the china money report dan collins welcome back to the kaiser report. thanks max going to be back 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 this piece. pretty much agree with that but i think go subplot to the piece that was really about china japan turns out for 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 and 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 moderate border are boarded up. yeah the battery was burned down here in studio a little suburb of shanghai here little solar twelve million people. there's a japanese three year the entire japanese restaurant store a lot of the windows broken oh i mean it was really

oh i'm actually on a jet go to china mary border are boarded up. yeah the 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 with all of the windows broken oh i mean it was really bad and it was only 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 you 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 a 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 late inning 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

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

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

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

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

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

." >>> 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 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

that you seem to be because china itself has got massive problems it has just tipped. the scales where you have more people now living in the citizen china than living in the countryside it's cult. it's beginning to have problems of workforce in some places it's got to 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 the answer noel says lot back to them and the whole country is sort of teacher ing happening with the proceeds from foreign trade and they know perfectly well th

for china and for the chinese, the new administration, if you like, in china. how they want to see that happen. it's not about getting 2013 growth to be fantastic. it's to get the next 20 years of growth to be fantastic and sustainable and not create any bubbles in the way that we saw in response to the financial crisis. bubbles are created there. >> so here is the big question. is china growing too quickly? are policymakers potentially going to lean against this? >> i guess you have to start looking back at the property sector and looking at inflation all the time. if you start to see signs that these things are beginning to merge up particularly higher, then yeah, i guess that probably is the risk. our own house forecast is stronger growth than you mentioned. we've got 9% for 2013. >> 9%? >> which is pretty goy. >> that's extraordinary. 9%. >> we're growing at 2% quarter on quarter. it will get you there nicely. >> maybe that's why because, you know, if you look at the australia dollar today selling off, maybe there's a sense in markets that, in fact, with gr

support china. as an example, in the senkaku dispute it calls on taiwan to cooperate with china in countering japan. as for coverage of the protests in china over newspaper censorship, it's not extensive. earlier this month taiwanese demonstrators rallied in central taipei. they were protesting against growing concentration of media ownership by pro-chinese interests. the event was organized by the largest opposition bloc, the democratic progressive party. its members want taiwan to have a separate identity from china. some protesters carried a banner stating wang wang group must go. police said 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: under the president taiwan is improving its economic ties with mainland china. this is evident in the

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

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. >> 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 not be built in a day. mutual trust, we need something of mutual trust to discuss more details of the relationship. so probably we should continue exchanging some words of goodwill, this kind of words of goodwill so that we can eventually lessen the psychological barriers of difficulties we might have between the two

tackling markets like china. you may not have the same type of consumer that you do over here in the united states that's willing to pay several hundred dollars for a phone, especially if you believe what jon fortt is saying where he's saying they may not be willing to pay the kind of subsidies that folks have gotten used to here in the states. >> china mobile has something to gain for a deal because iphone subscribers are known to be the most valuable for a telecom so, you know, china mobile risks some consumers in china flocking to, you know, the other carriers that carry the iphone. >> well, if we see no deal, let's say apple fails to win a deal, what would that mean for competitors? i mean, how important is this given the fact that so many technology companies are betting on this enormous population in china and throughout asia? >> it would be a huge loss for apple. i mean, they are already seeing subscriber share for the iphone in china go down to companies like samsung and lenovo so this would be a pretty b

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

but now china is slowing and is struggling to make a profit. >> the slowdown in china's economy means there is too much iron and steel being produced. they have been told to cut production, but it is not allowed to cut large numbers of jobs to save money. >> it is china's allow, giant state firms still dominating -- it is china's dilemma. giant state firms still dominates the economy. where will the jobs come from? >> it is like deep winter for the whole industry. it may last another five years. to get through, we need to reform and diversify. >> despite the problems at its biggest employer, this city is one of the fastest-growing parts of china china's relentless drive to organize has reached these cities. it seems this is a construction site. the chinese know about this building spree cannot go on forever. to replace the grimy old ways, they are encouraging spotless new industry. innovation and high technology. and out what the city craves. here, they make screens for mobile phones. the hires go and higher-paying jobs. what china's future looks like. >> in china is producing on a ma

he's planning policies to expand china's defense capabilities. other plans to scrap defense guidelines endorsed by the former government in 2010. ministry officials have constructed a budget fiscal plan for 2013. they are looking for rise of about 100 billion yen or about $1.1 billion. leaders expected to use part of the funds to increase surveillance around the songuku islands in the east china sea. chinese government ships have repeatedly entered japanese waters since japan's government private owner last september. abe's cabinet members will consider increasing the number of personnel in the south defense forces. >>> the pentagon announced a $1.2 billion deal to sell spy planes to seoul. an editorial in the newspaper criticized the plan to sell four unmanned global hawks. the drones can fly nonstop for more than 24 hours. they can identify objects the size of a golf ball from an altitude of 20,000 meters. the editorial says the u.s. is advancing a reckless and hostile policy. it says north korea attends to stand up to the aggression. the u.s.

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. >>t's directingthe mixf economic growth away

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

china and taiwan claim the senkaku islands. china's state media discussed maritime policies. the head of the state oceanic administration said his office will assume greater responsibility for maintaining the country's maritime interests. the participants decided to order regular patrols around the islands they call dalew. japan nationalized them in september. china has been sending ships to the area ever since. china's long-time territorial disputes with other countries. the chief cabinet secretary said japan cannot accept china's decision. the islands are inherently japanese territory. he says that's been shown through history and international law. he said the government will continue air and sea surveillance to protect areas around the islands. japan maintains an air defense idtificaon zonoverhe east china sea just outside the air space. aircraft are required to notify the authorities if they plan to fly inside the zone. defense officials say at least ten chinese military approached the area on thursday. some of the planes entered the zone but they didn't fly into japanes

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 choes 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. is

china has that much leverage on the u.s. at all and president obama claims washington is making progress in beating back the effects of the financial downturn and what will it take for the u.s. to reach and maybe even surpass its own pre-crisis economic level. well i think the number one is really for the hosting market to recover which has already dallas's last jews and the how home prices. back to back to the two thousand and six level but is the high as. is three or four years already the other one is really forty and the employment rate to four bad two to six percent level which is still has some way to go is still. use the u.s. government has to put at least two million more americans to work to really claim victory over d. finally show tsunami once and how are the latest events in the u.s. all this talk of fiscal cliffs affecting the global economy. well of course if the u.s. government could not reach a deal to avoid the fiscal cliff it would take something like two percent of the u.s. economy and it will affect. but

a hostile relationship with china. when we return, i'll give you my own memo to the president. cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. ya. alright, another one just like that. right in the old bucket. good toss! see that's much better! that was good. you had your shoulder pointed, you kept your eyes on your target. let's do it again -- watch me. just like that one... [ male announcer ] the durability of the volkswagen passat. pass down something he will be grateful for. that's the power of german engineering. ♪ back to you. i wish my patients could see what i see. ♪ that over time, having high cholesterol and any of these risk factors can put

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

-china relations. former state department official, donald gross, argues that kerry brings much needed improvement, and gordon chang, author of "the coming collapse of china" says that relationship comes with risk. they join us now. gordon, i want to start with you, you do not think that our relationship with china is the main focus right now, and that if john kerry is secretary of state, he's not even the right guy for the relationship. why? >> well, i just got back from new dellly -- new delhi, and they are concerned about that because he's pro-islam bad. the united states has to neuroture the relationships with japan, south korea, and india. india will be the most populated nation in the world in 15 years, and only stable relationships with democracies is all we can count on in the long run. cheryl: donald, what about the economic relationship with china? there's many companies, individuals, i mean, we got a lot of businesses crossing the seas now with the country. don't we need the relationship to

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

: 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

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china and taiwan claim them. if current leaders do not have the wisdom to solve the problem they should 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 to make 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.