country-of-oof-origin labeling - it's called cool -- was not reached. as a result, our livestock produce, who are already facing drought and high feed prices but now we're going to have to worry about retaliatory actions by the governments of canada and mexico. our ranchers are equally troubled at provisions in the house bill directing the usda to refocus their efforts on the grain inspection, packers and stockyards act -- the acronym for that is gipsa -- they were excluded. another regulatory relief provision was already cleared by the full house and the senate ag committee. it would have ended the duplicative national pollutant discharge elimination system. i won't try the acronym for that. these are pesticide permits required by the environmental protection agency. we had an opportunity to protect human health and eliminate duplicative, unnecessary regulatory actions and instead,

despite hollow commitments to work together to resolve the issue, we were all blocked from including the simple and necessary regulatory relief. eep oeach of these regulatory rs had bipartisan support, but now producers across the country are left without an explanation and, much worse, no needed relief. i am shocked at how far some members will go to protect this administration's regulatory agenda instead of protecting real hardworking americans. after all of that, let me point out that with any large piece of legislation, one can usually find some positives to point to, and today's farm bul bill is no different. while i support many of the programs in the less talked-about titles of the farm bill, i am especially appreciative of the i inclusion. our producers across the country, number-one issue that we heard over and over and over

again in every corner of kansas, has said that crop insurance was their number-one rioter fo prior the farm bill. secondly, they said get the regulations off of our necks. regardless of the size of their farm or the commodity that they grow, as this bill moves forked, the risk management agency will be offering exspantsded coverage for commodities like cotton that have not traditionally participated. however, i am concerned that the conservation -- pardon me, that the conservation compliance requirements included in the requirements on cropping insurance, not on being a farmer but on insurance, will u unnecessarily burden producers who are already good stewards of their farm and already subject

to conservation requirements in the commodity programs. this is a duplication. more paperwork. as the western half of kansas continues to linger in an historic drought, the lack of livestock disaster programs that expired in 2011 is truly upsetting. while we should have never let the programs expire in the first place, we had an opportunity in 2012 to reauthorize them, but the senate failed to act over my calls of afntl action. all of the livestock disaster programs are finally retroactively authorized, but the assistance will be too little and too late in many parts of cattle country. some have had to go ahead and -- well, they just lost part of their herds and even strains of cattle. unfortunately, as a kansan, as well as a member of the senate agriculture committee and the farm bill conference committee, i'm disappointed to say that the final policies of this farm bill do not outweigh the positives.

while we all want to provide certainty to producers, the cfns has missed an -- the conference has missed an opportunity for necessary reforms to our nation's farm programs, federal nutrition programs and burdensome regulations. after over three years of debate, the challenges that agriculture faces at home and across the world have only continued to grow. we need 21st century policies and innovative solutions. instead this bill misses the mark and goes backwards to protectionist programs. now, the issues i raise today deserve to be debated fully and publicly, and i'm going to do that later in later remarks before the senate. i know time is of the essence here. yet the full conference committee met only once for opening statements last october. with all the ramification ramiff

the farm bill, we met once last october -- three minutes apiece. in truth, the majority of this bill was negotiated behind closed doors without the opportunity for votes, amendments, or discussion. too much of that around here. producers, consumers, and our global trading partners expected more. unfortunately, you as taxpayers deserve better than this conference report. i did not sign this conference report last night and cannot in good conscience vote for this legislation. but, i will promise this: to all the members that worked so hard to get a bill: i will continue to work and advocate on advancing agriculture. i yield back. i suggest the absence of a quorum. the presiding officer: the clerk will call the roll.

quorum call:

the presiding officer: the majority leader. mr. reid: i ask that the call of the quorum be terminated. officer without objection. mr. reid: i ask that the senate proceed to a period of morning business with senators permitted to speak up it ten minutes each. the presiding officer: without objection. mr. reid: i ask unanimous consent that the senate proceed to calendar number 230, s. 1302, that the committee-reported substitute be considered, the harkin-roberts substitute amendment which is at the desk be agreed to, the committee-reported substitute as amended be agreed to, the bill as amended be read a third time and passed and the motion to reconsider be reconsidered and laid on the table with no intervening action or debate. if the senate receives a a bill from the house, that it -- that is identical to the text of

s. 1302, as passed by the senate, then the house bill be read three times, passed, and there be no intervening action or debate. the presiding officer: is there objection? without objection, so ordered. mr. reid: i now ask unanimous consent the help committee be discharged from further considers of s. 334. the presiding officer: the clerk will report. the clerk: senate resolution 334, recognizing the goals of catholic school week and honoring the valuable contributions of catholic schools in the united states. the presiding officer: is there objection to proceeding to the measure? without objection, the committee is discharged. mr. reid: i ask unanimous consent that the resolution db the presiding officer: the senate will precede toed measure. mr. reid: i ask unanimous consent that the preamble be agreed to, there be no intervening being a or debate. officer sphe without objection. mr. reid: you now ask unanimous consent that the presiding officer of the senate be authorized to appoint the committee on the part of the

senate to join a like committee on the part of the house to escort prim president obama to e house chamber nor the joint session to be held tonight a at:00 p.m. -- at 9:00 p.m. officerster without objection, so ordered. mr. reid: i ask unanimous consent that the senate recess until 8:25 today. upon reconvening, proceed as a body to the hall of the house of representatives for the joint session of congress. upon the dissolution of the joint sessionings, the senate adjourn until 10:00 a.m. on wednesday january 29, following the prayer and pledge, the morning hour be deemed expired, the journal of proceedings be approved to date, the time for the two leaders be reserved for their use later in the day. following any leader remarks, the senate be in a period of morning business for an hour with senators permitted to speak up to ten minutes each, with time divided and controlled between the two leaders or their designees, with the majority controlling the first half, the republicans the final half.

following morning business, the senate resume consideration of the motion to proceed to s. 1926, the flood insurance legislation postcloture, that the time until noon divided and controlled between the two leaders or their designees, and that at noon all postcloture time be expired. the presiding officer: without objection. president obama will deliver the state of the union address at 9:00 p.m. tonight. the senate will begin gathering in the senate chamber at 8:20 and depart at 8:30 to proceed as a body to the house. if there is no further business, i ask the senate recess under the previous order. the presiding officer: the senate stands in recess until

ms. landrieu: wonderful. thank you. i'm going to speak on the bill that's before us, and i really appreciate the cooperation of so many members last night that voted to move forward on the debate of the fix to biggert-waters. we had a very strong, very impressive vote. i think 83 members, republicans and democrats, came together from all parts of the country, from all different areas and districts and backgrounds to vote to move forward on the debate on flood insurance, and i'm really grateful. we have been working on this for about a year and a half. it's been a tough slog because two years ago, a bill called biggert-waters was passed, named

after the two cosponsors in the house, congresswoman biggert and congresswoman waters, who passed a bill with very good intentions, thinking that they were going to strengthen the flood insurance program. the bill had wonderful intentions, but unfortunately the way it was finally drafted in the conference committee, it's had disastrous results. and some of us knew that two years ago and started working literally the moment the bill, the conference bill was passed to begin changing it. and so we have worked diligently and together and built a great coalition. i really want to thank the 200 organizations that came quickly together over the last year and a half, as quickly as any of these things could have happened in a practical sense, to really understand what went wrong in the first bill, how we could fix the first bill, how we could fix in the first bell, how we could

fix it so we can accomplish two really important goals for the national flood insurance program. one, the program could be self-sustaining and pay for itself with limited or amenable taxpayer burden. but the other equally important goal, and another surprisingly, representing new jersey homeport has those, like i understand for louisiana, the other equally important goal was the program could be affordable across the himalayas. if it's not affordable to middle-class families, they won't participate in it and the program will go bankrupt for lack of participation. in insurance, the idea is to have a large pool to spread the risk and that is how an insurance system works. wow, what bigger waters did and if we don't fix it is going to make back its tolerance mahler

and smaller because people will not be able to afford it. the program of collapse and taxpayers will be in debt. so the goal of our coalition, which is glad by senator menendez, your senior senator from nature's the time the banking committee has been one of the great spokesman for the san leaders, senator isakson from georgia who is the most respected member in the whole body on issues related to real estate because he is one of the largest real estate companies in atlanta, and is the issue of outcome is very respected on both sides of the aisle. these two gentlemen have fled this after and have built a bipartisan coalition. so we are now ready this week of all weeks, the state of the union week, just the way things were, to debate the bill on the floor of the senate.

at last count when we left, there were about six or seven relevant that matched him at the omega we are going to ask that the relevant amendment to the bill. we're not going to accept amendment another sub checks in an effort to derail, get us off topic comment better, et cetera. we will accept amendments to this bill. a happy thing as we think we only have about seven or eight amendments republican, senate democratic. we just received an amendment to one of the opponents of our bill is a good senator from pennsylvania who has not been supportive of our bill, who has not worked with the coalition, was not cooperate in any way. he has filed an amendment an hour ago. we've been waiting for a year and a half here last may he

opposed the bill i couldn't get to the debate because he was the hot here in the program were going in. it is not -- what is this month? january. so, he opposed the bill in may. it set us back seven months. we try to explain to the senator from pennsylvania to 74,000 people in the state and whether he will reconcile that with his constituents, i don't know. we literally come after asking and asking and asking for his comment, thoughts, input, let us know what we can do, the homebuilders will sit down. we finally, at the last hour get a draft of his amendment in the last hour. we are literally reading it for the last time country -- first

time. so, we are reading that amendment now. i don't believe this amendment is going to help. it is going to undermine what we are trying to do. i'll have more comments about the specifics of it. the senator of pennsylvania for whatever reason has not been cooperative doubletime. we will be happy to vote on his amendment gave me a man that will do great harm to the bill and engage our coalition at this point to vote no. i am going to go look at it. senator isakson has just received a copy of it in the last hour. all i can do is ask our colleagues to be patient while we review this 13 page amendment. we are trying to get a 200 page organizations. we are trying to be fair and get their input and then we will know how to succeed. the bottom line is this.

they speak we are going to pass a flood insurance relief bill off the floor of the united states senate. i want to put everybody here on notice that we have run out of patience. we have been working on this for a year and a half. we were told before christmas we could have a bow. then we were told we could have a bow when we got back. then we were told we could have a vote before we left. there's no more time. we are voting on this this week. we're either going to do it the easy way or the hard way. we'll either have a few amendments the democrats put up and get back to the just waiting like we should or the leader is going to file cloture on this bill and we are going to pass it without an amendment. if one single republican comes

to this floor and says they did not have time to discuss their amendment, we will debate until the cows come home because i am not leaving this floor until every single person in america knows the games that can be played at pier. i have been more than transparent. i've been more than honest. i've come here more than any senator. it's the only way i know how to lead is to be forthright and honest with myself, with my constituent and people that really need to know what the heck is going on up there. i just don't know how else to do it. i am not going to apologize. i am not going to read about how to do this in a book. there are no books. this is about leadership from the inside and the only people that i made this for my parent. so i'm just saying, if anyone in this chamber thinks they're going to get away with trying to

get some flimsy lindsay excuse about how they didn't get their amendment considered, how they're upset with the leader, they'll have to go through me and i am not moving. i've got people all over this country that are desperate. we should not have passed it. we must fix it and we are going to fix it this week in the united states senate. what the house does, what speaker boehner does, he made some negative comments about the bill last week. the speaker has his hands full. i would want his job. he's got a tough job. he's got a lot of issues to juggle. but i sat and i will say again, when this bill comes to the house, which it will when it passes the senate this week, he

bushier for millions and millions of americans that pay their mortgage every month, they went to work every day, who honored their family and places that they have been for generations in there about ready to take this route were keys and walk away from their house. speaker boehner is going to hear that. i hope those words, those expressions come at those pictures, those letters will hit his heart the way they have had mine and he will have a softened heart and open mind and he will consider what we are trying to do. i realize that our way may not be the most perfect way, but it is a good way. if somebody wants to improve this, fine. but don't scuttle it pretending you are helping. don't scuttle by pretending you are for some kind of better

approach. if there is a better approach, we would've found it in the last year and and a half we've been searching. you're not going to find it in the last three minutes of this debate. so, we are read viewing the to me amendment. he's been the leading commander. until i read it, i won't be able to get definitive. senator isakson will have to give his views. senator menendez will give his design and we'll figure it out. we are going to bring relief to the 5 million people that have done nothing wrong. middle-class families, many of them. some of them very poor families have been living in places for generations and because fema can't get its flood maps right, because the mechanic at the affordability study done, they are going to be kicked out of their homes? talk about misguided regulation.

i hope that mitch mcconnell, i republican leader, talking about misguided regulation would put a little muscle into helping nasa and he's been cooperative and i thank him. senator reid has been putting a lot of muscle into this and i think ken. but you know, i hope people will come to the floor and speak about the importance of this bill, figure out this amendment process. all germane amendments and get this final vote this week. you know, this is going to get done this week the easy way or the hard way. we are done in the book is going to happen this way and we are going to have this bill to the floor. to the president to put out a statement to his administration that day, you know, didn't have many positive things to say about this, let me just say this

statement was misinformed, misguided. i'm really hoping the white house spoken sitter. the president is coming to the white house to talk about strengthening the middle class. allowing middle-class people to stay in their homes to be a good place to start. i hope the administration will take a second look at this and join us and help us to let the first day of my stay in homes. colorado is a beautiful state. i've been there many times, but not many people can live in colorado. they have to live along rivers and streams import and to build and support the infrastructure that helped make this country grow. not people who fish every day, who harvest the oysters him of his thesis on the table, to bring those huge magnificent arches have been on the river. they can't live in vail,

colorado. i'm sorry. they don't like the snow and they couldn't afford to live there anyway. they live in little places like denison province that got flooded out, every single home destroyed. they can go back if these are science, engineering, brain and lead with our heart in our heads, this can work. if people are trying to score political points or if they're not working hard enough to understand the issue, then i feel site for them because the public needs our help and i yield the floor. >> i realize that tax reform and entitlement reform will not be easy. the politics will be hard for both sides. none of us will get 100% of what we want. but the alternative will cost us jobs, hurt our economy. this is hardship and millions of

hard-working americans. so lets that party interests aside and worked to pass a budget that replaces reckless cut with smart savings unwise investment in our future. let's do it without the brinksmanship that stresses consumers and stares off investors. the greatest nation on earth -- [applause] -- the greatest nation cannot hurt for one manufactured crisis to the next. [applause] we can do it. [applause] let's agree -- let's agree right here right now to keep the peoples government open and pay our bills on time and always uphold the full faith and credit of the united states of america. >> watch president obama delivered this year's address. our preview program starts like tonight at 8:00 eastern with the president at 9:00, followed by

the response from republican conference chair, kathy mcmorris rogers is your reaction by phone, facebook and twitter. the state of the union tonight, live on c-span, c-span radio and c-span.org. >> on facebook, we asked which issue do you want president obama in congress to address this year? winnow congress will not work with obama, so we need to go people and that will work for the good of all the people. >> this is where the clintons lived when they were professors. in fact, hillary's first year teaching here, bill was driving down the road and and a

townhouse for sale and hillary clinton at the houston said that's a cute house and bill took her to the airport and picture from the airport a month later and that i bought your house. you have to marry me and looked me in it because i can't live there long. i was in fact the fourth time he had proposed. >> there were nine people at the wedding. a small, intimate ceremony. hillary was retaining your own name. bill didn't seem to be bothered by this, however when they sold virginia and many toddlers mother, she cried. the place where they really settled then, they really thought they arrived. they got married, bought a house, had successful jobs as law professors. they kind of reach where they have achieved a lot of things they had pickles for life.

>> senate foreign relations committee today held a confirmation hearing for montana center, max baucus, who the president nominate to be the u.s. ambassador to china. senator baucus was asked about trade, human rights and pollution concerns of china. new jersey senator robert menendez chaired the honest hour and a half long hearing. >> one of the biggest challenges in biggest opportunities before u.s. foreign policy today is getting the relationship between the united states and china in the context of our rebounds for the asia-pacific right. i can think of few individuals were able and qualified at this important moment in history than our friend and colleague, the senator from montana to provide advice and guidance to the president congress about how to get the relationship right. is your welfare welfare commission is likely to become the world's largest economy in all this need to embrace that

fact. six of the 10 largest container ports are china as our numbers 11 and 12 on that list, which presents terminus opportunities for american exporters. u.s. experts china have increased by $40 billion in the past three years alone from 67 billion to 106 billion to mccready and sustaining u.s. jobs in sectors across the board from under board fermata built in power generation, machinery, aircraft and other vital industrial sectors. do the rest of the 21st century and beyond, much of the strategic, political and economic future of the world is likely to be shaped by decisions made in washington and beijing and the capitals of asia over the next four to five years. the key challenge he will face as ambassador should you be confirmed and i'm sure you will be confirmed as how to recognize strategic and economic realities unfolding at the rise of china.

the plan integral role in reconceptualizing problems we face on how to turn them into opportunities. the strategic decision by the obama administration described as a rebalanced asia was absolutely right. had confirmed to be essential player in conveying a clear message the entire region that america is an asia-pacific player and will be part of the region for the long haul. it will continue to extend efforts rebalance our foreign policy to the asia-pacific are making sure resources are there to work with allies and partners to shape the broader regional environment and context of china's rise. disagreements need not lead to conflict and labor under any false pretense we are not going to safeguard and promote our national interests. we need to work with china and other allies to construct the new rules-based order for the asia-pacific community built on open and inclusive diplomatic security and economic mechanisms

and institutions. we look forward to hearing from you, senator baucus, surely appear that measures the distinguished ranking member, senator corcoran for his opening statement. >> thank you, mr. chairman. appreciate the way we work together. i want to thank you for being here, senator tester for introducing senator baucus for being willing to serve in this way. i appreciate the relationship we've had in my seven years in the senate. appreciate the frank conversation we had in our office about this post are getting ready to assume. i thank you for your willingness to do it. the most important -- i think you know this, the most important relationship with the nation will have over this next decade will be with china. my guess is, you know, it is not a relationship that is particularly well defined. you will be going to china in a period of time and in a position

to really shape the relationship many americans today wonder whether china is friend or foe and candidly, you will have a big impact on how the outcome emerges. i think it's an important relationship. we should do everything we can to strive to make sure we complement each other's countries and i think you're going to really strive to do so. as the finance committee chairman ebert so many trade issues, have been an advocate for trickery trade and i know you'll continue to do that in this position and yet we need to shape it in such a rate the western values we care so much about are front and center. stability in the region is very, very important and that's probably an area you spent less time on in your post as head of finance and yet with china doing what is right on this in east china seas, a lot of 10 created

between japan and china. we hope this greater global we should take ways. he'll be leading this effort then again i thank you for your test money, which will take place in just a moment in your willingness to serve in this way. i'll stop by mr. chairman and look forward to a project in session. >> thank you, senator corcoran. we are pleased to welcome a friend and colleague, the senior senator from montana. >> tunica mr. menendez, senator murphy. it's a pleasure to introduce max baucus introduce max baucus to the foreign relations committee. max is a legend in montana. has committed and passionate thought you 29. that is why montana's trusting

him to present that great state for nearly 40 years. otherwise pay later the senate finance committee, max and his issues affecting our relationship with china better than anyone. max's anti-china eight times. he's led trade in agriculture missions there. he knows the chinese leadership. chairman of the finance committee, max also no right now. aeschylus serve them well as they represent her interests are second-leading trade partner. maxis commitment to economic opportunity is paid off for montanans and americans for literally decades. as ambassador, he will have the opportunity to take his passion, his work ethic and knowledge to the next level. if max is confirmed as the next ambassador to china, he legitimate element in an overseas, our current ambassador to russia, michael mcfaul also hails from the big sky state. it is really the footsteps of

another montana legend that max is prepared to walk in. after 24 years in the senate come including a record 16 as majority leader, mike mansfield became america's ambassador to china in 1977. as a teenager, max met senator minnesota became a lifelong mentor to max. with his deep knowledge of china from international trade in a work ethic that senator mansfield would be proud to, it is my pleasure today to introduce you to max baucus. finally, i say this. it is the mixed emotions today that i introduce to you max baucus. as a u.s. senator, max and a friend and mentor of mine since i've got here, since before it got in here. i remember when i thinking about running for the united states senate, max baucus is one of the first people i went in to a tear in his office in washington d.c. max looked at me and that, do you have the fire in the belly? if you don't have the fire in the belly, don't do it. i can tell you unequivocally

here today, max baucus is the fire in the belly to the next chinese ambassador and he will represent this country very well in that capacity. with that, mr. chairman, introduce to you, senator max baucus. >> thank you, senator tester. we know your schedule, so you are welcome to leave when you feel you must. and now, senator baucus, the floor is yours. you are full statement will be included in the record. don't hesitate to summarize it as you choose. of course this your lovely wife is here if you want to introduce her to the committee as well in any other family or friends are welcome to do so at this time. >> thank you, mr. chairman. i want to thank my colleague, jon tester. we're lucky to have such a good colleague and friend. he's in amazing man. i like to introduce my wife, melody and daughter-in-law, stephanie. guys, please stand so we can to you. melanie and stephanie.

stephanie is my daughter-in-law. stephanie baucus, wonderful, wonderful family, means so much to me. >> welcome to the committee and thank you for your willingness as well. we understand that when our ambassadors go abroad, it is also a commitment of their families, so we appreciate that. >> mr. chairman, ranking member corker, members of the committee, it is number two peer before u.s. president obama's nomination service the next united states ambassador to the people's republic of china. i think the president for his support and trust. he's a true friend you might've been nice to get to work with closely over the years. i also appreciate the support and confidence of vice president biden and senator kerry with them i served here in the senate for many years. i'm also grateful to ambassador jim sasser, john hunt, gary

locke or their friendship to counsel. they were tied to build a strong relationship between an aids in china. i'm humbled to have the opportunity to expand on that foundation. the united states and china's relationship is one of the most important bilateral relationships in the world. it will save world affairs for generations to come. we must get it right. if confirmed, i look forward to working with members of this committee and other members of congress to achieve that goal and strengthen ties between our two countries. my fascination with china goes back the tears to my days as a college student staffer. as a young man, grew up on a ranch out in helena, montana, full of curiosity. i packed it back pack. i took a year off from my studies.

hitchhiked around the world, what not to visit countries and only imagine india, japan, china just to name a few. before the party, and never thought about the life of public service. but that trip opened my eyes. i realized how people across the globe are interconnected, how we are all this together. basically the same values, the same wishes to put food on the table, we are all in this world together. we are all interconnected. i saw the vital role america plays a leader on the world stage. we are the leader. i return to the states of the focus and commitment to a career where i can improve the lives of fellow montanans of fellow americans. came to washington in 1973 with the whole of working with my colleagues in congress to address challenges facing our

nation. throughout my career, i've tried my best to do just that. i'm proud of the role i've played spearheading environmental protection and strengthening america's help and fighting for montanans. and especially proud of the work i've done to build ties between the united states and countries around the world. my capacity, ranking member of the passage in enactment of free-trade agreements with 11 countries. australia, bahrain, jordan, chile, colombia, baraka, panama, peru, singapore, south korea. my position has allowed me to travel to emerging and established markets on behalf of the united states. since 191011 ki-moon ban on the ground working to enhance your straight interest in germany, spain, russia, japan, new zealand, brazil, colombia and china. i have learned lessons along the

way. one of the most important i've become a firm believer in the strong geopolitical relationship with or not of a strong economic relationship in which often begin to trade. in fact, america's relationship with china begin with trade. in 1784 chemie history shape of the efforts of china sailed into what is now the port of rome show. that visit open a trade route to move small amounts of tea, silk and porcelain. today, u.s.-china trade accounts for more than $500 billion of goods and services each year. for my first official visit to china in 1993, to my most recent in 2010, i've worked for economic diplomacy to strengthen ties between the united states and china. i look forward to continuing that work to build a stronger, more equitable economic relationship between our countries.

if confirmed, hope to accomplish two overarching goals. goals that are critical to our relationship with china and help achieve our shared interest as a safer more prosperous world. first, to develop our economic relationship with china in a way that benefits american businesses and workers and second, to partner with china as an emergent as a global power, encouraging to act responsibly in solving international disputes, respecting human rights and protect any environment. when i visited china in 2010, i met with president chi chen, who was then vice president. we discussed a range of topics including chinese currency policy is come enforcement of intellectual property rights, terriers to u.s. exporters. i remember president she stressing united states and china have more common interests and differences he and his words, cooperation between our nations can help drive peace and

stability. in fact, use that word, cooperation repeatedly. the years on both sides of recognize we have much more to gain for cooperation. i believe that as well and i see many areas of our relationship for cooperation is not only possible, it is vital. china must be fully invested in a global rules-based economic system. if the economy continues to expand rapidly grew 7.7% last year and china as the world's second-largest economy and one of our largest trading partners. how do we continue to bring china into the fold? engaging chinese through bilateral talks and regional forums. engagement will allow us to identify shared goals, allow us to achieve concrete results. a finance committee chairman i were to bring china and the global trade community. i met with jim showed me and

pushed to -- and supported its entry in the world trade organization. the strategy has already paid dividends. last year china agreed to negotiate a bilateral investment treaty in the united states. one that adopts a high standard approach to national protections. the treaty will mark an important step opening china's economy to u.s. investors and leveling the playing field for american businesses. we have much work to do. cooperation is critical and geopolitical issues. as china emerges, it has the responsibility to contribute more to reserving the regional and global security. north korean nuclear issue is one example where u.s.-china coordination is in both sides interest. if confirmed, i were to urge my chinese counterparts to double their effort is to press for

korea to denuclearize. countries in asia-pacific express concerns about china's pursuit of territorial claims along the periphery. if confirmed, i will urge china to follow international law on maritime issues and other international standards and stressed that all sides must work together to manage and resolve sovereignty disputes without coercion or use of force. i'll continue to make clear the united states welcomes continued process across state relations. i also encourage china to reduce military deployments aimed at taiwan and pursue a peaceful resolution across state issues. as the united states encourages cooperation with china, it must also remain loyal to their values that define us as americans. if confirmed, i will urge china's leaders to protect universal human rights and freedoms of all is the same, including ethnic and religious

minorities. i'll call on chinese authorities to reduce tensions in tibet and every start and subsequent talks with the dalai lama or his representatives without preconditions. if confirmed i will not eat combined to beijing. i will be in the field working to solve challenging issues facing our two nations and building relations between our two peoples. i look forward to visiting with the people of china i'd be honored to be a guest in their country, to listen and learn from them. ambassador locke has told me the outstanding team of the embassy in beijing. and the american consulate across china. if granted privilege to serve as ambassador, i'll be fortunate to have a dedicated team of hard-working professionals at my side. this week, chinese and other communities around the world will celebrate the start of the lunar new year. it will mark the time of renewal, new beginnings, the

opportunity to serve as ambassador will mark the new beginning for me as well. if confirmed, i will strive to strengthen the relationship and benefit our two countries in the world. chairman menendez, senator corker, members of the steam committee, cheney met for the opportunity to appear before you. i will submit my remaining testimony for the record. i welcome your questions. >> thank you for the comprehensive introductory statement and your entire statement will be included in the record. let me start off. you are extremely well-versed in all of the economic trade and related issues and i think as someone who has had the privilege of sitting on the finance committee under chairmanship, i've seen that firsthand. as he you recognize in your opening statement, and this is a pretty comprehensive portfolio of china. in that regard, i would like to

visit with you on one or two things. one, as china continues to refer to a new type of great power relationship and i wonder what you think china means by that and china laying down a marker for saying hey, we have a greater say in our backyard so to speak and what should america's counter beat? should we even be using that phrase? what is your views on that? >> mr. chairman, as you said in your opening statement and are members of this committee in congress, most to think about this question, it is imperative that we be deeply involved in the asian pacific. the rebalancing mentioned by our president is referred to as critical because the united states and chinese in the

relationship is so valid to solving problems not just in china and america, but worldwide. china talks about a new relationship. it is somewhat helpful to talk about the relationships among to look forward to find something new and something fresh like the chinese new year, and a new year. china's interpretation of the new relationship as i understand it, as it says one in which i think we should be very weary of. as i understand china's interpretation of the relationship and focus, it is frankly one that suggests china take care of its own issues in china, whether it's the human rights issues or taiwan, south

china sea. as the version where china takes care of its world. the rest of the country takes care of their parts of the world. that is not an approach could make sense to me. it's not an approach that makes sense to the president who is not talk specifically about this. the approach that makes sense is for the united states to urge a member -- a full member and participate fully in the united nations, rule of law, to resolve issues according to international rule principles and norms. that includes the united nations, north korea, united nations with beck to syria and iran. it means open skies, open seas to maintain the security in a world with the commute show

tonnage that crosses through the south china sea. it's extremely important they stay engaged in the world and helps work with china. it's very simple, positive, cooperative, constructive results. one grounded in reality. we stand up for principles. as we work and engage china. >> senator baucus, there's a couple of areas than on the economic front in the security front that i think critically important. i would like to get your commitment to the committee that once you're confirmed in beijing that you work towards these goals. one is the question of cybersecurity and fast, which of course has been part of the strategic dialogue between the administration and chinese

leadership. the other one is intellectual property. a 2013 american chamber of commerce survey and i was there this past august and talk to them about this for 72% of respondents at the time of ip are a force that was ineffective or totally in effect it. the u.s. international trade commission estimated u.s. intellectual property and firms they conducted business in china last of her $49 -- william dollars in sales, royalties and license fees in 2009 because of ip are violations. can you commit that upon your confirmation these are areas to work to improve at the chinese counterparts. >> thank you. i absolutely will. i've thought about this before, when i sat where you are now and

asked the committee, i've asked many questions along those lines of witnesses have administration why should do more to protect intellectual property. as a member of the administration, i have to do what we can to address property theft that includes not only trademarks and other traditional ip, but also cybertheft and industrial espionage, which obviously is becoming more rap them. i've heard figures even greater than the ones you mentioned. it's a huge problem and it's really an opportunity for the united states to keep reminding china that china has benefited so much by our open rules-based economy. china will benefit more in the future than china protects its

own intellectual property and follows more rules-based solutions to the economic and political problems. it's a huge issue if you have my commitment if confirmed. >> finally, i appreciate the reasoning by standing up for principles because i think in any relationship, one that is honest, straightforward to stand up for principles is important. while we obviously are fixated on the economic challenges and opportunities on the relationship to engage china in a rules-based system that ultimately observes international norms as to specie to be resolved, the question of human rights, the question of tibet, where you are a immediate two predecessors, ambassador sven and lock went to visit, i hope you will do the same when

you have the opportunity. .. i know we talked just a little bit in our office about some of the security situations. under you're very aware that china has recently named an air defense identification zone that overlaps what is commonly known as japanese territory. under article five of our security in agreement with japan

, we would come to of their aid if certain provocations' occurred there. i am just wondering -- and now you have a lot of briefings with the administration in preparation for this. endo it's an area that has been outside chair was speaking of the great trade issues and other kinds of things you have pursued, but what is your sense of what china intends by taking these steps that they have recently taken? >> sir, i think the best approach is if i can't reduce tensions in the east china sea. it is unfortunate that the united states has not ready nest or confirm that action it is important for the nest is to let china know that to discourage other potential actions.

having said that, it is a delicate relationship between china and japan. it is, i take -- and have done this with the prime minister when i was recently in japan. counsel caution, kelso reduced tension, counsel. otherwise we run the risk of major dispute, major problems. if tensions are high it could be a miscalculation or easily a miscalculation. and if is -- of want to remind china that it is in their best interest to maintain a peaceful asian-pacific, including the east tennessee. if relations deteriorated significantly to the detriment of all countries involved, in this case poorly china, are

rarely japan, but also career and other nations in the asia-pacific. it is just in everyone's interest to reduce the tension. that is an effort by will undertake. >> on december the fifth in the south china sea chinese warships crossed right across the bows of the u.s. as cow pens. i know that chinese officials have been critical of our pitted to asia with many of the comments that they have made. again, what is your sense of what they were attempting to do with that episode? >> well -- >> what have you sitting here. it is hard to know exactly what china is attempting. i suspect that china was probing a little bit, pushing a little bit. i see how far they could go. it is very risky and dangerous. it is -- there was bridge to

bridge communication. someone in the vicinity. it raises enough of a point, the importance of engagement at all levels, in this case we're talking about military to military, our government is attempting to ramp up military to military exchanges with china the various levels. very elementary at this point. a lot further to go, but everything begins with the first steps somehow somewhere. this is, think, very, very important. i speak to admiral la clear, for example. they explain to me what they're trying to do. if confirmed i will do what i can to encourage the chinese to follow. it is important in many ways,

incurred transparency with the chinese and american transparency. to encourage more communication and military levels so that eventually higher levels, the u.s. commander, talk to the chinese commander pivots going on here. if they know each other in advance the communication channels are set up. will help. they can solve all problems. it's a very appropriate, one that engages china at all levels , not just military. it is also economic, political, human-rights. i believe as we all know, as people represent our states and work to get stuff done, the more we can talk to people, even if we just talking about the kids, just talking to people, getting to know them better, regular, more and more often, the more

likely it is that we will develop trusted and a chance to understand each other to minimize misunderstandings and minimize actions -- adverse actions that otherwise could take place. so i believe that we just keep working, keep working at it. we have no choice. keep working at it and we will make some headway here. >> and of assembly will bring up @booktv would hope, anyway, the issue relative to journalists in china. militant to journalists. we were there recently and met with the number of journalists that were concerned about what no has actually happened there. and i am sure you will address that at some .3 questions here on the dais. let me just -- one last question and i can make a brief statement. one of the areas, senator baucus, that you think are the best suited for improvements between us and china at present today. you know, when you get over

there in the very first days of being there you will begin to set an agenda. what do you take the areas of improvement this like? >> senator, i mentioned to broadly in my statement, the economic relations and the second is the overall geopolitical. i do think that economic, commercial efforts to help significantly. but the more we have an actual level playing field, the more american businesses are actually able to do business in china, nondiscriminatory, which whether it's a regulation or denying access for whatever reason, the more than americans are engaged, whether it's the private sector. the more that helps. because the goal here is to get

us talking to each other, understand each other and know each other. no, i don't -- people counselee, the opportunity and the privilege and if confirmed to come up with two or three main initiatives. and i am working on that right now. i don't want to at this point be presumptuous and see what they might be. i do not want to be, if confirmed, someone has talking points and meets all different folks in china chess rather, i want to be one to make a difference. >> actually, that led into just a comment that would like to make a file will be very brief. we had a good meeting in our office. and i think the administration has been long on making statements, you know, like a new era of power relations or a pit

it without much definition or a policy to go behind that. i don't think you are the type of person to take direction from some 25 year-old at the white house calling you and telling you what to do, which i know oftentimes happens in these positions. so but am very upbeat about this at the you have shown independence. i just would ask you to take full advantage of the fact that of the administration has a different policy toward china, to take a advantage of that, developed one that really allows us over this next decade to have the kind of relationships both pro and con with china to help shape their future, but also to build on the economic opportunities that our nation as and to strengthen the security issues that we both were going to have to deal with.

i think you for this, look forward to your service, look forward to your continued independence in this position when delacorte to seeing you on the ground. thank you. >> thank you. if i might, thank you. i read your april statement focusing on security. an area which i deeply appreciate. follow-up with the points you made a misstatement. but second, i am part of the team here working for the president. and this administration, and i will do everything i can to help implement the administration policy. >> you can help the most by showing strength as an ambassador and developing that policy, which i hope you will the. >> debut, mr. chairman, senator, thank you for your extraordinary public service in your willingness to continue. as investor in china.

this truly is a family commitment. for your willingness to continue to serve our country, this is a critically important position, ambassador to china. you have already heard mission bummer to colies the issues. our relationship with china is complex and there are a lot of important matters. as the chair of the subcommittee on east asian and pacific was in china last year and get a chance to meet with many of the government officials. i agree with you. fm that the meeting with the students, perhaps being some of the most alive in the discussions that led. they had already met with u.s. students over there. i think that having a great impact on the better understanding between our two countries. and clearly the economic issues are very, very important. i could not agree more with your statement about dealing with

intellectual property in the chairman's comments about intellectual property in the amount of the fed goes on in this country. chinese have confidence in its own people, it's a creativity. the currency manipulation is a matter that has to be dealt with i concur in that. the security issues are critically important. maritime security and china's unilateral declaration was extremely unhelpful. it will get to some of these other issues, but i want to bring up the matter of human rights. the chairman mentioned it. your statements are what i would hope to have heard. thank you for that. my concern is, will good governance and human rights be always on the table in our discussions with china? this is a country in transition. they've made a lot a progress. recently decided to see if a qb carried out to eliminate the re-education, labor presents. i hope that's the case. that's a step in the right

direction. he mentioned the tibetan buddhists, the discrimination against minorities goes to any minority, in the minority in that country from the point of view of trying to practice religion. you can't do it. that will let you. so many of the chinese people are held back because of where they're bored, not really having any opportunity for advancement. journalists absolutely being denied. the u.s. embassy website is even compromised so i just really want to underscore the importance of the statement made that is representing not just u.s. values, but international values of good governance so that american companies that want to compete and work in china can get a fair deal and not have to worry about whether there is an implied problem

dealing with the local government official but they're not allowed to participate in the put them in a disadvantage to be so can you give us that assurance that could government's human-rights will always be on the agenda of your discussion as our ambassador. >> senator, you have that assurance. it is extremely important to me. i am very proud. i was in china. and that within president in the race with him and asked him to release the dissident and tibet. he doesn't know what i'm talking about basically, but i went to tibet and raised the same point there. sure enough within about two or three weeks this person was released. and i do not know what i have to do with the. but i raised the point strongly a couple three times because i thought it was so important.

i was very hard with the results human-rights, protection of human rights is the bedrock, the underpinning. we have some blemishes in our country, the wheel of a leader in world rights and human rights people look to america, look to america to lead of so many issues, including protection of human rights, religious freedoms, freedom of the press. it is all rights that have been enumerated. most progress brings. the answer is yes. your help my commitment. >> ninety-four the strong statement. want to mention one other area where you live a special interest in dealing. that is reading the erin china. when i was there the chairman's experience, i was there for three days.

there was not a cloud in the sky, but i cannot see the sun when we tried to deal with climate change in the past we've always been concerned as to whether china would also do its fair share. we have, the chinese attention. this is a problem they can't hide from. people see that china must do a much stronger job in reducing their carbon emissions. how do you see working with china to provide universal so that we can have responsible policies that deal with carbon emissions. >> we are making some headway. we have a lot more to do. recently vice president biden met with kessler to put together the climate change working group addressing several points. one is large automobiles.

the sec in this building efficiencies, different financing incentives. another was the smart card systems said. basically technologies that we can use the we can help provide an work with them to help achieve their objective. the point you make is obvious to air pollution. i have seen up to a million people died in china each year due to air pollution. >> i may point out, you are responsible for the safety of our personal letter there. after a brief that air to the breathing of devices on certain days. think it's critically important as for the safety of americans under in china but is obviously a universal issue. as ambassador you can make progress in that regard. >> no question. thank you. >> senator. >> thank you. congratulations. your appointment comes at a pretty exciting time and place

in terms of the issues that are going on with regard to china. the growth in the economy and insolence in the world is really an amazing development to watch from a historical perspective. by the way, i would just share as it did with you, i think the president said this, our policy is not to contain china. we see a growing economy that we can be trade partners with. a billion people we can sell a product and services to. we look hopefully to a china that uses its increased influence and military capabilities to be a part. just think about how much easier the issue of north korea and syria would be if china were engaged in a positive way, but there is also real challenges, some of which have been highlighted here today. in particular the chinese use the term the new model of a major contra relations. it seems the way they define it right now is number one, the

u.s. would basically begin to erode or abandon some of its regional commitments that it is made to places like japan and the philippines and taiwan and even south korea to some extent. the other is something you will use them often say. senator mccain was as this question. why is the u.s. always interfering in the internal affairs of other countries. when it comes to china that usually is the issue of human rights. there is a late ambassador breaking the real axis of evil. he argued the u.s. ambassadors in places like china should be freedom fighters and at u.s. embassies should be islands of freedom open to all those who share the values of freedom. you begin to it into that question. do you agree that the u.s. embassy should be an island of freedom and the one of your primary jobs will be demonstrating to china's peaceful advocates of reform and democracy that the united states

stands firmly with them? >> to your earlier point, i read your speech and correa. very perceptive. having made points which i would like to work on with you. and clearly the united states symbolically is an island of freedom. that is a question i am going to have to take back and work with the administration of. that in none of the illustrations policy precisely on that point. i will be determined to find it. the basic principle, stand up for human rights and freedoms generally in the world. but with respect to your specific question, let me take that. >> as you do take that issue back and think you will find broad consensus on this committee. i hope in the administration that our embassy should be viewed as an ally of those

within chinese society and are looking to express their fundamental right to speak out and to worship freely. on that point the chinese government is detained over 1,000 unregistered christians in the past year. close with a term a league-leading point to a private public worse activities. additionally unregistered, and this is amazing, and registered catholic clergy, and registered with them to remain in detention, some have even disappeared. would you be open if confirmed to attending a worship service in an unregistered catholic or protestant church within china? >> senator, i will do my very best to represent our country. constructively, seriously engage and listen in no way which i think is most effective.

i will take actions which i hope to accomplish that objective. with respect to where i go or do not go, that is a matter of judgment. it is what i am going to be thinking about very carefully, where i go in origin not go. the goal here is to be effective. our major goal as we discussed your today is the protection of human rights. is probably the bedrock fundamental. so much springs from that. and it's a goal that i will establish fully and is -- but i -- let me the answer that directly because i don't know the degree to which that makes sense of the sport. first of all, and not confirmed. the was not there. and this is frankly, not a point to be discussed with the a administration. i will take that back. >> and i am respectful of the

reality that were to have the upper in space you don't want to necessarily be constant conflict. of the other hand, there comes a point and i hope you keep this in mind, that effectiveness can that come at the expense of our fundamental rights, the fundamental rights of the people of that country, and in particular will we stand for as a nation. i would caution that again as you see the chinese attitude toward some of these issues, their attitude basically his mind your own business. if you want to have a good relationship with the cme to stop speaking out on these grotesque human rights violations. i hope it never becomes the policy of the united states to look the other way of these issues for the purpose of achieving a more friendly operating environment because that, i hope, is not the definition of this new model of major country relations. i think the chinese are willing to use their new-found economic and even military abilities to be a productive member of the

global community, committing themselves to things like freedom is navigation, respect for human rights, that would be an extraordinary development for mankind. if this newfound power is used to turn their neighbors and the tributary states and continued to impress people with their own country, we have a big problem in the major, major challenge. amelya need to go back into the administration, but hope this is not a matter of debate. i hope that it is clear that we want a good relationship with china, but not at the expense of the fundamental human rights that define us as a nation and the people. i think you're going in a very unique time where the freedom activists in that country are looking for an advocate and spokesperson that will stand with them strongly. they look to america to be dead. yet a unique historical opportunity to do that, in the hope is when you will embrace. thank you. >> i appreciate that very much. thank you.

>> senator. >> thank you, chairman. i want to thank the senator for your 35 years of remarkable service to this body and express my confidence they you could not have found a better nominee -- president obama could not have found a better nominee in the united states senate. yearlong work on the important and difficult trade issues that will dominate much of your service as ambassador, when the oprah's of -- is roughly confirms makes you a great representative of the united states in your grounding in our values and depreciation of the difficulties in the tension between advocating for human-rights and for our values while still addressing issues of concern to our home states and to our country's future. i think you are very well grounded in the challenges ahead we both come from meat producing states. a lot of beef. elena poultry. it is my hope that you will keep at the head of your agenda open access to the market of china. let me, if i could,. >> guest: intellectual

property issues and one regarding effort. there have been real changes recently in the chinese trade policy that are creating barriers to innovations in biotechnology, the american air cultural sector. if confirmed, i am hoping you can speak to how you would use your position as ambassador to work with usda and ust are to address the important issue of innovations and biotechnology and now we harmonize and sustaining good relationship with china. >> this has become a grave concern. i think the answer to some degree is to keep pushing, but especially with respect. it too often, countries which limit the products for political reasons, not based on science. i think the more we can point out what the sciences, the

attempt to introduce into china from your state is perfectly safe. it's fine. to keep pushing in keep talking, it's my experience frankly, the country's surplus of three and japan, just keep talking, keep pushing. over and over and over again. finally we're at the point where both japan and south korea take a lot more american. huge progress. more than there were about to under 15 years ago. i will push strongly whatever similar concerns. our second-largest arrow struck products as corn, and that cirque -- personal concerns. let me move to zero ways in which the chinese ever and his use the intel monopoly law and recent actions by their national development and reform commission to extract concessions from the american companies, even those that don't operate in china in terms of

making concessions. the standard there is any company, a u.s. company that files a patent infringement lawsuit against the chinese company will then be barred from their market and coerced to make concessions, whether it's in patent law or trade secrets or other areas. if you would speak briefly to the importance to attest to strengthening the intellectual property regime within china and continuing to make progress. >> earlier i explained helpless so strongly for the administration to do a better job. it's time to do something about it. i think frankly pushes strongly as i possibly can, but it's important for china to understand -- and a dummy to be

presumptuous, that the more china goes down the road of intel monopoly law of the more it will hurt its economy, the more it will hurt the living standards of people in its own kutcher. and china, like all nations, has a lot of issues that it has to deal with internally. environmental, pollution, but also economic issues with in china. the chinese people in the country of china long run will be a lot better off if they open up more transparency and the more the level the playing field it is extremely important to appoint a we make over and over again. we can compete. companies can compete. one a level playing field. >> last question will be about exactly that, a level playing field. africa, as you know cullet is a

continent of immense importance to the united states, china, in the world as the greatest store aisles of remaining there are reserves for the word. the recent discoveries of oil and gas and minerals over the east and west coast has sparked a real aggressive move by china to take a dominant position. in fact, they have eclipsed the united states as they're main trading partner for africa and the demint -- dramatic investments are often done in ways that are not on a level playing field. concessionary loans and relationships that don't follow the same trading rules that we do. frankly, to the extent we try an advance of values agenda in africa the promotes human rights and open society a commitment to democracy, we often find ourselves a real tension with the chinese and now they are pursuing there interest. it is my hope that as ambassador you will seek ways that we can partner with the chinese constructively and positively in some complex and countries like

south sudan and sudan where they could play a positive role. you will also hold up this vision of the fair trade a level playing field. if you would speak to your concerns about the chinese rule in that you think you might add to the fourth movement we need to see. >> with respect to africa you have a little bit to learn. they've seen the press reports. we'll do. the concerns which you just outlined. it is a real push for rules based on about you based investment. if china wants to invest in africa, that's what. is the chinese right. just as we should, but also that think that we americans, american businesses look for ways to invest more fully in aggressively in various african countries. i will keep your point very firmly in mind, senator.

go back and try to find a better answer. >> i am confident that you're rich and deep experience of long service here has equipped you better than anyone who could possibly be nominated, and only 40 years' service and they're grateful for you and your family and everything you've already given this country. >> thank you. >> mr. chairman, i would like to join the senator in thinking you for your past service and your willingness to serve in this capacity. i also appreciate the time estimate yesterday enjoy the conversation. as a business person i always seem to frame these issues, looking at the relationship with turner, to me seems like one long ongoing negotiations. one of the things are similar been negotiating in business was i would first like to understand the motivation of the person i'm negotiating with and then spend time on the front in figuring a

while we agree on before we get into disagreement. i want to structure my question along the framework. what from -- again, the city have been to china and number of times. he had met with a lot of leaders. what will you or i would you assess their motivating factors? what motivates chinese leaders? >> i think like most leaders in most countries that want to do well, provide for their people, but they are also -- people like their jobs. and what to do what they can to provide for their people but also undertake actions of the don't lose their jobs. my experience is basically yours , often to be honest from a talk to leaders worldwide it is

because i don't know them well. it's hard to get past the pleasantries, pass the talking points. it takes a lot of time to get past pleasantries and talking points. one does get past them only when one is able to spend quite a bit of time with the person. in this case and -- is fortunate enough to be confirmed surf a will do my best to figure which ones are the most effective, which once meant the most difference so that i can be most effective. it's going to be a gold mine. i agree with you, figure out what you agree on and put that aside. mark that as progress. it is progress. figure out what you don't get agreement. when you're talking, try to understand the other person's assumptions, the other person's

promise. asking questions, listening. the more you ask questions, positive questions, not adversarial questions and try to figure where they're coming from , the more likely it is you'll find insights and new ways to fight the. my approach to this job since i've been here in the united states senate has been to do my very best to work with senators on both sides of the out to get results. be pragmatic. and that would be my approach here, to adjust to the best that i can listening, being forthright. and the kind of get the likes to talk straight. this is what it is to be not be angry about it. this is just what it is, what we can do. listen and to convey the impression. >> i appreciate that.

i tend to agree and hope it's true that the motivating factor is improving the condition of the people of china. but let me ask the question, what do you think would motivate them to initiate the air defense identification so? how does that further that goal? >> senator, i am no real expert on china. it is my strong belief that chinese people are just as proud as we americans are proud. i think unfortunately the chinese leaders are taking in vintage of the pride to test america in the south china sea or the east tennessee. means we have got to stand up fair but firm fair to understand

, but firm, we will be taken advantage of. and that is important here for the united states in my judgment and we are fair but firm by a engaging in a constructive conversation. for example, with respect to the senators. cool. the same for the south china sea. countless potential air identification, air defense identification zones in the south china sea. it's not a good thing to do for a lot of reasons. the basic is our national security is number one to us, as their initial security is to them. but also our commercial, economic security is so important but just in the united states but china and other countries in the world.

traveling through the straits of the south china sea. it's vitally important that commerce continue so that countries can grow and prosper. so in answer to your question, i don't know. i can't really tell you the motivation. i can tell you that the folks -- the approach that we should take , and the only constructive engagement, talking in standing of as positive, constructive engagement granted in reality and make sure we understand both sides of that. it is constructive but also grounded in reality. that is, i think, the general rebalancing to the asia-pacific. but again, it's at all levels, not just military but economic and political. >> i would just like to hear your thoughts.

the latest figure is china owns or holds $1 trillion worth of u.s. government debt. what are your thoughts? from my standpoint the primary problem is that anybody who owns $1 trillion. can you just give me your thoughts in terms of the potential dangers of that? were positive aspects. >> well, my biggest concern frankly is that anyone holds so much of our debt. it's important we get our debt down actually, the percentage of u.s. debt that is held by china is pretty small, smaller than most people think. nevertheless is very important. the key here is to give our trade imbalance them so that china is not continuing to accumulate such currency reserves. that is the big point. >> thank you, thank you,

mr. chairman. >> senator. >> thank you, senator. one of the issues that affect my state and will affect a lot of the itea industry in america is the chinese government with their propensity to subsidize businesses that are supposed to be competing in the open market. as we all know, as soon as the government start subsidizing. the chip industry, particularly the prices have been volatile over the years because of different governments, subsidies with their own industries. and speaking no of micron technology which is one of my nose largest private employers. they have up and down success because of other government

interference with the free-market price for chips. you're probably aware that the chinese government is spending billions to prop up their semiconductor industry and indeed are finalizing a policy right now to provide additional government support for that. that is going to harm u.s. producers that are out there in the marketplace trying to do the right thing as far as producing semiconductors. what are your thoughts on that? what can you do about that as far as bringing back the chinese efforts in that regard. >> well, senator, it's a big problem. the united states government has been undertaking some action. we have seven actions before the world trade organization with respect to china, most revolving around the chinese government and subsidizing favored industries.

as sillies, for example. it was important that we follow up on those sections. the bilateral investment treaty is not finalized yet. china is engaging the united states and bringing to a bilateral investment treaty which recognizes the national treatment which helps. we spend a lot of time trying to get china to sign that. it agreed with it into the wto. as not yet fully signed on to the procurement agreement because the terms of wants to sign up with are inadequate or insufficient. is just keeping to chip away, keep working of the problem here and this bothers me as much as it does you. >> thank you. i appreciate your commitment because this is -- the size and

magnitude and economic power that they have is a real problem glad to your commitment to that. i would urge you to urge them in the strongest terms that they have got to compete fairly in the marketplace or there will be serious problems. let me turn to another product that is close to my state into your home state. we have been working hard to try to get the chinese to except the u.s. beef. i am very concerned about the difficulties in the east and south china sea that will cause problems with these negotiations and you touched on that, but i wonder if you could comment just a little bit about your thoughts as far as yet people and thus trying to get the chinese to open their markets. >> you have my commitment,

senator. i have worked very hard. the sun to turn my attention to china. they don't take much american beef right now. potential disturbances in the east tennessee and south china sea are extremely concerned. however, i do believe that with a very strong and measured statesmanlike discussions with china we can minimize the potential adverse developments in those parts of the oceans. but you have my commitment to work on beef. >> thank you so much. i appreciate that. >> senator mccain. >> thank you, mr. chairman. i congratulate you and look forward to the arrival of the beijing airport. >> if confirmed the will be with warm greetings.

>> i look forward to that. and sure the chairman will appreciate that. obviously we are supportive of the nomination. i must say, a little concerned that some of your answers. it is not that the chinese are proud, as we are. is not that the chinese want to keep their job. it is not that we can work things out. it is that they are proud people. is not that they are wanting to keep their job. the chinese leaders have a sense of history that they believe that the last 200 years was an aberration and that china has to be the leader and the dominant force in asia. did you have to appreciate that if you're going to do with them. the fact is that the south china

sea has implications which could lead to another guns of august. and their aggressive behavior, whether it be an near collision with the united states ship or whether imposition or whether it be many of the other actions they've taken our part of a pattern of their ambition to dominate that part of the world. as a just one guy you go see in singapore. a suggest that he will give you the perspective of china and their ambitions and behavior and what you can expect from them. up till you what he will tell you. he will tell you that the chinese will say, well, we will take the western pacific and you can have the eastern pacific. the construction and acquisition of an aircraft carrier is a statement of a desire to be able

to project power. vogel that china is planning in asia today should be of great concern to all those. and not to mention the fact that they have continued to repress and a press and to practice human rights violations on a regular basis in tibet and the tensions between china and india on the china india border continue to be ratcheted up. the more penetrations of china across the border between china and india a real. so we have to understand that this is not a matter of they are proud as we are proud. this is not a matter of the will to keep their job. this is a matter of rising threat would challenge to peace and security in asia. because of the profound belief on the chinese leaders that

china must and will regain the dominant role that they have for couple of thousand years in asia . unless you understand that you're going to have trouble dealing with the. you're going to have -- well, you love trouble dealing with them effectively. that does not mean we preach confrontation. that does not mean that we believe that a clash is inevitable with china in asia. but the best way to have that be prevented is a gross alliance with their friends in japan, china, and the countries in the region that are now united because of the threat that china poses to them but they're aggressive behavior. when the united states of america ran to b-52s over the area, i thought that was great

what if the koreans want the same thing? we are seeing a time of rising tensions in asia. unless you understand chinese ambitions and charities pick perspective in view of history and recognize that they are continuous human rights abusers on a daily basis, then i think you will have difficulty being an effective representative of the united states of america in this very important job. you may disagree or agree with my comments, but i don't base my comments to you on john mccain's opinion. at base it on the opinion of every expert on asia that i know of in china, and that is that there is a growing tension, a growing threat of another guns of august, and there is a need

for us to not only make the chinese understand that there are boundaries, but also to work more closely with the other nations in the region, whether it be vietnam with the philippines or indonesia for other countries that the chinese because of their behavior had united in away the likes of which i am never seen or anticipated. would be glad to your response. >> i don't disagree with you. you've made very important points which i do agree with. i applauded the b-52s flying over that. it was very important. it was the right thing to do. them that twice. he's a very, very important man. no question. >> by the way, check in with kissinger. >> these are my list.

we are scheduled to meet very soon actually. your point is basically i think accurate. help for the best assume the worst. it's just important for us to of maintain our alliances and from them up with the countries you mentioned. half of that the overarching goal year is for us as a country , i think, to engage china with eyes wide open, to try to find common ground. we talked about the military to military exchanges. there are things we can do to help minimize potential confrontation in the south china sea. i am a realist. believe me. i understand the version of chinese history which you just espoused has a larger interest to it. but as we work with china, as i

said earlier several times, it will be grounded in reality. he does states of america, but their relationship with china where we can make some headway. and i do believe that how we manage this relationship will very must determine the living standards of americans and chinese and other people of the world. we have to get this relationship right. if you work with china will we stand tall, protect our rights will maintain their friendships of alliances and keep a naval fleets strong over there so that we can protect the interest. but a way that for us is not confrontational. we just have to work together the best we can standing in for our rights. >> senator. >> thank you, mr. chairman, congratulations to you, your family, congratulations. you had a chance to talk a

little bit about trade issues and concerns. a number of us of as the question regarding specifically china's trade practices. as i discussed in this committee before, soda ash continues to face significant trade barriers. the united states is the most competitive supplier of soda ash in the world due to the abundance of this country green river basin in wyoming, the world's largest known deposits. a component of glass, detergents, soaps, and chemicals . in may of 2007 you specifically hosted a meeting with members of the finance committee with the chinese vice premier a time. at that time by friend and predecessor was undergoing treatment for leukemia. he was unable to attend the meeting with you as a member of the finance committee. but on his behalf he specifically had delivered a letter written both english and mandarin from him to the vice premier that asked china to

eliminate there value added tax rebate on soda ash exports. we are grateful for your assistance. in july of 2007 china actually eliminated the 13% value added tax rebate of soda ash exports. very welcome news in this country. unfortunately on april 1st of 2009, 2 years later jen the reinstituted a 9% value-added tax rebate for soda ash exports. i would ask if confirmed to serve as ambassador to china if you were to highlight and eliminate market distorting subsidies like the value added tax rebate on soda ash exports that i believe harms u.s. workers and producers. >> you bet. unremembered -- i remember that exchange. for a very impressive to cut and of sorry to tell you the rebate was reimposed and will do my

best to get it turned around again. >> you also raised the issue of beef. and of the senator talk to bit about it. the u.s. producers take great pride in providing healthy and safe products. u.s. exported five and a half billion dollars in beef sales across the glow this past year. i am concerned about the u.s. beef industry, as a new york continuing to face what is an unscientific trade barrier with china. in 2003 china banned all u.s. beef exports after the discovery of bse positive cal in the state of washington. prior to 2003 the net estes was china's largest beef supplier. china's continued ban on u.s. beef imports has allowed australia to take our place as a leading foreign beef supplier to china by value. in 2011 uni both signed a letter along with 36 senators to the secretary of agriculture and to the u.s. trade representative on

the need to take steps to eliminate these unscientific trade barriers to u.s. beef exports. recently there have been articles indicating that china may ease restrictions on imports of u.s. beef, but we don't have details or tie line. i believe this issue needs to be raised at the highest levels with chinese officials. i would ask you what immediate action. would you work with u.s. trade representative and secretary of state to address this issue? >> senator, i care a lot about beef. >> and the do. >> who will make some headway. >> of curious, senator, do you have any conversations with the governor of montana prior to your nomination about the appointment of a replacement to the senate? >> i have not. >> any conversations with your former chief of staff, jim massena prior to your nomination about your success? >> i have not. >> thank you, senator. thank you, mr. chairman. >> thank you.

>> senator, i think you have a full exposition of the issues that you will be facing. i think you have acquitted yourself extraordinarily well which is no surprise to those of it is the intention of the chair told a business meeting next tuesday that will depend upon questions for the record being answered. the record will remain open until noon tomorrow. i would urge you, if you do receive questions for the record , to answer them as expeditiously as possible so that we can proceed. >> thank you. if i might, mr. chairman, if i am fortunate enough to be confirmed a man was said in my opening remarks. want to work with you and the committee on issues that are important to the committee and to keep the dialogue in conversation going. >> we appreciate that commitment. with that you are excused.

>> "usa today" reports the for relations committee could vote as early as tomorrow of the senators nomination to be ambassador to china. the full senate vote could come next week. >> i realize that tax reform entitlement reform will not be easy. politics will be hard for both sides. ..

[cheers and applause] let's agree right here, right now, to keep the peoples government open and pay our bills on time and ours uphold the full faith and credit of the united states of america. [applause]