-china relationship. in my view, china and u.s. relationship is the reason why it has come so far today because it has followed the trend of history and has moved an historical waves and that's what is needed by our peoples and that serves the common interest of our peoples. and that is because the man in both countries have come to appreciate that point. dr. kissinger is with us tonight dr. kissinger was one of the pioneers in normalizing the relationship between the two countries, and he was more lucky than most of the chinese people present tonight because he had the chance to meet the chairman, to meet premier chou which read left deeply, and he had the opportunity to meet with mr. don shopping as well as president hu jintao. so he witnessed an experience from the whole process of china's reform and opening up how this policy has been advanced and how it has been implemented and how great changes have taken place in china, so dr. kissinger is an eye witness of china and most of the friends here tonight also witnessed parts and

and we had demanded free china, we wanted a modern china and today we have a modern china. we have china that is economically stronger. we have chinese people who feel confident, who feel that finally after hundreds of years perhaps this is the moment to share that weaker asia and it to become a major player. we have also seen great development as i said earlier he had been abolished. people can move freely today and that the state monitoring of people's activities have been dramatically reduced. when i was growing up, five committees would always watch over what everyone said and even friends, relatives could turn because their lives could be threatened if they did not. and all of these happenings had vanished so the chinese people don't live in fear anymore though the censorship in the press is still there. and i have things who are dissident writers who can visit to beijing for example as an individual citizen and yet they cannot publish their work and china, nor could they speak to the press and one way that is an indication of lack of freedom. being another, that is a

. >>> china and the u.s. begin two days of critical talks on issues ranging from the world economy, climate change and nuclear proliferation. president obama says the outcome will shape the 21st century. >>> and from australia, the latest baby pictures of a newborn that's packing on the pounds and pulling in the crowd. >>> from the world's leading reporters and analysts, here is what's happening from around the world. this is "worldfocus." made possible, in part, by the followingunders -- >>> good evening, i'm martin savidge. as we told you friday, this is a critical week for u.s. israeli relations. no fewer than four prominent american officials are in israel to discuss iran's nuclear threat and to try to resolve differences between the two close allies. about israeli settlements on the west bank. we're going to have extensive congboth of these stories tonight. >>> we begin with new tough talk from israeli's defense minister emud barack with robbert gates. barack made it clear that israel is still considerin

ambassador to china. pcie the asia society in new york city hosted the event. it is an hour and 25 minutes. .. >> a lot of these details are familiar to many of you but i will sketch out a little history of how this book came into being. 1989, the crackdown comes. zhao ziyang was already out of power. he had fought the hard-liners in the highest levels of the party during the student protests. he had argued for a relatively lenient line. he would not listen to when the decision was made to declare martial law which eventually led to the violent crackdown. he refused to go along with it. at that point his career was done. he was pretty much out of the decisionmaking in may to june 4th. a la was sitting in the courtyard when the troops moved in to tienmen square. he lived under house arrest in beijing. and he was occasionally able to have visitors and travel, but frequently both were denied. in the book he talks about the kind of really almost comical attempts to keep him from doing normal things like going out to see somebody or play golf or something like that.

we see that china has come back, china's actually starting to grow nicely again, pulling asia with them. and we see even the u.s. clearly bottomed out and we even see some signs of uptick here. >> what are the signs of uptick? let's go through where specifically you are seeing signs of progress. >> well, number one, we have inventory levels pretty much all across the industries that are so low that we've never seen before. everybody has tried to save cash and brought the inventories down. so we are seeing there's quite a nervousness in the market because everybody knows there will be a recovery but they know that they also will not be able with the low levels of inventory to be there once it recovers. automotive industry. automotives industry in the u.s., we see ford and chrysler -- ford and toyota both have announced that they will revamp production for their most popular models in the second half of this year. cash for clunkers is a program coming in that's been super successful. in europe, 12 countries in europe have established this. coming to the u.s. now. pretty much everybody ass

commodities are looking at china. who exactly is leading this economy on what news is very, very weak. we think right now tlt not enough support to move the market one way or the other and the optimism will wane and we'll see a pullback in risk appetite. >> do you have any medium term view on the dollar? what is your medium term view on the dollar? >> medium term view, we see a weaker dollar. i think one of the clear drivers is repatriation or the reverse repatriation of flow we saw during the financial crisis. a massive flow of capital in the u.s. for the safe haven reason, much more than we saw in 2000 in the tech bubble collapse. that capital is going to look for a higher risk premium. and inside the u.s. is not going to beware. money manager will be looking to emerging markets, looking to europe, and then we'll see a massive flow outside of the u.s. dollar. >> do you concur with that? >> well, i think piecer is right to focus on dollar risks, ross. you know, american consumers have started to save again, which is

carol shen, general manager of estee lauders china affiliate, says the economic downturn heightens chinas importance in estee lauder's global strategy. >> i just think it makes china even more important and more strategic, because i think that around the world this is a growth area. >> the company has eight brands in china, and opened this development center in 2005. >> here the company tests products like mascara and foundation specifically for the asia market. it's the company's second largest research center in asia, and their research is paying off. in fiscal year 2008, the company's sales in china grew 41% over 2007. estee lauder has counters in 32 chinese cities, and during the economic downturn carol shen says the company is shifting strategies from further expansion to penetration. >> in the next 12 to 18 months we are going to go deeper in the cities we are already present in, rather than opening in a lot more new cities. >> reporter: the company will heighten brand awareness through advertising and promotions. but carol shen says estee lauder will maintain its one brand, one wor

the new world order, where we used to be china and china's now us. you know that a dozen years ago china used about 10% of the world's copper and we used 30%? do you know it's exactly reversed now? they use 30%, we use 10%? since copper's used in all kinds of construction and infrastructure projects, none of which we're doing, a decrease in demand from the communist chinese is pretty bad news. especially for american companies that need china much more than they need the good old usa. when it comes to economic growth, we used to be the top dog. but now the dog's china. and we're just its little tail that it can wag all it wants. when we awaited the results of the debt auction today, we needed to know, did the chinese like it? when we speak of free trade, the question is will it upset the chinese? we are like britain in 1946, and china is america. i thought hard where we still have a say. where we still have a choice when it comes to china. and i was struck about something my daughter said to me on sunday. dad, chicken fried rice or moo shu pork? we'r

the headlines, china grows while others are shrinking. john records growth of nearly 8% as the stimulus package kicks in. fears over house some of the money is spent. the telescan has grown in strength, a warning from an american commander. troops are hobbled by lack of helicopters in afghanistan. america may be expanding military bases in colombia. what will their neighbors think? india and pakistan tried to get back to better relations after the terror attacks. >> the u.s. space shuttle endeavor finally lift off, destination, international space station. nasa celebrates 40 years since the launch of apollo 11. tom watson rolls back the years at the british open. it is 7:00 in washington, midday in london, 7:00 in the evening in beijing. the government appears to have pulled off the amazing trick of expanding the economy while most major countries still languish far behind. a growth rate of nearly 8% for the three months to june is an indication of beijing's massive stimulus package. the authorities are the first to admit the growth is pa

counting on our exports to china. >>reporter: unlike 12 years ago, south koreans are hopeful this time that their economy will quickly regain its former pomp. >>: they're also hopeful that this ceremonial changing of the palace guard in seoul will be as close as they get to seeing a military deployment in their half of the korean peninsula. >>abirached: china's holding of around one trillion dollars of us treasury bonds is well known, but less well known is the new sovereign wealth fund created by china just two years ago, the china investment corporation. with $200 billion of assets and high profile investments in morgan stanley and other us firms, the new fund is making a strong debut. so how does china's sovereign wealth fund see the world economy and investment opportunities to come? our executive editor alan friedman sat down with the fund's president gao xiqing... >>friedman: of china's two trillion dollars reserves your sovereign wealth fund is a couple of hundred billion dollars. your highest profile investmen

some in china think that america will try to contain china's ambitions. some in america think that there is something to fear in a rising china. i take a different view, and i believe president hu takes a different view as well. i believe in a future where china is a strong, prosperous and successful member of the community of nations, a future when our nations are partners out of necessity but also out of opportuni opportunity. the future is not fixed but at destination that can be reached if we pursue a sustained dialogue like the one you will commence today and act on what we hear and what we learn. thousands of years ago the great philosopher menches says a trail through the mountains if used becomes a path in a short time. but if unused, becomes blocked by grass in an equally short time. our task is to forge a path for our children to prevent mistrust or inevitable differences at the moment from allow that trail to be blocked by grass, to always be mindful of the journey that we are undertaking together. this dialogue will help determine the ultimate

trade deficit with china down 18%. with china shifting from export- led growth to growth at home, treasury secretary timothy geithner wants to see the trend continue. >> china's success in shifting structure of economy will be huge contribution to bringing about more rapid global recovery >> reporter: but china has fueled the shift with large increases in bank lending, a trend that worries some observers, says the u.s. china business council's john frisbie. >> so the u.s. will have its own questions about china's exit strategy from that to avoid inflation down the road, just as china is going to be talking about our own exit strategy to avoid inflation here down the road. >> reporter: this meeting is billed as a dialogue and it is high level: by including secretary of state hillary clinton, the obama team is signaling the breadth of issues china and the u.s. face. but the very size of the meeting and the size of the two nations underscores the difficulty of making quick changes. >> this makes it very important that thi

and the g-8 summit in china. joining us now with some analysis is tomo kimoshita and live out of hong kong. before we get to the currency issue, let me ask you about property prices rising for the first time in seven months. is this price recovery anything to talk about it or is it artificial dow to cheap credit in china? >> well, out of the various segments of the investment that rio asset sector has shown kind of a slowing for the -- until two months ago. but it is very good to know that this secretary is reviving. it is business elements of speculation, but this is based on the real demand. because of the lower interest rates and the government stimulus package and the government policy to make it more affordable for the residents to push chas property, those middle class consumers are purchasing those housing. so i think this is going to really help the economy in the second half of this year and next year. >> so real demand is really going to happen. what follow through impact will it have on understand indu

a top chinese official saying china will never be the u.s. the u.s. will never be china. trish? there go hampton pearson, thank you so much. live at the white house. >>> from strategic economic kai log -- dialogue, check out the shanghai composite. also the hang seng, up 40%. quite a bit of upside. how can you make money right now in china stock in joining us we have five-star fund manager andrew foster of matthews funds. great to see you. thanks for being on the program. >> great. thanks. >> okay, so you lack at china right now and so many people have said this is an economy that's clearly going to suffer based on this -- the fact that the rest of the world is not going to be gobbling up their goods. and yet, one thing a bit of a surprise and one thing you highlight is the fact that china has emerged with a rather stable domestic economy of its own. how does that play into the investment picture now? >> i think that has been the key surprise year-to-date when -- in terms of investing in china. some folks really thought that when the export side turned down globally, that china

speaking of china, are you confident that the sdrengt you see in china could help you offset some of the weakness you've seen elsewhere? >> china is a very big market for basf. nevertheless, our main markets are north america and europe. it might be difficult to live up to the expectations which we have created in 2008 when we had record earnings. >> mr. bock, what about the situation here in the u.s.? you say it's too early to tell, but are there any signs at all of stabilization or bottoming? >> our problem, frankly, is that our customers also don't know what's going to happen. we get autos on a very short notice. small quantities, more frequent ordering process and also our automotive customers i think don't have a clear picture of what's going to happen moving forward. so we have no indications that there is an imminent recovery of demand. what we can say most probably the decline has bottomed out. >> now, when it comes to your margins, mr. bock, i wonder about the development. if there's no real nand, your cost cutting will be at an end. what about the margins going forward? >>

what we have now is with china a massive debt that can be purchased and is now being purchased by china. we have a massive debt here actually just even this year's debt is going to be $1 trillion hire. $4 trillion budget, $2 trillion in debt. and the chinese are very happy to buy it because they are holding it over our heads and grabbing us by the throat. we have given china everything and we are left with nothing but ruin and cheap poorly manufactured goods, poisonous toys, and all too often poisonous food. we need first and foremost to demand our policymakers who are negotiating trade agreements with foreign governments, that their primary concern be, and i say this emphatically, the primary concern of our negotiators should be, what is good for the people of the united states? and that those negotiators be patriots in their perspective and not globalists who are tied to some motion of what's good for the world or some philanthropist who wants to help other peoples and other countries at the expense of our own people, the american people. we have not had that. we have permitted a trad

the home region that is described by china as a region of tibet. 8 million uighurs live in china, that's half of the population, 2.3 live in the capital. mostly chinese who the uighurs complain of setting there for their control. they complain of persecution by the chinese government. joining me is the former director of the chinese studies. thank you very much for being with me. how serious are these clashes, obviously news still coming in. >> as you say news is still coming in and difficult to evaluate how serious. but at the moment they seem unprecedented. there has never been violence on this scale in the regional capital of xinjiang. there has been violence in places on the northwest borders, but nothing like this in urumqi. >> we are looking at clashes as we speak. there is tibet to the south, is it accurate to describe this as another tibet? >> i think it's as serious as that. we are aware of that cause of the prominence of dalla lama and making that known. the situation of xinjiang is a parallel of influx of hans chinese and the muslim population that are not related to the han.

and china? >> i think right now what we see the administration strategy is emphasizing the economic aspects of the relationship. over human rights, political issues and i think they're accentuating the positive because right now with the economy being so uncertain and china such a big economic engine. about foreign exchange currency adjustments and so on and trade issues so they're accentuating the positives in meetings this week. and putting on the back burner some of the more troubling issues. >> and what are the troubling issues? >> the troubling issues are, disputes over just how each side is going to play its currency and its reserves and economic policies and domestic stimuluses. but this relationship will go well. frankly, iran, israel, these are important but chronic and somewhat low-grade policies. the u.s./china relationship is going to be the defining feature of international politics in the next several decades. it has to go well because the consequences of it going badly are horribl

first of all, do you think we overestimate china? after all, there's still many more american companies that are on this list. >> that's true. the united states still has 140 companies on the list, as you mentioned. and china's only 37. however, it's all about growth. the chinese economy is growing despite the recent economic crisis. projections say perhaps 6% or 7% this year. the united states is stalled. europe has stalled. even japan has stalled. so china looks like it's going to be -- >> it's the future. >> it's the potential, absolutely. >> what about japan? did we overlook japan somewhat? they are still second on the list. >> they are second with 68 companies on our list out of the 500. and they have very powerful corporations. i mean toyota is just one example. and they're a country to be reckoned with. but, again, it's a growth story. if you look at where the most growth is going on, it's not in the developed world, it's in the developing world. >> and getting back to china, i think there is this hope in the world that as chi

some in china think that america will try to contain china's ambitio ambitions. some in america think that there is something to fear in a rising china. i take a different view. i believe in a future where china is a strong, prosperous, and successful member of the community of nations. a future when our nations are partners out of necessity but also out of opportunity. its future is is not fixed, but a destination that can we pursud dialogue like the one that you will commence today and act on what we hear and what we learn. thousands of years ago, the great fill loss officer said, a trail through the mountains, if used, becomes a path and a short time. but if unused becomes blunt like grass and an equally short time. our task is a forth a time of future that we seek for our children that prevents mistrust from allowing that moment to be blocked by grass. always be mindful of the journey that we are undertaking together. this dialogue will help determine the ultimate destination of that journey and represent a commitment to shape our young century through sustai

with a furthering of china's reform and opening up, china and the united states will have even closer cooperation and trade relations and the relationship will keep moving forward at a new starting point. i wish this round of china strategic and economic dialogue a complete success. thank you. [applause] i now give the floor to secretary of treasury, tim geithner. >> thank you. it is a great pleasure to join secretary clinton and our colleagues to welcome you and your delegation to washington. in london, as she said, president obama and your president called on us to build on a comprehensive, bilateral relationship. this strategic and economic dialogue is a testament to the importance of the relationship and are committed -- and our commitment to strengthening it. i had the privilege of studying twice in china almost 30 years ago. if you look at what china has achieved since then, the leadership of that country has brought about one of the most remarkable transformations in economic development and growth we have seen in modern economic history. no one cavan look at what china has ach

that is china's expansion into latin america in a nut nutshell. >> china is the world's third largestconomy but is working its way up to number one. joshua cooper ramos is here, managing director of kissinger associates and speaks mandarin and divides his time between beijing and new york city. always a pleasure to see you. >> you too, glenn. glenn: you just got back from china. this is a chart from their area of influence, their area of the world. if you show this and show the different places of their connections here. they are spreading out everywhere, and then we'll show later on they go into africa, south america, i think the entire planet, while everybody else is selling, they're buying, right? >> the thing that has allowed china to do what they have done in the last 30 years which is lift 400 million people out of poverty is an export economy. glenn: they are growing an at exponential rate and they're parking this money they're raking in right now, and my question is -- and maybe we will take a break, but when we come back, i want you to explain, in america, nobody has a proble

ford's china bas car sales in june we up 55% year on year. while general to plans to double its china produion to over two million units by 20. stefan kracht isxecutive director of the china rket intelligence consultan, ficia. >> thoseho are successfully erating in china, i believe, will see further investment anrather than being new investments, they e deeper investmentinto joint ventures thathey have already set up or within the value chain: component manufacturers or suppliers. >> reporte this positive outlook res on the governnt's continued auto industryupport plus, at the opational level, maintaining low wages. re at lifan, xu yanping work ne hours a day with an hour off folunch, six days a week. holidays amount to 16 dayser year. her monthly takeome pay is $190. in new china, anssembly line couple wld be hard pressed to buy an apartment or own a ca >> ( translated ):f he's an engineer or in managent, i think we could afforone. ife has the same salary as me, i'm afraide couldn't. >> reporter: the u.s. to unions mayhudder at this hard rea

david was talking about china. in china, golf is just exploding. china is probably our key market today. >> all right. thank you very much. china keeps coming back again and again and again. jack, david and howard. >>> up next -- jim cramer is here with his trades and he has one key one on the back of the housing sales numbers. >>> and with all of the talk in washington, will any of the health care actions actually cut down what matters the most? and that is costs are rising more quickly than inflation. in these markets, i'm glad i turned to fidelity for an annuity with guaranteed income for life. that's right, guaranteed income for life. my annuity from fidelity means my retirement income is safe. it's guaranteed, no matter what happens. if guaranteed income for life sounds good to you, do what i did -- let fidelity be your guide. call fidelity at... for details about guaranteed income for life. . >>> time to stop trading. hey, jim. >> welcome back. >> i'm glad to be back. i will see you in person tomorrow. >> of course. >> i know you have a whole

obviously china is usually one of the big buyers there or they hoped china to be. how does that affect the dialogue? >> i think both sides are pretty mature on this point. meaning, china deploys its capital overseas in the way that it thinks best in terms of return and liquidity, security and so forth. and the burden is on the united states to always make sure the united states' dollar provides the best locale for that investment. i think both sides have wisely kept that out of day to day politics or day to day political issues. it wouldn't help either country's economy to politicize china's investment strategy. >> this week the dialogue becomes more political. we are seeing the secretary of state, hillary clinton, side by side with tim geithner. how does that change the dynamics in terms of talking about all these issues? >> yeah. i think here's the central point. i participated in the first three of these that took place under the bush administration, when hank paulson was treasury secretary. here's the central point. these are two great powers that need to defin

rio/china relations are strained. china feels as though it was strung along by rio.the two were to partner with injecting $19.5 billion into rio. rio snubbed. the detentions, of course, have unnerved foreign business people in china. from a global perspective as china demands a bigger role it throws into questions the practices behind the great wall. china official as the g-8 will be under pressure to reassure other countries that china does, indeed, engage in fair dealings. while china authorities don't always detail allegations in this case it will be pressured to do so, especially if it wants to maintain relations with australia. >> karen, thanks for that. karen out of sydney for us. >> karen raised an interesting point. the reality is that rio tinto almost did a deal with china chenlco for an aluminum stake but also to get closer to iron ore. i goent think this changes anybody's view whether they wanted to do business in china before or not. i think it shows the value in the ore company. rio tinto and bhp, they are cutting deals with chinese. i think great opport

and china's communist party, won't let this happen. which is promising news for those linked or linking-up with china. take the case of lifan: in april, mr. yin paid a.i.g. a dividend. nick mackie, "nightly business report," chongqing. >> paul: tomorrow, our friday market monitor guest is gary motyl chief investment officer at templeton global equity. >> susie: u.s. homebuilders are starting to feel better about the housing market. the national association of homebuilders said today its confidence index inched up slightly from june to july. that's due in part to low interest rates and incentives boosting sales of new single family homes. july's reading of "17" is the highest since last september. but it's still well below "50," which shows market conditions as favorable for sales. >> paul: meanwhile, home foreclosures are still hitting record levels, despite the adminstration's $75 billion plan to help homeowners at risk. over the last six months, one in 84 households got a foreclosure- related notice, a 15% rise from last year. that's

useful china is basically the eastern part of china.the part of china which is profitable because it is in a permanent relationship with the rest of the world, globalized china. this globalized china is using the work force of the peasants or not using the work force of the peasants at all, which means 60% of the chinese people are completely left out of the development process. this is a strategy choice. this brings a -- so, there are two -- well, at least two risk factors for china -- three, even, i think. first one, when you leave out 60% of the people, even in the perceived regime, you don't know what will happen in the long term, and we can see that these days. there is a huge risk factor because of this imbalance in china and which is not the case in other developing countries like brazil or india, where, because of democracy, governments try to incorporate a larger number of people. so there's a huge risk factor connected to the social division. second weakness of china is a complete lack of innovation. china basically is an econ

china's concern for the u.s. economy...why it's pushing for america to be more responsible with our fiscal spending.. and should we be afraid of china's threats? plus, from yahoo to microsoft....the competition among internet search engines heats up...but do they have what it take to lure users away from google. and...finding happiness during this gloomy economy....why one expert says now is the time to look for the positive....it's all ahead on this edition of first business. welcome to the show everybody thank you for joining us and let's bring matt shapiro of m w s capital joining us from the options exchange. it looks like the stock market is continuing to like what they are hearing from companies reporting second quarter earnings results. this morning we are going to have some big names at&t american express ups and microsoft after the close and i think this is going to put points on if we can get to the century mark that with and stalking best of distance. cochran did so with initial claims this morning and

/china relationship.utah governor, i have been deeply involved in exploring clean energy options for the western united states. if confirmed i will continue my personal interest in working with china to identify and take action in areas that are mushly beneficial to promote low carbon economic growth. of course, there are areas where we have differences with china including taiwan, human rights, tibet, to name is view. the promotion of human rights is an essential element of american global foreign policy, and if confirmed, i will forward -- i look forward to robust engagement with china on human rights. having spent time living on taiwan, i feel personally invested in the peaceful resolution of cross-strait differences in a way that respects the wishes of the people on both taiwan and the mainland. i believe the one-china policy based on the three-joint communiques and the taiwan relations act supports this objective, and i have been encouraged by the recent relaxing of cross-strait tensions. finally, i'

is china going to cripple the summer rally? is china going to bring commodities down? what's going on. why did it crack up 5% today. >> three questions, i will go with the last one first. the kerp today was there was indication from the authorities in china they will stop the crazy lending going on. they had an explosion in bank loan, actually andy bush did a great piece on cnbc.com on this subject. the record number of loans made, probably 20% have gone into the stock market and property speculation. they're talking about tamping things down. end of the story, i don't think they're going to. >> how about a second end to the story. should they? a lot of people have been talking about a bubble in china, pouring stimulus in, right? a lot of the stimulus has gone into the stock market and a lot has gone into forced bank lending, which is guaranteed by the government, by the bank of china, kind of like fannie mae and freddie mac. i hope that story turns out better than fannie mae and freddie mac did. >> both are true but that's only a part. when we've been speaking to comp

investment in china. but in recent years motorolas sales have fallen rapidly. >> we've seen a tremendous fall from grace for this company. the speed of motorola's decline in china has surprised many, including many of its chinese employees. >> reporter: according to b.d.a. and the chinese market research firm c.c.i.d., motorola's market share for mobile devices in china has fallen from 22% at the beginning of 2007 to just over 6% this year. part of the company's problem has been under investment in research and development. nokia and samsung are bringing new models into the market quickly, and motorola has had trouble following up its success with the razr phone, launched in 2004. one of the biggest challenges here for motorola is keeping pace with demand. in china, mobile phones are a status symbol and people change their phones frequently. clark says motorola has been late to the market with technology chinese consumers look for. >> chinese consumers are keen to be seen to carry the most advanced techno

he's visited china 12 times in the last 8 years. he's established many joint ventures with their universities. the endowment has been hit hard. he serves on president obama's advisors of science and technology. i am pleased to have him back at this table. welcome. >> thanks for having me. >> charlie: let me do a quick bio, you grew up in stanford and went to oxford. >> i lost the rhodes competition but i got a prize from the english speaking union. it was embarrassing because my wife had already won -- she was then my fiance. she had already one a fulbright and i came home empty from the rose competition along with other people. then i got this consolation prize and it's been two wonderful years. >> charlie: she had a fulbright and you had an english speaking union and you went to oxford and got a bachelors. >> what i got is now a master's degree. it was just a degree where you write an independent thesis. do an independent study. >> charlie: economics and philosophy. >> philosophy and politics. >> charlie: did you think of being an

how did they come to view in china? >> well, the uighurs are 1 of 55 national minorities that the chinese government recognizes. always lived in that part of the world, which is now xinjiang of china. they live on the chinese side, as well as the other side, kazakhstan of that border. they're a turkette people. they believe in islam. they're not chinese in the way that we think of ethnic chinese and that's where they've always lived. >> and what are their grievances? >> their grievances are essentially that their identity is not recognized by the chinese state. although the chinese state says that it recognizes ethnic minority autonomy, but actually what they've done is to kind of bury the local people, the uighurs and this influx of han chinese from the rest of china. and their strategy is to develop the region economically but uighurs are in the backwater of that development. they're ghettowise. they're not getting ahead economically. their religion is not respected. and so they feel that -- that they are not respecte

to china? >> i am just contemplating this. it is an interesting transition. the answer is -- it is complicated. the answer is, yes, we will do technology transfer. that is critical. i think direct expenditure would be very difficult to explain to the american people at a time when we have a $2 trillion currency surplus in china and we are baring as much money as we can from them. it is pretty hard to understand how we barrault -- borrow from them and then give to them. that is a hard sale. i think it is very important to the united states to help some of the less-developed nations and smaller nations to be able to embrace what they would like to embrace. we talked about the types of money that may be necessary along with the major economies in the world, not just the united states. i'm not one to go into those figures now. they would be inappropriate. there has to be a funds made available that helps certain countries make transitions. in the case of china, we have to negotiate a very special k

. >> how about china? also one of the countries. >> we have a couple of countries in china. china has extraordinary growth. it's not as transparent. it's not as clear. >> that's a good point. >> that makes it a little bit more difficult from an investment point of view. but i'm as enthusiastic about china as i am about brazil. brazil's just a little easier to deal with. >> let me switch gears. you're a man that wears many hats, one of them head of tribune. you probably hate this subject. you said it was a mistake when you did the deal. we know the company filed for chapter 11 in december. where does that stand? what can you tell us? >> i think the company filed in december. i think it's going to turn out that it being the first to file is going to be an enormous advantage for it in the future because it's going to solve its problems without destroying itself in the process. we're obviously in the bankruptcy court, no plan has been put forward yet although everybody is working on one. and i suspect that sometime between now and maybe as early as the end of the year, it will e

now, china and u.s. leaders have been meeting in washington to discuss major economic and political differences. u.s. president barack obama said the relationship between the u.s. and china which shape the 21st century and said the two shared a mutual interest. the meeting is the first formal negotiations between the u.s. and china since mr. obama took office. we have this report from washington. >> china and america were standing together today, trying to speak the same language. >> yes, we can. >> not much of substance was announced, but there were grand themes. >> the relationship between the united states and china will shape the 21st century, which makes it as important as and have bilateral relationship in the world -- makes it has important as any bilateral relationship -- makes it as important as any bilateral relationship in the world. the current crisis has made it clear that the current choice is made within our borders reverberate across the global economy, and this is true not just in new yo

my focus is china. could you comment on the status of pakistan-china relations. is there a difference between the military relations and the civilian government? any thoughts? >> we have had a long relationship with china. it's been a military relationship in the sense that we have procured equipment from china in the past and we have a joint production of fighter aircraft and battle tanks with chinese collaboration in pakistan. we have, on the civilian side, and has been offering incentives and encouraged to comment on the economic side in pakistan. right now they have not come in strongly, but somewhat in the telecommunications sector. they have a big telecommunications company operating there. they have come in on infrastructure. some mining and other projects as well. the civilian government and military both have been pushing for greater collaborations with china. to the effort on the civil side has been to bring china more and more into the economic sphere. we have not really had a problem with china. minor issues may be like one group operating somewhere i

that's what bothers china. china is certainly not bothered by large deficits in the midst of the worst global and u.s. domestic downturn in 80 years. i think she's grateful for that. in fact, china was the country which stimulated the other country, besides the united states, that stimulated very early and they had a very large scale. whereas europe lagged far behind both in scale and in timing. so i think what they're looking for is some indication that -- that the administration and congress will address the long-term budget deficits in the way of clinton administration did in the 1990s. >> dan, you dismissed the currency question. for a time, that was front and center in our relationship with china. what happened to that? >> currency has been a big issue over the past five years because it's relatively easy to talk about. it's something you guys talk about and see every day. it's pretty easy to get the number. you can come up with a fairly good estimate of how much it's undervalued, say, against the dollar.

and china-u.s. relationship will surely keep moving forward at a new starting point at which this round -- new starting point. i wish this round complete success. i now give the floor to secretary of the treasury timothy geithner. >> thank you vice premier wang. it's a great pleasure to join secretary clinton and your entire delegation. president obama and president wu called on us to build a comprehensive bi-lateral relationship. this is a testament to the importance of that relationship and our commitment to strength g it. i had the privilege of studying twice in china almost 30 years ago. and if you look what china has achieved since this the leadership in that country has brought about some of the most remarkable transformations in modern economic history. no one can look at china and not be convinced by the basic fact that when china commits to reform it is able to deliver remarkable change. this strategic and economic dialogue breaks new ground by bringing together senior officials across the