two truths teach students chinese culture and language but chinese government defector cho new orleans says they are tools for public gander and censorship on campus on the whole society it can build up friendly neta work to a charter they can influence the future generations of. the western countries political sensitive a topic has. been topics of like a falling gong democracy in the freedom human rights scene china all ban. is a charge organizers here to know what do you say about concerns about censorship and concerns about their precious institute is just an arm of the chinese government the greedy do not have the right to information of us every confidential sunstein working to be on the region between us and the chinese we have nothing to do with the chinese comments censorship. outside protesters have a different view i find it outrageous that a foreign government especially one like that i just want the most oppressive regimes in the world is dictating to study what american students are learning on campus. every university that agrees to host the confucius institute must sign

>> quite obviously i'm not chinese and can't speak for the chinese. the thank you very much for the opportunity to present some ideas that i've gathered from reading chinese analysis and talking with chinese experts. i would specifically focus on the chinese perceptions, threat perceptions and how this might be tied and how it relates to the south china sea, east china sea. i think the first point is we should look at the different levels of threat perception that we can see floating around in chinese pronouncement, that influence china's maritime behavior. i should perhaps add a disclaimer. understanding this perspective does not mean endorsing it. it just means trying to understand where the other side is coming from. i think that's very important to do. in my view, there are three important threat perceptions i mentioned that we should consider. one is the political ideological threat perception, the general one between the communist tidy and capitalist west that is seen as a challenge. the other is geostrategic, geographically determined. the thir

chinese president xi jinping announced plans to move to a more in chinese economy by lowering tariffs for automobiles and other products and enforcing the intellectual property of the firms. his remarks come after the u.s. and china announced trade measures against each other. the chinese president's remarks come courtesy of the global television network. >> [speaking chinese] >> translator: your excellency, state and governme government, organizations and investors, incumbent and incoming members, distinguished guests, ladies and gentlemen, friends today we are greeted with green mountain, gentle breeze and sunshine. indisputable season of spring we gather for the annual conference of 2018. here i want to quote the lyrics to a face on. it's been a long time since they left and i hope it will be a long time before we have to depart. [applause] succumb to such a gathering of both old and new is always a pleasant vacation and i am truly delighted. let me begin by extending on behalf of the government of people and all the distinguished guests attending the forum and to the opening of th

i have chinese authorities. now she says she was wrong and i saw that i have escaped from defeat and i was going to enjoy the freedom human rights democracy and the rule of law but i realized that they are here their people their network their paul were everything for. sure became one of china's loudest critics after witnessing the nine hundred eighty nine tiananmen square massacre where chinese leaders ordered the killing of thousands of student democracy demonstrators. who would let miss activism quickly won her international acclaim. and china's attention. she says chinese agents contacted her repeatedly. warning they were tracking her every movement. they threatened to kill her if she didn't stop criticizing china's leaders. she began getting late night visits to her home. one time once thirty i was working on my computer and i saw a car just passing by. that's ok then the car coming back and. turns in our driveway so i was very much. why the white car is a wrong here. then some days after again about two o'

this past week, chinese president xi jinping announced plans to open up the chinese economy, saying his country would significantly lower import tariffs for vehicles and other products. he also pledged to strengthen protection of intellectual property rights of foreign firms. this is courtesy of the china global television network. president xi: [speaking chinese] translator: your excellence, heads of state and government, heads of international organizations, ministers, incumbent, and incoming members of the board of directors of the forum for asia, distinguished guests, ladies and gentlemen, friends. today, it greets up with green mountains, blue ocean, gentle breeze, and warm sunshine. in this beautiful season of spring, we gather here for the forum for asia annual conference 2018. here, i want to quote the lyrics of a folk song. it's been a long time since we last met, and i hope it will be a long time before we have to depart. [applause] translator: so, such a gathering of friends today both old and new is always a pleasant occasion, and i am truly delighted. let we begin by expand

>> well i cannot speak for the chinese, i met chinese. but thank you very much for the opportunity to present some ideas that i gathered from reading chinese analysis. talking with chinese experts. i was hoping specifically to focus on chinese perceptions and how this might be tied to their deterrent. and how it relates to the east china sea. i think my first point is we should look at the different levels of their perception that we can see floating around the influence chinese maritime behavior. i should perhaps add a disclaimer understanding this perspective does not mean endorsing it. it just means trying to understand the other side and where they're coming from. i think that is very important to do. imagine there are three important perceptions i mentioned that we should consider, one is the political ideological perception. the general one between communist party and capitalist. it is seen as a challenge for the other is strategic or geographic determined. and the third one is a military technological type of threat perception. i w

the chinese pa rent potentially take years.se parent company of key safety systems provided most of the funding to acquire most of the takata operation systems. and they will have more scale now to compete with industry leaders. that story has been quite interesting. thank you. chinese ride hailing app didi chuxing — tells the bbc it'll be on the streets of mexico very soon. and while didi is best known for driving uber out of china, it'll now get another chance to go head to head with us company, this time, in america's own backyard. in his first television interview with foreign media, didi founder cheng wei told karishma vaswani how he plans to take the company global. a charm offensive to take on the world. didi chuxing is getting ready to ta ke world. didi chuxing is getting ready to take its brand overseas but it is doing this the chinese way. translation: for the last 20 years it was china who learned more from the us. in the next ten years we will ride on each other‘s successes. there is no point thinking of who will su

economy and chinese demand. see this msci world gauge relative exposure to the world index, it started falling for the end of february and is now trading relative to msci at its lowest since october. try to position yourself in a way that takes advantage of some of the better valuations but stay with from companies that might have negative exposure. >> what we are seeing is a creation of uncertainty. with the outcome of this is but the direction was pretty clear. if you have tariffs in place you look at slower global growth. that seems to be put at risk. haidi: 2017 was abnormally calm. aroundlook at moves tech, is there a fundamental shift or back toward value? tech are underweight in but we have been selling fairly steadily over the last six months. the valuations are pretty full. area where the expectation is for growth going forward. a lot of the stocks that have done well are not looking cyclical, but at the end of the data have large market shares in the sector that they are in. the valuations really don't

my concern is that as the chinese economy has developed, the chinese see themselves as a developing country intent to protect certain sectors like a developing country. yukon rightly talked about the services sector in china, which is burgeoning and potentially a huge opportunity for mac and businesses, especially as the chinese middle-class gross and i can businesses want to sell it to that market. the problem is the chinese government protects that market in a way that caps the degree of foreign involvement. financial services, health care, transportation, logistics. american businesses cannot benefit from that market. what that does is it creates the impression that the chinese are sort of using the power that the government has over the marketplace in china as a way to restrict foreign involvement. sense intes the washington that china is not playing by a fair set of rules, that the playing field is not level, and then you add on top of that issues of chinese protection of intellectual property. if you are an american company and come up with a product division or process its -- product

if you look at the chinese this is the changes to the constitution and the chinese government and the what they have done since the conclusion of the two sessions over there you see the tremendous changes that evolved about eighteen ministries or agencies about institutional reforms and also the national supervisory commission this is supra body for anti-corruption campaign all those efforts are actually a response to the public content of discontent about corruption and if you look at what china had to achieve over the past couple of years it treating the pollution issue you have to see what china has achieved basically something los angeles and the land in that case to achieve thirty percent reduction of the pollution in this densely populated area like the beijing or shanghai so that's the response from the government they are very responsive to the public concern so i would say you know the transit system is very different from the western style but it is very responsive. that we need to recognize the good things that china has done with our democratic model in terms of. cleaning

that would apply to the chinese network, chinese television network here. other chinese funded media outlets here. in terms of universities, a particular concern about institutes. they have attempted in some cases to censor it discretion on campus about sensitive issues such as taiwan or tibet. up to this point, they have not had to register and their contracts with universities are very opaque. we do not know how much money the universities are getting or the conditions. this law would attempt to help bring transparency to those agreements. >> republican line, washington state. >> good morning. the question i have has to do with chinese tariffs on american exports. prior to 2018. tariff issues have been going on in the united states since the united states existed and before the united states existed. prior to 2018, in the last two decades, what chinese tariffs have been placed on u.s. exports? >> there remain a lot of nontariff barriers and a lot of barriers through foreign investment in china. china did not enter the dubya to you until 2001 and it has be

the chinese president's remarks come courtesy of the china global television network. >> [speaking chinese] >> translator: the board of directors the distinguished guests, ladies and gentlemen, friends. the gentle breeze and form beautiful season [inaudible] here i want to quote the lyrics of the song. it's been a long time and i hope it will be a long time before we have to depart. [applause] such a gathering today with old and new is always a pleasant occasion and i am truly delighted. but we begin by expanding on behalf of the chinese government and offer a sincere welcome to all of the guests and also congratulations to the opening of the conference. since its inception with a focus on asia and a global perspecti perspective, it's gone a long way to encourage cooperation from economic globalization and announced the building of a community where they share a community of mankind with many valuable proposals it has made a great contribution. it had a major change in the board of directors. i wish to take this opportunity to express our heartfelt thanks to the outgoing members and i exte

the chinese could do the same in reverse so the chinese could say no earthmoving equipment, caterpillaring into china. this is a huge market for caterpillar and other types of machines like that. this could get quite complicated and the chinese have not yet moved against major us exports into china, like aircraft, soya beans, cars, caterpillar tractors, et cetera, so there's lots of room for this to escalate further and get very complicated. does president trump have a point when he says the us as the biggest trade deficit in the history of the world with this country, china, and obviously china doesn't allow foreign investment into their country, so, you know, could there be a bit of needling here, to the chinese potentially give in on some of these demands?” think if it was clear what the us wa nted think if it was clear what the us wanted i think it would be easier for the chinese to respond, but i think the united states has shifted the goalposts here. if you read the 301ks, the us has four complaints about what the chinese are doing, forcing the... not protecting intellectual prope

the chinese officials and chinese businesses and with that impression that i took away is the chinesegovernment to do anything legal or illegal moral or immoral or ethical or unethical to get ahead of the united states and when they do they stay there. into coin the term peaceful right in the great power which is designed to sound benign. and with the slogan peaceful ride that sounds threatening. so i'm not threatened by chinese economic growth with a peaceful free-market democracy because democracies generally do not threaten each other. and they have been lifted out of poverty and for humanity is good news, story. it is also good for the united states. and the john deere tractors the better for iowa in the national economy. unfortunately china is not interested in the level playing field. and confucius said heaven does not have two sons in the people do not have to king. and by the same token the chinese leadership does not think there is time for two great powers on this earth. you see the advantage of trade with united states but not mutually beneficial free trade in the spirit of

mary: no, the chinese will not.e this as fundamental to their role as a leader in the global economy, -- the people are behind them. as you heard, president xi does not have to run for reelection. he has quite a bit of room to let this run. betty: do you think there will be any response to trump? mary: i don't think they will respond to any kind of threat like this. i think they will respond to the actual implementation of tariffs. betty: it is going to take a while, certainly a few months for tariffs to be implemented. do they hit the right spots? the president has outlined -- are they going to be effective? mary: we have been analyzing that. they are hitting the right spots in that they are heading what we would think of as intellectual property, intensive industries. and that is where they were supposed to. , light heiserr said he was going to hit high tech. the problem with that, and is a large problem, most of the exports, two thirds, are coming from foreign investment in china. those are foxconn, samsung, etc.

that means other chinese media funded outlets here. in terms of universities, there are particular concerns about confucius institutes. they have attempted in some cases to censor discussion on campus about sensitive issues such as taiwan or tibet. but up to this point, they have not had to register. and our contracts with universities are very opaque. we don't know how much money the universities are getting and what conditions are. this law would attempt to help bring transparency to those agreements. host: from our republican line from washington state, hello. caller: good morning. the question i have today has to do with chinese tariffs on american exports prior to 2018. the tariff issue has been going on the united states ever since the united states has existed , before the united states existed. prior to 2018 in the last two decades, what chinese tariffs have been placed on u.s. exports? guest: the remain a lot of nontariff barriers and a lot of barriers to foreign investment in china. china did not enter the wto until 2001. it

attitude toward the chinese will take? -- for the chinese military?st: the chinese military has received huge increases in funding. they have posted a percent growth year on year in military -- 8% growth year on year in military funding. they have started building a second aircraft carrier. what you see is china really trying to bring their military into the 21st century so that they can fight and win a modern war. that is one thing that they have said they wish to be able to do. certainly the u.s. sees this with consternation. it's a more complex story than that. if you look at for example u.s.-china military to military relations between the two, the relationship is quite good. this is very true in particular of the navy. we are not in a cold war situation. there's a lot of dialogue between the militaries. there's a lot of understanding and i would say especially on china side that while they want to be able to fight and win a war, they don't want to get into a war with the u.s. i think the u.s. does not want to get into war with china. we are in a

has to be much more aggressive in dealing with the chinese government c.n.n. has learned that the u.s. navy is about to send a destroyer there let's go to our c.n.n. c.n.n. got exclusive access to classified u.s. surveillance flights over the islands now the threat to china is becoming big news the media is beating the drums of war as the world is being primed to regard china as a new enemy china's alarming creation of entirely new territory in the south china sea is one part of a broader military push that some fear is to challenge us dominance in the region. china is building and strips in the south china sea on disputed islands condemned by an international tribunals. this is now a flashpoint for war between china and america. what is not news is that china itself is under threat. these american bases form a joint news in circling china with missiles bombers warships all the way from a straight through the pacific to asia and beyond. i mean if you were in beijing looking out stood on the tallest building in beijing and looked out of the pacific ocean you'd

not so much when it comes to chinese equities.h banks from analystshas prompted to turn more bullish on a bonds, 1% reduction is expected to unleash 400 billion when it takes effect next week. let's pull up this chart, the yield of a 10 year has dropped to the lowest since july. let's bring in our life strategist for more. what is review on where market is headed in china and how to square with the deleveraging campaign? reporter: i think this is great news for the bond market. the bond market has been doing well even before this move, it was one of the best-performing markets this year and this will provide a further boost. this unleashes more liquidity and therefore means they can redeem some of funding and the lower yields and support the bond market, but also we might see more rrr cuts later this year. the rrr ratio is still high it is interesting to note there are only four times of china has seen a full percentage point cut in three during a crisis. this might be a policy shift in china, a positive signal as well as an immed

we feel that with our footprint in chinese market.hat with ourfootprint in hong kong, both on the hong kong island side and elsewhere, that we are able to provide our storytelling and our product to the chinese consumer that way. but at the moment there are no plans to be entering mainland china. many luxury brands have struggled with the problem of counterfeiting in asia. is that something you are concerned about? it would be very few brands on this planet that haven't encountered it. it is something that we actively work towards minimising, and i think it isa towards minimising, and i think it is a very unpleasant reality, and it is a very unpleasant reality, and it is opportunism at its worst. what is manolo blahnik‘s view on brexit? will be an impact? are you concerned about? as soon as brexit happened, we immediately as a company set up a committee for it. we regularly meet to discuss our opinions, our views, our potential areas of focus. but our potential areas of focus. but our primary objective at the time of brexit was to pro

attitude toward the chinese will take? -- for the chinese military? guest: the chinese military has received huge increases in funding. they have posted a percent growth year on year in military -- 8% growth year on year in military funding. they have started building a second aircraft carrier. what you see is china really trying to bring their military into the 21st century so that they can fight and win a modern war. that is one thing that they have said they wish to be able to do. certainly the u.s. sees this with consternation. it's a more complex story than that. if you look at for example u.s.-china military to military relations between the two, the relationship is quite good. this is very true in particular of the navy. we are not in a cold war situation. there's a lot of dialogue between the militaries. there's a lot of understanding and i would say especially on china side that while they want to be able to fight and win a war, they don't want to get into a war with the u.s. i think the u.s. does not want to get into war with china. we are i

the chinese responded to that.dent's responding to the chinese will these ever go into effect we don't know. we'll wait and see what the white house has to say about all of this. but it's jobs friday, so a lot of economic news today >> thank you very much >>> a can't-miss interview on "power lunch" later on today the treasury secretary, steven mnuchin, will join the "power lunch" team to talk taxes, tariffs, trade and the economy that's at 1:00 eastern time. "power lunch" is a pretty good program. check it out >>> moving from trade to tees. let's bring in eric chaieric ch will start not with golf but a guy throwing trash cans. >> he's a small guy, 155 >> all muscle. >> conor mcgregor is in some hot water today. he turned himself in to police last night following an incident at the barclay center in brooklyn he showed up at a ufc media event that he was not invited to he was caught by tmz throwing a cart into a bus of fighters, fighters that were supposed to fight this weekend two fighters on the card for this weeke

primarily investing in chinese companies selling goods and services to chinese beat. should be well insulated to any trade tensions. the last thing i know, the strong domestic demand story unrelated to trade is giving the opportunity to make more concessions because he has a strong economy behind him. one thing trump's advisors may be unaware of, how much the chinese economy has changed. exports minus imports was 9% of gdp years ago, now it is only 2%. hardly any listed companies are exporters. the impact of these measures on the chinese economy will not be as significant as some in the trump administration believe. you say the other china story, the world's best consumer story. but this is not a narrative people have gotten to grips with, have they? that is not been reflected in chinese stocks. they have lagged, haven't they? andy: let me take a different look at that. in the u.s. people are unaware of basic facts of how open the chinese economy has become. few in the, very u.s. know that gm sells more cars in china, that boeing delivers more planes in china than any

you will probably hire a chinese broker.ght, how do we see the potential for a slow down weight into all of this in terms of these trade tensions and the regulatory changes we have talking about? >> if you are looking at it in terms of slowing growth for china's brokerages, they have been doing pretty well in hong kong come up but there is a lot of work they can do in china. brokers,ay chinese they do private equity, wealth management. they found many come many ways to monetize what they do. i think they are fine. in 2015, they were called into bailout the stock market, but now they are finding lots of ways of making money. fori: what opportunities changes to the environment for these guys doing business do expect with this grand opening up from beijing that comes with very few details at this stage? >> i don't think there are many details at this moment. june, raisingd of the stake that the western brokerage can have from 49% to 51%. it will be slow. if you look at the tables and where these western brokerages are, they are

the chinese are clever here. i am sure the white house got dozens of calls from the soybean farmers this morning, it is going to bet both parties to the table and that's what the chinese wanted and they accomplished that. >> we'll talk to one of soybean farmers at the next hour thank you all for joining us keith bliss and rick santelli. thank you all for joining us >>> about a 200 point swing. it has been a steady game from lows to highs. the nasdaq leads to dhachart at 1.4% >> in asia, two global strategist is weighing next and still to come, what gundlach thinks it is fascinating about bitcoin, back here on "closing [phone ringing] need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. some moments can change everything. you can't always predict them, but you can game plan for them. for 150 years, generations of families have chosen pacifilife for retirement and life in

at the same time, the big auto firms are mulling over the chinese pledge to open up its markets.the 50% cap on foreign ownership. but is it too late? no, business is a lwa ys but is it too late? no, business is always going on, we're always further developing and there's a lwa ys further developing and there's always new decisions and we are currently planning for the next five to ten years. ndinga cap is something donald trump has called for, so will america's number maker ta ke for, so will america's number maker take advantage of it? no plans to do that. —— ending the. you never say never about something like that. that. —— ending the. you never say never about something like thatm fa ct never about something like thatm fact america is going the other way, it wants its business here to become or chinese and being an iconic american brand could prove a problem if the trade war gets going with the chinese government encouraging consumers to stay away from anything over their. much fanfare about the reform confirmed to open up the car market and end the cap on foreign ownership b

is the tide turning against chinese tech companies. the heat is on there's no question about it and it is to a certain degree a new development and we have talked quite a bit in the past couple of days and weeks that donald trump might try to make it more difficult for chinese investors and companies to invest into the u.s. to good knowledge area also that it will be more difficult for chinese companies to buy into the u.s. to get all the industry is so now we have a case the other way around so that also american tech companies might not be able to do as much business with china as they used to we have to wait and see you said to you might be a special case but it certainly is an interesting new development in the tens u.s. relations and netflix results out and it seems that there shocking skeptics and beating wall street expectations what's the story. well at least the initial reaction here on wall street is quiet. the stock after the last earnings report in general was up about forty percent after back then netflix reported record n

he is the face of new china, a new breed of chinese entrepreneurial.h deep financial pockets to try something new. translation: with deep financial pockets to try something new. translationzli with deep financial pockets to try something new. translation: i am now 35 years old. my entire management tea m 35 years old. my entire management team has a lot of people in their 30s. we are idealistic and can be rash sometimes. is but we also bring a lot of surprises. he has a future for what the future is going to look like. —— a division. no parking problems, no bottlenecks and congestion it will do all this with one thing, data. there is lot of sensitivity amongst officials in the us government and consumers that chinese company may hand over that sensitive information back to the chinese government. how do you view that attitude? translation: when american countries first entered china, there were also these concerns speak without you are chinese or american, data is the lifeline of any business. cannot guarantee data security and that will be destructive

they don't want to offend the chinese. china is a fascist country you think about the global pariah, our blue states would block travel to china the way they blocked travel to north carolina over its bathroom policies -- of course they don't do that. california government governorn went to china nobody cared. google massively expanding its artificial intelligence operations in china even though that will almost certainly empower the chinese military. but ignore all of that to come over to gaze, remember russia is the real threat. if you disagree with that, you obviously work for vladimir putin. harry, you never hear anybody say this but let's be as honest as we cann be.

the chinese government believes it can withstand that.and lender essentially the same and the figures are huge, particularly when it comes to those soes. the days of a stimulus appear long gone. the government hasjust a stimulus appear long gone. the government has just cut corporate taxes. essentially they believe they can weather the storm and use that liquidity as a way to try and ensure that the economy continues to grow. but the growth accelerates and guess that very soft landing. think it very much indeed. good to get your view on those numbers, robin. the british pound has hit its highest level against the us dollar since the brexit referendum injune 2016 — a pound will now get you more than $1.44. the strong run means that, among the 610 group of rich nations, the uk has the best—performing currency this year. traders say the prospect of higher uk interest rates has made the pound more attractive while the dollar has been hit by fears of trade disputes. now let's brief you some other business stories. hong kong—listed shares of ch

tariffs from chinese goods.ave present import taxes on 106 american products including soybeans, cars, and aircraft. that matches the scale proposed by the trump administration for high-tech items such as semiconductors. president trump has complained that china violates intellectual property laws. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. alix: officials from both the u.s. and china speaking about the risks of a trade war with leaders waiting to see who is going to blink first. taking totrump twitter. "we are not in a trade war with china. that war was lost many years ago by the fullest or incompetent people who represented the u.s.. now we have a trade deficit of $500 billion a year, with intellectual property theft of another $300 billion. we cannot let this continue!" so much for camping down rhetoric and taking it with a grain of salt. what is going to be a victory for president trump in the situation? >> i

tariffs on chinese steel and the minium beijing now imposes levies on the u.s. products including pork wine and fruit we'll get more on the world's top two economies trade dispute from our asia correspondent. also on the show portugal abandons the austerity. policies pushed for by the e.u. the result the portuguese economy is growing again. welcome to d.w. business stocks in china kicked off this new week with mild losses amid lingering worries of a full blown trade war with the united states on sunday china announced tariffs of up to twenty five percent on one hundred twenty eight u.s. imports including pork and wine the new tariffs kick in today and beijing said the move was to save china's interests and balance losses caused by a new us terrorists. these american avocados are destined for the chinese market but they might not sell so well anymore now that china has imposed tariffs on fruit and meat while steel pipes and scores of other imports from the usa the rates of fifteen percent on one hundred twenty items and twenty five percent on eight others . the c

and we cannot allow the chinese to gobble all of that up. that from larry kudlow this afternoon. >> neil: all right, john roberts. great reporting my friend. this back and forth might seem to you like he started it. if you have kids, it does ring a bell. we have two individuals from washington joining us. republican senator tim scott, republican congressman trey gowdy. both book unified how our unlikely friendship gives us hope for a divided country. i don't know if it has a section on trade wars, gentlemen, but, senator, the division in this country has to do with a lot of folks saying we don't know whether trade battle with the chinese is the right thing to do. how do you feel about what the president is doing? >> well, good to be with you. thank you for help us promote our book "unified." the reality the president is complaining about two important issues. one is trade one is theft. on trade we run a trade deficit with china. we believe they have been unfair in their trade practices so the president is looking for ways to address that iss

the chinese officials and the chinese businesses had their talking points down almost too well.however, the impression that i took away from the visit is that the chinese government will do anything legal or illegal, moral or immoral, ethical or unethical to get ahead of the united states and when they get ahead, to stay ahead. china coined the term peaceful rise to describe its drive to become a great power, which is designed to sound very benign. in fact, china later changed this slogan peaceful rise to peaceful development, out of concern that the word rise sounds threatening. just to be clear, i'm not threatened by chinese economic growth. the development of a truly peaceful, free-market democracy, no matter how large, would not be threatening because democracies generally do not threaten each other and free enterprise is mutually beneficial. the fact that so many chinese people have been lifted out of poverty and into the middle class is a good story for humanity. a very good news story. it's also good for the united states. the more chinese people that can afford to buy ou

the chinese currency ceasing the u.s. dollar but it does mean that increasingly some of the flows will go in r. and b. this gives chinese refiners and domestic traders the ability to buy a crude using their own currency but again the transition to the dollar will still have to happen so just picking up on that then what does this mean for for the oil consumers like china that they are going to be trading on their own currency what is that what implications does that have going for i mean the goal is for china to establish an asian benchmark that will reflect chinese consumption and sort of chinese and more broadly asian demand patterns but in the near term we have to bear in mind that roughly seventy or even more than that of the people registered on the retail investors so there is a huge risk of speculation being pretty rampant on on the irony and to begin with we are seeing quite a lot of movement that is fueled just by the need of chinese mom and pop investors to find a place to put their money so we shouldn't place t

sophie: investors are working through the chinese data and we see fluctuations where hong kong and chinesex and shanghai composite down 0.1% after recovering from most of the earlier losses, which was triggered by the chinese data. when you take a look at the details come easy retail sales with a strong rebound, taking up some of that flag after disappointing industrial output. again, we are seeing swings in hong kong and mainland markets. when you look at the aussie dollar, bulls not too impressed by the data come it would s eem. the onshore yuan, swinging 628 range. 627 and the nikkei 225 closing of the morning session fairly flat, with the handleyen near the 107. the aussi shares gaining ground with the aussie dollar on the back foot. what is happening with indonesian rupiah, advancing the stocks in jakarta. we have bigger than expected trade surplus and the korean won rallying after sustaining key technical support, climbing for the first time in four sessions. i do want to check on lme aluminum prices, holding your a 2011 high. the market weighs the possibility of further protections.

as you say, the chinese have condemned it.issued a statement saying that the fresh tariff proposals covering chinese exports worth some $50 billion us, describing them as unfounded and a typically unilateralist and protectionist practice that china strongly condemns and firmly opposes. this was the statement from the chinese ministry of commerce following the american move that listed, as you heard, nearly 1300 products ranging through aerospace, information, communication, technology, robotics and machinery. they could all be subject to a tariff of 25%. i have spoken to a number of analyst this morning about a potential outcome of this trade spat and all agreed it will not end well for either party. this is the response from the asian trade centre. the chinese have not yet any major us exports into china such as aircraft, soya beans, cars, caterpillar tractors. there is a lot of room for this to escalate and get more complicated. the us's main gripe with beijing is that amongst everything else they are stealing intellectual p