sea between china and japan and the south china sea between china and a number of its neighbors that i think we need to keep a close eye on and those are potentially emerging as more likely focal points for a crisis even than taiwan, i'm afraid, but you know, again, with that said i think if we can try to keep the military-to-military relationship on trk, a lot of that rests on the chinese side, because i think it's a safe bet that at some point in the future, the united states will, again, have a visit with the dalai lama or sell arms to taiwan or do something that frustrates and upsets. the chinese and it's going to be up to them at that point to decide if they believe there's enough value in maintaining that security cooperation and military-to-milita relationship to try to see it through the next rough spot in the relationship. and we can't really do very much but encourage them to see some mutual benefit in that and hope that they will. >> i would say that when we were designing the east asian strategyn the pentagon 15 years ago, when i was in that office, we took account of thi

a summit of leaders from brazil, russia, india and china is to be held in china next year. chinese foreign ministry spokesperson jiang yu said on tuesday that south africa will attend next year's summit. >> translator: south africa's participation would be useful and enhance cooperation among emerging countries. >> she also said china's president, hu jintao, has already contacted south african president jacob zuma on the issue. the first summit meeting of bric countries was held in russia in 2009. the leaders shared a critical view of the western-led global financial system. economists believe that by inviting south africa, china and other emerging nations will have a greater say in world finance and topics such as climate change. >>> china says it will cut its rare earth exports next year, a move expected to further push up prices of the minerals used in high-tech products. china's commerce ministry said on tuesday that it will reduce the first round quotas for 2011 by 35%, to 14,400 tons. the quotas are believed to be for the january to june period as the ministry release

where they grew up in china. their exposure to the rest of the world and educational opportunities in recent years. so i would say first of all my friends in china like to say-- in china we also have politicsment you guys forget that in the united states. so they have 2012 week we have 2012 although the process is a little different. but nonetheless. >> rose: at the local level are there in fact free elections. >> i think you see experiment ating with dem october see. but what are you going to see is enormous turnover in 2012. so the stakes are extrea extread-- exceedingly high. so if you take the ruling body, the standing committee of the politte beforeo and conclude that seven of the 9 seats, the board of director so to speak will be turning over. i think that is unprecedented in recent years and you look at the central military commission and assume that maybe 7 or 8 of the 12 seats will turn over there, steaks are very high. >> rose: are we seeking out those people, not the group in pober but the next level a

>> china could settle this whole situation with a phone call. north korea is petrified of china. they could settle it with a phone call. but they don't want to settle it because they're tweaking us. when i look at the job numbers and i see what's going on in china where it's booming, you know why it's booming? 'cause they're making all of our products. >> steve: we don't make anything. >> we don't make anything. we do health care, but that's not like making health care. that's taking care of our sick and people. but we don't make anything. when i order curtain walls for buildings and order furniture, not that i want to do business with china, i've done business with china and i don't like it. these are sharp people that are looking to do damage to this country. they could solve north korea in

china the rise of china is no longer an obstruction. it's not a provocative phrase for writers and scholars and policymakers to sort of sit around the table and anticipate in the future. it's as present as those remarkable skyscrapers that rise in pudong across the river over shanghai or as pronounced as the remarkable pageantry of the olympics that we all witnessed recently. china's economy is now, it is the second largest in the world and moving rapidly towards claiming the number one position. it's grown almost 9% this year alone despite a global recession that has left our own economy stuck in neutral and with this economic growth, make no mistake, there has been a huge increase in china's influence in the middle east. in africa, and latin america, across the globe, and to the awareness of all and the consternation of some, china is now bolstered by a military that is increasingly capable of projecting power throughout asia. now, while china has worked hard to orchestrate a peaceful rise, inevitably this emergence as a world power h

we are looking at clear skies again across china. and for most of eastern china, that is, but in the north there's a little bit more snow coming on in. that is going to be spreading across northeastern china, intensifying as we get through thursday and head in toward friday. so heavy snow in the works for you here. for japan we are looking at mostly clear skies on the eastern side of the country, but it gets a little bit wetter on the western side. a lot of moisture coming in off the sea of japan, and it is said to bring in some stormier weather. strong winds, high waves. coastal areas, you do want to stay on the watch for coastal flooding and of course some strong thunderstorms could be developing today. as for highs on thursday, 14 in tokyo, 2 only in seoul, and then 5 degrees in beijing. we're expecting highs to get up to 17 in chongqing. now, across north america it is remaining a little bit messy in the west. strong rains remain. snow for upper elevations. also an area of snow breaks off in central canada and moves in toward the

china the rise of china is no longer an obstruction. it's not a provocative phrase for writers and scholars and policymakers to sort of sit around the table and anticipate in the future. it's as present as those remarkable skyscrapers that rise in pudong across the river over shanghai or as pronounced as the remarkable pageantry of the olympics that we all witnessed recently. china's economy is now, it is the second largest in the world and moving rapidly towards clming the number one position. it's grown almost 9% this year alone despite a global recession that has left our own economy stuck in neutral and with this economic growth, make no mistake, there has been a huge increase in china's influence in the middle east. in africa, and latin america, across the globe, and to the awareness of all and the consternation of some, china is now bolstered by a military that is increasingly capable of projecting power throughout asia. now, while china has worked hard to orchestrate a peaceful rise, evitably this emergence as a world power has r

china called japan's it new strategic stance irresponsible. china reaches out to pakistan. the chinese premier offers economic and political support in islamabad. welcome to "gmt." a world of news and opinion. also on the program -- zimbabwe's fragile coalition government under severe strain. does mugabe want elections early next year? shia muslims are around the world marking the holiest day in their calendar amid tight security. it is midday in london, 5:00 p.m. in islamabad and 9:00 p.m. in tokyo where china's growing power prompted a major shift in military strategy. the japanese government announced plans to overhaul the fences, with an emphasis on china's military buildup to the south, as china looks to tie it up billions of dollars of trade deals with pakistan. more from islam about in a moment but forced the report from tokyo on a move china is already calling irresponsible -- more from islamabad in a moment. >> japan is reshaping its defense in response to the shifting balance of power in asia. cutting the number of tanks in the north and expanding forces in the so

>> we have no plans of selling our product to china right now because the demand outside of china is so great. we are focusing our marketing efforts on japan, the united states, and the european union, the three largest use areas outside of china. >> what's your take on the future rare earth market? >> a metal that is used in nickel metal hydride batteries, which are associated with the hybrid vehicles, and the use of rare earth permanent magnets, particularly the neodinnium iron boron magnet, those two segments within the rare earth sectors are expected to grow at double-digit growth rates for the foreseeable future. we have our own internal analysis, and we also look at the analyses that are done by third parties. everybody is of the same conclusion, that this is a demand -- the demand in the rare earth market is going to be growing at quite substantial rates. >> well, thank you very much. >> it's my pleasure to be here. >> thank you very much. mark smith, the ceo of molycorp, a u.s. mining company. >> thank you. >>> all right. and here's the latest market figures. ♪ ♪ ♪ >>>

china's economy helped heat up the global economy in 2010. it is now considered number two in the world, outpacing japan. the hottest event in china this year was the shanghai expo, more than 200 countries participated and about 73 million people visited, a record high for a world expo. and make sure you stay with "newsline" in 2011. we'll continue to keep you up to date on the hot stories from around the world. >>> now some of the news received from broadcasting stations across asia. we begin with this item sent by rtn malaysia. mala to double their trade in five years from the current $16 billion annually. the agreement was reached during a meeting between malaysian prime minister and the south korean president lee myung-bak in kuala lumpur on friday. the leaders also agreed to explore the possibility of signing a free trade agreement and inked two memoranda of understanding to boost cooperation in research and development and renewable energy. >>> sri lanka's navy has organized various events over the past days to mark its 60th anniversary

-china currency dispute. the clip appears in their web-based newscast. ♪ from the mao to the deng to the jiang to the hu ♪ ♪ you think you can keep on telling us what to do ♪ >> reporter: when wikileaks began releasing u.s. diplomatic documents, next media dramatized the news in this fashion. its founder snatches secrets from the u.s. embassy. at the united nations the world's diplomats. more than 250 young creators produced the animation in their taipei studio. animators have stockpiles of digital faces to match the newsmakers. they can also imitate their voices. and actors in motion sensor suits mimic their body movements. the team tries to create imaginary scenes with a touch of reality within three hours after getting the news. from taipei jimmy lai now joins us. mr. lai publishes the newspaper apple daily and others in hong kong and taiwan and launched next media animation. mr. lai, thank you for being with us today. >> thank you. >> what are you trying to bring to the world by starting next tv?

our correspondent reports on how china has been affected by the leaks. >> north korea and china, allies. it has been issuing grown weary of kim jong il? wikileaks quoted one chinese official as saying that p'yongyang's posturing and missile tests was acting like a spoiled child. another said the north has little value to china as a buffer state. the reality is the cables are on closer reading just diplomats chatter, not a change of policy. there may have been some awkwardness for north korean and chinese officials on wednesday. both sides know that china continues to back kim jong il's regime, propping it up economically. >> north korean leaders are all paranoid. they are always suspicious about china. they will have read the information and will make them more suspicious, but they need china more than ever, so they will not ask china about it. and if they do, will explain that it is just diplomatic gossip. >> damaging in china's eyes is the cable clamming hacker attacks were ordered by the communist leaders. there is no proof, but just the suggestion is highly sensitive. another cable

south china sea. it marshes a stark contrast in the region of a few years ago. >> china has gotten cocky of late, and you pay for cockiness. china is, i don't think, an expansionist power and it is self-absorbed with its own trouble. >> rose: who do you know it's not an expansionist power. >> it has never been in history. it's unlikely to be. it is very absorbed with its own problems. if you would look at the life of the average chinese minister over a month, most of that work, is of course, about internal problems. but as in all rising powers, you have the suspicions-- special if the suspicions are fully fueled by-- by let's call it declaratory or cocky behavior, neighbors notice and they don't approve. >> rose: how about this? this is an economist for november 13. i think this is just out. buying up the world, the coming wave of chinese takeovers. which is exactly your point, which is globalization. >> yes. that's why i think it is becoming a much more developing country concept. >> rose: china has

>> it's all about domestic politics in china. specifically about politics at the very top reaches of power of the chinese communist party. in recent years the internal security police and the propaganda department and the military have become very powerful interests within with the chinese communist party. the security police and the propaganda department lead this charge, this campaign against liu xiaobo-- zibo. the second factor is that the campaign for power has become in china. in 2 years there will be the 18th party congress. there will be a major leadership transition. and the campaign has already begun two years before the actual turnover of power. and the people who are competing for power believe that these hawkish stances towards the west, especially the united states, are ways for them to win points. >> woodruff: gordon chang, what would you add to that? is that what you see going on there? >> i think it certainly is. because in this run-up to the leadership transition that susan talks about, it's very difficult for le

if there is a threat of apprehension, it is because the china that i saw 40 years ago was a china that communism had changed very little in the previous 50 years. i could get onto a bicycle and cycle into central china. in three minutes. that was an enchanting place. it was an enchanting kingdom. i loved it. during my second assignment in the 1980's, when they say that the door was open for foreign investment, the china that loved mao tse-tung was a far more agreeable place than the china that worshipped the dollar. of course there is no argument that the chinese people are vastly better off than they were with the fact that they can afford to buy $1 trillion in american debt. they are changing the entire configuration of the world we live in. that is very good for the people of china. it will present us with a whole manner of problems, certainly. but i am speaking only of the experience as a visitor. i think i will have a strong nostalgia for the china of my youth. >> what kind of grade would you give mao tse-tung as a leader? >> as a guerrilla leader? >> why did they adore him, if th

china is now the world's biggest auto market. the government's 12th five-year plan sets a goal of raising annual output of automobiles to 25 million units within five years. spending on infrastructure like highways and railroads revitalized not only coastal cities, but inland provinces, spurring growth across the country. china is now leading the global economic recovery. once called the factory of the world, china has emerged as a market of the world. earlier this month, the asian development bank raised its estimate for china's economic growth this year from 9.6 to 10.1%. china's surplus and foreign reserves of $2 trillion are prompting ever louder calls for beijing to let the yuan appreciate more. its rapid growth is causing problems at home and abroad. rising consumer and property prices, income disparity and rising greenhouse gas emissions. economic success it seems comes at a price. as the economy grows, china faces so many challenges. we are seeing social unrest, very big gap in the income. what is your take on all of thos

they are mainly from china and south korea. this is their chance to meet representatives from 16 of japan's leading trading houses and manufacturers. japanese companies have been looking at foreign students recently. they want employees who will help globalize their operations. >> translator: they delivered their presentations with great enthusiasm. i feel this it kind of eagerness is lacking in japanese students these days. the participants are willing to go anywhere in the world where they can make a contribution. that is the kind of passion we need. >> reporter: one of the candidates at this job fair speaks all languages. japanese, mandarin, korean and english. all of the students here are determined to work for a company in japan. they were given time to explain to possible employers how far they intend to use the skills they learned in university. >> translator: i want to contribute to japan/china relations through business activities in the future. i hope to introduce more excellent japanese products and services to china

china town has a large older population. more than 30 percent of china town are 65 and older twice the rate of san flrancisco population. how do we get the home bound seniors eshg vac wait. how do we find out if they are okay? another thing is language and cullural issues. a percentage of china town residents are what we call linguistically isolated meaning no one in the household age 14 or older speak english well. what this means is that all our response plans have to keep in mind that factor the signs and volunteer workers need to community in cantonese and mandarin. our trainings have to be cond t conducted in multilanguages. we convened a preparedness committee composed of organizations in china town. includes the we are fortunate to have 3 medical facilities in china town. chinese hospital. public health center 4 and we also have northeast medical service. these 3 organizations are part of our response network. we have the senior care organization such as self help for the elderly. senior health. the housing service li

let me take you through examples of what china is doing. take the coal industry in china. china has a lot of old inefficient plants. they said, this is polluting our atmosphere. we will close them down. in 1992, they bought two 600 megawatt generators better called ultra supercritical. they're working at the highest temperatures possible, commercially. they bought them from abb, a european committee, and g. they started operating them. in 1995, it established a research centers, and said, okay, this is the best of the world has to offer. this. can we make it better? between 2000 and 2004, began to build and install and operate the first indigenous supercritical plant in china. by two thousand five, it did its first export -- by 2005, it did its first export. it holds the record for the highest efficiency coal plants now. when they started doing this, the president of the china hunan group, the largest power generating company in china said they should look at this from a purely financial perspective to represent the future. having said that, now they can build these power

china is our greatest trading partner. >> reporter: a subsidiary of one of china's leading motorbike manufacturers, traxx, started in the city three years ago. the company is focusing on small motorbikes that are popular with customers. it has expanded its dealership network to more than 120 outlets around brazil. the president of the company would not agree to an interview on camera, but the firm says it hopes to attract consumers by offering cheap loans and to expand its market share to 10% by the end of next year. the share of chinese motorbike makers in brazil is still very small. but japanese companies are weary of china's steamroller tactics. >> translator: china is our greatest threat. most of the companies here, except for one japanese maker, are chinese. the quality of chinese products will improve with time and experience. china is catching up. >> reporter: japanese companies face a challenge of an emerging china that aims to become the world's largest economy. eigo suzuki, nhk world, manaus, northern brazil. >> in our series china rising will continue on monday on "newslin

. >>> china's foreign minister says that china remains neutral on the korean issue and is working towards calling attention on the korea -- calming tensions on the korean peninsula. he made the remarks at a forum attended by foreign diplomats based in beijing on wednesday. >> he stressed the importance of not enflaming intention and ask that the country exercise restraint. diplomatic sources say china will send two senior officials, one state counselor in charge of diplomatic affairs. and a special envoy on korean issues to the north. >>> observers say yang's remarks were aimed at rebutting criticism from the international community that china acts in favor of north korea. the u.s. naval fleet is taking part in an annual exercise with japan's maritime self-defense force. the uss george washington aircraft carrier is sailing towards waters near okinawa being accompanied by the uss shiloh, able to shoot shoot down ballistic missiles. this is based on the asums that north korea will launch one. a spokesperson said the u.s. will continue to work closely with south korea and japan and will be

official has again urged china to exert influence over its neighbor. u.s. deputy secretary of state james steinberg spoke in washington on tuesday before an expected visit to china. >> in the context of our interest in a stable and secure and denuclearized korean peninsula, china has a critical role to place, and we look forward to working together in a way that can demonstrate to all that our partnership is effective. >> steinberg also said the united states does not consider it productive at this point to convene a meeting of delegates to the six-party talks, as proposed by china. he stressed north korea first needs to take concrete steps toward denuclearization. >>> a british court has denied bail to wikileaks founder julian assange and kept him in custody for possible extradition to sweden on sex crime allegations. assange appeared before the steve westminster magistrates' court in london on tuesday after turning himself in to scotland yard earlier in the day to face a swedish arrest warrant. the 39-year-old australian told a british judge that he does

and china wants to dampen its economic growth. who knows how this will affect german companies. >> looking at several market indices in more detail, we stay in frankfurt. we see the blue chip dax index closed up about 0.6%. the euro stoxx 50 was actually down just a tad. in new rk, investors are weighing the impact of stronger consumer sentiment data at of the holiday season. the dow closed the trading day nearly unchanged at 11,391. on the currency markets, the hero is ready for $1.30 two cents25. ireland has the bonuses of its bankers in its sights. it is already bailed out the banks to the tune of tens of billions of euros. now dublin is trying to get a little bit of that money back, with 90% tax o bonuses. this move comes after reports that the near bankrupt allied irish bank wants to pay out 40 million euros in bonuses to executives. the move has been met with outrage. the new tax will not actually affect those bonuses, because they were laid to work done in two dozen it. a spokesman for the main opposition party has called f

in china and what they described to me is that they've got a similar chinese. lee you've got the chinese government being more oppressive perhaps than it has been for many years in its response to freedom of expression in response to journalists and at the same time you've got this burgeoning force of the internet with so many hundreds of millions of people online and it makes it very difficult you cannot control all those people i think it's fascinating that mark zuckerberg is now facebook is now making overtures to the chinese equivalent of facebook in an attempt to link up there because you see the challenge to governments maybe in those social networks rather than the avert the political bloggers and the wiki leaks and so on they will get the big scandals or they'll try to they're the ones you can identify there's a deeper cultural change going on in places like china as they become richer as they become more individualistic and so you start to see a lot of the protests or the the grumbling and the criticisms happening through the social networks where peop

. >> china has been very cautious. they decided to move with open and trade -- the enterprise system. trade, commerce, moving around, competing in business that, sort of thing. they decided to keep tight control by the communist party or the political system. and i think in the future, it is inevitable that china is going to have to liberalize their democratic system, as you probably noticed, 23 of the top chinese leaders, some of them out of office now, wrote a letter to jintao recently condemning the chinese government for tightening up on free speech. tavis: there are president carter's thoughts. you of course talk about it in this book. it is impossible to have this conversation without talking about china. >> i think president carter is right. human rights and democratic freedoms will become a major issue in china over the next few years and i suppose what i'm saying is look, china has made huge strides. they have got 400 million citizens out of poverty. that is a huge success story for them. they worked hard to a

of the superintendent of schools has found a way to flip it and now he has china to their advantage joins us with more after the break. wealthy british style. is no time to. go. market why not. why don't what's really happening to the global economy with much stronger a no holds barred look at the global financial headlines tune into cars report on r g. as the year comes to a close merriam webster has announced the most a looked up word of the year and according to the company the word austerity has left most people a little confused thanks in part of the we're being thrown around a new stories especially stories talking about the e.u. and their debt crisis so in case you're one of those people who didn't know what austerity means let us in light of new austerity means and forced or extreme economy which explains why the word was used nonstop when talking about the world's economic woes and the need to cut down and according to merriam webster the word was starting to become popular back in may when the greek government was working to fight it a massive debt crisis news outlets have

the list includes the bank of china, icbc, industrial and commercial bank of china and japan's yamaguchi bank. one branch was suspended for 14 months for allowing the foreign funds by overlooking insufficient documents. two officials in charge of the operation at that time were fined. the other banks in question have also been partially suspended or fined. the chinese government has been vigilant for the influx of speculative you hot money in an effort to prevent it helping to accelerate inflationary pressures. >>> there's a bid to help finance india's rapidly growing infrastructure. the bank plans to increase the capital in new delhi and mumbai by $120 million. the boosting capital will allow the bank to raise the amount of available loans for client by 30%. the indian government plans to carry out large scale projects to build new roads and power plants at a cost of $1 trillion. major u.s. and european banks have launched lending services in india. the japanese bank said it will try to catch up with those banks by increasing its lending to indian firms. >>> preparations to ring in the

-china relations? thank you. >> on the latter, we have obviously made our decision on wikileaks clear and i am confident that both sides understand the importance of the strategic interest we have been a relationship and we will move forward on that basis. i don't intend to comment on the newspaper stories in do you have heard my views on what i think is the state between us and china and north korea. thank you all. >> join me and thanking deputy secretary steinberg. [applause] thank you for all coming. i would like to ask everyone to please remain seated until our speaker has a chance to leave the room. [inaudible conversations] [inaudible conversations] remarks from india's ambassador to the u.s.. >> earlier earlier india's ambassador to the u.s. discuss how globalization has changed the relationship between the two nations. he spoke at the heritageglobalih foundation. this is 40 minutes. >> now i would like for all of you tom join me in welcoming ambassador meera shankar who can shed some new lights

mixed messages, china is. and my hope is that after my trip, we are able to assess maybe ways this we can get some engagement going, but more importantly, to get the situation defused here, because it is intense and tinderbox, and important that you get new voices in and not just government's, but it is ze but other international organizations and i hope we can contribute to stabilizing the situation. >> jack pritchard, you were there in north korea and you served as a clinton administration official, and how do you view this recent escalation and tension has to do with succession from kim jong-il to his youngest son if that is going the take place. is that part of this equation? >> well, it is part. it is not the whole part, but when i was there, i think that the couple of messages they were sending is one that the health of kim jong-il was fine. they invited me to take a look at the pictures of him that perhaps you are showing now going out and inspecting, and they made that transition that they, the leaders

the award honors his efforts at reconciliation with china. but alternative prices and rents will not prevent liu xiaobo from being awarded the prize in absentia tomorrow. >>> spanish police have questioned a world steeplechase champion following several are rests in a major anti doping operation. the police searched several homes and businesses as part of the operation. the raids targeted athletes, coaches, and doctors. reports say he is suspected of supplying other athletes with drugs, but is not chargedwith taking any drugs himself. a sport physician was also implicated, accused of masterminding a vast blood doping network four years ago. >>> state to end, i will be back after a short break with in depth. we will be looking at metals and ores. >>> worldwide, the hunt is on fo scarce rawaterls use i high-tech products. the production of the cell phones, cars, and flat screen televisions requires certain metals. the imports of these materials became clear last month, when china drastically reduced exports of what are known as red earth elemen

although much of northern china and actually the rest of mainland china looking calm and dry. into mongolia, a little bit on the snowier side. some flurries in ulan bator. chilly day for you. minus 17 is your high. seeing highs around 7 in beijing, just 9 in seoul and 14 in tokyo. meanwhile, we start to warm up as we head to taipei, showers there at 24 and 22 in hong kong. what about north america? well, let's talk about the northeast real quickly. we have a very strong system that's off in the atlantic. but take a look at that. look at how strong it is. really windy, incredibly intense, high waves and surf across parts of new england. but in terms of wet weather, we're not going to see so much of it in the next few days. really what's going to drive all the wintery weather we're going to see here is going to be this area, this storm system across the northern plains and in the upper midwest. and this complex of storm systems out in the pacific. what we've got is just a pulse of moisture bringing in a lot of rain across southern california and snow into interior areas, and jus

has been able to accept the nobel peace prize the winner of human rights advocate lou jiabao is in china serving an eleven year sentence for subversion chinese authorities angered over the award ban both him and his wife from traveling towards low well because of the scandal surrounding the winner representatives from almost a third of the fifty countries invited skitt the ceremony including those from russia saudi arabia and pakistan russian officials have even suggested that julian assange the leader of the online whistleblower wiki leaks deserves the award or more washington's hunting for a son job to his latest revelations the u.s. is among the nation's calling for the release of the chinese nobel prize winner that will call for a couple stand. you. no prize is granted to lucille ball i don't want to pass in the judgement on you snow oh but in effect what this implies it's really the targeting of china on it's your political sense organ it has nothing to do with what your child was actually done and you come to the conclusion that cries based on political considerations rather than o

china claims this whole stretch of the south china sea, despite protests from the neighbors. and tension with korea has created even more problems with america. but conflict is a very long way off. >> there is competition between china and the u.s., but there is no danger of a military clash between the two countries. think of the u.s. and the soviet union during the cold war. no matter what happened, the dutch troops never shot at each other. >> these are reserves of oil and gas. >> no national interests here. vital national interests. -- we have national interest here. certainly others have national interest. freedom of movement, freedom of trade. the ability to grow and prosper. >> shouting about your military might is one way to engage the peace. [unintelligible] it is this kind of display that reminds that america and its allies still have power and as part of the world. asian countries like the wealth a stronger china brings, but they are also intimidated by it. that is why america is still an important ally. bbc news, aboard the uss george washington, off japan. >> he

the most obvious example be is china. how concerned are you that state capitalism in, with its political linkage as well is a real threat to the sail about of the democracy in market economics elsewhere? >> well, we know that you can have capitalism without democracy. >> yes. >> and in my last book, "democracy's good name," that i had the privilege of discussing with you, i explore the relationship between the two. so the fact that china is capitalist and economically successful without being democratic is nothing new. and i would l note that state capitalism is, after all, a form of capitalism. it just involves a larger role for the state. it's on one part of a spectrum which goes all the way to the united states where the role of the state is much less important, but they are still part of the same family of economic systems. so that's, that's one point. the second point i would make is that china has done very well with its state capitalist model, but we can't be sure, and the chinese cannot be sure that it will contin

china is expected to call on the u.s. to agree to an emergency meeting of the six-party talks on the north's nuclear program. dai has said that north korea responded positively to the proposed meeting when he met north korean leader kim jong il last week in pyongyang. >>> the u.n. security council has decided to partially lift sanctions on iraq in a move that would allow the country to develop a civilian nuclear program. the sanctions have been in place for nearly two decades. the council met to discuss iraq on wednesday. with u.s. vice president joe biden serving as the chair, the united states this month holds the council's rotating presidency. sanctions were imposed on iraq one year after it invaded kuwait in 1990 under the then president saddam hussein. the council adopted resolutions to lift restrictions on the country's civilian nuclear program. it also decided to return the control of profits from iraq's oil exports from the government, allowing the money to be used for humanitarian assistance. iraqi oil earnings h