xi appearingin and in china. is popular in china. they increasingly work together in the united nations. but there are still limits on their working together. there is a certain amount of smoke and mirrors in trying to present a sino-russian partnership has more than it is to date. that whatnot said russia is doing in the ukraine and crimea is meeting with its approval. russia has not affirmed china's claims in the south china sea. there is mutual suspicion but they are coming together as well. host: robert daly talking about -- talking about china. if you want to ask questions, (202) 748-8001 republicans. (202) 748-8000 democrats. .ndependence, (202) 748-8002 caller: i have three comments. -- his analysis of china's economic status is fundamentally flawed. the most polluted planet on the earth is china. this affects their gdp, everything about them. we think that the air pollution is a problem, but it is just the tip of the iceberg. everything that is grown in china is contaminated with heavy metals. everything made in china is cont

china bucked the trend. shanghai composite down by a fraction, as we see there, 2862 for the closing number, discouraging inflation numbers fueled hopes for more government stimulus, but profit taking wiped out earlier gains. here's a hook look at some of t other business stories we're following today. >>> toyota motor officials have announced a global recall of almost 2.9 million vehicles. they say the seat belts could be damaged by a metal part in the event of a crash. it applies to the rav4 between 2005 and 2014 and the vanguard produced in japan between 2005 and january this year. >>> government officials say in january, japan's trade balance was in the deficit by nearly 650 billion yen, that's about $5.7 billion. they say exports were down 13% from the same month last year. imports declined by 18%, as prices of crude oil and liquid natural gas fell sharply. >>> and, as mentioned, the four figures show in january china's consumer price index was up 1.8% from a year earlier. that was a slight improvement

and we are talking china. with the new five year plan being presented in 2016, how can the world's second-largest economy shift gears without stalling its growth engine? and what does the market volitility tell us about the perception of china, and the task facing chinese regulators? well, we have, i am pleased to say, an a-star panel. thank you so much for coming on. jiang jianqing, chairman of the board of the industrial & commercial bank of china. christine lagarde, the managing director at the imf. fang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have s

already china and the u.s. had been discussing new security council resolutions based on a north korea nuclear test last month, but those new resolutions were moving very slowly, but now the security council is faced with this new issue that has fallen right in their lap that they now have to deal with. on sunday it's going to be very interesting to see how all sides position themselves, especially china. historically north korea's strongest ally >>> u.s. republican presidential hopefuls have squared off. donald trump was back on stage. seven candidates took part in the debate. our correspondent has the latest from new hampshire >> reporter: the big story coming in this debate was marco rubio and the momentum he generated from his third place finish in iowa. that made him the first of attacks. donald trump is ahead of the polls and believes he will top the polls come tuesday. ted cruz is trying to build on the momentum of his win in iowa. jeb bush, john kasich, they all did well, chris christie had a goodnight,

and china agreed to the sanctions on wednesday. the two big powers had different views on how to approach them. washington wanted a harsh punishment, while beijing preferred dialogue. the security council could vote as early as this week. >>> the operator of the crippled nuclear plant says it is moving forward to contain radioactive water at the facility. tokyo electric power company says it will soon be able to stop the influx of contaminated water in some parts of the plant's reactor facility. they're still filled with highly radioactive water. contaminated water from three of the reactors is flowing into adjacent turbine buildings, filling their basements as well. tepco has been trying to reduce the amount of such water in the reactor buildings. it has been taking measures to stop ground water around the reactor buildings from flowing in. the utility has also been pumping up contaminated water from the facilities. >>> tepco officials say the are loeg water levels in the reactor facilities, in the number one reactor, the water le

at china differently and growth is large part of the view. >> china can ebb and flow. there are different considerations with gdp growth in china, the housing market and different economic considerations, but as far as retail goes, in terms of luxury goods and global brands, it's a very important market for the long term. so retailers can't really ignore this market and need to continue to invest in it. and also build their awareness and their brand and their identity globally. >> reporter: on a conference call, bernard arno, ceo of luxury conglomerate acknowledged the economic slowdown in china but also said, quote, many observers underestimate the fundaments of china's economy noting household consumption is on the rise there. like other retailers, the luxury goods seller looks to the country as a long-term growth driver. pvh corp will buy the remaining interest in the tommy hilfiger in china. china is the fastest growing market for calvin klein and tommy hilfiger. michael kors and coach reported double digit comparable sales growth in china while noting weakness in

the countries are currently emprovided in a dispute with china over portions of the south china sea. china has taken to building islands to strengthen her claim in apparent defiance of international law. yet the asean countries do not have a unified stand with regard to their big neighbor. something that president obama wants to help them address while meeting with them in california. the u.s. has been a stabilizing force in the asian pacific since world war ii. now with a rebalances there are more troops in the region and they're patrolling waters to ensure freedom of navigation. not all the leaders agree that the u.s. is the perfect counter balance to a growing china. regardless this is a significant step for u.s. and asean relations one which is hoped to carry on for years to come. it is a full hit of the promise made by president obama to be the first american pacific presidential >>> an independent consultant on china explains why progress on the dispute over the sousdz china sea will be difficult >> there are two great forces, u.s. on one side and china on the other. you have t

think china is terrific i'm not angry china. i'm angry at our leaders for not being able to compete with china. [applause] we're going to get things changed. we're going use our best people. we're going to start winning again. strong military. take care of our vets. have such great trade deals. we're going to win again. .e're going to win so much we'll get rid of isis and we will get rid of them fast. [applause] i was against the war in iraq from the beginning. we shouldn't of done it and we did it. that obama get out the wrong way. we did it. it destabilize the middle east. see, 2003, 2004. i said it would totally destabilize the middle east because you have iran and iraq. they were the same militarily. they fight fight fight and then they rest. a fight fight fight. we decapitated iraq and now iran is taking over. not only do they get the 150 billion dollars, maybe the worst transaction i've ever seen, done by the famous obama administration. the worst, the dumbest deals i've ever seen. we get nothing. got those hostages before

this is the way that china -- that china governs hong kong. estimates say the move would cost $1.5 billion for hsbc. this is a time when they're trying to cut cost. they're trying to cut $5 billion by the end of 2017. these costs are to be factored in. angie: it looks like u.k. to those conversation seriously. thank you. coming up, china returns to the fray after the new year break. we will see what will we see? always -- will we see a selloff? coming up next. ♪ >> the stories making headlines -- taiwan has ended the search for victims of last week's earthquake. hundred 16 people were pulled from the rubble. all that two of the dead were found in the apartment complex which collapsed in a 6.4 magnitude quake. architectser and two have been arrested opposition of negligent homicide following accusations that corners were cut in construction. china has called on the u.s. to formally and 76 years of hostility towards north korea, in order to persuade kim jong on to give up nuclear weapons. besides remain. technically at war the head of china's

northwest china is home to many muslims. with a population of 80,000, the largest ethnic minority in lanzhou are called hui. throughout china today, there are 55 official ethnic minorities. of these, ten are muslim. the largest of these are hui. ( man delivering sermon ) narrator: although the hui have their own autonomous region in ningxia, other autonomous regions like xizang, or tibet, speak distinct languages. many in xinjiang, like the uighurs, speak turkic languages. many of these muslims feel oppressed by china for cultural and economic reasons. some seek a breakaway state of east turkistan. some have used violence, and the chinese government tries to crush their movement. hui are loyal chinese and are found throughout china. they speak the dominant languages of the places where they live. now we get into the issue of race and ethnicity. many people, uh, believe that, uh, these are... this is a group of people that is really of han chinese race but islamic religion. the hui themselves don't see it that way. they see t

how will taiwan build relations with china from now on? the outcome of the election hinged on this question. 12 months after moving to taiwan, lo will obtain voting rights. how does he feel about china's relations with taiwan and hong kong? he heads to a cafe run by a friend from hong kong where local immigrants from hong kong and taiwanese have come together to exchange views. >> hong kong and taiwan continue to experience difficulty in the relations with mainland china. those who decided to leave hong kong admits these difficult times continue to watch the future of china with mixed emotions. the lo's family favorite place is a park near the beach. they still have concerns about how to make a living in taiwan, but they plan to stay and carve out a new life here. >> this family moved to taiwan seeking the most important thing in life -- their children's future. what sort of future awaits their children? ♪ steves: the dramatic rock of cashel is one of ireland's most evocative sites. this was the seat of ancient irish kings for seven cent

get along great ith china. largest bank in the world. it is my tenant. buying condos for tens of millions of dollars. i have the bank of america building in california. i own a big chunk of that. i got that from china through a very complex set of transactions. i think china is terrific. i'm not angry at china. i'm angry at our leaders for not being able to compete with china. [applause] we're going to get things changed. we're going use our best people. we're going to start winning again. strong military. take care of our vets. have such great trade deals. we're going to win again. e're going to win so much. we'll get rid of isis and we will get rid of them fast. [applause] i was against the war in iraq from the beginning. we shouldn't have done it and we did it. that obama got out the wrong way. we did it. it destabilized the middle east. you can see, 2003, 2004. i said it would totally destabilize the middle east because you have iran and iraq. they were the same militarily. they fight fight fight and then t

>>> taiwan says china has deployed missiles on a disputed island in the south china sea. hello. also coming up russia says it categorically rejects accusations its has bombed hospitals in north syria. the judge in u.s. asks afpple to unlock one of the st bernadino's attacker phones >>> china appears to have deployed missiles on a disputed island in the south china sea. the taiwan ease defense minimum see says beijing has placed surface to air missiles on an island. ownership of the island is disputed by taiwan, vietnam, chinese and the philippines. the president is appealing for calm. >> translation: i think the south china sea is a region that everyone pays close attention to, especially on the issue of the dispute over seventy in the south china sea. it is a tense situation, so we call on all sides to stick to the principle of resolving the dispute over the south china sea in a peaceful manner. self restraint is most important >>> china's foreign minister says the claim is an attempt by the western media to create news stories. >> translation: i hope that the media everywhere,

china refutes this saying 90% of the south china sea is theirs. but what's undeniable is that the steadily increasing tension has led to a military buying spree. >> i think china's military expansion, its increases in its defense spending and its actions in the maritime area, have in fact triggered something of an arms race. >> reporter: a united states military footprint in the region is not new. but it's been steadily growing over the last several years. >> militarization of the south china sea and particularly the artificial islands that will be used for military purposes by china is a concern for the united states. but it doesn't pose an existential threat. >> but the u.s. wants its presence felt. general lori robinson commands all forces in the region and presents a statement at the air show. >> what we're doing as team america and being out here to show our commitment to the region. >> reporter: and part of that show of strength in the region is this, the p-8 poseidon. the united states frequently flies them over disputed territory. >> wheth

it is over china and china isn't invited to this meeting. and i would say that that is probably the big elephant in the room where the u.s. is going to try courts these nations. particularly in the security area. so while tpp is important to the u.s., the fact remains it hasn't even passed here in the u.s. so until it does, these other nations are on the fence, can't even participate in that. so economically speaking, you know, it's not as important. frankly, the u.s. does more trade with the northern asian powers, and really, this is more about a security issue around south china sea. >> you've mentioned tpp a few times, the transpacific partnership, less than half of the signatories that are coming to this summit are actually part of this. can you think this is an opportunity to for the u.s. to gain more members to sign on? >> they can try, but i don't think it's going to be very productive use because i think the other countries just aren't ready to sign on to the standards that this trade agreement wants to put in place. and these standa

indeed, china's reclamation and militarization in the south china sea together with china's rapid military modernization and expansion are making it more difficult for the united states to defend our allies and our interests from military aggression. simply put, the administration's policy has failed. beijing has been willing to accept a high level of risk to achieve its strategic goals. meanwhile, white house's risk aversion has resulted in an insii indecisive that has alarmed our allies. shaping rather than reacting to beijing's actions will mean adopting policies with a level of risk that we have been unwilling to consider up to this point. the administration must initiate a robust freedom of the seas campaign flying and sailing wherever international law allows. this should include freedom of navigation, operations, designed to challenge china's excessive maritime claims as well as joint patrols and exercises with our allies and partners that span the island chain. we must also maintain our commitment to continued sensitive reconnaissance operations which are critical for gathering mil

>> there is a transition going on in china. they are moving away from the ledstment-led and export model and they are moving more into a consumption-led model with more services provided to their population. so this is what is happening now. a trough in terms of investment and in some areas, overinvestment, like in the case of steel, which is creating a serious problem of oversupply in many countries in the world. the price has dropped. you see the result of this transition. it has gone on for some time. we're going to have oscillations and some turbulence over the next few years. anna: do you expect further stimulus from chinese authorities? we had seen weakening in the services pmi number. what can they do to target that? angel: china is inevitably going to be moving more into a services-led economy because, first of all, the exports and manufactures that they do are going to have a greater content of services and knowledge to this is how it is with every single economy that becomes more sophisticated. more and more services

sea, to china, the republic of china. and the united states kansas in taking the islands in in the brent seabrook, and at the time -- in the south china sea. many of the countries are not cooperating. they want european powers in that part of the world. that is the history. china is not afraid with the international community. china's ownership for the islands see the time at the end of the world war. china needs to approve again these islands in. these are disputed. it does not many much. china will stand firm on its claims to the islands in. and sovereignty with that. that is where they want to go through some of these countries to innocent vice them to come into more and more of an area with china, china is prepared to deal with that. the united states really need to stand and under the consequences in the brent seabrook, and accuse china of being the culprit party in the escalation. >> thank you so much. >> thank you for having me. >> a woman is being arrested after 30 hours beneath the ruins of the northern province

on one side, china on the other. you have to feel sorry for the other countries who are torn between these forces, economically and in terms of stability and safety. this is not the year for much progress because it is a u.s. election year. in terms of trade policy, in terms of china policy and, indeed, in terms of pacific policy, asean policy, this will all change after november. you will have to listen the candidates to know there are different views on china, very different from what obama has done, different views on trade. very different from what obama has done. in a sense this is a marker trying to show that obama has made progress on his pivot towards asia, but in terms of substantive progress, very little can happen until the election and there's a new president in office. even the tpp, the great trade deal that obama help negotiate, that's not going to be voted on in the u.s. until after the election >>> the former israeli prime minister is said to begin an 18 month prison sentence for bribery. he is the fi

china refutes this saying 90% of the south china sea is theirs. what is undenialable is that the increasing tension has led to a military buying spree. >> i think china's military expansion, the increases and its actions in the area have, in fact, triggered something of an arms race. >> reporter: a united states military footprint in the region is not new, but it has been growing over the last several years. >> militarization of the south china sea and particularly the artificial islands that will be used for military purposes by china is a concern for the u.s., but it doesn't pose a threat. >> reporter: the u.s. wants its presence felt. general robinson commands all u.s. air forces in the region greeting staff at the air show >> i can't tell you how much it means to me to see all the joint air power, what we're doing as team america and being out here to show our commitment >> reporter: part of that show of strength why the region is this, the p8 poseidon, one of the most sophisticated airplanes. >> whether it's singapore or the philippines, you

they moved from rural china into urban china. have them enable to transmit -- have they been able to transmission them to become real consumers? and if they have, what economic growth is that creating? reporter: that is a very slow process, though. mileuld see this from a away. why do you think people are panicking at the moment? >> first of all, this has all been highly telegraphed by the chinese government. we are talking 20 or 30 years of policy about building infrastructure, talking about creating consumption. none of this comes as a surprise. but this is happening on top of unfortunately, a slowdown in many of the other developed economies around the world. it may be just bad luck or it might be bad timing, but the reality is we need a strong, growing economy in the world to drag the other economies with it. we have allied upon china for so long to be the big growing economy out there. without china growing in double digits or even high single digits, the world is unsure of where to rely upon for growth. reporter: that was p

, they have moved from rural china into urban china. have they been able transition them to become real consumers? if they have, at what rate are they consuming and what economic growth is that creating? that is a big mystery to the markets right now. >> that is a very slow process. , you couldn from 12% see it coming. why are people panicking? is there a need to panic? >> first of all, this has all been highly telegraphed by the chinese government. 20-30 yearsg about of policy, building infrastructure, inhabiting the cities, creating consumption, so none of this comes as a surprise whatsoever. ofs is happening on top unfortunately a slowdown in many of the other developed economies around the world. it may be just bad luck. it may be bad timing, but the reality is that we need a strong growing economy in the world to drag the other economies along with it. we have relied upon china for so long to be the big growing economy out there that without china growing in double digits or high single digits, the world is unsure where to rely upo

what do analysts expect in china ? y: china's debt will not speak for another four years. they see the ratio increasing to 2019. to peak at expected 283% of gdp. this is a delicate balancing act. they are keeping credit slowing to help the economy, boost the economy, to around the 6.5% expansion. it is not too fast to trigger a credit blowout. at this graph, the state of -- -- look at this graph, this data is showing new loans just surging starting up in the last year. goldman sachs says it is impossible to identify a specific debt-gdp level that would tip the crisis. the fact is that china's debt is soaring. it is the highest in recent history. an economic slowdown for a. period of for a time. >> have good have chinese companies been at reducing debt? shery: the problem lies with state-owned enterprises. their debt jumped to 62% from 55% in 2007. they're saying this is not surprising, given that about 40% of those bank loans that we saw go to state owned enterprises. so, when we see the national people's congress, people are going to be hearing more calls for president te

sale in china are booming. so a lot of people are buying cars. american companies like general motors had a very good year in china. >> they're building factories there. >> yeah. >> because the market of china is huge. always there are some problem. there are some other opportunities. >> let me ask you about macao, and base on what happened with hong kong. i remember being in china just government in hong kong. talking to people we're not expecting the chinese government to change hong kong. they wanted hong kong what it is that was to be a international banking and investment center. they've been hands off allowing hong kong to be hong kong. when they took macao they encouraged countries to invest heavily in macao and then there were all of these crackdowns. what we're seeing now instead of the high rollers coming in and spending vast amounts of money they're trying to bring more of the general population of china to come to macao. am i correct in my thinking there. let me put it this way. for a few years maca

let's have a look at china. the reason we are seeing a drop is because of a flurry of profit warnings from friday into the weekend into this morning. i want to show you -- on average, 60, 70% drop in earnings. name oil fields, copper, your industry -- coal, construction and power and steelmaking issuing severe profit warnings. the you talk about the pmi, concept is fluid. when it starts to show, that is when you really feel it is tangible and more felt. angie? angie: let's focus on japan, david. everybody is watching japan for obvious reasons. how is it looking after the lunch break? david: let me give you an update. i will give you the benchmarks in a moment. these are the biggest movers. -- the story in japan are these deals. we are pushing more and more below. if bank of america is correct, this 10 year will go towards zero in the near future. markets are cautious at the moment seeing how far these yields will go. if history teaches you japanng, deals in continue to drop lower and lower. back to you. --haad:

reacted, weu also were asking him about china and he said, it brings us back to the 1990's, and china comes back. if it comes back, it is not going to be what we saw 10 years ago. kit: china is rebalancing. it is not the slowdown that is the problem. it is the shift away. boom, we blewasia up my industry in 2008, and now we are blowing up some of these other industries. that is not coming back anytime soon. tom: you know that when markets move, you never see it coming. what is the thing that is exogenous to the system that you are worried about? in the commodities space, what it is saying to me is, we haven't solved the excess , inly, the excess capacity the resources industry, which boom that came in 2003 when the fed was at 1% at the same time as we created all the booms. tom: we have to leave it there. we will come back with kit juckes and take a look at the euro. coming up in our next hour, we bring you luigi zingales us. we will talk about new hampshire, the primaries, the spirit of our animal spirit. stay with us. ♪ francine: welcome back. this is bloomberg "surveillance ." to

. >>> taiwan says china's deployed missiles on a disputed island in the south china sea. also ahead russia says it categorically rejects accusations its military bombed hospitals in northern syria. a judge in the u.s. orders apple help the f.b.i. unlock an iphone. how china is trying to educate motorists. china is being accused of deploying missiles on a disputed island in the south china sea. the taiwanese defense ministry says beijing has placed surface to area missiles on the wooly island. taiwan's president elect is appealing for calm. >> translation: i think the south china sea is a region that everyone pays close attention to, especially on the issue of the dispute over seventy in the south china sea. it is a comparably expense situation. we call on all sides to stick to the principle of resolving the dispute over the south china asea in a peaceful. self restraint is most important >>> china's foreign minister says the claims are an attempt by the western media to create new stories. >> translation: i hope that media everyone, including those in western countries an

china could cover the entire south china sea if the country sets up another radar system with the same capability. historically speaking, parties involved have held quite short air strips in the area. those held by vietnam, taiwan, the philippines and malaysia are about 300 meters. its facilities shows strategic ambition in the future. various facilities that china has built on reclaimed reefs cannot be claimed as territory. they are building artificial objects in violation of the u.n. convention on the law of the sea. we must raise the issue and warn china not to expand such facilities. japan needs to closely share information with the united states. they also need to patrol the south china sea if needed to stop china's blatant attempt to expand its territory. japan also has to work closely with asean nations with which it shares the same values. >> that was the former commander with the japanese air self-defense force. >>> on north korea, chinese leaders say they will support international efforts to curb pyongyang's am ambitions, and a look at their border shows why. >> reporter: ch

there is a new china. you can speak to that new china. the new board, the entrepreneurship. i think we are going through a cyclical, you can't help but go over that adjustment. that will last two or three years. it comes at a bad time for the rest of the world, because when you look at its impact on commodity prices -- and not just commodity prices, but the other economies in brazil and so on -- and when you look at the vulnerability of the rest of the world, in terms of monetary policy, that's a bad combination. we'll get past that. a bad year in china is a great year in almost any other country. francine: do you question their commitment to structural reform? what are the dangers, if the structural reforms are not being pushed through? madame lagarde: we went through a couple of years of intense discussions with the chinese authorities, because we were going to review the baskets of currency that define the value. it is the elusive currency of the imf. if you asked me, if the chinese authorities would complete the reforms, that they had to take in order to satisfy the crit

xi appearingin and in china. is popular in china. they increasingly work together in the united nations. but there are still limits on their working together. there is a certain amount of smoke and mirrors in trying to present a sino-russian partnership has more than it is to date. that whatnot said russia is doing in the ukraine and crimea is meeting with its approval. russia has not affirmed china's claims in the south china sea. there is mutual suspicion but they are coming together as well. host: robert daly talking about -- talking about china. if you want to ask questions, (202) 748-8001 republicans. (202) 748-8000 democrats. .ndependence, (202) 748-8002 caller: i have three comments. -- his analysis of china's economic status is fundamentally flawed. the most polluted planet on the earth is china. this affects their gdp, everything about them. we think that the air pollution is a problem, but it is just the tip of the iceberg. everything that is grown in china is contaminated with heavy metals. everything made in china is cont

comes from china are much longer. this is of almost minimum -- not great import. conditions are just as disagreeable. environmental conditions are just as costly in south vietnam as they would have been in north vietnam. >> so your conclusion was that, as you say, it might probably lead to a confrontation with china and i would take it you felt and general ridge way felt this was not a wise thing to undertake. then do you see any reason why it would be any wiser to do it today? >> no, i don't. i must say though i think the initiative is perhaps that of the chinese. it is, indeed, that of the chinese. what do you mean by that? >> i think the confrontation will occur when and where they choose to make it occur for this reason. i think -- >> i don't quite understand it. you say the initiative was with the chinese now? >> repeat the question, mr. chairman. >> well, he did say that the initiative is now with the chinese, did you not say, sir? >> i feel in vietnam today, yes. this is what i said a moment ago and this is wha

it would be china, india and senior china. that doesn't have anything to do with the one child policy, this has to do with population growth and the fact that they're living longer. the problem the one child policy has is that they reduce the working population to support the aging population. these people are going to grow older. some of the other problems such as gender imbalance and what this could result in whether this results, some of the speculation we don't know for sure. we definitely know that this big group of elderly people will age and that will raise a lot of issues for china. >> today we are seeing china's economy beginning to slow after three decades of rapid growth. as any of that slowing related to the one child policy? >> it is because one of the biggest challenges of the economy is manufacturing. that was fueled by cheap labor. now the abundance has gone down. there's just fewer workers. they want to get paid more. so china is trying to transition out of that into a more consumer-based economy but then you

secretary of state john kerry has increased china's increased militarization of the south china sea. this previous satellite image of woody island, shows considerable development by china, including a runway. the island is part of a chain that has been under chinese control for more than 40 years, but is also claimed by taiwan and vietnam. they also lay claim to two other islands which it says falls into its territory area. harry fawcett reports from seoul. >> reporter: woody island has been in beijing's hands since 1974. in 2012 china formally declared a city on this tiny speck of land, home to more than a thousand people. now according to taiwan, which claims the island along with vietnam, it is also home to two advanced surface to mistile batteries. china's foreign minister blamed the western media's appetite for creating news stories, but didn't deny that the reports were true. >> translator: as for the limited and necessary self-defense facilities that china has built, this is consistent with self protection and preservation that china is entitled to under international law. >>

china posted the largest growth among the three largest exporters, up 88%.china posted among the three largest exporters, up 88%. but the report says china's share of global exports at 5.9% is still well behind the united states and russia. beijing's main customers were pakistan, bangladesh and myanmar. china has dropped to become the third largest importer after india and saudi arabia. a senior researcher with the institute says china continues to expand its military capabilities with imported and zpeskically produced weapons. >>> i'm gene otani with a look at the business stories we're following today. >>> bank of japan governor howard kurda has stressed the positive outcome at a lower house budget committee meeting. >> translator: it's a first-time experience for japan. so the reality is that the reaction's been varied. the policy will encourage commercial banks to lower rates on loans. that, in turn, boosts lending. we want people to understand that the policy has positive effects to stimulate the economy. >> kuroda says the central bank will continue to deliver sufficient and flex

$62 billion, so china, inc. is still making money. now one of the reasons why imports are down is that china is no longer buying things like iron ore and copper, these key commodities in quite the way that it once did. this week, all eyes are going to be on china's currency, the yuwan under attack by foreign speculators, seeking to drive down the value of this currency. they want to force many believe a devaluation. china's government is resisting that that. it wants to control the direction of its currency and not have foreigners do it for them. a fuller picture on the state of china's economy will probably come next month when we get figures relating to retail sales, and industrialout put. >> the chinese economy is likely to be a key topic with president obama and asian nations today. al jazeera's pat trish at a sabga has more. >> this is what rebalancing looks like. president obama standing shoulder to shoulder last november with leaders from asean the association of southeast asian nations, a club of countri

next china needs to draw down. there's is a lot of concern about china drawing down on its foreign current reserves. needs china to do is take those foreign-currency reserves and either invest or spend them much more productively to generate growth in the global economy. back when i was in beijing and government officials came from the united states, they didn't beg china to keep piling up currency reserves. they said please use those reserves more productively and drop them down. that's what the world economy needs right now. scarlet: what does it do for capital outflows? >> instead of going out in the form of demand, the currency reserves are being spent to finance capital flight. that is a reflection that they had engaged in reforms that they need. i'm not saying it's a silver bullet for china. they need to engage in a whole the timereform to use it has bought by defending its currency productively. defending the currency, there is a risk of failure but allowing it to fail in peace failure because it moves in th

and china. its stock plunging 20% in trading. to stem slowing sales, hugo boss is pulling back distribution at u.s. retailers, where the company cited highly professional levels of discounting. it is also adjusting prices in asia. the company joins early -- other luxury brands and feeling the follow-up from sluggish demand in china. the revision is the second in less than six months for hugo boss. on the website, were looking at how china is making a better beagle in a gene editing raise. still ahead, hong kong financial sector, about to deliver annual budget. we'll be looking at what it means for business. coming up next, the outlook on the fx markets. "trending business" i can two. -- i can two. ♪ a lot of issues regarding quality control when it comes to this automotive company. honda ceo says he will define roles for various divisions. is reshuffling his team, nine members and top management set to retire. it is a declining market, but we have honda shares declining with it. outpacing those declines on the broader topics, 2

washington is seriously concerned about china's increased in the south china sea. responding to reporting that beijing has deployed surface to air missiles in the region and pointed out the contradiction to remarks made by china's president last fall. >> they stood in the rose garden with president obama and said china will not military yoois in the south china sea. there is evidence everyday that there has been an

with e china. there is no evidence outside of the western pacific and china's nine dash line that china has expansionist designs on central europe, southeast asia, a la the russian designs in the crimea, w georgia, the places you have mentioned. what they want to have is a zon. of deference. they want something akin to what we have in thewhere western t t hemisphere where they are the primary actor and if another onh nation is contemplating action s with impact on china they want i china's interests taken into consideration first. it is a magnet because of uld sa china's attractive power because of what china would see as a be-nevada allegedly hegemon.th i think you're correct that china would like to be the most dominant player in east asia pacific or the eastern hemisphere. but they are patient, gradualish and we are not talking about a vision in which the pla is stat marching across borders invading other sovereign nation states. there is really no evidence that this is what china is about. >> a

china is building a military fortress in the south china sea. i don't think they are worried about the snails and the fish in the snakes. you know what they do, they say to say morning we want to go there and they start four hours later. with us it would take 45 years of environmental impact studies. obama is always talking about the carbon footprint. one, theakes air force and he plays golf. so we will get our jobs back. we will take care of our military. jobill do such incredible we will take care of our vets. metal [captioning performed by the national captioning institute, they are treated better than our vets and we will not let that happen anymore. we will make unbelievable trade deals and we will become a rich nation. a woman came up to me recently and mr. trump, i do not like one thing you say. president, but don't say we are going to become a rich nation again. it doesn't sound good. isaiah sounds great. we cannot become great if we are losing $500 million a year to china and hundreds and hundreds of millions of dollars to every other c

leading environmental activists and journalists in china. when my friend liu jianqiang said he's becoming a buddhist, particularly a tibetan buddhist, i was very curious about why. we'd already decided we would make a little documentary that would sort of show people what it is that has attracted him, but when i asked him just in shorthand, you know, what is it that you're looking for in a religion, in a faith, in a culture? and he said, well, you know, for 15 years, he said, i've been reporting on the environment, and in that time, everything is still getting worse. so you begin to feel like what's the point? you know, we're exhausted, we're burned out. and he said i needed something more enduring, something for the longer term, something that would allow me to have a little bit more faith in my own work. well, i asked liu jianqiang, how would we show people what it is about the tibetans that really appeal to you? and he said, well, you should just go talk to one of the tibetan monks, the kind of person that i met all the time up there. so,

china imports coal and iron ore from its neighbor. some chinese businesses are also counting on labor from across the border. these women cross the border at dandong heading to work in factories nearby. authorities say 90,000 north koreans entered china to work last year. chinese firms like them because they're cheap. they'll work for about half the rate chinese employees will. and that's even more important to the firms, now that the economy is slowing. some businesses are even venturing into north korea. one entrepreneur has opened a garment factory in pyongyang. he labels north korean-made garment made in china, and exports them to japan and south korea. >> translator: we're making a profit thanks to the cheap north korean labor. >> reporter: last year, $600 million worth of clothing was made in the north and exported to china. some of it was then shipped abroad as chinese products. that's just one of the ways people are sidestepping the international sanctions. some chinese firms are starting to see north korea as a possible marke

china high down 6.6% right now. manus: shares plunge on news that stocks will take a controlling space. the latest from tokyo. ♪ anna: welcome back. 7:48 in paris. it is in the bloomberg business flash. ab inbev has reported fourth-quarter earnings that missed estimates, rising 6.6% on an organic basis. analysts had inspected 9.2%. it underlines the fact that the brewers need to make the emerging market. deutsche telekom has reported fourth-quarter telecom earnings that were 16% from five one one billion euros. that is after gaining viewers and way more customers for broadband in germany. apple ceo tim cook believes helping the u.s. government unlock an iphone use by one of the san bernardino shooters would be bad for america. he explained to abc news why he was fighting the judge's order. tim: we know that doing this could expose people to incredible former abilities. incredible former abilities. this will be bad for america. it was senate president that many people in america would be offended by. so when you th

the moment we have overcapacity, nobody makes money. >> and china? >> china is growing. it continues to do better. >> what kind of growth can we anticipate? >> about 7%. the chinese new year just past. a little bit smaller growth than they had the year before, but it is still positive. china and india are growing at a pace that nobody imagined. gdp growing at a fairly high number compared to the world. we are well placed in both of these countries. >> no surprise there is keen competition in the aviation space. airlines are constantly trying to cut prices. are your customers asking you for cheaper prices? >> tenures ago, it was the same. 20 years ago, it was the same -- 10 years ago, it was the same. 20 years ago, it was the same. to have the right product that meets capability, and to get the , that is where the future is. customers are happy. ,he next phase we are entering we have time to work with the cut the whereby we can cost on maintenance of these airplanes. want to be offering the best amenities and they will leave the rest of it to us. qantas ordered the 787 la

japan may also need to patrol the south china sea if needed, to stop china's blatant attempt to expand its territory. japan also has to work closely with rcn nations. with which it shares the same values. >> that was nagaiwa, former commander with the defense forces. >>> oil prices fluctuating this week. investors took prices higher by the international agency. it said oversupply would be resolved next year. prices are falling again. joining us no from the business desk. what are they reacting to now? >> they're reacting to comments by the saudi arabian oil ministry. russia r russia recently said they'll shore up prices, but the minister reaffirmed his stance. they won't go so far as to cut production. lee niani spoke at a conference in houston. he referred to the agreement last week between his and three other oil states to maintain output. he said the freeze was a first step. he said if other nations joined the agreement, the existing high inventory will likely fall. he expressed his intention to meet with the other countries again next month, but he said it would be a waste of time