xi jinping has for his unprecedented third term. david: all of that on deck. certainly the challenges of the chinese economy. all well known, the solutions are bit more tricky. we saw with the collapse in bond yields this week, slightly down, equity markets down a 31% here, we also getting -- down a .33 of 1%. i really live session on wall street overnight, futures session still under pressure. lots of news out of indonesia. >> certainly, particularly when it comes to how assets are faring so far this morning. it is slow going, we are seeing a higher of 151%, -- higher .2% , there could be a tax on nickel that could act -- effector exports. the stronger dollar store is a big part of it as well. nickel futures lower by 1.2%. here is more from mr. joko widodo. >> you talk about putting a tax on nickel production the next stage up, will that happened this year? an export tax on nickel products? >> it is possible to impose it this year. >> really watching nickel producers, what this means for the ev supply chain the whole world trying to capture supply during the

john: jokowi: xi jinping will come. john: and vladimir putin?owi: president putin has also told me he will come. john: american investments in indonesia over the past five years is $9 billion. china has invested $40 billion. we have a chinese car factory around the corner. china is buying up a lot of the refineries to make precious metals, america at the moment is limiting the battle -- losing the battle for hearts and minds in indonesia, but also southeast asia, do think that is fair? john: jokowi: indonesia wants to be friends with everyone. we don't have problems with any country. each country will have their own approach. each leader has their own style and approach to bring investment. it should not be a problem. but now what is needed by indonesia is investment, technology. that will change our society. francine: that was the indonesian president speaking to bloomberg's john micklethwait. let's get to the bloomberg business flash. laura: european national -- natural gas futures added to their gains. the benchmark settled at 241 euros per m

-- high are the stakes for president xi jinping?is is the year when he should ideally be trumpeting his successes. what he has done over the last 10 years. no one will doubt that he is getting a third term, that will happen. again he will not necessarily going to the party congress, he will go into it on the back foot claiming stability and trying to reach stability. he is up and a northeast providence where they are being pummeled by heavy rain. that is not causing power outages, it is causing crop damage at a time when there are food shortages. i lived there 32 years ago, it is highly industrial as well as highly agricultural. grading, crops -- grain, crops, fruit, he is a plot -- dealing with heavy rains and flooding to alleviate it. a difficult quarter for the provinces to do. where can he find some relief? we already have the reverse repo by the pboc cut on monday paving the way most likely for low prime rate cuts coming on monday. the one-year bench cut -- benchmark rate. and more on the five-year lending rate. that will help

coming up, xi jinping and vladimir putin will join the summit this november.ore from our interview, next. this is bloomberg. ♪ manus: it is "bloomberg daybreak: europe." i am manus cranny alongside dani burger. preparing for the 20 summit. it is confirmed to bloomberg that xi jinping and vladimir putin are planning to attend. he spoke to bloomberg's editor-in-chief. >> the rivalry of the big countries is worrying. we want things to be stable and peaceful. this is not only in indonesia. asian countries also want this. this visit did not help stability. >> what we really want is stability. key stability. >> there is a concern that if there is a conflict in taiwan, it would spill over into the south china sea where there is territory that china can contest. in indonesia ready to defend themselves? are you ready for that conflict if it happens? >> we want the region to be peaceful. it should not come to the point where tensions arise and affect economic growth and the well-being of people. in my opinion, it is very important that there is a space for dialogue. esp

but it's not a signature policy of xi jinping that has caused that.ty slowdown, that's a direct result of xi jinping's own decision. the market was overheating, too much borrowing, and it was time to rein that in. that is leading to people refusing to pay their mortgages, because property companies are starting to teeter, and zero covid as you mentioned is also really slamming consumer confidence. it's really kind of gripping china tightly at the moment. you're seeing a lot of people not taking that holiday or business trip because of the risks of getting stuck are really high. >> china is extremely sensitive to any signs of domestic unrest or opposition to the government. i know you have seen it during your time there. people refusing to pay mortgages, how does china respond to that? >> so china is always about control, but always about looking at the numbers. as long as most people look happ happy, they're willing to impose pain on a small number of people. as long as the number of people being locked down is small-ish, and most people think they're

this is not the year xi jinping wanted to have it.tarting with the war in ukraine, a significant economic softening, in large part the result of policy decisions. there are not structural forces the pressing economic performance. these are boneheaded decisions. what is this going to lead to in terms of the 20th party congress and beyond? xi jinping will remain in power, but right now this is shaping the choices of personnel. there is probably a stronger bargaining hand for those looking to move their people into the bureau or central committee as opposed to xi jinping being able to run the deck. this is shaping the conversation about who will be premier in a different way than would be the case six months ago. xi jinping is 70 years old. he's pretty set in his ways. i would not expect a different policy approach. shery: what do you make of washington's messaging? jude: it's a mess. i have to say, the best reassurance we could make to beijing is to have a clear message across the u.s. government without these wide deltas and swings. it

the truth is that prison xi jinping is also i prison xi jinping is also change the game plan. intensity of military operations and around taiwan and the level of economic reach is not significant. the us is pushing back and of course, my argument is to preserve strategic stability in the taiwan strait. we need to do is do everything we can to preserve the status quo and my argument is if you don't do that, you don't do that by messing around with the one china policy. that's why i've never been a fan of speaker pelosi's visit because it upsets the symbols of the relationship and the subject of what we should be doing in relation to taiwan is continuing to augment taiwan's ability to deter a future military strike from china. is military strike from china. is a military strike from china. 15 a geopolitical di5a5ter military strike from china. 15 a geopolitical disaster is avoidable and you are: get managed strategic competition. what does that look like? we have what does that look like? - have unmanaged 5trategic have unmanaged strategic competition which is no rules of the ro

i want to -- xi jinping.tion the pboc governor is a very important position and he could very likely be out. if you want a continuity candidate, liu he could reap -- could be replaced by the deputy governor. that is the way it usually works at the pboc. shannon studies at harvard and studied at cambridge and could be considered a continuity candidate. >> what about the pmi's later today? more into a slowing economy? stephen: absolutely. we got pmi's, the official ones yesterday. they were less than expected. the official pmi was a little better than the consensus estimate. again, it was below 50, indicating contraction. the chinese economy in august is continuing its downward slope from july, which the numbers indicated was slowing down from a pent-up demand boost we saw in june. the manufacturing pmi will be out this morning. it represents a, private manufacturers. that is the consensus estimate, right at the line between contraction and expansion. bloomberg economics expects that number to be lower. a littl

to forget about economic problems in_ jinping to forget about economic problems in the _ jinping toout economic problems in the eyes of- jinping to forget about economic problems in the eyes of the - jinping to forget about economic. problems in the eyes of the chinese people _ problems in the eyes of the chinese people by— problems in the eyes of the chinese people by using _ problems in the eyes of the chinese people by using this— problems in the eyes of the chinese people by using this nationalistic, . people by using this nationalistic, militaristic— people by using this nationalistic, militaristic attitude. _ people by using this nationalistic, militaristic attitude. because - people by using this nationalistic, i militaristic attitude. because china is oh _ militaristic attitude. because china is oh the _ militaristic attitude. because china is oh the brink— militaristic attitude. because china is on the brink of— militaristic attitude. because china is on the brink of a _ militaristic attitude. because china is on the brink of a recession, - is on the brink of a recession, b

but this is an extremely sensitive year for the top leader xi jinping.d the end of the year, we'll have one of the most important meetings the communist party has had in a generation. he's expencted to ask for a thid term as leader. to do that, needs everything to be ticking along and humming nicely and china's economic growth is something that we've taken for granted but also the communist party and chinese people have taken for granted for a long time. >> is this a short term bump in the road for china's economic growth or is it part of a longer term slowdown? we were used to for a number of years double digit growth. more recently high single digit growth although there has always been real doubt about the ver crassity of the growth numbers. but from your perspective, is this part of a longer term slowdown for china economically? >> i think you have to look at the different headwinds and separate them out. so it is true that china is having power cuts because of this heatwave. a lot of countries are having a hot year and it causes problems in china li

xi jinping is 69. there are two other members above the retirement age, number three and number seven. the big question, will xi jinping use the mandate developed of the last 10 years to put his people in place? kathleen: china's biggest banks have been suffering saw earnings after being roped into help the struggling economy. would've we seen so far? stephen: absolutely. the property/banking sector is the most exposed industry to the property sector. that's going to be a big challenge going forward. you've seen the big banks being roped in to help support stabilize the economy. that will cut down the net interest margins. the capital constraints adjust as they are being asked, strong-armed for an economy that does not want to borrow. especially to the property sector. three of the big four reported yesterday, the top of the pyramid, net income up 4.9% seems to be ok. property, nonperforming loans up 5.47%. the bank of china, net income up. china construction bank up 5.4%. the industry nonperforming lo

president xi jinping is a step closer to a third term in power. a congress will be held.e is expected to extend his decade in power at the event. pakistan and united nations have appealed for emergency funding after flooding caused by monsoons. more than 1000 have been killed. nearly half a million are forced into camps. shelter, tents, and mosquito nets are needed. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> looking at the data docket in asia, half an hour from the open in japan, korea, australia. china pmi readings, the estimate coming through is further into contraction territory but there are a pile of problems. property woes, covid flareups, power outages. japanese industrial data and retail sales are due and korea posted numbers and we saw it coming in at 1.5% of growth on the year, below the estimate for the gain of 2.6% and a signal the fourth largest economy in asia could be losing steam and there are uncertainties. on the chart you can see the d

this is not the year xi jinping would have wanted going into a new election. there are questions over the scenario that he wants to go into with an unprecedented third term. he is sticking to resolutely dragging on the economy, there is a payment crisis as well. for china, stability is always at the core of everything. >> we are finally hearing from larry summers saying that perhaps that narrative that china's economy was going to surpass the u.s., it's true we have taken it as a given in the past few years. that may not happen. it might be the false narrative that we have seen back in the 1990's about japan, the 1960's about russia. now as we continue to see the weak economic data, goldman sachs downgrading the forecast for gdp in china to 3.3%. what's happening in china and the u.s. with the federal reserve has global repercussions. let's talk about fed officials because they did give those diversion signals about the size of the next rate hike. we had plenty of fed speak today. >> it isn't if they're going to rate hikes on september 21, the question is how

he let xi jinping try to move the goalpost on our relationship with taiwan.orried because of president biden's weakness, that once xi jinping secures another term, he go for the jugular with taiwan. the most important thing biden can communicate to xi jinping at that meeting is we'll not stand by if they try to forcibly annex taiwan. >> we have had some success in kherson, moving on the offensive. but the ukrainians say we are giving them enough weapons to survive but not win. maybe jake sullivan and the state department will say we are done, the russians can keep what they have got. does he have a reason to fear that? >> the ukrainians do have reason to fear joe biden will get cold feet. the biden administration busy anotherred around with ukraine. once they started sending weapons and it was clear we faced a from digital artillery battle, they didn't send them the rocket systems they needed. and they are still doing it too slowly and there are too' restrictions on ammunition. ukraine wants to defend their own territory and fight their own war. we should arm

and now xi jinping really needs to announce some new super-edition at this congress, because the congress usually plans for 5- 10 years, that is, in fact, it will be a new platform for him to point at putin and he thinks that i don’t need a small a-a war is victorious as was crimea in the 14th year and applause from the chinese people that this is the kind of leader we need so so see sensipi never copied anyone, let's say that yes , that is, he came to power in the 12th year and with his own inventions, yes, that is, he did not need to be a tough leader for china, let's say that, well, he has no opposition, no, everything is loyal there yes, yes and now, yes, and now, in principle, yes, here i am putin. yes, putin is a strong politician. well, how do the chinese see him? i mean, this idea is conquering many minds. he can slam his fist and say attack on of the united states to the united states well, i think that izinpin is also a very difficult choice for him because of all the recent conversations. i don't see that he is ready to play such a role. you see, putin also grew gradually over

- faltering a little bit, i think that explains why xi jinping has - explains why xi jinping has made war games and everything when speaker pelosi visited - onto the war games and everything when speaker pelosi visited taiwan recentty~ _ when speaker pelosi visited taiwan recently. taiwan _ when speaker pelosi visited taiwan recently. taiwan will _ when speaker pelosi visited taiwan recently. taiwan will soon - when speaker pelosi visited taiwan recently. taiwan will soon become i recently. taiwan will soon become the focus — recently. taiwan will soon become the focus of — recently. taiwan will soon become the focus of national _ recently. taiwan will soon become the focus of national pride - recently. taiwan will soon become the focus of national pride and - recently. taiwan will soon become the focus of national pride and the focus _ the focus of national pride and the focus of— the focus of national pride and the focus of everybody _ the focus of national pride and the focus of everybody in _ the focus of national pride and the focus of everybody in china, - the focus of national

i don't see xi jinping bluff being this. to lead to military conflict, but there are many, many things that china can do short of military conflict that's going to escalate tensions. >> the white house is trying to understandably bring down the temperature in all their public comments. they say they're unsurprised by these military drills and the warnings coming from china. asked if the u.s. and china are now on the brink by this morning, the president's spokesperson said no. let me play that for everybody, what he said. >> no. i don't believe so. not at all. look, we knew that the chinese were going to react this way. we could see it in the rhetoric leading up to the visit. frankly, we've seen them do some exercises, we've seen some flying along the median line of the taiwan strait. all of this is of a playbook, exactly what we expected them to do. >> they say they're watching this closely. what's -- is anyone giving a timeframe of how long they watch and when they'll know if things are getting too hot or they're cooling do

xi jinping has been clear they need more realistic exercises. so what's significant is the unprecedented scale. it's not only the live fire tests, the missile tests, but we also had 100 aircraft operating, ten destroyers and support vessels, nuclear submarines, all these different forces operating together in close proximity towards taiwan is sophisticated and complicated and meant to help them get to the point where they are confident that they can go an operation successfully against the island. >> and from what you can tell, does it appear to have been as effective as beijing might have hoped? >> as an outside observer, it looks like everything went according to plan. the missile tests, the missiles landed where beijing planned for them to land. in terms of the aircraft, they had a hundred different aircraft, fighters, bombers, early warning, air refueling tankers and they successfully conducted the operations they wanted to, which ranged in everything from joint reconnaissance to air superiority operations, refueling, and ground assaults. so

over the past decade, under president xi jinping, china has changed its taiwan policy with potentially catastrophic consequences. modern china's paramount leader deng xiaoping outlined a solution to the taiwan problem when it offered it in 1979, a solution that came to be known as one country, two systems. taiwan could eventually become a part of china formally but it could maintain its own political system, administrative laws, even its own armed forces. taiwan rejected the offer, but deng urged strategic patience. he then decided to demonstrate the vitality of this policy by applying it to hong kong, once the british handed over the city state to beijing in 1997. spelling out these promises in an agreement with great britain and in hong kong's basic law, its de facto constitution. for several years beijing observed one country, two systems in hong kong, and held out the prospect of the same for taiwan. trade between beijing and taipei increased dramatically. in 2015, president xi met with taiwan's president and they spoke of enhancing ties, something that is inconceivable today. deng

xi jinping has stated it we interfere, he will accelerate the timeline in time -- trying to take back taiwan. china does not care about its military troops in that aspect we do. we placed lives over objectives as china places overlies the biggest issue is does it accelerate the taiwan in trying to take back taiwan and if so, how do we support taiwan when china is willing to lose countless numbers of their >> i just think this chip -- this trip -- china is out of line. it put the wire to xi jinping -- to his military officials who says now is the time, we have worn the u.s., let's do it and then there is nothing we can do. we recognize the one china policy. it is just going to end up as another ukraine conflict were as ukraine was not a member of nato. we will provide them weaponry but they are on their own to fight. so this logistic nightmare that it has two supply is china controls the south china sea.

when it's combined with xi jinping's image then you have people ask questions.t that yellow bear? >> you recognize the power of a benign yellow bear. >> exactly. if you are in a democrat society, i think politician will be thrilled if they can compare with winnie the pooh instead of some evil character. but we're talking about china. >> when xi was re-elected by parliament the margin was 2, 970 votes to 0. and he created this image on that he called xi forever. when the communist party went to work on passing a resolution favorably equating xi to mao badiucao went to work in manhattan and compared xi to a magician conjuring mao's spirit. >> xi jinping is trying to portray himself as another renaissance of china. he wants to achieve what mao achieved. he wants to be celebrated as this god-like figure like mao enjoyed in his time. >> it was by accident that he became a leading critic of the chinese communist party. in 2007, he was a law student in his hometown of shanghai watching a film online when a movie abruptly switched to footage someone secretly embedded de

. 1.5 billion people to xi jinping's personality. so they stayed quiet and didn't put out any messages in support or against hoping that beijing will blame the united states for pelosi's visit and not try to take it out on taiwan. >> how common is it for high-ranking u.s. officials to visit taiwan? >> reporter: i mean, it is been 25 years since a house speaker visited. it was newt gingrich back in '97 and back then china was unhappy and the united states said sorry. and if you look at where china was then versus now, they had a much smaller military and gdp and let global clout and they also didn't have the most powerful leaders since maw. and now sky jing ping has a massive army and arsenal and he's stated that his intent is to reabsorb taiwan into the main land even though they did win the civil war but the losing side went to taiwan and the communists have never ruled that island. they've never controlled that island and yet they are determined to take that island back, pam. >> will ripley in taiwan, thank you. >>> and this aftern

and you have got the president, xi jinping, seeking a third term this fall.uite toxic mix, in my opinion. i think xi has to look tough. he cannot afford to look weak right now. guy: how high are the chances of a one-on-one meeting between the two leaders do you think right now, greg? greg: between biden and xi? minimal. they had a phone chat about a week ago, but i think there is a minimal chance for any kind of reconciliation right now. i worried about in the next 72 hours chinese military exercises in the strait of taiwan. that could be viewed as fairly provocative. kailey: we already had reports of a chinese military aircraft flying over the taiwan strait. we are watching images of the plane just landing at taipei's airport, where we expect house speaker nancy pelosi, who i believe we are seeing an image of, to deport as she makes this historic trip to taiwan, the first on the u.s. house speaker will have landed and set foot in taiwan since 1997, 25 years since this has happened. we are looking at a number of people getting off the plane now. greg, obvious

so xi jinping's great gift to the chinese people, as he presents it, is to recover the lost province.rn, liz truss, who came up with this idea of potentially reaching pay rates — if you have a a job in a different part of the uk, outside of london, shouldn't you get as much as you would in london? they don't necessarily pay different amounts if they are national organisations in different parts of the country. the public sectors don't pay different parts of the country — she seemed attracted but then backed off of the idea of having regional pay boards. do you see any merit in that original idea? is there an economic argument where there might be some merit in that? there's absolutely no . merit, it's a stupid idea because the present system works very well where civil. servants are paid the same wherever you are. - you are serving the state, not the region. _ it's completely different to local people. - anyway, that story which she | retracted is completely driven by the announcement and - the cataclysmic announcement by the bank of england - about recession, about triple increasing

. >> you mentioned xi jinping.egations, members of congress, they visit taiwan all the time. it's not an unusual thing. yes, nancy pelosi's stature, her high rank, if you will, is unique. but why doesn't china just ignore this? why is xi jinping making this something of a showdown? >> i mean, why does president xi still insist on unsustainable zero covid policy that impacts hundreds oh of millions of people for a handful of cases? that's xi jinping's directive. taiwan is a small island with about 25 million people. smaller than the population of shanghai. but taiwan is the world's only chinese speaking democracy and has friendships with strong and larger democracies with big armies like the united states. but the open question, and the unknown question on the streets here in taipei, what would the u.s. response be if china made a move? publicly, the taiwanese president has faith that the united states would defend taiwan. but a lot of people on the streets say they're not so sure. >> david, what are you hearing fro

it may be intentionally what xi jinping tends to do, but things like pulling back on as you introducedhe segment on the tech segment so a lot of those youth who are going to be employed were previously employed in tech in the gig economy. i'm not sure after we get beyond the covid situation structurally china's policies and its economy is designed to really meet what i consider to be the new normal for china's economy. >> and to what extent does this slightly softer economic outlook hurt president xi jinping's political standing we've always thought of him as all powerful over the last few years. is that changing at all or not really >> i don't think the power is changing again, i often say i think there may be some pause with him with respect to the policy direction, at least in the short term but i think we should think that xi jinping is pretty assured that third term he's looking for. one sign of that, wilf, there are already discussions about them traveling in the fall for southeast asia for the g20 and apec and a meeting with biden. that to me says he feels pretty secure in his p

and now xi jinping really needs to announce some new super-edition at this congress, because the congresslans for 5-10 years, that is, in fact, this there will be a new tribune for him in order to point at putin and think, don’t i need to ? little a-a war is victorious, how was crimea in the 14th year and applause from the chinese people that this is the leader that we need so so look sensipi never copied anyone let’s say that yes yes that is he came to power in the 12th year and with his own contrivances, yes, that is, he did not need to be a tough leader for china, let's put it this way. well, he does not have an army. we will all be loyal there, yes. and now, yes. putin's idea yes, putin is a strong politician well, how about him the chinese see. i mean, this idea is conquering many minds, yes. if you say in china, and they see, why is our politician not like that, can he slam his fist and say attack the united states, well, i think that everyone is zinping this is also a very difficult choice for him, because of all the recent conversations. i don't see that he is ready to play such a

party congress is coming up could be a factor to put pressure on xi jinping to act.the same time, you could argue tt the party congress is so close, it's only three months later, xi jinping's top priority is stability. therefore he is not going to take a forceful act in terms of military response. so i feel the pty congress is a factor that can be argued on both sides. nick: why does beijing seem so upset about this trip and the timing of it, and also, president biden has been saying, you refer to u.s. policy. he has referred three times to the possibility that the u.s. would support taiwan militarily. bonnie: i think the president has the prerogative to say he would come to taiwan's defense if he believes that would strengthen deterrence. and yes, he has said that three times. what is more problematic for my perspective is that the president has repeatedly said we have a commitment to do so. he is of course referring to the taiwan relations act from 1979 which does have some obligations that the united states has, particularly supplying weapons to taiwan. t the unit

this time, xi jinping quite clearly explained to bidenon that he who plays with fire dies from him, if doubted that the unipolar world at the head of the united states was over, then the conversation between biden and seadzon. pina is clear to that, confirmation of almost all messages negotiations leave the impression that the chinese leader did not hesitate to warn the american president against interfering in taiwan . we may be on the verge of the very basis of the foreign policy crisis since 1962 . but on chinese tv. they were read verbatim. after that, the baidan administration came under fire from criticism of its own media, honestly, this is humiliating and unpleasant news. biden was intimidated. i have read several times the chinese leader shinzongping is beyond. i am ashamed of my country. this was humiliatingly criticized by baidan and the former us secretary of state for not supporting pelosia's visit to taiwan, saying that the states are losing their position on the world stage. allowing america to be intimidated with chinese propaganda immediately after biden's phone call w

this time, xi jinping quite clearly explained to baidong that he who plays with fire dies from him, ifne doubted that the unipolar world at the head of the united states was over, then the conversation between biden and xijinping, which is a clear confirmation of almost all messages negotiations leave the impression that the chinese leader did not hesitate to warn the us president against meddling in taiwan's affairs we may be on the threshold. in a dangerous foreign policy crisis since 1962, excerpts on the white house website following a telephone conversation between the two leaders did not say a word of warning to xi jinping. but on chinese tv. they were read verbatim. after that, the biden administration found itself under fire from criticism of its own media honestly - this is humiliating and unpleasant news. biden was intimidated and reprimanded several times by the chinese leader sinzonping. this is for i'm not ashamed of my country. this was humiliatingly criticized by the baidan and the former us secretary of state for not supporting the pelosin's visit to taiwan , saying tha

i think there was pressure on xi jinping to demonstrate strong resolve and warn the u.s.to not go further down the path of threatening chinese interests. nick: you agree the party congress later this year almost forces xi jinping to escalate? >> it can be argued both ways. the party congress is coming up and that could be a factor that could pressure xi jinping to act, but at the same time you could argue because party congress is so close, only three months later, xi jinping's top priority is domestic stability. so therefore he is not going to take forceful act in terms of the military response. the party congress is a factor that could be argued on bh sides. nick: why does beijing seem so upset about this trip? and the timing of it? but also, what president biden has been saying, he has referred in the last year three times to the possibility that the u.s. would support taiwan militarily. >> i think the president has the prerogative to say that he would come to taiwan's defense, and he believes that would strengthen deterrent and he has said that three times. what is mo

in the new global cold war alliance and bolstering the actions and global hot spots and helping xi jinping and the chinese expert blundered in recent months and the covid lockdowns is causing massive unrest and stalling the economy. the economy is in shambles and many chinese refuse to pay mortgages and the real estate firms are going bust in great numbers after a huge property bubble. the visit comes just ahead of china's national people's congress this fall where president xi expects to be nominated for a third term. that outcome is not in any doubt but what better way to silence the growing domestic criticism than find an excuse to bang the war drums with america. the visit underscores at a dangerous time where it's a risky ambiguity of u.s. policy towards taiwan. this country would go to war with china over the island rests on something of a fiction. americans don't seem to be much of a mood to get into a conflict with nuclear armed countries. with the u.s. weaker than it's been for many years, a move like this by the speaker risks tempting china to seize the initiative. it's not actua

now we have xi jinping in particular and nixon recognized china but now are on the opposite poll of what we are doing now. i'm just wondering and i know i have already sina question here on the dollar itself. this is a footnote jeffrey as you know dollar bond issuance in dollar yield has gone up to radically in the last two years. it somehow seems to increase. well over 75% of commercial transactions in the world are denominations now but is there an alternative and i wonder what your thoughts are there. baskets of currency is quick how do you view this of the backdrop in which we set in place after this meeting in 1971? >> great question but i left something out which i think we should just interject. when you asked me about the similarities and the differences i should have talked about inflation because in 1971 inflation was rising and the inflation stems in good part from the vietnam war and president johnson -- and so when nixon became the president inflation was beginning to be a real problem. and nixon held a very strong view that in the trade-off between inflation and employment

it is really xi jinping in the communist party, left over from 1949 about having to take taiwan back.is a ridiculous policy point, but we need to make sure as xi jinping and military look that it is really not so easy to do. we have a big role to play their and helping taiwan defend themselves and keeping peace in that area. >> as successful as they are economically and the fact that it is a democracy, it is still 38 million people up against the second largest economy in the world and probably the second most powerful armed force. >> it is a tough scenario because taiwan is so close to china. it is about 100 miles across the street. it is not as easy as it looks. that is why the deterrence pieces so very important. constant air and maritime surveillance. we have and i across those that fly across the street. a good eye on naval and fishing vessels as well. that surveillance really can help damp down the chances of china trying something. it will just be a long-term commitment that we need to make. that is why i'm glad to see it a big issue for congress this month and last month, to.

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look, china took a darker turn when xi jinping came to power in 2013.nts a moderate military from 2035 and by 2049 wants to d displays united states as the world's leading power. i write about this in my book, i talked about the need now to, you know, relook our one china policy because i don't think it's credible enough, durable enough, principled enough to stand up and bear the weight of some heavy decisions we are going to have to take in the coming years. >> i'm sure you saw former president trump met with hungary's prime minister viktor orban yesterday ahead of orban giving a people at cpac. what do you think of this? what message does this send? >> well, you know, the hungarian leader is an outlier, if you will, within nato in terms of his nationalistic views and things he's said. you know, i don't understand why he would be there and what that means. i think it's important, again, in the context of europe that we stand up to russia. i write again about this in my book, about the need to push more forces further east toward the russian front line.

samson: there is no doubt that xi jinping has changed everything with regard to china's relation to its and the rest of the world. if you go back 10 years the predominant sense in taiwan is you had a pro chinese government, a government party that supported eventual unification with china. 10 years later we are in a different place in taiwan where there is a rapidly growing sense of taiwan moving ever further away from xi jinping's dream of reunification. lisa: what has the lesson been to taiwan from what happened in ukraine? samson: taiwan has been watching events in ukraine closely, as has china obviously. to learn exactly how -- and the comparisons are obvious -- how can a smaller entity defend itself against this much larger, more powerful neighbor? definitely the lessons that it has learned are that first you have to prepare. you have to get your population ready and the population has to be willing to fight. a lot of taiwanese have been moved by what they have seen in ukraine by how willing people are to stand up and potentially laying down their lives to defend their country. the

xi jinping is the author of these domestic policies. that he has other than lashing out at india, japan, the philippines, the united states, taiwan. so we've got to be extremely concerned that he has incentives to do this which is not to say that we'll be in war next week, although that's a real possibility. the point is, though, that xi jinping has indeed incentives to do that and all the elements for great power conflict are you now in place. all we really need is one spark. jackie: i think you're right, one spark is all it takes. gordon chang, good to he so you, -- good to see you, sir. we'll keep coming back to you. this is obviously going to be an ongoing conversation. >> thank you, jackie. jackie: coming up, ready for liftoff again, nasa revealing details for the artemis 1's new launch date. we're going to tell you what to expect come canning up next. plugs, one diner being forced to change its policies over crime in the city. the co-owner of the dine r is here to tell us what action he is taking. stay with us. ♪ ain't it fun. ♪ l

but it's a fantastic opportunity for xi jinping to forget - about economic problems in the eyes of thee _ by using this nationalistic, militaristic attitude. - because china is on the brink. of a recession, because of covid restrictions and their obsession about confinement. _ but also, the loomingl recession in the west, which is the principal client of chinese goods. - and so by doing that, he can avoid really focusing on the economy. i i don't think china will go further than the sabre—rattling because, you know, the west, i think, - has alarmed them with the sanctions, and the sanctions on russia did work, do work, it is crippling i the russian economy. i don't think china wants that. so i think it will finish... what's worrying is that forever there might be a blockade, - and isabel can correct me... i'm not sure there will be a blockade forever, but they did declare before pelosi's visit that they no longer considered the straits international waters. now, those are very important international waters, a great deal of shipping goes through them. and if china sticks to that, that

we are just months away from a key political meeting where xi jinping is expected to have a third termafford to look weak at this moment. we are already seeing the show of military force and propaganda videos with the messages to prepare for war and several recent military drills including this past weekend on the island which is china's closest point to taiwan. there was a house speaker who visited 25 years ago, but the china today is extremely different, more powerful in virtually every regard, economically, militarily. this is a china that does not take insults or humiliation lightly and the leader at the top is china's most powerful leader. >> how could this expected visit by house speaker nancy pelosi hurt an already strained relationship between the u.s. and china? >> clearly it's an irritant, don, and it's unfortunate that things are working out this way. i'm kind of exasperated with everybody involved. i think it was a mistake for president biden to publicly say that the u.s. military didn't think that speaker pelosi should go. that turned this visit into a diplomatic hot potat