and china.g the impact of china's economic security and human rights policies on the u.s. florida republican congresswoman chairs that committee. and more coverage of the visit of the chinese president tonight as the white house hosts a state dinner in his honor. it will begin at 5:30 eastern as we'll show you guest arrivals for the dinner at 6:00 we'll have the arrival of the chinese president and his wife on the north portico of the white house. and then at 8:00, we'll bring you a discussion on the state visit including re-airs of toast. president obama and president hu along with viewer phone calls. that's starting at 8:00 pm eastern. a discussion for you on u.s./china relations. john huntsman will be speaking from the brookings institution. this is about an hour. [inaudible conversations] >> i'm kenneth -- >> good morning, to this second forum on u.s. -- on u.s./china strategic forum on clean energy cooperation. i'm just delighted you all could make it today. for some of the americans despit

for china, if you put yourselves into china's shoes, what's the interest of china? all we need is peace abroad and the stability at home. we modernize our defense because the world is not safe. we had to prepare. that means that we are going to challenge the u.s. no, we will not do that. i don't know whether the people... whether people still remember what he say in 1974 before the u.n. assembly. you know, i was there. i was at the chinese mission to the united nations. i say china will never speak hegemony. should one day the chinese do that, i urge people around the world, i appeal to people around the world to unite and to defeat the chinese hegemony. i was in the united nations for many years. i heard many statesmen. none made such a statement. china is very serious. we'll not seek hegemony. we'll not challenge u.s. hegemony. what we want is to develop cooperation with the u.s. on the basics of equality and mutual benefits. and we did that in the past 30 years. on the chinese side, we'll keep doing that in the coming age. that was in china's best interest. >> ch

-china rerelations and what it meant to china? >> i think it was a very fruitful week, a very productive week. it goes a long way in promoting relations between china and the united states, particularly for the second decade of this century because the two sides agreed to develop a partnership based on mutual benefits and, also, a mutual respect. and i think this is very important for the world, for our two countries. >> rose: the chinese got what they hoped to gain from this-- from the meetings? >> i thinkoth sides are pleased with the results of the visit. because we are very sensitive to your concerns, and i think the u.s. has tried its best to be sensitive to our concerns. now i think the challenge is to implement what has been agreed upon. >> rose: would you agree with this statement that someone said it put a floor under the chinese-american relationship after a difficult year? >> actually, when the administration came into this office, we had a good transition, and the relations for most of the time since e administration c

china, china is of two minds in this. of the one hand china would eventually like to see a more low--calorie gorbachev and style buffer states, a kind of of authoritarian capitalist trending in north korea that would be blessed stalinist it, less extreme than the current regime. on the other hand china is afraid of pushing this too far because it fears the collapse of north korea because the bulk of north korea's population and industry is in the northern part of north korea. were you to have a collapse of the state you could have millions of north caribbean refugees flooding across the river into chinese manchuria itself. china is very much afraid of that. so why would it want a regime that is less tolerable than the current stalinist monstrosity. at the same time, china is very fearful of a collapse. so china is upholding the status quo in north korea, but my opinion is that a regime like this is ultimately not viable in the world that we live in today. were the north korean regime would unravel suddenly, you could have

think of the south china sea as china's caribbean. it's a -- in geographical terms, this sea is a marginal sea. that is, it's partly enclosed, partly open to the ocean, same as the caribbean is. a chinese official said to me when i mentioned that china considers it a core national interest, and this is counter to what the united states and its allies and all the other countries in the area see it, the chinese official said to me, you americans in the 19th century and in the early 20th, you recognize that the caribbean was an international waterway, but you also made it clear that you intended to dominate it. why should we chinese act any differently towards the south china sea than you americans did to the caribbean? so the south china sea is a coming issue. it's an issue that's going to be with a great future in the headlines as much as the persian gulf has had in the last few decades. let me close up with this idea that mill trair activity -- military activity is often not linnier. the vietnam war was more like the philippine war at

and china? >> i think some of that may be somewhat dependent on what i just discussed in terms of their art -- there is cooperation between these countries on different aspects of bilateral and multilateral relationships; there are challenges. there are benefits and there are things that must be worked through. so i know that in order to make progress on certain issues, you've seen the two countries work together, despite, again, continuing to have differences on things like continued economic growth and human rights. and i think that's what you will see the president -- the two presidents discussed tomorrow. >> and will there be any joint statement after the statement? >> just a press conference, and will be coverage of the oval meeting, there will be a coverage of the ceos and there will be coverage obviously -- well, obviously the arrival, some sort of -- obviously there's some water balancing concerns that we are working for for tomorrows staff the rival -- but obviously the press conference

businesses in china. let me just read you, larry, one of the conclusions that the authors wrote here. chinese officials have learned to tackle multinational companies, including u.s. companies, often forcing them to form joint ventures with it's national champions, and transfer the latest technology in exchange for current and future business opportunities. companies that resist are simply excluded from projects. the chinese government uses the restrictions to drive wedges between foreign rivals vying to land big projects in the country, and induce each of them to transfer the technologies that state-owned enterprises need to catch up. it is extortion. and we also know numerous examples. we've heard witnesses, i think two years ago, we heard from nancy weinstein, nancy lifestyles open the business in beijing to have it stolen from under her. she was in shanghai. since that hearing, i probably heard from a half dozen businesses that said we don't want to go public, but this is their hot thus -- motus op op

products to china as kind of a you know a sweetener to kind of nudge the chinese along to appreciate their currency a little bit faster do you think this is the chinese will bite i mean is this just a snow job because the u.s. doesn't have a lot of leverage here. first of all clearly more and more the chinese are in the driver's seat so there can be no doubt about that actually even independent research association based in the us in new in new york maybe michael taylor to tell us something about it if you know them there's that conference board they recently came out as a projection of saying that china at the size of the chinese economy in real terms of physical production terms when you adjust the currency for the undervaluation of on the purchasing power basis then china may overtake the united states next year to become the number one economy and also projecting if the growth rates that we're seeing are continuing for the next nine ten years you might see china making up twenty four percent of the world economic output by two thousand and twenty and the us about fifteen percent

we believe china will do so because the alternative would be too costly both for china and for china's relations with the rest of the world. >> reporter: secretary of state clinton. >> we need to open up more opportunities for american manufactured goods, farm and ranch products and services, as well as allowing currency to appreciate more rapidly. these reforms we believe would not only benefit both our countries but contribute to global economic balance, predictability and broader prosperity. >> you have seen a small move lower in the dollar but not pressureably so. >> reporter: back in november, david stek, who runs the foreign exchange desk of a securities company in new york, showed us how the dollar had been faring against the chinese currency. >> here you're looking at a long term chart. >> reporter: for many years china glued its currency to the u.s. dollar, but starting in 2005, china loosened its grip. letting the value of the dollar fall against the chinese currency, some 20% over three years. but in 2008 the world financial crisis hit. and china reglued the currency to the

china relations. tell me what that blue print might be, ought to be. >> when i came to china on the first visit, when the communication was completed, jintao said to me this will shake the world. because we had been antagonists for 25 years. and it was the alliances for china which had been with the soviet union. now we have a different problem. the problem isn't to shake the world, the problem is to build the world in which in a paradoxical way both china and the united states face the same problem. from a different standpoint. americans think our values are relevant to the rest of the world. and there are many questions that we have a duty to spread our values throughout the rest of the world. the chinese don't spread spread their values. you can't be a chinese but they think they're universal and unique. so here are two of the most powerful countries in world in which there are a lot of problems that can be dealt with on a global basis. so we have to do it together in some fashion. which is not the

/china relations soured l.a. last year after the obama administration decided to sell arms to taiwan. in retaliation, china suspended military exchanges with the u.s. the two countries recently agreed to resume military contact. however, differences remain between the two countries over the yuan/dollar exchange rate and how to deal with north korea. ♪ >>> year after year, china prominence has been increasing in the international community and it looks as if this year as well the country will remain in the spotlight. on the economic front, china is projected to see an annual growth rate of about 9% this year, and will continue to be a driving force behind the world economy. this will become quite clear later this month when chinese president hu jintao will visit the united states for talks with president barack obama. but domestically there is growing public discontent arising from an economic divide that is presenting a major challenge to the chinese government, which will have to work out solutions to pressing d

-china initiative. let me just talk about a few of them be the flagship program here at the research center is the first of its kind, joint clean energy brings together teams of u.s. and chinese scientific engineers more than 150 of whom have come to washington, d.c. today and tomorrow and many are here in the room. thank you for your commitment to this work, a hugely important and a tremendous opportunity we believe. $150 million of public funding over five years split evenly between the two countries. the past couple of weeks it had people tell me both that's too little and too much so maybe we got it right and the initial topic areas are building, coal and vehicles. here is my roskam secretary chu with the minister at the signing of the korean energy research center agreement last year along with u.s. commerce secretary barry locke. this is in the great hall of the people. at the department of energy in the past year we release what we call a funding opportunity announcement. it's a legal american te

and china.esolve a wide range of economic tensions including one american multinational corporations see as a deteriorating environment for investing in making money in what has become the worlds second largest economy. the times writes it's no longer justified overachiever chinese textile and electronics and toy imports. china won that battle years ago. now the question with japan in the 1980s is whether general electric and microsoft and other american companies that dearly want to expand into china rapidly expanding markets will find themselves eaten at their own game backed by chinese companies, backed by the chinese government. those leaders of those companies, general electric, microsoft and boeing and others have been meeting with president obama and president hu just a short while ago. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> waiting at the white

one is to china's government and the others to china's people. that can be described as we can get away. they put nobel peace pre when they're in j-lo. we can get away standing for human rights. the message to the people, that if u.s. may not be that sincere about human rights issues in china. and i want to emphasize that china is very practical, very rational play. china's legitimacy is performance-based. namely, the only thought of legitimate for this regime to continue its rule in china is economic growth. so we have to much impose the fear onour self, thinking that if we take a stronger position on human rights issue, that will jeopardize our economic relationship with china. why should we fear? these are the persons we should -- it is then that we should fear, you know, any jeopardizes economic relations with the u.s. and the rest of the world. because the slow economic growth will be there all t problems we have been aumulating in the past years, that will cost the government to collapse. >> thank you very much, mr. reno, for giving the tim

-china relations. in honor of this very historic moment, i would like to propose a toast to presidents hu and to his esteemed delegation. kombai. to the great future of china, the great future of the united states, and to the continued health of strong-u.s. relations. now i would like to introduce a gentleman and friend who plays a critical role in shaping health u.s. relations with china. secretary of commerce, gary lauck has graciously agreed to make remarks on behalf of the obama administration this afternoon. secretary locke last month co- chaired the meeting last month. two leaders of the dialogue are here today with us, the co- chair, ron kirk and well month lows in this room, a town of's -- john's the vice premier. i applaud and thank all three of you for the important work. [applause] secretary locke is a strong supporter of balanced and instructed u.s.-china relations. we are fortunate to have him representing our commercial interests here and around the globe. we're fortunate to hear his rema

and there's a very very long so i think a lot of the preconception about china and also. wrong end of western media or taste quite a biased on those economies. are not justified you know michael it's interesting i mean again just looking at the western mainstream media you know in about the visit of the chinese president i mean in looking back at the the mid-term elections i mean blame china blame these people blame everybody americans just love to blame everybody else but they don't want to look at inside and look at themselves and to see what they have done wrong every country makes mistakes and hopefully countries have the ability to learn from their mistakes is the united states doing that because as this trip is about to happen i just see again all that really does slurs and people they simply have no idea what they're talking about. here's the problem that's being missed every economy since the stone age has been a planned economy the question is who's going to do the planning if the government doesn't plan you're still going to have a planned economy but the planni

the rise of china is not against the prevailing edgemont in the world america but the rise of china is we in the hedge money system itself what i mean by that is that globalization which is a western driven beat driven project. has facilitated the rise of china so china rises so much as the west allows it to rise and now the chinese stronger and feels more secure they're starting to weaken issued it's on their own they're starting to try to create a consumption class with engineering itself to become more self-sustaining so american china have a very codependent relationship in which china finances america's debt allowing america to be militaristic around the world controlling resources america consumes chinese products which are developed cheaply benefiting both china and america so they're incredibly that and in terms of finance and banking they're heavily heavily integrated but there's also it's gets a frantic relationship in a sense because they're also each other's greatest competitors and this is mostly seen in the competition for global resources and this has been outlined in st

-china relationship.ndeed, i would say our entank lment can only be understood in the context of this new and more complicated landscape. i said when i first went to china as secretary of state early in my tenure that there was an old chinese saying that you're in the same boat, you have to row in the same direction. we are in the same boat. >> host: comments last friday this leading up to the state visit of president hu jintao. let many ask you about u.s. businesses complaining that china has not opened doors enough. >> guest: there's no question that u.s. businesses at the forefront of the u.s.-china relationship especially large multinationals for two decades now have cooled quite a bit. they are concerned about china's future policies and future openness to large-scale u.s. business activity in china. they seek policies surrounding what the chinese call indigenous innovation. there's a larger state sector, a continuing weak intellectual property rights regime. you put these and regulatory issues toget

in china. so this is a new development. as ambassador hans van mentioned , investment in the infrastructure project is small and medium-sized enterprises in america's south and west will help of its economic recovery and job creation. i think this will show that china u.s., naturists are moving from the strategic macrolevel to a micro level. during this two days, apart from a dialect, china and u.s. relations, we shall also explore ways to develop convergence adventures in these communities between our two countries is certainly an important areas of clean energy. i believe this kind of discussion will not only contribute to the global effort to address the challenge of climate change, but also help promote low carbon development and energy security for respective countries. in addition, you may crave our business opportunities for two countries. china u.s. practical cooperation in clean energy surely can expand and deepen the convergence adventures and become an important part of the communiti

and china? >> i think that some of that may be somewhat dependent on what i just discussed in terms of whether there's cooperation between these countries on different aspects of bilateral and bilateral relationship -- multilateral relationships. there are challenges and things that must be worked through. i know in order to make progress on certain issues you've seen the two countries work together despite again having differences on things like continued economic growth and human rights and i think that's -- i think that's where you see the two presidents discuss tomorrow. >> will there be joint statements? >> just at the press conference. i know there will be coverage of the oval meeting. there will be the coverage of the ceo's, and coverage obviously on the arrival -- obviously there's some weather balancing concerns we're working through for tomorrow's state arrival, but obviously the press conference and the questions tomorrow. yes? >> following up on that in terms of a joint statement. sh

it's not a product of china even though china is the latest it ration of it. this is seen as a system that kind of underminds the american manufacturing base and enhances the competitive abilities of china, but in my view, it's a system essentially of capital on ideas in motion in a way that national statistics do a poor job of showing, that much of the trade deficit assumes that every dollar of trade with china is a dollar that leaves the united states and goes to china, but if 15% of that trade deficit is wal-mart sourcing its goods, a lot of that money doesn't go to china. it goes, yes, to wal-mart. it goes to people working on the port of long beach offloading the booze. it goes to where warren buffet ships the goods throughout the country. it doesn't go in all that direction. it's not even clear, in fact, where things are made, even though they are prescribed to one country or another. if ge makes a washing machine with plastics that are initially made in malaysia and circuit boards produced in taiwan and some cloth that was sourced from cambodia with ini

democracy in china. leslie, mr. robert sutter to has been a visiting professor of asian studies at the school of porn services in georgetown university since 2001. in addition to his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal agencies that lasted 33 years. we will begin with mr. larry wortzel. i'm sorry that i'm not so great with the pronunciations, but look at my name. i don't get too picky. i will be rather ruthless with the five minutes, so please confine yourself to five minutes. larry, you are recognized. thank you. >> chairman, ros-lehtinen, ranking member berman, members of the committee, thank you for the opportunity to address you today. that use at present are my own informed by my service in the u.s. army, on the u.s.-china security and review commission and my own research. in lat

sell in china. today, hu focused on greater cooperation. >> ( translated ): china-u.s. relationship is not one in which one side's gain means the other sides loss. rather it should be a relationship in which the two sides respect each other and endeavor to deepen strategic mutual trust. it should be a relationship that highlights common interests and cooperation in all fields. on wednesday, president obama raised one area of disagreement -- human rights-- and hu acknowledged china has more work to do. today, white house press secretary robert gibbs said the u.s. wants chinese actions to match those words, but he welcomed hu's statement. >> i think you would all have to strain your recent memory to find a leader from china traveling outside his country, or in, after meeting with the president on number of occasions making such a frank admission of improvement that needed to happen in country of china on human rights. >> brown: as he wound up his washington visit today, hu called for both sides to foc

china just is not claims against the other nations in the south china sea, china feels the south china sea as a core interest, which it hopes to dominate. think of the south china sea as china's caribbean. in geographical terms, the south china sea is what is called a marginal fee. that is it is partly enclosed, partly open to the ocean, same as the caribbean and. a chinese official said to me, when i mention that china considers it a core national interests and this is counter to what the united states and its allies in all the other countries in the area see a. this chinese officials did to me, you americans in the 19th century and in the earliest 20th, you recognize the caribbean was an international waterway, but you also made it clear that you intended to dominate. why should we chinese act any differently towards the south china sea than you americans due to the caribbean -- due to the caribbean? said the south china sea is a coming issue. it's an issue that's going to be -- that has a great future in the headline, as much as the persian gulf has had in the last few decades. so l

the south china sea. china japan and shipping.and variety of other things so this summit in a way follows on from from all of those events and it's really an opportunity for president obama and president hu to sit down and to talk about the future of the u.s. and china relationship not sort of promising anything or are offering up the hope of a major sort of did it were a little like a major communique that would that will really offer a breakthrough on some of the core disagreements but really to try to lay the groundwork for for you know for the relationship to be more predictable and to have fewer surprise us maybe to manage the tensions over the next year or two when you talk just through some of the tensions this of really dominated the friendship in recent years that both the u.s. president and asian talent said that america and china have an enormous stake in each other's success but it is the u.s. really it's in this sense of beijing and vice versa during this this is. what i think the visit the visit went quite well given

china's business group, lenovo, group and hire. question, china's raid surplus with the u.s. was $275 billion. so how significant, mort, is this bundle of deals yielding $45 billion? >> well it's still $45 billion, which as we see, that ain't change. it's a significant amount, but the real advantage that we are gonna have to build on is not low-cost manufacturing because we're never going to be able to compete not only with china but a whole series of companies to compete with us because they have much lower costs. we have to find a way to keep the people who have the great technological skills in our graduate schools who get to be m.a.s and ph.ds in this country. instead, we are allowing very few of them to stay. we're forcing them to go abroad, even those who want to stay. they now compete with us. in the computer industry, which was an american industry born and bred, we have 160,000 people who work here in the computer industry and 1.5 million work in asia manufacturing the goods. this is the problem that we have. we cannot compete on a price basis. >> what about the mani

has facilitated the rise of china so china rises so much as the west allows it to rise by now that china is stronger and feels more secure they're starting to weaken issued it's on their own they're starting to try to create a consumption class with engineering itself become more sense of steam so american journal had a very codependent relationship in which china finances america's debt allowing america to be militaristic around the world controlling resources america consumes chinese products which are developed cheaply benefiting both china and america so they're incredibly dependent in terms of finance and banking they're heavily heavily integrated but there's also it's schizophrenia relationship in a sense because they're also each other's greatest competitors and this is mostly seen in the competition for global resources and this has been outlined in strategy papers in america since the early ninety's where the aim is to prevent the rise of the power by controlling world resources by the u.s. death toll comes under scrutiny in the kaiser report that they all ought to be as max and

need to be done in china in terms of human rights. [speaking chinese] >> we will continue our efforts to improve the lives of the chinese people and we will continue our efforts to promote democracy and the rule of law and our country. at the same time, we are willing to continue to have exchanges and dialogue with other countries in terms of human rights and we are also willing to learn from each other in terms of the good practices. [speaking chinese] [speaking chinese] >> [english translation] china is willing to engage in dialogue with the united states on the principle of non- interference in each other's internal affairs. we will be able to further increase our mutual understanding, reduce our disagreements, and expand our common ground. >> speaking chinese] >> speaking chinese] >> as to who is attending the dinner, that is a question best answered by president obama. >> you said the inmates to be further adjustment in the exchange rate. to what extent is the depression of the chinese currency affect your ability to grow jobs in

and some in china worry that the united states is bent on containing china's rise and con training china'sism. we reject those views. in the 21st century, it does not make sense to apply zero-sum 19th century theories of how major powers interact. we are moving through uncharted territory. we need new ways of understanding the shifting dynamics of the international landscape. a landscape marked by emerging centers of influence, but also by nontraditional, even nonstate actors and the unprecedented challenges and opportunities created by globalization. this is a fact that we believe is especially applicable to the u.s.-china relationship. our engagement, indeed, i would say our entanglement can only be understood in the context of this new and more complicated landscape. i said when i first went to china as secretary of state early in my tenure that there was an old chinese saying that you are in the same boat, you have to row in the same direction. we are in the same boat. and we will either row in the same direction or we will unfortunately, cause turmoil and whirlpool that is will impact

japan and china. japan will continue to exert its control over the senkaku islands. >> reporter: he also referred to economic relations between the two countries. >> translator: it is vital for japan and china to build a win-win relationship. we can do this by advancing discussions on free trade agreements and by further boosting trade. >> maehara said he expects he and prime minister naoto kan will visit china in 2011 and chinese leaders will also come to japan. >>> south korea confirmed its first bird flu cases in chickens and ducks in more than two and a half years. the foreign ministry says the virulent h5n1 strain of avian influenza was discovered on friday at two poultry farms in the southern part of the country. local authorities have destroyed 7,000 chickens and 10,000 ducks. they have called more than 90,000 chickens at a nearby farm to prevent the flu from spreading. the transport of chickens and ducks has been band within areas of a 10 kilometers radius of the outbreaks. early in 2010 south

firms made $50 billion in capital investments and that china -- in china." democrat glenn, good morning. caller: i want to respond to china owning so much of our debt. ben bernanke has done it two rounds of quantitative easing over the last two years. we have are the money from china, $2 trillion. how are we paying for the war in afghanistan? we are borrowing from china. they know that and they are laughing. they are looking at five years ahead and we're looking to the next election. we need to be careful, and robert gates needs to address the issue of what types of military equipment they are looking at. ge is allowing their technology to be used in china to build aircraft engines. they are going to build their own international company. this does not bode well for the united states. we need to employ our richest nation and the will to preserve democracy. communism rules china. we must be very alert about that. host: we believe that their. james mann? guest: i will make a point in general about the economic relationship. president obama is going to meet thi

now in china clearly china is a human rights offender of course but the u.s. works with a lot of countries that are human rights offenders and so why is it that with china they tend to make this the sticking point well i think it's just for show it's just talk and you know our foreign policy really is annoying to towards human rights at all i mean look at them care about human rights duress where we supported the government there last year we don't care what he would writes in haiti where our government right now is trying to tell them who their election should be you know so i don't think and the chinese don't believe it either in fact the chinese actually put out a human rights report on the united states in response to our human rights report. and it's very interesting because in the last few years they've added a section which is called the violation of human rights in other countries where they count you know the hundreds of thousands of people killed in iraq for example as human rights violations committed by the united states and that's why i think the

because in china, inside china, the investors, they have enough money. they don't face some difficulties about, you know, the shortage of liquidity, so they just want to put the money here, but not a deposit. they just want to buy some property. personally, i'm chinese. i have to say that chinese individuals, they haven't been internationalized. most investors, they are selfish about profit. i think for every country investors almost the same, but we need to communicate to each other. while i think that, you know, chinese economy is still going to continue the high level economic growth and and also the investments will expand continuously to east asia countries, especially japan, korea, and other asean countries, i think, basically, this is good news for our east asian countries regionally. but i have to say we need to create some architecture and also we need to do more effort to create a win-win gain. >> that was ke long, a specialist at the research institute. investment from china is expected to grow over the years. japan faces challenges in drawing

not just our toys in the bag made in china but the image and everything else culture coming from china. or others china elicits feelings of inferiority according to the pew research center forty seven percent of americans think china is the world's leading economic power only thirty one percent think america. that's certainly the opinion among students at millinocket school in maine which will welcome paying chinese students to close its budget gap next year i think the chinese are going to be total shock i think about high tech in a way more advanced than us like ten times more money in like in a better society and then you look at a similar way poor and. as hu jintao tours the u.s. capital american officials are eager to quell fears about what a rising china could mean for the world's only superpower still some analysts say that the united states should be focusing on what it can learn from china rather than merely containing it china knows how to develop it they're doing it we're spending boring and consuming rather than saving and investing for the future a sentiment echoed by many