credit terms. >> ireland's bank guarantee ended last march, but the consequences will be felt for decades. >> ok, straightahead, china hits another global milestone. the head of the imf steps up the pressure. we will have the details after the break. >> the plan calls for short-term increase to the nation's debt

ceiling. the white house indicated that it would consider the six-week increase. it is not a complete deadlock as both sides have agreed to keep on talking. police in libya are still looking for answers after the prime minister was kidnapped and then released. ali zeidan was taken from his hotel room early from a -- by a militia group. he was unharmed. officials in panama city the weapons found aboard a ship three months ago or in good shape and recently used. the jets have full engines and full tanks of fuel. those are the top headlines. "biz asia america" continues

right now. >> welcome back. i am phillip yin. >> let's take a look at some of our other top headlines. china is the world's largest oil importer, passing the united states. the countries growing economy and strong auto sales. apple may be in trouble, especially when it comes to pc sales. apple fell 11% in the third quarter. apple is the only company in the top five pc makers whose shipments fell. cuba's government is allowed state-run tourism to do business with the private sector.

let's check back in with phillip yin at the imf. >> what a day it has been. this potential debt deal that everybody has been waiting for, well prices are higher, stocks are higher. there is a sense of guarded optimism. the imf has issued urgent warnings that this deal regarding the debt ceiling must get done to prevent another global crisis. tracy is back with me. you have been talking to delegates. >> both the imf issued stern warnings that the debt ceiling must be raised. the managing director said the imf does not take a political

position nor do they want to get involved. she says the imf's position is to make sure risks are in check. she is talking about a potential default. >> there would be very negative consequences. ok? the imf does not take the stand and does not make a recommendation as to how politically this matter can be resolved. this is not for the imf to say. we do not take a political view. we only look at the economic consequences of measures decided anywhere in the world. when it affects the largest economy in the world, we look at the immediate domestic consequences and we also have to look at what happens elsewhere

and we have to engage in a dialogue with our members to see how they can best prepare for that. that is the work that is underway. i hope we will look back and say , what a waste of time that was because it was unnecessary because it did not happen. we have to look at potential risks, however improbable they are likely to materialize. >> there you have imf managing director, cautiously optimistic. she is issuing a cautionary warning. >> i am trying to digest everything. a couple of days ago it looked like it was going to be the end of the world. this announcement came out midday. the markets were already rallying.

there was a sense of optimism. have you noticed a change in mood. >> this is the week where the international delegates and the finance ministers descend upon washington, d.c., to attend these world bank meetings. the issue of this looming debt ceiling debate is what has overtaken all of these meetings. >> good work, thank you very much. coming up next, we have so much more. we will be heading north of the u.s. border to canada and we will find out why the american dream is not why it used -- what it used to be and why some americans are living in canada.

>> welcome back. americans abroad are bracing themselves for more scrutiny. banks will soon face sanctions for refusing to report to the irs. the new rules are due to start next july and are prompting many to give up their u.s. citizenship for good. we have more from toronto. >> he formally became a canadian. >> it is the biggest threat.

>> new laws aimed at taxing foreign income and assets are causing americans to divorce their mother land. it is more than seven times the number for the whole of 2012. >> they are busy constantly. >> the u.s. has one of the most intrusive tax policies in the world. that will be strengthened by the tax compliance act. next year, banks will be forced to report american owned assets or face sanctions. >> other than wait until this new berlin wall is built to try to keep u.s. citizens in the country, i decided, it is better to get out before the wall is built.

>> divorcing america can be expensive as well. they must pay an exit tax. >> they continue to be liable for taxes. the fact that they renounce their citizenship does not save them from having to pay their taxes. >> they've been asked to declare their income, but the u.s. had no way to check for themselves without a court order. >> for more on the new tax law, we are joined from san francisco

by robert a wood, tax lawyer and managing partner. thank you so much for joining us, robert. let's get straight into this. this new law is going to start july 1 and will require all financial institutions to report directly to the irs. that is a very complex law. explain the requirements. >> it requires direct reporting. one of the surprising things as a tax lawyer is the world has embraced it. there was a time when it was passed by congress in 2010 when many people thought before it started to kick in that it would be repealed or modified. that has not happened.

the world has embraced it and a huge number of countries have signed on. there are two different reporting mechanisms. or his direct reporting from the banks to the irs. in other countries, there is an intermediary. in some countries, a foreign bank reports to its own foreign government, and that government reports to the irs. the same information gets transmitted, which is account holder information and that exposes americans. what's the world has embraced this, but americans living abroad always have to pay taxes. how is this different? >> that is a fair point. there was a requirement and has been for many decades that u.s. taxpayers pay tax on their worldwide income.

it does not necessarily mean they are being double taxed. if they are paying tax in canada or china or wherever, they are claiming a foreign tax credit on their u.s. tax return. the theory is they are not being double taxed. they must report on a u.s. return. a lot of people did not do it very well and there was not the level of compliance and scrutiny. >> is the u.s. the only country that does this? >> it leads directly into your

story that many people are choosing to give up citizenship rather than continue the reporting regime. >> what impact does it have on this date only have people renouncing their citizenship? >> it is a controversial subject and there are various groups and there are some americans abroad trying to get a residence based tax system more similar to britain. given the number of governmental problems we have at the moment, it is unlikely that it will happen anytime soon. you get along and you hopefully get by or you do something else. the do something else, for some people, is renouncing.

it is kind of an extreme measure. >> this is aimed at increasing revenues for tax evaders. this is affecting ordinary people as well. tell me about the complexities of the forms. >> they are quite simple by comparison to the american forms. i suppose a lot of this, as i know your viewers understand, sort of began -- the irs -- the

forms are complex. >> taxes are never fun to talk about, but we will have to leave it there. thank you so much. in a few minutes, we will have the latest on aly baba ipo. dying for growth, we will find out the human cost of rapid economic development.

>> time to check how asia's markets are doing. let's see how investors are

feeling. >> at friday's open, the hang seng has extended losses. markets are on a relief rally tracking a strong performance in the u.s.. south korea is over eight percent higher. so -- over a percent. so with -- chinese commerce giant alibaba has decided not to list in hong kong. they could not persuade hong kong regulators to allow the 28 partners to maintain control over the majority of the board. the listing would have perked up

hong kong's ipo market. bankers have been drooling over the ipo as the company could be valued at around $100 billion. the ceo told reuters that in three years, we hope to be the number one retail network in the world, larger than walmart. the outlook of china's economy remains upbeat. the imf managing director says china's debt problem is a serious concern, he also says the country has the tools to deal with it. that is the latest from hong kong. >> thank you so much. the opening of free trade zones in shanghai is challenging hong kong's stature as a gateway to china.

hong kong has long benefited from being the gateway to china. the proximity to the mainland make it attractive to foreign companies. that role is being challenged as free trade zones in shanghai open for business. the shanghai free trade zone is the one to keep an eye on, economists say. the government would like to see shanghai. >> it is too early to tell. over 600 u.s. firms expressed interest in doing business in hong kong.

>> it is about innovation. hong kong needs to keep innovating and reinventing itself. >> one of those is global professional network. they recently opened an office in hong kong as it considers the city and the mainland as fast- growing markets with a total of 3 million members so far. >> it will become a stronger competitor as the gateway into china. if hong kong manages this well, it should continue to be able to benefit from china's overall rise. >> it depends on beijing implements rules and policies. only then will investors see whether they are likely to be the game changer.

>> china's economy has been the envy of the world thanks to its rapid growth, but it has come as a high price. villages are popping up in some areas highlighting the human cost of economic progress. our correspondent has the report from a polluted village. >> a time of joy and family reunions. but she is without her husband this year. he was 67, killed by stomach cancer. >> the air is so bad here. his nose was always congested. he was in a lot of pain. i miss him every day. we used to farm and cook together. he would take care of everything . now i am here alone.

>> her husband was not the only one to die of cancer. dozens of her fellow villagers lost the battle and dozens more are suffering. her neighbor is fighting lymphatic cancer. >> i lost a lot of my hair on chemotherapy. one more and i will die, she says. she cannot afford the pain or the money. chemo is more than 2000 u.s. dollars, 70% paid by insurance. >> they must come up with 2000 u.s. dollars to cover her medication. it has already been three years since she was first diagnosed.

i need more money to keep me alive, she says. she also has pneumonia and other complications. >> it is home to many of china's cancer villages. cancer is an open secret for this neighborhood. the residence openly told us where to locate the patient's. officials may not be as open to discussing the issues. they receive money from factories to keep quiet. i am at a community well in the village. this is a water sample that was taken from this well. this is another sample taken from the river. they are coming from the same water source. you see stretches of houses along the river.

behind the houses, there is a factory. this water sample is considered -- on a scale of five, it ranks number five, so it is considered hazardous. the ngo was advising the local villages to stop using it. it is not even suitable for gardening. laundry, drinking, cooking and showers. they are telling people not to use it. the villagers tell me they have no choice. some of the wells are drying up. it is the only well they could actually get water from. this village has no drinking water system.

over the years, the local ngo and international organizations like greenpeace have been monitoring the levels of contamination in air and soil as well. but nothing has been done. some of the villagers collected their own samples as well. they have been voicing their authorities, but they say nothing has been done. the first cancer villages were reported in 1998, but it was not until earlier this year that the central government openly recognized the cancer villages. the villagers tell me, they have

been so used to the idea of people dying from cancer and their high risk of having cancer, they will continue to breathe and breed. they will continue to get married and carry on the family name. it will continu to have kids spite the gh risk of cancer. >> ok, that is our show for tonight. thank you for watching. you can e-mail usnd y can alsoollow us onle. good night and goodbye. captioned by the national captioning institute --www.ncicap.org--