more purchases including things like houses before a plant consumption tax hike in april 2014. the government has concluded that the economy will expand 5 2.5% in

as china boomed, so did his business. but china is slowing and they are struggling to make a profit. slowdown means it is too much iron and steel being produced. they are being told to cut production and not allowed to cut large numbers of jobs to save money. >> the dilemma. a giant state firms dominate parts of the economy. many are inefficient. where will new jobs come from? >> is like winter for the steel industry. to get through, we need to reform and diversify. >> despite problems, the city is one of the fastest-growing parts of china. the relentless drive to urbanize has reached in the inland cities. leaders of this building spree can't go on forever. the economy needs reform. to replace the old ways and encouraging spotless new industries. and what it now craves. they make screens for mobile phones. what china wants its future to look like. >> in the past, china succeeded by producing on a massive scale. low-quality, but low cost. we're losing that advantage and we have got to change. >> the new leaders want to see

." >>> people living in parts of china know the air they've struggled to breathe lately has been bad, even hazardous. now, chinese authorities have enhanced their system to give citizens a better idea of just how bad things are and how they should do to respond. they've created a higher smog alert to track the serious air pollution that plagues the country. the amount of fine particulate matter in the air has been high the last month across inland china. an increasing number of chinese are suffering from respiratory problems, so national meteorological center officials decided to add a third level to their two-level smog alert. the highest warning now advises people to stay indoors. >> translator: i can't stand it anymore. i want to leave this place. >> translator: it's the worst i've ever seen. the regime of old is gone forever. >> people have also turned to the chinese social networking site weibow to complain. some blame the government growth policies for causing the polution. others have expressed themselves in song. ♪ ♪ ♪ >> china's air pollution is believed to be making it

china produces and uses half of the world's supply. stupid is used to generate electricity -- most of it is used to generate electricity. consumption shot up by almost 10% in a year. this place has been called china's most polluted town. it is a dirty, grimy business -- >> it is a dirty, grimy business. consumption has tripled in little over a decade. with demand still rising, there is little time to waste in china's coal capital. it falls on the shoulders of these men to keep china's economic engine on track. in norma's, coal-fired power plants dominate the skyline ,ere -- in norma's -- enormous coal-fired power plants dominate the skyline here. the coal trucks are filling up every minute. it will be burned to produce electricity. increasingly, it is coming at a huge cost. china burns almost as much coal as the rest of the world combined. the cities are choking on hazardous smoke. many in beijing say this winter's pollution has been the worst they can remember. >> we have to change our ways. the pollution caused by coal is simply to -

. >> and china. now we add another 21% of world gdp, the united states, which is under 2% growth and, you know, if we don't resolve some of the debt ceiling and some of the spending cuts and get into some of the fiscal order that you were talking about, you're going to have that weight on it. and even though you proposed a lot of hope with japan in terms of some of the political leadership, they are still at negative growth with 7%. >> exactly. >> with so now you're up to 50% or so of world gdp that is a drag on the economy. how do you look at, you know, the broadest sense of contagion as it relates to emerging market growth and developing country growth with 50% of world gdp possibly in that situationsome. >> well, i think the trade figures tell it all, whether you agree with the figure on growth or not, i think the trade figures show what's happening. and there's no doubt picking one of the countries you've mentioned, china. i mean, china for the last 20 years has been double-digit growth. last yea

china mobile is the largest telecom company in china. apple does not have a relationship with them right mow. because of that, people are hoping that he and the company who, of course, has other executives, will be able to somehow broker some sort of deal, if not on this trip, at some point this year in order to get access to the 700 million people and people are saying, this is going to be an amazing catalyst for the stock. >> yeah. we'll have to see how they do it. eunice, thanks for this for now. sales are going up in china, but their market share is slipping from four to six. it's before the latest phone large. why are they losing market share? what do they need to do? >> it's great to be here, ross. apple has doubled sales in 2012. they hit about 22 billion in sales in 2012. china has become their second largest market. but apple is underperforming the market share. they've dropped from fourth to six in smartphones in the last year. it's come down to this. they've doubled their number of stores to only eight in china which is only o

china and taiwan claim it. defense ministery spokespersons say 160 scramble missions were ordered against chinese planes during the nine-month period through december. that's compared to 156 during a 12-month period through last march. the scrambles increased sharply after japan nationalized the senkaku islands in september. about 57% of them happened from october to december. china's information gathering military planes have been increasingly active around the islands, which are in the east china sea. the country's state oceanic administration is also dispatching aircraft and surveillance vessels to the area. >>> japanese prosecutors have questioned two former executives of tokyo electric power company about the 2011 nuclear accident at the fukushima daiichi power plant. sources told nhk that the two are tepco's former chairman and ex-president. prosecutors are believed to have asked them to explain what plans tepco made to protect against a massive earthquake and tsunami such as the one which hit the plant i