-china relations. the specialists also share views on north korea policies and asia pacific security. [ applause ] >> thank you very much. i'm mike green, professor at georgetown. we had five issue papers with authors for each paper or papers on each subject from u.s. and china. we split the panels up so that this panel will address the papers on u.s. and chinese strategy and interests in the asia-pacific region. and also u.s.-china military issues. and the next panel will cover economics, global issues and politics. scott kennedy will chair that session. we had a number of participants who helped write the papers or who joined us in study groups to review the papers. so this is a representative group, it's clearly not everyone who was involved, but some of the key authors in each of the papers we're going to address in the panels, body glazer, my colleague at css, senior director of the china project will talk about the asia-pacific papers. we're going to ask the panelists not to summarize the papers

-china.relationship i say that, as someone who has spent six years in the white house, i was not in a single conversation with the president, the vice president, the national security adviser, where anybody said china split or system is a threat to american national security and we have to do everything possible to change it. never once, never even remotely close. that said, of course, we have questions and concerns about human rights in china. the clampdown on political freedoms. because that is who we are and that is a structural feature of the u.s.-china relationship. but it's very different from the kind of claims addressed in the paper. the u.s. paper took a different approach. when mike and i were working on it, we focused less on history and ideology and more on anditutions, actors, changing american perception. changing set of institutions, the fact that the executive branch appears to be playing a much more consistently active role in both formulating and implementing china policy, t

north korea, taiwan, china south china sea. in washington it's fun and exciting and engaging to talk about the cyclical issues but sometimes they don't have a long-term effect on the trajectory of the relationship in a particular what is the shape of that curve look like. this is an important distinction because when one thinks about the issue of politics in the u.s. china relationship, that is deep structure. that is something that probably is not going to change anytime soon. it's important that we not always get caught up in the day today to eights about these areas and yet focus on structural features. there's two structural features that came out of our analysis of how politics impacts the relationship the first is that it's clear that competition in the competitive aspects of the u.s. china relationship are coming forward. that's not meant to be a darker negative statement but rather statement about the balance of issues facing the u.s. china relationship on day finkelstein began to go down this pathways in his descriptio

for china in particular.we saw over the weekend, the focus on financial regulation, which may be part of why small caps sold off, that actually helps large-cap financials because it ensures the debt to gdp ratio begins to stabilize in china. sector,e cheapest likely to deliver earnings roughly in line with the overall -- x, but clay -- trading tech is delivering double the earnings growth, but for that double earnings growth, we are bar billing it over with -- overweight for tech. financials have performed in line, but we think better as it progresses. rishaad: you have to be selective here. could you make the argument that you only become selective in places where the yield curve looks like it's going to steepen? these banks can make more money in such a scenario. we basically got in asia this sort of organic, long-term growth story, which is present in india and indonesia, about issues like household formation and accredited gdp ratio rising. and koreave china where financials are trading on a discount to w

between china and india, iam relation to china?o sure. relation to china? between china and india, iam not so sure. what relation to china? between china and india, i am not so sure. what has been commented on a lot, ifind it ironic living in china, and being america, is china extending its sphere of influence into places that the us had occupied. whether it is on climate, the projection of power, through naval forces, for example, in the shipping lanes around asia, that has historically been the us protecting their shipping lanes. i find it worrisome that china is stepping into the breach. another sign of american retreating from what had been its historic duties, the role it played. while i am concerned about the decline of america diplomatically. i would not write off the us. even though it has been through economic turmoil, it has still been by far the most innovative economy on earth. as a believe in democracy, there is something inherently necessary for innovation, competition to happen, you have to have a free society this t

reform in china.obo is now dying of cancer and the circumstances of his treatment are causing international concern. the german embassy says the visit by a german doctor to treat him at this hospital in shenyang was filmed and released to the media. diplomats call that a breach trust, as backed up by angela merkel‘s spokesman. translation: i can assure you the tragic case of liu xiaobo is of great importance to the chancellor and she would hope for a sign of humanity for liu xiaobo and his family. in hong kong on monday, pro—democracy campaigners held a sit—in demonstration outside the chinese liaison office to demand the release of liu xiaobo. they say there is still time to for treatment abroad. we feel very sad and very angry and when we see such a respected intellectual like liu xiaobo is being... subjected to such degrading, inhuman treatment. that's not how they see things in china. beijing says simply it's no—one else‘s business. translation: we have answered several times. china is a country u

-china -- in the u.s.-china foreign policy-making. i totally agree of the idea of ups and downs of congressional power. we have a lot of consensus. we all agree that domestic politics is one of the most factors in u.s.-china relations and most importantly we all believe that when the two countries protocol goes are consistent, the relations, we all make significant progress. i think this is a very important consensus. some difference. personally, i think the biggest difference between the two reports is that the two sides seem to think about the word of politics in different ways and for the chinese report, we talk about politics as very big issue such as political system, ideology, or even political stability, but u.s. report make me -- give me some impression that politics is about governmental process, decision-making process, specially the key player during this process. i think just because of this difference, the chinese report has bigger political background in future of u.s.-china relations and the u.s. report talks about how

if china -- yesterday. we need to use and read if american economic tool we have right now to prevent nuclear war . getting your thoughts this morning. if you think containment is the right option, (202) 748-8000, military action, (202) 748-8001, new negotiations, (202) 748-8002, other options, (202) 748-8003. why do you support military action? caller: to have negotiations with north korea through china is like having charlie manson take care of your newborn baby. it is absolutely ludicrous. when we saw what happened to and saw howr malicious that the president of north korea is, we have to know this man is not rational. verynk we need a analytical approach, and we have to do it on our own. it is a joke to think that china has any desire to go in and stop this. to usenot have t nuclear armaments. we need to have a surgical strike with the mother of all bombs, and do it so quickly and have our soldiers on the border move out into japan so that when it is over, they can go in and pick up the pieces. theo not

if china started to behave ala teddy roosevelt nobody would say that is china being china and they will be fine. relax, let's worry about russia. it is not going to be like that. >> 00:36:40 unidentified speaker actually united states could have taken canada and was interested but he looked at that more than once her go so did the british. but they noticed what was vital and what we could adjust to they tolerated behavior that otherwise was crude and of reasonable and not fair but nevertheless they help the americans to see that american and british interest were quite a wind with that cultural similarity so therefore the u.s. is the natural supply allied for britain. even at the beginning of the war so then with the u.s. entered the war and then to be aligned with britain and then became even thicker with that naval conference americans agreed to hire of feel better with the brits. so where those interests are vital and in other areas if i am not powerful enough and it can adjust lit is to different cultures but that knowledge was elaborate a little bit also in terms of vital interest

out of china this morning.rence statement. you have this cabinet level committee with the pboc also with more teeth in enforcing the regulators. regulator,n umbrella not a super regulator, but the pboc will have more strength reining in the regulators. to hold thesent bodies accountable to identifying the risks and limiting those risks. financialing up services and the financial industry and reforms seems to have moved down the priority list. the financial system, priority number one. priority number two, preventing risks. three, deepening reform and opening up. this tells economists that renminbi reform is a slower process. right now, containing risks is number one. levels, 260% of gdp, 60% is corporate and state owned enterprises debt. they need to start deleveraging. there is concern there will be more emphasis on getting the soe 's to deleverage quicker. i want to get more wonky on the policy wording. they had stated they need to take prudent monetary policy. why is that important? they took the word neutra

china says no, thatis neighbours in debt. china says no, that is nonsense.e a revival of the ancient silk road. one final thought i leave you with is that there is a huge difference between these two, the old and the new. that one was built by traders, private merchants and grew organically over centuries. this one is the brainchild of the chinese president and is driven by the muscle and the money of the chinese state. a long journey therefore carry who spoke earlier. you're watching newsday on the bbc. still to come on the programme: why thailand's prime minister is telling dancers in some of thailand's bars to tone down their act. central london has been rocked by a series of terrorist attacks. police say there have been many casualties, and there is growing speculation that al-qaeda was responsible. germany will be the host of the 2006 world cup. they pipped the favourite, south africa, by a single vote. in south africa, the possibility of losing hadn't even been contemplated, and celebration parties planned in all the big cities were cancelled. the man

relationship with china. and our objectives in our relationship with china.resident trump understand understands some of our differences, policiwise. and that was reflected in the fact that he invited the chinese president to mar-a-lago earlier this year. worked hard in that setting to try to forge a positive working relationship with china when it comes to things like trade, when it comes to things like working with them against north korea. clearly the president felt after that meeting in the weeks following that meeting, that china didn't really follow through or deliver on some of what they accomplished in that meeting. and i think that was reflected in some of his more frustrated tweets about china and about the chinese president. so this could be viewed as a sort of reset with china. and one that is very much needed. because as much as the u.s. and china have been at odds on a number of things, there is i think a recognition on both sides that the north korea conflict can't be solved by just the u.s. alone or just china alone so they're going to be very

still a latest china pmi numbers out, ubs chief china economist.urvey, japan's tankan the highs for more than three years. we have the chief economist from credit suisse joining us from tokyo live next. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. inhaad: i am rishaad salamat hong kong. the latest business flash headlines. the fairfax media pulling out of after neither group submitted a binding offer. is proceeding with its own strategy to spin off its domain listing business by the end of the year. fairfax reporting preliminary earnings of $205 million. haidi: toshiba preparing to raise money by listing it switzerland-based energy unit. the first step towards an ipo in zÜrich may be made this week, although toshiba is still discussing whether a straight sale may be preferable. ubs is advising and talks have been held with several potential buyers, including goldman sachs. three former senior executives of tokyo electric power did not guilty to charges of negligence related to the 2011 fukushima disaster.

and china.ionship looking a bit uncertain to a more established one, president xi jinping in moscow. what is on the agenda there. north korea dominated the meeting. this is the third meeting this year. 20 time since 2013, so the agenda is to strengthen the original regionalion -- coordination with putin and push against the u.s. antimissile , which is seriously disrupting the original strategic balance. certainly a very crucial relationship there. thank you so much for that. internet users and mainland china will find it harder to get around the governments great firewall. our china technology reporter has the in following this story. i remember the days of living in beijing and relying on these vpn's. what is the story here? vpnse of the most popular sent a notice to its users it was shutting down, indicated this was because of a regulatory decision and offered to give refunds to people who want to them. this comes on the heels of a government announcement in january from the ministry of indust

and china.loomberg, clearly showing chinese steel output outpacing the world in turquoise, and the u.s. in yellow, and in white, chinese crude steel production. this is one of the key issues, but one where we won't see much movement on given that we are not acting to see capacity cutting reform out of beijing until after the 19th peoples congress. >> absolutely. china wrote a report that could is more steel and april than all the markets in the world combined. this is a broader question. china is now the second largest economy in the world, the largest exporting economy in the world, and that means it will have a higher level of responsibility in terms of how to balance global markets. is one ofquestion them, and i hope the chinese government will work closely not just unilaterally, but also multilaterally, with other countries to rebalance the steel market. unfortunately, it will be challenging in the next 5-6 months. president xi s2 focus may becally and reluctant in some ways to make any dras

against china. and i minister modi. that seems to have slipped away under president trump. this is also to do with an arms race and i think the visit of modi to israel testifies to that. to me it is another example of a populist global leader trying to humiliate millions of muslims around the world not only in his own country but in the neighbouring pakistan which he wishes to portray as the enemy within and one that threatens externally. instead of conciliation and democracy he sees the future in a constant armed struggle with his side being armed to the teeth and ready to dispatch as many muslims as possible when trouble arises. this is the israeli model and this is why modi has chosen to break decades of overt indian support for the palestinian cause and, indeed, decided to talk toafar cause and, indeed, decided to talk to a far right hawk like benjamin netanyahu. his behaviour in israel included snubbing palestinian leaders and stocking up on weapons. ifind leaders and stocking up on weapons. i

china, india, brazil, argentina. tell us how you approach china.k: wee a lot of the -- a lot of the big stocks in china are in hong kong. now they are starting to open up the asia market. that means we could get into the small and medium size companies who have exciting thing happening in that territory. i think china will become much more important going forward. maria: how much more of a portfolio do you want in china? mark: now it's 28%. i don't want it to go too much higher because we can't ignore places like india growing at a greater rate than china. and brazil is coming along, too, as a result of reforms. maria: in india you have the rule of law. it's not communist. you have got other ideas in terms of the growth story in india. mark: the reforms modi is putting in place, particularly tax reform is exciting. maria: you say the he morning markets represent 30% of the he morning market capitalization. are you worried we'll see reciprocal tax when it comes to the west. the president said for those countries who charge that kind of a fee, we'll

china blames the united states. the u.s. blames china.you are blaming one another, the one who wins and that is north korea. host: let's hear from montana. the independent line. go ahead. .aller: good morning, y'all i don't think there's any way we will solve this. china has us over a barrel on trade. it is pretty bad. if you look at the way the world is set up over there, you have china building these bases in the pacific. they are not supposed to be doing that, and everybody knows it, but they would do it anyway. they flexed their muscles at us, and we don't have an answer for them. we need them, and we know that. i think trump realize that. that's why we will not be able to do anything. yeah, everybody calls kim jung-un crazy, this guy is pretty damn smart. he has the most profanation in the world powerful nation in the world -- ofst: you raise a lot questions beyond korea, but i think everybody is stymied on the peninsula, including china. there was a point where china was an ally of north korea. those days are long since over. intern

became question president of china and it was called make china great again. contextualizing it, just as you say, from the chinese perspective from their narrative china was great forever, 5000 years. china was the dominant power in the world, i think, 5000 years but the world only included the area that they could see but still. then there was this 200 years of anomaly in which westerners came and exploited them and paralyze them and invaded them and fought wars with them and dominated them but now that is over. we are getting big and strong again ourselves back to our normal place in our normal place in the chinese narrative is at the top of the universe. china's sense of order is hierarchal dominance in which china is at the top of the pyramid and everyone else is somewhere lower in the pyramid and the principal injunction in confucian terms is no thai place. thy place is not china's place. china is at the top and everyone is adapted or just to prove that point. if they look and see what is happening and he talks to people who worship him and says were basi

and china as the u.s. sends a warship to the south china sea. the g-20 summit in hamburg, germany this week. a potential meeting between xi and putin, as well as trump and president xi jinping. this is bloomberg. ♪ >> a dark, gloomy look to the lion city this morning. you "daybreak asia" are watching "daybreak asia". let's get to first word news now. willind: philip hammond say later the government is changing its tune on brexit and use a speech to business leaders are adopting as realistic tone following the snap elections. splitns about an abrupt from europe were not be discussed. iran will sign a deal on monday to develop the roads biggest gas field in collaboration with total and china international petroleum. 51.1%, whilentrol see in pc will also have an interest, and iran, 19.9%. the trump administration is considering separating the repeal and replace component of abolishing obamacare. white house says the president wants to pass the deal soon. toldweek, mitch mcconnell the senate health care bill from consideration, facing opposition . r

that china has a different story. then it makes feelings in the u.k. after a high court failed to prosecute former prime minister tony blair over the iraq war and bring you the story from london. it's monday july thirty first forty four pm in washington d.c. i'm in touch this week and you're watching our team america and we start with russia's response to a new round of sanctions imposed by the u.s. government russian president vladimir putin has announced that the u.s. embassy will have to cut seven hundred fifty five people as a result of washington's policies artie's roman kozyrev has more on moscow's comeback. new sanctions against russia are expected to be signed by president donald trump the document approved by congress aims to target the country's lucrative energy trade with partners in europe washington claims the measures are in response to alleged election meddling well moscow has already responded to another likely round of restrictions by asking the united states to cut its diplomatic staff in russia by s

china is china.china americans who have really been here a long time who have adopted the american culture and becoming part of this multi culture and multi racial society. >> so you optimistic about the future of china? >> client will be china. it survived many major events. gone through a lot. >> funny when you say it that way, it's one of things i realize all of the countries that look at the united states transforming -- we have been here for industry centuries. >> yeah we've seen so much. >> we have been through a lot. you think we're right about you? yeah. good luck. you won't see these folks they have businesses to run. they have passions to pursue. how do they avoid trips to the post office? stamps.com mail letters, ship packages, all the services of the post office right on your computer. get a 4 week trial, plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. yeah, and i can watch thee bgame with directv now.? oh, sorry, most

or china?the 19th party congress, the announcements, policy, and so on, it looks like it will be more positive direction. more reforms and so on, so it looks like on the positive side. rishaad: when you say the u.s. is interesting, because you can confuse the two quite happily, 19th party congress, congress, and also a lack of tangible reforms or fiscal stimulus even. china is moving in the right direction in the longer term but u.s. politics is getting worse. if you look at president trump's problem with his staff and also the policy, looks like nothing has been achieved so far. i don't know. the economic front, it looks like the u.s. economy will continue to recover if you look at second-quarter gdp. it is good. wage inflation is moderate. corporate earnings are decent. there were a couple of disappointments like amazon and goode, but a lot was quite from the banking sector, so there is for the room to go up i think. arguably, clearly the trump part of the u.s. rally, the trump trade, has unr

china says the uss stethem entered its territorial waters and infringed china's sovereignty, all thispresident trump is due to speak with his chinese counterpart. iran says the french energy giant total is to sign a contract worth almost $5 billion to develop an offshore gas field. it is iran's biggest foreign deal since most economic sanctions against the country were lifted last year. 20 people are reported to have been killed in the syrian capital, damascus, by a car bomb that exploded just to the north of the old city. syrian officials say the bomber was in one of three cars that had been pursued. china's ambitious space programme has suffered a setback, after its heavy—duty carrier rocket failed less than an hour after take—off. state media said an anomaly had been detected during the flight of the long march—5. these are just a few of the millions of manny pacquiao fans in the philippines, who are probably still in shock after watching their boxing hero lose his wbo welterweight title to the australian underdog jeff horn in a match dubbed the battle of brisbane. and, in contrast

if you knew nothing about china, nothing about the kind of issues that china braces, you look at thisgest economy, an enormously powerful player, has treated an individual who is crime was six articles he put online with 1000 readers? wide is this extraordinarily strong organisation expand so much political capital on the case of just expand so much political capital on the case ofjust one man? you would conclude the rat fragility is and we are says there are cause most countries would not behave like this. censorship is also part of it. how might china react to the international condemnation that is already coming in? in terms of free trade agreement and climate change it has positive messages coming through more and more. this happened after the g20 which of the president attended. it diminishes that and an does so much of what china has been doing. thank you so much for coming in and talking to us. you're watching newsday on the bbc. still to come on the programme: we'll get the view from beijing about how the death of liu xiaobo is being seen in the country he wanted to change. al

and in china.an sell our made in the usa goods and services to china, the more jobs we create here at home. of course, it meets so many of the medes and desk needs and demands of the chinese consumer and companies of china. these are the win-win propositions we need to keep pushing or julie: what is the most successful way to push those solutions? is it just through this kind of dialogue? is it through sanctions or through tariffs and other measures? is one more successful than the other? ambassador locke: the chinese are aware that the u.s. can impose tariffs and sanctions on china. but that will only lead to a trade war. because if the president were to follow through on his promise of 55% tariffs on all chinese goods coming into the united states, there is nothing to stop china from doing the exact same thing on u.s. products going into china, whether it is boeing airplanes are soybeans or beef, medical a clinic, automobiles. that would really hurt the u.s. economy. it would raise the price of g

looking at china to try to get china to assist. mean, i feel to understand the question. -- fail to understand the question. host: freddie on the line for those that support military action -- that was freddie. now for those that support military action. caller: good morning. gotteny result we have from being in south korea is now an intercontinental ballistic missile capable of regional ask a. -- of reaching alaska. they will continue to pursue military affect. one of the only recognized states on the world whose purpose of existence is the antithesis of the united states. it hates us, which is fine. not everybody have to look america. i do and i hope most people living here do. but they just -- they do not see a way for for themselves without a nuclear weapon capable of striking us as a deterrent. the dangerous part is we have seen their willingness to backstab us and work around back channels against us. we need to go in there and prevent that from happening. host: so you are talking preemptive strikes on their nuclear facilitie

china's loan of zhaoqing. darling and mong among sweet dream comes from the global superpower with a price. needs worth paying attention when germany and china meets these days. germany is europe's undisputed leader. china's surging economic power is turning into a global political muscle. the chancellor and the president are meeting before the world's twenty biggest economies get together in berlin. once it might have been america around the table. but germany ones chinese health claims cropping up old world order destabilized by change in washington. and china once open markets to sell into. an ally that can rely on. we know we're going to see this is pioneering for our relations we are happy to note that thanks to mutual efforts on both sides. chinese german relations have reached a new phase in which we are moving on a peak level. the panda special came to britain in the nineteen seventies as china emerged from decades of isolation. ching ching and cha cha would gifts part of an effort to warm frozen relat

china wins again. almaty‘s zenkov cathedral, dosym satpaev says the nations of central asia are like billiard balls in a game between the big players, russia and china. china, i believe it will be like some threat for our independence. why? because for china, kazakhstan is not an equal partner. for china, kazakhstan only is like one of the players, in the big china political game. that game stretches far beyond these mountains. but already it's changing lives, shaping the destiny of young nations in the shadow of the chinese giant. carrie gracie, bbc news, kazakhstan. that almost it. newsnight is coming up that almost it. newsnight is coming up on bbc two. tonight, we ask how many died in a g re nfell tower tonight, we ask how many died in a grenfell tower disaster and why do so grenfell tower disaster and why do so many not believe the official figures? we also confirm the first case of cyanide poisoning amongst the survivors. join me now on bbc two. here on bbc one it's time for the news where you ar

-china relationship. china is dismayed with a recent u.s. arms deal with taiwan, u.s. sanctions on a chinese bank with alleged ties to north korea and the u.s. navy sailing through disputed waters in the south china sea claimed by china as its own. >> so we're almost in the end of the honeymoon. so they're doing things that now are getting under china's skin. so it's a combined sort of now we like you, but on the other hand now we're going to press you. and as if to say we can manipulate china into behaving the way we want to. i don't think that works too well. >> that is not the way to play china. >> i don't think so. i don't think china especially now xi jinping has to look strong, has to look consistent, has to be the man of stability. he's not going to do something that is at trump's bidding. >> reporter: china is also clear that it does not want regime change in north korea. >> the dilemma is as follows, in order for economic sanction to be able to force north korea to denuclearize, the sanction has to be so tough that it threaten the stability of the economic sys

and the council, she pointed directly to china, saying that china needs to do more as north korea's mainng up 90% of north korea's economic activity. she really pointed the finger at china. i think there when she said they would stop trade with those that engage in business with north korea, i think she was really referring to the chinese, there. heavy rain and overflowing rivers in the southern japanese island of kyushu have forced almost 400,000 people to leave their homes. a rare weather front in fukuoka prefecture, caused water surges to inundate homes and roads. forecasters have given a warning that heavy rain over the south will continue through thursday. david campanale has more. surging, foaming tides of rain are not normally seen like this in southern japan. rivers have burst their under the weight of the water and landslides and muddy rapids have caused damage to residential areas. forecasters say the brainstorm is unprecedented. translation: we are in an emergency situation, facing grave danger. i would not be surprised to hear that there is already serious damage due to lands

that's in the china daily. in the daily telegraph, a study has found smartphones have been blamed for increasing instances of head lice in school children. we are scratching our heads, aren't we? with us isjonathan charles, managing director of communications at the european bank for reconstruction and development. formerly of this parish. hello, good to see you both. good to see you to. it makes sense to start with the biggest international story of the moment. it's everywhere, you pointed out the straits times but it's on every front page and it's an intractable problem. we're seeing and all the papers go into this that once again donald trump is facing the same conundrum that every us president for the past 20 years pretty much has had to face, what do you do about the development of nuclear weapons, delivery systems, in korea. when the military solution doesn't seem obvious, when sanctions don't seem to have any impact, when it's hard to get engagement from china ina it's hard to get engagement from china i

years, but will china's infrastructure be able to keep up —— boeing ones.ill be some struggles. that is the huge issue. one of the other things boeing puts out as well as a survey of pilots, boeing estimates that china will need well over 100,000 pilots. notjust pilots. pilots are the cool job pilots. notjust pilots. pilots are the cooljob in the industry. you also need people to maintain the aircraft, so there is a lot of opportunity to employ people in the industry. there may not be enough supply of pilot's and maintenance people in china itself, especially good talent. they have to look outside of the mainland. they are indeed. there was an ad recently 4737 captains in an outlying province in china —— for 737 captains. it is a very good pay package for that kind of aircraft. you would be living in the hinterlands of china, you might be away from your family, if you are a foreign pilot. so there would be some sacrifices, but there are a lot of foreign pilots in china and emerging markets around the region. are the big question is now, of course, with all

what is your outlook on china? >> china, we are still positive.gone through a lot of different changes, but the china domestic economy has been going strong, and when we look at the trade numbers announced this week, the trade numbers have been very favorable and we have seen a substantial pickup and exportstrong demand together wie stronger domestic consumption market, which is very sizable. you can look at tencent games penetration and the potential for domestic consumption and china is still going to be able to maintain a solid growth in the foreseeable future. rishaad: norman, great having you on the program as ever. right, let's tell you what we have on the way. , talks of cuts at china's biggest producer. we look at that stock watch, next. this is bloomberg. ♪ rishaad: here we are in hong kong, 10 minutes to the start of the trading day. this is what it looks like when it comes to the pre-market auction period. futures jumping marginally higher. we are looking at al aluminume looking at chilow.lation china hong there is speculation this comp

relative terms in china. the younger chinese leaders i think by and large see north korea is a pretty ugly piece of baggage. there is a way to make a deal here. the chinese concerns we have feared american troops. we do not want to be on the river. we want to get the southern tip of the peninsula. and here is the main point for china i think. at some stage, north korea will be threatening enough that an american president will really have to consider the use of military force. and if that happens there could be chaos on the peninsula. that has to be to china's disadvantage peers are china, you can do this the easy way. to do this the hard way. >> but then you have to be able to show that you are willing to use military force or otherwise it will be, we will end up with acquiescing to the north korean nuclear threat. >> that is right. and look, if you read the media today, some academic publications in the country, people are already being prepared to accept a nuclear north korea. i will not accept a nuclear n

we at the gdp on friday and some emi's from china this morning. -- pmi from china this morning.t's hardly gone off a cliff. these are stable. i had a conversation with the hsbc finance director and that seems to be the tongue. have we passed through the eye of the storm on china in terms of renminbi? growth? of guest: what i can say is that the data so far in the first two quarters of 2017 have surprised on the upside. they have instilled caucus and in the market for both outlook alex in china. it is mounting problems with the credit bubble, but it seems the authority has been handling the situation, especially on the growth for quite smoothly. i do not know if we are past the eye of the storm because in a couple years, this double might burst and lead to something much more serious. for the next 6-9 months, i do not see china representing a .eadwind for global economy on the contrary, i think it represents a tailwind. manus: the consequence of a weaker dollar is something which pboc is going to have to deal with. the capital flows are beginning to be pulled back. they are pulli

that's kind of all went to europe do you feel like china's has your money coming in china or we're a couple of things in terms of europe in africa and china sort of the other way around because europe has been there for centuries is a clone you know power but the volume of trade between europe and africa is relatively steady and because europe is not liberalizes agricultural policy it's been difficult for africans to export more to europe than they would. as much as they would like to china and india asia more broadly we should say has been the key driver of africa's growth right not only in terms of exports of african commodities what we call the supercycle in economics was high commodities prices for africans and for latin americans and high demand from asia that was the perfect symbiosis for the last fifteen years and now of course chinese infrastructure investment into africa particularly east africa but really just six or seven countries has been very very strong huge and it's helping to create a foundation for future economic growth in a couple of countries but remember africa

policy toward china now?on pulling the bank out of the financial system, sanctions, not working with them when it comes to different systems. are these all discrete things happening, are they happening as one broader plan? gordon: last week was coordinated. you start out with prime minister modi from india coming into that was a signal to china. india has some real issues with china on the border. then you have china being dropped into the worst category into the trafficking report on tuesday. thursday you have arms sales to taiwan. sunday, you had the freedom of navigation operation in the south china sea. these things should not have happened on their own. it was president trump saying, china, you have not been able to help, you have not helped, so we will start to impose some costs. we will do it at a low level to give you some room to come back, but we can see the temperature will go up it xi jinping will be intransigent. david: let me ask you about chinese reaction to this, the meeting the president is h

china.d out to you? >> the premier is stressing very much the inclusive growth in the west. i mean, china has benefited quite a bit from globalization. the west, also, international trade. but in the west, and the united states, several european countries, the feeling is that the gross globalization has not been beneficial for all parts of population and there is roughly 30% in all countries who feel to be left behind. and those people vote in a particular way. and as we've seen in the u.s. and with brexit but also le pen in france. it is a kind of protectionism. and, china, of course, does not want u.s. to be protection is an want free trade and wto. >> i'll play the devil's advocate. donald trump says they have not been playing by the rules, living up to the wto. and i know the europeans have been critical about market assets and not upholding some of the commitments they made. i know you are in china, so no one likes to criticize. but what is your fair assessment of how china has progress

-china talks. washington slams china for its trade, both declined to comment.etty: trump tells congress to delay the repeal and replace of obamacare. yvonne: elon musk looks at passenger trips into space. he says travelers will have to be brave. this is "daybreak asia," live it from bloomberg's u.s. and asian headquarters. i am yvonne man -- i am betty liu. yvonne: and i am yvonne man. it looks like we got a little bit more drama coming out of the u.s.-china dialogue. it seems like the gloves came off in terms of the trump administration side. have to wonder what happened behind closed doors. would havehought we an action plan in the first 100 days. it was quite tense, both sides canceling their pressers. will we go through with these tariffs? what is the relationship now between xi and trump? it seemed they were getting along swimmingly well at mar-a-lago. to have another golf outing to warm up relations again. [laughter] yvonne: we thought this would be a very choreographed event, not too exciting, but we got more fireworks than expected. the pessimism in the

china wins again.ia are like billiard balls in a game between the big players, russia and china. china, i believe it will be like some threat for our independence. why? because for china, kazakhstan is not an equal partner. for china, kazakhstan only is like one of the players, in the big china political game. that game stretches far beyond these mountains. but already it's changing lives, shaping the destiny of young nations in the shadow of the chinese giant. carrie gracie, bbc news, kazakhstan. and tomorrow you can see carrie's report from poland in the next stage of her journey. you have been watching newsday. stay with us. we'll be taking you to india to look at the troubles facing its start—ups. with job cuts and difficulties getting investment, can the industry survive? and, before we go, formula one teams spent the afternoon taking over trafalgar square, here in london, showing off their cars on a specially designed course, which ran along whitehall towards the houses of parliament. the event w

a collapse of north korea and thousands of refugees from north korea going to china but china should recognize that stability in the region is good for them for trade for commerce militarily geo politically they don't want japan and south korea that are mad at north korea to be mad at china do which is the case now so you know i had china's motives right now are not only suspect but i don't think they're well thought out well you heard nikki haley today threatening more sanctions with countries that work with north korea i assume as a consumer that that would include china so what impact will more trade restrictions have on other countries. well you know that's that's an interesting idea we've never tried that but with china i think we can get adam there are a lot of chinese banks that launder money to north korea that loan money to north korea if we put sanctions on those as we did under the bush administration they did work we took a mob when there was a period of engagement i think that makes sense now other countries it's going to need a broad coalition most countries don't trade