china's new silk road needs to solve china's problems — this china out here, notjust the one i've left behind in yiwu. the silk road was once unimaginably remote to most chinese — not any more. in less than a decade, china's built twice as much high—speed rail as the rest of the world combined, and pushed it out to the far west. using the lure of the silk road to draw the biggest tourist force in the world. china hopes its new silk road, laden with tourists, can bring wealth to the west. xinjiang is home to the uighur ethnic minority. they're mostly muslim, culturally closer to central asia, but outnumbered in their homeland. the region has witnessed a vicious cycle. bitterness over marginalisation driving bomb and knife attacks by uighurs, and met by overwhelming force and religious repression. china is investing here — more than $250 million to build this theatre alone — and the more china invests, the more it has to protect. but this silk road show works hard to spin a story of ethnic harmony. behind her stage make—up, buhalima is a uighur. 0nce xinjiang was known for musi

selling to china. so, i actually think the demand is not growing, making it harder for the us to start cooling down the relationship. now it's china buying in the u.s. >> what would you recommend for u.s. companies wanting to get involved in china? we see bai-du, companies doing research in silicon valley, china coming in, start ups, all their manufacturing in shen zen. what can we do? >> two things to be wear of. chinese start ups have not done well outside of china, southeast asia. u.s. has done horribly in china as well. i think it's all of our building long-term relationships. we spent four years in china before we started doing real business. we spent time forging relationships, work with the government, et cetera. i think for u.s. companies selling into china right now, that's a massive market of chinese consumers wanting western goods. they want brands outside the normal ones. it's hot access to get that in china. t-mobile, et cetera. that's a massive opportunity. it is getting easier and easier

essentially china's big three allied is a china southern, china eastern and air china. let's take a look at a graphic illustrating the size of each. they are asia's three largest airlines in terms of their fleet size and the sheer number of passengers they carry. china southern is the largest, carrying over 70 million passengers this year as ofjuly, with over 500 veins in the f. china eastern follows with 63 million passengers. —— 500 planes in the air. finally air china, which flew 57 million people with just a fleet size of 400 planes. you can imagine, with the sheer size of these airlines, you would think they would report fairly good profits. actually they have reported a fairly mixed bag. yesterday we saw decent earnings from china eastern, which saw its first half profit rise. that was really on the fact that they had a 1—off sale of a logistics unit. a stronger chinese currency, as well, the yuan. china southern recorded an 1196 the yuan. china southern recorded an 11% fall in first half profit, due to higherfuel 11% fall in first half profit, due to higher

, but how did mainland china big as compared to china? as a market for american goods. a lot of my american friends of said it must be 20, 30 times or 50 times. some people it say 100 times. let me tell you, last year we bought $26 billion from united states. mainland china only did 112 billion. so mainland china is a market for american goods is only 4.5 times the size of taiwan, even though that territorial fact is 255 times and population 58 times. that shows how big or how small taiwan is. that kind of strong fundamentals will be continued. now, let me tell you another figure which is also very impressive which is that even though we are ninth or tenth largest trading partner, last year are two-way trade total is 65.4 billion u.s. dollars. but this number is even smaller than our trade surplus with mainland china. our trade surplus with mainland china last year was $66.9 billion. keep in mind you are the largest trading power in the world, and you are trading with 229 countries and territories in the world. we are ninth largest out of

think of china today, it is not china in 1969. when we think of russia today it is not rush of 1970. these are much more open societies are you yes, they are authoritarian. -- societies. yes, they are authoritarian. like it was very different -- now everyone has access to the internet. very high internet use in russia. also in china, yes, there are sites that are blocked. nevertheless, clever people find ways around those. i think, even the category of a state and the control a state can exercise, that is being challenged by technology. of greatnother factor importance. thisther thing is, whether president trump is a symptom or a cause of a shift in american thinking about world order. some of his statements have called into doubt two of the very important pillars in which was created.rder mainly, alliances. questions about nato and the commitment to south korea and japan. an issue has been raised. agreements, trade which is also an important part of american policy. you do not know if there will be toeaction to this area -- this.

look no further than the island china has built in the south china sea. to stake its claim their oror their expansion into africa. where they just constructed their first overseas militaryrs base in djibouti. or what about the theft of intellectual property, and other trade violation? since joining the wto, china hah flouted every rule that exists, devastating american manufacturing and mildlye distorting the marketplace. so don't you think we shoulding spend less time attacking russia and acting like we are living in the 1985, you know, the film "red dawn," and maybe spend some time thinking about what happened to our own freedom and prosperity if, someday soon,happ china supplants the u.s. as the world's dominant economic and military power.ç it is time to face the hard facts.wo the only country that can change north korea's behavior is chinaf and until we get more leveragea over china, our ability to change the dynamic withover north korea will be extremely limited.ely patrick granfield is a lecturer at georgetown university and served as a speechwri

china wants to be accepted as china and not as an honorary member of the west. charlie: what does that mean because many people will argue with you that china doesn't have global ambitions. it is not an imperialistic power. not in its history or its intent. imperialistic power. graham: there are two coup points. with respect to its ambitions for the time being, it's right to say they would like to be the predominant power in the western pacific, which means not seeing the u.s. navy as the arbiter of events in the south china sea determining who should be building an island or owns an island. they look like teddy roosevelt looked at the caribbean. charlie: other people claiming parts of those islands are not the united states. it is its neighbors. graham: we are not claiming. but we are claiming we have a say in what's going on. when the british and germans wanted to have a say in a territorial dispute in venezuela roosevelt said, either , have a war with us or butt out. in our hemisphere we thought we should be determined how these things are adjusted. from thei

companies greater access domestically in china what about china's major financial institutions though stopping one one example stopping north korea from development of nuclear weapons could this state owned enterprises and banks like bank of china china national petroleum corp be on the receiving end of something like this a harsh approach. well they could do the us has not been a verse to stopping chinese institutions from acquiring. stakes in sectors of the american economy where there is a perceived by all national interest so we had that for a few years ago for example china's national oil refining company and so you could easily see that again with north korea the chinese banks themselves are not as strongly embedded in the american pie national system as say the japanese banks were in the one nine hundred eighty s. so they don't have quite the same amount of leverage but that's certainly another attack another attack the they could take down the road one of the first things a lot of americans think of when they think trade war with china are the cheap goods we get in the aisles

and india is actually about to suck that china is building and the rise of yeah go ahead yet china i mean china has put in one hundred sixty billion asian and infrastructure bank these central asian countries russia has lost the influence china is now there are both of our biter of power in central asia go to kazakhstan you go to down all of these countries are now dependent on chinese economic power they're coming in they're building rail they're building power plants roads bridges this is all about expanding china into europe so they're. basically the one built one road ends in a lot of eastern european countries there china's billy high speed rail between serbia in romania so not only is washington d.c. asleep at the wheel but so is berlin when he says europe now wants infrastructure investment they go to beijing they don't go to berlin so this going to be able to one bill one road it serves a few purposes number one it gets it stops any foreign country i united states blocking chinese oil imports down in the straits of malacca near singapore they've got another transportation row

the toughest on north korea that recently passed and that could only happen with china's assent china had vetoed it it would have stopped the dead in its tracks and china decided not to veto that there have been some things that china can do it is doing and just did and i think that you know one way of looking at this is a say well what effect will this have on the north koreans of course we should underestimate the resilience of the north korean leadership that where the economy is tanked in the past and its people have suffered terrible hardship that hasn't stopped the regime from following through on its weapons plans and continuing on with its militarization plans and so you know. this is difficult situation there is no easy fix i think that the shop of ministration seems to think if they talk very tough threaten fury and other types of things and and then have some big. time and just listen about them on others because i just have to interject that i do apologize been interesting to your thoughts on this story they appreciate it tom brooks professor of law and government durham u

we know trade with chien china, 90% of trade is with china. they sell mineral to countrys funding, foreign currency from illegal operations north korea. we've heard many things they have done before, selling drugs, selling counterfeit cigarettes, ways they earn currency so they it feeds development of nuclear weapon and laliftic missile program. own people, r sometimes to countries outside of north korea to earn through work, through logging, forestry in russia and channelsces, those are of currents that he feed the we are rean regime trying to crack down on or cut off with some sanctions, the uni-lateral sanctions we are trying to put in place now. about the an talk effectiveness of the sanctions, but in iowa, line for democrats, go ahead. caller: hi. thank you for taking my call. maybe she kind of answered my question, it was my nderstanding that russia and china continually trade with orth korea and that's what keeps that regime propped up all the time f. they would stop and what can hem we do? what can we do to make sure they stop trading

china. you know it's a major exporter it needs to keep its export markets open and. you know the china is going to be in india too you know these are these are vast economies and they're very important for exporting countries japan too is looking that at that very heavily so yeah the world is changing i don't know that the trump administration is . it's triggering that but i think it certainly. has have an accelerating impact on it right you mentioned the possibility of china blowing up so let's put that into the mix a little bit so you have these economies vying for global had gemini global superpower status and these economies are built on enormous debt the u.s. and china are really empires of debt the odd man out in that scenario would be germany of course world's biggest export or depending on how you calculate that sharing that title of china and then of course you have another country with virtually no debt whatsoever huge energy resources on the ascent allying with china and creating

yes, china is history. china is also land. more land than the entire continent of europe, a third larger than the united states, and rich in raw materials. consist of china in four other providence. hugee north is manchurian, and desolate, but abounding in raw materials. mongolia.nchuria, a vastes the desert, plateau twice the size of texas, inhabited by nomad tribes who caravans back and forth over ancient trade groups. to the west, to that. the icy roof of the world -- tibet, the icy roof of the world. a mystery land that few have entered. and from these vast mountains of the west rise the three great rivers. the yellow river. far to the south is the furl river, which interest the sea pass the great parts of hong kong. the greatest river of all is the one that flows between, the grinding for 3000 miles through the heart of china, bringing fertility to the good earth and bearing upon its broad waters half the commerce of china. yes, china is land. next to russia, the largest country in the world. most importantly, china is pe

our concerns on east china sea and south china sea situation. our defenseen cooperation and securing the peace and stability in east china sea as well as engaging nations in the south china sea. in order to secure seamless response in the alliance in any situation, we must constantly continue our efforts to strengthen the alliance. through today's discussion, we were able to seek specific direction for future reference. moving forward -- future efforts. moving forward, we will accelerate to the implementation of further guidelines and move and cooperation under the peace and security legislation. we will expand peace and cooperation, such as surveillance and joint training. furthermore, we will continue to promote cooperation in ballistic missile defense, including acquisition [indiscernible] and enhanced ability domain, such as cyberspace. we plan to strengthen further posture. response of along with this, in order to strengthen our own defense intend to review the national defense program and midtermk on the new defense program. this was expla

states so imagine you've got china that kind of economic and military power right on your border china ice to go to school here as exchange student at she wore university which is kind of the mit of china and i went to school the north koreans china's been training north koreans for twenty years to go in there and eventually once the puppet regime falls china has many tree north koreans that will could take over the state in act as a puppet g.o.p. political blocking state against the west so the manchurian candidate in reverse they are exactly. all right but you think that. north korea. is instability is increasing and of course china is their vassal master the u.s. is within firing range and guam and south korea's real nervous so if north korea drops falls what's the first geopolitical second shoe to drop down. i think you'll see a chinese take over north korea i think there's an oil there i don't think i can see no there possibility plano the interesting thing here is yeah you got a crazy guy with nuclear weapons but in this situation we don't have mad we don't have mutually assured

well china said the clock's ticking started been two months now china will not negotiate till the indian troops of withdrawn so until we see that i don't think they'll be any negotiation but yeah we're getting dangerously close to a shooting war i think within within the next thirty days unless they would draw right so i understand china's you know got a lot of military hardware to bring to they bring to the table there's india got the military might to go up against china haven't really followed them too closely what's going on there now i mean chinese economies. twenty times roughly india's economy the military ten fifteen times the size of india much more technically advanced china has huge and you know indigenous military development projects projects. you know advanced fighter jets with stealth capability. you know cruise missiles so. i don't think anyone believes india is going to be able to go toe to toe with china on the military side. so hopefully that the get with with with hopefully the need troops would draw we go back to kind of a just a peaceful status quo they are fighting

mao unified china. now here is a man who is trying to combine some of the elements of the others, and is moving toward a position which if he succeeds will be comparable in influence to mao. >> rose: if he moves to where he wants to go, he will be compared to mao in terms of his influence on society? >> yes, because he is trying consciously to remake this society that he inherited after decades of turmoil, and to put it on a basis of what he calls the two dreams. first dream goes into effect very soon, in 2021, where china reaches the level of the poorer european countries. the second one is at the hundredth anniversary of the founding of the peoples republican where china by his vision be at least as strong, in 2049 as other nations in the world. >> rose: therefore why doesn't he want to do all he can to make sure north korea is not a disruptive factor in the region? >> well, because i believe this is his intention, this is his goal. i believe that he would reason that way, but it is the nature of the

he is also scaring china. the chinese want stability and peace, so therefore, they may exert greater pressure on kim jong-un to come back to the bargaining table. host: john delury, respond to that, and also give us the source of the north koreans' fear of the united states. what is behind that? guest: sure. i will start with the second part and then comment on patrick's observation. listening to the program before us, you had a gentleman on who was a veteran of the korean war, talking about a different topic to you but that is where it goes back to you. u.s. troops arrived and it battle on the korean peninsula. they went north and occupied until the chinese process back and never removed our troops from the south. we never went home. it. is the root of victory in war is not something we talk about a lot. it is known as the "forgotten war." you have the exact opposite of that in north korea. part of the regime's way of maintaining but also legitimate imating itself is to remind people endlessly about that war

>> anything can happen in china. we are still optimistic china has a great future in golf. even if you saw the young man at the british open who finished third, which created quite a bit of interest in golf in china. was a decline from 700 to 500 golf courses. what needs to happen is not complicated. we need a middle-class. ande have a middle-class access points to golf in china at fair market value with the right programs, china golf will explode over time. rishaad: how is it for you as a market now? >> it is a good market, not great. it certainly is not top five. is driven through participation. we need millions of golfers in china to adopt them play the game. we are invested in the hsbc china, trying to get the youth in the game, but the administration needs to get behind the game of golf. had a meaningful impact as a globalize is the sport. rishaad: tiger woods engendered so much interest in the sport. things have gone a bit hair shaped, so what is happening there? rishaad: tiger is managing his challenges and we are optimistic for our partnership with him that he will

/china relationship. and it shows what's possible when we work together on an urgent global challenge. >> reporter: so this time around, somehow a nonbinding agreement was not a hollow victory. these twists of logic demonstrate why other signatories are fed up with washington. after the drama of the obama years, the next president just yanks the country back out again. but here's where president trump may have seriously miscalculated. had he stayed in, washington would have been able to veto any meaningful change it didn't want. but by leaving, in an effort to deny barack obama a legacy, he's freed up the rest of the world to establish a set of rules without any input from the u.s. of course in terms of credibility, it doesn't help when a new president comes in and tears up an agreement made by the previous administration. would you take america at its word if you were negotiating with us? >>> next up, a story about a miracle in a monastery in cambodia. the miracle of light. stay with us. as moms, we send

china wants talks. well, there will be talks at the summit, rex tillerson talking not just with the chinese but also with the russians and these will be the first talks since president trump said relations with russia were very low, at their worst, and dangerous. and also since he signed into law new economic sanctions against russia. as we've been seeing in the last hour or so, rex tillerson has met with the russian foreign minister sergei lavrov no results from those talks yet but the two men at least talking. but the toughest action hasn't been here. it's been at the united nations where russia, the u.s. and china agreed tough new economic sanctions against north korea that will cost them an estimated $1 billion a year. that's about a third of its export ref knew at the meeting of the u.n. security council nikki haley said don't anyone be fooled into thinking this is enough. it's not even close she said. more action is required. but the action won't come here. it will be a lot of talk but north korea

china inc. looking financially healthier, and set to grow in 2017 at the fastest pace in seven years. we are looking to those chinese mending rates. rishaad: absolutely. thank you for that. right, let's find out what is going on first word wise. , president trump has described the flooding in and said the government response will serve as a model for future disaster recovery. looting prompted authorities to impose a curfew from midnight to 5:00 a.m. harvey brought the heaviest recorded downpour in u.s. history. billions range from $24 to $100 billion. meanwhile, the storm has paralyzed mumbai. it forced the closure of a train network which carries 8 million people each day. whether forecasters predict more of the same today. trading on the stock and bond markets was also affected. , while theell 1.2% rupee weakened slightly against the dollar. cooperatingt is with u.s. investigators looking into whether employees who violated the foreign corrupt act, using bribes to win a retain business. the co

doing to china? think about the person that you are doing this with and north korea. just recently, the president said he might legitimize him by talking with him. it was the legitimize of people put an editorial on. he said he might be open to having a conversation, anything short of war. but now something has gotten him to this point. he sees things we don't see in terms of the national information and our national security. we don't know what that is, it's not for us to see. something has gone him to this point, the question is, where did it come from? >> kennedy: there's a shift in tone from the u.n. ambassador who says all options are on the table. we just saw a rex tillerson who said the americans can sleep at night, so at what point is there a shift from rhetoric to action and what can the president do? >> judge napolitano: i was initially appalled at the president's language, then the day wore on and i listened to nikki haley and to rex tillerson, and i realized this is coordinated, this is p

ambassador to china. the former democratic senator from montana max baucus. mr. ambassador, thanks so much for joining us. first, let me get your reaction to the breaking news we're following here. the "washington post" reporting that the u.s. intelligence community now assesses that north korea has produced nuclear weapons for ballistic missile delivery to include delivery of these icbm-class missiles. are you surprised? how dangerous is this situation right now? >> i'm not terribly surprised. i think we americans tend to underestimate the capability and intelligence of people in other countries. we're a bit arrogant, at least on the margin. second, i think it's noteworthy that china is stepping up its role as a potential leader in trying to resolve this. joining russia at the u.n. that's noteworthy. these are very great additional sanctions as noteworthy. the foreign minister of china made it very clear, how upset they are with north korea. next, it's important secretary tillerson is signaling we're not

fading empire is china rising what is china going to do in terms of the u.s. as you know over the past few years. they're pulling out their basic lee financial nuclear weapons they're cutting people off from swift as jim rickards has said on the show once you do that you know it's hard to go back from there and will other nations develop their own swift alternatives here we have that case just like you know what you're saying you mentioned that there mining big queen and here is a little indicator of why they might be mining declined in north korea because the un applied sanctions from march of two thousand and sixteen which banned the export of gold verret e.-m. titanium and rare earth metals earlier this year a group of u.n. experts concluded that north korea despite sanctions continues to export banned minerals they determined as well that north korea uses another mineral gold along with cash to entirely circumvent the formal financial sector so of course gold has always been a way to get around sanctions here it's being used to get around sanctions because

that is something that preoccupies china. charlie: you are also preoccupied by the idea of a reunification of the koreas, north and south, which would somehow evil into one more nation in the area who may be opposed to them if the south koreans dominate a unified south korea. dr. kissinger: i think a unified korea is something that may be less dangerous than a divided korea, one of which has nuclear weapons and starts pressing for its objectives. the possible unification of korea should be one of the subjects that will be discussed not only with china but also with south korea and japan. charlie: can you sit down with -- i'm askingient as a diplomat -- tell me what your fears are and i will tell what i want and what i need and what my fears are? dr. kissinger: i think the better way would be to send some private emissaries to the chinese and say, here is our notion of the evolution of the region if things continue as they are. that some military clash by somebody is inevitable on the present course sooner or later. the way we

let's turn to china. it is creating the world's largest energy company, merging the top coal miner with one of the largest power generators. tom mackenzie joins us now from beijing. what are the details of this new deal? tom: it is big. it is very big. of china's merger number one coal producer with one of their top power generators. and will rename this entity call it the national energy investment corporation. in terms of the size, i'll break down the details. , $271 billion worth of total assets. the company would generate revenues that would put it in second place in terms of power companies. of storage capacity, it would be the number one power company, 225 gigawatts of installed capacity, taking it spain, so itor will be a huge company. it was signed off on monday by the authorities in beijing, the merger, and it signals what analysts say could be a new direction for state-owned enterprise reform, so cutting down some of these bloated state enterprises. the suggestion is we will have companies withi

exports go to china. that is a very disproportionate kind of interdependence and for china and for russia, they cannot do much for one another. accelerate,eally sustain, transform their economic strength or ability to bring prosperity or fundamentally change their military capabilities. they both need factors and relationships available in the west. and more broadly. china --f russia and they seek to gain advantages by closer withby being each other? of course they do. look at the hard numbers. i would disagree with catherine. it is a different set of numbers. numbers, thek shared economy is 24%. that is down a 2% since 1979 when china began its rise. we of dropped 2%. china's share of world economy world bank numbers is about 17% which is almost exactly the same share a's chai population. 4.5%, inchieved with the u.s., of the world population. the indicator gap is widening. >> yes. ppp, that means purchasing power parity. if you bought goods in china or whata, trying to compare those would cost relativel

staying away gradually from hong kong and even from china, now china is a strong power, the economy in the world. they are gaining confidence now and they would like to send a message, here we are. for the first time china used the security council veto dummett eight times. for tens of years they did not involve themselves in any international crisis, the other at stained or did not take any action at all. so now the message is very clear. we are not a western democracy, we do not believe in western democracy, we have our own way to handle things, and either you respected or go to hell. that is the message, it is clear. i have experience with them. my book on al-qaeda was published, and they don't care. after ten years of publishing the book now they realise there is a book called the secret history of al—qaeda. the message is very clear. they are not a western democracy. it worked for us, now a western democracy. it worked for us, now we are a western democracy. it worked for us, now we are the second biggest power, so why not? that is the message. this nervousness is to do with the

within china, if north korea launched the first attack and china will stay neutral, china wouldn't help north korea. if the us launches the first attack them china might be forced to help north korea. we are watching these developments very closely. thank you so much for your insights, huang jiangyu, very closely. thank you so much for your insights, huangjiangyu, a professor at the national university singapore faculty of law. let's take a look at some of the day's other news. more than 300 people are feared dead and others remain trapped after a huge mudslide in the west african state of sierra leone. here's umaru fofana in freetown. digging for corpses. hundreds are believed to be lying beneath this rubble after sugarloaf mountain caved in. the voracity and speed of the mudslide completely submerged dozens the mudslide completely submerged d oze ns of the mudslide completely submerged dozens of houses that have been constructed here, many illegally. they ranged from tin shacks to concrete story buildings. some structures can't be seen, they are buried. earlier in the day eight torren

china, think about china. i started studying china about 10 years ago. and about five years ago, i stumbled on this idea that the thucydide had a big idea, which was when a rising power threatens to replace a ruling power, in general, bad things happens. that aa lens, as henry says, helps you look through the daily noise and news, to see the-- a primary dynamic here, and that helps us recognize the dangers that are inherent in such a situation. >> rose: i mean,s it as timely as today. this is the "financial times" from today, and it has a picture of xi jinping. "xi jinping, china's president, makes his way to the podium in the great hall of the people to deliver an hour-long speech that warned china's neighbors that the country would not tolerate any infringement of its territory." "warned that china would not tolerate any infringement of its territory." and it would define its territory. >> absolutely, and he was just coming from spending the weekend with the p.l.a. at their displays -- >> people's liberation army. >> they had a celebration of the ninth

china,eing challenged by although china has one fit in and one foot out. it is being challenged by russia because they do not really have a foot in the economic side and therefore use its military power for its respect. it is also being challenged by the four horsemen of the apocalypse, populism, nativism, isolationism, and protectionism which tend to run together. one of the questions that we should be asking is -- not just the challenge to the liberal order from transnational terrorism or cyber warfare, or from big powers like russia and china, but how do we deal with the fact that it does seem that there are those who believe they were left behind by the global order and they are fighting back. givefound people who will them an answer as to why they did and succeed. populists always have an answer. it is the other. the chinese. the legal immigrants. if you are from the left, the big banks. and by the way, the other this time around is not just taking your jobs, the other is dangerous. refugees. immigrants. i think that the challenges, this time, not jus

that was a "china daily" editorial. in a few hours they came out with a new piece saying this would poison relations with the united states. a different, darker tone. i think it will get worse. , authorwas gordon chang of "the coming collapse of china." more coming up at 3:00 p.m. in new york. still ahead, the maker of the angry birds mobile game could go public as early as next month, but are those birds worth $2 billion? this is bloomberg. ♪ company behind angry birds is set to be planning an ipo as early as next month. they value the company around $2 billion. caroline hyde joins us from london. the obvious question is why go public when newly listed software companies have not done particularly well? caroline: they are down about 16% overall if you're looking at the software entertainment part of the business, ipo's have sunk . in particular one in south korea . you can see it on the top of the listings. they have fallen 16% after initially going public in may. we are questioning valuations. you have seen snap and

-china trade. the president and ceo of cmm international and the wb trade representative lighthizer responsible for u.s. trade and investment relations with asia. robert, thank you so much for joining us. i want to just read for you -- we know there is so much at stake between the u.s. and china in terms of trade. i want to read to you a quote from the u.s. trade representative from earlier today, talking about this order signedesident trump about looking into ip violations, saying the united rates have faced a very serious problem. china industrial policies and other practices reportedly have forced the transfer of vital u.s. technology to chinese companies. case, why didn't they find something much more forceful than we saw today, robert? robert: the announcement we saw from the white house was really just a kickoff stage to broader, more detailed examinations, so the white house can decide which among the possible tools it has to deal with this issue they may use. so it was really the warm-up ca

>> i think china can do a lot more and i think china will do a lot more. we have trade with china. we lose hundreds of billions of dollars a year on trade with china. they know how i feel. it will not continue like that. if china happens us i feel a lot differently for trade, a lot different toward trade. our people of our country are saying, our allies are saying, i will tell you this, north korea better get their act together, or they will be in trouble like few nations ever have been in trouble with this world. thank you very much. we're going down to the other side and we will, we'll take a few more questions. okay? thank you. trish: well the president witness again warning north korea there, basically telling them if you continue on this path you will be in trouble like no other nation has been in trouble. things will happen to them, to their people like they never thought possible. back with buck sexton jam mill jaffer? do you think north korea is getting the message? >> that is difference between the prior president and frankly last 25 years of north korea policy they never

and i think china will do a lot more. look, we have trade with china. we lose hundreds of billions of dollars a year on trade with china. they know howl of dollars a year on trade with china. they know how i feel. it is not gonna continue like that. but if china helps us, i feel a lot differently toward trade. a lot differently toward trade. a lot differently toward trade. so, what do you make of that, because it sounds basically like donald trump is trying to offer china something to behave in a certain way. is this blatant blackmail? this has long been the case in terms of president trump and his administration. the most transactional of politicians, maybe. he has made it clear that he thinks the trade relationship between china and the us is not a good one. and in return perhaps, though, for china doing what it can to exert pressure on north korea, of course, chinese north korea's only ally. north korea does the vast amount of trade with its neighbour, china. in return for what he thinks china. in return for what he thinks china can do more, he think

the third element is china. every president has seemed to me discovers china at some point when he thinks about north korea and decides that that is of the solution to the problem. why are we worrying about it when it's in their backyard? as a it would be brilliant for us to subcontract this problem to a principal competitor in the region. but nevertheless,, china, going to turn and asking for chinese help in some way to mitigate the threat or solve it. then all the other i would say lesser things we might do that do not raise the level of military action, though they can be quite offensive. they can be cyber, they can be covert operations, all kinds of things but it is not war. all these things together, and are probably other things, i'm not too managing the threat. it's designed to either limit it, push it back or drive us to the second of the three options, negotiations. negotiations are discovered by even administrations that start by disparaging negotiations. the bush administration, for example, was very

under china's open-door policy, economically, hong kong was china's gateway to the world. that is why china maintained the principle of non-interference. however, the asian financial crisis put a strain on its relationship with hong kong. however, hong kong's frail economy was further weakened by the sars pandemic, and travel from china was restricted to prevent the spread of the virus. from may to july 2003, hong kong's average unemployment rate hit a record high of 8.7%. at the same time, the hong kong government attempted to pass the basic law, article 23, in response to beijing's request regarding national security. deliberations progressed quickly, and article 23 was scheduled to be passed on july 9th. after the world health organization took hong kong offer the sars pandemic list, china signed a wide-ranging free trade agreement with the hong kong government. with massive support from the chinese government, everything seemed to be going well. however, two days after the signing ceremony, hong kong celebrated its handover anniversary. arou around 500,000 people demon

china is on the move. china has what they regard as historical claim to the south china sea. >> it would be roughly as though the united states claimed to own the gulf of mexico. >> china's belief is that there ancient territorial rights is the result of all of those voyages of admiral jing he and that as a result, they own that water space and all the hydrocarbons that are under it. 80 percent of pacific trade passes through this south china sea. and to reinforce this claim, china is building artificial islands and reefs , many of them. thousands of acres. and they're militarizing men. those are airstrips. each one of those islands becomes kind of an aircraft carrier from which china seeks to operate and it reinforces their claim under international law. fortunately, we have allies in this region. we have japan which is increasing its military spending and is more inclined to operate alongside us. wehave south korea . an improving economy, a new president. our allies are the heart of our maritime strategy

trish: let me talk about china. china may hold the key. china could do a whole lot more and china hasn't done much to influence north korea. if we make it clear to china we're not going to look the other way when they keep stealing our intellectual property, which is exactly what they do, or imprisoning our executives, so many executives have wound up in prison in china on drummed up charges, they counterfeit goods to the tune of hundreds of billions of dollars a year, yeah, this isn't going to fly anymore, will that in part influence them in a way that they will go after north korea and tell him to go, you can't do this. >> you understand this china dynamic better than many in public life. we've seen the largest transfer of wealth in world history outside of the middle east. that is the wealth of america going to china. it happened under three presidents and it happened principally under the clintons and the bushes. so when donald trump -- trish: talking about u.s. treasurys, the fact they hold so much of our debt? >> and the wto, getting

economic partner looks at china's globally and all america's relatively declining to china's. former president obama reasserted important pivot to asia and unfortunately well, i think when all is said and done president trump will rediscover the importance of asia but, of course, one of the first things he did was to withdraw for the in my opinion was a lost opportunity. why just like on the surface the relationship is pretty good but why do we continue hearing about squabbles over the last 25%. for example, in the 1980s it was the super 301, section 301 mainly that the us unilateral action to pry open the markets of major trading partners in trace surplus. vis-À-vis the united states. the treasury department now puts taiwan among six other trading partners on the so-called enhanced analysis so a trading partner is put on the enhanced analysis if they enjoy a significant bilateral trade surplus with the us defined as over $20 billion. taiwan does not fit this because it's $9 billion but the surplus is at least 3% of gdp taiwan does fit this and i will come back to this in a m