my colleague, nick lardy, has documented extensively how the role of the private sector grew enormously as a share of industrial output, exports, all of the major contributors to china's success story in that period. nevertheless, the role of the state and the chinese economy didn't entirely go away. it transformed a bit. and in the period since 2013 in particular, we've seen a bit of a resurgence of the state in economic activity. so this is clear that it's just a feature that we are going to have to address. we're going to need to think through how and why it matters for economies, trading partners like the united states, and to think about adapting the existing system, the wto, to recognize that. okay. so why might it matter, from an economist's perspective? and i've listed kind of four points up there as to why i think it might matter, or for certain industries, certain sectors, certain relationships, it's something for us to keep an eye on. the first is when there are global shocks. so think of a negative, you know, demand shock out there in the world that should affect all supplie

david: stephanie flanders of bloomberg economics and nick lardy, thank you very much for being with uslease stay with us. we will be talking about the decision ons latest chinese investment in the united states with the man who probably knows more about trade than any other senator, senator rob portman ofhio. he will be joining us next. this is bloomberg. ♪ david: the president takes the lead on trade relations, but the constitution gives congr substantial role as well. we will, man who helped lead trade policy from both ends of pennsylvia avenue. republican senator rob portman is coming to us today from the pital. we will start with this announcement that came out of the white house about how they will approach this question of investment from china, particularly with investment -- technology. the president said he will not go under the emergency powers act and that he will expand cfius provided you give him the power to do so. did he make the right decision? sen. portman: i think so. i think the changes to cfius are needed, particularly just to update it. i think what he is referring