china relations. it's a steppingstone to china. choosing to join the tpp because this deeply integrated asia-pacific economy will be a very attractive way to promote economic growth and welfare more generally. look ahead to the future of the regional economy. it's a big question. the demographics are cooked for the next few decades. they are going to be tending to pull down the growth rate, particularly on the asian side of the pacific. as i said, the u.s. has an aging issue, but it will continue to have labor force growth and the u.s. through immigration policy can influence that. the u.s. could have even more labor force growth and has built into current projections. so the u.s. has advantages. but integration across the pacific will be hugely beneficial for both sides. i hope it will encourage us to pursue the structural reforms which we need and are good in and of themselves. it would definitely encourage all the different economies. >> thank you. >> the first three speakers have raised a lot of issues. before we make it genera

that's rise of china. china rising. in particular rise of china as an emergence, as a maritime power in this region. now, you might say it is challenging in the asia-pacific region, but even if you deny that, there's no question that china is trying to carve out a greater role and influence in this region. you might call that grand strate strategy. this is a very significant development because if you look at it, if you look at the new silk road vision, it does represent a massive loop linking three continents with china playing a central role within this loop as provider of goods, information, as well as infrastructure. roads, railroads, so forth. what is the end game for china? the expansion of the economic interaction eventually spilling over into cultural and political sector to create a cultural economic bloc where china plays a leading role. and china wants, i believe, korea to be out of this bloc. and herein lies the dilemma for south korea. we are very much entrenched in the old order, but there is this new orde

how the south china sea safe guarding china's rise were not just undermining china's foreign policy principle. i think it is a bigger test. second is one way china could, for example, confirm the chinese claim while alsot

the one thing i know about china is that i will never know china. it's too big, too old, too diverse, too deep. there's simply not enough time. ♪ >> that's for me, the joy of china. facing a learning curve that impossibly steep. the certain knowledge that even if i dedicated my life to learning about china i'd die mostly ignorant. that's exciting. it's too much and it's changing so fast. ♪ ♪ >> china has a population of around 1.3 billion and a number of them who are joining an explosive middle class demanding their share of all that good stuff, infrastructure, the clothe, the cars, the gas to fuel them is, well, it's the engine that might well drive the whole world. ♪ ♪ ♪ >> you like chinese food? >> very much, yes. >> what do you want? >> of course, yes, some good dumplings. >> professor xiao ling is the economist and the current dean at shanghai jao dong university. like so many people you meet here, he's chinese, but was educated in american universities and has taught at yale, duke and arizona state. >> so you forgive me, economics

china will want to play a role. what do i do with respect to my ongoing relationship with pakistan which we will be key to any outcome with the taliban and india will have to factor in. you look at the players, you look at the traditional prospects for trouble in that region of the world over hundreds and hundreds of years, and there is huge opening for the united states and china to work collaboratively on issues of stability and economic prosperity and security, and i'm glad you pointed out because i think when people say well, what can the united states and china do, it's a perfect example. the world will be better off because of it. >> do you think there's anybody right now thinking about that? >> yep. i mean, we have had more and more dialogue with the chinese about afghanistan. the administration is done a good job on that. and our guests.out there is a real opportunity. one thing that has been interesting is how the forces of shape china's previous behavior. for example, they have largely focused on commercia

>> china's central bank, the people's bank of china, they presented them as a technical move. real interest rates were too high, they said and that is because inflation rates were low. well, guess what? the decline in factory prices that we have seen in november has already more than offset the impacts of the rate cuts. the businesses are now facing higher real by-line -- real borrowing costs. that underlines why the central bank felt it was important to move. if we see inflation continuing, that is going to start raising expectations of more cuts in interest rates coming in 2015. >> what does this mean for the chinese currency which at one point yesterday at its biggest interday moves since december 2008? are a variety of reasons why people are now shifting their expectations on the currency. on the past, it was about how much the yuan was going to appreciate. now we are seeing analysts shifting expectations towards the appreciation -- depre ciation. there is a huge trade surplus which is a substantial undervaluation which is not a big factor as it was. it partly reflects low

that's apparently a good thing for china. i think we need to analyze whether taiwan's pro-mainland stance is really to blame for the defeat this time. >> reporter: a researcher close to the government says taiwanese became frus trited with i stagnate economy and said this was a cause of the nationalist party's defeat. >> translator: mainland china is the second biggest economy in the world and important for taiwan. everyone is eager to deepen economic ties with the mainland. no matter how much economic growth taiwan achieves, there is a need for it to emerge into the regional economy. cooperation with china is a must if taiwan is to take part in the global economy. >> reporter: with the outcome of the local elections bringing about a shift in taiwan's policy toward china, leaders in beijing are watching developments in taiwan closely. nhk world, beijing. >>> people around the world are celebrating international volunteer day. a japanese man is marking the occasion by turning chocolate into hope. he's using it to help underpri

the second factor is the rise of china. the rise of china. china is in the middle of the rise and china is both a developing country and a developed country. a weak country and strong country. a poor country and rich country. an ordinary power and a non-ordinary power in some ways. and as a result, the chinese are confused in terms of how to define their interest and let alone to carry out to the coherent foreign policy. so when china sends out conflicting signals, the u.s. gets confused. the u.s. wants to know what the chinese really want. what the chinese are really up to. but the problem is the chinese don't know so americans can't find out. now the americans adopt a policy and of course china -- when chinese look at the united states adopting a hacking policy they adopt their own version of the policy. so as a result, the interaction between china and u.s. can easily get into a negative cycle. and of course, on top of this, we have the domestic politics problem. in china you have rising nationalism and suddenly people realize china is not

/china relations. term like responsible stakeholders, g2, and amazing consensus have optimized the moral action of it role of china. on the other hand, china has recently suggested a new model of major power relations as an effort to define her own vision of new world order based on the spirit of coordination instead of confrontation. the details of this new model are not laid out in full, but we must note that the concept is useful in this season of fresh new outlook for international relations and global governance. having china as a moral participator in the action. when we take a closer look at northeast asia, however, we start to notice that the region faces some major challenges despite enjoying unprecedented prosperity and economic clout. for example, korea and japan face unprecedented tensions between remarkable economic coupling with china, and military alliance with the united states. another feature is the volatile north korean region. despite numerous efforts to denuclearize the korean peni

and china and the u.s. and china and north korea. what do we think likely happened? inthese attacks originated china. sources have been telling media organizations the tax did not originate in north korea. if they started in china, that would be consistent about what we know. we don't have enough evidence to say 100%. what we do know is these attacks were routed through chinese ip addresses and that means china had to know what was going on because china has a great firewall, the most sophisticated set of internet controls. they know everything that goes out and comes back and we know of the sony attacks, the north koreans took at least 100 terabytes of documents. clearly the chinese knew what was going on inside the borders. it is amazing the infrastructure north korea has put together. , from a former hacker, who worked in china, said that the facilities north korea has cobbled together are all over the world, not just in china, also in the uae, and in germany. or five different countries. most of them are in the people's republic of china, including the luxury hot

now it's china's turn. just look at the period from richard nixon historic visit to the normalization of relations 35 years ago, to china's secession to the wto, to the achievements of sunnylands, to become pashtuns of president obama's visit in beijing just last month. for decades, yet states have supported china's peaceful rise. we abort to avoid strategic rivalries and to narrow and at a minimum to manage our differences. but china's rise is by no means the only significant development in the region. the entire asia pacific is changing. india is not just looking east. india is now acting east. asean is becoming more integrated. intimations democracy is flourishing. burma's reformers are pushing ahead. america's rebalance is continuing and our alliances are modernizing more stronger, growing more capable. this is all to the good. but the shifting regional dynamics generate tensions as well. tensions that pose potentially serious risks to stability and prosperity to all of us. let me ask, is the constructi

we have a one china policy. we have a one china policy based on our three joint communiquÉs. we also have important unofficial regulations with taiwan and enough regard, our policy is guided i not only to one china policy, but the taiwan relations act. in that context, we remain committed to helping to ensure that taiwan retains the ability to prevent coercion and defend itself and that is a commitment that we take very seriously. it is an ongoing effort. that said, the significant progress that the world has witnessed over the last five years, dialogue and cross streets agreement is something that we all value. so our policy and our goals and matt enhancing the stability across the street in the region. the quality of the dialogue that we maintain with the mainland, the quality between the defense establishment and the pla for example and particularly the quality of dialogue between our leaders is a critical element in ensuring and on that basis i am confident that the u.s. and prc will continue on a very steady path. >> on behalf of everyone, all of us are deeply appreciati

inside china. and a lot of people, they can't get the cutting-edge technology, which we don't teach in college at all. so the human resource problem and the manpower problem is more and more -- getting more and more serious here in china. >> because everyone's going to the silicon valley? >> they offer better. obviously. oh, here are the -- >> these are the famous ribs? >> yes. >> maybe the number one thing that the seriously food-crazed traveler coming back from shanghai will tell you to eat other than the soup dumplings, of course? zeran paigu. or simply, cumin ribs. ♪ it takes two cooks working at once to make this dish. one deep fries the ribs in hot oil until just right. another toasts the ginger, cumin and other spices in a wok. and then in go the ribs. and if you are a devotee of what's called wok-hei, you sit as close to the kitchen as possible to capture that elusive fast-dissipating breath flavor of the wok itself. toss them around, coating those bones with all that good stuff, then ser

china and the u.s. probably should alleviate those concerns over its relationship with the of the country, you know, whether it's china or the u.s., don't push too hard. and china and south korea probably should try to alleviate washington's concern over the nuclear threats in north korea, and also attempt to minimize the role of the u.s., allegedly, the efforts to minimize the role of the u.s. in the region. so if we try to be innovative and pragmatic and cautious at the same time, i think the relationship should be less bad, if not much better. thank you. >> thank you for your presentation on time. if i could give my personal comment on your argument on a a.i.d. come you argued there might be some pressure from the u.s. side. i don't know if the u.s. side pressures on our shoulders, but if i am correct, the biggest problem is that china wants to take 50% shareholders based on -- a little higher than normal gdp per capita. if china takes 50% of shareholders, kobe has some difficulties. so that is my in

china has got to be taking a look at this with a bit of concern. >> i think china has been looking for a long time that russia. we go through the statements that they make when they are trying to get people to reintroduce ideology into the party. you can see that they have been saying, well, russia could have been better, but look, they forgot their ideology, and that is why everything is going down. i don't think it is something new for china. they have been keeping a very close eye -- >> can they take advantage of the opportunities, perhaps? if russia is looking for any partner or invest in possibility -- investment possibility, could we see a sale to china? >> china is very pragmatic. if it makes commercial sense, they will do it. when the eu had its huge crisis and everyone was saying, oh, maybe china will come to the it makes china said, commercial sense. it is the same this time. -- if there is an opportunity, we will look at it. >> russia has all the energy assets that china might be interested in. that could make an interesting play. >> china could say, if you won't accept paym

china relations? is it that we might accidentally stumble into the war but some of the things we talk about or is that fiber? >> -- cyber? >> we have the description of silicon for example, the ones and zeros into and lots of them. that will change as the cyber becomes a different playing field or battlefield i should say and it shouldn't be just as we see space and air and sea we must also include cyber in that definition. and i'm not sure that we are very yet because we are looking at the internet, the most complex tool ever created i think in the history of humankind. and i'm not sure that folks know quite what to do about it. so it was developed based on trust and on the collaborative spirit of silicon valley and built on the premise where you didn't worry about the differences and now we have to worry about the defenses. so they have a distinct advantage and we are seeing this play out with respect to the sony crisis. nobody knows what to do. there are no real answers. but i think the real damage

china plunged from 80th to 100th. many say officials of state owned firms have fled abroad and that staffs donts share information. a spokesperson said the criticisms are unfair. >> translator: the survey does not reflect the actual situation. china's anticorruption campaign is succeeding. citizens recognize it as fair and objective. >> she said the watchdog should be more impartial because it has an impact on the international community. >>> rob madison from the biz team is here. we start with the markets. ron? >> that's right gene. the latest job markets from the u.s. is offering more proof the economy there is gaining momentum. it lifted the dollar to a fresh seven year high against the yen. we are seeing the green back just below that. 119.94. a report shows private firms in the u.s. added 200,000 new jobs in november that prompted people to buy the dollar. your owe is lowest in two years and four months. the currency is trading 1.2316. nikkei average closed today 17, 887, highest since july 2007. investo investor

the united states has called on china to stop it provocative actions there, but china has essentially told the u.s., butt out. it's prime real estate for shipping lanes, and it may be home to billions of barrels of oil. and china is apparently going to incredible lengths to get a military advantage in the area. >> reporter: on most satellite photos like this, the reef showed up and just a submerged reef. but since 2013, china has dredged up millions of tons of rocks and sand from the sea floor to build a brand new island. the plan is to build an airway. >> it could allow china to subject power right down to the south china sea. it could potentially even threaten the united states navy. >> reporter: and they have been creating other artificial islands, these before and after satellite photos show that dhie that has been engaged in a major reclamation project on gaven reef. and has been building a larger man made island on fiery cross reef. according to a report by the security group, the new island would be capable of supporting a runway and a harbor deep enough to dock warships, a cle

and china as it relates to china? >> we have issues with aging of our own as we know from those indictments of five chinese military officers in may. the chinese have been going and thes. corporate's amount of theft is staggering. when you look at the blair huntsman report last year, they said american companies lose technology each year on the order of u.s. exports to asia. u.s. exports were $475 billion. 470 -- $475s not billion, we're talking on about a lot of information and technology and know-how that has been taken by companies -- countries like china and iran. chose that venue to call it cyber-vandalism and i withred if that had to do the u.s. going to china, it had something to do with that nuanced phrase that the president news -- used. >> the president is trying to keep the china connection undercover because he wants to go to beijing and nudge it in the right direction to make sure that the turf out these koreans that are inhabiting chinese cities. this is the diplomatic answer. whether or not we call it c

in china? >> of course. there will definitely be a big bubble in china. not yet but it is building up. it will be the same story over again. , not onlyen that play in china, but other markets around the world. in the meantime, you've got to be in on this. particularly if you see value. this is what, real estate? is it one big bubble or are their pockets of bubbles in different industries? >> we have already seen the real estate bubble. it was carefully handled by the government so that it wouldn't turn into a disaster. seen so manydy empty apartments and buildings around china waiting to be taken up at lower prices. you could say that was a bubble. the same thing is true of the export industry. many of these companies got started and went bust. this will happen in the stock market as well. on the move, interest rates are low, this is a global phenomenon by the way. people in savings accounts are fed up with low rates and they have to find another outlet. the market is the way to go. >> would you be happy to buy chinese banks? if you were to think about th

china's shanghai rose 2.77%. many investors bought financial related shares including banks and securities. shares in taiwan closed up 0.6% to 9,214. reports that parliament has decided to close on shares. in currency the dollars moving at a narrow range against the yen. analysts say the dollar will stay strong against many currencies because of expectations that the u.s. federal reserve will raise interest rates next year. >>> yield for the japanese government bond hit record lows dipping to 0.3% at one stage during trading after large scale monetary easing measures. >>> people around the world have watched the yen plunge. they have seen the japanese currency drop. in just six months the yen has fallen by roughly 15% against the greenback. and it slid by 15% against the chinese juan in the same period. >> reporter: the downtown shanghai about 600 people gather for an event. many in the crowd are crowding the streets made possible by their strength and courage. >> translator: i am interested in these rock gardens

china and the is japan story. at 1%.sed for lunch is >> we may be seeing the beginning of the end of the last major protest site in hong kong. earlier, the police moved into the admiralty district of the city. they cleared protesters and barricades. there were scuffles and arrests. student leaders call for reinforcements. the protest started over two months ago. tell us what you have seen thus far and what is going on. >> good morning. certainly, a busy start to the morning. we saw police action to clear protesters. it is near the waterfront and behind government offices. protesters had came and taken over the road. the police moved in to clear them. we saw scores and scores of omotesters running away fr the police advancing. iny were pushing protesters to a park area and a walkway, down into this main protest site that i am standing in now. was brought about because of some actions that happened last night. protesters had been rallying here yesterday evening. you can see the protest leaders call on them to surrou

it will run into china. thai leaders hope to build a line through their country from east to west with help from japan. >> an nhk world survey revealed in the past decade, more than 1,000 children in japan have been neglected to the point of being isolated from society. poverty prevented some from going to school while others were kept at home by their parents. and experts say more young people are at risk. kinichi nokomoto has more. >> reporter: this teenager in western japan. he was out of school for five months when his father forced him to steal bicycles. he had to help his father dismantle the bicycles and sell them for scrap metal in the middle of the night. >> i was told i had to do something to bring in money. i wanted to go to school because i was at the age for considering which high school was right for me. >> reporter: a teacher visited some boys home and spoke with his father at the door. but was not allowed to meet the student. one day when his father was not home, the boy left and went to the

we can talk about old china versus new china. old china is the rate cuts and stimulus. new china is the restructuring. , is thathai comp trading on the belief that old china is the running the economy? we can talk about a stunning decline in greek equity. the move over the chinese stocks in the last month as an something else. >> it has. we have seen significant volatility. one of the aspects we see from china's point of view is that as they have developed economically, the capital markets have not caught up with that. in terms of the underlying liquidity to the market, the ability to buy and sell stock. those who have opened have gained access to the chinese market and are restricted from selling. that is not good news from a price perspective. we would expect to see more development of the capital market system from chinese authorities to try to match the economic development. all you see when you look at the isolated stock indices is a level of immaturity and under development in terms of price volatility and liquidity. >> very quickly, that is not going to end well.

china has more problem than they're letting on. the head of the china office resigned. you have a company that also is not spending the way they used to but the cap ex and the cash flow issues are a very big deal. therefore, there's no way this company's best days are in front of it from a stock's perspective. the company is phenomenal. thee v te esv technology is som the entire place wants to go. elon musk and jeff bezos are cut from the same cloth. they're about building great companies. i wouldn't be surprised if tesla were to merge with a spaceex operation or much like amazon, get into a wealth of other projects which has made for a great business but, frankly a lousy stock. i would be away from it, too. >> let's not forget another hot sector, biotech. this trade, this sector really took off this year finishing up about 44% but will investors have the same kind of appetite for risk, david, in 2015 when it comes to biotech? >> i think biotech is very interesting. i think biotech will end up outperforming the s&p but i think there will be some periods that are disloca

had a terrible time, but today those stocks are moving to the upside so china petroleum, petro china, all which have had a terrible time recently, have been rallying back. it's good news we're seeing big global investments going into mainland china. that's good. it will help china diversify global investments what. i'm a little concerned about, the chinese economy still showing signs of slowing down so investors are piling in as the stock is slowing down. that's not a good fundamental indicator, but right now just having china catch up to the rest of the world in terms of investment. i think it's a positive. >> thank you, bob. to steve liesman with an alert for us. hi, steve. >> the market moving, in fact the dow turned positive on news that the ecb staff would prepare or the ecb would consider proposals in january. we've confirmed that, for quantitative easing. we've confirmed that, but not entirely clear to a lot of the analysts who cover this closely that this is news. i would point out for you that draghi said at the press conference that the staff has stepped up technical prepara

china cooperation. but whether or not that kind of cooperation will be really forthcoming to a very successful and satisfied level remains to be seen just because of the trust between washington and beijing. all of these issues are strategically embedded in the u.s. china relations. whether or not you have a maritime code of conduct is not an issue. having one is one thing and actually following through on that particular principle is another. finally, i would like to draw your attention to a much more alarming trend, which is a potential for the significant arms race because of this confrontation and competition in the region. as i mentioned earlier, there is a sort of battle versus the kind of competition between washington and beijing. this basically comes down to the counter surveillance technologies and of course there are others as i mentioned as well but it includes a sort of missile defense which actually has a very crucial ramifications for the arms races and so on and so forth and also it has

china and taiwan claim them. the japanese government claims they are a part of japan's territory in terms of history and international law. it says there's no issue of sovereignty to be resolved over them. the surveyed response was 60.9%. among those who responded was 74.5% who indicate an interest in the islands. that's up eight points from last year's survey. those who showed little interest fell to 23.8%. the survey asked what aspect of the islands they're interested in. the majority had 63.3% had japan easter tor yal rights to the islands. the second answer was the historical background chlgt the survey asked about the tack shim islands in the south of japan. the japanese government maintains the islands are an inherent part of japan's territory. it says south korea is illegally occu occupying them. the survey shows that 66.9% are interested in the islands. that's a drop of 4.2 points from last year's survey. 30.7% of respondents expressed little or no concern. >>> managers at plants across japan are seeing l

china relations? is it that we might accidentally stumbling toward about these issues, or is it cyber? still have the destruction of silicoln for the and zeros -- ones that will change as silicone becomes a different battlefield. so goes with air, land, and see, we should think of cyber well in that. i'm not sure folks know quite what to do about the internet -- it was created on trust silicon valley created on that premise. to worry about e now you do.ut sony crisis ith the -- that often has a distinct advantage. real damage is less on the cyber attacks we've seen, because we've not had a so to l pearl harbor speak, but we have seen a lot of intellectual property ripped off. in my mind, that depletes the a creative entrepreneural society. if your best ideas will be hacked and stolen. me is that because problem -- the theft of intellectual property. there are no seeming rules of the road, and no real in doing so. it's interesting -- in the defense authorization act for now a new e is section on respon

more supply for china companies om internal provinces in china. could they don't look competitive in all of that and paying attention to competitive nns north america as well. it's not just a trade driven growth story anymore. they need to look at demand. >> this is also the problem isn't it? you have policy initiatives in various countries running contrary to what you just talked about. there needs to be more cohesion does there not in a political sense and not just as you eluded to in an economic one. >> the sort of thing we do has been purely economic and been huge dividends in doing that. if you get border barriers to trade reduced. if you get trade fassation and get rid of red tape at the borders and get on the band wagon for possibilities where you one set of standards then you can get huge advantages for your economy and the people anytime. i see it at an economic level. >> economically, then how would you rate that in terms of the progress they've made thus far? >> apeck has made huge progress over the 25 years it's been there and tariffs

now china's neighbors it's not -- china is not always a nice neighbor. when i talk to these countries, they tell me about the chinese ambassadors who come in and, actually, they're pretty pushy, and they're pretty tough on these local countries. so they come to the united states and look for help. and as corey implied, they don't want a confrontation with china, but they want another shoulder, they want us out there. we have to find a more strategic course with china, one that doesn't assume that they will automatically mirror us and become democratic. they're going to have their own system of government. and to deal with china we, we he to deal from a position of strength because they don't look at personalities. they're not charmed by the best looking presidents or the most, you know, articulate speeches. they're looking at china's long-term interests and how they advance them. so we've operated for 40 years on the basis of hope. it's time to look beyond that and say, okay, we're going to have a country that may have a gdp larger than our own. it's not

you tack about china. we reestablished commercial and diplomatic relations with china in the 1970s. certainly, the chinese economy is grown. politically, they are more repressed, no freedom of religion, or speech or free access, no elections, no political parties. that is the model the cubans will try to follow. they wholly control the economy. they are going to use all the benefits of access to the u.s. markets to line their own pockets with the government but there isn't going to be any political opening, raul castro made it clear. vietnam and china are the model for that. >> if you are president, would you change our policy with china? would you pull back on the engagement? >> first of all, comparing china and cuba is not a fair comparison. there are geopolitical realities as well why we reengaged with china, including splitting them from the cold union. it is the second largest economy, the most populous nation, and the third largest in the country. cuba is a small and impoverished island in our hemisphere that our policies have an opportunity to help bring freedom and democracy

in china. i want to find out what they're really like. >> reporter: the initiative was the idea of tatsuo yoshikawa, an officer at kaio university. he says the number of students learning chinese is dropping by a third each year. and those who do enroll have little understanding of daily life in china. yoshikawa has arranged an open screening of the film. >> translator: by meeting and talking with our visitors from china, i hope the students will find out for themselves what chinese people are really like. >> reporter: first, he gets his students to create subtitles for the film. this is a good chance for them to learn more about the culture and lifestyle, underpinning the dialogue. before the actual screening, yoshikawa's plan is for the students to chat a bit with the actors. but the students are shy and hesitant to speak in chinese. >> translator: we did manage to chat a bit. it was fun talking. >> reporter: next it's time for the film to be screened. the subtitles made by the students seem

>>> the plateau makes up one quarter of china's land mass. the tibet autonomous region spreads across the southeastern portion of the plateau. in the center is lhasa. its name is tibetan for sacred place. rapid development has brought dramatic change to the city over the pasten yrs. development has radedly changed the local environment and the way residents live and work. many people have moved here from outside the region to take advantage of new opportunities. in this episode, we'll offer a rare inside glimpse of this ancit tibetan capital. lhasa lies more than 3500 meters above sea level in the heart to have tibet autonomous region. it plays a central role in tibetan buddhism and was once the capital of tibet. the breathtaking potala palace is a world heritage site. the pal laz has an area of 1300 square meet es and some say it has 2,000 rooms. it used to be the home of the dalai lama, the country's former spirl eventual and political leader. nearly 13 million tourists visited the region in 2013. 90% of them were from other parts of china.

he said china could have stopped them. "new york times" is reporting that the white house requested help from beijing in recent days and the chinese have not responded. however, a senior obama administration official is telling the associated press that the u.s. and china have shared information about the sony attack. but it seems like a lukewarm response from china. so, congressman, i ask you, should the u.s. put the squeeze on china for them to in turn put the pressure on north korea? >> we should put the squeeze on everyone that has the capacity to stop what was a terrorist attack by a nation state. i heard also the president this morning called this a cybervandalism. there's not a joy ride in a car. i remember when the president called al qaeda jb and sortly therefore beheaded four americans. this is a president who has no capacity to understand these real threats to america. this cyberattack is not the first and won't be the last if america continues to treat these as minor incidents and not the real threat to the ame

. >>> the south china morning post is an institution in hong kong. founded in 1903 it earnt a reputation that it carried through the 20th century for unfettered journalism in contrast with tightly controlled media in mainland china - that is, until relatively recently. >> it is a household name. in recent years i hate to say it, but the newspaper is becoming more and more like an official beijing mouth piece. >> hong kong is at a crossroads and now is more important than ever to create more room for dialogue. >> in 1993 a malaysian businessman bout the south china morning post. four years later in 1997 the last governor of hong kong chris paton handed the city back to china. it was the start of what beijing promised would be one country, two systems. hong kong would have a different set of laws than china, including for the media. the changes were slow in coming. since 2003, the south china post has averaged one editor per year. the current editor took the job earlier in 2012 and more than two years later lasted longer than most. that he is the first

/china relations. from the wilson center, this is an hour and a half. >>> well, good afternoon and welcome to the wilson center. all of you who are here with us here in this auditorium and those who are watching on c-span or on our web cast. the wilson center is the living memorial to the 28th president of the united states. my name is robert daly, i direct the kissinger institute on china and the united states here at the wilson center. we're very glad to bring you this program on corruption, constitutionalism and control, implications of the fourth china and u.s./china relations. this afternoon's talk brings together two topics which are very often treated separately although i think they belong in the same program which are corruption and china's attempts to carry out further round of legal reforms. no doubt all of you have been following corruption stories from china over the past few years. and you have heard about x ping's willingness to take on both tigers and flies. probably followed the some t

china suspects the u.s. military uses north korean aggression as a pretext for setting up thaad to monitor china's military facilities. an expert on south korean foreign policy says during a visit to china in october, government and military officials strongly opposed thaad. >> translator: chinese officials told me that if the united states uses thaad it will be able to detect chinese missiles, and make preemptive attacks. there's no doubt that the u.s. is trying to intimidate china. that's why we object to deployment. >> reporter: south korea says the u.s. deployment of thaad will help defend the country. but it has avoided a clear stance on the issue. it says the u.s. has not formally approached south korea about the matter. meanwhile, politicians in south korea's national assembly have been debating the issue for a month. >> translator: if we decide not to use thaad, north korea will be free to threaten our citizens with nuclear missiles. >> translator: thaad could mean we are pulled into a dispute betwee

>> made in china. >> made in china. >> this is made in china. >> made in china. christmas is huge in china and made by chinese children for american children and that's what santa had in mind. american girl, take a quick look where it was made. made in china. >> and we came to the united states and we could have dpn to china. >> american by design and made it china. >> that's right. >> but it is american by design and we charge more. >> yes, that's correct. >> oh, man. my next guest said that our government is not making it easy for manufacturers to stay in business or expand business. joining me is william marsh who owns a steel manufacturing company. i think of what happened, and the surprising turn of china being the largest economy, how surprised are you when you heard it? >> it is not a surprise. if you look at head winds that businesses are fighting today, it is difficult to so the economy improving. the past five years or so the growth is a nemic and the fact that the american economy is doing as well as it is a testament to the workers. my guys work in a

in china? >> my number one concern is the government has too high a growth target. this is a middle income economy, 7,000 u.s. dollar per capita gdt, $9 trillion economy, perfectly acceptable that it grows at 3%, 4%. by having such a high growth target, the only way to achieve that is to add more capital to the economy. we have 14% loan growth. maybe 7%, 8% nominal gdp. final point concern, 31 months of ppi deflation. the cpi number has just come out at 1.5%. there are a lot of characteristics here of japan two decades ago. >> that's a pretty big concern. you made a great call in terms of going over china before this massive rally we have seen. it sounds like you still think there say trade there to be long, something that mirrors the shanghai composite. the same time if you drill down into sectors, would you go into financials which led the way higher? >> yes, so in moving overweight, we stuck with our growth names and we have added banks and insurance. so banks are trading at five times trail

he's made a name for himself poking fun of life in china. some accuse him of being a traitor. >> reporter: the independent media in hong kong held a ceremony last month to recognize journalists who have contributed to democratization and social progress. one of the awards went to wang liming. works under the pen name, rebel pepper. >> translator: i am very honored to receive the best cartoon award at this time. >> wang's cartoons satirizing modern chinese society evoked a huge response. wang left his home in beijing and now staying in japan. in china, wang became known for his cartoons exposing social problems which he posted on the chinese social media equivalent to twitter. in november, world leaders gathered for the apec summit. the skies over beijing are shown as clear blue, that's because president xi jinping depicted as a spider is restricting traffic and closing factories that are the source of the city's chronic pollution. at one point, attracted as many as 900,000 followers in china. >> translator: instead of expressing stereo typic

i think china also needs the involvement of private companies. >> reporter: china is catching up to front line of the space development with other countries. earlier this month, the chinese successfully launched a satellite with a rocket and all-china undertaking. the rocket that hu and his crew are working on differs from the one developed by the state. it's a sounding rocket or research rocket only a few meters long. the satellites launched by large scale rockets usually fly more than 250 kilometers above the earth. by comparison, planes and balloons can reach heights of around 50 kilometers. so, a small research rocket could operate in the band between them. the small rocket could collect air samples, and experiment with materials in microgravity conditions. hu said the research rockets have an advantage. his team hopes to cut the marketplace by two thirds and secure orders from economic institutions and businesses. the team uses as many inexpensive over-the-counter materials as possible. china's government recently announced a policy of encouraging private businesses to enter the spac

it old china just blink? blink?id old china just >> i don't think they blinked. we are used to it growing at a high rate. it is more likely to grow somewhere in the region of six or six in half over the next couple years. these reforms they are putting in place, dealing with the real estate sector, they are good for the long-term, but in the short-term term, we have to get to a more sustainable growth half. i think that's what we have to grapple with. >> you look at a chinese bank that felt the need to cut rates. he used to talk about decoupling. forets seem to be cutting market reality. there are points where they needed to cut rates. which one is right? the weakness? is that what we should be concerned about or the market rally? is that justified? >> i think if you believe china moves into more sustainable growth rate, it is justified. we have those lower interest rates. there is a chance they do more. think you could be a little more optimistic about the sustainable growth rate even though the growth rate is lower than we have seen in the past. >> we are going