range of areas to the benefit of world peace and development. president obama: all right, everybody, thank you so much for your patience due to the technical difficulties, and once again, we appreciate your visit and appreciate the dialogue, and we are looking forward to having dinner with you later this evening. [speaking in chinese] [inaudible conversations] president obama: thank you, everybody. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations]

[inaudible conversations] [inaudible conversations] we'll have live coverage tomorrow of the chinese president speaking to the u.s.-china business counsel. that's at 12:30 p.m. eastern here on c-span2. you're watching public affairs programming created by america's tv companies offered as a public service. we'll take your calls covering president hu jintao's day here including tonight's dinner toasts, the first of a nearly week long visit to the u.s.. in about an hour and a half, the joint news conference with president obama and president hu, that's followed by a house foreign affairs committee on relations between the u.s. and china. >> a live view from the north lawn of the white house. we're inside, president obama hosting a state dinner, the

third of his presidency. the guest of honor is hu jintao, president of china. guests include chinese americans, cabinet members, and a number of entertainers. they greeted president hu at the north entrance and then went to a reception on the top floor of the white house. this caps a day of ceremony and protocol in business relations between the u.s. and china. tomorrow, hu jintao travels to capitol hill to meet with congressional leaders. we should point out, three of the top four members of congress are no-shows. harry reed, john boehner, and mcconnell are not in attendance. nancy pelosi, however, is. we're joined in the studio by the senior director of asia and thanks for being with us. steve yates, the president of

the counsel here in washington dc serving in the bush cheney administration for security affairs in the first term of the administration. thank you for being with us. so much at stake with this meeting going on, the issue of protocol and ceremony, but also the business and trade relations, currency and human rights. what will come from this visit? >> guest: actually i think beyond the long list you provided because there's a lot on the security side of the relationship, and from the evidence at this point, it suggests some of the biggest gains are in the security relationship. the chinese had a statement on north korea that acknowledged their rich uranium program and really pushed hard to get the north koreans back to an agreement they signed back in september of 2005, but it violated and on iran they were forward leading. i think the administration was happy with that dimension. if you step back, it might be the main purpose of this visit

was to set this relationship on a more solid and generally constructive track. we've had a very up and-down year. there's a lot of anti-american going on. it helps to have president hu jintao come here and indicate how important a solid relationship with the united states is and why it's on both sides interests, and i think that both men see this as a relationship they have to mana , but we both recognize we get this right, or both of us suffer a lot of losses that should be avaded. >> host: yet, steve, a lot of questions coming up is why give china the platform of a state dinner when there's problems with human rights and debates between the countries. >> guest: that's right.

president bush had a different view. he had a close relationship with president hu jintao and at the beginning of the administration, a similar relationship at the time. he decided to only have a working visit, rather than a full state's visit. this symbolism of a full state visit is important to the chinese. it happened before in the clinton administration, and so from my point of view, you know, i think we look at the world as having changed a great deal. our approach in dealing with china has not changed tremendously. i think secretary clinton raised interesting and powerful questions in the speech she gave last week that summits and meetings are well and good, and the administration has done a lot on that, but now it's time for real results and issues. it's good to have statements on north korea, iran, other important issues, but i think in order for this to be sustaining in a real effective modern

relationship, action needs to be taken, and as fred thompson said, it's not enough to do good, you have to be seen doing good, and when it comes to north korea, iran, and other things, the old way of having a private agreement between leaders, i'm afraid is not carrying enough weight in a modern society plugged into media, congress, and the united states, so i'm hopeful that they will indeed make the progress they're indicating, but i think there's a high standard to show results. >> guest: it's a question on deliverables in a meeting like this. a lot were delivered before the actual meeting. as you're well aware, there's a huge runup to meet like this where it's fast on both sides. if you look at what's happened over the last six months as the meeting was teed up and put on the agenda, there's been stressed military to military relations.

they say china is much more helpful with north korea over the past month. there was a hard negotiation with them over iran, but they helped us. they have become better actors in sudan than they were before. rather than devalue, it's gone up by 6% in the last six months. that's beyond the target we were aiming for. i think in a lot of areas, we've seen a lot of the benefits come out ahead of time in terms of the real actions steve raised. i absolutely agree this has to continue after the summit. it can't build to it and say we got there, now let's back off. you have to follow through on this. i was pleased to see some of the public rhetorical reflections of these shifts in the chinese position in some of the language that came out in the summit. >> host: we'll have some of those in the course of the 90 minutes. boeing has $45 billion in invoices by u.s. companies to

china. >> guest: there's no question, but that is part of a historical pattern, and one, it's very, very good for those companies and those employed. i don't have any problem with their interest in pursuing that, but with an economy with the size of ours and china's, benefits to one company however large really is a way of hiding behind maybe some of the structural issues that have to do with needing more balance approach and better development approach in the united states. i think one of the troubling things in the u.s.-china dialogue has been america needing to focus more about being competitive as america. a balance u.s.-china economic relationship comes about by americans being serious about competitiveness, not because the chinese bought a bunch of boeing aircraft. good for the company and people who maintain the parts, that's fine, but it isn't beginning to change our unemployment figures in a measurable way, and it isn't really going to rebalance

the trade relationship in a way that would take away the concerns that built up over a lot over recent years. >> host: on the day and week in which so much focus is on u.s. relations with the state dinner, we want to focus on the future 30 years after the first state visit with then president jimmy carter. he is in attendance by the way tonight at the state dinner. he arrived yesterday, today's ceremonies at the white house. tomorrow president hu traveling to capitol hill and back to chicago and back in beijing on friday. here's how the day began on the south lawn of the white house as the president and first lady greeted the chinese leader. ♪ ♪ ♪

♪ ♪ ♪ ♪ ♪ ♪ >> host: the ceremony on the south lawn was followed by a series of high-level discussions with u.s. business leaders as he is greet the by president obama and the customary honor guard. our phone lines are open tonight.

202-737-0001 for republican, and you can join us online at twitter.com/c-span. jim who worked in the obama administration, they are keen on protocol and customs. what goes into an event like this? >> guest: you know, the chinese have a detailed, detailed record of every protocoled visit and work end lessly to make this visit special in some fashion. >> host: why is that important? >> guest: well, you know, face is really important in china, so things that convey a since of respect and status are just critically important. in the u.s. we are concerned primarily with what happens in

the room, but the chinese are concerned with that, but also extremely concerned with what happens on the way to the room and how it looks, and who is walking first and how will the people be positioned and what kind of music is being played and so on. it is just utterly extraordinary, but in their culture it signals a lot more than is signals in american culture. they take is seriously. >> host: we heard from congress secretary gary locke when it came to trade, and there was a speech last friday by hillary clinton really outlining the dimensions of the relations between the u.s. and china. was that unusual to have that build up in the state dinner? >> guest: i think every administration tries to have things like this, but this was extraordinary in the number of cabinet members who gave high profile speeches. add to the list the secretary who took a high profiled trip to

the region. it was unusual to have the secretaries of state, defense, treasury, and commerce all giving these remarks in the runup to a state visit, but it's also important to remember there are not but a handful of state visits in any term in office, so you are really only talking about at most three or four in the average term of office. president bush had even fewer state visits, and so there isn't exactly a large record of how many speeches there would be in the runup in this modern media era with lots of outlets. kevin yates who served with bush and cheney and hillary clinton at the state department outlined the dependences of "

>> we are moving through unchartered territory.

we need new ways of understanding the shifting dynamics of the landscape, a landscape marked by emerging centers of influence, but also by nontraditional or nonstate actors and the unprecedented challenges and opportunities created by globalization. this is a fact that we believe is especially applicable to the u.s.-china relationship. our engagement, indeed, i would say our entank lment can only be understood in the context of this new and more complicated landscape. i said when i first went to china as secretary of state early in my tenure that there was an old chinese saying that you're in the same boat, you have to row in the same direction. we are in the same boat. >> host: comments last friday this leading up to the state

visit of president hu jintao. let many ask you about u.s. businesses complaining that china has not opened doors enough. >> guest: there's no question that u.s. businesses at the forefront of the u.s.-china relationship especially large multinationals for two decades now have cooled quite a bit. they are concerned about china's future policies and future openness to large-scale u.s. business activity in china. they seek policies surrounding what the chinese call indigenous innovation. there's a larger state sector, a continuing weak intellectual property rights regime. you put these and regulatory issues together, and they are much less enthusiastic. at the same time, they are scared. they are scared because if you cannot sell on the scale that china alone now offers, they

fear they will not be competitive on a global basis. they, on the one hand, want to do well, but on the other hand, they are worried. what president hu is tried to do is provide reassurance and win back that support of the community by promising to do better on things like not requiring that technology be developed in china at the chinese government when they procure that. we'll have to see what the follow through is, but it's a very, very important issue. >> host: 225 people tonight, and the state dinner includes not only the state dining room, but the blue and red room to accommodate the overflow crowd and the head of the mote roll la, disney, microsoft, what do you take from that? >> guest: it's not unusual. usually there's a pocket of people who are senior

administration officials, senior political leaders in dc, and then you'll have people who are friends of the first family that they may choose to bring in. it is not unusual to have friends who are in the corporate sector or have expressed a particular interest in the country or a relationship. what struck me about the lists is that for the ceo. largest cooperation on earth, the united states, the president has a relatively small dining space actually to keep it only to 200-and something. i think america would be surprised at how small the space is. it's 20 tables of 10. that's not many people. it's a very, very exclusive group, but almost always a blend of high profile figures. you have to accommodate people in the chinese delegation. you have jackie chan come in and

others with social appeal, but at least in my view, this is part of a pattern that dates back to the 90s and probably before. >> host: they will dine on maine lobster and ribeye steak capped off with the president's favorite, apple pie with vanilla ice cream we're told. the traditional toast that took place in the state dining room, we were unable at the white house to carry this live. it did happen just a short while ago. here's more from the state dining room. [applause] [applause] [applause] [applause]

[applause] [applause] [applause] >> good evening, everybody. please have a seat. on behalf of michelle and myself, welcome to the white house. thank you for joining us as we host president hu and the chinese delegation and as we pay tribute to the bonds between two great nations and two proud peoples. [speaking in chinese]

president obama: there are too many distinguished guests to mention all of you tonight, but i doment to acknowledge -- do want to acknowledge a few who have championed regulars between our nations. first of all, president jimmy carter and his wonderful wife rosalyn carter are here. [applause] as well as president bill clinton and my outstanding secretary of state, hillary clinton. [applause] president hu -- [speaking in chinese] [speaking in chinese] president

obama: president hu, we have met today in a spirit of mutual respect. the united states, the oldest democracy in the world and china, one of the oldest civilizations in the world. [speaking in chinese] speaking in chinese] president obama: and while it's easy to focus on differences of culture and perspective, let us never forget the values that our people share, a reverence for family, the belief that with education and hard work and with sacrifice, the future is what we make it, and most of all, the

desire to give our children a better life. [speaking in chinese] [speaking in chinese] [speaking in chinese] president obama: let's also never forget that throughout our history, our people have worked together for mutual progress, and we traded together for more than 200 years, we stood together in the second world war as chinese immigrants and chinese americans help build america including many who join us here tonight. [speaking in chinese]

[speaking in chinese] [speaking in chinese] president obama: chinese and american people work together and create new opportunities together every single day. mr. president, today we've shown that our governments can work together as well for our mutual benefits, and that includes this bit of news. under a new agreement, our national zoo will continue to dazzle children and visitors with the beloved giant pandas. [applause]

[speaking in chinese] [speaking in chinese] [speaking in chinese] president obama: i'm told that there is a chinese proverb that says if you want one year of prosperity, then grow grain. if you want ten years of prosperity, then grow trees, but if you want 100 years of prosperity, then you grow people, and so i propose a toast -- [speaking in chinese]

[speaking in chinese] president obama: to our people, the citizens of the peoples republic of china, and the united states of america, may they grow together in friendship, may they prosper together in peace, and may they realize their dream of the future for themselves, for their children, and for their grandchildren. cheers. [speaking in chinese] [speaking in chinese] [applause]

[applause] [inaudible conversations] [inaudible conversations] [speaking in chinese] [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] >> translator: president obama and mrs. obama, ladies and gentlemen, family, and friends, good evening, i'm delighted to once again come to the united states and pay a state visit at the invitation of president obama. setting foot on this beautiful land, we have received the gracious hospitality of the u.s. government and people. this evening, president obama is

hosting this welcoming dinner for us and has just made warm remarks. on behalf of my colleagues and in my own name, i want to express heart-felt thanks to president and mrs. obama and other american friends for today. i also wish to convey through you the best wishes of the chinese people to the friendly american people and e tend thanks to people from various sectors of the united states who have given care and support to the growth of u.s.-china relations. ..

[speaking in chinese] >> translator: the purpose of my visit is to increase mutual trust, friendship, deepen cooperation positive corporate and comprehensive chinese relationships for the 25th century. in recent years particularly over the past two years since president obama took office chinese-u.s. relations have made strong headways thanks to the joint efforts of both sides. we have increased exchanges and cooperation in a wide range of areas, maintained close communications and coordination on major international and

regional issues and played a positive role in promoting peace, stability and transparency in the asian pacific region and the whole world. [speaking in chinese] [speaking in chinese] >> translator: under the current circumstances our two countries share broader common interests, showed their bigger common responsibilities and face more severe common challenges than at any time in history. as a result, it is more

important than ever for us to maintain the long-term sound and steady growth of our financial relations. this is the reality we face and it should be recognized by both sides. [speaking in chine] [speaking in chinese] [speaking in chinese] >> translator: president obama

and i had an in-depth review on china relations and international use of common interest and we reach important interest. we agreed a two country should increase contacts at the top and other levels, strengthen strategic mutual trust through dialogue and communication, intensify exchanges and cooperation in all fields and step up communication and coordination on international and regional issues. we agree that the two countries should respect each other's sovereignty, territorial integrity and the development interests. properly handle differences and friction and work together to build a china-u.s. corporate of partnership based on mutual respect and mutual benefits. [speaking in chinese]

[speaking in chinese] >> translator: china-u.s. relations have traveled an extraordinary journey in the past 32 years since the establishment of diplomatic ties. a review of the history of our relations shows that we have far more common interests than differences and cooperation for mutual benefits has always been the mainstream of our relations. this has reinforced our confidence in further pushing forward our relationship. today, both china and the united states are confronted with the

arduous task of sustaining steady economic growth and achieving economic transformation, and we both need to tackle the various challenges brought i economic globalization. this has added to our need and desire to enhance cooperation. [speaking in chinese] [speaking in chinese] >> translator: we should pursue our relations with a stronger conviction of broader vision and more proactive

approach. we need to take solid steps and make pioneering efforts to fully test the potential of cooperation and strive for new progress in china-u.s. relations. i am confident that these joint efforts china-u.s. partnership will yield comparable suit -- for is for the greater benefit of our people and make new and bigger contributions to the noble cause of world peace and development. [speaking in chinese] >> translator: to the health of all friends present here to the stronger friendship between the people of china and the united states and to the steady growth of china-u.s. relations.

cheers. [applause] from the dining room a truce between our two nations with a portrait of abraham lincoln was president hu jintao of china and present a barack obama. by the way if fewer interests at our web site has the full guest list, 225 people in attendance and the dinner menu tonight includes poached maine lobster, ribeye with buttermilk onions and double stuffed baked potatoes. dessert will be pie and entertainment will take place in the east room with herbie hancock, diana reese and members of the month just in to do. one of our twitter comments says the u.s. has gone too far in debt to china, which gives them power over us, cautious approach

is needed now. our guests here in the studio is someone who served in the clinton administration and stephen yates veteran of the bush white house. how would you respond to that sentiment? casco by always cautious approach but i think when it comes to american dead in china there are a couple of layers of perspectives that are necessary. it is true that china is the largest foreign holder of u.s. debt, but close behind it are countries like japan and holders like taiwan and some others. china does not hold the majority of our foreign debt, and the total foreign holdings of u.s. debt is a minority. american people hold the majority of the u.s. debt. >> host: let's look at some of the economic numbers. the u.s. of course the largest economy in terms of gdp followed by china, japan, germany and france. >> guest: let me add a note on that issue if i can. steve is absolutely right the chinese don't have the majority

of our foreign debt. indeed they have less than 10% of our sovereign debt in less than 10% of our agency debt, fannie mae and freddie mac so they have put a very large part of their foreign exchange holdings into our debt instruments but they are relatively small part of the overall debt that we have sold. so in a sense we have a lot of leverage over them. the reality is both of us have a huge interest and each of us managing our respectful economies as well. >> host: steve is joining us from boston. good evening to you. >> caller: good evening. i appreciate you taking my call. and i just want to start by saying i'm a business owner, so the state and health of the u.s. economy is very important to me. that being said, i also want to say that i studied in jinsheng university in the '90s. i worked in china for several years. i am very familiar with the way that the chinese operate.

especially in terms of their disregard for intellectual property and complete disregard for life and human rights. although i am focused on the state of the american economy, i have to say this trip is very disturbing to me. even if it means america needs to suffer economically at little bit, personally i think that i am glad, i'm glad that you play the tape of the secretary of state clinton, because i do not think that this type of competitiveness across cultures is relevant to a communist country. >> guest: steve let me guess in. what is the alternative? do we have relations have not give this platform? >> caller: let me be clear. this is a country with decreased disregard for human life, country that allows organ

harvesting and persecution of falun gong practitioners and i for one did not want my country to sell its soul to china, even if it means our economy has to suffer little bit. we are an industrious and brilliant nation and one that can come back from anything without selling our soul to a communist country that persecutes people like falun gong. >> host: thank you for the call and the president addressing this issue in the east room earlier today at a press conference taking questions from u.s. and chinese reporters. here's here is more from today's event. >> i have been very candid with president hu about these issues. occasionally they are a source of tension between our two governments. but what i have believed is the same thing that i think seven previous presidents have believed, which is that we can engage and discuss these issues in a frank and candid way, focus

on those areas where we agree solid knowledge and there are going to be areas where we disagree. and i want to suggest that there has been an evolution in china over the last 30 years, since the first normalization of relations between the united states and china and my expectation is that 30 years from now, we will have seen further evolution and further change. >> host: the president earlier today in east room of the white house. ken lieberthal to steve's.from boston the president's, and human rights earlier today, your response? >> guest:you know hillary clinton and her first trip to china secretary of state said we have several baskets of issues with the chinese that are extremely important for us, for china and for the rest of asia and the world. one of those is human rights and one of those is the security

basket and another is an economic basket. dividing them into these different things and the fundamental point was we have to pursue each of these very powerfully. we cannot let any single one of them disrupt our entire relationship. each of these has huge consequences. if we get it wrong, and lot of people suffer. she was criticized for that. she was criticized for not may keep human rights the number one issue. frankly i don't know any american who thinks china does the right thing by human rights so i don't want to suggest that i think they are doing it right, i don't. persecution and that kind of thing is obvious in this system, but i would disagree with the caller in the implication that we are selling our souls to the chinese, and that we ought to in some way you know, completely distance ourselves from them until they change their system and the way it works. frankly that won't change their system in my view. that would have consequences in

the korean peninsula, and southeast asia, in the global economy and in a vast array of areas that would have tremendous implications for the lives and well-being of very large numbers of people, so to my mind those are also in their own fashion and human rights issues and i think we have to balance these things. it is not pleasant to do so but i think we have to do so. >> host: we are talking with ken lieberthal they china director of institutions and serving the clinton administration or as the senior director for asian affairs at the national security council land stephen yates the present of the d.c. advisory consulting firm. he served in the first term of the bush administration is a senior adviser to vice president dick cheney on asian affairs. writing is joining us from murray kentucky on the democrats line. go ahead please. >> caller: thank you mr. scully and thank you for c-span. i have to agree with mr. lieberthal in several different points but i will make it very brief.

our two countries are not always going to agree on issues with regard to human rights, the environment and intellectual property that what we have seen here today is the continuation of the building of a framework that started 39 years ago, and i am looking forward to the communiqué that comes out of the summit. i think the president is right on track, but he did raise the issue of human rights violations today in a very subtle way. i don't think he should back away from that when it comes to cooperation with regards to nuclear arms proliferation, when it comes to conflict and certainly the crucible about north korea and iran we will need the cooperation of the chinese. >> host: thanks protocol. as you point out the white house issuing this nine page joint statement on u.s.-china relations. which is typical with these types of evidence. they outlined diplomatic trade human rights and other issues between our two countries. president hu also responded to the issue of human rights at

today's news conference from the east room at the white house. here is his response. >> president obama and i already met eight times. each time we met, we have an in-depth exchange of views in a candid manner on issues of shared interest and issues to each other's concerns. on the issues we have covered we also discussed human rights. [speaking in chinese] >> translator: china is always committed to the protection and promotion of human rights, and in the course of human rights china has also made enormous progress, recognized widely in the world. [speaking in chinese]

>> translator: china recognizes and also respects the here human rights and at the same time we do believe that we also need to take into account the different circumstances bank counter in the universal value of human rights. [speaking in chinese] >> translator: china is a developing country with a huge population and also a developing country and a crucial stage of reform. in this context, china still faces many challenges in economic and social development and a lot still needs to be done in china in terms of human

rights. [speaking in chinese] >> translator: we will continue our efforts to improve the lives of the chinese people and we will continue our efforts to promote democracy and under the rule of law and our country. at the same time we are also willing to continue to have exchanges and dialogue with other countries in terms of human rights and we are also going to -- we are also willing to learn from each other in terms of the good practices. host -- >> host: president hu jintao, like you at the white house on this wednesday evening wear president obama is hosting the chinese leader. ken lieberthal, did he make news on the issue of human rights? >> guest: the phraseology used was more forward leaning than he

is used in the past. his premiere, wen jiabao used similar terminology and in fact he was never played in the chinese media. is really quite extraordinary. premier wen and a western interview made some comments in new york city about human rights that were quite strong, repeated those comments when he was in hong kong and mainland chinese press censored the premiere some comments. now hu jintao has made similar remarks. i am interested to see tomorrow whether the mainland press picks this up and this becomes a new mantra because frankly he is moving a little further especially in the exquisite recognition that human rights are a universal issue. they aren't an american issue. they aren't a western european issue. they are a universal right. that is what he commented about today. to my knowledge he has never used language like that before. >> host: hu jintao has been a member of the communist party since 1964 in the chinese

president since 1963. he will leave office next year. you were at the state department earlier for a luncheon that followed immediately after the joint press conference between president obama and president hu jintao. news came out of the van today. what happen? >> guest: they announced that the two vice presidents, vice president biden who is cohosting a lunch with secretary clinton and vice president jay peng on the chinese side will exchange of visits, official visits during the first half of this year. that is significant in more than just a diplomatic fashion because in a sense it gives american recognition to the fact that she shouldn't peng is a hu jintao's successor. he was expected to be hu's successor but in china makes a difference to have the u.s. government really recognize this man as the second most important man and the one coming up now, so i think that was, wasn't earth shattering but a little bit of news. >> guest: it also follows the model of what we did when hu

jintao was succeeding him. one of the handicaps we have in dealing with china is that there are actually quite a lot of top leaders. in the united states there is only one president but in china they have a group leadership that is mostly unknown to americans and when that leadership successions come up, it is not necessarily certain someone will come through. in the history of the trc, several examples of people who thought they should be the successor and did not succeed. but in 2002, as far as i can see, the smoothest of the transitions thus far, this one seems to be following a similar pattern. another similarity was in 2002, 2003, very few americans know anything about hu jintao. they knew what his bio, was. they knew he observed that few people had a good read on what kind of a leader he would be.

we have invited countless experts to come and to try to get inside and to give us a sense about who is this person, what will we be dealing with? i would imagine the administration is doing something similar with regard to peng now. >> host: president hu jintao came to the white house in 2006 to a luncheon hosted by van president bush. whether the ceremony on the south lawn would in fact take place, temperatures warmed up and so the pomp and ceremony that is typical of the state of rival took place with the president and first lady greeting the president of china for the south lawn ceremony. the public in attendance as well. we will show you some of that as we listen to this call from philadelphia. maurice's on the phone. go ahead please. >> caller: thank you mr. scully and thank you c-span. i wanted to direct a couple of questions toward the panelists but first of all certainly can't forget how nixon was so forward leaning and reaching out to the

chinese back in the 1970s. all the way up to a point now where we have the chinese speaking about actions in terms of human rights and industry as well as working with the bush family and doing various activities as well. one of the questions i was trying to work through was an opportunity to find out from the two panelists, how do you see john husband's inner workings with the next generation of chinese leaders and how he has been bringing him along to do some of the things that some of the older leaders seem to be doing now in terms of leaning forward on human rights? second of all, the competition we seem to be having now with china and africa and african nations. where is the state of play with that now? how will we deal with the chinese in terms of working with human rights and business aspects they are and where is that going to leave us in terms of global competition as well as global partnership?

>> host: thank you for the call and we should point out one of the architects of architecture henry kissinger among attendance night. who would like to take that question? >> guest: i would be delighted to take the question and maybe steve would take the africa question. i think john huntsman is a national asset. he speaks chinese excellently. he has all the skills and of a polished politician. he left the governorship to take this position with a 70% approval rating at the time that he resigned in order to become an ambassador to china. he has had diplomatic experience in the past that it just shows, i've seen them a number of times in china in different settings. this man is a natural. he deals easily with people on the street. he deals easily with people at various bureaucratic levels and he is quite a -- to hu jintao and whinge about. so i can't say specifically how effectively he has cultivated the next generation but from what i have seen i would say he is doing a superb job of

bridging the united states in china during what was a very difficult year this past year. and i would be very surprised if you are not building good ties in the next generation of leadership. >> host: in fact president of mom was asked about john hudson hudson -- huntsman. the persons responsible as he is not sure working for president obama would help him and a republican primary. >> guest:that was a good light to get out of the difficult question. and the virtue of being true. >> host: what about african trade? >> guest: first i would say one of john huntsman's greatest qualities is he was a missionary in taiwan. i followed in his footsteps along with his brother which is a personal connection that is quite -- quite treasured and a shaped both of our lives. again, john has for a long time thought about doing exactly this job. and so he is a tremendous opportunity to do a lot with it. africa, you know, i think africa for china was seen as a place to

extract resources and to get u.n. votes to keep the security council where it is, brushoff human rights resolutions at the u.n., and they think they were somewhat taken aback, recognizing the systemic problem of going in there and trying to extract resources, bringing your own workers to do that and that is tremendously sensitive clinically, that they did not accurately gauge the sensitivity of doing work in places like the sudan and i think that they were quite shocked by that. over the years the bush administration that was raised tremendously, think that sort of was coincident with china really expanding its outreach and engagement in major economic ways. but the people of africa have had reactions as well. and it has been an interesting learning curve. many chinese corporations when

they go into these projects don't actually consult with the chinese government. they go into their project and when problems arise, the problems go to the government, and many problems came up over the course of the last decade. my sense is that they are getting better about dealing with this, and there have been some excesses in africa where relations were quite strained with the government and they seem to have worked through. >> host: i want to put on the issue of currents and let me remind our audience or to guess, two experts on u.s. and china relations, kenneth lieberthal who is a veteran of the clinton administration and stephen yates who served in the bush administration. shone as joining us from iowa city. welcome to the conversation. good evening. >> caller: thanks guys. i would like to say to my fellow americans that it might be a good idea to give china a little bit of leeway on human rights issues right now, to remember that the united states had a long history before we came to the point we are at right now. my question is an independent, i

like democrats and i like republicans and at certain times one might be better than the other. to steve gates, what do you feel it would have been like if john mccain was president right now and do you guys feel they might be talking about taiwan behind closed doors or did you hear anything about that? >> host: thanks john. >> guest:. >> guest: it is an interesting thought. there was a brief moment in the 2008 campaign where it seemed like john mccain might have a chance of being president. it was but brief. my senses he had become president they would certainly be in tense relations with china just because when we deal with many issues of consequence, you run into china's interests at play too and they would need to be a serious effort to try to achieve cooperation. we can come to different assessments of how much cooperation is likely but john mccain, like barack obama, would have had to try. interesting but impossible to

prove whether it president mccain would have had a full state visit on the bush way with a working business but at this point we are where we are. >> host: twitter.com/c-span is our address if you want to send us the tweet. we have one from, making your enemy powerful as always a bad policy. how do you respond to that sentiment? >> guest: at face value it sounds correct. if we know someone is our enemy wouldn't make much sense to make them stronger. with china the way i would frame it is, i have a relatively skeptical view of where chinese power is going. i feel that the burden of proof is on their side. it clearly accumulated a great deal of power and influence economically and militarily. they deserve a degree of respect for what they have accomplished but at the same time there is an open question of what do they intend to do with this power? it is very clear that they seek

development of their country. is very clear that they seek to influence things in the world, but a lot of that content is not filled out. it will have to fill it out if it is their choice but until they do i think it is fair to have some concerns about which way it could go. secretary gates got a pretty clear dose of that and going through china. the headlines out of his visit were mixed. he went to military-to-military relations ahead of the summit, and yet for reasons that escape many people, the chinese military chose to show off a new technology. the extent of it and what one can know from videos aside in a country where web sites can be taken down pretty quickly, they stayed on her a long time, and so clearly there is some mixed message there about wanting to show strength and i think it is reasonable for people to ask. ..

a lot of the future of china is not clearly determined. maybe better for us, may not be so good for us. but i would say that time is going to become more powerful regardless of what we do. we may make it a little more difficult for a slightly easier, but the fundamental drivers that produce overall chinese development are not under the control of the united states.

secondly, if we treat like china it will become one. so will be much better off working to see whether we can derive better outcomes from both from it because there were so many issues of vital concern for us that if we work in reasonably parallel fashion, we'll do better on that. if working cross purposes, all of us will do worse. >> host: china's economy and its currency, tim geithner speaking about this last week at the johns hopkins school of washington d.c. here's a portion of his remarks on the china currency issue. >> when you think about competitiveness and the effects of what you see in the exchange rate, you really have to look at inflation and use the completion accelerating, running at a much higher rate than inflation. and at that rate of inflation combined with the exchange rate that affects competitiveness. and if you look at the amount it

is on the relative acceleration and chinese inflation over the last six months or so, the exchange rates are appreciating as an exchange rate of about 10% a year. so if that appreciation was sustained over time, it would make it very essential difference in correcting what the major distortion for the chinese economy and the global economy. we're probably at the end of the first quarter to use the sports. end of the second inning if you want to use the sports comparison. that is changing. it has to happen because the fundamental forces that are pushing chinese productivity growth in pushing inflation higher will bring about the necessary adjustments and exchange rates. >> host: secretary baker last week at john hopkins university in washington d.c. the entire event at the white house are all available on our website at espn.org. explain the currency issue.

what is china doing and what impact it would have been in u.s. businesses? >> guest: welcome in the chinese are basically controlling the value of the chinese currency vis-à-vis the u.s. dollar. they let it effectively change in relative value vis-à-vis all other currencies as the u.s. dollar changes in that relative evaluation. but they are willing to expand a lot of chinese money in order to buy enough dollars or sell enough dollars at any given point so they can affect the markets and have the market come out at an exchange rate that they control. i think it is widely fallen and corrected they keep the chinese relevancy cheap vis-à-vis the u.s. dollar. it will go up in value before fully marketed. >> host: let's turn them into the trade deficit number to show you from 1992 where we are today. in 1990 the trade deficit with a

$10.5 billion. the u.s. trade deficit with china. localities increased over the years to $83.8 billion in 2000 according to the most recent figures, almost $253 billion. >> guest: that is very little to do with currency frankly. there reflects a lot of things, including our being in a washing consumer credit for a number of years after 2002. if you look at our trade balance, it actually was pretty much imbalance until about 2002 mike 2003 and then it went way out of whack. but we floated around economy liquidity. we finally creasy, bought on credit. chinese became very good at exporting and so we thought their exports and ran up a huge bill in the process of doing that. more importantly, the chinese -- our trade imbalance with china reflects a lot of dimensions of the chinese economy and frankly are unfair trade practices paired semi-legitimate economics and some are simply unfair.

the currency misalignment has a huge impact locally, but i would argue has a low impact on u.s.-china trade and its very little because as it leaves china it's only about 15% on average of the price we pay for good at a store in the united states or the rest is transportation insurance markets and so forth. if you look at goodstein ascends to the united states, two thirds of the value of each of those items on average, china imported from elsewhere in asia. it assembled them in china and ship them out to the u.s. so if we increased -- of the chinese increased by 10% vis-à-vis the united states, the shift in price here would be miniscule. it would be increasing by 10%. only 15% of the final goods, so that's 1.5%. two thirds of that would've made up by importing more cheaply

since it is stronger. at the end of the day if half of a percent difference. so it doesn't read the trade balance in any serious way with the u.s. even though politically on capitol hill in this scene is absolutely key to the trade balance. post over focusing on u.s.-china relationship as president of a host president hu jintao at the white house. if you want to watch more of the event, all available on our website at c-span.org. including the guest list and menu. to run the chinese president will travel to capitol hill and meet with his misleaders are it also an event that the u.s.-china business council in the u.s. visit will conclude with a stop in chicago before the president of china hits back to beijing. steve joining us from boston. good evening. >> caller: good evening. thank you for taking my call. i just like to preface my first by saying that i am an american phone practitioner who has traveled to beijing in 2003 and

was illegally, unlawfully detained and arrested by the secret police. and just for speaking openly to a citizen who felt scared and turned me in judea or reduce about the persecution of fallible. and while i was being interrogated, i was with a friend of mine who speaks fluent chinese. and the secret police in china had no idea that he spoke chinese. and the topic of their conversation was that we were fbi or cia sent to beijing to see how they treat balin golden practitioners. and my point is that those chinese government looks set to following code is more vague dread of the u.s. government. >> host: your question, steve. >> caller: that leads me to my point which is why we don't hear the u.s. government and actually

the u.s. media really criticize or focus on chinese human rights abuses because right now i believe there is a movement in the u.s. -- it's actually an intelligent, the chinese intelligent friends over scholars who study at our major universities, not to steal our high-tech information, but to influence our scholars. >> host: i'm going to stop you there so we can get a response. thank you for the call. >> guest: i think they're many of us who have had the awful personal experience of witnessing in the pews, having been treated rather roughly by chinese security services. and it is a profound reality in china. it is not all glitz and glamour, sky races in nightclubs and that companies in china. there is a profound and ruthless

elements to the government control there. i personally find the approach to falun gong unconscionable and not justifiable. but it dates say something about the system of government that it would find profoundly fearful, an organization of people who are able to operate virtually out of sight of the government detection, able to practice the least that the government opposes and basically get away with it and grow inside china. for a long time and actually was getting rather large numbers. persecution increased. these people moved overseas and still organize. i think it's a sign of weakness in the system of government to see this kind of organization as a threat. without passing judgment on what they believe and other elements of what their personal life would be. i think it's an important element of what this current

china is. it's important for people to remember this current china is not 5000 years of china. this current china is the prc. and there's nothing in my view consistent with chinese culture and civilization in taking this kind of an approach to these kinds of groups. >> host: i'm going to put another issue in the table. you talk about secretary gates to travel to beijing. in both the first administration and the clinton administration in an event at the nixon center in which he touts about the military to military relationship between our two countries. here is part of a statement. back in the upper talking about multiple relationships as though it can somehow resume to deal as an equal under these circumstances with the world's best come without losing face. much of what you described is what you would expect from

somebody who hasn't yet proven themselves. the chinese navy has been a coastal defense force. now they are over there in the gulf of aden, but they're getting miniscule experience. their senior leaders are largely what we would call potential in terms of their world outlook because they haven't had the exposure for the contact with the advanced militaries of the rest of the world that you would expect. so my own defenses if we want this military to military relationship to develop, we can have a great leap forward. we have to make incrementalist types. we have to deal with each other in ways so that they can gain confidence that they can do what does in the types of dialogue we would like to have without losing face because they are constantly demonstrating that they are not the two are standards in of understanding what we want to talk about.

>> host: , the former u.s. ambassador to china, stapleton roy in an event sponsored by the nixon center. in the communicator tonight a couple points were addressed. first of all come and prove it to enhance communication and coordination between our two countries. secondly, the realization that without nuclear weapon and finally the u.s. and china agreed on the critical importance of maintaining peace and stability among the korean peninsula. >> guest: i think the security side of this discussion over the past 24 hours have gone fairly well. on korea we got anymore -- we got a tougher chinese statements on north korea and its nuclear program than we've had before. and that has potential consequences. it looks like over the past month or so they've put a lot of pressure on north korea to back down and stop their provocations against the south and the negotiating table and if you're too earlier agreements. i do think that the issue that

stapleton was talking about in engaging a serious, sustained, pragmatic, in-depth set of discussions with the chinese military, having chinese military offers coming to the u.s. economy for national defense university have our officers go there, establishing a really diverse, sustained set of relationships between our two militaries is absolutely critical. >> host: use the word saving face. >> guest: i used the word earlier saving face and he used the word saving face. this is approximate and the chinese military is in the early stages of getting comfortable with exposure to a much more cosmopolitan military establishment. when i go to international conferences, everyone speaks english. very few chinese pla officers command english. so they feel very comfortable about being there. but this is not easy to pull

off, but it is vitally necessary that we keep promoting this kind of an exchange. i find on the occasions when i'm with chinese uniform military as my audience or around a conference table, it feels as if the u.s.-china relationship were as if that were 20 years ago. the rest of the relationship has moved forward in the wake we do with each other on a much deeper basis of mutual understanding. the military sight is impaired and that frankly is dangerous. so i think we really need to push those and kind of mood chinese forward as rapidly as we can. >> host: matthew joining us from baltimore. good evening. >> caller: good evening. thank you for a call in in your panel. thank you for your public service and championing american values, the public. to distinguish a moment from the clinton administration, if you could list some of the hot issues that is -- poses a

challenge for america dealing with china negotiations, other than the economic situation and the human rights issue, are there any others that are hot topics of issuance. enter the gentleman gentleman from the distinguish gentleman from the bush administration, while earl would the public to play in advancing and promoting the american priorities in china? >> guest: thank you for the call. this is the scene from earlier tonight at the north portico of the white house says the president and first lady are greeting president hu jintao for the state dinner. tonight these point. >> guest: well, the will of the american public is important of course. and in many ways, the way the future between our two countries is determined by our peoples more so than our leaders. i think that sort of, to use a

cheap current phrase, that sort is so last century to talk about having two leaders get together and somehow move the world forward. we have an enormous number of young chinese people who have come to the united states to be educated to work. we have an increasing number of americans going abroad in interacting with equal in china. i think it's really the strength of our peoples in those exchanges that will move things forward. i'm not so sure it will be so kind to the current structure of china's government with expanded access to information, paper and ideas, higher demands by a more capable young population, but i think there is a robust role, whether it's in academia, professional realms that in mind you, beat a limited government person i think it's actually more important than what our government does. >> host: we've listed some of

the guests at the dinner tonight. former diplomat, henry kissinger and madeleine albright, christiana report from abc news and business executives who talked about from walt disney, goldman sachs as well as members of the diplomatic community. former governor jon huntsman. what stands out from these 225 people who are in the list for tonight's dinner and what does that tell you about our relations with china? >> guest: actually i think, as steve mentioned earlier, this is a fairly typical list. your cultural luminaries, often people -- jackie chan is on here. a popular figure. >> host: barbra streisand. >> guest: barbra streisand well known in relations -- you have big business people. some are friends of the president and others are just there because of their major roles in china. so jeff and now from ge. ge has an enormous set of businesses in china. yet some people from the u.s. administration to deal with china. of course you have a lot of

chinese who are at the dinner. what struck me and this is a minor point come but what struck me as there are no former u.s. ambassadors to china with the exception of winston board who served in the administration of bush one. there are not former china people -- people who manage china and earlier administrations, republican or democrat here. are normally are a few of those and i was thunderstruck or the absence of those on this list, but that's a very minor point. jedi that stands out for being which you would expect. >> host: i have to ask you because it is in the state dining room, but there's additional in the blue room in the bedroom which is one of the reasons why the white house does not allow us to have the toast late tonight. but if you're in this additional rooms, is there any protocol between those people were not in the state dining room? >> guest: you know, haven't seen that happen so i don't know the answer to your question.

>> guest: they have been extracted view. if i were invited to the state dinner, i would sure like to be in the state dining room. i can tell you that. >> guest: they'll go to the east dining room and others will be posted on a website. charlie is joining us from california. good evening. call co-good evening. thank you for taking my call. and i really believe the political institution in china is evolving in human rights because we really should look at our whole institution. all political institutions from 1776 until the early jacksonian time it was a political institution for white slave owners only. and after the 1800s, until the 1900, we have a true democracy

with all of the human rights for all our peoples. so it took us more than -- almost 160 years. and they got 30 years. and i really believe, you know, eventually they will have not our type of democracy, but they'll have the people who speak up with freedom of press and with the freedom people to choose their own leaders. because it took us almost 150 years. you see what i'm saying? >> guest: charlie, thank you for the calling. let me point out to take us back to 1972 when richard nixon first traveled to china nearly 40 years ago. from that point to a charlie was talking about and where we are today, what about the last four decades? >> guest: that's a long walk in a lot of issues to cover. there are a couple of serious questions and looking at the

situation versus what we're dealing with today. when nixon's motivation and approaching china, i would wager to say has nothing to do with human rights except in the broadest sense of the free world sit during the cold war for human rights and the rise and threat of communism with a definition have been bad. but otherwise it was a geostrategic move to tilt the cold war in a different direction and create space for the withdrawal from vietnam. and both are major top-tier national security interests of the united states. we've gone through two wars in the last decades with high casualties, healing in comparison to the casualty rate of vietnam war. sleep get a sense of how important it was to find a new way forward in that world order. and so the nature of china was not seen as important as the

broader geostrategic landscape. china at that time had a terrible internal order, a tragic order that resulted in not just persecution, but that and just held back the chinese nation in a profound way. and so, flash forward to today, one of the challenges, i think, is that it is very hard to see movement on the international security issues, quite the way you could even under that extremely in the context of the cold war and the vietnam war. were talking again with north korea. counter proliferation may be, so different context. when it comes to human rights and progress, it's come up in a couple of the questions. no one can run away from what america had done poorly in the

past, injustices in the past. in america tended to be first in the world in improving and addressing a lot of these things. people can debate how far or fast. there is no reason why another country would need to take 200 years to get to where we are today. there's endless opportunities for people to do better, faster. the hope for the chinese people to have this kind of freedom to speak out, challenge government were necessary, like their leaders, wonderful. but that not today. and we don't have a clear sense of what tomorrow is. >> host: expertise of the last two administrations to the bush and clinton administration. seven u.s. presidents have done with chinese leaders, including a former customer for president george w. bush spoke about among other issues current team trade in the 2007. we want to show that to you to give you a benchmark to see where you are just a few years

later. here's former president bush in the rose garden may 24, 2010. >> one of the issues i emphasize to mind when she as well as the delegation was that we're watching very carefully as to whether or not they will appreciate their current fee. and that's on the context of making it clear to china do we value our relationship with the $233 billion trade deficit must be addressed. one way to address it is the currency valuations. another way to address is for them to help convert their economy from savers to consumers. and that's why secretary paulson worked very assiduously with the strategic dialogue group to encourage openness for capital markets, that china must open its capital markets to allow for different financial institutions from around the world to go into the country and not only would it be beneficial to the united states, we think it will be beneficial to the chinese

economy for the consumers do have different options when it comes to savings on purchases. >> host: that was president george w. bush in may 2007. kenneth lieberthal, your response. >> guest: the whole conversation we've had highlighted the reality dealing with chinese complicated. none of the fact that very easily. china's currency is undervalued. it has been the fastest-growing export for the last seven or eight years there've been no export more than $100 billion a year worth of goods to china and that is increasing very rapidly. overall, fundamental reality is our interests are intertwined by secretary clinton said in an earlier clip, we are entangled with each other. we differences. we have tough issues to manage. this in both its interest to learn how to manage them better so we don't become enemies. we become countries that can

cooperate mutual benefit were necessary and can at least manage the differences and prevent them from becoming catastrophic where we really can't agree on issues. but nature of the game here. postcodes deviate, final thought. >> guest: i'm impressed by the degree of continuity between the last administration and this administration doing to china. even though i served, i didn't agree with everything the president did on this relationship. but what's unchallengeable is the invested an enormous amount of his personal time in the frequency of communication, the quality of communication between the leaders of the united states and china expanded exponentially during his time in office. president obama has shown no slowing down of that kind of interaction. i fear -- i hope ken is right in a statement on security and things like that each result.

i fear there is tension ahead if our american congress and public aren't able to see results that they deem to be of value. if they depart for the obama administration to produce, but they're in office they set the standard. is the way the game goes. >> host: steve yates consulting firm and kenneth lieberthal at the brookings institution served at the clinton administration. thank you both for your expertise on chinese administration. we'll continue more on president hu jintao's visit to the u.s. here in washington. he travels to capitol hill and we'll have live coverage here on c-span 2 at 12:30 eastern time as we speak to the u.s. chinese business council. the business council. the capitol hill and travel to chicago and back to beijing on friday. here's more from today's event. a joint news conference from the eastern at the white house. a trip earlier with president hu jintao of china and president

obama. >> ladies and gentlemen, the president of the united states and the president of the people's republic of china. >> everybody, please have a seat. good afternoon. it is my pleasure to welcome president hu to the white house and return the hospitality he showed when i visited china last year. this is our eighth meeting. together we've shown that the

united states, china, when we cooperate can receive substantial benefits. the positive, good, cooperative u.s.-china relationship is good for the united states. we just had a very good meeting with the business leaders from both our countries and they pointed out that china is one of the top markets for american exports. we are not exporting more than $100 billion a year in goods and services to china, which supports more than half a million american jobs. in fact, our exports to china are growing nearly twice as fast as our exports to the rest of the world, making it a key part of my goal of doubling american exports and keeping america competitive in the 21st century. cooperation between our countries is also good for china. china's extraordinary economic growth has lifted hundreds of

millions of people out of poverty. this is a tribute to the chinese people. but it's also nice to decades of stability and asia made possible by america's word presents in the region by strong trade with america and international economic system championed by the united states of america. cooperation between our countries is also good for the world. along with rg 20 partners, we've moved from the brink of catastrophe to the beginning of global economic recovery. with our security council partners, we passed the strongest sanctions to date against iran over its nuclear program. we worked together to reduce tensions on the korean peninsula and most recently we welcome china's support for the historic referendum in southern sudan. as we look to the future, what's

needed, i believe, is a spirit of cooperation that is also friendly competition in areas like those that i've just mentioned, we will cooperate in forging partnerships and making progress that neither nation can achieve alone. in other areas, will compete by helping competition that spurs both countries and innovate can become even more competitive. that's the kind of relationship i see for the united states and china in the 21st century and that's the kind of relationship we advanced today. i am very pleased we've competed dozens of gross double increase exports by more than $45 billion also increase china's investments in the united states for several billion dollars. for machinery to software, from aviation to agriculture, these deals will support some 235,000 american jobs and that includes

many manufacturing jobs. so this is great news for america's workers. i did also stressed to president hu that there has to be a level playing field for companies competing in china. the trade has to be fair. so welcomed his commitment that american companies will not be and i appreciate his willingness to take new steps to combat theft of intellectual property. we're renewing our long-running cooperation in science and technology, which sparked advances in agriculture and industry and were moving ahead with their u.s.-china clean energy research center and joint ventures in wind power comes mark gritz and cleaner coal. i believe as the two largest energy consumers and even enters the greenhouse gases, the united states and china have a responsibility to combat climate change by building on the progress that copenhagen and

cancun and showing a way to a clean energy future. president hu indicated he agrees with me on this issue. we discuss china's progress in moving towards a more market oriented economy and how we can ensure a strong and balanced global economic recovery. we agreed that in china this means boosting domestic demand. you're in the united states, it means spending less and exporting more. i told president hu that we welcome china increasing flexibility of its currency, but he also had to see the r&b remains undervalued, that there needs to be further adjustment in the exchange rate and this can be powerful tool for china boosting domestic demand and lessening the inflationary pressures in the economy. so we'll continue to look for the value of china's currency to be driven by the market, which will help ensure that no nation has an undue economic advantage. to advance our shared security, we're expanding and deepening dialogue and cooperation between

increasing trust in reducing misunderstandings. with regard to regional stability and security in east asia, i expressed the united states has a fundamental interest in maintaining freedom of navigation, unimpeded commerce, respect for international law and the peaceful resolution of differences. i welcomed the progress that's been made on both sides of the taiwan strength in reducing tensions and building economic ties. and we hope this progress continues because it's in the interest o f both sides, the region and the united states. indeed i've reaffirmed our commitment to a one china policy based on the three u.s.-china communiqués and the taiwan relations act. i told president hu we appreciated china's growth on the korean peninsula and we agree north korea must avoid further provocations. i also said that north korea's nuclear and ballistic missile program is increasingly a direct

threat to the security of the united states and our allies. we agreed the paramount goal must be to complete denuclearization independent. in that regard, the international community must continue to state clearly that north korea's uranium enrichment program is in clear violation and in international obligations. with respect to global security, i'm pleased for moving ahead with president hu's commitment pilasters nuclear summit were china to establish the center of excellence, which will help secure the world's foldable nuclear materials. to prevent the spread of nuclear weapons, we agreed that iran must unfold this international obligations and that the u.n. security council sanctions on iran must be fully enforced. along with our p5+1 partners, will continue to offer dialogue and integration into the

international community, but only if it meets its obligations. i reaffirmed america's fundamental commitment to the universal rights of all people and that includes basic human rights like freedom of speech, press, assembly, association and demonstration and of religion. right that are recognized in chinese constitution. as i said before, the united states speaks up for these freedoms and the dignity of every human being, not only because it is part of who we are as americans. we do so because we believe that by upholding these universal rights, all nations, including china will ultimately be more prosperous and successful. so today, we've agreed to move ahead with our formal dialogue on human rights. we've agreed to exchanges to advance the rule of law. and even as we, the united states recognize that tibet is part of the people's republic of

china, the united states continues to support further dialogue between the government of china and representatives of the dalai lama to resolve concerns of differences, including the preservation of the religious and cultural identity of the two that in people. finally, we continue to expand partnerships between our people, especially our young people. today my wife, michelle, is highlighting our efforts to increase the number of american students studying in china to 100,000. and i am very pleased that president hu will be visiting my hometown of chicago. mr. president, you are brave to visit chicago in the middle of winter. i have warned him that the weather may not be as pleasant as it is here today. but i know that in the students in the business people you meet, you will see the extraordinary possibilities of partnership between our citizens. so again, i believe that we've helped to lay the foundation for cooperation between the united states and china for decades to

come. rachelle and i look forward to hosting president hu for a state dinner tonight to celebrate the ties between our people as spurs are shot hopes for the future. president hu. [speaking in chinese] >> translator: friends from the press, ladies and gentlemen, good afternoon. first of all, i want to express sincere appreciation to president obama and the government and people of the united states for the warm welcome according to me and my colleagues. just now i have had talks with president obama in a candid, pragmatic and attract good atmosphere with in-depth exchange of views and reached important agreement on china-u.s. relations and major international and regional issues of shared interests. we've reviewed the development of china-u.s. relations in the last two years.

we positively assessed the progress we made in dialogue coordination and cooperation in various areas. the chinese side appreciates president obama's commitment to a positive and construct a china policy into stable and growing u.s.-china relations since he took office. i'll president obama and i agree that if mankind in the second decade of the 21st century. the international situation continues to undergo profound and complex changes and there is a growing number of global challenges in china and the united states share expanding and common interest and show increasing, and responsibilities. china-u.s. cooperation has great significance from our two countries and to the world.

the two sides should firmly adhere to the right direction of our relationship, respect each other's sovereignty, territorial integrity and development interest, promote the long-term incentive growth of china-u.s. relations and make even greater contributions to maintaining and promoting world meet and development. we both agree to further push forward the positive, cooperative and comprehensive china-u.s. relationship and commit to work together to build a china-u.s. cooperative partnership, based on mutual respect and mutual benefits to better benefit people in our own countries and the world over. we both agree to strain and cooperation in economy and trade

, energy, environment, science and technology, infrastructure construction, culture and education, terrorism, non-proliferation, law enforcement and other areas so as to achieve ritual benefits. during my current visit to the united states, the relevant departments institutions and enterprises of the two countries have signed a number of cooperation agreements and reached agreements on theories of new cooperation projects. these will inject fresh momentum of bilateral cooperation and create a great many job opportunities for both countries. we discussed some disagreement in economic and trade area and we will continue to appropriately resolved these according to the principle of mutual respect and common tatian on an equal footing. the president and i agree that china and the united states need to establish a pattern of

exchanges featuring in-depth communication and candid dialogue. president obama and i need to stay in close contact through meetings, telephone calls and messages. the two sides believe that expansion of exchanges and cooperation between our military contribute to deepening mutual trust between our two countries and to the growth of our relationship. we also agreed to encourage all up our society to carry out various exchange of activities. in particular we have high hopes on the young people, hoping that they will better understand each other's country and be more deeply involved in the people to people exchanges between our two countries. president obama and i exchanged views on the international economic situation. we believe the world economy is

slowly recovering from the international financial crisis, but there is a fair amount of unstable that there is an uncertainty as. o. sides agreed to strengthen macroeconomic coordination and actively pursue opportunities for greater cooperation in this process. the two sides support the g20 playing a bigger role in international economic and financial repairs to push forward financial systems and improve mobile economic governance. he championed free trade and oppose protectionism and we hope that joe half of negotiations can make early and substantiative programs. president obama and i exchanged views on major international and regional issues, including the situation on the korean peninsula, korean nuclear issue, climate change another's.

we agreed to strengthen consultation and cooperation on major issues that concern peace and development in the asia-pacific region and in the world. china and the united states in coordination and cooperation and work with the relevant parties to maintain peace and stability on the peninsula, promote denuclearization and achieve lasting peace and security in northeast asia. we work with the united states and other countries to effectively address global challenges such as meeting the climate challenge, terrorism, transnational crime, energy and resource security, food security, public security and natural disasters so as to forge a bright future for the world. i stated to the president that china is firmly committed to the path of peaceful development and a win-win strategy of opening up. china is a friend and partner of

all countries and china has an opportunity for the world. that's all. thank you. >> ben feller with the associated press. >> thank you very much. i'd like to address both leaders have been made. president obama, you cover the brides scope of the relationship i like to follow up on your comments about human rights. can you explain to the american people have united states can be so allied with a country known for treating its people so poorly for using censorship enforced to repress its people? if you have any confidence as to whether this will change and if i may on a related topic, and like to know which make up the speculation that ambassador hunt spent by ben against you in 2012. president hu, i like to give you a chance to respond to this issue of human rights. how do you justify china's record and to think that any of

the business of the american people? >> well, first of all, let me just say i think ambassador huntsman has done an outstanding job as ambassador for the united states to china. he is a mantra and speaker. he has brought enormous skill, dedication and talent to the job. and you know, in fact it becomes from a different party i think is a strength, not a weakness because it indicates the degree to which both tni agree that partisanship ends at the water sides and that we work together to advocate on behalf of our country. on behalf of our country. here with the ambassador service and ensure he here with the ambassador service and ensure he will be successful in whatever endeavors he chooses in the future. and i'm sure they can have a word so well with me will be a great asset in a republican

primary. that's not let me -- let me address the other issue, a very serious issue. you know, china has a different political system than we do. china is that a different stage of development that we are. we come from very different cultures and with very different histories. as i've said before and i repeated to president hu. we have some core views as americans about demographically a freedom speech is, freedom of religion, and of assembly, that we think are very important and that transcend cultures.

i have been very candid with president hu about these issues. occasionally they are a source of tension between our two governments. but what i believe is the same thing that i think seven previous president have believed, which is that we can engage and discuss these issues in a frank and candid way, focus on those issues where we agree, while acknowledging there will be areas where we disagree. and i want to suggest that there has been an evolution in china over the last 30 years since the first normalization of relations between the united states in china and my expectation is 30 years from now we will have seen further evolution and further

chain. and so, what my approach will continue to be is to celebrate the incredible accomplishments of the chinese people, their extraordinary civilization, the multiple areas in which we have to collaborate not only for the stakes of our countries, but also the states of the world, to acknowledge we will have certain differences and to be honest, as they think any partner needs to be honest when it comes to how we view many of these issues. and so, that's frank and candid assessment on our part will continue. but that doesn't prevent us from cooperating in these other critical areas.

[speaking in chinese] >> translator: the translator is now translating the question back into chinese. [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese]

[speaking in chinese] >> i apologize. i thought we had simultaneous translation. i would've broken up the answer. [speaking in chinese] [speaking in chinese] >> i'm getting it in chinese. >> translator: i'm from china central television. >> there is an old saying in china at the relationship

between the two people hold a key to a son relationship between state. [speaking in chinese] [speaking in chinese] >> translator: we note that for defense and public support for the development of the relationship, it's also very important to the sustained, sound and necessary growth of

our relations. so, president hu jintao, would like to ask you the question of what you think the two countries need to do to further increase the train trip and mutual understanding between chinese and american people. at the same time we have also noted that the u.s. side has been saying that the united states is willing to see a stronger and more prosperous china. i would like to ask president obama that deep in your heart, do you really think that you can lead comfortably with the constantly growing china? and also, the question that what do you think that a chinese development really means to the united states? [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking chinese] >> translator: i would like to take a question from the lady panelists. the exchanges between our two people represent the driving force behind the growth of our relationship. ever since the establishment of diplomatic relations between our two countries, we have seen more

robust exchanges between our two peoples. in such exchanges have also helped promote the steady growth of our relationship. the statistics i have show that each year we have about 3 million people traveling between our two countries. in other words, on every single day, about 7,003,000 people traveling between china and the united states. this is something that is hardly conceivable 32 years ago when we first established diplomatic ties. in addition, we have also seen very broad range in development of these exchanges that have national levels. ..

glt on the one hand, we will encourage the young people in our two countries to go to each other's countries to pursue further allocation and learn more about each other and at the same time, we have also decided to put in place a dialogue and exchange messages between different chinese and american provines and the states. beside, we're also going to further extend college exchanges and develop tourism. we're going to use a variety of

means to further increase people-to-people exchanges. i'd like to particularly express here that the young people hole the future of this relationship. it is extremely important to increase the exchanges between the young people in our two countries which through such exchanges our friendship can be furthered and a date in the future can serve as ambassadors of good will for our two countries, and they can make more positive contributions to the development of a cooperative partnership based on mutual respect and benefit. president obama: let me respond briefly to your question. i absolutely believe that china's peaceful rise is good for the world, and it's good for america. [speaking in chinese]

president obama: for humanitarian reasons. [speaking in chinese] president obama: the united states has an interest in seeing hundreds of millions of people lifted out of poverty. [speaking in chinese] president obama: we believe part of justice and part of human rights is people being able to make a living and having enough to eat and having shelter and having electricity and the development of china has brought unprecedented economic growth to more people more quickly than just about any time in history, and that's a positive good for the world and it's something

that the united states very much appreciates and respects. [speaking in chinese] [speaking in chinese] [speaking in chinese] president obama: we also think china's rise offers enormous economic opportunity. [speaking in chinese] president obama: we want to sell you all kinds of stuff. [laughter] [speaking in chinese] president obama: we want to sell you planes, cars, we want to sell you software, and as

president hu and his government refocuses the economy on domestic demand, that focuses economy for u.s. businesses which ultimately translates into u.s. jobs. [speaking in chinese] [speaking in chinese] president obama: it also means that china's standard of living higher they have more purchasing power. [speaking in chinese] president obama: the united states economy is still three times larger than china's despite having one quarter of

the population. per capita income, it's still very different. as china's per capita income rises, that offers an opportunity for increased trade and commercial ties that benefit both countries. [speaking in chinese] [speaking in chinese] president obama: finally, china's rise potentially is good for the world. [speaking in chinese] president obama: to the extent china is acting as a responsible actor on the world stage, to the change we have a partner and

weapons of mass destruction don't fall in the hands of enemies and rogue states and we have a partner in dealing with regional hot spots, we have a partner in addressing climate change or pandemic, to the extent we have a partner who is helping poorer countries in asia or africa further develop so that they too can be part of the world economy. that is something that can help create stability and order and prosperity around the world, and that's the kind of partnership that we'd like, and it's more likely to come in china feels secure and itself is going well economically. they are more likely to be an effective partner with us on the world stage. [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] >> nichols from bloomberg. thank you mr. president,

president obama, because of the translation questions, can i address one to president hu? >> yes. >> first of all a colleague asked you a question about human rights and you did not answer. i wanted an answer to that question, and also senator majority harry reid and john boehner are not attending the state dinner. many see china as an economic threat. what can you do to delay their fears? [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] >> translator: because of the technical interpretation problems, i did not hear the question about human rights. what i know was that he was asking a question directed at president obama. [speaking in chinese] >> translator: if you raise this question and i heard it properly, certainly i'm in the position to answer that question. [speaking in chinese] [speaking in chinese]

>> translator: president obama and i already met eight times. each time we met, we had an in-depth exchange of ewes in a -- views in a candid matter on views and interests and shared concerns. on the issues we have covered, we also discussed human rights. [speaking in chinese] >> translator: china is always committed to the protection and promotion of human rights, and in the corse of human rights, china made enormous progress recognized widely in the world. [speaking in chinese]

>> translator: china recognizes and also respects the human rights, and at the same time, we do believe that we also need to take into account the different circumstances when it comes to the universal value of human rights. [speaking in chinese] >> translator: china is a developing country with a huge population and also dwping country -- developing country in a crucial stage of reform. in this context, china still faces many challenges in economic and social development and a lot still needs to be done in china in terms of human rights.

[speaking in chinese] [speaking in chinese] >> translator: we will continue our efforts to improve the lives of the chinese people, and we will continue our efforts to promote democracy and the rule of law in our country. at the same time, we are also willing to continue to have exchanges and dialogues where other countries in terms of human rights, and we are also willing to learn from each other in terms of the good practices. [speaking in chinese] [speaking in chinese]

>> translator: as captain obama rightly put it just now, though there are disagreements between china and the united states on human rights, china is willing to engage in dialogue and exchanges with the utes on the basis of mutual respect and noninterference in each other's affairs. in this way, we can further increase our mutual understanding, reduce disagreement, and expand our common ground. [speaking in chinese] [speaking in chinese] >> translator: therefore, the latter question about the attendance at the state dinner my some congress people as to who will attend and who will not attend and for what reason, i think president obama is definitely in a better position to answer that question. [laughter]

president obama: is that the question you want to pose to me? you get one. [laughter] >> you just spoke about the deals here about the importance of exports, your own goals and exports to your job strategy. at the same time, you said there needs to be further adjustment in the exchange rate and the rmb is undervalued. to what extent does the depressing of its currency affect your ability to grow jobs in this country and lower the unemployment rate? president obama: well, i think it's important for us to look at the entire economic relationship and the currency issue is one part of it. the first time i melt president hu was in april of 2009, and this was the first g-20 summit that i attended when we were in the midst of the worst financial

crisis that we experienced since the 1930s. [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] president obama: even as we tried to stabilize the financial system, what was absolutely clear was that we couldn't go back to a system in which the united states was borrowing

massively, consuming massively, but not producing and selling to the rest of the world creating these huge imbalances that helps contribute to the crisis. [speaking in chinese] [speaking in chinese] [speaking in chinese] president obama: and that's why we pushed and why the g-20 adopted a framework that called for rebalancing the world economy. [speaking in chinese] [speaking in chinese]

president obama: that gives us responsibilities. we have to save more in this country. [speaking in chinese] president obama: we have to cut back on the future levels of debt in the private sector and public sector. [speaking in chinese] president obama: it also means there's structural reforms that we have to undergo to make ourselves more competitive in the world economy so making sure that we have best education system in the world, that we're producing more engineers than lawyers, making sure that we have a handle on our fiscal problems, making sure that we have a world class infrastructure. those are all important parts of us being competitive and being able to export. [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] president obama: it does also mean though that we have a level playing field when it comes to our trading partners. [speaking in chinese] president obama: and so with respect to china, what president hu and myself and our delegations have discussed is how do we make sure that in fact our trading relationship is fair

and a win-win situation as opposed to a win-lose situation. [speaking in chinese] [speaking in chinese] president obama: some of that has to do with issues completely unrelated to currency. for example, we're making progress on making sure that the government procurement process in china is open and fair to american businesses, and we've made progress as a consequence of this state visit. [speaking in chinese] [speaking in chinese] president obama some of it has to do with intiewjt chiewl

property protection. microsoft pointed out that their estimate is that only one customer in every ten of their products is actually paying for it in china, and so we get better enforcement since that is an area where america excels, intellectual property, high-value added products and services. [speaking in chinese]] [speaking in chinese] [speaking in chinese] president obama: government has to its credit taken steps to

better enforce intellectual property. i think president hu would acknowledge that more needs to be done. [speaking in chinese] president obama: but the currency issue is a part of the problem. the hmb is undervalued. the chinese government intervened very forcefully in the market. they spent $200 billion just recently, and that's an indication of the degree of which it's still undervalued. president hu indicated he's committed to moving towards a market-based system, and there has been movement, but it's nos at fast as we want. what i said to president hu, and

i firmly believe this is not only will u.s. businesses be able to export more to china if we have a market-based currency, but it will also be good for china and president hu's agenda in extending the domestic demand. if the rmb is more, they can contribute to having greater purchasing power and greater standard of living. this can be a win-win. his concern about how rapidly this transition takes and the disruptions that may occur in the export sector, but i'm confident it's the right thing to do, and my hope and expectation is that president hu's resolve will lead to a fully market-based currency program that will allow more effective trading in our

sectors. [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese]

[speaking in chinese] [speaking in chinese] [speaking in chinese] [speaking in chinese] >> from the news agency -- [speaking in chinese]

>> translator: i'm from the agency because of the interpretation from the simultaneous booth, so i would like to ask the chinese interpreter to interpret my two questions correctly and accurately. [laughter] [speaking in chinese] [speaking in chinese] >> translator: my first question for president obama is many people do believe that the biggest problem in this relationship is the lack of neutral trust. do you agree with this view? how do you think the tucson shooting helps the trust, and how do you think the two sides should appropriately manage

their differences and expand their common interest? [speaking in chinese] [speaking in chinese] >> translator: my second question is for president hu jintao. we've noted that though the chinese and american leaders have on various occasions stressed the fact that the influence and the significance of the china-u.s. relationship have gone far beyond the bilateral dimension and china and united states share broad common interests and shoulder

important responsibilities in addressing a variety of regional and global issues, so my question is how do you think that the china and united states can step up their cooperation in a joint endeavor to tackle the increasing number of global issues? [laughter] president obama: well, certainly, the more that we can build a baseline of trust, as you called it a strategic mutual tru, the more likely we are able to solve the friction or irritants that exist in a relationship between any two countries in a more constructive way. [speaking in chinese] [speaking in chinese]

[speaking in chinese] president obama: which i think social it's so important that people in both countries understand the challenges that both country faces. [speaking in chinese] president obama: and not view every issue through the lens of rivalry. [speaking in chinese] president obama: for example, in china, many believe that somehow the united states is interested in containing china's rise. [speaking in chinese]

president obama: as i indicated in the answer that i gave in previous questions, we welcome china's rise. we just want to make sure that that rise is -- that that rise occurs in a way that reenforces international norms and international rules and, you know, enhances security and peace as opposed to it being a source of conflict either in the region or around the world. ..

to enhance mutual understanding. the more we understand each other's challenges, the more we can take advantage of opportunities. [speaking chinese] [speaking chinese] [speaking chinese]

[speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese]

[speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese] [speaking chinese]

[speaking chinese] >> translator: at the tournament to raise that question that, that in today's world, mankind faces more and more global challenges. i would like to address. that no country can remain in the face of so many global challenges and no country can single-handed early tackle global challenges. for example, in the field of fighting counterterrorism, security of humanity or in tackling the international crisis, promoting growth of the world economy and addressing regional hotspot, fighting transnational crimes, fighting piracy in preventing and treating communicable diseases. in all these areas, countries need to work together to meet

the challenge. china is the biggest developing country in the united states, biggest developed country. in this context, it is all but necessary for china and the united states to strengthen their cooperation to meet such challenges. then, how can china and the u.s. do a better job in working together to make global challenges? i think they're are three points i would like to make in these three points deserve our serious attention and consideration. number one, that are two sides have acted in the spirit of cooperation. as if we were in the same boats that we should row the same direction. when we tackled previous international challenges and i think we need to keep up the spirit in the future as we tackled challenges. number two, we need to increase their communication and

coordination. number three, we need to respect and accommodate each other's interests and concerns. i'm convinced that as long as the two sides continue to act in the spirit and as long as we continue to work together with other countries conference, we will be able to engage in cooperation in an even broader range of areas to the benefit of world peace and development. >> all right, everybody. thank you so much for your patience. due to the technical difficulties, president hu, once again, we appreciate your visit. we appreciate your dialogue and we are looking forward to having dinner with you later this evening. >> translator: [speaking chinese]

>> thank you, everybody. [inaudible conversations] [inaudible conversations] >> chinese president hu jintao is on it toward a visit to the unit states, his first since 2006. learn more about him and watch c-span coverage online at the c-span video library, with every c-span program since 1987, all searchable and all free. it's washington your way. >> in just a few moments, the house foreign affairs committee hearing on relations between the u.s. and china.

>> as president now, welcome chinese president hu jintao to the white house, the house foreign affairs committee was holding a hearing on relations between the u.s. and china. this is two hours. [inaudible conversations] [inaudible conversations]

>> at the briefing will be called to order. welcome to my fellow members of the committee, our distinguished panel of witnesses, honor champions of the struggle for human rights in china, for joining us today, ladies and gentlemen. there is an old saying that the chinese invoke when they wish to avoid political discourse in beijing. the mountains are high and the emperor is far away. well, ladies and gentlemen, this morning there are no monsters showed us and is china's newesti emperor has just landed in was washington on the front lawn of the white house, the pricing issues which separator countries need to be urgently addressed.a. three of those many issues, which will be the focus ofday's today's briefing include security concerns, human rightss and our trade imbalance and then chinese currency manipulation adversely impact the u.s.omy.

economy. wa when the cold war ended over two decades ago, many in the westrem assumed that the threat from communism had been buried with the rubble of the berlin wall. however, while america however, while america slapped an authoritarian china was on .h slept biggest mortgage companies, holding over $900 billion of our international debt. in these past two decades western observers forgot that while freedom blossomed in eastern europe reform in china failed. china was led by a cynical group of leaders to sobered by the teeeleven massacre and the marred by the blood of its victims were determined to go forward with economic but not political change. the china that embraced has fallen far short of the benign china which former decker to -- secretary of state spoke in the colony of freeze responsible

stakeholder to read a response will say : as this -- reported allows the transshipment of north korean missile components to run. it open defiance of those u.n. sanctions which has the five member states -- a five member states it is duly bound to enforce. there is a responsible stakeholder declare that the south china sea is one of its core interests in open defiance of the navigational and territorial not -- writes of a southeast asian neighbor? does a responsible stakeholder admonish the u.s. navy that it cannot operate in the yellow sea in the very waters where general douglas macarthur undertook the heroic landing which turned the tide of the war? would irresponsible stakeholder refer to the nobel peace prize committee as a bunch of clowns

for awarding an honor to a distinguished chinese human rights advocate? would irresponsible stakeholder the arrests of the wife of a nobel peace prize winner as further respond -- retaliation for speaking the truth about the gross human rights violations in china? the u.s. took a big gamble when it voted for premier and normal trade relations for china over a decade ago in what some termed as the most important vote since world war ii. the vote was based upon what i see as a sadly mistaken belief that economic openings in a free-market reform would lead to democracy, respect for the rule of law, and a full array of political and human rights for the chinese people. yet today, as we meet here, the research foundation estimates that they are close to 7 million people currently in chinese labor camps. it is as if the entire

population of switzerland were being held behind barbed wire. the ruthless campaign against practitioners, a peaceful organization which promotes trade, compassion, and tolerance, has continued unabated for more than 11 years. i was proud to be the sponsor of a resolution in the last congress which received overwhelming bipartisan support addressing the persecution of fallon gone. the brutal denial of rights to people of tibet and the weaker people, the forced repatriation of number three and red fiji's continues to draw the attention of concerned citizens throughout the world. the american people have also borne the brunt of china's mercantile trade policies which promote trade surpluses through cheap exports based upon an artificial depreciation of china's currency. jobs and american dollars have blown across the pacific to

china for the past two decades as the american people have suffered high unemployment and a diminished standard of living. last fall i was pleased to be able to vote in favor of the currency reform for trade -- fair trade act which overwhelmingly passed the house. we are back with a new energy from a newly elected member who is determined to take back america's economy and are committed to a foreign policy the stance with our allies and hold accountable those to threaten our nation's security interests. and please deterrent to my distinguished ranking member for this committee, mr. berman, for his remarks. >> thank you very much, madam chairman. chinese president hu jintao is in washington this week for a state visit. as we speak he and president obama our meeting at the white house. after an often tense year the

two leaders will try to set the contours of the relationship for the immediate future. the u. s-china relationship, one of the most interconnected and complex in global affairs has major implications for the future of asia and the entire world. the challenge for the obama administration is to manage that relationship in no way that strengthens our cooperation with beijing in areas where we have shared interests while at the same time addressing the serious concerns we have regarding a number of china's policies. china is neither an allied nor an enemy. it is both a competitor and a partner in foreign affairs, security, and economics. a key goal of our china policy must be to prioritize our myriad of global interests, identified those issues where we are most likely to positively change china's position and then find and use our leverage with the

chinese to achieve those changes and accomplish our wider foreign-policy objectives. in my view our highest priority should be a rock. tougher sanctions on a ron was a significant diplomatic achievement for the obama administration. there is ample evidence that chinese entities continued to invest in the energy sector of iran. this helps them avoid the full impact of sanctions and facilitate the continued development of a nuclear weapons capability which turns the u.s., our allies in the middle east, and china, which is dependent on unstable sources of oil from the middle east. we must intensify our efforts to ensure china's full participation in the multilateral sanctions is aimed against -- against iran. the u.s. and china must always deep in our -- as north korea's

economic lifeline beijing holds considerable leverage over perrier incoming yet it has been too slow to make it clear to the number three that security and respect can be attained only by giving up its nuclear weapons and refraining from other aggressive behavior. the promotion of human rights and political freedom is a central goal of american foreign policy. these universal values must remain essential focus of our relationship with china appears record in this area remains deplorable. moreover those values are in china's self-interest, both its international image and in its economic growth are dependent upon developing a society based on the rule of law. in the sphere of economic and trade one area of particular concern is china's theft of intellectual property and its indigenous innovation policy.

in addition to compliance with the recent wto decision, china must do more to stop the piracy and counterfeiting that occurs openly on streetcorners and over the internet and step up its enforcement efforts. the crossroads we currently face and the u.s.-china relations present less of a choice for the united states and more of the toys for china. the obama administration has articulated a pragmatic policy and in several key areas the demonstration has said some success. there is no sign that china has made a fundamental decision to change its decision of leveraging with heihtened political control and military modernization with regional and extra regional power projection. at the same time and so letting china as much as possible from outside influences. as much as the rest of the world looks to china to play a

constructive role it is not clear that china wants to play a positive influence beyond its borders. i look forward very much to hearing testimony from all of our witnesses today, and i yield back. >> thank you very much. now live would like to yield three minutes to its chairman designate of the subcommittee on asia and the pacific. >> thank you, madam chairman for calling this important briefing, i strongly believe that china is one of the greatest foreign policy challenges we must face in this century. china's wait in the global economy cannot be ignored. that nation's rapid modernization represents both opportunity and apparel for america. as chairman designate of the subcommittee on the asian-pacific i am keenly aware of the challenges our nation faces when it comes to dealing

with china. as experience has shown signs as unfair trade practices including currency manipulation, illegal subsidies and lax enforcement of intellectual property law make it very difficult for the hard-working people of america to compete on a level playing field that benefits this relationship. american manufacturers have been hurt most by this unbalanced relationship. manufacturing is the lifeblood of the 16th congressional district of the illinois, which i represent. our congressional district as summer between 142500 factories supporting more than 51,000 jobs. 24 percent of value added manufacturing in our congressional district represents exports. it is one of the most dense areas in terms of manufacturing base and one of the most exporting congressional districts in the country. these hard-working men and women want to know what their government is doing to enforce trade laws with china and

preserve america's industrial base bag. i hope our distinguished witnesses will focus their remarks on what the administration is doing and what it can do to urge the chinese government to follow the rules. very little has been done in the past several years. in my experience the chinese government is capable of stopping violators when they see it is in their interests to do so. so many americans are out of court. now is the time for this of ministration to work with congress to hold generous possible and give american manufacturers a chance to compete with china on a level playing field so that manufacturers can create jobs. madame chairwoman, i commend you for giving the american people a well-deserved voice and a look forward to the testimony of our witnesses. >> thank you very much. but we would be recognizing the ranking member designate, but he is not present.

we will proceed with the testimony. we are pleased to have as our witnesses a wonderful panel. thank you. we are pleased to welcome mr. larry wortzel to today's briefing. larry is a commissioner on the u.s.-china economic and security review commission appointed by speaker banner. among his many qualifications he served two tours of duty as a military attache of the american embassy in china and retired from the army with the rank of colonel. thank you for a briefing yesterday. also with us is gordon chang, currently a columnist at forbes. he practiced law in china and hong kong for nearly 20 years and has written extensively on sat and wrote rea. we are grateful to have him here today as he is a much sought after expert on the future of china's economy. but if mr. yang jianli is the founder and president of initiatives for china.

he was imprisoned in china following an outcry by congress and others for his release he was freed in april of 2007. immediately following his return to the u.s. he formed initiatives for china, a pro-democracy committee that is committed to peaceful transition to democracy in china. leslie, mr. robert sutter to has been a visiting professor of asian studies at the school of porn services in georgetown university since 2001. in addition to his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal agencies that lasted 33 years. we will begin with mr. larry wortzel. i'm sorry that i'm not so great

with the pronunciations, but look at my name. i don't get too picky. i will be rather ruthless with the five minutes, so please confine yourself to five minutes. larry, you are recognized. thank you. >> chairman, ros-lehtinen, ranking member berman, members of the committee, thank you for the opportunity to address you today. that use at present are my own informed by my service in the u.s. army, on the u.s.-china security and review commission and my own research. in late 2004 chinese communist party chairman ileana ros-lehtinen set out a new set of missions for the people's liberation army. these new historic missions provide the basis for china's future defense research and weapons acquisition plans. they also set the stage for a more assertive use of the armed forces inside and outside of asia in pursuit of expanding national interest.

the pl a military modernization efforts provide the means for the armed forces to fill these new missions. china's military modernization efforts are comprehensive, affecting all the domains of war including space and cyber operations. in recent years china has acquired advanced surface ships and submarines to modern combat aircraft, ballistic and cruise missiles, and advanced command and control systems that tie everything together. in addition, the commander recently stated that china will field a ballistic missile a potential threat against u.s. aircraft carriers in the region's. the pla is still the fallback force of repression for the communist party against the populist. the combination of these new missions and means to carry them out has brought about changes in china's military operation.

traditionally the pla focused on domestic response and local contingencies. now is a military with a wider range of missions and the activities. the dispatch of chinese naval vessels in support of anti piracy operations of africa is one example. china's national interests are global, and the pla is becoming a force capable of acting beyond china's periphery. a more capable military accompanies a more assertive chinese foreign policy. this can be seen in china's recent provocative activities concerning its disputed territorial claims in the south and east tennessee's and in the economic zone. china's military capabilities also stoke beijing's competence. china's him stridently complained about operations and the western pacific. beijing failed to condemn north korean attacks on south korea and strongly objected to a joint

military exercises in the region between the united states and south korea. in military operations beijing continues to circumscribe the range of discussions between china and the u.s. refusing to address strategic issues such s cyber warfare and space operations. i'm pleased to see that secretary gates get to visit the second until record and there was some discussion of nuclear doctrine during his visit. despite his noticeable -- a noticeable improvement in relations across the taiwan strait beijing continues to insist on the right to use force should it interprets taiwan's activities as moving toward independence. across straight military balance increasingly favoring china, and beijing has deployed over 1100 short-range ballistic missiles opposite the island. in my view taiwan's most pressing need is for new or

modernized fighter aircraft. china continues arms sales and support to international pariah states such as north korea, burma, and ron. in addition food and energy bad foreign investment that china provides to north korea indirectly enables pyongyang to continue its nuclear efforts, it shows its economic power by a stoppage by a supplier of rare earth minerals to japan and it was unhappy with japanese policy. madam chairman, members of the committee, the key for the opportunity to do it addressee today. i look forward to your questions. >> they do so very much and take you for the time limit. we appreciate your time. five minutes please. >> chairman ros-lehtinen, remember berman, distinguished members of the commission, thank you for the opportunity to be here today. the dominant narrative in the united states and elsewhere is

that china has the upper hand when it comes to the