"inside story" is next. we continue the track the developments out of ukraine and involving the president and the troop levels in afghanistan, 9800 by the year's end. the chinese leader and the russian leader sharing a toast? the biggest energy user and the big energy producer have a deal and share an appetite for occasionally united states. is their deal a big deal? it's the "inside story." hello. i am ray suarez.

after the brack-up of the sovi t union, the largest republic, russia was in freefall, influence in decline, life expectancy dropping, national self-evide -- self-esteem takin beating. china surged and became an engine of the world economy. china sucked in resources from every corner of the earth and sent out ships piled high with finished consumer goods. in big tower turns, the u.s. still had an open field to run in during the 1990s. nato expanded east into the old warsaw packet. parts of the empire joined the union. china became washington's banker buying a prod i knigious amount of american debt but was not in a world power like the world meant it in the days of the cold war. now, it's the u.s. having trouble working its will in the

world, china making new friends and buying new friends in africa and latin america and russia undergirding its economic by selling natural resources for top dollar. >> it took 10 years to cut a deal, but china and russia, two world powers and formerly bitter rivals came together when their energy and political interests merged. they both got what they wanted and needed including the visual message that the u.s. is not alone in dominating the world stage. vladimir putin called it epic. >> this will be the biggest construction in the worlggerati gas production and chemistry, a helio factory. >> the 30-year agreement between russian gas giant gazprom and petroleum corporation is involved at

$400,000,000,000. a pipeline will move gas every year through siberia to china's populous northeast. a second pipeline to the western prove convinces is reportedly in the works. chinese president trumpeted the growing friendship with putin's russia and the power of asia. >> translator: the asian nations are members of the big family of asia, and we should sher issue the opportunities of development which are hard to win. we should go hand-in-hand to consolidate the good developing trend in asia. each country should, while realizing its own growth targets, push forward the unity, cooperation of the whole of asia so asia can realize its own glory as early as possible. >> the question is: why this? why now? for russia, the answer may lie in ukraine. russia's pipeline causeway to

the european market with europe threatening sanctions and thinking about new sources of natural gas, vladimir putin is looking for a new market, and russia needs the money with its economy teetering on the edge of research. what does china get out of this? for one thing, a good bargain locking in a price point what rope pays for russian gas. china's appetite for energy is enormous and growing. in 2000, china consumed half of the energy of the united states. in 2009, china passed the u.s. in consumption and last year became the world's number 1 oil importer. china also burns more coal than all of the countries in the world combined. the deal with russia would represent 15% of china's energy needs and allows china to diversify the sources and in the long-term could help ease the horrible pollution problem from the burning of fossil fuels. what message does the china/russia energy pack sends

to the united states? the state department downplayed it as a routine busy story. >> energy is a global market. and there are negotiations about deals happening all over the world pishly between major consumers and major producers, and that looks like -- it looks like the discussion was about exactly that. >> vladimir putin has been promoting his vision for a new russia that's second to none. it was on display at the winter olympics in sober. after outrage in the west over russian annexation, this deal raises the profile of putin and russia on the world stage. this is the biggest energy deal russia has made since the break-up of the soviet union. china is also unhappy with the united states. while it holds the largest investment in u.s. debt and is america's third largest trading partner behind canada and mexico, china has concerns about the united states' full-throated

military and economic backing of old friends in asia, including scrapan. the u.s. expressed concern over china's aggressive actions in disputed regions of the south china sea. recently, the u.s. made the unprecedented step of indictmenting members of the chinese military for hacking american corporations. . >> the post cold war years have given way to something new: time to redraw the power map of the world. in the united nations, in the south china sea, in venzuela, cuba and sub is aharan africa. foreign policy intellectuals have been talking about a multi-polar years. does that picture that shot around the world of a toasting shi and putin signal that it's here? joining us to discuss the significance of russia and china's gas deal are, from don ver, professor su shun

jow, director for the center china corporation. david sedny, deputy secretary of defense for east asia from 2007 to 2009 and in moscow, a research fellow at harvard's geo politics of energy project. david, let me start with you. i mean we have a state department spokes woman talking about this as a routine busy deal and the president of china talking about asia realizing its glory. how should we understand this? >> it certainly is a business deal, but it's a business deal with huge strategic implications. we have got a situation here where there is a fund mentioned realignment of the great power structure going on. and this deal is an inflection point in that. it's important for russia, because it gives it a counterweight to the europeans and u.s. sanctions that it's under now. it gives china hope for the future,

that it's energy costs won't continue to balloon. the u.s. is gaining an advantage in shale gas. the chinese easy see that. there is talk of reshoring of manufacturing from china to the u.s. by the time this gas begins to flow in 2018, the united states will probably be the biggest oil again. advantage. in addition to all of the points you made in your report, ray, i would add that the chinese are very strategic. they look ahead not onor two years, five or 10 years. and this very good price they are getting from the russians on gas helps cement china's am? growth for years to come. >> is this more than a routine business deal? >> i think this is mainly a commercial deal, but it has high implications. it was scratchily for russia to find a new marketcruelty for ru find a new market >>

it was enhanced after the crimea crisis. if you think that 82% of russia's extra ref notions depend upon hydro car bons, russia is desperate to find another market. china is a natural answer. so, it is important but it has a strategic value as well. c value as well. >> professor, is it possible to overthink this? i mean, china needed something. russia has it, and it may be we are making a mistake in overreading this? >> i think it is much bigger than normal business deal. if it was business deal, it would not sign as a high-profile deal. there are a lot of questions about if he would reach the deal. why they reached that deal? both countries feel they have to reach this deal at this strategic moment. >> for russia, as mentioned earlier, they had not a lot of problems. on china's side, in fact,

china, at this time, they need russia on their side because they have so many problems with the united states. the balance to asia pacific, japan, vietnam, philippines under territory y'all disputes in the east china sea and now, the indictment of officers. the chinese president thought the u.s. now is fighting a war with china. china has to find someone on its side. in this context, i see, as someone mentioned, the multi-polar world is coming for sure. in this multi-polar world alignment and alliances are very important. in this relationship which performed in the 1970s and '80 did, the third power is another

nation. now, the u.s. is in isolation in this power game. u.s. has to wake up to the reality of the multi-polar world. the u.s. is no longer dominance. u.s. has to find a strategy to deal with this. in fact, i think u.s. has to find a way with both china and russia. if the u.s. work with both together. it's very strategic. >> do you agree with the professor, david? >> on the importance of it. but i would expand his definition. there are two other powers that are really relevant. the first is europe, which is still feeling its way as to whether it's going to be a real power or just a collection of states. and the final, the other one, is india, with the election of a new -- i predict very strong prime minister. india is growing rapidly economically and will play a beg role in this future multi-polar world. the playing pieces are multiple. the ability of nations to

successfully navigate that knew geo strategic reality is vital. right now, it looks as if mr. putin and president shi are doing a pretty good job. >> we are going to take a short break right now, and when we come back, we will talk about whether china got the better end of the deal because of russia's worries about its western markets. stay with us. this is "inside story." >> i'm ali velshi, the news has become this thing where you talk to experts about people, and al jazeera has really tried to talk to people, about their stories. we are not meant to be your first choice for entertainment. we are ment to be your first choice for the news.

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did flawed lab work take away their freedom? >> i was 18 when i went in... when i came out i was 50... you don't get it back... >> shocking truths revealed >> the system with joe burlinger only on al jazeera america welcome back to "inside story." welcome back to "inside story." i'm ray suarez. on this edition of the program we're talking about the 30-year, $400 billion natural gas deal between china and russia. china needs the energy, and russia needs a new market. if it's a win for both, what does it mean for post-cold war geopolitics and the bigs business of energy. there's some talk it wasn't a great deal for russia, more like a desperation deal because china locked in a great price for so long.

>> yes. some speak about that. they speculate about that. i think that's right. russia is increasingly desperate to find a new market, and probably russia was willing to concede on a lot of issues due to that fact. in fact, putin and his entourage considered it. from a long time from russia's perspective the western route was the favored one, while in 2013 russia was willing to concede and accept the eastern route, which would target the chinese northeast market which is the most popular one and most developed one. that was one concession. second important one was the equity stakes with which the chinese would acquire in eastern siberia and the far east. so i think there have been some concessions from russia's side in order to stimulate this deal and make it a proficient moment from the political side, but what underpins the deal with economics from both sides.

>> professor, you've heard vladimir putin talk about a euro-asian union and about looking east. when china looks west towards russia, does it see what putin sees? is there a shared vision here? >> i think so. in fact, that reminds me of something during the cold war. there was two alliances. one is the continental euro asia, china, russia for a while and other continental powers. the other is marine time asia-pacific. in these new things, we see that type of power competition coming back. china and russia are the largest continental powers. they come together. in fact, many people had a lot of suspicions, myself included. these two strange bedfellows would not come together. in the last few years, more than a few years it's amazing to

nonobservers. these two countries have come together economically, strategically and also militarily. look at the military exercises these two countries conducted in a few days. not a few days. in fact, there was in the water nearby the disputed china-japanese territory. that means russia is back into the chinese claims, and china supported russia on many, many fronts especially on the front against the united states. so i really see a strategic re-alignment taking place in the global stage on the asia-pacific, and the chinese president talked so much in the last few days that asian affairs should be handled by asians. asian problems should be resolved by asians. here they're they're sending a big message. that is, beat americanization. china tried to get asia to be handled by asians.

russia and the united states is a pacific power but not an asia power in the chinese mind. russia is euro-asia power, so china is working with russia to reconfigure rate the 2 1st century power politics. >> is russia conceding it's a junior partner? this is a country never able to make, for instance, consumer goods to satisfy the desires of its own people. it's becoming a mine and an oil derrick for china. >> i think it's possible to overplay this as a deal that has determined the future. i think it's something that has the capability to do that, depending on how it plays out. as you said, russia made some pretty serious concessions on the price side, at least that's what people think today based upon the price of energy. that might not be the case in years to come if this shale oil continues to reduce the world

cost of energy. it might actually turn out to be a good deal for russia from that standpoint because the chinese five years from now may look at it and say they're paying too much. i'd be cautious about the price of energy. it was reached after ten years because putin felt under pressure. does that make him a junior partner? i'd say no. at the same time he made this deal he consolidated the deal with crimea. georgia, moldova, other places in the former soviet union where additional russian pressure might be applied for effectively because they have this deal. those are all possibilities that could lead to russia more effective in the future as a result of the deal. >> given what david just said, i don't want to overemphasize this russian weakness, but we're talking about a country with a

big, empty east that's next to the most crowded country in the world. >> yes. >> go ahead. >> that's right. i've been in russia, which is appropriate since yesterday for this interview, and the observers i've talked to are all emphasizing the fact that russia with this deal hasn't became a appendage to china. russia has received a lot in return for signing this deal. for example, development -- the development of an infrastructure in the far east and in eastern siberia. not only pipelines bullet -- but also railroads and roads are part of the package, which according to moscow is the usually package that china uses when it goes abroad in a country and invests. also, they were very careful to point out that they will not import chinese workers, so the pipeline and the infrastructure projects on the russian side

will be done by russian workers. thanks to probably a large chinese loan. that's for sure. as i pointed out in my research project that i wrote for the center recently. >> we're going to take a short break right now, and when we come back, we'll talk about what the future holds for both these countries and what it means for the united states. this is ""inside story."" stay with us. stay with us. families ripped apart... >> racial profiling >> sometimes they ask questions... sometimes they just handcuff people... >> deporting dreams... destroying lives... >> this state is literally redefining what it means to be a criminal alien fault lines al jazeera america's hard hitting... >> they're locking the doors... >> ground breaking... >> we have to get out of here... >> truth seeking... award winning investigative documentary series fault lines the deported only on al jazeera america r

. r welcome back to nctsed story. i'm ray suarez. china is the world's largest energy user. it imports more oil and burns more coal than all countries in the world combined. it signed a 30-year deal to buy natural gas from russia. on this edition of the program we're talking about what this deal and other cooperation means

for both countries and the united states. still with us from denver the director of the university of dpen ver's center for u.s.-china cooperation. in the washington studio, david sedney. he was deputy secretary of defense for east asia from 2007 to 2009. in moscow moreno, a research fellow at harvard's geopolitics of energy project. professor, can china and the united states remain rivals and not enemies long-term? >> i don't think neither of the countries want to be enemies to each other, because the second largest economies have to work together. but the current international environment from the chinese perspective, they're so worried that they have a hidden agenda. the u.s. will not want to see china rising as a peer power. so we have a lot of concerns about the u.s. intentions.

in this case these kind of deals with russia really put russia in the forefront to confront the united states. they could have policies with the united states. on the one hand working with the united states, and on the other end try to stop u.s. containment against china. that's why chinese people see putin as a hero. china has so many domestic problems they have to handle about pollution, the corruption, economics, all the problems will preoccupy china's leadership. the last thing i think from their mind to have is confrontation with the united states. that's why they talked about building a new power of that power relationship. >> you just heard the professor talk about how the chinese regard vladimir putin has a hero. is he using that newfound power and prestige inside his own country in a way that means russia is an inevitable not only

rival but perhaps once again enemy of the united states? >> well, the deal and the crimea issue are definitely rose vladimir putin's popularity. his approval rate has never been higher. i would disagree with the statement that this means that the new energy-centered china/russia alliance is in the asia-pacific area for different reasons. one of which is simply russia will not defer to the chinese power of that area in the world. russia is helps vietnam to develop its energy resources in a territory which is officially claimed by china. russia is selling weapons to the philippines and to vietnam, so if anything, these two powers are still in competition in that area of the world. i think the united states is going to remain a major power in

that area of the world. >> david, do old habits diehard? do places that are our economic antagonists have to be our enemies? >> no. this is a developing situation. as i said before, this is a re-alignment. there are a lot of cards yet to play, and the future is not determined. could it end up where we are enemies? yes. are we there now? no. does a lot depend on what we do now and in the years ahead? very much so. the role of the united states in asia going back to the hundreds of thousands of people who have fought and died in world war ii to our recent war in afghanistan, the united states has used its power in asia to try and defend our national interests. any effort to push the united states out of asia by the president or putin is one that's going to fail, and we have to make it clear that the united states is going to continue to remain a power in asia but do it in a way that doesn't result in

a long-term enemy among any of these powers. >> can you see how from china it doesn't look like buttressing old friends but this privating to asia looks like attempted encirclement to keep china from becoming a peer power. >> chinese analysts certainly see it that way, but it doesn't have to be that way. we need to find ways to reach out to china as we build a trans pacific partnership with greater economic opportunity for all countries in asia. we need to include china in that and not have china outside of that. in terms of security, we need to continue our strong alliances with japan and korea and others in east asia but in way to open the door so that china will step through. will china step through? a lot depends on china. the chinese people may want, and the chinese government may want more of a space than the rest of

the world is prepared to give them. >> in the united nations security council one of russia's most reliable partners, whether it's iran and nuclearization and syria and the future of war there has been china. must that continue? >> it's been that way for many years. the years in the state department, that was always the case. the two countries line up together all the time. that's the case for a long time. the question as to whether that can be changed goes back to the issue of what other big powers do. europe has a bigger economy, if you take the european union together. india is emerging. the united states and the other countries have to play sk skillfully to balance all the new factors in the world. >> thank you all for being with me today. that brings us to the end of this edition of "inside story." thanks for being with us. in washington, i'm ray suarez.

go, go, go. do it. >> they regain control of an airport from proceed russian separatists. at least 40 people are killed. hello from al jazeera's headquarters in doha. i'm jane dutton. ahead, battling against low voter turnout. reports egypt is extending polling in the presidential election for an extra day. back at base but it was a close call. a team of chemical weapons inspectors come under attack in syria. the western