gordon chang said. china always has the upper hand in economic relations with the u.s.. >> the gentleman's time is expired. i recognize the chairman does it meant on the asia-pacific. >> as i mentioned in my opening statement, manufacturing is the backbone of our economy in northern illinois. this question is for gordon chang but others are welcome to answer. i spend much of my time working with numerous small and medium-sized manufacturers that have been harmed in one way or other. they have engaged in a chinese embassy, a favorable ruling in the chinese courts of that issue. how many companies pick up their phone and go to the congressman for direct intervention on an obvious i p violation. the problem is often more complicated like the case of shredder fellows. they are fighting a fierce battle in china, a joint venture where they were locked out. inventory stolen. business practices and ip. if you are big you can succeed. but the small and medium-sized manufacturers are having an extraordinarily dif

gordon chang.entleman's time expired. thank you. >> thank you. >> i recognize the chairman designate on the subcommittee of asia and the pacific. >> thank you. as i mentioned in my opening statement, manufacturing is the backbone of our economy in northern illinois. this question is for mr. chang, but others on the panel are obviously welcome to answer. i spend many of my time working with numerous, small, and medium sized manufacturers that have been harmed by china. most is intellectual property and piracy which is the case of the water company in my direct. we engaged chinese agency and ask them to intervene and actually got a favorable ruling in the chinese courts on that issue. how many companies can pick up the phone and go to the congressman to get a direct intervention on an obvious ip violation? other times the problem is more complicated such as the case of the office paper shredder maker, the number one paper shredder maker in this country. they are fighting a fierce battle where they we

also with us is gordon chang, currently a columnist at forbes.na and hong kong for nearly 20 years and has written extensively on sat and wrote rea. we are grateful to have him here today as he is a much sought after expert on the future of china's economy. but if mr. yang jianli is the founder and president of initiatives for china. he was imprisoned in china following an outcry by congress and others for his release he was freed in april of 2007. immediately following his return to the u.s. he formed initiatives for china, a pro-democracy committee that is committed to peaceful transition to democracy in china. leslie, mr. robert sutter to has been a visiting professor of asian studies at the school of porn services in georgetown university since 2001. in addition to his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal agencies that laste

also with us is gordon chang, currently a columnist at forbes.sought after expert on the future of china's economy. but if mr. yang jianli is the founder and president of initiatives for china. he was imprisoned in china following an outcry by congress and others for his release he was freed in april of 2007. immediately following his return to the u.s. he formed initiatives for china, a pro-democracy committee that is committed to peaceful transition to democracy in china. leslie, mr. robert sutter to has been a visiting professor of asian studies at the school of porn services in georgetown university since 2001. in addition to his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal agencies that lasted 33 years. we will begin with mr. larry wortzel. i'm sorry that i'm not so great with the pronunciations, but look at my name. i don't get to

. >> i agree with gordon chang. we have to avail ourselves of the available world trade organization remedies. we are not always doing that. they are more limited than we might like but we must avail ourselves of them. we continue to work with european allies and friends so when the case is brought it is not just by one country. that helps. countervailing duties is another potential remedy that would be useful. >> i would like to broaden the implications of intellectual property, links between stealing intellectual property and funding terrorist organizations, a majority of counterfeit goods originating in china and wind up in the border region of south america with direct contributions provided as follows. one entity in paraguay provided $3 million to hezbollah. is there a way even moving beyond the important nature of intellectual property rights on its own helping to reinforce the severe implications of these violations? >> that pointed away, a response to that. to take a look at the iran sanctions act and with t

also with us is gordon chang, currently a columnist at forbes. he practiced law in china and hong kong for nearly 20 years and has written extensively sat and wote rea. we are grateful to have him here today as he is a much sought after expert on the future of china's economy. but if mr. yang jianli is the founder and president of initiatives for china. he was imprisoned in china following an outcry by congress and others for his release he was freed in april of 2007. immediately following his return to the u.s. he formed initiatives for china, a pro-democracy committee that is committed to peaceful transition to democracy in china. leslie, mr. robert sutter to has been a visiting professor of asian studies at the school of porn servis in georgetown university since 2001. in addition o his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal ag

change the world for good. thank you for the opportunity to address you. [applause] >> it was a great crisis and gordon brown has written a great book about it called beyond the crash, first crisis of globalization in which he touches on many of the themes he just sounded. in the interest of letting people in the audience be part of this, i'm going to ask one question and then we'll open it up to you. one of the most gripping scenes in the book is -- in the powerfully convey what he did in their flight back from america on september 26, 2008 as the world teeter on the brink of financial collapse. you just left a meeting in the white house on board that plane typically yielding the black felt phrase and on the second piece of legal paper wrote another phrase and those two phrases played a decisive role in rescuing the world from what could've been in a lot downward spiral. do you mind telling the story and telling how you got the americans to come around? nl, it was also frightening. if you think back to that. when lehman brothers had collapsed in the markets had frozen and nobody quite knew which was t

change the world for good. thank you for the opportunity to address you. [applause] >> it was a great crisis, and gordon brown has written a great book on the call beyond the crash a crisis in globalization in which he touches on in that many of the things he just sounded in the interest of letting the audience be part of this and going to ask one question and then open up to do, all of you. one of the most gripping scenes in the book is, and you conveyed that what you do when your flight back from america on september 26, 2008, as the world was on the brink of the financial collapse you just left a meeting in the white house on board the plane typically were not sleeping, yielding the black felt pen that you use you wrote a phrase on the piece of yellow legal paper, and then all the second piece of legal paper another phrase, and those two phrases played a decisive role in rescuing the world from what could have been a relentless downward spiral. do you mind telling the story and how you got the americans to come around? >> it's fascinating what was happening at that time but it's also frightening. if

change the world for good. thank you for the opportunity to address you. [applause] >> it was a great crisis, and gordon brown has written a great book about it called "beyond the crash." in which he touches on the depth many of the themes he just sounded. and it is a leading people in the audience be part of this, i'm going to ask one question and then open it up to you. all of you. one of the most gripping scenes in the book is, and you probably convey is what you did on your flight back from america on september 26, 2008, as the world teetered on the brink of financial collapse. you just left a meeting in the white house. onboard that plane, particularly you were not sleeping, wielding a black pen, the black felt pen to use, you really phrase, on a piece of yellow legal paper. that i on a second piece of yellow legal paper wrote another phrase. and those two phrases played a decisive role in rescuing the world from what could have been a relentless downward spiral. do you mind telling the story and telling how you got the americans to come around? >> you know, it was fascinating what was happening at

>> i think gary gordon was talking about the shadow banking system, because the lending market, which is in on regulator landed market grew to $2.20 trillion. not expect the chump change i will ask ms. born to comment, and mr. georgeo to comment if they choose. >> well, we certainly discussed at great lengthth the role that cdo's played in the housing bubble, in the inflation of mortgage-related securities, and in the later years, in the use whichnthetic cdo's, essentially consisted of credit default swaps or over the counter, unregulated over-the- counter derivatives. they continued the securitization process for a longer period of time and inflated securitization as the mortgage market itself was beginning to flatten and then decline. and they certainly played all rolled in the enormous impact that the collapse of the housing bubble had on financial institutions. >> i mean, you will certainly, if you read the report in fall, you'll end up knowing more than most people would ever want to know about collateralized debt obligations. but we found them to be central in a variety of respects. the most significant of which, i think, is that if you examine the structure of