cross talk china is number one i'm joined by you and alan in orlando he is director of the china center at roland's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua littman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-legged means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy has already surpassed the american one how do you look at it. well yes as you are saying that the most optimistic viewpoint of their time is economy may already be twenty of us and largest in the united states one so we aren't entirely sure where it is but certainly from our point of view the perspective of anyone from the united states and europe is generally a that still china is letting far behind and we think that's clearly not

aside so it would take a long time for china to become a member but china has interests in maintaining the internet internationalization of the arctic ocean and also right of passage for for for chinese ships. because of global warming and i think the northwest passage is possible. china has not won one to pay canada or the us for the use of two right so i guess we're trying to. be fair game for every ad by the and if you don't have it it doesn't harm to fly for indeed china is a growing economic superpower doing deals there obviously very lucrative but some european worried about losing more influence to china. well. the. four go include conclusion we are for europe recession and china growing least eight percent a year. china oh pace europe economically soon or later maybe sooner. global community. except. for china's economic superpower and. with china rugged and opposed to china right francis long managing director of investment firm mycenaean holdings live with us on the line from hong kong thanks for your analysis. south sudan's president says that sudan has declared war on his s

ready to be second best to china and as china becomes number one pullet demanded a change of the rules that have benefited the west for decades even centuries. the change in the sand. across china is number one i'm joined by even alone in orlando he is director of the china center at roland's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua lipman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-eyed it means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy is already surpassed the american one how do you look at it. yes so you're saying that the most optimistic viewpoint is there are bad the chinese economy may already be traders and lies and the united states won so the i'm entirely sure where it is but cert

estimate china's polar developments capability actually china has one up there was most advanced color research and development capabilities china has been investing a shooter amount of money and for a long time into this whole about among the courses i think china is actually said are very far away targets there no doubt this area is a very strategically important area and there are. a number of threats inside china very good. future development in the region. we cannot underestimate that's all right brian if you can how much do you think in china hope to achieve what if arctic ambitions. i think first of china will use always diplomatic skills to try to gain more support from from the not a country which are more friendly towards trial in this region are not a problem are another uses or china were also us is an army our each should gain the support current city but worst is you know crisis specially if for example i sir and i think china will owe you are you small fees or wells to do to gain their support in the region. right now after a gang can thanks very much indeed had to resea

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

china relations because we often hear from u.s. politicians especially in election year is very hawkish rhetoric towards china and i played one example of mitt romney saying i would label them a currency manipulator if i was in office i'm curious from your perspective you would buy businesses doing business in china that i would presume see china as an opportunity i'm curious what their perspective is from them how do they see china as an opportunity to have exactly right it's a two hundred billion dollar market for u.s. companies and u.s. products and services and we see that very clearly and a number of things are happening to try to win hands that opportunity i think what china has just done here with its currency flexibility move just right now yesterday is a very good move because i think it begins to to play down some of the political concerns about currency many companies are not as concerned about currency as i believe perhaps some politicians and some others here at home where we're jobs may or least perceived jobs have be

sea and it's leaving china on edge the u.s. and the philippines maintains that this is all simply an exercise but china sees it as a provocation this has tension mounts between the philippines and china over disputed territory at the drills are happening here on the western philippine island of palauan there is a standoff between the philippines and china over who has the rights to the nearby waters the philippines says the area lies within their territory china claims it's theirs and there's a lot at stake the island said on what some estimate to be around fifty billion dollars worth of oil china also and territorial disputes with area in the area with indonesia taiwan and vietnam so are the military drills a sign of what's to come and will they be a step toward pushing china to a breaking point to discuss this dr paul craig roberts former reagan administration official joins us joins us now welcome paula so the u.s. and the philippines say these are only drills nothing to be alarmed over but is there more to it. of course the

he said china's enemy is pakistan's enemy. uygurs in pakistan view this with a sense of unease. >> going forward, do you think pakistan will deepen ties with china even further? >> i definitely think so. after the september 11 attacks in the united states, pakistan drew huge military and financial support from the u.s. in its fight against terrorism. but relations are deteriorating and it can't expect further u.s. help. this is one reason why china is increasingly important to pakistan. unless it improves ties with u.s., pakistan's dependence on china looks set to grow. >> thank you, hideki. nhk world's hideki yui. >>> let's now take a look at the latest market figures. >>> the elements are once again battering japanese. residents have weathered a winter of record snow and avalanches. now an intense spring storm is sweeping across the country. powerful winds have caused three deaths and injured more than 300 people. a low pressure system over the sea of japan has brought strong winds to both the west and the east of the countr

and must work with china. so even though there is a lot of tension and competition, in the end i think it is in the theater's interest, the leaders of both countries recognize that it is in their interest to contain the pressures for competition particularly for distressed. think the most critical single problem we now refer to as his term strategic distress. it is we are not sure of chinese military intentions and they are not sure about american. we hear the chinese leaders say they want a peaceful rise, but then in the south china sea, there's many patrol boats that are coming in conflict with the patrol boats from other countries. so i think it is going to take up a lot of determination on the part of a lot of theaters and much more open discussion of military goals and much more transparency in military preparedness on both sides in order to achieve the kind of cooperation and peaceful future that we all want. >> china faces a lot of challenges today, not just internationally. many of them challenges crea

china is developing an aircraft carrier. china is developing nuclear submarines. so the overall chinese military development is a source of tremendous concern to india. the relations between india and china, political, diplomatic, economic, has improved over the last eight or ten years. trade is booming. it's about $50 billion or $60 billion. there's a lot of political and diplomat exchange. at the same time, there is an underlying tension between india and china because of the outstanding border dispute. india and china have a border dispute which is one of the longest running disputes in the world. india is very concerned about pakistan and china's close military and nuclear relationship. because both are old friends and there is a lot of military and nuclear cooperation between the two sides. so the increasing concern of indian security planners is a two-front collaboration between pakistan and china. >> that was rahul redi in new delhi. >>> india's launch triggered reaction from china's foreign ministry. a spokesperson is urging friendship and cooperation in a

shuyang grows many of china's trees. nursery owner arrives in style. >> translator: this is my nursery. as far as you can see. it's 40 hectares big. >> reporter: he used to produce a kind of box wood for hedges. now it is mainly cherry trees. in recent years, the price has risen sharply. last year, he netted about $150,000 in profits. this year he expects to sell 80,000 young cherry trees, 60% more than last year. it is no wonder that he can afford three cars and three phones. >> translator: cherry trees have given me a better life. and filled my wallet. >> reporter: other cities like guangzhou and chongqing have joined shanghai in holding similar festivals. and cherry blossoms are now become china's new symbol of spring. mari yamada, nhk world, shanghai. >>> most of the rain is gone in central tokyo. but more precipitation south of japan. mai shoji with the details. mai? >> yes, gene, that's right. in southeastern china, as we speak, stormy weather is targeting the area. and we're talking about very heavy rain accumulat

well a few reasons the first reason is that china and iceland have been negotiating a potential free trade agreements and sue thousand and six. after iceland's banking crisis in late two thousand and eight then it became possible that she was interested in joining the european union which would of course negate any potential free trade agreement with china. the iceland e.u. negotiations are now in doubt and china is very interested in perhaps reviving free trade talks so that's one major reason second though is that china has really begun to identify iceland as a very important potential arctic partner iceland is not only a very. centrally important part economically but it's also very geographically significant because of its location in the arctic. well it's also interesting you know last year a chinese tycoon property tycoon tried to buy a large swathe of land and the north of the country for a tourism project but that deal was blogged down by the government of iceland after three years china might use the as a trance arctic shipping port so this official trip now to iceland chang

strengthening ties with china as a source for weapons. in fact, china has become pakistan's number one supplier in recent years. the two countries' growing ties goend the energy sector. china is expected to build new nuclear power plants in pakistan. last year, a pakistani cabinet member made remarks suggesting the country's -- to china. he said china's enemy is pakistan's enemy. uighurs in pakistan view this with a sense of unease. after the september 11th attacks in the united states, pakistan drew huge military and financial support from the u.s. in its fight against terrorism. but relations deteriorating and it can't expect further u.s. help. this is one reason why china is increasingly important to pakistan. unless it improves ties with the u.s., pakistan's dependence on china looks set to grow. >> nhk world's hideki yui from islamabad. >>> heavy rain and strong winds hit japan yesterday. i was caught up in it. gleets to sayaka mori for the world weather forecast. >> good morning, catherine. sunny weather is coming back. but, yes it

well, let's go to china then. is that little glimmer in the presidential statement any real shine that china is reconsidering its stability first policy towards north korea? in other words, is it a fool's err rabd to try to secure stronger cooperation from beijing on trying to change pyongyang's behavior given the chinese security calculus just seems to be so different than ours? oar some of the other countries in the region snp any of you. >> i would note, mr. berman, that this was a presidential statement. and it's not binding. and this is what we resort to when we can't get china and russia to agree to binding language. this was a fall back position. >> all right, but -- i get you. and i mean, it's not binding. to the bigger question, is there any reason to have any hope that china is going to change its calcul calculus, that a diplomatic push on china, who's so important to doing some of the things you suggest need to be done in terms of -- or stopping what north korea gets in order to fund and implement its p

and there is a growth of christianity in china. a lot of indigenous home churches are growing up and there's a complicated relationships about, sort of, the catholic church and rome and recognizing. see, china is emerging from a kind of period of humiliation from having been dominated by colonial powers of the west. and many times they perceived religion to have been part of the bible and the canon came up the river on the gun boat. and they said, to reject the foreigner and give us our own place, then they associated religion in that kind of act of domination. so, i think that though over time, there's what they call, the three self movement where as christianity in china is quite alright as long as it's self financing, self instructing and is self governing. so that it's not is a sense an extension of foreign western power, so they are very concerned about that. but, china is loosening up and people have much more freedom to explore and read and think and discuss about the ethical issues and the principle questions of the meaning

and we way out china. the country keeps knocking on the doors of the nations who already have access to the energy rich region. a very warm welcome to you from all of us here at the moscow. the rules of formula one engines will be heard in the gulf states still shaking under civil unrest regime activists have pledged to boycott the event and step up their protests to members of the force india team have already fled the state but this after they were caught up in clashes on their way back from the track but if. reports are like libya and syria if this uprising is surprisingly alfredo. it took a car fire ahead of a major sporting event for the world to notice the flames of discord engulfing a small island nation in the persian gulf but green is suffocating in the smoke of an ongoing struggle between protesters and police the military says have been happening in a hurry for more than a year now protester say this is the longest lasting revolt in the arab spring but so far the only result from them has been a

so not only china. if you come to the western regions in dhi in a, it is true that the development, economic development in china was in the first maybe last 20 years more concentrated in the east. so now it's going accept by step to the west. >> and of course this is geographically very close to other emerging markets. russia of course and maybe potentially pakistan, central asia, as well. is that in your cites already? >> what we believe is that the plans what we have in china producing costs for dhi in a essentially. because we have a very strong demand. products are very well accepted and we have increased even market share last year. so we're in a very good track record. as a consequence, we he believe that it's important that we have this chinese plans for the chinese market. >> and 10 million mark for volkswag volkswagen. how strategic is that and how close are you? >> we have a clear vision. we want to become the most competitive common factor. so we want to have the best people. it means as wel

decoding china data. is growth north of 8% really cause for concern or should we be scooping up energy and material shares right now? we're breaking it all down with a top china expert. and selling the bank earnings. wells and jpmorgan fail to wow investors. we're looking ahead to the big reports next week from bank of america, goldman, and of course, citigroup. welcome to "the fast money halftime report." lots to trade today. let's start doing it. pete najarian, obviously, it's a down week for stocks, major averages off more than 1% or so. it's been a turbulent week at that. and even apple's down. >> right. >> maybe we're seeing some cracks in apple at this point. what are you seeing? >> i don't know that we're seeing necessarily some cracks. i just think we're in this pause stage that we've seen before in apple when we were down near the $400 level. we did get a few pullbacks underneath $400 on a couple occasions only to completely explode to the up side. so i'm not sure yet that we're seeing any cracks

we were not one to people would other countries to come the expression a strong china china is now china's maybe it's not really in a big enough to petro ocean as of now but. that will start china's premier in trying to exercise some diplomatic reach even to the arctic ocean because china great now is the second largest economy and he has a stake in just about every economic issue will for europe wallow in recession and china growing at least eight percent a year. and china outpace europe ecological is soon or later maybe sooner and i think the global community. in accepting the emergence of china as an economic superpower and we accept work with china rather than opposed to china. israel says it's not playing games with threats to attack iran the country's defense minister insists it's not just belligerent rhetoric to bully tehran into abandoning its nuclear program but israel's apparent failure to sense for accounting may suggest otherwise as pulse clear explains. the rule very family lives the missile range of gaza for years they complained to the government they had no shelter to prote

rather than our coast of china. israel says it's not playing games with its threats to attack iran the country's defense minister insists it's not just belligerent rhetoric to bully tehran into abandoning its nuclear program but israel's apparent failure to repair its citizens for retaliation may suggest other writes its policy or explains. the rule very family lives in missile range of gaza for years they complained to the government they had no shelter to protect them from because some rockets fired by hamas but disappointed in the group town wasn't a top priority for tel aviv far from it prompting yakov to eventually build a shelter himself to protect his family so we went through some very tough years we used to worry all the time every time we left the house we were in danger when we went to the store to school or to work it took a direct hit on our course house five years ago before the government finally woke up and bought him a shelter opposite the one he really built himself now across his halls close to ci

presence near china. well you know i think you know again against the backdrop that i'm setting forth here yes this is absolutely true if you look at the january twelve pentagon strategy review that was issued in january of this year you know it speaks of quote a rebalancing of u.s. military assets towards asia and it singles out china this is a reflection of the pack as i said of the growing rivalry economic and geo political between these two powers and the us and us imperialism is seeking to compensate for its declining economic strength you know by using its military advantage and what's happening now as you kind of touched on in the opening to this segment you know is very very significant the u.s. has expanded its long term presence military presence in asia of for the first time since the end of the war in vietnam that is setting up this base in australia the u.s. is seeking to strengthen its partnerships and alliances in east asia and it is what we did with the wall street journal called a few mon

from china. i don't know the exact extent of that. we have to deal with it in another context in terms of the sensitivity of that information. >> panetta said the potential threat from north korea would be increased if it had mobile capability for long-range ballistic missiles. north korean military leaders put what appeared to be a long-range ballistic missile on display. they say it's the same as a special purpose vehicle developed by a chinese company. an online version of the magazine says if the vehicle was chinese made, china may have violated u.n. sanctions. foreign ministry spokesperson said china strictly follows security council resolutions and says chinese leaders enforce laws to enforce laws against weapons of mass destructions. >>> analysts reflected for a week before putting a satellite into spate. north koreans say they finished analyzing the launch and are determined to press ahead with their aerospace program. >> north korea released a statement about the launch. the statement cr

let's talk china for a moment. china has become, in your lifetime, arguably now one of the great super powers of the world. and they may economically in the next 10 or 15 years become the number one super power in the world. what do you think of modern china and how it's changed in the time that you've been dalai lama? >> china, most populated nation. and also long history. i think really, china, chinese, i think they have a really long history of civilization, rich culture. and the richness of their food. however, in modern china, a lot of ups and downs. but i have full faith chinese people, they are hard work ing ing. so i think the last six years, i think they already tested sort of the difference of experience. i think they, modern china, they got sort of the experience in the revolution. it seems they opened their eyes. so things are changing. somehow life-long communists, so they very much keep the political power. now, that also is now changing. now prime minister quite often, i think he's meeting with cnn,

china was riding shotgun! u.s., we were in the backseat, hobbled by divided congress, dysfunctional washington. how dysfunctional? at a time when it looked like the economy might finally be able to grow on its own accord, the president and congress couldn't agree to extend the debt ceiling. we were almost the first nation in history to default on its obligations by choice, not because we couldn't pay. worst, as the fall went on and morphed into winner, our european driver lost the car, while the shotgun-riding chinese was busy shooting itself in its 2 billion feet -- 2 billion people, 2 billion feet, an arithmetic issue there. at the time, what were we doing? well, we were asleep, doing nothing. periodically waking up and asking our parents in front, are we there yet? we should be given some dvds or some ipads to keep ourselves busy. but a funny thing happened when 2012 began. we changed drivers! as our domestic data got storied, the united states has been able to seize control of the wheel. europeans, they've

the new rules china? every major decision affecting china's 1.3 billion people is made by the 25 member bureau. real power lies with its nine member standing committee. bo xilai was seen as a potentially divisive candidate for the very highest post. he made enemies. his involvement in scandals sealed his fate. >> top leaders liked bo xilai and his wife could be doing the kind of things they have been accused of, it is quite demoralizing. the second important issue is that it reveals there are revealsfissures in the top leadership. >> by coincidence, tonight, china's most senior woman politician arrived in the u.k. a state councilor. starting her visit in northern ireland, she is very unlikely to be drawn into comment on the current turmoil at home. >> motorsports governing bodies as the formula one grand prix in bahrain will go ahead as scheduled despite continuing unrest. it will saddest -- it was satisfied with the security measures in place for the event. we are joined -- they are happy with the way to

we've taken our forecasts down for china. issues in europe lead to us believe growth there will be muted, as well. how can that bring the price down, as well, if demand starts to quinn dell? >> i think really that's why you're starting to see stockpiles grow so much. on the one side on the fundamentals analysis, supplies are growing. saudis are pumping as much as they can trying to calm the markets. on the other side, the u.s. is consuming a lot less. we came down from about 21 million barrels down to about 18. and we're seeing the eu strength, as well. with china starting to see its growth starting to slow, global demand is really static. i think it will be steady unlike what other people are really saying. i think the best we can hope for is steady. it may be coming down. so we say fundamentals don't justify this price. so really we have to get through this issue of geopolitical risk and try to get to that resolution so we can once again come back to the actual supply and demand. >> and it will impact the election coming up

in china feel is targeting china itself and as a way to contain china. why don't the nations that are hosting us want to see china as their ally in the region yes i think the. the the situation of the allies in the region is becoming a bit complicated on the one hand they still want to gain the economic benefits that it could be used to gain in trading and tons of things with china but on the other hand also want to gain the support from the u.s. soledad they would north be also with lions on china and small part they are also very concerned about the growing chinese military presence as a source of rights to their own security so in this case they're going to pray to tens one if they continue to try and set with china economically and in terms of trading relationship but on the other hand they will be very welcomed the return of the u.s. in terms of military presence and also military and security collaboration with the u.s. right after a long long time so the university in hong kong thank you very much for joining us . well russia is accusing a group o

we got positive numbers out, yes, china! numbers showing real nice growth, growth so strong you could argue the possibility of a hard landing and economic crash in the prc taken oft tables. the numbers cheered me when i heard about them saturday night while attending an elk's club bash, i toasted the communists with a nice cold brewski because it looked like we could move higher monday morning thanks to china's strength. because of that good cheer, i forgot about this land mass called europe that stands between the asian book and the u.s. book. on wall street we talk about a kirch kind of book than you might read at home. i for the moment thought that the book handoff, another technical term, might somehow go from china right to the united states, not stopping in europe, do not pass go. you know what i have mean? stupid, very stupid. even when you consider how my judgment was probably a little impaired. sure enough, just as we've seen, that whole darn continent takes its cue from the weakest countries, not the strongest ones

china is developing an aircraft carrier, china is developing nuclear submarines. so the overall chinese military development is a source of tremendous concern to india. the relations between india and china of political, diplomatic and economic have improved over the last eight to ten years. trade is booming, it is about 50 or $60 billion. there's a lot of political and diplomatic exchange, but at the same time there's an underlying tension between india and china because of the outstanding border dispute. india and china have a border dispute, which is one of the longest running disputes in the world. india is very concerned about pakistan and china's close military and nuclear relationship. because both are old friends and there is a lot of military and nuclear cooperation between the two sides. so the increasing concern of indian security planners is a two-front collaboration between pakistan and china. >> that was raul bedi, a correspondent with jane's defense weekly in new delhi. >>> the reaction in china to india's missile launch was restrained. liu weimin c

the result was his book one step ahead in china which appeared in 1989. professor speed retired from teaching in 2000 and i arrived at harvard in 2007 and i am truly grateful for the mentoring and the encouragement and friendship that his offer a far more junior colleagues since his retirement, but of course defending the junior colleagues hasn't been his main focus in the years since his retirement. rather he's devoted his time to completing his book on deng xiaoping and his era. the book was recently awarded the lionel goblet prize for the contributions to international understanding to buy insurance and be the first of many awards for this extraordinary book. the masterful country inns of study chronicles the rich and intricate career from his work to 1904 of the end of the dynasty to his death. he spent almost a century of dramatic changes as of experienced war, revolution, the maoist era and finally the economic boom of opening up reform and she played a role in his nation's politics and development over the period. how does he find a way to turn chi

he goes to china often. should we be spooked by an 8% gdp number for china?n, i don't think so. 8% is a sustainable number. people just need to understand that the 10% that china has recorded real gdp for the last 20 years is history. we're not going back to 10%. but 7% or 8% is still strong. it will continue to give very nice real per capita income gains to all the chinese workers. and people ought to relax. >> don, do you think china's bottoming in the first quarter with regards to its growth rate? you have a below census outlook for the rest of the year. >> right. we've had that below census outlook for the last six months or so and still do. the consensus thinks it's first quarter down and second, third, fourth quarter up. i think it's going to be more flat. in fact, lower second quarter than first quarter. and the reason is that china's problems are not primarily cyclical. they are much more secular structural and you don't fix those problems in a month or a week or a quarter. they take years instead. >> that doesn't sound so reassuring. >> well, i think

for china's economic superpower and except work with china rather than outpost china. south sudan's president says the attacks on his state by rival dan i'm out to a declaration of war sudanese warplanes bombed a town in the south on monday killing mccloy injuring ten people thousand military say eight more bombs were dropped overnight on the president's comic comes during a visit to china to seek funding for a new oil pipeline survive its neighbor has been fierce fighting for weeks and the struggle over a border dispute which has been simmering in south sudan gained independence last twenty years ago the split decades of civil war there has to made it one. half a million lives political analysts charlie at says china has a chance to market it's. typically there is a conflict like these you know it's usually washington are you going to have problems getting in it here's a golden chance for you know asian powers emerging economies to make you know an important diplomatic intervention that will show there be another world order is changing otherwise you see leave it agai

in china, then that would be an enormous opportunity for the company. >> tom: china is now responsible for a fifth of apple's iphone sales and the so-called "halo effect"-- when iphone customers also buy apple computers-- is in full-effect in china. mac sales were up more than 60% in china. like apple, tonight's "street critique" guest sees opportunity in china. asset manager jim oberweis joins us in just a moment with a chinese mobile internet stock pick. we know the investment world is in love with apple. after all, it's hard not to notice a stock that doubles in less than two years. still, small investors do not feel as kindly towards the rest of the market. suzanne pratt tonight on the concerns of smaller investors. >> reporter: this has been a good year for financial markets. stocks are up, bonds are holding up and volatility has been limited. so how are retail investors navigating 2012? t.d. ameritrade's c.e.o. says they're still very cautious about investing their money. >> they have a memory of last year at this time when the market went up, and then things came unglued in the

is developing or china is using, how much of it was developed at home in china, how much of it was bought from europe and elsewhere, including in the united states and then how much it is just outright stolen? >> well, as the staff report -- as the staff report makes clear, once china's military modernization direct function of its economic development. today they are -- we're witnessing 9%, 10% growth, it's slowing down a little bit today, but with their economic growth they've had -- >> surpassed japan. >> surpassed japan as the second largest economy. with their economic growth, they've had more resources to spend on military modernization and their military budget, including r and d and procurements of foreign weapons systems is second in the world, it's about thrrs 160 billion estimated on an annual basis. so they have money to spend. but they also have a national commitment to move up the technology chain, to have a lot of investments in research, they require foreign companies that come in there to turn over technology. >> they have full access to all that research. >> yeah, as a c

that's incorrect in china. the chinese central bank uses reserve requirements strictly as a means of sopping up speculative inflows and outflows of capital betting on rmb. when you see them lowering reserve requirements, that means speculators are no longer buying rmb and that's likely to be weaker rather than stronger. the way you can detect softening monetary policy in china is through administrative controls, quotas for loans, restrictions on mortgage lending and the like. all of those are easing and will ease more in the coming months. you will get support from the central bank and from the restrictions on mortgages easing that should help the declining real estate prices in china. >> doc? >> john, great to have you on the show. i respect your insight on china virtually more than anyone else. i love last week that we had you and steven roach talking about china. quick question about what came out of the apple investigation more or less last week. is that something that is going to be a little bit of a setba

and he told his friend he prefer not to leave china, he prefer to stay in china. so i think if he insists on staying in china, it will be a big problem for both countries, both governments. it will say, hey, you have two choices, either set him free, or the chinese government can arrest him, which makes that a bigger problem. or for the united states government and if he refused to leave, what are they going to do. >> susan shirk, what do you think about that? us it possible for him to stay and there is there an appropriate balance that can be struck? >> you know, unless the chinese government does something very dramatic at this point to show that, you know, like firing the head of public security or undertaking some major steps forward in strengthening the legal system, i think it's pretty well impossible for them to creditably commit to protect mr. chen, his family, his associates, in a way that we would really believe. so even though he wants to stay in china and certainly if he leaves china, his will, his influence will wither away, that's what happens to all

china is the world's largest auto market. the new car sales have been slowing down amid rising fuel prices. >> we would like to be leader in electric car and we want to be at the top level in term of fuel efficiency in all of the other segments of the car market. >> toyota revealed a prototype of a new hybrid model which the company plans to produce and sell in china by 2015. china automaker byd is displaying plug in hybrid vehicles. the chinese government aims to have over 5 million ecofriendly vehicles on the roads by 2020. it plans to provide subsidies on experimental basis for buyers of ecofriendly cars. >>> baby greens are becoming popular in japan, but vegetable farmers often run into trouble trying to ship the salad leaves. different kinds of leaves grow in different season. one japanese company has overcome the problem and is expanding rapidly. nhk world has more. >> reporter: this is where baby greens grow. >> translator: the farm is run by a company in southwestern japan. it grows 15 kinds of vegetables including ga

china prides itself on continuity.t the seat of beijing's politburo, many in china thing bo xilai threatened the system that values stability above all. >> the american vice-president joe biden was asked to sum up barack obama's residency. osama bin laden is dead. another terrorist is still alive. it was good money after bad for many. for many it represents a level of federal interference. are economics editors have been -- our economics editors have been to the seat of the story. >> detroit, michigan. the american auto industry was born here, and when the financial crisis hit, and nearly died here. with general motors and chrysler and the government bailout of $80 billion. and it worked. the industry is back. on the worst day for the american economy since 1929, the recovery of the most iconic industry. how that happened it tells us a lot about how america will recover and how the rest of the world might, too. in 2009, brad thought his career at gm was over. he was laid off with thousands of others and production stop

to go to china and so iceland and china are are is a very good place to start which so iceland and china there's certainly some some possibly good prospects there in the future but let's address this issue to even get observer status on the arctic council china needs agreement from all of the member states how likely is that to happen given rather strained relations in the recent past between the asian giant and norway. norway has publicly said it's willing to continue discussions on the or sort of state status but i would suspect that the nordics iceland to denmark sweden finland and norway were because tenders in new york's new york service status of ship are trying now i would suspect the cabin russia would be much more difficult to get by you know he did mention a moment ago that iceland is a convenient first step and in relationships on this arctic i slid it's convenient for china what why why and why is a convenience how nice i think you guys are good the chinese relations are have been extremely friendly and. we don't have any problems so for friction between the two countries to

to china. gdp is made up of shipping stuff to china. one concern for investing in china is hanging onto the international property rights. we know beijing has said it will protect those rights. is that enough to appease the germans? >> with germany depending so much on china, it is also a bit of a two-sided soared. they are importing the latest machinery and all that. they have a history of importing things and then copying them after. german companies are worried about that. any steps the chinese made to make the property rights more sustainable and accountable is a big step forward, of course. >> the also know that chancellor merkel and premier jiabao will be talking about a healthy global economy. they rely on it. >> thank you very much. thank you. there are warnings that the south china sea is becoming an area that could trigger an incident that could bring china and the united states into a crisis. the number of hostile incidents in the region has increased dramatically in recent years. ou