we applaud the results of the u.s. china summit and will closely strengthen our cooperation with china. if north korea commits another provocation, we will swiftly implement intense punitive measures. [speaking foreign language] >> at the same time, in response to north korea's continuously advancing missile threat, we have agreed to pursue various for extended deterrence. posture of thess u.s. alliance in response to north korea's growing threat by ensuring the early deployment and operation of the us system. language]ng foreign >> in this respect, i appreciate the united states taking a clear position on various occasions, including the u.s. china summit with regard to china's connection with u.s. deployment of thad. we agree to work together so that the actions may come to an end at an early age. language]ng foreign >> furthermore, we fully share the view that in responding to and resolving such critical issues, the watertight collaboration of our two countries is of the utmost importance. all future policies and measures

u.s./china relationship. as we all know, donald trump and some of his key advisors have targeted china for a slew of what they characterize as unfair practices which they claim have stolen millions of u.s. jobs. the rhetoric took something of a turn for the more dramatic, particularly after his election when president elect trump tabled the so-called one china policy alongside trade issues saying it could be a bargaining chip as part of a larger trade and economic negotiation. after some weeks that very tense turn in the relations reached a sort of tenuous thaw, first with a call between president trump and president xi jinping of china, most recently, of course, there was the first encounter face to face between the presidents at mar-a-lago this past thursday and friday. we're speaking right on the heels of that very important first meeting. of course, it was changed quite dramatically in its complexion by the u.s. action in syria last week. we'll talk about the effect that that had among other things. in sho

u.s.-china corporation is so important. -- cooperation is so important. there are not many countries that can put meaningful pressure on the dprk. that is why the bilateral relationship between the u.s. and china is of paramount importance. president nowe a that is keen on implementing tax reforms. is adamant that they are driving the train, in their words. how much of that would fall on the treasury department? have heard the report that offices are empty, positions have not been filled. how handicapped is the treasury department at this point going forward with tax reform? jacob: anyone who looks at the real strength institutionally of the treasury department has to look beyond the political appointees to the civil servants who are there, the office of tax policy is an extraordinary source that i don't think congress could write an effective tax law without, the white house could not effectively work through the process. the secretary has an enormous resource available. what you don't have is your policy leaders. you don't have your emissaries who can go

u.s. to china?eeing with platforms is that you see apparel, fashion goods, mass-market price points. you see beauty products, health ,are products, gadgets electronics, a variety of things are doing well in china that were originally designed in the u.s.. they may have been manufactured in china, but were designed in branded in the u.s.. caroline: let's talk about another of your key investments, xiaomi. the way and having very powerful smartphones at a cheap price point. it seems that the competition is hot at home. when you see the company going? hans: four xiaomi, two fronts. they are the number two and number three in india now. initially to buy a phone in india, you had to go online to buy xiaomi. it took a while for indians to have access to the first smart phone before they could even order replacement phones. it took more time that you see proof of that strategy working out in india. is doing,hat xiaomi they are new retail format is working well for them. they have over 100 stores in china n

u.s.-china relations on an even keel and now you see more disenchantment with china. now we are a u.s. business community that is trough on the chinese. there is no shortage of chinese firms, state run and private, who want to by firms in america that have advanced technology that they will perhaps use in america for a while but others want to bring back to china so they can then compete with american rivals. >> thank you. yes, sir? in the back. >> yes, fantast discussions. are the chinese people learning more about the history of m mal say dong? and the suffering he caused the people. >> in terms of his victory writing in china, we have kind of gone back in time. in the last four or fives years parties launched n attack on what is called historical nealism which is writing about the bad things that happened after 1949. as a result, a lot of issues in terms of china's relations with the rest of the world, how their countries helped china, specifically the most glaring example is japan's role in the rise of 1989, those don't exist in terms of poplar histories available to chinese. the s

>> if china gets acknowledgment, it is the u.s. and china world now, and it's given this sort of credibility. that will play well into president xi's hands going into the 19th congress where he's saying i'm leading one of the world's superpowers. obviously with the u.s., they may want more concrete measures coming out of it. for china, a lot of this is their -- something like what rex tillerson said when he was in beijing. giving them that kind of kudos as a global superpower, that would be going down well in china. that's, i think, the key aim for that side. >> so, how would you characterize the best case scenario? the best outcome from this meeting? if you have the u.s. basically acknowledging, giving them -- giving china. status it thinks it deserves, that would play down well with china if there was some kind of deal for the u.s., where they could go to their audience, we succeeded in either investment or north carolinincom north kor. but it will be down to the relations, and how that plays out. because there's quite a lot of sc

u.s. production practices to be more widely adopted in china. been talkinge about u.s. exports to china. gger story is u.s. producers and their ability to export to the region, to asia overall. president trump withdrew the u.s. from the tpp. how did that hurt u.s. competitiveness in the region? >> in his of great frustration -- it is of great frustration to u.s. farmers right now. without tpp, even though china was in a partner much of the region in general, it cost u.s. exporters an estimated $5 billion of additional income. have access to these markets -- if you get openings from president xi jinping this to talk with president trade, it would be a way to placate these farmers who be like donald trump hasn't had them front of mine when it comes to their trade concerns. let's get a check of the other headlines on bloomberg first word news at this hour with mark crumpton. mark: the kremlin is accusing president trump of rushing to judgment in regards to the apparent poison gas attack this week in syria. a kremlin spokesperson said no verified information is available and he called preside

u.s. or the chinese on this issue. china is still calling for talks between the two sides, and the u.s. ougher stance. most do not expect a major move on north korea from china because they want stability and no big moves on the domestic or geopolitical front, but the clock is running down on this issue. sayingrth korea watchers it is not long now before the north koreans will have an intercontinental ballistic missile that could reach u.s. shores, so tensions are likely to continue to ratchet up around this issue. ramy: tom mackenzie in beijing with the review. ford wants to make most of its vehicles in china fully or partly electric by 2025. we will hear from ceo mark fields on the company's big plans. shery: global markets shake off the u.s. strike on syria. k a chief strategist where the focus is this week. this is bloomberg. ♪ ramy: this is "daybreak: asia." i am ramy inocencio in new york. in hong am shery ahn kong. a south korean court set to resume a lawsuit to nullify the with cheilamsung industries. lee has since been arrested on charges of corruption surrounding the deal. ramy

u.s. and china, hailed as a success.e have the senior director at outright stonebridge group. -- albright stonebridge group. no trade deals, nothing on north korea. so what was the success? >> this is not a surprise. your correspondent earlier said there were no box is checked. that is correct. this gave a chance for the two presidents to establish some kind of connection and to layout the priorities for the relationship and establish some kind of continuity in the relationship. the last month leading up to this, it had been rough, a few rough months for the u.s.-china relationship, but this is back on the positive setting. so that was good. this,i have to bring in because we were talking about xi jinping and trump, and we shifted to the middle east with syria. how does the syria strike impact the relation? anka: nobody truly knows unless you were in the trump inner circle whether this was meant to be a signal to the chinese, but that is irrelevant. in china it is seen as such. the chinese were likely reassessing their t

u.s. ambassador to china and former u.s. commerce secretary to get his insight ahead of the historic meeting tomorrow with president donald trump and the president of china. halfway into the wednesday trading day, abigail doolittle is following what has been going on. averagesfor the major but worth noting that the dow, s&p 500, and nasdaq off of the highest. the dow had been up nearly 1%, on pace for the best day since march 1. now, up six cents of 1% on paper, the best day since march 28. the tech heavy nasdaq on pace for another record high. this could be one reason why stocks have fallen off the highs . before, oil up 1.6 of percent at the peak. it fell negative, a tailwind. it had been a tailwind and turned into a headwind after a government inventory report showed there was a build up inventory that investors had been looking for a drawdown. energy stocks had been the booth for the average of the earlier, now the index -- or that sector is trading lower. true also for the banks. the 10 year yield had been trading at hig

china has one u.s. antitrust approval for a pesticide maker. rings china's largest forest -- foreign acquisition one step closer to the finish line. deal with three pesticides in the u.s. as a condition for the deal. the european union is also reviewing the deal. chinese authorities are under discussion. --pal and visa are extended extending their relationship. years ofs sponsored store transactions. the visa collaboration allows users of systems to choose how to pay. they have not announced where they will roll in out. a chinese company is said to have delayed paying u.s. workers last month. andf were paid on the 15th the last day of the month. the march 31 paycheck was delayed to april 4. we're also told the company involved in moving of money out of china. the founder admitted they struggled to raise the cash. some suppliers said it was behind on payments. says investors should short the dollar on any exposure to end -- energy and banks. he is the head of markets at a&p capital. good to have you with me today. let's look at this chart. i've a

u.s. and china find a way to deal with north korea together? these are the questions and uncertainties that are driving global investors into the safety and security of the u.s. treasury market. trump also said he won't label china a currency manipulator. has he been watching bloomberg tv? >> obviously. how could anyone not watch bloomberg tv? christine lagarde of the imf was speaking with bloomberg television and an exclusive interview. she said it does not make sense as angle out one country currency manipulator. you have to look at the broad spectrum and what is happening. here is what she said. can identify one particular country, because the whole system works together, and when the currency goes off somewhere, it goes off somewhere else, it has to be a zero-sum game, so i think the assessment of currency should be conducted in a very cohesive manner. plans its own currency report in july. in 2015, the imf had said the currency is no longer undervalued could let's look at the criteria that will be assessed and released in the treasury depar

that is why there was so much focus on china, so much emphasis from the u.s.. nald trump started tying trade a trade deal with china to cooperation of geopolitics shortly after his meeting with president xi jinping in mar-a-lago. he tweeted out, let's read the tweet, the famous tweet of what he said about china as a currency manipulator or not being a currency manipulator, "why should i call china a can earn seen manipulator when they were working with us on the north korea problem. --will see what happens to happens." it seems he's trying to use the court of public opinion to entice china in a certain direction, saying we are getting cooperation, so we don't know yet, do we? let me go off script for a moment. do we usually hear from china on this at all? necessarily, but other times the chinese leadership has complained about being called a currency manipulator. they don't accept this, right, but there is so much going on right now in the china u.s. relationship, the north korea failed missile over the weekend. it is a highly fraught situation right now. that's

u.s./china summit, in regard to china's deployment.e have agreed to continue to work together so unfair actions can come together at an early date. [ speaking in foreign language ] furthermore, we fully share the view and responding to and resolving such critical issues, the resolving is of the utmost importance. and that the decisions will be made under seamless cooperation and coordination. furthermore, as global partners, we have agreed to work together to resolve global issues. [ speaking in foreign language ] >> it is meaningful that close cooperation has continued to develop. and i'm confident that today's meeting as vice president pence will serve as meaningful location of the further development of the iraq-u.s. alliance. thank you. >> good afternoon. to acting president hwang hyo-ahn, thank you for your kind words and welcoming us in the republic of korea, in my first stop as vice president of the united states. it's a great honor for me to be in south korea today. and i bring greetings from the president of the united states,

u.s.' hand. china is a very important market to the u.s. that market accounts for about 8% of u.s. concentrated in certain industries, if you look at the importance for aircraft, technology, particularly mobile phones. and the important point to take onboard, as well, is that china's economy is evolving. today, it is a manufacturing and ux fixed asset led economy. but the growth driver of china is increasingly consumption. that consumption market is not something that the u.s. wants to jeopardize and effectively block a market for u.s. goods in the future. >> i want to turn back to admiral stavridis with a final question. i know you think north korea is probably the most thorny issue confronting the two countries. but when u.s. and chinese leaders have met before, one of the issues that has been contentious has been hauman rights. do you think human rights in china will come up at all? >> i do not. not with this administration, nor do i think two other important issues and poeshly very contentious issues will come up. i don't think there'll be any discussion on taiwan or its status

china? a significant surplus with the u.s. ue china has a pretty big surplus with the u.s., the trade deficit is a $47 billion. persistent intervention to weaken the yuan, that is what makes him a manipulator. but actually, they have been trying to hold the yuan steady. christine lagarde said this does not make sense to single out one single currency. you have to look at a system of currencies. she spoke broadly about protectionism and what she is concerned about. >> protectionism is clearly a threat, and one that if it was to be realized, would really be a break on growth, a break on productivity, a break on investment. bothse we are seeing innovation and trade are conducive to productivity. productivity is for growth. see,of the risk that we clearly protectionism is one. the political uncertainty that we see around the world, particularly in the european region, is also high on our agenda. the potential for capital flows moving from emerging market as a result of the reinforcement of the dollar and the rise of interest rates,

u.s.-china relationship and this is an important first step. china be declared a currency manipulator? there is a deadline coming up. had tont trump has moderate somewhat from the issues he raised on the campaign trail, where he was going to label china a currency manipulator on day one, that it was a possibility of a 45% tariffs on chinese products. that will not happen anytime soon and that is better for the relationship as the relationship matures and they get a better sense of each other. that is why this meeting is so important. tom: given what you just said about the one china policy, if we assume the meeting goes well and we get assurances from trump to the chinese side and vice versa, how much faith can the chinese put into any assurances they get from trump, given he doesn't u-turns on things like -- does u-turns. we have the latest on syria and russia, potentially changing alliances there. how can they take any assurances from the white house, given president trump appears to be fairly happy to flip-flop? i differ with your question. i

u.s.-china relations. expected to drop -- expected to address such issues like global trade, one china policy, and climate change. joining me is kevin rudd. he was the prime minister of australia from 2007 to 2010 and again in 2013. he now serves as the president president of the asia society

u.s.-china relations at the asia society. s co-author of "wealth and power: china's long march to the twenty-first century." his recent article in "the wall street journal" is "china's once and future democracy." welcome to democracy now! what do you expect from today's meeting at trump's golf resort mar-a-lago? >> what is sort of alarming is that we really don't know what to expect. and i think that grows out of the reality that trump has no obvious sort of spelled-out comprehensive plan. we have a kind of collision between what trump says and then what more reasonable people in his administration often do. there is a kind of collusion going on between those two to principals, and we will have to wait to see what happens. amy: what about north korea? it seems to be the number one issue -- we can't know what will go on -- but with the ballistic missile once again being shot off? north korea somewhat of a paradox. on the one hand, clearly the most dangerous and pressing issue for the u.s. on the other hand, china has increasing

think u.s. china corporation does have an impact. to cope with the north korea problem, u.s. corporation has increased, and that will probably weaken the pressure of the united states on the chinese renminbi, so geopolitics does affect, particularly between the countries like china and the u.s. we have been talking about currency intervention. at what point do think yen the strength becomes too painful to tolerate? at what point do you see the boj doing something beyond just jawboning? haeadst breaks 100 and -- heads towards 90, there would be concern on behalf of the boj the den has become too strong. if the u.s. feels the dollar is weakening too much, if it is around 90 and so on, then it could intervene, but intervention is only possible when two governments agreed to intervene. just quickly, do you see normalization on the cards for the boj this year? >> normalization of what? haidi: of monetary policy. what policy? i'm afraid we are out of time, but i would take that up with you next time. eisuke sakakibara, mr. yen. ♪ rishaad: 9:29 in hong kong. as usual in shanghai, she

>> china and russia always operated as sort of a push back against the u.s. >> but china and russia notallies. >> not allies in the traditional sense. to the degree they can keep the u.s. occupied in foreign wars and metse messes, the better fo. we need china to work on north korea, we're staying out of their hair, the north china sea, they like us engaged in as many messages around the world address possible. what does this mean for president trump's plan to confront the massive trade deficit with china? >> it pushes it back. he campaigned on that and will continue to talk about that, but the main reason why you did not see much media build up to the summit, you saw very few headlines, there's a major break in the team between those who think you have to engage with china in ord toer to have forei movement. incredible tensions, no decision on it, but this will contribute -- this will be a major factor into the rethinking they'll be doing. >> the view in china of president trump, both coming up to the last 24 hours and with this add development of military action. do people across china

u.s.-china diplomatic dialogues? what would be a major mechanism for bilateral -- mark: i will have to get back to you on that. i aware it came up in the conversation yesterday with president xi jinping, but i don't have further details. reporter: president trump today imposing new sanctions. would you say he will not talk about that on friday, secretary tillerson, just and permitting existing sanctions? the question is will you follow up? mark: without getting ahead of what he will discuss, he will look at how the united nations can more effectively implement the sanctions. and how we can use them to better apply pressure on pyongyang. another element will be new ideas and the possibility of new measures to be taken, and that always include sanctions. reporter: another question on the syria connection? mark: what are you -- let's finish north korea. ok, we are done with north korea? great. sorry. reporter: to go back to the same line of questioning, what thatnce does the u.s. have china has taken steps to put pressu

u.s. president will meet chinese president xi jinping. trump over the weekend thing of chinaoes not deal with north korea, we will, alone. back here in the u.s., geopolitical risk always in the background for investors. equities close with little change. they were weighing in numbers iss morning, joining us now elena. staples in takeover talks? >> that is right, growing 8.9%. the wall street journal said it is in buyouts with companies. walked awaycompany from home depot when a federal judge blocked the deal. fast-forward two months, here we go again. this comes one month after less thanported satisfactory earnings, a 7% decline in sales in north america. they will close 70 stores in the region. it certainly was one of the big movers. what is the market sentiment in the u.s.? this is after one of the best quarters since 2015. elena: the markets are assessing where we had -- head. some of the reforms proposed by donald trump, we have yet to see if this is going to happen. investors are pausing while they wait to see what the next direction is. we will look at the data in the n

u.s.-china relations. china is an easy villain for us from economic rhetoric standpoint. the meeting with president she seemed to have gone very, very well. using debit plan going forward. talk about what that plan looks like and how to seek u.s.-china relations developing? >> and meetings with great. i thought the meetings went great. we had 24 hours of pretty intense meetings, big group, two big group meetings. and then we split into two smaller groups which was probably the most productive time. i was part of the very small group talking on trade where we really got down to nuts and bolts issues on trade here that was a meeting when we talk about service trade industry and opening up china for our service business, not only the ownership of what they would have to do with intellectual property rights and software and data storage and all thei all the run having software stored on continent and data stored and localization versus international standards, and changing import/export rules. we've agreed to beef exports for a long time and they haven't happened. we've got t

u.s. trade deficit and china's trade surplus. u.s. tolen from china, donald trump said this on the campaign trail he would try to get these back. currency manipulation, themes that china is trying to prop that up and with the trade deficit that is a sticking point. anna: thank you to the bloomberg team. up very late, very early, palm beach in florida and dubai. manus cranny is at the sixth annual wealth management summit. not escaping the attention of all of those gathered there at this summit. take us through reaction of your guests. manus: great to see you this morning. i got the head of absolute, and jpmorgan asset manager. welcome to the show. he has called for this isolated track -- attack into syria. , i ams bid, treasury surprised there has not been a stronger reaction. 2.287. >> i think it tells you how rich the treasury market is already when you can't get much of a reaction out of u.s. treasuries from a fairly surprising event in syria, which is donald trump releasing tomahawk missiles onto an airfield that there. it doesn't

doesn't china have a pretty big stick here in that you know, so many u.s. have to do business in china through partnerships, to you think of gm or caterpillar, just as a couple of example, doesn't china just have the ability to turn off those partnerships if they get angry at donald trump and sell their products themselves? >> that's right. if you're a big entity, you have to join venture with someone someone else over there. it's kind of a dirty space. but too bad. jim o'neill said it the same way, they sell more ipads and iphones over there than they do in the u.s. they might be like uber. i'm wauorking at a taiwan accelerator. getting into china is a pig deal to solve you know crop. same with the u.s. every product you can force feed down to china's consumer, who is eager to buy, is something that should be an aggressive strategy. >> appreciate the time. thanks for being here. >> halftime report back after this. remember here at ally, nothing stops us from doing right by our customers. who's with me? we're like a basketball team here at ally. if a basketb

china, and what the u.s. can learn from this. my: china's consumer and factory prices are out later in two hours. we will see what that means for the markets. ♪ ramy: welcome back, this is daybreak asia, i am ramy inocencio in new york. shery: i am shery ahn in hong kong. toyota warning the u.s. auto market has peaked and will shrink this year, despite unprecedented incentives to attract buyers. the u.s. sales president bob carter says it may fall from 17.5year's record, million. toyota discounts are at the highest level ever after they declined in the first three months this year. ramy: yahoo! is being sued in the u.s. for allegedly failing to keep the promises they made to chinese dissidents in 2007. that includes financial and humanitarian efforts. they said they help the chinese government find dissidents, who were later jailed. yahoo! declined to comment on those allegations. are expecting inflation data from china in two hours. in march,up slightly rising 1% on the year. economists we spoke to found it down to 7.5% last mont

u.s.-china summit. we have agreed to continue to work together so that these actions may come to an end. furthermore, we fully share the view that in resolving such issues, the watertight collaboration between our two countries is of the utmost importance. and that all future policies and measures will be made between seamless cooperation and determination. furthermore, as global partners we have agreed to work together to resolve global issues. it is truly meaningful that close cooperation and collaboration that continues to develop the new administration. i'm confident that this will serve as another meaningful occasion for the further development of the rock u.s. alliance. thank you. vice president pence: good afternoon. to the acting president, thank you for your kind words. thank you for the hospitality you have shown me and my family and welcoming us to the republic of korea. my very first stop in the asian-pacific as vice president of the united states. it is a great honor for me to be in south k

china. so now the washington post talked about how the u.s. be able to use the rule-based system to get china to play by the rules. they said the white house has a strange focus on bilateral trade balances. this is not a great measure of because the u.s. has world reserve currency, china imports parts of a third country and then assembles it in china and sells it to someone else. does the u.s. risk discrediting itself with the trade balance as a metric by which to judge? that economick theory and the practice of economics, you need to think about trade relationships in many different dimensions. the trade balances are obviously one of them, but global imports, growth of exports, and the current account. by any metric, i think it is clear that china does need to take more steps to allow foreign competition inside the market, to open to foreign investors and be more open to u.s. and other exports. nextyou anticipated my question, because we are talking about china playing by the rules and all of these things. what are specific things that china

i think he's right to reopen the dialogue with a clean sheet of paper and hopefully china and the u.s. can get on the same page, we all need the korean peninsula to be less militarized and less peaceful. >> we will wait to see. on wall street, stocks were mostly flat ahead of that big china-u.s. summit. investor rrs in a wait-and-see mode, because many don't want the administration to take a protects of staff against the employees economy. the dow jones industrials up 39 points at 20,689 t. others basically flat. nasdaq hired by 3. s&p by one and a third. >>> infrastructure you know is another pillar of the trump administration's agenda. the today the secretary gave a time line, elaine chao said a package may be ready next month. the president says he hopes to have a pack only over a trillion dollars over ten years. >>> richmond fed president is stepping down -- fed president is stepping down over controversial federal reserve information. steve leishman has the surprising details. >> reporter: president jeffrey laquer resigned in that he played a key role in the release of confidenti

u.s. rolls back environmental regulations. china's investigating hundreds of billions of dollars in clean energy, like this wind turbine factory. chinese tech firm into buying u.s. car maker tesla. many chinese are fed up, believed to kill more than 2 million people in china each year, the smog. other countries have experienced pollutions says this man, so we had examples of how to deal with it. the world's biggest polluter hopes to put bad air in the past, as the second biggest now faces an uncertain environmental future. will riply, cnn beijing. >> we'll take a very short break here, but still to come on "cnn newsroom." the honeymoon for the u.s. administration and you shall sha looks like it could be over. moscow is pointing a very angry thing at the pentagon. >> and did russia spread big news in the u.s., using internet troll factories. we have a look at "cnn newsroom." >>> and very warm welcome back to our viewers here in the united states and all around the world i'm rosemary church. >> i'm george howell with the headlines we're

and china. the u.s. needs china as an ally. jon: what does success look like on friday and what does he learn from the chancellor visit several weeks ago? success is some kind of statement about trade. that will be a measure of success. what did he learn from merkel's visit? that interpersonal relation matters. xi dozen fact that play golf might be an issue. jon: every takeaway so far has been of style. no handshake with the chancellor, holding the prime ministers hand. how can he get us on the substance and get the wider media out on the financial news. >> this meeting is the biggest one that trump has had in mar-a-lago. so just the fact that it is china might help the media interest. 's hand?shake xi we will see how it goes. david: by all accounts, president xi pressed for the meeting. what is he trying to accomplish? >> i think it all comes back to the fact that the coordinated global economy is good for everyone. it is good for china and great for the u.s. and we are starting to see that. politics aside, i know it is very i

u.s. and china.ump or to raise tariffs on goods coming from china, that would hurt their ali-express business. that could make it harder for them to onboard u.s. businesses onto their website. going tothat xi is want trump to focus on china as a vast market for u.s. companies to sell goods to, and which could help create jobs in the u.s. caroline: the tech titans have been making inroads into china. i'm thinking apple. as well as their supply chain is so important. they are big players in the u.s. as well. selina: apple is going to be a major player, watching to see what the tone is that comes out of this. he was going to slap some problems on companies that would send their suppliers and workers overseas. apple, of course, have major supply chain networks in china. if that were to be the case, it could significantly raise the productioncost of and ultimately the cost of goods to consumers. caroline: what's fascinating is the amount of money that comes in terms of direct investment from china and als

and its economy, and raised serious concerns about the impact of china's industrial, agricultural, technology, and cyber policies on u.s. jobs and exports. president underscored the need for china to take steps to label -- to level the playing field for china to take steps to level the playing field for american workers for reciprocal market access. the two sides noted the urgency of the threat of north korea's weapons program. they reaffirmed their commitment to denuclearize the korean peninsula and fully implement un security council resolutions. they agreed to increase cooperation and work with international community to convince the dprk to peacefully was all the issue and abandon it -- resolve the issue and abandon illicit weapons programs. the two side came to discussion over maritime security. president trump noted the importance of adherence to international norms in the east and south china seas and previous statements on non-militarization. he also noted the importance of protecting human rights and other values deeply held by americans. the two presidents agreed to elevate existing bilateral talks to reflect

in the case of china, what the u.s. ne has emphasized that china has a very large trade surplus and that continues to be an issue. let's take a look. china has an extremely large and persistent bilateral surplus with the united states which underscores the need for further opening of the chinese economy to americans goods and services. the report also said china needs to continue to pursue a policy of consumption led growth rather than export led growth. it is interesting if you jump ato the bloomberg and look what the u.s. treasury department is looking at. china's surplus with the u.s. is about half of what the u.s. is looking at right now. that is why it has so much emphasis on that. even before last week, trump had started to tie getting a trade deal with china or making steps in that direction after his meeting to cooperation on geopolitical questions. beene yuan has strengthening. is there any surprise by this decision? big surprise but the united states has made it clear. it is great that you are strengthening you

china is trade. look at that. the total u.s. trade deficit $310 billion of it is with china. five times the deficit with mexico. so the president does have a point. america buys way more from china than it sells to china. that puts china is a stronger position, build up its factory floor and take tens of millions of people out of poverty and put them to work. that's the goal to have chinese administration. on some levels there's no question china is not playing fair when it comes to america's companies, claiming their ideas are stolen. when you go to a store in the united states it is full of chinese made goods and so in factories in the united states closed. but is trade the only best measure whether they are winning or losing? the big hurdle for president trump will be his promise to bring jobs back, if they don't import from china, they will likely find elsewhere, vietnam or indonesia. very complicated situation an you wonder with north korea, intellectual property, currency, all these things. >> when you have leverage and your priority must be north korea can you accompli

u.s.-china chamber of commerce. take a listen. ng over trade deficit with china, and all the americans buying goods from china that have become part of the daily life, and consumers will not put their wallets on the table to create a few jobs. so donald trump has been silent about the 45%. there are not many options for him to do. the trade deficit is from goods americans to not want to make. couple of key aims for the chinese was to neuter tensions around trade and to come across as being a strong leader on the international stage, and at least for now, the chinese involved say that has been a success and have extended an invitation to president trump to come on a state visit which shery: will happen sometime this year. we have heard from -- shery: we have heard from the secretary of state that the united states is not looking for regime change in north korea. what do we know? tensions mount over north korea. where we have seen the u.s. navy realigning military assets in the last 24 hours, moving an aircraft carrier towards the ko

u.s.-china relationship progresses. esident does things differently. ,e has said things in the past if china helps the u.s. out when it comes to regional geopolitics, we might help you out in terms of getting better trade deals. these things are not historically, traditionally put together as one deal. it you seeing caution when comes to incoming investment interest in china in this year of political uncertainty? >> yes, indeed. -- we0% of our membership take a survey every year -- over 30% of the membership feel that the investment environment is deteriorating, the highest it has been since starting the survey in 1997, so the companies are seeing, as i mentioned, lack of transparency, i closed investment environment, and also innovation is actually come ironically being stifled by a lot of chinese policies, whether an overreaching cybersecurity law or a lack of ability to have international or even domestic free data flows and things like this. nowi: is the bigger concern -- you talk about the number one concern is inco

u.s. and china.resident claims to be the world's greatest dealmaker. what better opportunity for the art of the deal done to push through on a bilateral investment treaty? all of us were engaged in the u.s.-china relationship would like nothing better than to see something like that. what role does the dollar have to play in this? , again, has rate long been an area of focus for politicians. the president has incorrectly accused china of manipulating the currency. right now they did certainly do that historically, but in the last two years, they have been trying to defend their currency from falling. and of notalse issue great strategic importance to this bilateral relationship. tom: are they manipulating the currency? valid? >> no, it is not. the good news is, the treasury has now given us three metrics to define whether any country, especially china, is manipulating its currency. it is bilateral trade imbalance with the u.s., which is large. its current account, surplus with the world, which was la

u.s. and the bank of china became a roman declarant's settlement bank in the united states. also, i want to emphasize that they would welcome a u.s. another man be clearing bank -- another renminbi clearing bank. that is a very good work. i will continue to work with the bloomberg working group and to see in the future that we can work together to make this process more successful. the opening for china financial markets, colleagues are mostly interested in the fixed income market as well as the equity market. and i would say that we are basically that and we in the onshore market, we opened the china bound market to overseas investors and we introduce the more investment products such as hedging and making it more convenient with the risk. we open the market more. so that has been making a study the fixed income market. year,, i the end of last there are already over 400 foreign institutional investors investing in china. with a total investment amount of more than 800 billion yuan. but as i said, because of the astory and they were still lot of red tapes. a lot of the inve