in china says about china? >> there are different parts of this. there is the ambition to build aviation aircraft. in the last 30 years, as you well know, china has accomplished one kind of miracle. it's taken hundreds of millions of people from being peasants and making $100 a year to being factory workers and having this kind of 19th century, densian or upton sinclair factory life in china. more people than there are in the u.s., a couple of hundred million people. there are still a lot of poor people but a lot have been improved. there is a lot of concern in china whether they're hitting a wall or plateau, whether if they do more of this current model, just building things and having outsource factories, whether they're ever going to get richer than they are now or just bigger. the current 12th five-year plan, which i think i have discussed with you in the past-- has a big push for what they think of as the industries of the future-- pharmaceuticals, info tech, clean energy, and aerospace. these are the area

china and russia china relations coming up. i'm sitting down with arvind subramanian leading economist fellow at the peterson institute for international economics and the center for global development. at clips living in the shadow of china's economic dominance. chinese leader. is here really dominating i mean many in the u.s. would say that the u.s. is still the richest country in the wall that is the most powerful economy at the moment china's g.d.p. for example is smaller than that of the united states. but if you measure it in terms of power it's as big as the united states second china is the world's largest trade. tree china is a big creditor it finances the u.s. and the u.s. is a debtor so it's this combination of the size of the economy the facts a big trader and the fact that it's a creditor confers a lot of power today and over the next ten fifteen years all these numbers are going to be in china's favor so the china is going to become an even bigger economy than the u.s. and even bigger treated in the u.s. and conti

no to china china can nort assert all is so frantic aims over this off china sea and vietnam can also be packed up by the americans military power to counter china's military dominance in the region so what's going to get in return for granting access to u.s. warships. i think there should be some financial aspect involved but apart from financial aspect i believe the vietnamese and the american government should have certain agreement all on some joint oil exploration and touring and we find the repro jazz and of course they will be in having agreement on. security agreement or for the whole of solve china sea so why would smaller countries in the region be eager to give up china as a key ally and not for the u.s. instead. i think for themselves trying to see as i said is a major irritant for china and southeast asian countries and i think i would not say that this office asian countries this more powers would like to give up china but they would like to invite the united states to join in the arena so that they could have more bargaining chips against china ok we'll have to leave it

imitating china is not the best way to compete with china. and this is particularly true for energy technology subsidies as we were to get our debt under control. i have long advocated for funding efforts from conventional energy resources. this is a far more sustainable approach than the one taken by china. i hope that we continue to gain in traction in that direction. beyond spending i think we need to be careful about following china's more progressive energy policy. an example would be the three gorgeous dam. a source of renewable energy but it has displaced people from their homes and communities. chinese production for clean energy technologies has had negative impacts on their country's air and water quality. the solar panel factories don't necessarily run on solar power. but having said all that, i think we also recognize that our country's policies are not perfect either. even here at home where we have a proud history of improving environmental performance, biofuels have played a role in raising our food prices. we currently have no

and i want to emphasize, not just china. i remember in february of 2009 i was invited to a white house meeting to discuss the future of green technology in the obama administration. and there was a debate between those who in the administration who wanted to become proactive with various kinds of incentives to promote green energy and other market -- traditionally, market-oriented officials who argue that we don't want winners and lose hers, that we should rely on the market. and the point i made in that discussion was, are you kidding me? i look around the world and i see germany has a huge program subsidizing solar technology, denmark has a big program subsidizing wind powered technology and japan is doing solar and wind power and korea is doing batteries and china is doing batteries and wind power and solar. i said, that's the market. and so when you say, leave it to the market, you're saying, leave it to the tender mercies of german, japanese, norwegian, industrial policy. and so when we ask ourselves what -- is it an ap

in china so. china is going to become an even bigger economy than the u.s. and even bigger treated in the u.s. and continue to be you know financing the u.s. so that combination is what is making china very dominant let me give you one example one example so take the fact that china you know finances the u.s. right or to so much cash three point three trillion dollars worth of cash if europe gets into trouble oh no it happened which country in the world has the ability to be allowed to your the united states china because this three trillion dollars and when it has the power or that ability it can always exercise power what could be political ramifications that as far as crucial foreign policy issues for example over syria will the u.s. pay more attention to what china thinks about certain issues well if you take you down for example i think it's you know the u.s. wants china to be on its site and you know if china were to sit take north korea for example you know it's a great example you know if china were on the side of the u.s. . things would be so much e

not only china. there are a lot of these that are potentially going to affect sovereignty rights and eventually commercial competition. it's an evolving entity. it's an important entity. ten countries. 650 million people. a widely varying governmental systems among them. they have been struggling for ten years now to find rules of navigation and sovereignty to try to calm down the process in this part of the world. they issued a proclamation in '02 to lay down rules of the road and they issued another one recently. we've not been totally successful with china. we all know that. we have been attempting to develop a number of different ways to encourage china to come into the solutions process on a multilateral basis. from our office we have done the same thing with respect to the delta where china does not recognize downstream water rights from the macon river with damming that's done upstream that makes it very difficult to bring china into a multilateral solutions process and it is -- there's no pla

half of china.oday, not too heavy, though, but heavy rain will target hunon province tomorrow, as much as 100 millimeters of rain is possible over a span of 24 hours. then down toward the south, the indochina peninsula has been dealing with torrential rain, lots of floods and landslides have been occurring. unfortunately, the heaviest rain will likely continue in parts of the southern areas of thailand today. as much as 116 millimeters of rain has been already falling, however, more rain will be coming down at least for the next couple of days. temperature-wise, 35 degrees in bangkok and 32 in hong kong. reaching 33 degrees in beijing, and the same goes for shanghai. tokyo coming up 27 degrees. it will cool down to 20 degrees as we head into saturday. all right. heading over to the americas. we can see bright clouds over the plains. underneath the clouds we're seeing lots of active weather. the risk of severe weather will remain in north dakota down toward colorado. we have tornado warnings and watc

wants china to be on its side and you know if china were to sit take north korea for example you know it's a great example you know if china were on the side of the u.s. . things would be so much easier but but the fact that china has an independent view on north korea makes chinese american dealings with north korea that much more difficult in fact in my book i begin my book with a kind of fantasy scenario where i say that you know ten years from now if the united states gets into so much economic trouble right that it will have to borrow money and if only china has the money to provide the u.s. china might say well we don't like your military presence in the pacific you're naval presence and you have to you know get rid of that sort economic power can always be leveraged for political and foreign policy objectives the good things that one of the reasons not to get all four kind of anxious about this is that it is a mutually dependent relationship you know so one country doesn't want to inflict too much damage on the other because it backfires on yourself but that being said there ar

making a joke and i think china is watching germany very close you know china is maybe one of the strongest industrial nation are now in asia so they don't want to be like germany basically paying for everybody else and bankrupting themselves in the process and so i think maybe some time off is that monetary union but i do think that china realizes at some point they have got to let the dollar i mean with all the reserve and dollar and euro it is somewhat of a problem to them that we have got to let some of that fall write it off and focus more and more on that a mistake economies and the renminbi the rise of exports more difficult but that will come anyway as the best and countries are relatively low dollar and so they're focused more on the domestic economy and then some sacrifices will be made by yet no common currency so far maybe that's not going to happen ok derek if i go back to you martin brought up something that i'm beginning to hear now that you know maybe a year ago two years ago that the chinese would never write off american debt but now you know they have so many reserves and

treaty china is.

over the south china sea. this document was supposed to long ago have resolved this amongst the players in the south china sea and not one person has been able to give me a specific example as to one of these tensions or one of these disputes that's been resolved. >> with respect to the south china sea. it's for very obvious reasons. we'll have plenty of testimony that will show you the ways in which on an every day basis countless decisions are made which create rules of the road. admiral papp testifieded to that. which lay out the rules of the road which assisted and avoided conflict and dozens of examples where conflict is avoided or various thorny issues are resolved by virtue of people being at the table. we've had arms control agreements between the united states and the former soviet union and we didn't always have a resolution as a result of it but ultimately we found a forum or mechanism to try to move forward. i guess it's a fundamental belief about whether you think it's better to have some structur

our signal to china and china can nort assert all is so frantic claims over this of china sea and vietnam can also be packed up our by the americans military power to counter china's military dominance in the region the south china sea has been a very important astrological creation for number one connecting oil shipping routes from the middle east to east asia number two all saw a very important commercial shipping routes for all the east and southeast asian nations to solve china sea has been a very important irritant for china and southeast asian nations international relations for the past decade. don't forget all stories we're covering also available anytime online and his mother's that we've uploaded ready to go for you right now if you get a minute i don't see don't call it a life sentence for a russian man as that libya convicts several people for allegedly helping ex leader moammar gadhafi but the people charged insist they're working as engineers it will warm up story it's online right now. and russian billionaire tycoon mikhail prokhorov playing a big party a political one that

like no two china china can north.all is so frantic claims over this of china sea and vietnam can also be packed up of by the americans military power to counter china's military dominance in the region the south china sea has been a very important and vast raji take location for number one connecting oil shipping routes from the middle east to east asia number two a small seoul a very important commercial shipping routes for all of the east and southeast asian nations to solve china sea has been a very important irritant for china and southeast asian nations international relations for the past decades. so forget all the stories we're covering are also available anytime online here's what's uploaded and ready at r t dot com right now one sentence for a russian man as livia convicts over twenty people for allegedly helping acts leader moammar gadhafi but they insist they were working as an engineer at our t.v. dot com. the president billionaire tycoon mikhail broker was planning a big party a political one that is afte

no to china china can north assert or is so foreign to claims over this off china sea and vietnam can also be packed up by the americans military power to come to china as the military dominance in the region the south china sea has been a very important astrological creation for number one connecting all you shipping routes from the middle east to east asia number two these all saw a very important commercial shipping rules for all the east and southeast asian nations to solve china sea has been a very important irritant for china in southeast asia nations international relations for the past decades don't forget all the stories we're covering also available anytime online this is what got uploaded ready and waiting for you right now at r.t. dot com. but unfortunately he's gone for world to mr troll the sensational soviet singer of his day you tube it of twenty ten you may recall twelve million hits he's passed away and simply to charge his success online. and russian billionaire tycoon mikhail prokhorov spreading a big party a political one that is after securing six million votes i

china might say well. we don't like your military presence in the pacific your naval presence and you have to you know get rid of them so economic power can always be leveraged for political and foreign policy objectives the good thing one of the reasons not to get all four kind of anxious about this is that it is a mutually dependent relationship you know so one country doesn't want to inflict too much damage on the other because it backfires on yourself but that being said there are areas where you know some countries you know china has more power and it could use that too and i mean like for example as i said you're on north korea or iran or you know the fact it's just so much financial power and economic power can always be used for political ends but isn't that a good thing in a sense that there it restores some kind of balance when there is not just one kid on the block ruling everything but there is a kid consulting with everyone else because it is dependent on another and that's a good point but bu

us like no two china china can north. all is so frantic claims over this of china sea and vietnam can also be packed up our by the americans military power to counter china's military dominance in the region the south china sea has been a very important astrological creation for number one connecting oil shipping routes from the middle east to east asia number two a small saw a very important commercial shipping routes for all of the east and southeast asian nations the south china sea has been a very important irritant for china in southeast asian nations international relations for the past decades don't forget all the stories we're covering also there but any time online this is what got uploaded ready and waiting for you right now at the dot com. twenty ten you may recall. he passed away in. his success online. sporting a big political one that is after securing six million votes in russia's presidential election discover the details of our. protests are continuing in cairo's tahrir square as demonstrators demand the

our signal to china and china can north assert is so frantic claims over this of china sea and vietnam can also be packed up our by the americans military power to china's military dominance in the region the south china sea has been a very important task raji take location for number one connecting oil shipping routes from the middle east to east asia number two a small saw a very important commercial shipping rules for all of the east and southeast asian nations to solve china sea has been a very important irritant for china in southeast asian nations international relations for the past decades. let's check in now with danielle at the business task and traders don't want b.p. to sell its russian unit the stake in to keep the peace in the british world beats the returns of some forty billion dollars but b.p. will suffer without b.p.'s expertise most analysts and else say of the two chinese firms move closer to buying b.p. out. is in beijing with the latest. chinese companies they sign the back and also the china national offshore all corporation which are the second and third largest

>> china is spending less money in the domestic market. they're well aware that prosperity depend on selling chinese overseas. now other countries are buying fewer goods from china, the chinese are adopting a cautious outlook for their economic future. and one sign is people and the companies reining in their spending. an expert says the program also rising in relatively small domestic effort in arapid effort to get it to grow. >> one reason is there is a bigger market out there. i think if -- we have -- tried -- we have -- keep an eye on the domestic market rather than -- focus exclusively on international market -- then the situation would be different. >> so how is the chinese government responding to the economic slow down? >> well, the people's bank of china, the country central bank cut deposit rates by a quarter percent in june. the reduction is the first in years. this monetary easing as it is called is aimed at increasing the money available to chinese so they can keep spending. the bank hopes the move will ease the strain on the

that is not china and in terms -- china has a long ways to go.is there hope or can they become a reserve currency to decouple or remove themselves from the vulnerabilities of relying on other countries? yes i would say that is true. if you look at reserves, by india and brazil the economies on the emerging markets they are increasing their amount of holdings, not just in terms of reserves but in terms of the assets assess whether its gold assets or in terms of the assets around the world. i think part of that, large part of that is they don't want to rely on the imf or the u.n. for bailouts. so very significantly there is a shift away from that. i too think also there is sort of a decoupling or a schism emerging between the emerging and developing economies. we have heard of the britain banks. there is a swap that china is doing using the -- more than relying on western currency to give the dollar. i don't think that is going to happen in great extent very soon because this sort of financial infrastructure required to have currency, china is way

at the moment china's g.d.p. for example is smaller than that of the united states that's true but if you measure it in terms of parts seem power it's as big as the united states one second china is already the world's largest trade. treaty china is a net creditor to the work it finances the u.s. and the u.s. is a debtor that's today and over the next ten fifteen years all these numbers are going to go all in china's favor so the china is going to become an even bigger economy than the u.s. . we mentioned syria just now and the u.n. chief has rejected calls from syria's rebels to impart impose a no fly zone over the country to help bring the president assad that the mindful of the statement from the fighters saying they're no longer committed to the international truce plan proposed by special envoy kofi annan the rebels claim dozens of government soldiers were killed in clashes in attacks on security checkpoints over the last few days violence comes amid growing voices from the u.s. and its allies for the action

imitating china is not the best way to compete with china. this is particularly true for energy technology subsidies as we were to get our debt under control. i have long advocated for the sustainable approach. i hope that we continue to gain in traction in that direction. beyond spending, we need to be careful about following the energy policy. a source of renewable energy have displaced several million people from their homes. the solar panel factories do not run on solar power. we have a proud history of improving in burma performance. biofuels have played a role in raising our food prices. we currently have no plan for kern and disposal of our nuclear wastes and the transmission lines to connect renewable assets to the grid has resulted in some controversy. i raise these issues and not to throw cold water on enthusiasm but perhaps to provide some context and a reminder to the specific challenges that we face. it is my hope that this serves as the basis for understanding how conscious we must be about accepting some of these simple narrati