that may trigger the possible japan china in the south china sea. during the operation this should be appropriate way. if the situation in the south china sea becomes -- then not only japan but other nations may have to consider taking a stand. >> i cannot speak to the americans perspective but i'm sure that some feel like they should be doing it. and others would be sympathetic to why they wouldn't concerned it could trigger something else it might have more downside than upside. i'm sure the u.s. and a quit and a segment of policymaking community would welcome allies to participate. one who understands the region they also appreciate the reasons some countries do with decision-making as i said earlier, my bigger question is if they did what it have a big difference? how does it change? it doesn't demilitarized the island doesn't change vietnam's decision or the degree to which indonesia -- it's an important action but my question is what effect does it actually have on the region? i think the downside outweighs the upside. >> can we look at what a

sea and the south china sea. nd also, pla has already operated drones inside the territory. and drones and i think china will also try to introduce the underwater vehicle among underwater vehicles into the theater. but that is a different threat to japan. currently, once the chinese ships launched their drones, we have the f-15s. i don't think that's exactly the way to monitor the chinese drone. i think we have to come up with effective to this. and also we witness beyond increasing. so you know, the submarine going to impose a threat. as you may know, this year, 2018 is the 40th anniversary of the treaty of peace and friendship and the government are trying to celebrate this year, this anniversary. but in january this year, chinese submarines for the first time appeared and we wondered why when we are trying to stabilize. perhaps for training as, on one hand maintaining, stabilizing variations and on the other hand, continuing the east china sea are now contradict area. perhaps inside beijing is totally. so we ha

the u.s. so amazing. modern china is full of telling irony is not really use this museum that was once the house where mounties commerce secretly founder of the communist party of china in one nine hundred twenty one. today it stands in the heart of an exclusive fairy capitalist shopping district. when you leave the shrine to china's great revolution you are confronted by a surreal spectacle for right outside where the chinese communist party it was bone of the very symbols of capitalism stocks apple cars here. and down there perhaps the free markets the greatest triumph bottled water but in shoals you live beyond costing six pounds for a small bottle in my hotel. spin and his tomb if he was here i'm not so sure hidden history is always a key to the truth five years before his great communist revolution in one hundred forty nine mts sent this secret message to washington china must industrialize right now this can only be done by free enterprise chinese and american interests fit together economically and politically

, and especially in the south china sea. obviously, important u.s. ally and major country in the region. so please, how does this look from a japanese is? >> okay, thank you to the atlantic council for having me. it is good to talk about security in asia. since i came from japan, let me focus on the east china sea situation. the situation in the east china sea seems calm but that is what china expects the world to see. there are provocations still ongoing on a daily basis. so let me explain what is really happening. i was the situation continues to be deteriorating. as you may know, the chinese coast guard ships maintain presence on an almost daily basis unless the weather is not wrath. there is a certain pattern of chinese. three times every month, this is the fixed pattern after august 2016. previously it was three times, three ships, two hours. so the frequency remains the same, but the number of ships increased and it is actually armed. and also, the chinese coast guard ships are now 3000 pounds, whereas the japanese

with china's. the label as communists and states china subject of some modest compare where their weight they're not trying to run the world they're not even trying to run asia pacific i think they want to keep america from dominating the asia pacific so they have what they believe is their rightful place in asia pacific because alas there was asia long history in their size so their objectives are really modest compared with their capacity the world for new wealth in china and i often say this is this is the product of so far made entrepreneur school but is it not also the product of the exploitation of people at the bottom water known in china as migrants but they're not really migrants so. if you really. go to talk to these my women workers you will find quite surprisingly. over the past five to seven years they have experienced. greater increase there in the social groups china not a car society. but china is a class society. these are the homes of migrant workers people who build and service the n

the pacific ocean away to asia and china. here the people of the mushroom islands of once again being subjected to the testing of weapons of mass destruction designed for a coming war on. the basis part of a remarkable. knownas vision twenty twenty devised in the nine hundred ninety s. it's amos described officially as full spectrum dominance. this means control and sea area cyber space and space five four three two one. from california almost five. the u.s. air force tests its intercontinental missile by firing them at the marshall. imagine a missile coming screaming out of the sky it's absolutely terrifying there i think that there's there's really nothing. that i can imagine that that would be more terrifying than this and we're talking about. devices that any one of them could go off course. none of this disturbs life on the base where small town america has been recreated a wonderland of the suburban good. and. fabulous but there's nothing better than living on a tropical island and pretty much have each property and it's

about the china problem, the u.s. trade deficit problem economists would argue is really a question about savings. america is a net deficit country in terms of savings because of budget deficits because households do not save enough. when that happens, you always have a trade deficit. host: besides your current work, you were the former white house senior director for asian affairs at the national security council for the obama administration. is there a connection between financial issues or security issues? are there concerns from that aspect we should pay attention to? guest: the area in which economic insecurity converge is in the area of perception. do american policymakers, business leaders, and consumers see china as an opportunity or as a threat? 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

but on thursday he made it clear he doesn't see china as the only problem in many respects i think we're going to have a fantastic relationship long term with china but we have to get this straight now we have to have some balance and that goes for other countries and it goes for other places if you look at the european union it's very solidly against us in terms of trade it's very good for a look at a younger shaking her head yes you know about the european union it's like it's almost we can't even do business they send their cars over here they said everything over here we don't want to take our product. so we can't let that happen well now china hardly the world's most open country when it comes to trade finds itself a vocal defender of free trade and globalization. google me if the easiest unilateral reason and the truth protectionism it gives to wish china and the international community we will fight to the death at any cost we will resolutely fight back and take new measures and protect the interests of our country and the people while t

the supply chains in china's economy, exports to the u.s. 50nsible for about about 27f china's gdp, million jobs in china. china, u.s. exports to the impact to the u.s. economy is a strong fraction of that. yvonne: before i let you go, talking more of the china response. you think selling treasury holdings or weakening the currency -- is that a real threat? michael: i do not think selling off holdings is a real threat because of china starts selling off its holdings of u.s. securities in a significant way, it is going to run down the value of its own assets. i do not think that is a major threat. what i think is far more likely is that u.s. companies, their life in china could be made substantially more uncomfortable than it is at present, which because weshame, estimate the operations of u.s. companies in china and the ripple effects through the supply chain add another for under $50 billion to china's gdp and another 23 million and employment. a trade and investment war, no one wins. can this turn into a series of negotiations that allow th

the wto. you can count on that. not just china, other countries whether it's south korea or european countries, they will very likely bring this to the wto. it is important to note that the u.s. has taken many trade cases to the wto and won, including cases against china. host: aside from the retaliated tariffs that china has put, have we heard a formal statement from china about the united states actions? guest: yes. the foreign ministry spokesperson has delivered remarks on this and they are understandably not happy. host: from maryland, democrats line, robert, go ahead. you are next. caller: good morning to both of you. as someone in national security and has been his whole career, i certainly agree that we maintain a robust steel and aluminum industry. key allies, especially mexico and canada since we can travel by land and maintain it. the question i wanted to ask is i guess, what's your thoughts on if subsidies had been the case? it's kind of an indirect way to do it, but in terms of maintaining these two industries. guest:

erin ennis from the u.s.-chinainess council in washington up, why the manufacturing jobs president is fighting for our still looking pretty good? we will explain next. this is bloomberg. ♪ ♪ david: this is bloomberg markets: balance of power. shery: let's get a quick check of the majors, stocks paring back losses with the nasdaq turning positive, up 3/10 of 1% and the s&p 500 also flat. we continue to see the out performers being those inflation sensitive stocks and offensives. energy and industrials driving down the index with the dow down 2/10 of 1%. volatility is a bit high, rebounding from the losses in the previous session. david: from the beginning, president trump said he wants to change trade rules to revive the manufacturing industry in the united states. how valuable are these manufacturing jobs to american workers? has studied the question and joins us from washington for the results. an interesting piece on the bloomberg. you started in one place and you change review. -- your view. how valuable are the

the u.s. is such an important export market for china well as seen in the video of their views on in china itself where which i should stand when it comes to these new chairs and its position when it comes to the us at the moment a lot of a lot of traders are looking to two ways either the e.u. market to continue its supply of pok and other products that the u.s. is employed was in these tears on the other is to actually look and look to his domestic markets and perhaps grow those the message markets as well now the e.u. of course is also under pressure and somehow has to find a way to please both china and the united states if it wants to continue making business with those two sides what are the chinese or asian investors betting on which way will the e.u. go. chinese asian investors at the moment watching this very closely very nervous all around the table days tension abound also their hope there is hope also in that the u.s. will pull back on its terror as a lot of analysts see that these new tariffs not be one all end all solution for the u.s. in making up for street deficits which is very

it, the think about u.s.-chinaionship is dependence,nce, not in other words, we both benefit from the relationship. i agree with you, we need to be the relationship is one of interdependence because of china's size and growing it doesn't force american companies to engage in practices that result in them to transfer benefit y in ways that chinese companies and disadvantaged american ompanies, that is sort of the debate in washington right now because some of these practices chinese have the used market power in unfair way. in answering the previous question, talked about growing umbers of nontariff barriers, basically the government olicies by china that disadvantage the u.s. ability to continue to benefit from trade china and i t with think the u.s. needs to do a better job of addressing those. bilateral investment treaty, partnership, tools to get at the problem. all that is different than the ational security question, no instance in which the united states should think of compromising its national because of er

the industry is in agreement that china is leading the way any mobility china's policy is very much committed to electric vehicles. all the government rules and regulations are towards strengthening electric cars electric car production beyond electro mobility their central government wants to be a trailblazer in autonomous striving to that's why folks wagon has just opened its new future center in beijing their vision is a car that's a lot like a smartphone on wheels with our future center we combine vehicle design user experience as i am but also future mobility concepts to really understand chinese customers customers here in asia and we actually see differences in the arbonne mobility developing here. the daily traffic in beijing shows just how important new traffic concepts are for most of the day millions of cars here are stuck in traffic jams. for more let's bring in mechanic he is the head of the china policy program at nottingham university and he joins me from name bold china this morning welcome to. after years of explosive growth car sales in

changes to the country. china has grown into the world's second-largest economy, the largest industrial producer, the largest trader of goods, and the holder of the largest afford it -- largest foreign exchange reserves. over the past 40 years, china 's gdp has averaged an annual growth rate of around 9.5% in comparable prices, and china's dollarstrade in u.s. has registered an annual growth of 14.5%. the chinese people have emerged from a life of shortages and now poverty and are now enjoyed abundant supplies and a moderately prosperous life. according to u.s. vendors, more than 700 million chinese people have been lifted out of poverty accounting for more than 70% of the total over the same period. over the last four decades, the chinese people have determined the exploration of a pioneering spirit a path with chinese characteristics. the people have both a keen awareness of national realities and a global vision. we champion independence and self-reliance while embracing openness and win-win cooperation. we uph

. >> i am live at the china auto show. will be speaking to the ceos neo, and jack were, jaguar, and land rover. this is "bloomberg markets: asia." ♪ that sinking feeling at the moment, the mood for equities in some markets, the bond yields going out as we see moves into the commodities side of things. , silver, platinum to the upside. that 10 year yield, trading a fraction below 3%. let's see the verdict. here is sophie. >> a decline on wall street as asian stocks tracked lower. tech and industrials leading that decline. is off forthe taiex a fourth straight session. this, after results from texas from aents and a warning company that provides testing for chipmakers. we have an outlook for the chip space. yieldsd space seeing paring gains after a seven-day advance. u.s. futures are pointing higher after the s&p 500 lost 1.3% overnight. towardseasing its move 1.09. tokyo fixing did come in softer come near a 10 week high. mcc olding losses after acron proposed a new deal. checking in on japanese machinery makers among the w

in the need for development as an action taken by china to move forward in a way that benefits people across the world. [applause] china will adopt the measures for the continuing opening. we will significantly broaden the market access. a number of landmark measures are to be launched this year. including excavating the opening up of the easing of restrictions on the establishment of the institution in china. manufacturing. as soon as possible for the equity research and automobiles in particular. second, we will create a more attractive in the investment. investment and the environment is only fresh air attract more investment from the outside. china relies on these but now we have to rely more on improving the investment environment. we will enhance alignments with the economic war and increase transparency, strengthen property rights protection, upholds the rule of law, encourage collaboration and encourage monopoly. this year we established a host of new agencies for the market regulation as a part of an adjusted institution. the purp

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 expanding on behalf of the chinese government and offer a sincere welcome to all be distinguished guests attending the forum and also warm congratulations to the opening of the conference. since its inception with a focus on asia and a g

it's the largest fleet china has ever sent into the south china sea, and it's a demonstration of beijing'selt, the strike group commander is unfazed. there is no doubt that aircraft carriers make a statement where they go and the statement there is that we're a professional navy and we're here operating as we think everybody else should as well. and we will continue to do so. and we will continue to operate in the maritime and the commons throughout the world, exactly right. but the geography of the south china sea is changing, literally. two years ago, we filmed these huge new islands being built by china on three coral atolls. the latest photos show those islands are being turned into advanced military outposts. i asked the commander of the us pacific fleet how concerned he is. unfortunately, i think we're left with a wait and see, without that clarity of what exactly is the intent of the establishment of such a significant military presence that can really influence the freedom of navigation throughout the south china sea. it will be a long time before china can challenge this sort of u

the table? how much is china willing to give up? how much is the u.s. et a deal done? we are a long way from that. trump'st sounds like may be more in step now with his team that have been trying to downplay the idea of a trade worker but did we hear over the weekend? kathleen: it started with larry kudlow, the new economic council director. he has been in front of these trade questions because they have been saying -- i think they are trying to put more of a factual surrounding to what trump has been saying. said, hey kudlow has pounds the table, this is not a trade war. he says on friday -- said on friday that there are back channel talks going on. he said the u.s. trade rep and the president will be huddling to look at their strategy with china. here again, he echoes in the statement he made more of that constructive town. let's listen to larry kudlow speaking to bloomberg tv on friday. >> i think ambassador lighthizer and the president are thinking about submitting a list of suggestions to the chinese. i underscore, i think, but that is a possibility

the chinese government says the people support its move though some in china regret the ensuing rise in prices. it's definitely going to have an impact many fruits that kids love only grow in foreign countries we don't have them in china that is a direct impact. it's absolutely right to impose tariffs because i've seen the news about the us crapping trade deals with us it's right to fight back. the new turn of the china's initial response to the u.s. move to slap tariffs on steel and alimony and imports the u.s. is also threatening to impose further terrorist on sixty billion dollars worth of other chinese imports a year over what it terms the theft of intellectual property china by contrast is raising tariffs on about three billion dollars worth of u.s. imports. beijing says it will never submit if the u.s. launches a trade war and says that tariff increases are in line with world trade organization rules to protect its interests still the scale of china's new tariffs is modest the move looks more like a warning shot than a major counterattack the u.s. is china's largest single marke

this tariff is not the way to stop china's steel dumping. problem is that chinese deal -- chinese steel goes to other countries and then comes to the u.s. this is just going to hurt the u.s., because a tariff like this, there will be a wto cases, it alienates our allies, what did we do to deserve this? it is not clear in the long run how it will solve the problem. >> larger geopolitics, we look for china for help with korea and other issues. how do those efforts get impacted by these tariffs? >> that is a difficult question. that is part of the issue with the strategic rivalry with china. the fact is that we do need china's help, especially on north korea. 90% of north korean experts go to china. china is north korea's only ally. any kind of pressure we want to levy on north korea cannot really be effective without china's help. we see that, even as donald trump has accepted, the upcoming meeting with tim johnson, -- kim jong-un, kim went to beijing to see xi jinping, which shows us, whether we want to or not, china has a big role. it is very

the west. so there are also protests in china. typically for example land being grabbed by officials to for commercial development and the farmers are not being compensated to properly and the farmers now are no more wary of their rights so they're protests all young workers from the factory they demand a better wage of better working conditions but in many of the protests they're economic driven not political driven they are not national light so this kind of things or unlikely into a real movement or so-called you call that revolution. so the most revolution was the last regulation. and what i meant was there never. the japanese island of okinawa is occupied by thirty two military installations from here the united states is attacked korea vietnam cambodia afghanistan iraq. the scar is full of planes and helicopters. wherever people go they are fenced in and told to keep out. is the frontline of a beckoning war with china. and h a t seven from a kosher my book is one of the leaders of a nonviolent resistance let's challenging was

the u.s. may order airstrikes. chinaized its growing military strength with a massive naval review. fleetmedia said the consisted of 48 shifts, including an aircraft carrier, 76 helicopters am a fighter planes, and 10,000 personnel. it is the largest naval review since 1949. its first dollar bonds in two years as regional security risk rise with the prospect of a strike in syria. the world's biggest lng exporter is offering $12 billion of debt in three parts, less than 48 raisedfter saudi arabia $11 billion in the largest offering this year. is said to be more than $32 billion. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. lot needs to be digested, china markets, tpp possibly, potentially, trade tensions seem to be receiving. you could not make it up, can you? >> you could not make it up. it is very fluid. , it islook at tpp interesting the u.s. is talking about rejoining. you say trade tensions are easing if the u.s. will rej

so -- first one is of course the problematic isolations. china joined the sanctions. even though some american members -- don't believe china really, seriously. they joined the sanction club. china was quite serious, as far as i understand. and this provide north korea with tremendous pressure. is the international sanction and the economy, how it should be respected. north korea's likely to face tremendous -- and also in the future. which may threaten the legitimacy. maybe this is also another factor we have to think about. kim jong seems to have a kind of in north korean society and policies. and also it is the moon jae-in gaprnment to bridge the between north korea and the united states and even north korea and south korean people. and also we have new opportunities for south korea governments to pursue a kind of peace and stability. we have a strong sense of urgency to denuclearize north korea and also north korea's nuclear development, very close to threatening the u.s. continent. united states paid more special attention to the nuclearization -- the denuclearizat

am bobassador the u.s. said china willing to negotiate but washington n d needed to step up. >> the relation is complex we have so far always been able to expand the good things and manage the not so good things. negotiation is still our preference but it takes two to tango. >> i'm happy to say joining me on the show is lord digby jones. i know you wear many hats, but putting on your trade has the here, what do you make of the back and forth going on between the u.s. and china >> i think it's a conlict shun a and confluence of trade. you have a president in the usa saying he's doing what he said he will do that's a tick in the box politics on the other side is china saying we'll not just put up tariffs but targeted them on places where it will hurt the trump heartland. politically again you have people saying i know you were going to do this, thank you, by the way, not if it hurt me that brings in international trade. electorates don't often understand you have purchaser and vendor and by in large china is the purchas

the u.s. has already lost it. when chinaout against the proposed tariffs, here is what donald trump said on twitter. let's take a look. he says that we are not in a trade war with china, that war was lost years ago. now we have a trade deficit of $500 billion a year with intellectual property theft of another $300 billion. we cannot let this continue. youent on to tweet, how can not win if you have already? lost is -- how can you win if you have already lost? there is a 60 day comment period, before the white house can impose these tariffs. kudlow in an interview with bloomberg says, the u.s. tariffs on china are still proposals, not in place yet. he underscores the door is open. i thought about the art of the deal -- is that what donald trump is up to? these trumpet tariffs, are they the art of the deal, or just bad deals? [laughter] could it be when you were talking about the economy? everyone is saying, it will not do much to the economy now, it is still small, but the dallas fed came out with a study on tariffs and what

[applause] we want the outcomes to deliver benefits as soon as possible in china and around the world. [applause] i am confident that in these efforts, china's financial sector will be much more competitive, the capital markets will continue and accelerate into the market environment will be greatly improved and international property rights will be protected. we will enter a new base of opening up. [applause] five years ago i developed an initiative and now more than 80 countries have signed the agreements with china. it may be their idea, but the opportunities and outcomes are going to benefit the world. china has no [inaudible] imposes no business deals with others. [applause] must point out that as it is a new initiative that is perfectly natural for there to be different views as long as the parties embrace the principle to the contribution of shared benefits we can surely enhance collaborations and resolve differences and in this way it can be a broader platform in keeping with the trend of the economic globalization and to the greater benefit of all of our people. [applause] la

the biggest issue of our time in my view is china. for the first time the f.b.i. and cia accuse china of using a global web of spies and informants to harass intimidate and neutralize anyone daring to speak out. on steve cho on this episode of one of those yes how far will the money go the sun it's pretty. toronto canada is a world away from china. when democracy activist should have fled here seeking asylum she believed she was finally free from the watchful eye. 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

at the bottom of this hour. china loosened restrictions across the auto sector, scrapping a 50% ownership cap. kevin buckland has been tracking the story. likely to seee foreign carmakers changing their strategy in china after this? >> yeah, that is a good question. changesd not see immediately. that is what the companies have said. , and thee a timeline certain aspects of the industry will be affected sooner than others. regular passenger vehicles, not until 2022 that the rules change. for new energy vehicles like electric and battery-electric vehicles, it takes effect this year. , tesla could be one of the first to benefit. to build a trying factory in shanghai for about a year and has been stonewalled, so it could be a big and if it for them and a drag for the chinese electric car players like byd who would face bigger competition. basically what sums up the feeling among the global automakers is things are going well in china. the relationship with joint venture partners is good and business expanding and there is

between the u.s. and china earlier today the vice finance minister told me china doesn't want to see a trade war but it also will not step down. this is what he had to say >> china will not yield to the outside pressure we hope based on mutual respect we can find a way to solve the problem. >> this is a $50 billion package, so it's tariffs on all of these types of goods. 106 items, 25% tariffs, some of the goods are things we've talked about in the past, beef, autos, aircrafts and soybeans. i asked about soybeans in particular because china needs american soybeans and buys so much of it he said that's true that china does have a good relationship with american farmers and hopes to continue to have a good relationship with american farmers, but at the end of the day china is always buy from someplace else i also asked him about a question that's been lingering in the markets, in the bond markets on whether or not china would consider scaling back on u.s. treasuries as a way to retaliate. he quoted the premiere h

as the second biggest in china, that it could increase costs. soybean futures fell as much as 5.2% thursday in chicago, and the most in nearly two years. we are seeing some of the losses ease, but the move carries economic and political weight for trump given the backing he gets from agricultural states. you so much for that. the first word news with paul allen in sydney. paul: the trump administration has indicated it is willing to negotiate with china as trade tensions escalate. beijing has announced reciprocal tariffs on a range of drawbacks in line with the $50 billion of duties ordered by president trump. china is targeting soybeans, automobiles, chemicals, and aviation and says the measures will take the place -- affect when the u.s. institutes its own tariffs. >> china is not going to back off from its 2025 program. it will work very hard irrespective of american tariffs to make sure they and china develop their future technologies. we are not going to be able slow that down very much. it is true, some of their practices in pursuing that 2

the industry is in agreement that china is leading the way in immobility china's policy is very much committed to electric vehicles. all the government rules and regulations are towards strengthening electric cars electric car production beyond electro mobility their central government wants to be a trailblazer in autonomous striving to that's why folks wagon has just opened its new future center in beijing their vision is a car that's a lot like a smartphone on wheels with our future center we combine vehicle design use expenses and but also future mobility concepts to really understand chinese customers customers here in asia and we actually see differences in the oven mobility developing here. the daily traffic in beijing shows just how important new traffic concepts are for most of the day millions of cars here are stuck in traffic jams. for more let's bring in macon to get out see he is the head of the china policy program at nottingham university and he joins me from name bold china this morning welcome to. after years of explosive growth car sales i

maybe this is the time to push on china? ir in light of been asking i have whether additional tariffs would be appropriate under section 301, and if so, to identify the products upon which to impose such tariffs. tariffs to bea discussed will be subject to public comment, like the original $50 billion trump has suggested. robert lighthizer says any extra china tariffs are subject to that public comment. should we be surprised. i am not sure. when donald trump spoke at this event, he said xi jinping is my friend and we have a great relationship with china, but china has to taking advantage of america on trade. his key man on trade, peter navarro, also said high-level talks are being prepared with china, because it is time to stop aggressive attacks on the u.s. larry, speaking to bloomberg knows china has not played by the rules. donald trump is leading. i think the trump team feels he is leading this charge, supported not just by the u.s., but other countries who feel china has taken advantage. rishaad: talking of china, sayin

the largest fleet china has ever sent into the south china sea, and it's a demonstration of beijing'schallenge america's dominance. on board the uss roosevelt, the strike group commander is unfazed. there is no doubt that aircraft carriers make a statement where they go and statement there is that we are a professional navy and we are here operating as we think everybody else should as well. and we will continue to do so. we will continue to oeprate in the maritime and the commons throughout the world, exactly right. but the geography of the south china sea is changing, literally. two years ago we filmed these huge new islands being built by china on three coral atolls. the latest photos show those islands are being turned into advanced military outposts. i asked the commander of the us fleet of how concerned he is. unfortunately i think we are left with a wait and see, without that clarity of what exactly is the intent of the establishment of such a significant military presence that can really influence the freedom of navigation throughout the south china sea. it will be a long time

the sun it's pretty. toronto canada is a world away from china. when democracy activist fled here seeking asylum she believed she was finally free from the watchful eye of chinese authorities. now she says she was wrong. i saw that i had 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 a home. one time once thirty i was working on my computer and i saw a car just passing by. its ok then the car coming back an

on top of this, the u.s. and chinaach other with the potential for trade restrictions. it hasn't turned into a full-scale war yet, but we can't write off the fact that it is a possibility. are lots of things bubbling under the surface, which investors will need to pay attention to. anyone of them could affect sentiment. there is still a lot going on, but central bank is probably at the top of the list for what to look for in the second quarter. rishaad: we saw a bit of a miss for the tankan survey. a revision for the fourth quarter of them out of hot water. mark: indeed. it is a bit of a wash really. they improved most of the numbers. the first quarter was a bit of a mess. closel, the numbers are to the highest we have seen in the past decade. the japanese economy is in pretty good shape, although the bank of japan will probably look at it and say it gives us another reason for continuing with this monetary policy that we have had in place for a few years. there is no reason for them to step back. on top of that, you h

the cost. and no not going on in their job. in china. will seem to be challenging the government quickly feel the heavy hand of state security the chinese government has to tour to manipulate to the people and one is the violence. and. now democratic countries warn china is carrying out its system of control and censorship one of the biggest issue of our time in my view is china. for the first time the f.b.i. and cia accuse china of using a global web of spies and informants to harass intimidate and neutralize anyone daring to speak out. on steve. sort of want to be asked how far will the money go the sun it's pretty. toronto canada is a world away from china. when democracy activist fled here seeking asylum she believed she was finally free from the watchful eye of chinese authorities. now she says she was wrong. that i have escaped from defeat and i was going to enjoy it. commemorates democracy and the rule of law but i realized that they are here. their people their network their paul war everything for. sure became one of china's loud

more on the u.s.-chinarade spat ahead when we asked be him oh capital markets -- bm capital markets whether there is opportunity among the risk. haidi: later, the details of apple's plan for foldable screens and the touchless iphone. this is bloomberg. ♪ >> i do think we have entered a new era trained china and the u.s., but i am not expecting this to be the in game. i think it is the beginning of the negotiations. so much focus on whatever probability you want to put on an escalation in the trade war. morecould end up being than incrementally positive for growth and risk assets if you move away from the rhetoric of increased tariffs and have a negotiation around lowering existing tariffs, which is a reasonable outcome. with this increasing the way we can address these fundamental issues rather than applying tariffs to each other is clearly the better way. it is going to be in everybody's best interest. it is not just the disadvantage of the emerging economies. it is bad news for everybody. ramy: we have a

the growth story out of china. nus: all of that, you have been away for just a short period of time. if you think the two months there has been in europe, i think they waited until you went somewhere warmer. the bottom line is we have had strikes, tariffs, rhetoric, more tweets than you can throw at the s&p 500 on an average day. the bank of america merrill lynch index -- back below zero. this tracks global equities, commodities, currencies, a basket of risk elements. we are subzero. 55% below the five-year average. that is critically important because negative readings mean less stress in the market. yes, the u.s. equity markets have sighed relief. the s&p 500 has its highest level in months. it is back to black for the year. we have wiped out the loss for the year. the question is for markets whether this is a precursor perhaps a little bit more continuity in the market. everything is thrown at this market and we are getting into earnings season which we will talk more about the the next hour. losses in thehe last

the boot. kim jong-un pays a surprise visit to china, while the u.s. and china tangle over trade. >> i think if it keeps going, this could be very disturbed. >> i hope the temperature can be taken far down on both sides. >> we could have an impact on global gdp. >> imf managing director christine lagarde tells europe to get it together in the capital market. director lagarde: they came to a close accountability, but is still short of what is needed. host: it is all straight ahead on "bloomberg best." ♪ abigail: hello and welcome. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with the day by day look at the top headlines. the week began with western allies uniting to punish russia for a nerve agent attack on a former spy in the u.k. >> the west clamping down on russia in a coordinated response to the alleged chemical attack in the u.k. earlier. the european council president donald tusk said 14 countries would expel russian diplomats. >> t