the latest breaking headlines from c"cnn newsroom." we all want a bargain. does chasing cheap come at a high cost for american workers? christine romans as the answers. "your money" starts now. >> china is on a buying binge, and it wants one of the last things still made in america, our food. i am christine romans. this is your money. call it china inc., chinese companies working with the government buying assets around the world. natural resources, technology, ports, real estate, and now the u.s. food supply. this week a chinese meat producer agreed to acquire smithfield foods, the world's largest processor of pork. that deal valued at at nearly $5 billion would not biggest purchase ever of a u.s. company lock, stock and barrel by a chinese buyer. it is just the latest example of china's buying spree in the u.s. chinese investment in the u.s. is headed for another record year. as of april about $10 billion worth of deals were pending.

last year the record was nearly $6.7 billion. we already know china is the biggest foreign buyer of u.s. debt holding more than $1.2 trillion in u.s. treasury. now the government may be targets u.s. properties. the wall street journal reports the manager of the currency reserves is setting up offices in new york city to explore alternative investments. we're talking about real estate, private equity, u.s. assets. whether it worries you or not, china has an economic strategy. america lurches from one manufacturing crisis to the next. america doesn't even have a budget. china has central plans. the united states has central bickering. how can we compete? peter navarro, a prefer at u.c. irvine and author of death by china and lee, a professor at nyu. let's broaden it to the bigger picture. have you a government report this week that found that chinese hackers gained access to the u.s. military secrets. what is a bigger threat, china

hacking or china buying up u.s. assets? >> well, both. when the chinese buys up our bonds, for example, they enable to use their political power to stop us from, for example, not branding them a currency manipulator which is basically translated in the loss of 5 million manufacturing jobs and 25 million people unemployed. the hacking itself, i don't understand why we as a country would allow china to basically have their way with not just the pentagon but also our businesses and our homes. if your neighbor came in at night and stole everything from your house every day, you wouldn't be friends with that neighbor. china, the latest report -- >> if the neighbor owns the mortgage on your house, if the neighbor is the one that gives you the mortgage on the house. >> christine, the problem is as you point out, look, we're getting deeper and deeper into debt with a country that does not have our best interests at heart. this is not canada. this is not great britain.

this is not europe. this is a country which is growing the biggest military in the world and every day it is hacking our piers morgentagon. >> they say they don't need to hack us and they can do the things on their own and we're delusion ago to think they would try to get that. >> we buy the most hacking technology than any other nation to spy on other nations. we do plenty of the same thing that china does. this is really about the two elite groups coming together to work out what sort of rules of the game they want to abide by. it would be very difficult for us to preach and tell them you can't do this if we're the biggest offender, and so we need to have a strategy about how we want to approach this in the smart way. >> i think the thing that concerns the people at the pentagon is we have the military

secrets to be stolen,ing there resident military secrets we're stealing from china the playing field, chinese eager to level the playing field and the u.s. eager to keep its own stuff inhouse. >> true. i would say that we are more advanced in many of these things, but let's not for get that china also invests a great deal in r&d, and companies like huawei, for example, spend so much of their budget on r&d now that they file more international patents than many other of their competitors, and this is how they have been able to dominate the telecom industry and beat out erickson as the number one. >> it is so interesting. you talk about the rhetoric that the political, different political cultures of the two countries, it is fascinating to watch. last word for paranoid peter navarro. >> more like outraged peter navarro. ann lives in a very different world than the real world here on this matter because the u.s.

does not steal intellectual property from other countries. china excels at stealing intellectual property whether it is weapon system or whether it is google source code or anything in between. they're the biggest threat right now to this country in terms of our long-term economic future and a lot of the reason is because companies like huawei and others steal our stuff. for us to put up with that, it is outrageous as outrageous is the stuff that comes out of ann's mouth on this issue. >> i will loo he have it here and say the chinese government and the chinese foreign ministries and the companies have all said again and again for years as i have been covering this that they do not do any of this. that's the response from those companies >> never. >> and the government -- >> never. >> so many predictable things coming out of peter's mouth, too. >> let's discuss it again. i found it rather unpredictable. thank you so much. have a great weekend. the chinese just aren't buying

big u.s. companies, they're also snapping up statue of liberty hats and the model of the empire state being and how the rise of china is putting cash in the pockets of americans here at home. hoo-hoo...hoo-hoo. hoo-hoo hoo. sir... i'll get it together i promise... heeheehee. jimmy: ronny, how happy are folks who save hundreds of dollars switching to geico? ronny: i'd say happier than the pillsbury doughboy on his way to a baking convention. get happy. get geico. fifteen minutes could save you fifteen percent or more.

it is not just chinese companies and the government on a shopping spree. did you know that chinese citizens are spreading their cash around the globe?

they took eight times as many trips last year as they did in 2000. the chinese citizens out spent every other country. richard roth is here to explain. >> hello. summer weather has arrived in new york city after a chilly spring. >> it is hard not to run into chinese tourists on the sidewalks of new york. large chinese tour groups are everywhere and ready to spend. from lady liberty in new york harbor to the top of the empire state building, the chinese tourist is ever present. >> translator: we actually see new york city all the time in the movie and tv, on tv, and we really wanted to come here. >> how come you don't have a sign in mandarin saying beijing this way. >> because beijing is here in

new york city right now right here with us. >> first it was china eeds business traveler and now relaxed visa rules and a strong economy back home brings bus loads full of vacationers. >> it is clearly an incredibly growing market. over the last year we have grown about 22%. >> now we're driving to the eastern part of manhattan. >> 40% of all chinese visitors to america come to new york city. >> i love new york. >> we're on the east side, and this is the east river. >> every single chinese people have heard about new york when they heard about america, so we just want to come and see. >> reporter: would you be interested in buying a piece of the brooklyn bridge? i can sell you that. that is a new york tradition. >> if i can, sure. >> reporter: l & l tours shows them a good time. ten years ago tourists brought their own food and didn't want to buy anything. >> the purchase of power has grown dramatically. now we have the customers who

are here to buy ipad, ipod, different computers, and all of the luxury brands. >> i know they spend 10,000 dollars by shopping. >> luxury good stores make sure to have mandarin speaking employees to watch out for the growing clientele. >> we sent key members of the marketing team to china in order to reach out to the different groups that are organizing tours to come to the united states. >> reporter: one they spent in travel surpassing the u.s. and germany. any final thoughts? >> welcome no new york city. >> reporter: stores and hotels here cater to the chinese clientele with special rooms on lucky floors and breakfast thrown in and shopping is number one. for the visitors. new york hasn't had complaints

about tourist behavior but this week in china authorities were furious when a chinese school boy defaced an ancient egyptian temple in nanjing. in april they established a new law that warned tourists against uncivilized behavior and they say the vacationers should be more polite and don't spit and don't talk to loud. sounds like what the neighbors in my apartment building tell me. always good behavior when you go anywhere as a tourist. >> absolutely. t so many of the ceos of the leisure and hospitality companies, they have been studying what kind of rooms, what kind of amenities, so they can cater to that growing middle class there. so interesting. richard roth, thank you. up next, the u.s. economy may be improving. could today's recovery have a dark side? ♪ if you have high cholesterol, here's some information that may be worth looking into. in a clinical trial versus lipitor, crestor got more high-risk patients' bad cholesterol to a goal of under 100.

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americaning with jobs and struggling with stagnant wages. getting the best price may come at too high a cost not only half a world away but here at home. >> capitalism, meet your conscience. here in the u.s. once secure jobs that paid a living wage and offered a hopeful future exported abroad. today one third of u.s. workers make less than $24,000 a year. what's left for america? crestingly only low wage work with no benefits and no way to make ago living. that's not all. colleges, the most american of institutions historically open to all increasingly out of reach for many. 7 million students are bracing for a surge in their student loan rates. tuition is sky rocketing right when high paying jobs are

dwindling, the one vehicle that helped generations of americans raise them out of poverty and build wealth in our society is now a pipe dream for too many. capitalism, this is your conscience speaking. are you listening. >> terri is the author of the savage truth on money. elizabeth kline is the author of over dressed, the being showingly high cost of cheap fashion. they were buying cheap manufactured products from around the rest of the world so wages were stagnant but you could still fill your house with stuff. maybe you had to borrow money to send a kid to college. you could still finance a new car. we were building this life, helped with labor from around the world. walmart has been criticized for not signing onto a global pact to improve worker safety in bangladesh.

now more than 100 employees are walking out and they raised money to bring two bangladesh garment workers to a shareholder meeting next week. they sell the stuff to make the middle class feel better and it is made with people who are working under conditions i think most middle class families would not abide by. >> right. i wrote a book about the fashion industry and one thing that was so shocking to me is that if you look back, as recently as 1990 we made half of our clothing in the united states. now we make between 2 and 3% in the united states. the garment textile industries were two of the fastest dying industries of the last ten years, and that job loss has been felt acutely. we don't make the connections as consumer when is we walk into walmart and buy the product from bangladesh. we're not thinking, oh, i am not supporting a job in my community or in my own country, but really we do need to start making those connections. >> you really don't have a choice, right? sometimes people blame the middle class and they want cheap and they want to live high on the hog but you're not given a

choice. it is not like you go to a store and in this lane you pay more but you know it is supporting a middle class job wherever here or somewhere else. you can't go here and say this will cost more because it is made and the water isn't being poisoned and here you can pay cheap and somebody will die in the rubble of a factory. >> when you look back 20 or 30 years ago we could choose between a domestically made product. >> we chose cheap. >> what we're seeing now is a turning point where there isn't an increase in domestically produced clothing. there are moreth cli sourced fair trade fashion brands, so in the next couple of years we will see more consumer choice in the market and what's going to be interesting, the turning point in this issue. >> shopping, fast fashion, shopping in places like walmart, every day low prices, it helped americans have more when they're earning less. that's what those companies say.

they say we make the middle class better and stronger because the middle class can have these things. is it as simple as that? is that the trade off we made? >> well, no. the interesting thing is that's true. it is true ever since the industrial revolution. we can make products more efficiently and less costly, and free up resources of the family either to work less and have more leisure or to have more things. if you have less expensive clothing, it is a benefit to the american family. what i think elizabeth is correctly pointing out is that we're in this fashion frenzy, this instant disposable fashion, and i agree that as we understand the drain on our resources and the frenzy of stuff we use, throw away, that goes out of style, that we are actually financing with debt, that that's not apositive thing. >> let me point out, when we take a look what's going on in the factories in bangladesh, we are exactly 102 years here in america from that horrible

tragedy the triangle shirt waist fire that took place in a sweat shop in new york city where american young girls were making clothing at the same kind of low wages that we saw now around the world. not to make it say it is right. what i am saying is that maybe as our conscience becomes more aware we don't have to follow fashion frenzy. we will take advantage of the lower cost of things but buy them more sensibly. >> it is about fixing the mess you made big conditions. that's the message. >> exactly. >> nice to see both of you. coming up, your mom, your aunt, even the president have told you about the importance of college. >> you're going to need more than just a high school education. to succeed in this economy. >> if you're from a low income family, how do you pay for it? we'll show you one solution next. [ larry ] you know throughout history,

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about the importance of college.

the supreme court expected to make a decision soon in an affirmative action case. they could outlaw any consideration of race in college omissions. opponents say they should fk us on a different kind of diversity, income diversity. 70% of students at elite colleges come from the top income quartile. those are top earning families with all the spots, 70% of the spots at top earning schools. they out number them 14:1. why aren't the low income

students getting into the best schools? turns out they're simply not applying. >> i grew up in washington heights. >> she didn't grow up with much, but she always excelled in school. >> my sat scores were around the 1400s. >> her small high school in the bronx had limited resources. >> we only had one school come and visit which was mercy college. everybody in my class applied. almost every got accepted. we're like, all right, we have never heard of this school, but if they're all accepting us, why not? >> according to a new study from the brookings institution, only 34% of top low income students apply. the college she went to wasn't the right fit. after the second semester she dropped out. >> i wanted to go back a few months after i left mercy. everything happens and i was working full time, and i got pregnant. >> low income high achieving

students thrive at very selective colleges and universities once they get there where as if they attend a non-selective post secondary institutions that they tend to apply to, they have about a 50% chance of graduating on time. >> meanwhile, she is still paying off her loans. she says she didn't have enough information to make the best choice. >> i heard about scholarships and opportunities you can get and i would research but there are so many out there. i never knew which would fit me. >> for very high achieving low income students the more selective the college or university they attend, the less they will pay. >> a lot less. the most competitive colleges have more resources and can offer more scholarships so low income students usually don't come even close to paying that scary sticker price. >> i understood that i needed to go to school for free because my parents would not be able to afford it. >> fausto grew up in harlem. >> there were often shootouts while we were walking down the street.

there was actually a drug factory essentially right across the hall from my apartment. >> he always dreamed of going to columbia university. >> i remember saying i want to be here. i want to come to columbia. i think my mom chuckled at the time. >> thanks to the gates millennium scholars program he was able to get that ivy league education for free. >> i don't have loans. all i had to do was concentrate on my studies. >> it is important to apply to some of the most selective colleges you can get into if you are a low income high achieving student. narrow in on a set of colleges and apply to several. if are you a low income student you can get application fee waivers so you should not have to play application fees. >> it has been a transformative experience in my life. i may still live in harlem and i know i now understand harlem a lot better. >> fausto is giving back to his community. he works for a new york city organization helping kids get into top schools like he did and laura is planning to head back to school in the fall to make a

better future for her young daughter. this time around she is applying for lots of scholarships. thanks for joining the conversation. we're here every saturday 2 p.m. eastern and sunday at 3. until then you can find me on facebook and twitter. they're innovators, game changers, people pushing themselves and moving us all forward. they're the next scientists, musicians, poets, the next makers, dreamers, teachers and geniuses. they are the next list. >> i am dr. sanjay gupta. today on the next list two innovators worlds apart. dan agoglia takes on health care and turns his once humble village into a medical boom town. first a look at beauty innovator fran ses co-clark. >> clark's botanicals is one of thos