if obama points another alayna kay hagan, that will control our country for the next 50 years. we can't afford that. so your up for this ..

>> i am delighted to have the opportunity to explain what i was trying to do with the book "china airborne." what i was trying to explain about china, american relationships while my eighth wife was here and i was living in china. the plan for the next 28 minutes, i have three main things to do. first, describe how i

thought i could tell the stories of china through looking at its high ambition. i and expected the was in world's i was not looking for and fought and it was surprising benefits. there is a fact about writing books. have many here have written books? how many intend to? the main event of the vice is you should only do a certain book if you feel you should have to. the process is so discouraging and corrosive you will find other things to do along the way. why am i sitting here?

the answer is not the you feel better doing it but you feel you can explain things you will feel satisfied. my thought there was a part of every other day which is the approach with the delightful and propaganda poster cover is a very different china. second, i will talk about the larger current under way affecting the rest of us

there are some that are more mixed but those larger themes finally i will talk about the big contemporary questions, a trend can of relations and what we can expect with the change of power. first with a background, second, the theme of china that i found self discovering and china it in the larger sense. that is the agenda. the reason i ended up writing the book when my wife and i first arrived in

shanghai which was the three years stint with return visits i found myself why looking through reports conveying from what was there on seen the main philosophy was to have reporters go around the world and a recognized there was a closed loop paradox but that is the order charge. some of the features to convey was the energy.

go on a car ride, bus ride the airplane and see something you had not imagined. almost every evening at dinner we would say you would not believe what i saw today. that is the excitement i wanted to convey to paradox how they could feel responsible to take tennis seriously and pay attention without being afraid it is worth paying attention even

if you don't think it is the master of the fate or the new videologic will order. i also wanted to convey it is true simultaneously some part of china. is it controlled? yes. good? yes. bad? yes. to find ways for more room with the range that is a vivid factor was my eight ambition. we were in beijing running up to the olympics we saw the way the country was optimistic and fearful.

the two months before the chinese foreign ministry authorized protest zones people could come the world press would see that chided is becoming tolerant simultaneously the security authorities the night all request and arrest those who apply. and the challenge of how to capture that. in the communication business was important to have that policy. the macro big picture here is a series about to the

future of japanese industry the other is the micro view provinces and successes that to tell the world what is going on that could be valuable. my wife did a wonderful book called dreaming in chinese if you merger self in the language there is a book i love and from a soap opera and violinists/slot on a tv drama and what she learned

by becoming a pop star. [laughter] i thought as the months went by i had a vivid microcosm tale no one had ever written about and cumulatively the story did tell you where the country was going this type of people live met to month after month and the landscape and one of the characters he grew up in shanghai will keying for

opportunities. his name was xu. he got to york and was appalled landing at to kennedy airport for recognizing the taxi fare exhausted and almost all of his cash. he got a job that night and another the next morning. he became a very rich and decided to return to china in addition to a coal baron iowa actually see him next week but a vivid memory of him on a commercial fishing boat and long island sound and on the backcast a giant

hook got into somebody else's eye. panic and despair but mr. xu said the captain said do not panic. coast guard will come so he watched his timepiece seven minutes 45 seconds when they arrive and learned his iowa's saved but in good health and he thought in my country this man would die. history was someday i will brain rescue helicopters away to be saved and across the territory people are

half lunatic but the dreams they apply so mr. xu along with the western return scholars association he has a helicopter company. i met a man that is famous for the aerospace industry. their 1/4 million employees is obviously with strategic chairman mao put it there because he said this is the point* that is farthest from the closest foreign border hardest to bomb by the russians and americans are japanese so this quarter

vermilion and can't meant but the man in charge took me into his office and showed me his statues. the man who liberalized the economy and if not for him i would be impoverished but the other was george washington. he could have been cain but decided not to. said man who grew up in the midwest look to fort -- worked for boeing. about 25 years ago how would you like to go to china?

not very much. if you want to be protected against layoffs that is in china. he became a boeing than faa's representative now most of his time is in a chinese office building with people he tries to train with air-traffic system part of the movement that is unpublicized that have imbedded themselves of transportation ever structure there is a list of other people one was the c.

d. sales man. he seemed that it is that the hong kong airshow to sell business jets to ambitious chinese millionaires. list but there is no place they could fly them. they thought it would be worth having as a sign of their magnificence one was done in cash. with a locker full of money would to just narco scale

activity but i open the book with a description of one other book with the man who is a whiz he had to sell a type of airplane now the most popular small airplane in the world. single engine with four seats and a parachute and for the entire plane. many people have been saved. he with selling these two people and who could not use them but one wanted to park it to him in his lobby in the business this so people

could sit and it it was a sign of the ambition of things happening in china and the limitations of the level they are at. in our life of traveling around china in japan marveled at the organization of corporations the way individuals are part of a larger system in china you marvel at the individual's the people with their big dreams and there is a tale

to tell some of the larger attention and development with this aspect you can see almost any other part one of them is the all out plush for modernization. how could they put up with these oppressions the main answer their recognize their life is much better.

thanks to the all out to push. the part that is under way is the 12, five-year plan. in the united states with a five-year plan sounds preposterous. it is serious in china. because of them change of the curve that looking backwards success has been in the low-wage factories but in the future they want to have high tech with a biotech and aerospace industry hedican move from its current who level is played out another major

theme is the real estate centric theory of modernization. to say why does this seaport go there? real-estate deals may not be the only answer but usually the first answer usually the first boom under way in china. this anybody know the actual number of airport is being built right now? maybe four. a small number. china has 100. assigned to build up

infrastructure and those who make money land for the airports, tractors you can see with the ghost city in china that same pressure is under way. you can see in the field is away everything is simultaneously but what is the balance between high-speed rail the answer is more than all of them.

something i will allude to a large seem to relations that is hardly discussed or for the republic of china but the unacknowledged sovereign of the boeing corporation. it is usually in a beneficial way here is one illustration 15 years ago. in major chinese airline got its first contract. when the first plane landed it was surrounded by safety inspectors that said no, no, no.

not with that may nance record. the airline was shocked. how can we buy your products? boeing said there was an arrangement between the faa, flight schools people do training this is the way to run safety systems the past have governance even today is a tripartite negotiation of china and united states and boeing to work out one our two other points with any if you know, first hand or theoretically to environmental challenges

are the worst problem. this affects aviation while the flight is resource savings and is easier than to build roads emissions are already the issue because there is a balance how terrible things are how hard industry's trade to improve them thank you jrue research project with lg fuel one of the most important environmental barriers turns out to be the chinese

military. airlines have to take an efficient routes if you listen to the pilots flying at 30,000 feet but in china they could fly at 10,000 which is much less efficient because of military regulations people tell me they could double traffic with no increase of the missions to loosen the military control. environmental common military issue and one other point*. the surprising parallel open and closed life that it seemed accessible there was

a way to do something if you had an approach or friend the zinn as the protest zones lead to people who being arrested it happens in the aerospace world the foreign presence is tightly integrated. so almost all of the drama under way if it can save the economy the ways in which it is connected they are reflected in the aerospace world.

to talk about china itself a point* about china and the united states. a crucial question but even beyond is whether china will be something different? look back over 30 years it is unrecognizable the different. i was there in the '80s. we were followed, the rooms were checked very few lights but now it is different.

but now they think it reaches the limit to based on the low-wage factories and it cost $500 only 50 stays in china. it is one thing to assemble opel it is another to have your loan. -- your own product. it could near the limit even in china there is only so many airports you can build and seaports. there is a fear they are entering the lower and come trap to never become rich. it is under debate saying if

we look ahead our remarks like germany and japan and the united states or mexico and has developed but not rich and? that is a huge question running through the political problems with the reason in a matter is the interesting connection with the people said as china prospers it will democratize it has very little but a different version may apply whether china can become

rich if not more liberal and is one question is in addition to the environmental one but the united states is how we use the example things better rate and wrong have almost nothing to do with china. what is most rate to attract and exploit around the world. i am glad they are trained here. what is a good is not directly related to china but it is not china's faults

our income is distributed but the challenge is to see me can manage the same situation to say we welcome support with the tolerance though the poor country without feeling directly threatened the simultaneously recognizing how we disagree strategic issues political values and the rest. there is significant success over 30 years to manage the relationship so world power has not caused more conflict and it has. there is more i can say but

for now that is my opening pitch. having a cast of characters who all the things that interesting how it modernizes increases of liberty there are large scale tensions for china and our relations which i hope to shed some light. thank you for listening to this portion. my editor will join me up here. i look forward to your questions.

[applause] >> thank you to jim and the commonwealth club. we were colleagues back when and followed him i entire career and was a great privilege to work at the industry standard when i managed to convince him to come on board that to he would be our role model for the young staff and he accomplished that in spades. >> it went from the fattest magazine to not being around a year later. but we are grateful. [laughter]

there are a lot of topics to discuss but one of the core questions with the american relationship to china it is a core part of the book how american companies can and should relate to to their chinese counterparts with the role of certain individuals and a cynic would say that is idiotic they give the way their competitive edge then the chinese companies put them out of business? >> all attitudes are correct

the chinese economy like the japanese economy of world war ii and the u.s. economy 1840 through 1890 piggybacked on other developments. read the charles dickens diary he was furious of the pirated versions of his book this is an unfortunate but familiar trait of a catch up the economy is illegitimate role of u.s. government policy and a corporate strategy to put pressure to change these practices.

one of the deals the u.s. was pushing for was different intellectual property regime from the chinese officials. where the outside world deeds to keep pushing. i have a genuine timex watch but in china ahead of $5 rolex. in mainland face a by the rolex but in hong kong they have to say fake rolex. there is transparency. but they must be hyper could be vigilant to recognize taino will trap itself it

will not have its own pharmaceutical companies or corporations with the national brand those that have its ge and the rolex would suggest a lot of other changes that is the important point*. the crown jewel is the engine so rolls-royce our thinking all the time how they can do what and they must to keep the most important work safe list

amax haq day been properly vigilant? >> time will tell but they are hyper aware aerospace analyst thinks the chinese in gin is extremely weekend -- weekend but with that gap in place of china's succeeds it will suggest a lot of other things will have been solved. >> with things changing and intellectual property and role of law somehow for china to become wealthy, has to become western.

is that happening? >> in the west we think democracy and liberalization as one package. china's emergence shows how they can be separated. it is the only major country with a no vote. all those still too few thiser e university and thethis interesting they have a certain number of the university and the free speech with intellectual

property protection with the cultural basis of capitalism. china needs in to manifest. >> with the change in of leadership is ahead in that direction end or reverse? talk about the left right to split to see a tightening of control almost any hypothesis is possible why

it is the difficult of what will happen. most recent and indicator over 30 years there variations up and down of liberty is within china but the trend is positive less communist over the last three years and it is reverse a condition of permanent emergency whether the olympics where the shanghai expo so nobody knows if it is a three year

blip or if it is a turn. i hope it is not a turn but it could be. part of the tension is people with different views what is most wrong with china. with billionaires pulling the oxcart with his shoulders to many left behind others say is still too arbitrary not rich and modern so it is being played out. >> is it fair with the left/

right split? >> you could. but it process -- probably misleads more americans the only communist in china was the cuban ambassador was the joke. [laughter] raging these public letters criticizing china how likud be reconciled we could call it that but the kind is so at odds with what we have in mind i try to avoid that. >> should america sphere china and and particular always of the year from japan at one point that

turned out to be misplaced. how does that compare? and is fear and worry a good response? >> to the most different countries are japan and china.

there was reason to be more fearful of japan. with fear itself by asked are we going to hell and falling apart? america craves the specter of imminent collapse to do business. [laughter]

it is part of our nature but it tidies can build wind energy why can't we also finally they have so many more problems you do not know where to start. people who spend time in the interior that the should be afraid of the country that has more peasants and we have people and

environmental problems and a party boss said you think of everything in china multiplied times 1.3 billion but we think / 1.3 billion. [laughter] >> the book and is about aviation. if you think of the other industries is comparable but different house? >> used it as a category of the apex industries and how they are different.

so far it is from what outside company is. japan it was very hard. but with some of factory boom it got it to a certain point* those with the pharmaceuticals or the internet applications because to succeed this this of structure ascertain kind of institutions military relations aerospace clean

energy pharmaceuticals high end this with the chinese once to develop as the specimen the the 13th and 14th beyond that. hot it is developing a how does that compare with the early development in the united states? >> it could not be more different.

also which is talk, the hour and dallas-fort worth. the single casey emergence of the early 20th multiplicity of funding sources. but also -- also the postal service most industrial policy to say this is the market for airplanes and individual barnstormers. we had a rich structure. it has been military from day one. they are noisy but not from overhead it is the effort of

the soviet economy going from military run to put it into the civilian world. it is a trick but something they have not been used to and it is an interesting test case. >> talk of a giant airports. will those be real airports aren't and 20 years the the white elephant? >> that theory is heavily populated. it is worth one recognizing they serve an important

role. united states has 5,000 airports of which 100 + are suitable 1/2 list your than 500 records but looking at the booster project people live in the equivalent to building a huge rush away. the conference of silicon valley, they will not do that.

but for the motion of people it is communist keynesian them -- keynesian but talk about the general enthusiasm and the joy of the prospect is that talk about aviation? >> some had the hong kong air show a man who probably his late 50s always dreamed of being a pilot but failed

in the cold body exam. [laughter] he became a wilder the ended up making a ton of money for moral exhibitions around china now building his own airplanes and his own airplane at the airshow sang my childhood dream has come true. there is a lot of cynicism ion eating bitterness the cockeyed optimism you see

more chinese people but to america as a whole to say my age three ms. and has a feeling among a lot of people in it is fun to be a part of. >> when you read the book you talk about the entrepreneurs creating famous from nothing but it is almost all guys. when is the prospects of our female entrepreneurs? >> anybody who spent time recognize the chinese women are the dominant force.

not structurally but force of well but many times you will find chinese corporations with political representation therein is discrimination against the girl babies. i describe china's most famous female pilot is a piece of work. in her mid-40s she is pitcher with a lot of poses and travels with her son to say this is my son. most people think we are siblings.

[laughter] he rolls his eyes. but the texture and is important female with strength and ingenuity. >> well we see the emergence of female entreprenuership? >> yes. a woman who had a scrap recycling business she is an important factor so yes we will see more prominent women including a entrepreneurs. >> last question. what is the most important to thing for high school students to understand about

china? >> let me think how to answer. they should learn to feel comfortable revere or learn the language but to feel at ease rather than threatened. one of the best things for china either they stay here or go back to china so if america and high-school students could spend the time on the scene so they are comfortable in their