china is history, china is land, china is people. chinese history goes back for more than 4000 years, that is a long time. it was only 168 years ago that washington crossed the delaware. only 452 years have passed since columbus discovered america. 1500 years since the world saw the fall of the ancient roman empire. 3400 years have gone by since moses received the 10 commandments. 3700 years have passed since the pyramids were built. but more than 4000 years ago, the chinese empire was already in existence. and more important, so was the chinese civilization, a civilization of art, learning, and peace. 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. this last area consists of china in four other providence. -- and four other provinces. to the north is manchurian, huge and desolate, but abounding in raw materials. next to manchuria, mongolia. here lies the gobi desert, a vast plateau twice the size of texas, inhabited by nomad t

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 anymore. 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, and 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 music and

yes of course actually china. is acting extremely peaceful in its own region in the asia pacific it is being constantly provoke on several fronts and that is that the. trying to reach peace agreements like the philippines are being contaminated. even at the overthrow their governments there are of course north korea is sitting. between i mean there is a border with china and for russia and just imagine what interests of the west are if there is a so-called reunification of korea hostile the unification if there is a war and let's say north korea is going to collapse then the rest of the regime is going to or west of the empire is going to expand right to the border with both russia and especially with china so this took on the sort of big snow on the hitlist sort of being intimidated by the worst both china and russia the two allies . the north korea would actually be. the new. hostile power because it would become one of its kind of understood that if there is a unification of korea it would be like germany it wo

can america and china the trap. he examines the potential for conflict as china threatens to displace america on the world stage. m pleased to have graham alison. when did you first know that this was a subject that needed attention? > probably a decade ago, henry kissinger was my professor and a book that i published three, four years ago. these are i think two strategic thirst of our lifetime. and they kept reminding me about the soviet union and nuclear weapons, think about china. i started study china about 10 years ago and five years i stumbled on this idea, when a rising power threatens to displace a ruling power, bad things happen. and that as a lens helps you look through the daily noise and news to see a primary dynamic here and helps us recognize the dangers that are inherent in such a situation. charlie: this is "the financial times" from today. china's president makes his way to the podium in the great hall of the people in beijing to deliver an hour-long speech that warned that china's neighbors that th

whether this china or x china, that is the key issue in finding where the specific i is. on the whole, it is hard to pick one commodity you would expect to should do like how versus another, but finding disruptions for the producer, the commodities market and the equity market, the companies invested in making those commodities back on the market. manus: britney spears -- stand on the commodity currency? david bloom was saying in canada, i can understand the aggressive move in the canadian dollar because the rates market is an syncopation with the fx ratet, but what the markets and fx markets are telling you. kiwi and aussie, do they move with the same a correction -- aggression? tougher one, is a we wouldn't say the key framework for which we are looking at those assets in those countries, but at some point, the global recovery will have to bring along these countries that are producing the commodities and you would see a strengthening of those currencies at play, as well. manus: nandini ramakrishnan is a global strategist for j.p. morgan asset management. she is our gue

wants from china. does this open a wound with china, this intellectual property executive memorandum that the president is going to be signing today? kevin: the president is excited to announce later this afternoon that he is instructing bob lighthizer to investigate whether or not the chinese are illegally forcing u.s. businesses to hand over their intellectual property when they tried to do business in china. case,y find that is the there could be new tariffs or other economic measures imposed upon the chinese. what's interesting here is that north korea's top economic , and from thena of administration standpoint, they feel they have the ability to press the chinese to address the growing threat of nuclear weapons program in north korea on the issue of the economy. i want to dive into the numbers a little bit, because based on data from the global trade alert, in 2017, the u.s. has implemented 40 measures that are harmful to china, down from 57 iod for lastper year. we are slightly down from where w

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

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. where 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 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 so. i don't have quite the same amount of leverage but that's certainly another attack the 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 in this cou

drawing investment and deals from global producers as well as chemical to battery manufacturers in china the top consumer doesn't know the historical perspective there is i think cogent you know that whale oil to hydrocarbon oil in the ground this is been the twentieth century this has been the rise of the american empire the rise of the automobile the rise of industry the rise of henry for the rise of banking but it's giving way to a new technology for energy battery technology and china is dominating that battery technology with their almost monopoly on things like lithium and so the question is is this going to define the decline of the american empire in the twenty first century and based on what you're saying there are looks to be the case because as energy goes so goes empire building and so the empire baton is being handed off to china based on this new energy source and development technology battery technology and of course i would also point out that china and russia are going. really strongly into crypto currency as well whereas america stuck in oil in america stuck in the pap

annual capacity callison lithium a joint venture between china's tanky lithium corporation and north carolina's alba corporation said in an e-mail the site first mined for tin from about eight hundred eighty eight already accounts for about thirty percent of global lithium production according to australian government tanky is also planning about five hundred seventy eight million dollars a processing plant expansion so china is controlling that right now they're doing the land grab while it can i think a lot of people on the in the west. you know you haven't really seen you know tesla is the most shorted company in america people have been mocking the notion that this will ever work in the meantime china spent expanding and betting big on this apparently but nobody seemed to know that until it's a bit too late now know of the elon musk classic american entrepreneur bucking the trend both being the naysayers looks like all the shorts are going to get squeezed a market capitalization heading toward one hundred billion dollars it's gonna like the same path that bezos took with amazon b

china stands opposed to any chaos on the peninsula. it won't help toward achieving the goal of denuclearization all regional stability. the deployment, it is seriously jeopardizing, undermining the security interest of all regional countries including china. they will further escalate tension on the peninsula making it more complicated. china also urges that relevant parties to hold its deployment purpose immediately. china also urges countries to stop the practice of resorting to their domestic legislations , imposing sanctions on individuals and entities and other countries. the realization of denuclearization of the peninsula and its lasting peace and security is in the interest of the party. we hope parties can, along with china players do roll and assume their share of responsibility to bringing the peninsula issue back to the right track of peaceful dialogue. thank you, mr. president. >> members must seek peaceful, diplomatic and political solutions. the council must seek to reduce tensions in this region. there is no other way.

there is a difference between the military army of china and the old militaries of china. millions of the soldiers and officers have always shown their loyalty to the party. and they have been fighting, they have been overcoming difficulties under the leadership of the party. and, they have become an elite the capability to fight and to win. history of the army, the officers and shoulders often say, so long as we follow the party we will win victory. it has he come a feature of the solidified the strong bond between the people's army and the people. it also has formed the strong tol of the military army fight for the party and for the people. history shows us that the command should always command the military. it is fundamental. party ins we have the the people's army will have a greater election and we will have the might to move forward. the people's army will always abide by the role of the absolute leadership of the party. they will take this is the soul of the military and they will take it by the root which they will never abandon. situation they take the party bann

let's start here with china. what is china's role? >> pete: it's substantial. you have to escalate before you de-escalate. they have to come to the table based on shared interest. they want to agitate with north korea, if you don't want to create an overthrown regime, where does that point meet? i'm not sure. that's where the experts in the white house to determine, but you have to push that envelope because china is not interested and our interests, they are not our friend. they have their own ambitions and globally. they have a long future where their ascendant in america's descendant, thus a view of chinese leadership right now over a 50 year perspective. this is part of that game that they are playing and being decisive with them, standing strong, using trade as a lever will be key. >> sandra: julian's trying to jump in, dagan, to you first >> dagen: china hopes the north korean threat drives us out of northeast asia. there is so much more that we can do in terms of putting financial pressure on china and on north korea. what the sanctions over the weekend

and you wonder where china is. china is the peacemaker. china has the ability to rein in both sides. how far is this going to go? i worry that president trump is someone that will deliver on his words, that will turn around and say, i have had enough, i need to raise my poll ratings in america, i need to look strong, i need to deal with north korea, so the threat is not their long—term. korea, so the threat is not their long-term. and it is making countries incredibly nervous, includingjapan, countries incredibly nervous, including japan, they have put out this white paper citing a new level of threat. also concerns about china and its claims to the south china sea. china is not calm in this situation. in terms of its own defence mechanism and what is looking for. japan is rightly concerned. japan is on the side of the us. you would expect them to be together, pushing for a diplomatic solution. japan is being much, in its language than america is. but undoubtedly somebody, and i suspect it is someone not in the region, will have to emerg

it's a new tone coming from china. a new reaction coming from china. ainsley: how did you get china and russia coming on board. >> i think with china we basically said enough talk. we're done. you have the ability to control 90% of their trade and you can't make excuses anymore. to their credit, they stepped up. we did some heavy negotiations. we got them there russia, i think they wanted to delay it initially. i don't think that's what they wanted, but we got them there. as long as they were there, that's what matters. steve: ambassador, on the front page of foxnews.com right now there is a story that apparently the intel community has picked up antiship cruise missiles were being loaded on to a patrol boat or patrol boats in north korea. what can you tell us about that? >> i can't. i can't talk about anything that's classified. and if that's in the newspaper that's a shame. but,. steve: have you no reason to believe that's not accurate though? >> i have no reason to comment on it. ainsley: that shouldn't be in the newspaper? is that another leak i gu

the real key here is china. what is china's action going to be, and how will the u.s. and china figure this out, at a time when there relations are fragile? meantime, north korea tensions have eased a bit earlier today, allowing investors to go back into the market. points,finishing up 57 the nasdaq higher by 3/10 of 1%. the s&p trading flat. this'll be a heavy data week in the u.s., ending with the jobs report. yvonne: that will be here for for thehat will be key fx and bond traders. equity futures back in the green. but we are losing a little steam. new zealand, risk appetite is holding for the nzx 50. we are up 1/10 of 1%. australia we see crude up, gasoline -- crude down, gasoline coast braces for a comeback from harvey. .7955 for the aussie, equity futures higher by 30 points. japan, we are in for a rebound. despite escalations intentions, see how we ended on the nikkei 225. we were still down 1/2 of 1%. dollar-yen we are back above 109, but seeing strength in the new comments from pyongyang today. retail sales this hour. could get more interesting as we saw house

china the trade goes to and a lot of financing and loans go to china. oncan tighten down territorial sanctions with and say that chinese banks cannot operate and we will not let them do anything with the united states if the chinese bank helps north korea, but that is a drastic sanction and you have to, if you put a , andf economic sanctions the united states is the premier user of economic sanctions because we feel any problem in the world is ours to solve, it marketnes your own free and your reliability as a trading partner if you are continuously saying this political issue and this political issue, we have got put sanctions on it. away --ay we will shied shy away from trading with you. on,ime you put sanctions you have to recognize the larger issue. i do not think our president does enough of that. john, louisiana republican line. caller: unlike those in a think tank, i spent 25 years in your command whose business was to engage in global nuclear war. and ballisticad missiles, land-based plastic missiles. i was in the aircraft business. that is when

it takes on china's cheating. and it puts in and to rewarding companies with tax cuts for shipping jobs and factories overseas. we would also put in place stronger buy america requirements for all taxpayer-funded projects. i have written buy america legislation because i strongly believe american workers should build our infrastructure with american products, and taxpayers' money should not be spent on iron and steel from foreign countries, like china and russia. my buy america reform passed the senate last year with bipartisan support. but when it got to the house, foreign steel companies bought washington lobbyists to kill it. speaker ryan and majority leader mcconnell gave them what they wanted, and american workers were left behind again. in april, president trump came to wisconsin and announced his support for my buy america legislation. the congressional republican leadership continues to stand in the way. america and their workers deserve a solid commitment from us on a strong buy america standard that rewa

dangle a carrot for china. campaign hee pledged to label china a currency manipulator and we saw in april he backed down from that. he said he got cooperation from president. economic policy is being tied to foreign policy. david: how radical change is that? that notion of using trade as a weapon. is this something we haven't seen in a while in the u.s.? it doesn'the issues address and that previous administrations have done is that there are some big issues to deal with with china. thee's overcapacity in steel industry. there's market access that american companies would love to have into chinese markets. there is an issue of ip violations whether it's trade theft or other things that happen slowly. you have to work on these issues. andhave to have discussions make some progress. something reward is at least publicly we don't see very often. there was that dialogue in washington just a few weeks ago. and economic dialogue in which we didn't get a plan forward for more talks, more conversations about this. has

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.

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. this vast area consists of china and four other provinces. to the north is manchurian, huge and desolate, but abounding in -- abundant in raw materials. next to manchuria, mongolia. here lies the gobi desert, a vast plateau twice the size of texas, inhabited by nomad tribes who lead their caravans back and forth over ancient trade routes. to the west, tibet, the icy roof of the world. its borders encompass the eastern and of the himalayan mountains, a mystery land that few have entered. and from these vast mountains of the west rise the three great rivers. the northernmost of these is the yellow river. far to the south is the pearl the seahich enters pass, the great parts of hong kong. the greatest river of all is the one that flows between, the yangtze, winding for 3000 miles through the heart of china, bringing fertility to the good earth and bearing upon its broad waters

. >> back of china was leading the pack. they sell their net income increased by 23% in the second quarter. they are one of the top four banks. three all saw and average net income increased around 3.5%. as you say, the strong or robust economy here has helped, but it's really the net interest margins that have been pushed up , as a result of the interbank lending. up rates being pushed benefits the big banks and not so much the small banks. in terms of other things we been looking at as well, nonperforming loans. we have a chart that shows what is going on since around 2010. 2010-2017 is the time range. we seenast 12-24 months it pickup and then start to level off. lower.ios have ticked between 1.4% and 2.2% for the big four banks. overall the nonperforming loans ratio is around 1.72. at least each reject or is going in the right direction. the other point of interest, we've seen the flipside, more traditional loans have picked up quite strongly, suggesting the government is having some success in the leveraging the credit

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 seeing you mention 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 twenty sixteen which banned the export of gold very dmn 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 it's fungible y

also in china. yes, there are sites that are blocked, more so in china than ,n russia, but 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. that is another factor of great importance. one other thing is, whether this president trump is a symptom or a cause of a shift in american thinking about world order, at least some of his statements have called into doubt two of the very important pillars in which the liberal order that the -- mainly,y created alliances. the issue has been raised. multilateral trade agreements, they were also an extremely important part of american policy. will there be a reaction to this? is this a symptom of longer-term change? the middle of change, you don't know what is transitory or long-term. i think those are issues we have to confront. , save foruestion is u.s. policy or for russian or chinese policy, what kind of world order do we want? what kinds of re

in part because china is the greatest trading partner. china has two principal interests -- three principal interests here. number one is they don't want a flood of refugees for north korea into northeast china. and the tighter the sanctions, the greater the likelihood of some collapse that would unleash millions of north koreans into china. number two is they don't want the collapse of the regime which would lead to a south korean and u.s. expansion of our domain and move us closer to china's border. and so they don't like that option. and they don't want warfare, but they would like the united states to leave the korean peninsula. so they are like a guy with a skeleton key jiggling the key in the lock trying to make the lock turn. they have pressure on the united states, pressure on north korea, there is a risk of war, they have their troops mobilized, they are ready to to go into north korea if possible with their troops that are next to the border. and they don't -- they just don't know what the right answer is, but they have brought

the downside risk is china. there are doubts on whether china can sustain its growth. the government trying to put a lid on the credit bubble. don't forget the anti-globalization settlement -- sentiment. that remains. policies of the u.s. government, ongoing brexit negotiations, who knows what the tensions in the korean peninsula may bring as well. rish, haidi. one company listed in singapore is noble group, posting a first-half loss of $1.9 billion. net debt surged by almost $1 billion. it is putting pressure on this company. jim, what did you make here of these earnings? we could ask you about the highlights. were there any? >> i suppose when you talk about highlights, they are in relation to what the prophet was. the highlights, maybe we should call them the low lights. in the second quarter, they had billion, and $1.75 that was $1.3 billion of exceptional items, most of that related to net valueon ford -- gains on ford contracts. is what i highlighted as an inflated value of those contracts. it seems that the one thing to take away seems to be the new brooman is ta

leading environmental activists and journalists in china. when my friend liu jianqiang said he's becoming a buddhist, particularly a tibetan buddhist, i was very curious about why. we'd already decided we would make a little documentary that would sort of show people what it is that has attracted him, but when i asked him just in shorthand, you know, what is it that you're looking for in a religion, in a faith, in a culture? and he said, well, you know, for 15 years, he said, i've been reporting on the environment, and in that time, everything is still getting worse. so you begin to feel like what's the point? you know, we're exhausted, we're burned out. and he said i needed something more enduring, something for the longer term, something that would allow me to have a little bit more faith in my own work. well, i asked liu jianqiang, how would we show people what it is about the tibetans that really appeal to you? and he said, well, you should just go talk to one of t tibetan monks, the kind of person that i t all the time up there. so, you

none of the local homes and china -- none of that local companies and china have that. we try not to engage in any direct competition. >> a lot of chinese companies have obviously in the last few years, rushed to buy overseas land and assets may be getting around. some of the capital controls that were in place. do you have such ambitions. s. the want to use that to buy overseas brands? our main focus is on the chinese markets. we have been actively looking for good opportunities over's these but we will only consider mergers and acquisitions in the same sports as business rather than crossing over into irrelevant industries. i believe there will definitely be opportunities for us to make m&a deals in the global market. >> how about growing your own brand overseas? you still trail fila, nike, adidas. fila is more known then anta in china. >> our goal in the next 10 years is to become an international company, through either m&a or introducing our products to the wider market. share in the international market and we think it will be higher than it is at present. >> can

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 maritime challenges in the east china sea and south china sea from china are also right in japan front yard so this is no longer an alliance that is primarily an alliance but it's on the front lines. that has changed japanese politics and policy and strategic thinking and it means that we, on the us side, have really a responsibility to understand how the product looks and the threat looks up close in japan and japan is also one of our most important global partners and the alliance for decades we talked about as a global alliance that i can tell you from my time beginning a decade ago when we go into the g-7 or meetings were more aligned with japan than any other country. it's more complex and more comprehensive and we have less relative money to spend in japan is on the front line. need to share strategic investments and former chief of defense forces and commanders and so forth perfect to contribute to that dialogue. most importantly, msf, military statements has established itself in washington as a legitimate international security because it has a tla, three letter acronyms

did, that china would come to their aid. >> well, i think that's china's play here. that's a huge concession on china's part, for them to say if they strike anywhere in american territory, that china will not stand by their side. and at the same time, a message to us from china, is if we preemptively strike, then they will come to the aid of north korea. i think that's china's perfect place for them, and it's not a bad place for us, because it could keep in check north korea. and i just want to go back to what one of your other panelists said. the last thing this administration needs to do is mirror in any way, shape, or form what the previous administration has done particularly with respect to north korea. this messaging and this synchronization of the elements of national power are what are getting results for the united states right now, and we cannot have the proliferation of weapons of mass destruction as we had in syria with chemical weapons. now we have with nuclear weapons in north korea. china is the key here, and that's why the president is talking to them

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

china recognizes we have to compete. america has to engage with the world. >> this will not be conflated? >> certainly. the operative word is not punished. the operative word is to compete with not just china but with all countries. what the president is doing is everything he can to ensure a fair playing field, to make sure that american workers, american businesses are not disadvantaged by the theft of intellectual property. >> you can and steve bannon work together in this white house or not? >> i get to work with a broad range of talented people. it's a privilege to enable the national security team. >> you didn't answer. >> i am ready to work with anybody who will help advance the president's agenda and advance the security, prosperity of the american people. >> do you believe steve bannon does that? >> i believe that everyone who works in the white house, who has the privilege, the great privilege every day of serving their nation, should be motivated by that goal. >> general mcmaster, thanks for coming in. appreci

how much offshore china you want versus mainland china and em? the onshore story is very compelling. emerging markets generally, there is a valuation case to be made there, and you have had, in places like brazil, south africa, so many upset that hampered investor sentiment over the last couple years, and driven positioning to low levels until recently. the backdrop for emerging markets as a consequence is now actually reasonably positive. you are starting to see the earnings recovery, and it is not such a crowded view yet. manus: no, it is not. the crowds are still huddled in europe. they have taken the boat from america, and perhaps to a certain extent, under-expose themselves to the australasian story. tim: absolutely. and generally speaking, the last 10 years, that is the case. you are going to the safer, developed markets and avoiding emerging. and now we were starting to see the notion that volatilityrket's fx is well under developed markets. these little idiosyncratic risks you see in individual countries does not mean you just blanket -ce

if china started to behave ala teddy roosevelt, nobody we're simply say, that's just china being china. and it will be fine. when we are of the junior partners and they're the senior partners. relax, let's worry about russia. >> i agree. the brilliance of the british accommodation was that they first distinguished between what was vital for britain. they wanted wanted to keep their empire, including canada. the u.s. could have taken canada and teddy roosevelt was interested in british columbia, so he looked at that more than once and the british were aware that the u.s. looked at it more than once. but they noted what it vital and what is just vivid about which we can adjust to. they tolerated behavior that would otherwise be -- certainly crude and unreasonable and unfair but nonetheless they helped the americans to see that american interests, british interests were actually in terms of more support in there quite aligned and there was the cultural similarities you mentioned, and then, therefore, by the time world war i comes, the u.s. is the natural supply line for britain. brent wou

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

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

he said he thinks china will. he even suggested he'd give china a better trade deal in return. cbs news correspondent ben tracy is in beijing. ben, how likely is it, do you think, that china will step up? >> reporter: it's not likely on china for about 90% of its trade, but it's unclear at this point how much north korea will even listen to what china says. in fact, the regime is very upset with china because it went along with those tough u.s. sanctions. now, theoretically, china could cut off north korea's oil supply and eventually that could cause the regime to collapse. but the fear is that you would then have refugees streaming across china's border, and that's not something that it wants. even more so, if there is a war on the korean peninsula, china believes that south korea and the u.s. would eventually win that war, and the u.s. military on china's border is not something it's going to tolerate. >> mason: ben, what about china's relationship with this white house? >> reporter: well, i'd say it's complicat

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

we have been investing a lot to china lately. chinese travelers are going all around the world and they are the fastest-growing segment and number one spenders in international travel. we are running a big campaign of their right now. a lot of our growth in singapore and elsewhere is a result of chinese travelers using airbnb to explore the world. these,have airbnb one of be's,ikes of -- want to the likes of expedia merging with another company, today has over 450,000 listings and growing. you have been completing with more players. >> there is local competition in china, focused on domestic travel. our focus has been on international travel. we have been marketing airbnb for a way for the chinese to explore the world and we have over a million homes in 21 countries. none of the local companies and -- competitors in china have that. we have made sure to play to our strengths and not to engage in any direct competition. >> a lot of chinese companies have obviously in the last few years, rushed to buy overseas brands and overseas a

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

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

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

that carrot sticks can come from china and china has very very powerful sticks in the form of the food and fuel which they are providing to cutting that off would be a very important disincentive to north korea to get china to do this which they've never been willing to do in the past we need to work i believe quietly with china. to come up with a joint diplomatic strategy where we provide the carrots and they provide the sticks and to do this they need to be assured that we're not going to take advantage of the situation results from that because they do not want to see a collapse regime in north kivu korea they don't know do not want to see military troops up to their border along the yellow river so in a diplomacy the first step then in diplomacy is diplomacy with china where the united states and china have to be able to agree on what the goals of the diplomacy are and then to agree that. coercive diplomacy diplomacy as difficult as it might be could head off a far worse situation on the korean peninsula situation which certainly china does not want they do not want a war and korea

look no further than the island china has built in the south china sea. or their expansion into africa where they just constructed their first overseas military base in djibouti. or what about the theft of intellectual property, and other trade violation? since joining the wto, china has flouted every rule that exists, devastating american manufacturing and mildly distorting the marketplace. so don't you think we should 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, china supplants the u.s. as the world's dominant economic and military power. it is time to face the hard facts. the only country that can change north korea's behavior is china, and until we get more leverage over china, our ability to change the dynamic with north korea will be extremely limited. patrick ran field as a lecturer at georgetown university and served as a speechwriter to obama's defense secretary, ash carter, and h

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