suburban and rural as well as urban. i am sure gay and straight. they come from red states as well as blue states. in their corner are important sections of the u.s. labor movement. we and many others are supporters of the struggle. at this convention, we should agree to up the ante. i say let us decide here right now at this 30th convention of the communist party to make the struggle a strategic focus. can we agree to that? [applause] i thought you would agree.

which moves to challenge three, assisting labor as an overriding strategic task. the labor movement is an essential cornerstone of transformative politics. not everyone in the left is of this mind. some do not want no part of the process of change. still others include labor in a very long list of other political actors. this obviously is in our attitude. when organized, united, and equipped with a democratic vision. the working class in this sector possess transformative power. of course, this is not the case today. the membership is at its lowest level since world war ii. it is on the defensive and fractured.

the left and the labor, while is still small in size and the barriers to reconstitute are revitalized and the growing labor movement are formidable. now, if this were the entire story it would be a bummer. i would go on vacation and head to the pub by noon. but, it isn't. labor is breaking out of his defensive shell, opening its arms to millions of new members, and taking new initiatives. what should we do? we should do what sections of labor are doing -- embracing and doing something about this crisis. i am not pollyannaish. even the best of circumstances, the transformation of the labor movement will not be accomplished overnight. as i said, the first steps are being taken. labor is beginning to dance with a new beat and rhythm. labor's allies to the left should join the dance.

thus the question before the house, before this convention is are you ready to put on your dancing shoes and boogey to labor's beat? [applause] now, i expected you would break out in applause because i know how many of you like to dance. which takes me to challenge four -- the elections and struggle for political independence. the immediate challenge is the elections this fall. the outcome probably will not shift to the political terrain in a deep going way, but that doesn't take away from their importance.

whichever side wins will have to win over the next two years of the obama presidency and a leg up in the 2016 presidential race. if the republicans capture control of the senate while retaining control of the house, they will claim the american people have unambiguously rejected the president in his politics of redistributive economics, government overreach, and a supersized nanny state. on this ground, they will press the reactionary agenda to the max. they will block the president at every turn as well as ramp up the efforts to retry him as incompetent, a voice of freeloaders, and a weakling in the global theater. nothing new here except they will pursue this smear campaign with more vigor. this republican opposition goes beyond the normal give and take

-- and rancor of politics and heated partisanship. what it reveals is a barely concealed and deeply felt racial animus for a black president. it symbolizes the imminent demise of the old order in their eyes that is white, male, and well-to-do. as fixated as they are on obama, they are equally indifferent to the plight of tens of millions of struggling to survive.

thus, the stakes are tremendously high in this election. it goes without saying that we should lead this battle and no one should sit on the bench. it will not be a cakewalk, but weber said the road to freedom will be easy. whoever said it will be easy to elect the first african-american president -- none of us, i bet. life and struggle and a yes we can attitude combined to break new ground and make history. [applause] can we surprise the pundits one once again and give the republicans a good thrashing in november? are you with me? [applause] we got the right spirit, but we have to combine this spirit with other things if we are to win in november. first, talking points. to convince people that their vote counts and the right wing could be defeated this fall.

and two, a massive voter registration, protect the vote campaign beginning now. [applause] if this is done, and i think it can be, lots of talking heads are predicting a republican victory will have to eat their words. some on the left and progressive movements minimize the importance of this election in part because they do not share our concern about the right danger. in part because they feel the democratic party is no great shakes, either. well, i am mindful of the fact the democratic party has a class anchorage. despite the broad range of people and the organizations that comprise it, not everyone has an equal seat at the table. i am also mindful that any

realistic strategy to defeat the right, thereby creating opportunities to move to higher ground necessarily includes the democratic party as part as a growing people's coalition. [applause] so, how do we square the circle? i am not sure if i can do it completely but here are some brief thoughts. first of all, an independent labor-based party able to compete on a national level with the two main parties of capitalism does not exist now nor is it on the horizon. while there is disaffection within the democratic party, nearly nobody is ready to say see you later. what they are ready to do is to fight with a party leaders in wall street over policy and political direction. so, if a third party is not on the agenda for now, what does

the left do in the meantime? hope the democratic party will do what's right? not at all. two interrelated tasks come to mind. one, it is to continue to build the broadest, deepest grass-roots coalition, including the dems against the right. the other is to give new imagination and urgency to expanding and deepening the extreme of political independence inside and outside the democratic party that presses the progressive agenda. [applause] now, will there be tensions? of course. how could there not be? that is the nature of coalition. we will learn during the course how to unravel and move this whole thing forward. that takes me to challenge 5 -- climate change and planetary sustainability. of piling up of carbon and other

greenhouse gases in our atmosphere has reached a point that james hansen, one of the world's most foremost climate scientists, calls it a planetary emergency. what makes matters worse is that time is becoming our enemy. our window to act is closing. never before has such a challenge confronted the human species. yet, we sit on our hands. can't say the same thing about the fossil fuel industry. most of the republican party, the right wing, well-funded think tanks, and the rightly despised koch brothers. can i hear a boo? [audience booing] this motley gang he is making the rounds.

-- is making the rounds. they are denying the science of climate change and resisting the smallest mission that might cut down on carbon emissions. while this crisis is planetary in scope, the worst consequences will weigh most heavily on the working class, the racially oppressed, the poor, especially in countries and peoples of the developing world. despite this impending calamity, the response of the left has not been commensurate with a new danger. if our party in particular were going to be graded on our performance, my guess is we would get a "d." the only reason we wouldn't receive an "f" is due to the outstanding coverage of climate change and the environment. we can and must do better. the clock is ticking. i am reminded of a quote from martin luther king in another context. i quote -- "we are now faced

with the fact that tomorrow is today. we are confronted with a fierce urgency of now. in this unfolding conundrum of life and history, there is such a thing as being too late. procrastination is still the thief of time." if king's eloquent words and scientific data do not move you to be a better steward of this fragile planet, the place we call earth, and make it personal -- that is what i do. think of my two daughters, stepdaughter and stepsons. i think about, violet and pearl,

my little granddaughters who hopefully will live long into this century. in climate conditions that are friendly to humans and other life forms. whether that happens or not will rest on what we do in the next few years. here's the good news if i have made you too gloomy -- a movement is being born. it includes young people in the trade union movement, too. although, they are understanding the concern of working people and not fearing the absolutely necessary transition to a fossil fuel-free economy. we should join this movement heart and soul. we should bring our energy, including our socialist perspective to it. in the fall, mass globalizations are scheduled at the united nations to demand action from

the world leaders and governments to mitigate climate change. can we agree that we will join as well as mobilize friends and neighbors for this action? what do you think? [applause] a month or two ago, i signed up as did others in our leadership to commit civil disobedience if necessary to stop the keystone pipeline. [applause] how many of you will make that pledge today? new beginnings require a first step and i think we are taking one bringing me to challenge number six -- new racist order.

a new antiracist movement resisting that order. this dialectic makes the struggle against racism and equality more difficult and more promising. here is why. on the one hand, notable victories led by people of color in the first place, have been registered over the past few decades. perhaps no more than the stunning election of president obama in 2000 eight and 2012. furthermore racial attitudes and sections of the white community have changed for the better. a particular significance of sections of labor and other social movements come engaged in organized anti-racist uncle and take steps to make their leadership reflective of their membership. something they didn't do years ago.

can anyone who grew up in the 1960's, and there are a bunch of us here, imagine george meany stumping the country next to why workers to vote for an african-american presidential candidate? i don't think so. young people like to embrace some of the old racists and stereotypes of older generations. this is one side of the dialectic around which conform even broader and deeper multi-reach unity and antiracist understandings. furthermore, attitudes have changed. can anyone who grew up in the former aflatch in

cio it george meany stumping the asking white workers to vote for an african-american presidential candidate. i do not inc. so. young people like to embrace some of the old racists and stereotypes of older generations. this is one side of the dialectic around which conform even broader and deeper multi-reach unity and antiracist understandings. on the other side of the dialectic, political realities which if taken shape for the past 30 years are the given rise to a new racist order making racist exploitation, oppression, discrimination much more durable.

and legitimizing this new racist order isn't ideological structure that draws together old and new racists notions, including the notion that our nation is in a post-racial, post-civil rights colorblind era. dress that notion up as you will. it is nothing but hogwash. what do we do? it seems to me we expand in every way what we have been doing. adequate funding of schools, education, racial profiling, and the war on drugs. for an overhaul of the criminal justice system. and notesentation,

least for the defeat of the right in the coming elections. i would add you and me have to make the case more persuasively and vigorously that everyone who hopes that this country will move in a democratic direction, let alone a feature which people and nature trump corporate profits cannot afford to sit off the struggle. let's challenge this new racist order, control the country back two days long gone by, into a future we thought would never happen again. we have to argue that racism hurts. it crushes hopes, dreams, families. it tramples on dignity. it destroys lives. it denies jobs. it shortchanges education and housing. it profiles and sanctions violence. and, it kills. especially the young, sometimes in the street, sometimes in distant lands. sometimes in prison. the victims are people of color. -- racism also tempers and begets current.

it gives rise to a era making people of color into long and powerful voices for progressive and radical change generally. [applause] i would add this. this is a crucial point. after the end of the day, white people are morally and materially scarred and diminished in one way or another. while racist ideology is practiced, people of color in the first place, it corrodes real democracy for all, it makes us a society free of class, racial, and gender divisions a pipe dream. can we overcome? which leads to my challenge.

number seven. an end to violence in a war world of peace. we can barely turn in any direction without encountering violence of one kind or another. violence is a pervasive presence in the world. it kills innocent people and tears up the social fabric of our communities and societies. it numbs our sense of outrage to the point where we become excepting of this presence. violence is natural and internal. hate is not in humankind's dna. war is a social construct. there are alternatives. dr. king was right when he appealed for a trans-evaluation of values. for him, neither were passive appeals to goodwill, the categories of struggle. they rested on contesting the structures of exploitation and oppression.

the material grounds for violence. he appealed to anyone who would listen that the elimination of poverty, racism, and militarism was a gateway to a beloved community and of nonviolent world. were he alive today, i can't help but think that he would despair, but only for a moment. then my guess is he would tell us our mission can be nothing less than to join with millions of others here across our planet to insist on peace and in -- and violence.

violence. violence. but to be concrete, let me suggest what i think should be beyond our peace agenda. we should exist our government a u-turn in foreign policy. second, -- [applause] second, we should insist on the dismantlement of alliance and multi-instant nationals the project violence. third, we should insist not on a pivot to asia in the pacific but towards a common effort to resolve the resting issues of nuclear proliferation, poverty, inequality, and climate change. we should insist on a just settlement of the palestinian and israeli consulates that includes an independent, viable

on existing in peace with israel. we should insist on hands off venezuela. a normalization of relations with cuba and freedom for the cuban five, and an end--[applause] an end to the whole generalized sanctions regime. we should insist that big powers, existing and rising, respect the rights of small states. [applause] we should insist on into the war on terror and the surveillance state. terrorist actions against innocent people cannot be justified and should be stopped. but the war on terror isn't the way to do it. it becomes easily the rationale for oil, aggression abroad, and cutting down on democratic rights and neglect of human needs at home. the scourge of terrorist actions can only be counted by the collective effort of the world community.

eight, we should insist on a piece of budget. not a war budget. and a peace economy, not a militarized one. the judicial system should be overhauled, and justice should be not punitive but redemptive and restorative. ten, we should insist on an end to capital punishment imposition of stricter gun control laws and the formation of empowered civilian review boards in every city. we should insist on expansion of health care clinics and schools to provide humane and urgent treatment to young and old with mental problems, and we should insist on the reconstruction plan of massive scale on a massive scale for the purpose of restoring and sustaining communities and cities, rural communities, and reservations of native peoples.

thirteen, and finally, we should insist on a just and humane immigration system. [applause] if we want to fight a war, we should once again declare a war on poverty. joblessness, underfunded schools, now nutrition, and the social ills that make life difficult for millions. nor should we show any tolerance toward racism, male supremacy, xenophobia, or homophobia. all which could turn into acts of violence. we know that too well. lenin once wrote, the cessation of violence, the cessation of pillaging and violence, such as -- is our ideal. [applause] i would modify that. the end of violence is our

ideal. it must become our passion. we should not be a goal, but encoded into our emotional and political dna, into everything that we say and do, into the images and slogans that we create. if peace is to have a chance, we have to embrace and convince others to do the same. finally, building the communist party. i'm sure everyone would agree that taking care of the future troubles of the present include the building of the party in size, capacity, and influence. building a transformative party. what is to be done? what will it take? i am going to abbreviate my remarks in the interest of time, and not exhausting your patience. i will mention what stands out in my mind. if our party is going to build a transformative party, including a couple of things that

generated some lively discussion in our preconvention. first of all, take confidence that the audience for our ideas and our party is growing under the impact of changing objectives and subjective conditions. there is reason to think that this is the case. both in size, capacity, and influence, we are in a better place now than we were four years ago when we gathered. we are growing not by huge leaps and bounds but incrementally. incremental can add up. also, to build a transformative party we may take systematic attention to building the party, it can be the work of one or two comrades.

it has to be the work of the entire collective. also, to build the transformative party, we have to address ways to further deepen and extend a pool of younger comrades.i think we are a littlo thatof political death at level. so we have to change that. it will also take more active and vibrant clubs, the ground floor of the transformative party. impossibleif not without a much larger organizational presence in the -- at the local level. powered depends on local people, party power is a dense network of clubs across the country. in manys will come different sizes and shapes. some will be statewide. others citywide. be inothers we hope will

a workplace. building a transformative party will also take a more robust utilization of social media and specialty people's world. we have made headway in this not enough. we still have a long ways to go. it will also take a special approach to holding the party among trade unionists, people color, women and unionist. also take a range of forms to attract youth to the circle. systematicdo more work to replace the party in the infancy. it will take a more flood -- full-blooded and modern indication of programs that will take new members and old members alike. another requirement of a transformative party is a deeper organizing culture.

the notion and practice of organizing and influencing the thinking and actions of others. yes, we are part of a mech's. we take part and mass organizations, activities and movements. we fight the good fight but into many cases we are only participants, not movers and shakers. we are not the people who make things happen and change the way people think. also, building a transformative party will take a more compelling vision of socialism. a view of socialism that is modern and shaped by our national experiences, realities, traditions, sensibility and challenges. our rearview mere to construct

the vision of socialism usa will not fill the bill. it will not meet the challenges of the new century including the massive ecological challenge and the dp earning for real democracy. socialism cannot simply speak in the language of structures, relations, planning, growth rates and progeria -- material provision of goods. that won't do it. it must possess a vision or tell a story that expands the boundaries of human inequality. the sense ofle in transforming practice of creating a new society. accents of full free and many sided development of the individual and paints and many colored collective living and work. socialism beshould

reduced to working-class power either. power and the application of power should be supported native -- subordinated to vision and values. it has to be combined with justice and implemented -- embedded and accountable democratic policy, culture and institution. be the power of any one party. it's the 20th century taught us anything, it should have taught us that. in short, our vision of socialism should give new vigor, if not recover, the democratic emancipatory humanistic essence of marxist socialism. building a transformative party

requires we understand our leadership role is an issue from self declarations or what we did yesterday. final, it pivots in the analysis for how well we distinguish ourselves at the level of ideas and practice it today and tomorrow struggle. we would be much better served if we situate ourselves as an equal a dynamic part of a larger send aggressive progressive movement. uniquemaking a vital and political and practical contribution to the media and longer-range struggles. finally, building a transformative party will take a party that is guided by marxism. while we give great pride of place to this, we embrace also

hope body of marxist thinking as well as the nations radical traditions. we need to take more seriously linens observation. we do not regard marxist theory andomething completed invaluable. on the contrary, we are convinced that it has only laid thefoundation stone of science with sosa list must develop and all directions they wish to keep pace with life". >> i understand we have to your accent the creative and ongoing development of marxism. it is not a close and completed that needsone

constant attention and elaboration. our task is not to reduce theory and politics to cut and dry answers too simplistic and formulas but just the opposite. our task is to breathe movement, , contradictions and even contingency into our theory and politics. i sometimes think when it comes to cerium politics our job is to complicate our own and other people's understanding of class, class struggle, democratic struggle. the process of social change, racism and antiracism, imperialism and economy and so on. our theoretical and analytical work i would strongly argue is not what it should be. it falls far short of what is evolve into aelp major political player in politics into our country. being in the fight is an

absolutely necessary condition if we are a qualitatively gender ramp up our role. but it is not enough. and never will be. a modern militant mass, mature communist party has to distinguish itself at the level of ideas, as well as the level of practice. of one depends upon the quality of the other. ending, finally you're enormous challenges are all around us. so we enormous one could easily wallow in despair, but i know you won't do that. because communists here and around the world don't give up

in the face of momentous challenges. it is not our style. it is not our heritage, it is not our dna. not in the style heritage or the dna of the american people. may have conditions that require to back up for a moment but we never backed down. it is not our default position. fighting harder and smarter is. i do not doubt for a moment that we will do both in the years ahead. as this journey that began 95 years ago takes another step down freedom road and, let us resolve in this hall at this convention on this day and in this great city to step up the pace of our march. our lakes may be tired, but our

spirit is strong. determination is unshakable. our mission is just an admission of free people living in harmony ish each other and nature ever more urgent. and while we cannot exactly say with -- when socialism will arrive on the journey, we remain as we march deeper into the new century, confident that one day it will, and on that day, the bells will ring, the people will rejoice, and new freedom will grace our land, transforming our nation into a more perfect union. [applause] and on that day, on the day we will remember the songs would, paul, peter and odetta.

we will hear the echoes of dr. king's word on the washington mall on august 1963. we will recall the memory marching from delano to sacramento. we will shed a tear or two for the trail of tears, slavery, unrelenting exploitation and the other crimes of a now vanquished capitalism. and we will feel a new kinship, a renewed kinship with all the freedom fighters who walked down freedom highway and whose footsteps remains for ever etched in the sands of time. we will on that day, sing the prophetic words of maya , you may write me down in history with your bitter twisted lies.

you may trod me in the very dirt, but still by desk i will rise. who will win? who will overcome ? thank you, thank you. [applause]

>> on the next " washington talks" edward klein about his book, the clinton versus obama's. then we will look at what economists will look for in the june jobs report and ongoing negotiations over a trade agreement between the u.s. and european union, a deal that would create a market for 800 million people and joined by that editor of the natural -- to discuss thel new design and position on the 2016 presidential race. >> a couple of live events to tell you about today, the privacy and civil liberties -- civil liberties oversight board issues its report on electronic communications report. that is at 10:00 eastern.

forwashington institute near east policy looks at the situation in iraq from the perspective of the kurdish regional government. >> my first reaction was surprise it has i had worked for mr. to work -- stewart. i coach the clippers in 2000. he invited me to his daughter's wedding. i had no idea exactly what was going on. know what he was complaining about so i was confused not knowing exactly which set of facts mr. sterling stood behind. words came out, it was so obvious and shocking and disgusting. but the surprise of it to find

that type of sentiment in who relies on black americans for so much of his success and public or file was amazing. i cannot believe someone could have that much bigotry inside and think it was ok. >> july 4, a look at racism in sports just after 11:00 eastern. later, exploring the red claimant with senior nasa officials. later, discussions on gun rights and the personal recovery of gabrielle giffords. now, to treasury secretary jack lew on the upcoming secretary meeting between the u.s. and china. this 45 minute event is hosted by the u.s. chamber of commerce in the u.s. china business camp -- u.s.-china business council.

>> good morning. i am vice president of the u.s. china business council. on behalf of the council's president and our over 200 15 member companies, i am pleased to welcome you to this morning's program with secretary treasury jack lew. the u.s. china business council has been representing american companies doing business with china for over 40 years. during that time the economic ties between our two nations has become stronger and are now at the center of the most important bilateral relationships united states will have the century. despite these ties, american companies doing business in china face. a challenges there. at the top of the list of the issues that are important to american companies, better market access to reach more of china's expanding economy and a

level playing field with chinese companies. government to government dialogue is a critical component to addressing those issues. andu.s. china strategic economic dialogue established by the obama administration six years ago has been an effective tool in advancing the economic and commercial agenda and helping make congress on the problem areas. we appreciate the leadership in managing relationships between the worlds largest economy. as an example of the value of strategic and economic dialogue, last year's dialogue made an important breakthrough when china agreed to use the u.s. approach to negotiations on a bilateral investment treaty. such a treaty would open up more sectors to american companies and provide equal treatment to them in china's market. the u.s. china business council believes the bilateral investment treaty can provide new momentum to you a u.s. china relations and china's own economic reform effort.

should be a high priority for both governments and pleased to see them making progress. we look forward to hearing from secretary lu on what his priorities will be for the u.s.-china economic discussions. the format will be a moderated conversation followed by a few questions. moderating the event for the economic indicator. at the conclusion, please remain in your seats and we will allow the secretary to leave the event. please join me in welcoming secretary lew. [applause] >> there are quite a few issues on the mobile landscape at the moment you are dealing with. we will of course start with the

issues we are facing. can you give us a sense of what has changed since the last gathering a year ago? >> let me start by thanking you and the u.s. china business council for hosting this event this morning. it is very important to us as we approach this to have a conversation at home and communicate what it is our objectives are and how we see it. is been a year full of a number of events that affect the u.s.-china relationship. economic side,e last year we had an important breakthrough in the agreement that china made to change its approach to the investment treaty. we have also seen rockier things. not a straight line that only goes to progress but we have to keep reminding each other how we can continue to make progress. i think one important thing is not withstanding other issues that, between our countries, it is in both of our interests to

maintain the economic strongions and keep a track as the two largest economies enter a responsibility into the global economy in their own economies. bei am optimistic we will able to make progress again this year. i do not believe you ever finished the job but keep rushing at it. if i look at the issues that have been the major issues we have engaged on over the past year, i have to say it is a mixed report. andhe opening of markets things like the shanghai free-trade zone, we did see an agreement in principle to go considered of presumptively close to presumptively open market but except that china proceeded to list anything that had any value to say it would be closed.

so it is not just a conceptual move to go to an open market, you actually have to have the open market. and services goods and american companies can invest. to the exchange rate, a very big issue from our perspective. since 2010 we have made progress inking on this issue inflation-adjusted terms. r&b has appreciated 14% since 2010. it still needs to appreciate more. it is undervalued. that is something that hurts chinese consumers. it hurts the purchasing power. termsing so important in of china's economy is to increase consumer demand. it is fundamentally not fair in terms of trading practices, which is why we press on it so hard. i think they have made moves in the right direction but widened the trading band and in recent

weeks have raised the target rate. we seem to take two steps forward and at least part of a step back and need to keep making progress getting to the market determined exchange rate. i think if we can continue to make progress on open markets and have the exchange rate moves , that will be very important to the u.s. economy, u.s. business ability to compete on a level playing field. if you look at china's core the issues i have just described are central to what they have adopted as their stated program. so that is why i am optimistic we will continue to make regress. >> if you fast-forward 10 days, what are the three or four specific outcomes you expect? >> i am annoyed reluctant a week before to say with outcomes will be. i think we are working on the areas described in the number of others. there are literally 60 issues we

are working on. our experience is a lot of progress is made in the past -- last week, 10 days. i apologize my team that will have to work over the light -- the july 4 weekend in preparation for the meetings. like you mentioned a big rig through last year. what elements do you expect to be included in that discussion this year? >> i think it is not realistic to think there will be a concluded -- that they will become looted -- be concluded and a couple of weeks. it is a very long process. i think on the bit in the shanghai free trade zone what we have encourage lay -- increasingly encouraged our chinese counterparts is you need to focus on focusing markets and demonstrate that. there is any move in that direction it becomes the in theo move forward

details of the negotiation. i think it has been a slow process. i think it started out with almost everything being put on the closed list. now as things are taken off the closed list -- with had a list come out yesterday that we have not fully digested but on first glance does not appear to be an area of major interest for u.s. market access. seems to be items that give you a number of things that are open but not a lot of business activity. on access ford u.s. general -- goods and services, and that is something we will continue on. always as we engage on economic issues with china in the background are the intellectual property issues. while there is enormous desire to invest in china, i think there is a concern, both that

u.s. companies and others have that if the international -- intellectual property rules are not followed that the investment becomes a short-term benefit and there is a loss of trade secrets and other things that are extraordinarily high value. what we have not seen is a sustained continual effort that makes it the rules of the road. wehink if you summarize what are describing, what we are looking for is to bring the u.s. china relationship in china's dismissed practice to a place where it meets the standards dot we expect when others business with us. >> there is a push and pull in each relationship. what does the gathering look like?

what is the final discussion like? notion is an economic dialogue is something that was formed by the obama administration. it began as an economic dialogue. both it created two tracks. so we meet alternately with the entire group in separating by track. i think the detail work is mostly done when we go off into meetings with the economic parts and the secretary of state and his team goes off to meetings with foreign policy and defense counterpart. i think both are important and obviously relate to each other. there is also back and forth between formal meetings and informal meetings. one of the important things about the rhythm is people get to know each other. there is relationships developed

between staff. not gives you the ability just to do business but then have an ongoing working relationship. at twoare looking countries as large and significant as the u.s. and china, the defining characteristics of the world economy coming out in many ways of our relationship it is very important. it is very important there be the ability to raise differences in a respectful way, to press on areas where you can make progress, and obviously a good thing to have actual deliverables and achieve minimal outcome. i do not think it is just the outcomes that are of value. i think it is the ability to do business through the year. market access is a concern of just him out everyone -- just

about everyone in the room. one of the concerns is equal treatment. enough to rest on this front? what are you looking to do this time? >> the market access issues are many. can you own a piece of chinese therey or foreign economy is a threshold level. there is a question of how you do business. then there is getting through the many approvals in the chinese process. i cannot say it is a one-way issue. we have certain your craddick issues that i spend some time explaining they are not aimed at china. they say little bit about to us. in reality, in reality, and an economy that has so many state and governmentes to rules designed to close the not in that we are

equivalent positions. our system is basically opened and their system started out basically closed. position wheree the u.s. and other foreign companies can do business, get the approvals they need, that is essential to what the economy is about. rather technical rather quickly. the principle is really a fundamental one. >> the other issue is cyber security. there have been a number of issues regarding the chinese government and chinese officials. >> i think it is important that a cyber discussion has developed discussion.he we certainly hope that continuous. i think the issues of cyber security are extraordinarily important.

there is a fundamental difference that we do not view fors an acceptable practice governmental entities to ofticipate in the process securing trade secrets for the economic benefit of firms in their country. we have made that clear in a general way and rather specific way, and i do not think there is any question about the source of some difference between us. we need to engage on that and continue to engage on that and i believe there will be ongoing discussions. i think it will be importantly separate the issues out, that you not tie everything together. that is one of the advantages. you have a session where you will talk about issues like climate issues. an external he important issue were a world meets the copenhagen standard of it will be critical for china to make progress. whereina to have errors

parents are willing to let the children breathe, china will have to make progress. we have a serious discussion. an economic issue like access and level playing field. issues like climate change. then a set of strategic issues. cyber cuts across because of the core it is both security issue, strategic issue but if it becomes a means of acquiring intellectual property or trade secret, it becomes an economic issue. lex what is the consequence if there is not further progress on this in the near term? -- >> what is the consequence if there is not further progress on this in the near term? >> we have made their how unacceptable we believe it is for those practices to go on. difference between how we do business.

we just do not engage in activity like that and cannot condone it. >> is there anything specific you can do if you do not find engagement on all of this? >> i will not comment on all of the remedies because they are not all in my hand. the government has taken action recently that shows we take this very seriously. how quickly do you think china should be moving to rein in credit in dealing with the issue right now? >> fundamentally what china needs to do is have market determined interest rates, market determined allocation of capital and some of the comesres of the economy from an artificial way that resources have been allocated. i think there has been a lot of estateon on the real pressure and the concerns about excess supply and possibility of

a bubble. think that china understands they have to manage this internally. they have a lot of tools to do that. it is something that looks like any kind of a global threat to financial stability. at othert looking financial systems. it is clearly something china has to focus on. i do believe china has the capacity to manage. talking earlier about currency issues. a few years ago it seemed like it was at the top of the agenda when you are engaging with the chinese. certainly one of the issues you discuss but not as high up. how is that concern change? thatw are you presenting in the context? >> i presented a threshold issue . it is fundamental to the trust.

not just a political issue. obviously a lot of political attention on the exchange rate, the exchangern rate is being used in a way that has an adverse impact on american businesses and american workers is something we have to raise whenever we engage. i understand a market determined exchange rate goes up and down. it is not unique directional and response to market forces, but when you see evidence of intervention and the evidence is you seelear when foreign reserves climbing even when trade balances are going down, it means there is intervention. the first thing you can do is have transparent policies where you indicate what interventions are, how you are doing it and

why you're doing it and the imf has protocol for that. we strongly encourage the chinese to do that. i think if there are concerns as they had earlier this year that the one made in -- one-way movement was creating a magnet wasthe carry trade and creating risk, that is lost in the a legitimate concern. i said so publicly at the time. for a month at half we saw the exchange rate drop and evidence of intervention during that time. that has to change. the past few weeks it has been changing. target rate the raised and have seen further appreciation. beyond thewe look day-to-day week we two-week movements of the exchange rate, there needs to be a confidence it is not being used this way. i think transparency would be a very important first step. >> there are dozens of issues that, in the gathering you will

have next week. where have you seen the most improvement from china over the past few years in the engagement and where have you seen the least? we go through the issues over and over again and you have to sometimes look to see where the progress is. i think the first stage of the -- discussion is excepting there is a challenge that needs to be addressed. i think if you look at the questions of market access, look having aestion of market determined interest rates and allocation of capital, the question of having a market determined exchange rate, when i look at the third quantum, i understand -- i see all of the concerns reflected in this. there has been a great deal of progress at a conceptual level to accept we have a common goal with us to move in the right direction.

the pace of the change. i am very understanding of the fact that it changes hard and large structural changes. but when i look at the challenges here it certainly that time is of the essence. you asked me about the housing situation. i think for the next few years i can be pretty comfortable that china has the resources to manage things like that, but if they look i've years down the road and 10 years down the road them if they do not get to a place where the reforms discussed now are being implemented in a serious way it becomes much more challenging to be as confident they will have the tools to deal with it. obviously that is important to china's economy. why do i care? it is important to the u.s. economy, the global economy. i think we have made a lot of

progress conceptually and now need to have the follow-through, understanding how hard that is. it is potentially disruptive. when you look at the current rate of growth in china, there has been discussion about how fast will china grow? they have to think the ability to maintain the short-term growth rate at a level that meets the needs they have in terms of job creation and the broader economy. if it becomes a reason to delay the implementation of reforms, i think it hurts the medium and long-term prospects in a serious way. have engaged with them. i think the advantage of the issues i am raising is i do not believe i am raising issues that they themselves have not raised as concerns about the economy. i believe the analysis we are bringing in terms of the broader .conomics in the market

>> there are number of concerns about the global landscape. over the past 24 hours, the situation about russia and ukraine has deteriorated. has the threshold and reached for further sanctions, and what would they look like? clear the goal is to russia to change its actions to stop supporting aparatists and to help reach diplomatic resolution. obviously every day there are developments. some going in the right direction, some going in the wrong direction. we have never said a specific line for what the target is. we have made it clear we are very prepared to take the next steps should we need to on sanctions. i believe europeans have made that clear as well. i do not think the goal here is to tighten sanctions. the goal is for russia to change

its action. we will continue to try to achieve that, and at the moment comes when we need to take additional steps, we are prepared to do so. we have done all the work you need to to be ready. the outcometo have of a negotiated resolution in ukraine where the ukrainian people control their destiny. >> are you at all concerned they have met and deferred on the discussions? >> i think the europeans have share our view that what russia has been doing is unacceptable and if they need to take additional action they will and have made clear they are ready to reconvene whenever they need to to take additional decisions. so i think it is a very fluid situation. there are discussions that go on each date. there has been no secret about what the goal here is. to be inis not

conflict but to get a resolution where russia steps back. i think that is what our goal is. that is what the european goal is and if we need to take additional steps, we will. i thinkt, because russia is aware the next that's could very much undermine the economic conditions in russia. they're barely and positive territory now. the combination of political instability and economic impact based on sanctions has taken a very modest growth rate and brought it close to zero. additional sanctions could easily put russia into a recession. that is not an easy decision for government to make. our expectation is that russia will like to avoid that. our hope and goal is that there would be a negotiated settlement but there should be no question about our resolve. if we need to take additional steps, we will. situation seems to

be deteriorating in the past few weeks. higherh of a concern are oil prices? what effect are they having right now? >> we have not yet seen supply disruptions. obviously there is fluctuation on manyrices based factors, including the situation but not exclusively the situation in iraq. we obviously keep a close eye on it. conversations with other oil producers on a regular basis , and i believe world energy markets will be able to deal with the situation as it goes forward. i do not think in the interest of any of the parties of iraq for there to be a severe disruption in supply, but there is sufficient capacity in the world right now to deal with whatever we need to deal with.

>> are you expecting anything from china on either of these fronts? the conversation will get there. we discuss the issues when i was there a few weeks ago tom and i am sure we will continue to. i think it is notable that china has tried to not get involved -russiay in the ukraine situation and have made clear that crossing the boundary in challenging the sovereignty of a country is not something they can embrace. think they are very aware as we gonctions regime forward. >> let's take questions first from the front of the room and then go back. you can bring a microphone right appear. -- we can bring a microphone right up here. please identify yourself.

i think the cameramen stew not want me to stand up. the question is, do you agree with widespread concern that the relationship is drifting toward rivalry? there has been the spirit lost in the past few months having too much negative talk and not enough good things talk? is there going to be a cyber the indictment of five officers? >> i think if you look at the u.s.-china relationship it covers a broad range of issues and one that in the spirit of sunni lands we have to be able to engage each other frankly and directly on issues that are challenging and work through those we make progress on issues where we see the common interest aligning more easily. i think one of the things about

this that is very valuable is it is a forum where we can do both. we can raise the issues that will be quite challenging, and we can also make progress on other issues where we can demonstrate that strength of relationship in areas like economic matters. very important for the united states and china to maintain the open discussions that we have, and obviously we are not shy about raising our differences and they are not shy about raising their differences, and i think it is a very useful engagement. to avoidt going talking about difficult subjects on either side i don't believe. >> next question right over here. you.thank secretary lou. i wanted to ask a question about an issue that is very right for

harvesting market access issue, the completion of the technology agreement. the good news is just about everyone is ready to close that thing up and get it across the finish line. the bad news is the chinese have insufficient sufficient level. just wondering if this will come up next week. it has been kind of a tough time for us because china has been dragging its feet even though it would likely be one of the biggest and fisheries. .ohn newcomb from iti >> it is an important issue, an issue i raised in china a few weeks ago and subsequently there have been negotiations going on between our trade representatives and their ministries with responsibility, particularly administrative commerce. i think it is an area where more work will go on even in the next week, and an important issue to

resolve. i must say at the most senior level i saw an interest in making progress on it and one of the reasons i continue to raise it with my counterparts on a regular basis and will be on the agenda when we meet in beijing. >> next question. >> going to the back here. >> peter cook with bloomberg television. i want to get back to the cyber issue and how the controversy is affecting, if it is affecting the conversations going forward. at any point has there been any effort of the united dates or china to consider putting the talks on hold to cousin the cyber hacking issue and indictments that played out? and if you do not see process -- progress, could reports be in trouble going forward? >> i see no interest other than ned.ng successful s

i think it is important that is in the mutual interests and the reason we are getting together next week in china. obviously our concern on the cyber issue is very deep. generalraised it in a level. the prosecution has raised it at a very specific level. it is an issue we will going to have to continue to deal with. , all think the engagement of the work has been going on and continues and i think you will see continued engagement. >> one question over here. >> yes. trade.u.s. i was wondering, there are a lot of things that have happened in the past year. you discussed that some issues

have gotten worse. u.s. companies have concerns about english china anti-monopoly law, and i was wondering if there are any things on the agenda this year that were not on the agenda last year? >> i would have to go back and look at the agendas to answer that. most of the issues did not get resolved in a way where you do not come back and revisit them. there is a complicated issue, follow through involved even when there is a commitment. i think there is a lot of similarity between the topics we talked about. if we continue to make progress in each area, that is the purpose of the engagement. to anot think you get agreement that is tied up in a bow that says we're done with major topics of interest and concern. the measure is, are we making progress in opening up markets. it is a huge market.

one does not go from total access to no access. so i think we have to take a nuanced view of what progress means. we certainly see value in making making progress each time we get together. lou.cretary lew.entioned-- secretary you mentioned you're frustrated with the slow pace of the economic reform agenda, but at the same time appreciate the scope and in viciousness i believe. can you describe how this affects the way you approach interactions or the way you planned to approach interactions with the chinese counterpart at these meetings. how you voice your frustration

do you express understanding that we know this will take some what i say in private and what i say in public tends to be very much the same thing. i think you can count on making the point. it is important to recognize that taking progress does not mean taking the entirety of everything and having instantaneously implemented. there are many moving pieces. many policies to be implemented. important progress be made in key areas and that get started quickly. i think they understand that is the concern. there is a bit of a difference of time in the way we approach the issues. i have heard from my chinese counterparts that the important thing is the direction you're heading in. if you are going in the right direction, even slowly, you will get to your destination.

if you're going to the wrong destination, you never get there. i have expressed from an american concerned having stated the goal, starts to become lesshing that is less and significant, that you have to be moving towards it. they have legitimate concerns about managing change in a way that does not cause unnecessary social and political upheaval. change cannot avoid the without looking five-10 years ahead to a very unattractive economic picture. the kind of case i make in public and the case i make in private. lex can we get a microphone right down the middle here? >> thank you. agency of china. how well does the u.s.

government respond to china's request for the national security review with the china investment in the u.s., because now the china investment in the u.s. is subjective to the review and can stem from china's investment in the u.s.? >> i think if you look at the facts, it actually does not support that. the fact is chinese investment in the united states is growing dramatically, much faster. theink if you look at applications that are made, the number of items approved, possibly outnumber the very few items that are not approved. if you look at the substance, the issues that arise are truly national security issues. is only national security issues that are the basis for objecting to chinese investment in the united states. our philosophy has been the same since the founding of the united states. we welcome foreign direct investment as one of the ways we

both the american economy and how it continues to grow. we welcome chinese and other foreign investment in the united states. there is a legitimate concern the transaction creates national security issues, that is the one exception. share ofery small transactions that get caught in that. i know it feels bigger than that to our counterparts. the numbers do not support that. any questions here or in the doug palmer with politico. i wanted to ask about an op-ed i read earlier this month. by adam pozen, president of peterson institute for international economics. he suggested the u.s. formally invite china to join the tpp negotiations. i do not think he was meaning

immediately but extend the invitation and make some sort of arrangement to provide server once the initial deal is complete, negotiations on bringing china in could commence i guess. anyway, will their plea -- will there be an announcement like that coming out? >> i think if you look at tpp, you have to go back to where we started in 2009. our goal in launching was to raise the quality of trade agreement and have high make its that would attractive for as many economies who were willing to live with a hand -- by the high standards to come in. we did not start with all of the major countries in the region. we started with the few willing to start at the very beginning. now we have a broad base of interest and engagement in the tpp negotiations. you know, i have been very

interested to watch as china's view has evolved. meant to be any kind of a divisive step between the united states and china. it was meant to be a new model of trade agreement to raise the bar and have high quality standards. any country willing to live by the high quality standards to come in because the goal is to have open and free trade. i do think we have to continue and complete the tpp, and that is what we're are doing in the negotiations. i have been interested in to see the view of it in china evolve from what does this mean in terms of a threat, to should we want to participate? i hope china can raise the standards to a level where the conversation could become serious. to closenal question us out. this is a relationship marked by

incremental progress. a number of companies -- country seem to be frustrated by the pace of process. discuss in what are your goals? >> most of the companies i read -- meet with recognize the value of incremental ryegrass because they see the enormous size of china and the size of the market. so if we make meaningful strides that's open a sector in china to investment or to the u.s. businesses being actively engaged, they will i think take advantage of that and grow the businesses organically. whererrower questions companies face of approval or disapproval or delays in the chinese system are much more transactional. questions like that on a regular basis and with some success. and i think companies that have

come to us with concerns have realized we are very much interested in helping at the macro policy level and more ofcifically, on matters individual concern. and i think one of the virtues of sned is it just not take race level.via radical it gets right down on the ground to the practical details in terms of implementing policies, points ofaising friction to be resolved. >> ok. thank you very much. [applause] >> the education commission of the states here's from undersecretary of education ted mitchell today. you can see that live at 12:15

eastern on our companion network, c-span2. ata few moments, look today's headlines, plus your calls live on 'wa "washington journal." washington institute for near east policy look at the situation in iraq from the perspective of the kurdish regional government at 12:30 eastern. in about 45 minutes, edward klein talks about his book, blood feud, the clintons versus the obama's. marilyn g wax will focus on geewax from- marily the npr focusing on the economic update. and we will be joined by the

editor of the national journal, richard just, to discuss the magazine's new design and recent addition on the 2016 presidential race. washington journal is next. . .