man: china has changed.'s one of the most exciting places to be doing business in the world right now. narrator: these workers make almost half a million shoes a month, but nike could have these shoes made anywhere in the wld. why did they choose to make them here? the answer lies in a mix of local and global factors. in southern china,d near the capital, guangzhou, and about 100 kilometers from hong kong. and the proximity of hong kong is the key to massive foreign investment throughout guangdong province. people who work in the world economy, who work in the global trading system, trust hong kong. they know what to expect there. they know they're going to have certain guarantees if they invest money, and this is what is really driving this thing. it's that... it's that proximity to a system that they know and trust and feel very comfortable working in. narrator: the guangdong factory where du neng ji works is owned by a taiwanese company and operated jointly by taiwanese and chinese management. and when th

china aid mission is to promote the establishment of a loving and just civil society in china that abides by the rule of law. in pursuit of this mission and out of a profound respect for gao zhisheng and to support his work, china aid has spared no effort in launching a worldwide campaign aiming at winning gao's release. over the past five years, we have expanded huge manpower and financial resources in a mobilizing effort in this regard. as a very small ngo, we are limited in what we can do, but we know that our efforts have some value in the same way that those voices against the slavery before the american civil war eventually led to the full awakening of the same, of the forces of justice. three years ago, we set up the free gao zhisheng website, called freegao.com, to draw the attention to gao's plight and to launch a worldwide petition on his behalf. and so far, we have collected over 150,000 real-name signatures from 196 countries. and i printed -- we printed out the signatures today, and we want to give to cecc as a record. these names, these voices, these people spoke up. from su

china, cheap labor. now, the great thing about china is the government officials in china know very well that they need to fundamentally transform their economic system in order to continue to succeed over time. that's great. they've diagnosed the problem. that doesn't mean they can necessarily actually implement. when i think about china we've for 34 years they've had on average 10% plus state-directed growth. they've got a big car with a very, very powerful engine going really fast down a straight road and the problem is coming up on the road there's a big curve. but we've never seen steering from china, right? and we don't know if they're going to be successful. i happen to think that yum brands-- i'm not shilling for these guys-- i think they've done one of the most fantastic jobs of any u.s. firm in terms of building a u.s. brand across china. for many of the reasons david mentioned. but i also think they've taken a massive bet, a massive long-term bet on a country that has by far greater volatility

as he wrote in his book "a china more just," "behind each case in china are systemic problems." and from the problems mr. gao's faced, the utter disregard for the world law by his government and the communist party, we see why our nation faces so many systemic problems with china today. mr. gao's case and the cases he worked on show us how easy it is for chinese officials to cheat, to bend the rules, to game the system. they show us how easy it is for china to ignore labor laws and environmental standards, raw materials, manipulate its currency. they tell us, this the brazenly tell us and sell us with the help of some of our own companies, i might add, in this country, toxic toys, tainted pet food, consumer products made by overworked and underpaid workers. and while i and others in our government are doing what we can to ensure the safety and health of our citizens and a fair trading relationship with china, we know that we can't do it alone. we need brave citizens like the men each of you are married to, to defend their rights to make sure they have a fair living wage, their f

china produces more than 90% of the world's rare earths. the materials are used in high-tech products. the u.s. is preparing to resume its own production. the three parties plan to negotiate in china with accordance with the wto. if they cannot resolve the dispute, they will ask the wto officials to step in with advice. u.s. president obama said he will take a firm stance toward china. >> we prefer dialogue. that is especially true when it comes to key trading partners like china. when it is necessary, i will take action if our workers and our businesses are being subjected to unfair practices. >> chinese foreign ministry spokesperson defended his government's position. he said china's policy to control the exports is aimed at protecting the resources and environment. >> translator: it's true that china is taking measures to restrict exports of rare earth metals, but they are consistent with the wto rule. the accusation that china has an effective monopoly on the market is false. >> the case highlights the need for diversifying suppliers th

it's from china. and the last three years all we ever heard from the insiders so anxious to make themselves sound so smart has been risk on, risk off. i want to throttle these guys. now i say welcome to my world. welcome to the new world. it's usa on, china off. frankly, i like this world a heck of a lot better. i hope you do too. how long can we really depend on the lex luther of the global economy, the communist party that rules the people's republic of china? what a pleasure it is to see the market actually discern between the stocks that count on china and the ones that count on america. ever since we became a sick economy back in 2007 our market has been relying on chinese growth, but now that the chinese slowing albeit at a decent pace, superman is avoiding the kryptonite of companies that need china and embracing stocks that depend on the lead-lined united states. i don't think i've ever seen the america on/china off trade as stark as it was today. china has got that pneumonia. i don't know. co

these days what happens in china stays in china. today we saw the quintessential america on stocks blossom. the s&p futures were trying to let 1,000 flowers wilt. take the banks. you aren't going to see a sun trust or wells fargo, huntington bank corp. trying to crash the shanghai or beijing markets. east doesn't meet west in that group to drudge up the old latroy ad campaign. so the banks faired terrifically all day. how about the restaurants? they don't serve panera's 480-calorie asian chicken salad in prc, so pa n panera was lead shielded. you can't find a chili's in china or the olive garden. the parent company both edged up nicely. and as much as the chinese want to shop at a home depot or lowe's or costco, these are american plays. they have overseas exposure, but just as a stock like cummins trades off of china, costco trades off the usa. how about amazon? $6.81. american as apple pie. although, of course, anybody who makes apple pie would be destroyed by amazon in the end. this is a market where the negatives are sequestered

i'm covering the china shorts. i was short. i can be short the pure china plays. wanted to rotate in to u.s. cyclicals. i reject the notion we can decouple. i don't believe a name like caterpillar, sold on the close. >> basically added to the shorts. cutting to the chase here, adding to the caterpillar short. >> correct. an important point, an em selling intense in the month of march is a bit overdone and now time to sell the u.s. i don't believe a decoupling. i don't believe that the united states can sail through unscathed with europe probably in recession and with china slowing significantly. >> all right. talk to you soon. thank you for your realtime straight. >> thank you. >>> mcdonald's ceo jim skinner to retire. the stock is up more than 200% since taking over. the coo will take the chief's seat. can he generate the same type of growth? ask the manager director at jeffries. welcome to the show. >> thank you. >> good afternoon. >> the stock has done well and has the appearance of having run out of gas a bit. >> yeah. i do think the trends are normalizing. i

that relationship carried our china and u.s. china relationship forward. in fact rogers played i think a fairly important role and his advice was listened to carefully by kissinger and nixon and so forth when talking about how to frame these issues for the public and for the congress. rogers was kind of resonate rightist on the delegation. i think he was personally humiliated by being left out of the meeting with mao. he made a point of calling on him secretly. partly to i think a swage this humiliation, but partly to find out whether there was a split in the delegation. whether the kinds of beings that rogers and marshall have raised meant that the delegation was divided and that this whole thing would disintegrate. rogers i'm sure satisfied them on this score. he was a grown up gent and he did not have the role in the making of foreign policy that kissinger did. he was a get explainer and presenter and a team player. ultimately opening up with china to the outside world. could it happen? >> on their end, i think the public was way ahead of nixon and the

so if china were in violation of the rules, china would have been urged to correct but china did not. but recently we have seen that the u.s. congress passed a bill that basically enables the u.s. to launch counter vailing duty investigations on nonmarket economies. and also traceability was given to 2006 or even before. and also, the exporters, rather the importers will have to bear the burden of evidence, proof of evidence. so i think the recent movement at the u.s. congress is not in consistency with u.s. laws and it's not in line with w.t.o. rules. so china is making a case to the w.t.o. and china did win the case at the w.t.o. so i hope that the trade enforcement authority could correct its mistake and be -- your second question is about china's reform is not deep enough. right? >> the report made mention of very comprehensive point regarding china's reform. so i fully support and agree with the points mentioned. so i wonder whether you could be more specific. for example, the world bank has made a target for china to reform its state-owned enterprise sector. so all these reforms

the president of china, mr. hu jintao, visited america.president of this country, mr. biden, visited china in august. this was a very important visit. there is another next week. we saw last year a record growth of our people to people exchange. according to that temporary statistic, in the first nine months of last year, 1.0 7 million chinese tourists visited this country, the biggest increase of 27.7%. more than 2 million american people visited china, which means on average, every day, more than 9000 people are crossing the pacific. nowadays, about 160,000 chinese students are studying here. you have more than 20,000 american boys and girls studying in china. we saw a new record of our bilateral trade. last year, america experted $167.70 billion to china, up by 19%. that makes china and america each other's second-largest trading partner. the state of california placed a large role in this relationship with china. the state of california experted $10.50 million to china, an increase of 19%, making california the largest exporter to chin

observers say china will keep beefing up its military might, but china will be asked to act more responsiblya major nation by the international community and to disclose more information on its defense. yokomoto there with a report on china. >>> north korea organized a massive rally based on accusations that south korea defamed its new leader, kim jong-un and his late father, kim jong-il. the rally took place in a square in central pyongyang on sunday. it was a response to photos of the father and son with threatening slogans posted at a military unit in the south. north korea's chief of staff, ri yong ho, read a statement that the military will wage what it calls a sacred war against the south. citizens and soldiers who filled the square chanted that they will become guns and bombs to protect the new leader. observers say the north korean leadership is trying to tighten its grip ahead of the 100th anniversary of the birth of the country's founder, kim il-sung, on april 15th. >>> japan's emperor is back at the palace after spending 16 days in the hospital. minimum february, he had heart by p

i think, we were speaking about china, our relationship with china and our trade relationship with china is extremely important. let's not forget that united kingdom invests 140 times the amount of china in the united states. i don't think most people know that. and the u.k. is a key ally across the globe in afghanistan, in our efforts in libya and syria, around the global, in the middle east. so i think the nature and the trappings of the visit are appropriate given dined of relationship we have with great bit tan. >> not everybody gets to watch basketball with the president. >> i think it's reflective of the kind of relationship we've had with the united kingdom and previous presidents have had with previous prime ministers. it's the nature of the relationship that i think is reflected by the itinerary that's been developed for this trip. i don't think it's a surprise to anyone that this administration wants to continue to build on that very longstanding, very special relationship. >> do you forgive him for -- >> bill plante, cbs news senior white house correspondent. by the way, there

china and the sudan. first china where there has been the firing of a very important political figure. we talk to richard mcgregor of "the financial times" and damien ma of the youra-- your asia group. >> to put political context, let's remember many of the top leaders don't like him as a politician precisely because of his western style charisma, that rubbed a lot of people the wrong way. and i think he was in some sense banished out of chongqing from beijing where he was a finance minister. he tried to make a name for himself doing all these red songs, maoist cultural revolutionary shenanigans that r i think, disturned the top leadership at some point. >> rose: and then there's the sudan where george clooney and john prendergast recently returned from south sudan. they testified before congress in washington and met with the president and the secretary of state. >> we were the u.n. the day that the south announced before the referendum they announced if there is a vote for independence for the south, we

/china relationship forward. rogers comes across as kind of a zeroid in this combination of personalities. but, in fact, rogers played, i think, a fairly important role in that he was -- his advice was listened to very carefully by kissinger and nixon and so forth, when talking about how to frame these issues for the public and for the congress. rogers was kind of the resident rightist on the delegation. i think he was personally humiliated by being left out of the meeting with mao. but zhou enlai made a point of calling on him secretly during the trip, partly to, i think, assuage some of this humiliation but also to find out whether there really was a split in the u.s. delegation, whether the kind of objections that rogers and marshall green had raised meant that the delegation was divided and that this whole thing was going to disintegrate as soon as we got back to the united states. and rogers satisfied him on this score. rogers was a thoroughly grown-up gent. and he did not have the role in the making of fore

of course, the catholic bishops in china and their protestant house leaders in china should know this administration failed them. the dalai lama ought to know this administration failed them. 11 -- 11 buddhist monks and nuns have set themselves aflame. i want to bring it back to this and i did not know you had made a request. i would like to ask both of the wives if they would say publicly, i see the media here looking, but what would you say because there is still an opportunity to meet after the vice president from china leaves. what would you say if you had an opportunity to meet with president obama? and shame on them both if they do not meet. shame on them both if they do not meet! you know that president reagan would have met with you and you know president clinton would have met with you. you know president bush would have met with you. you know president jimmy carter would have met with you. shame on them if they do. maybe they won't. this may be the only opportunity. what would both of the wives want to say if they were talking to president obama and vice president bush? [ sp

the china-korea -- china-korea-japan fta was also concluded recently and when recently the president lee visited china, he forced a consensus with the chinese leader that the korean side will launch its internal recollect fiction procedures and as far as those domestic procedures are completed, the bilateral negotiations can take off. we hope that sometime later this year we will be able to officially launch the negotiations on the tri-party fta. all the three countries support this fta initiative. and our attorneys are working at this moment. i believe their discussions, their preparation will score a very good result. and this triparty fta plus the three separate ftas between china, japan and korea, we'll see acceleration of the entire process of east asia integration. and talking about this issue i want to share with you the general position of the government. china supports the multilateral system featuring the leadership of the world treaty organization and the wto process is the main way to realize what international trades liberalization. at the same time, regional trade arran

china is open and china's export to europe is increasing. so we are ever the view that the eurozone and the eu will be able to overcome their difficulties, but it takes time. we're confident about the prospect, and we are not only helping the esfs and the ems, esm, we are also participating in other mechanisms. we hope that the eu will be able to take austerity measures at the same time come up with ways to stimulate its economy. so we encourage trade and investment with europe, and that's why imports and exports between china and europe and also to where investment including chinese investment in europe, greenfield and merges and acquisitions have both seen increases. so this is a testimony of china's -- the quality of chinese people. we honor our words, and, also, this suts that suggests that the trade between europe and china at the end of last year was about $567 billion u.s., and we are the surplus side. china is the top -- europe is china's top trading partner, and also the top source of imports for china. so the prosperity of europe a

at its head is china's largest cityshanghai.ere, we ere its historical geography as a strategic natural port sometimes occupied by colonial rulers. more recently, market reforms and foreign investment helped create a global business center here. now, rapid economic growth has re-shaped the city's urban geography. shanghai-- world mega-city... home to 17illion people, and by some counts, e most denselyopulated place on ear. it's now the economic capitala and point of contact for much foreign trade. shanghai is a center of research, development and higher education. most new chinese cars are now made here. migrants from the interior flock to make new lives here. but the surge in growth is relatively recent. until 1991, shanghai was stymied. why was it held back, and how did it boom? some of the answers may be found in china's historical geography, which colors its outlook toward foreigners. for centuries, the threat came over land, from the north and west. mongols and manchus frequently raided, and often ruled, chinese society. mo

>> newland, in china, yes. also in other countries. >> reporter: newland develops software, chances are whether they are aware of it or not, people in china are using newland-based products every day. now she's branching out, doing deals internationally and opening offices in the u.s. and europe. she sees herself not just as a businesswoman but an ambassador for her country. >> translator: at the beginning, our technology company's target market was china. but later we found we should develop our overseas market, our business partners are surprised about china's development nowadays. >> reporter: you have very interesting friends. it doesn't hurt either to have friends in high places. crystal wang not only knows china's president hu jintao but is on first name basis with his likely successor xi jinping. >> he's very kind. >> translator: vice president is a very kind person. i'm a businesswoman and he's a high-ranking official. i should have felt the status gap between us but i never did. >> reporter: as governo

china's coming it's going to swallow us all because on a comparison basis compared to china for example when i first read there were nine hundred seventy when they had absolutely nothing of course it's very different china is a manufacturing company today and benefiting from manufacturing and if you look back in history in one thousand nine hundred ninety eight hundred ten of the probably the brits the english were the most prosperous nation in the world certainly per capita all on the back of manufacturing so the industrial revolution on the back of coal nine hundred england was two percent of the world's population producing forty percent of the world's trade think about that america also grew hugely on the back of manufacturing so manufacturing is what really leads to prosperity and the western world has swung away from manufacturing into service industries and that is as also they have huge dollars of inflation. over the years i'm talking about europe and america chinese china is going through its industrial revolution equivalent doing fantastically well but also feeling the beginni

northwest china is home to many muslims.ith a population of 80,000, the largest ethnic minority in lanzhou are called hui. throughout china today, there are 55 official ethnic minorities. of these, ten are muslim. the largest of these are hui. ( man delivering sermon ) narrator: although the hui have their own autonomous region in ningxia, other autonomous regions like xizang, otibet, speak distinct languages. many in xinjiang, like the uighurs, speak turkic languages. many of these muslims feel oppressed by china for cultural and economic reasons. some seek a breakaway state of east turkistan. some have used violence, and the chinese government trie. hui are loyal chinese and are found throughout china. they speak the dominantanguages of thelaces where they live. now we getnto the issue of race and ethnicity. many people, uh, believe of tthat, uh, these are...e. this is a group of people that is really of han chinese race but islamic religion. the hui themselves don't see it that way. they see themselves as the descendants

so that's where you see the reaction to the china -- the china news coming out today, down 21,265. shanghai down two-thirds of 1%. australia, only 0.25% lower today. that's a fairly muted response to that headline, that gdp number from china down there in australia today. now, we also had concerns about greek ability, charles was talking about, to sign off from the private investors with the debt restructuring. that's not helping sentiment either. oil is also the focus. president obama is scheduled to rate the israeli prime minister, ben min netanyahu to talk about the iranian nuclear program. a lot of eyes on the oil market. quickly, charles, traders in hong kong, poor babies, they had half an hour shaved off their lunch break today, the index extending its trading day to 5.5 hours over two sessions on monday. they have to make due with an hour to get their sandwiches done, charles. very, very sad day for the hong kong stock market. >> i think it's all important to get you away from the knee-jerk reactions. this is a very bad move, indeed. civilization is surely coming to an end.

involved, get china buying the oil. they -- choose to buy the oil, that wound will be healed between two countries because the money will pay off in the level of living. you understand? >> but china is prepared to buy the oil. the question is can they get the two countries to work together to pump the oil and pipeline the oil? that's the problem. so it's a different issue. china will buy the oil from any country that will sell it to them. that's never an issue for china. >> the question is can you get -- [overlapping speakers] >> get them to reconcile? when they see the dollar signs flapping they plight want to do no china's money can buy oil from all around the world. >> is this proposal unrealistic or without merit? >> it's a proposal to i think it will have any real fech? no, i do not. >> exit question, clooney sat next to michelle obama the dinner. how likely has he made a first lady to a convert to his cause of having president obama dispatch a special envoy, highly probable or improbable? >> i think it basically i

china's politics will become unstable. he was supposed to join the new leadership and he belonged to the faction. so someone replacing bo must be chosen from now. the seat is open. in such a situation, the top leader, jintao is supposed to exercise leadership to settle the problem, but he has been keeping a very low profile this time, as we can see from wen's news conference. this indicates that hu is losing his power. that also applies to ping expected to be the next president of china. he could not protect bo from losing power. so his capabilities will also be questioned. china's politics is getting increasingly uncertain. >> the standing committee consists of nine members and each faction is competing to gain the majority. >> translator: yes. before bo was dismissed, five out of nine members belonged to ping's faction. there was a delicate balance. after bo's dismissal, everyone is asking who's next. there is no clear answer. if someone replacing bo is from the faction other than hu, the balance of power would be revers

walmart had 350 stores in china . china decided walmart was not playing the game right. and they made comments on to the chinese press about changes that they thought that the chinese government should make. and they look at control of inflation and they fined uni leaver 300,000 . they can do that, they can do anything. our imbalance is over 290 million a year. was last year. and so where is their mercy. >> julian who is in charge? that is a well known and proven fact. and same time tariffs that we imposed on them. i think even if there were trade wars. and so it costs $60,000. >> and it is a two-way treat. let me finish my point, johnathon. >> they chet. and while some consumers like that, because we get solar panels at a less expensive rate. china is trying to corner the market . what congress is doing with a modest tariff is trying to stop them from cornering the markets. >> so bad, tracey, to be honest with you. that's why there were calls for 20 or 30 percent on the tariffs because of what julian pointed out. the power china has economically over the united states h

i was covering china. and people at home were eating it up because this was the other side of the moon suddenly being exposed to american curiosities, something that -- and then finally there was the whole spectacle of this manipulated scene, which i could get above and write about, making fun even of cronkite and barbara walters and company, so that i had a lot of witty and sarcastic material as well to go with the very heavy diplomacy. it was a great spectacle and a great joy. of course, i was writing with a fury that nixon had held us to one seat. we wanted help. our deadline was such that i had to file by breakfast in beijing. which meant i had to sit up all night writing and all day covering. there was no chance to sleep. it was a nightmare. and here we are. we survived. >> do you think in retrospect, we have overplayed the significance and the meaning, game-changing significance of this trip? >> in nixonian terms, yes. the back story of all this is a piece nixon and company and largely the republican

and china.nice, hefty dividend on it and you're not worrying about whether or not it's tanks are actually goods and services or goods that people in the u.s. are going to be buying. >> pete? >> i tend to be with her. we've been talking in the break, i've been dead on the dry ships for a long time, so that's been painful along the way. but you know, this is a difficult industry to predict in any way, shape or form as far as these shippers are concerned. i'm with you, though, patty. >>> time to make a pit stop. oil has erased some of its losses in the last hour. there is word that saudi arabia will make up for any supply disruptions caused by iran. show should you play oil from here? let's bring in dan dicker, a "fast money" contributor. danny boy, what are you doing here? >> hi, michelle. the saudis have made some pretty stunning moves. first of all, quietly, they've increased their daily output to 10 million barrels a day, more than they've pumped in the last 30 years. in the last week, they've

china's lowering of growth estimate sent some indexes low. we saw a slip in stocks with heavy exposure to china's growth in japan, such as construction machinery and also the steel companies as well. we keep track of those sectors as well. on a positive note for retail sector, we were keeping track of retailing. they're going to increase overseas stores and sales and expects further, bigger portion of sales to come from its overseas operations, even than domestic operations. we'll keep track of that sector as well. switching to currency markets, yen holding a little firm this week ahead of a couple key events in europe. we have european central bank and also agree bond swap deal that will be a focus. let's look at the currency levels, you can see what we're looking at. 81.56-58. euro yen, 107.83-89. we remain in that weakening trend for the yen so far we've seen the last couple weeks. ai? >> what else can we expect as far as economic data? >> still a lot on the plate. economic data has been one of the biggest drivers for the stock markets her

the contract seemed to be signed with china for china to receive the contracts and the benefits, the financial benefits of quite honestly a lot of loss of life and blood and money from the u.s. taxpayer. and my question is if china is the one that has set themselves up to reap the wind fall and the rewards from the natural resources of afghanistan and the united states is not going to have trade tides for anything besides trinkets and rugs, why shouldn't china bear the cost of insuring the cost that they overflow the government instead of the u.s. taxpayer? >> well, it's an important question. i would not disagree with you that china ought to be asked to provide some of that support in the long term. but, of course, there are other countries that are involved ultimately in afghanistan's future and afghanistan is choosing to have relationships with them, as well. the eindian government and a strong economic interest in afghanistan but has long term ties healthy and friendly tiewise afghanistan and is offering to support the development of the afghan national security forces. i think i

your that over the next ten years that's pretty thin tosk china's cost base is rising the china is now starting things like minimum wage you have discontent you join or many villages there are riots and people on strike but we don't see it out if those towns all grown up in the same day and rebelled china would have big problems so for china the most important thing for the party is stability keeping this place stable and it's very tough and they can do it because the communist party is very very tough eastlink europe is actually a challenge should he ripping be working harder. yeah i think yes i would like to see less of this sort of benefits and. we live in the european or the west with. an age of entitlement people come out of university with my job i mean title to draw my title of this i'm entitled to benefits i've just arrived in england where all my benefits i think we have gone a little bit soft yes but is there of way of turning this whole thing back. probably not i think but the politics of the new england are trying to bring in or support they call austerity measures you see

when ever you have china, worries about china, all the material energy names are weak. pull putt up the coal stocks see here, 5, 6% declines, the standard big name, same thing with the materials stocks. very knee jerk reaction, people arguing the chinese are saying they will going to stimulate the internal economy, not necessarily bad for the material names in the long term. no decline in the dow, still moving up. >> got to call that a victory, bob, given the fact we are still holding on to many of the moves made in the last few months. get your take on the stocks today. very substantial growth out of china. that is the point and a very good point. the chinese government is going to stan talking about restricting the economy, going to stan talking about bursting the real estate bubble, they will be talking about expanding the money supply, all this are things necessary for china's long-term growth, stimulate its own internal demand, not just good for china, going to be good for global growth as well. >> we continue to hear a place to hide as the dividend player, the end

so if china were in violation of the rule, china would have been urged to correct. but china did not. but recently we have seen that the u.s. congress passed a bill that basically enables the u.s. to lodge investigations on market -- non-market economies, and also traceability was given to 2006 or even before. and, also, the exporters rather than importers, will have to bear the burden of evidence, proof of evidence. so i think the recent movement at the u.s. congress is not in consistency with u.s. laws, and it's not in line with wto rules. so china is making case to the wto, and china did win the case it's the case at the wto. so i hope that the trade enforcement authority could correct its mistake and be -- be -- your second question is about china's reform is not deepening, right? premier report, made the nation is very comprehensive point regarding china's reform. so i fully support and agree with the points he mentioned. so i wonder whether you could be more specific? for example, the world bank -- has made a target for china to reform a state-owned enterprise

china had taken some islands off the coast of china, one sits right in the wo heavily fortified, occasionally short of lobbing shells at the chinese mainland and hurling insults over loud speakers and saying awful thing about mao and so on and the chinese would retaliate. it was a very serious crisis in '54 and at the end of the '50s when the chinese government started shelling. and the relationship between taiwan and china was a dreadful one and always had the potential to flare up into a nasty war. >> you're canadian. did canada have relations with the peoples republic of china? >> we were moving to establish relations. as canadians we had to be careful about what the united states thought. it's always been very difficult for canada to take a path that is too divergent from the united states and on the whole we tend to agree with the united states, we certainly did on the cold war on major foreign policy issues, but i think we never felt committed to taiwan as the united states did and we never felt i think as viscerally anti-communist perhaps as many in the united states did and we're also

i have many friends in china. i do a lot of business with china. they can't believe what they are getting away with. china is ripping off this country, manipulating the currency. >> greta: is that any different policy, with bush 43 or the in terms of clinton? >> as far as bush is concerned, we don't have to get into that. the fact is that china is we are rebuilding china, they are taking so much money. this year they are going to make $350 billion but worse they are taking our jobs, they are manufacturing our products. what they are doing is incredible and they are doing it through brilliant manipulation of their currency. it's a very simple thing. somebody with base you can understanding of business and knowledge would be able to put an end to it so easily. they are worried that china has our debt. trillion dollars of our debt, that is such a small amount to the overall economy. we have power over them. if we stop doing business with china, china would go into a depression the likes you've never seen. so we have all the cards. they don't have the

i'm china. i agree with you, but if i was to agree to your plan, that would make my unemployment in china start to rise and i can't deal with that. you're right. you're getting screwed over. we're making you our bitch. the only way to repair it is through this preparation. you're all rational. if i agree with you, and i'm china, you create a huge unemployment problem for me that i don't know how to deal with because i'm in this crazy government. >> i understand one of the things you're saying that's so smart is you can't photo shop the communist party out of this equation. if you're dealing with anybody in china, you're dealing with the communist party. >> do we have leverage to deal with that kind of a negotiator? >> i'm not sure there's a lot we can take away. there's not a lot we can say we won't do. >> what can we give them for them to work with us? >> i say let's codevelop products. a lot of the things manufacturing in china are things that will be put in cars and trucks in the u.s. we will