the china money report and collins welcome back to the kaiser report. thanks max going to be bad all right dan collins' economist magazine says the u.s. china relations well defined global politics and twenty thirteen where do you think the relations are going hare well yeah i saw that piece. pretty much agree with that but i think go subplot to the piece that was really about china japan turns over two thousand and thirteen two thousand and twelve we saw massive changes here in china you know not far from where i live here earlier was a panasonic factory burned down as of thousands of chinese hit the street although not on a second dan hold on a second what he said that a panasonic factory was burnt down i don't see that the news what's going on there . oh i'm actually going to try to marry border ordered. yeah the battery was burned down here in studio a little suburb of shanghai a little so over twelve million people. there's a japanese three year the entire japanese restaurant store with all of the windows broken oh i mean it was really bad and it w

oh max you haven't checked out of china motor report or are boarded up. yeah there's a battery was burned down here in studio a little suburb of shanghai here little sort of people. there's a japanese three year the entire japanese restaurant store a lot of the windows broken oh i mean it was really bad and it was a day with reported in the major media about the protests but i don't think outside china people really under and how bad it really was i mean he had there were many reports of even local chinese people here be dragged out of their japanese cars and beaten and that's what's led to seventy percent decline in japanese personal china and they're not coming back when we have a currency war as some describe it it looks like it's heating up to a ground war a hot war and especially with this china japan conflict which is seems to be ask a lady and japan of course is got a new leader and they have committed themselves to crunching and crashing and destroying their currency the yen as an attempt to export their way back into fiscal and monetary and econo

yeah this is the the china ad story is really interesting issue it's not getting too much press but china has basically replaced the west in africa they have built so many hydro power projects a lot of rail if you ask anybody in africa leadership or african themselves africa themselves they are very happy with what's going on with the china african relationship the synergy synergies there are so good you know africa has resources china needs resources ever been needs consumer products but they need sewer products it chinese price points not western price points so chinese consumer goods are huge you know a hit into africa so the synergies of their china import export bank is now funding african projects to the tune of twice what the world bank is so basically in effect a few weeks ago african leaders warner to the west that you're on the verge of being marginalized completely in africa i think this is what might be triggering these potential troop. deployments in africa is that we have no other of card to play here our factors are gone we don't make anything anymore no one in africa wants

in the east china sea. japan controls the territory but china and taiwan claims it. he said china and japan differ on the matter and it's important to resolve tissue through dialogue. he said facing up to history will lead to a better future. some experts on japan/china relations say the chinese leaders comments are too vague. we spoke with a professor to teaches international relations in kyoto. >> translator: the chinese government hopes that japan will head in the same direction as china and take meaningful steps to restore and improve bilateral ties. >>> some experts on japan-china relations say the chinese leader's comments are too vague. >>> the letter described the two countries as having one of the most important bilateral relationships. he said that he wrote he hopes to promote strategic ties that benefit both sides. he described his talks as an important meeting. he said xi clarified the direction the two countries should take to ensure a prosperous future. >> translator: the chinese government ho

is no purely private media in china. chinese media are influenced by the government to a certain extent. however, it is incorrect to judge that all chinese media are pro-government. we never pick up either government or public opinions. we are trying to find a well-balanced denominator based on various opinions from any field. >> hu says staff at "the global times" listen carefully to public opinion. they exchange views with readers using the chinese social networking site wabo. he says his readers often disagree with his newspaper's reports. >> translator: people can now openly express their opinions in china. our daily and other newspapers tend to pick up more public opinion. i believe the chinese political leaders won't be able to determine diplomatic policies by themselves once they listen to civilian voices. china's diplomacy must reflect what the people think. if japan makes provocative statements or actions, anti-japanese public opinion will also affect chinese policies on japan. >> hu and staff at "the global tim

it is a symbol of china's growing naval ambitions. all of this is making china's neighbors nervous. some of them are turning to washington for support. what is clear is that the south china sea will be one of the main theaters where chinese and american interests abroad up against each other. some are worried about american intentions in these waters. it does not like washington butting into what it considers its own backyard. >> we will be watching that more closely. he is at a naval base in san diego having just returned to a trip from the pacific. how urgent do they think this is? >> and an interesting point there. martin was talking about the chinese aircraft carrier. the u.s. actually has nine. they did have 11. one is being decommissioned and the other is being repaired. it takes a very long time to build those aircraft carriers, years. the u.s. is keeping a close eye on china. 60% of the navy assets would be deployed to the pacific by 2020. that is a shift from 50% at the moment. the navy destroyer is returning home from a seven-month deployment. the crew were talking about h

in the east china sea. japan controls the territory but china and taiwan claims it. he said china and japan differ on the matter and it's important to resolve tissue through dialogue. he said facing up to history will lead to a better future. some experts on japan/china relations say the chinese leaders comments are too vague. we spoke with a professor to teaches international relations in kyoto. >> translator: the chinese government hopes that japan will head in the same direction as china and take meaningful steps to restore and improve bilateral ties. >>> some experts on japan-china relations say the chinese le leader's comments are too vague. we spoke to a man who teaches international relations in kyoto. >> it's too ambiguous what they have in mind. if they stop sending ships or aircraft to our territory, probably it should be a good sign. but it doesn't say that specifically in such an ambiguous statement. we need more better environment to be able to talk more frankly, but the point is that this will

that china is asking the u.n. convention to basically sustained the philippines as the sole beneficiary of this area around its 200 nautical miles shoreline. >> more clashes and more protests. why is it becoming contentious these days? >> this is just one of the issues chine is having to deal with. there is a water claim on many areas. you mention some islands in japan. there are islands that said in the middle of the south china sea. these sit in what seemed to be reached and abundant maritime areas. there is a lot of fish to be had and a lot of natural gas reserves believed to be sitting under the seabed in those areas. there is international trade that cuts across these waters. it is a matter of freedom of navigation. many of these countries do not want china to be in sole control of these trade routes. >> troops have retaken two seven shall towns in their fight in the north and now back in ands,.handn h >> the rebels fled on sunday leaving the troops to retake the town. >> it is reassuring with the help of the

tends to support china. as an example, in the same senkaku dispute, it calls on taiwan to cooperate with china encountering japan. as for coverage of the protests in china over newspaper cens censorsh censorship, it's not extensive. earlier this month taiwanese demonstrators lobbied in central taip taipei, protesting against censorship by chinese interests. it was organized by largest opposition bloc, the progressive party. members want taiwan to have a separate identity from china. some protesters carried a banner stating the group must go. about 90,000 people protested. many expressed concern about the future of taiwan's media. >> translator: there should be no media monopoly. it restricts diversity of opinion. >> translator: we have to be wary of china's ambitions for our economy and freedom of speech. i find that reprehensible. >> reporter: and the president says taiwan is improving with economic ties with mainland china. this is evident in the tourism business. last year over 2 million chinese travelers

." >>> people living in parts of china know the air they've struggled to breathe lately has been bad, even hazardous. now, chinese authorities have enhanced their system to give citizens a better idea of just how bad things are and how they should do to respond. they've created a higher smog alert to track the serious air pollution that plagues the country. the amount of fine particulate matter in the air has been high the last month across inland china. an increasing number of chinese are suffering from respiratory problems, so national meteorological center officials decided to add a third level to their two-level smog alert. the highest warning now advises people to stay indoors. >> translator: i can't stand it anymore. i want to leave this place. >> translator: it's the worst i've ever seen. the regime of old is gone forever. >> people have also turned to the chinese social networking site weibow to complain. some blame the government growth policies for causing the polution. others have expressed themselves in song. ♪ ♪ ♪ >> china's air pollution is believed to be making its way

china mobile is the largest telecom company in china. apple does not have a relationship with them right mow. because of that, people are hoping that he and the company who, of course, has other executives, will be able to somehow broker some sort of deal, if not on this trip, at some point this year in order to get access to the 700 million people and people are saying, this is going to be an amazing catalyst for the stock. >> yeah. we'll have to see how they do it. eunice, thanks for this for now. sales are going up in china, but their market share is slipping from four to six. it's before the latest phone large. why are they losing market share? what do they need to do? >> it's great to be here, ross. apple has doubled sales in 2012. they hit about 22 billion in sales in 2012. china has become their second largest market. but apple is underperforming the market share. they've dropped from fourth to six in smartphones in the last year. it's come down to this. they've doubled their number of stores to only eight in china which is only o

that you seem to be because china itself has got massive problems it has just tipped. the scales where you have more people now living in the citizen china than living in the countryside it's cult. it's beginning to have problems of workforce in some places it's got to huge massive corruption and you've got hu jintao who just left the presidency of the country who left with two point seven billion dollars which he acquired god knows how and and you got this tease in various regional places which all you do held by the communist party of people who are making huge fortunes at that level for their own families so what i'm saying is that i'm not sure that the growth of china is still going to go on like that and i also think the ruling party in china has got the major problem that they do not know how to take a decision so they bounce back a decision from regional local to regional to national level and something the answer noel says lot back to them and the whole country is sort of teacher ing happening with the proceeds from foreign trade and they know perfectly well th

about china's growing military progress. well that's an interesting question because i think what we can see here with this strategy of the shift towards the asia pacific and then suddenly this report saying that now the u.s. arms contractors are going to be gaining billions of dollars in contracts from this shift what we can see is really just a return to a very old imperial strategy to building a bogeyman in order to then create the sales to to combat those boogeymen so it's a very old strategy it was identified by name by president eisenhower in his farewell address in one nine hundred sixty when he talked about the military industrial complex and we here we are half a century later with the exact same strategy at play and before it was the communists then there was the terrorist threat and now there's china and that threat so i don't know if it's a question of a real existential threat that china is posing here so much as a chance for contractors associated with the u.s. government to make billions of dollars that you me

but now china is slowing and is struggling to make a profit. >> the slowdown in china's economy means there is too much

but now china is slowing and is struggling to make a profit. >> the slowdown in china's economy means there is too much iron and steel being produced. they have been told to cut production, but it is not allowed to cut large numbers of jobs to save money. >> it is china's allow, giant state firms still dominating -- it is china's dilemma. giant state firms still dominates the economy. where will the jobs come from? >> it is like deep winter for the whole industry. it may last another five years. to get through, we need to reform and diversify. >> despite the problems at its biggest employer, this city is one of the fastest-growing parts of china china's relentless drive to organize has reached these cities. it seems this is a construction site. the chinese know about this building spree cannot go on forever. to replace the grimy old ways, they are encouraging spotless new industry. innovation and high technology. and out what the city craves. here, they make screens for mobile phones. the hires go and higher-paying jobs. what china's future looks like. >> in china is producing on a ma

for china and for the chinese, the new administration, if you like, in china. how they want to see that happen. it's not about getting 2013 growth to be fantastic. it's to get the next 20 years of growth to be fantastic and sustainable and not create any bubbles in the way that we saw in response to the financial crisis. bubbles are created there. >> so here is the big question. is china growing too quickly? are policymakers potentially going to lean against this? >> i guess you have to start looking back at the property sector and looking at inflation all the time. if you start to see signs that these things are beginning to merge up particularly higher, then yeah, i guess that probably is the risk. our own house forecast is stronger growth than you mentioned. we've got 9% for 2013. >> 9%? >> which is pretty goy. >> that's extraordinary. 9%. >> we're growing at 2% quarter on quarter. it will get you there nicely. >> maybe that's why because, you know, if you look at the australia dollar today selling off, maybe there's a sense in markets that, in fact, with gr

china is financing it. it will cost around $94 million. last summer chinese authorities announced that over the next three years, they will spend $20 billion on all the projects. that's double what they spent over the past three years. >> translator: we can't leave everything up to the government. we need to work with the private and nonprofit sectors to expand this program as much as possible. >> reporter: japan's strategy benefits japanese companies. this man works for a motorcycle maker that installs the water purification system. they're working to cut the african market because jica provided research costs and they're able to keep the company's costs down. furthermore, he can build a collection with a local which is a big benefit. his company has viewed this service to promote they're strategy. they hope this will result in more bike sales. >> translator: we want to use japanese government programs infe effectively. i think it's best for everyone. it's a win-win situation, really. >> translator: japan's smaller companies have fine tec

tackling markets like china.ou may not have the same type of consumer that you do over here in the united states that's willing to pay several hundred dollars for a phone, especially if you believe what jon fortt is saying where he's saying they may not be willing to pay the kind of subsidies that folks have gotten used to here in the states. >> china mobile has something to gain for a deal because iphone subscribers are known to be the most valuable for a telecom so, you know, china mobile risks some consumers in china flocking to, you know, the other carriers that carry the iphone. >> well, if we see no deal, let's say apple fails to win a deal, what would that mean for competitors? i mean, how important is this given the fact that so many technology companies are betting on this enormous population in china and throughout asia? >> it would be a huge loss for apple. i mean, they are already seeing subscriber share for the iphone in china go down to companies like samsung and lenovo so this would be a pretty big

china and taiwan claim the senkaku islands. china's state media discussed maritime policies. the head of the state oceanic administration said his office will assume greater responsibility for maintaining the country's maritime interests. the participants decided to order regular patrols around the islands they call dalew. japan nationalized them in september. china has been sending ships to the area ever since. china's long-time territorial disputes with other countries. the chief cabinet secretary said japan cannot accept china's decision. the islands are inherently japanese territory. he says that's been shown through history and international law. he said the government will continue air and sea surveillance to protect areas around the islands. japan maintains an air defense idtificaon zonoverhe east china sea just outside the air space. aircraft are required to notify the authorities if they plan to fly inside the zone. defense officials say at least ten chinese military approached the area on thursday. some of the planes entered the zone but they didn't fly into japanes

sea china and japan are vying for paul in the disputed territory and it's drawing. that are quickly coming to the forefront of the race that's got more on the matter though with all that added to the age a pan base news website that's a call that the drugs are in cheap and acquiring fleets of them will cost an arm and a leg up both nations ready for the expense of this potential arms race i think they are preparing to to be ready to commit more more resources to the military expenditures and they're getting ready to do that even as we speak and i think we see really the start of a new normal here in east asia as unfortunately i think tension military tensions are going to lead to increasing military expenditures on both sides and we already see that with japan coming out this week announcing the defense ministry announcing an extra one hundred billion yen in spending for the two thousand and thirteen budget for the defense ministry and still japan is only spending about one percent of its g.d.p. on defense so there's a lot of room for growth and i think that's exact

he's planning policies to expand china's defense capabilities. other plans to scrap defense guidelines endorsed by the former government in 2010. ministry officials have constructed a budget fiscal plan for 2013. they are looking for rise of about 100 billion yen or about $1.1 billion. leaders expected to use part of the funds to increase surveillance around the songuku islands in the east china sea. chinese government ships have repeatedly entered japanese waters since japan's government bought the islands from a private owner last september. abe's cabinet members will consider increasing the number of personnel in the south defense forces. >>> the pentagon announced a $1.2 billion deal to sell spy planes to seoul. an editorial in the newspaper criticized the plan to sell four unmanned global hawks. the drones can fly nonstop for more than 24 hours. they can identify objects the size of a golf ball from an altitude of 20,000 meters. the editorial says the u.s. is advancing a reckless and hostile policy. it says north korea attends to stand up to

in the east china sea. japan controls the territory but china and taiwan claims it. he said china and japan differ on the matter and it's important to resolve tissue through dialogue. he said facing up to history will lead to a better future. some experts on japan/china relations say the chinese leaders comments are too vague. we spoke with a professor to teaches international relations in kyoto. >> it's too ambiguous what they have in mind. if they stop sending ships or aircraft to our territory, probably it should be a good sign. but it doesn't say that specifically in such an ambiguous statement. we need more better environment to be able to talk more frankly, but the point is that this will not be built in a day. mutual trust, we need something of mutual trust to discuss more details of the relationship. so probably we should continue exchanging some words of goodwill, this kind of words of goodwill so that we can eventually lessen the psychological barriers of difficulties we might have between the two

do his students buy his china story? >> there is a bubble so that's >> reporter: consider the coming catastrophe of the one-child policy. >> the social security programs and how the government is sort of going to fund this aging population. >> reporter: of course, not everyone at yale believes that china's headed for a fall. >> if you're looking for a crash landing in china, a slowdown that really puts the economy and its supply chain through the windshield. it's not going to happen. >> reporter: steven roach, longtime economist for the morgan stanley investment bank, spent ten years in china. he teaches several courses on the chinese economy at yale. >> look, china is a high growth and the fast pace focused on exports and investment deliver beyond anyone's wildest expectations including the chinese. >> reporter: but a slowdown doesn't sound the death knell for growth, says roach, just a very deliberate shifting of the gears. look at the latest five-year plan, enacted in 2011. >> it's redirecting the mix of economic grow

of course, china is a hot topic.lly, this is, i think, the most important and critical period of time in chinese history. we do look forward to our new generation of state leaders can move this country forward to be more open, democratic, and giving people more choices and opportunities. >> but now you do read mixed messages all the time, so sometimes i'm confused myself. >> do you think that we will see a more open china? >> i think so. >> someone was telling me about the equivalent of twitter, that's a social media in china. is that making a difference? >> definitely. i think technology is providing the largest public arena for honoring chinese people to give them a voice. so i think, you know, when people are talking about where china will go, i think there's only one sensible orientation, which is to be more open and democratic. >> now, you have how many follow followers? >> i have 45 million. i try to -- try to make some good changes. >> people comment about social media allowing people to let off steam. is it d

he sees massive potential in china's huge market. >> translator: if japan detached itself from china, its economy would falter. that would be bad. and it would be the same for china, too. i don't think the anti-japanese sentiments are a hurdle that can't be overcome. >> reporter: last year he opened a food processing plant in shanghai. it supplies preparing ingredients for restaurants in china. his aim is to provide backup service until the companies established themselves. he gets many visits from managers of japanese companies who are planning to open branches in china. they are confident that their secret recipes will be secure with him. >> translator: it's not easy to find a company with facilities like this. on many levels this really helps and supports our business. >> reporter: hygiene and safety are major concerns for japanese companies entering the chinese market. he sometimes takes clients aren't markets to help them understand their ingredients better. >> translator: taking on the chinese market, the hurdles are high and hard. but i think the challenge is worth it. >> repor

he sees massive potential in china's huge market. >> translator: if japan detached itself from china, its economy would falter. that would be bad. and it would be the same for china, too. i don't think the anti-japanese sentiments are a hurdle that can't be overcome. >> reporter: last year he opened a food processing plant in shanghai. it supplies preparing ingredients for restaurants in china. his aim is to provide backup service until the companies established themselves. he gets many visits from managers of japanese companies who are planning to open branches in china. they are confident that their secret recipes will be secure with him. >> translator: it's not easy to find a company with facilities like this. on many levels this really helps and supports our business. >> reporter: hygiene and safety are major concerns for japanese companies entering the chinese market. he sometimes takes clients aren't markets to help them understand their ingredients better. >> translator: taking on the chinese market, the hurdles are high and hard. but i think the challenge is worth it. >> repor

well that's not the i don't believe that china is in tension i think china has. been. asking japan to recognize and negotiate rather than rushing ratcheting up the tension of course japan and inviting electing is not going to help because he's very well known ha och in this particular situation i think the saddest part is that the jat japanese people most of the japanese people truly do not understand and understand that they were be. the perpetrators of all atrocious acts of war two and these are the reasons you know instead the japanese government has been very successful in portraying japan as the victim of war two rather than the perpetrator of all of the aggressor being the aggressor and the u.s. for its own strategic reason you view japan as to prefer an ally and that's what's called contin agree this friction but i'm not sure that i think cooler heads will will come and not go to war over these little specks of violence certainly china has never been. the aggressor in terms of in terms of these disputes perceval from subject george through founder and former man

the officials also agree to continue patrols in the south china sea where china is engaged in similar island disputes with the philippines, vietnam and other countries. >>> japanese officials say more than ten chinese planes, including military aircraft, approached japan's air defense identification zone over the east china sea on thursday. aircraft flying inside the zone are required to notify japanese authorities of their flight plans. some of the planes entered the zone, prompting the scrambling of air force defense force fighter jets. the which i needs planes left the zone without entering airspace. >>> eric schmidt has called on north korea to allow its citizens to use the internet and connect with the outside world. schmidt spoke to reporters in beijing on thursday after a four-day visit to pyongyang with bill richardson. he said their visit was private. but he pointed out that the internet access in the north is limited to government, military and university officials. >> the government has to do something. they have to make it possible for people to use the internet, which the

china produces and uses half of the world's supply. stupid is used to generate electricity -- most of it is used to generate electricity. consumption shot up by almost 10% in a year. this place has been called china's most polluted town. it is a dirty, grimy business -- >> it is a dirty, grimy business. consumption has tripled in little over a decade. with demand still rising, there is little time to waste in china's coal capital. it falls on the shoulders of these men to keep china's economic engine on track. in norma's, coal-fired power plants dominate the skyline ,ere -- in norma's -- enormous coal-fired power plants dominate the skyline here. the coal trucks are filling up every minute. it will be burned to produce electricity. increasingly, it is coming at a huge cost. china burns almost as much coal as the rest of the world combined. the cities are choking on hazardous smoke. many in beijing say this winter's pollution has been the worst they can remember. >> we have to change our ways. the pollution caused by coal is simply to -

china and taiwan claim it. defense ministery spokespersons say 160 scramble missions were ordered against chinese planes during the nine-month period through december. that's compared to 156 during a 12-month period through last march. the scrambles increased sharply after japan nationalized the senkaku islands in september. about 57% of them happened from october to december. china's information gathering military planes have been increasingly active around the islands, which are in the east china sea. the country's state oceanic administration is also dispatching aircraft and surveillance vessels to the area. >>> japanese prosecutors have questioned two former executives of tokyo electric power company about the 2011 nuclear accident at the fukushima daiichi power plant. sources told nhk that the two are tepco's former chairman and ex-president. prosecutors are believed to have asked them to explain what plans tepco made to protect against a massive earthquake and tsunami such as the one which hit the plant i

including china. the politburo in china promised economic reform.kup in growth. but do these factors equal a positive investment case for china? economists have been divided. >> we're going to see a decent recovery in china. -- 8.6% for this year, not as strong as it was prefinancial crisis, but doing a lot better. that compares with 7.8% last year. anyone who's connected with china's going to do well which includes many of the countries which are linked to china in asia. >> there's a clear roadmap for economic and reform in china. that's the five-year plan that was promulgated over a year ago. the question, will the new leadership put this into practice. if it does, there's every reason for, it not just short term but medium-term optimism. >> it will be difficult for us to continue to have that double digit growth rates for good reasons. the world economy is slowing down, and in -- domestically, consumption is not up to the level that is satisfactory for us to achieve those levels. >> views on china. maria, of course, with us for the week, as well

a hostile relationship with china. when we return, i'll give you my own memo to the president. >>> we've heard from senior isurprise...it's eating less. to losing weight. i'm hungry just thinking about it. thank goodness for new slimful. one delicious, 90-calorie slimful and a glass of water, like before dinner, helps keep me satisfied for hours. so instead of this much, i only need this much. and slimful tastso good... i don't even miss dessert. slimful and a glass of water... eating less is a beautiful thing. >>> we've heard from senior statesmen and women on what president obama needs to do to have a successful second term. and a successful legacy. here are some of my own thoughts. most presidents get just a couple of lines in history. >> we face common difficulties. >> fdr revived the country after the great depression and one world war ii. >> its purpose is not to punish. >> lyndon johnson created the great society. >> and escalated the war in vietnam. the first line of president obama's legacy has already been wr

. >> well, let me start just a little before that, namely with my birth which was in china of missionary parents, so in a way you can almost say that this book was in my jeans because here i was in your toured in a christian home but we were the only westerners in the town and all of my contacts with china east and of course their religions were around me and a lot of folk religion, so one can say that this might be seen as the blossoming of the way that i came in to the world. >> what part of china? >> inland, rural, 70 miles from shanghai. >> what time period are we talking about? >> you know, being chinese in my formation, we look on age as honor, so i'm proud to say that i was born 76 years ago i'm 76 years convenientable. >> and who i long did you grow up in china. >> i was 17 when i came to this country. >> so that's formative. let's talk a little bit about the impact of the modern world on the traditional chinese religious systems when you were growing up. did you see the challenges to those religious systems at that time or was it too early? >> no, we were -- well, it was too ear