out of china this morning. there was a lot coming out of that work report, from the work conference statement. you have this cabinet level committee with the pboc also with more teeth in enforcing the regulators. regulator,n umbrella not a super regulator, but the pboc will have more strength reining in the regulators. to hold thesent bodies accountable to identifying the risks and limiting those risks. financialing up services and the financial industry and reforms seems to have moved down the priority list. the financial system, priority number one. priority number two, preventing risks. three, deepening reform and opening up. this tells economists that renminbi reform is a slower process. right now, containing risks is number one. levels, 260% of gdp, 60% is corporate and state owned enterprises debt. they need to start deleveraging. there is concern there will be more emphasis on getting the soe 's to deleverage quicker. i want to get more wonky on the policy wording. they had stated they need to take prude

-china relations. the specialists also share views on north korea policies and asia pacific security. [ applause ] >> thank you very much. i'm mike green, professor at georgetown. we had five issue papers with authors for each paper or papers on each subject from u.s. and china. we split the panels up so that this panel will address the papers on u.s. and chinese strategy and interests in the asia-pacific region. and also u.s.-china military issues. and the next panel will cover economics, global issues and politics. scott kennedy will chair that session. we had a number of participants who helped write the papers or who joined us in study groups to review the papers. so this is a representative group, it's clearly not everyone who was involved, but some of the key authors in each of the papers we're going to address in the panels, body glazer, my colleague at css, senior director of the china project will talk about the asia-pacific papers. we're going to ask the panelists not to summarize the papers

-china. relationship i say that, as someone who has spent six years in the white house, i was not in a single conversation with the president, the vice president, the national security adviser, where anybody said china split or system is a threat to american national security and we have to do everything possible to change it. never once, never even remotely close. that said, of course, we have questions and concerns about human rights in china. the clampdown on political freedoms. because that is who we are and that is a structural feature of the u.s.-china relationship. but it's very different from the kind of claims addressed in the paper. the u.s. paper took a different approach. when mike and i were working on it, we focused less on history and ideology and more on anditutions, actors, changing american perception. changing set of institutions, the fact that the executive branch appears to be playing a much more consistently active role in both formulating and implementing china policy,

-china -- in the u.s.-china foreign policy-making. i totally agree of the idea of ups and downs of congressional power. we have a lot of consensus. we all agree that domestic politics is one of the most factors in u.s.-china relations and most importantly we all believe that when the two countries protocol goes are consistent, the relations, we all make significant progress. i think this is a very important consensus. some difference. personally, i think the biggest difference between the two reports is that the two sides seem to think about the word of politics in different ways and for the chinese report, we talk about politics as very big issue such as political system, ideology, or even political stability, but u.s. report make me -- give me some impression that politics is about governmental process, decision-making process, specially the key player during this process. i think just because of this difference, the chinese report has bigger political background in future of u.s.-china relations and the u.s. report talks about how

north korea, taiwan, china south china sea. in washington it's fun and exciting and engaging to talk about the cyclical issues but sometimes they don't have a long-term effect on the trajectory of the relationship in a particular what is the shape of that curve look like. this is an important distinction because when one thinks about the issue of politics in the u.s. china relationship, that is deep structure. that is something that probably is not going to change anytime soon. it's important that we not always get caught up in the day today to eights about these areas and yet focus on structural features. there's two structural features that came out of our analysis of how politics impacts the relationship the first is that it's clear that competition in the competitive aspects of the u.s. china relationship are coming forward. that's not meant to be a darker negative statement but rather statement about the balance of issues facing the u.s. china relationship on day finkelstein began to go down this pathways in his descriptio

china. what stood out to you? >> the premier is stressing very much the inclusive growth in the west. i mean, china has benefited quite a bit from globalization. the west, also, international trade. but in the west, and the united states, several european countries, the feeling is that the gross globalization has not been beneficial for all parts of population and there is roughly 30% in all countries who feel to be left behind. and those people vote in a particular way. and as we've seen in the u.s. and with brexit but also le pen in france. it is a kind of protectionism. and, china, of course, does not want u.s. to be protection is an want free trade and wto. >> i'll play the devil's advocate. donald trump says they have not been playing by the rules, living up to the wto. and i know the europeans have been critical about market assets and not upholding some of the commitments they made. i know you are in china, so no one likes to criticize. but what is your fair assessment of how china ha

and china. btv 7929 in the bloomberg, clearly showing chinese steel output outpacing the world in turquoise, and the u.s. in yellow, and in white, chinese crude steel production. this is one of the key issues, but one where we won't see much movement on given that we are not acting to see capacity cutting reform out of beijing until after the 19th peoples congress. >> absolutely. china wrote a report that could is more steel and april than all the markets in the world combined. this is a broader question. china is now the second largest economy in the world, the largest exporting economy in the world, and that means it will have a higher level of responsibility in terms of how to balance global markets. is one ofquestion them, and i hope the chinese government will work closely not just unilaterally, but also multilaterally, with other countries to rebalance the steel market. unfortunately, it will be challenging in the next 5-6 months. president xi s2 focus may becally and reluctant in some way

inalso staying on china, but a few hours we will get china gdp numbers. what are we likely to see in these numbers? >> over all, the economy is slowing, but may not slow by much. our forecast from our survey is 6.8% year on year in the second quarter, a pretty good reading. the target is 6.5%, so broadly we have an effort to slow the pace of leverage as a drag on growth, but also global trade and domestic demand, so that is a boost for growth. you will see how those forces and out in the data today. >> great to have you in the studio. expect outut what we of the growth numbers, i know you don't look too much into a decimal point between 6.9 and 6.8, but what are we looking at beyond that? what are some of the indicators we will be looking at? indicators important came out last week, credit growth numbers. all those numbers are moderating. we are not seeing them collapsing, but growth is at the lowest point for history, and also credit growth has come down substantially as well, even though new loans are growing. i would say this of the most important lead

for china in particular. what we saw over the weekend, the focus on financial regulation, which may be part of why small caps sold off, that actually helps large-cap financials because it ensures the debt to gdp ratio begins to stabilize in china. sector,e cheapest likely to deliver earnings roughly in line with the overall -- x, but clay -- trading tech is delivering double the earnings growth, but for that double earnings growth, we are bar billing it over with -- overweight for tech. financials have performed in line, but we think better as it progresses. rishaad: you have to be selective here. could you make the argument that you only become selective in places where the yield curve looks like it's going to steepen? these banks can make more money in such a scenario. we basically got in asia this sort of organic, long-term growth story, which is present in india and indonesia, about issues like household formation and accredited gdp ratio rising. and koreave china where financials are trading on a discoun

especially china. china has a very robust economic trading relationship with north korea. and it has to be able to use that for greater leverage if it wants to. >> if we sanction them more, who pays the price? are we talking kim jong-un, or the north korean people? >> there is a thriving black market. there was a great npr story today about north korea and things getting through. yes, it will affect the people to some degree, but it will certainly affect the regime, particularly if you do it in areas essential to the regime being able to continue this program or to engage in the larger scale projects that the regime uses to maintain an economy. those are the things that have not been put on the block to this point. >> general, i want to show everyone something here. this is a tale of two trump tweets. five weeks ago, president saying north korea disrespecting china, quote. but china is trying hard. today, a few hours ago, so much for china working with us. do you get the sense, general clark, this is a president that has given up on china's ability or perhaps willingness t

if china -- yesterday. we need to use and read if american economic tool we have right now to prevent nuclear war . getting your thoughts this morning. if you think containment is the right option, (202) 748-8000, military action, (202) 748-8001, new negotiations, (202) 748-8002, other options, (202) 748-8003. why do you support military action? caller: to have negotiations with north korea through china is like having charlie manson take care of your newborn baby. it is absolutely ludicrous. when we saw what happened to and saw howr malicious that the president of north korea is, we have to know this man is not rational. verynk we need a analytical approach, and we have to do it on our own. it is a joke to think that china has any desire to go in and stop this. to usenot have t nuclear armaments. we need to have a surgical strike with the mother of all bombs, and do it so quickly and have our soldiers on the border move out into japan so that when it is over, they can go in and pick up the pieces. theo not

between china and india, iam relation to china? between china and india, i am not so sure. relation to china? between china and india, iam not so sure. what relation to china? between china and india, i am not so sure. what has been commented on a lot, ifind it ironic living in china, and being america, is china extending its sphere of influence into places that the us had occupied. whether it is on climate, the projection of power, through naval forces, for example, in the shipping lanes around asia, that has historically been the us protecting their shipping lanes. i find it worrisome that china is stepping into the breach. another sign of american retreating from what had been its historic duties, the role it played. while i am concerned about the decline of america diplomatically. i would not write off the us. even though it has been through economic turmoil, it has still been by far the most innovative economy on earth. as a believe in democracy, there is something inherently necessary for innovation, competition to happen, yo

we can't continue to allow china to rape our country. they have taken our money, they have taken ourjobs. the turning point in their relationship? when the two leaders broke bread and ate cake. now president trump has referred to president xi as a terrific guy and a good friend of mine. so, given the political state, what can we expect to come out of the summit when representatives of the two countries meet? i would not expect any big breakthroughs. the most important thing is that the two sides are talking, and so i would expect a fairly amicable discussion, some minor outcomes, and some nice general language that the two countries will work together to strengthen economic relationships, and reduce the trade imbalance, it imbalance. of course, overshadowing the economic and trade issues is the thorny question of north korea. mr trump wants china to exert more pressure on the country. a failure to do so could undermine the strategic dialogues. with me is dr guo yu, principle china analyst at maplecroft. what do you expect to come out of

reform in china. liu xiaobo is now dying of cancer and the circumstances of his treatment are causing international concern. the german embassy says the visit by a german doctor to treat him at this hospital in shenyang was filmed and released to the media. diplomats call that a breach trust, as backed up by angela merkel‘s spokesman. translation: i can assure you the tragic case of liu xiaobo is of great importance to the chancellor and she would hope for a sign of humanity for liu xiaobo and his family. in hong kong on monday, pro—democracy campaigners held a sit—in demonstration outside the chinese liaison office to demand the release of liu xiaobo. they say there is still time to for treatment abroad. we feel very sad and very angry and when we see such a respected intellectual like liu xiaobo is being... subjected to such degrading, inhuman treatment. that's not how they see things in china. beijing says simply it's no—one else‘s business. translation: we have answered several times. ch

if china started to behave ala teddy roosevelt nobody would say that is china being china and they will be fine. relax, let's worry about russia. it is not going to be like that. >> 00:36:40 unidentified speaker actually united states could have taken canada and was interested but he looked at that more than once her go so did the british. but they noticed what was vital and what we could adjust to they tolerated behavior that otherwise was crude and of reasonable and not fair but nevertheless they help the americans to see that american and british interest were quite a wind with that cultural similarity so therefore the u.s. is the natural supply allied for britain. even at the beginning of the war so then with the u.s. entered the war and then to be aligned with britain and then became even thicker with that naval conference americans agreed to hire of feel better with the brits. so where those interests are vital and in other areas if i am not powerful enough and it can adjust lit is to different cultures but that knowledge was elaborate a little bit also in terms of vital interest

>> conventional wisdom has been china is not going to be able to keep this up, that eventually china will have to open its internet. other people will be able to get access and chinese people will get access to websites outside the country. what we are seeing now is a serious tightening of that. use it all the time to get access to facebook or google maps. it is other people who want to get access to information blocked on these websites, including "the new york times" and bloomberg.com. we are seeing a more serious crackdown. the president has talked about cyber sovereignty and how he wants to maintain control over china's internet. it looks like he is determined to keep that control. that opens up tons of opportunities for chinese companies. american internet companies are not able to operate in the country. emily: what does it mean for multinational companies that operate in china? they have been operating in this legal gray area as well. they can use vpns but only internally. with this new rule affect them? >> it is important to that restrictions will be individuals who use vpns,

china wins again. back at almaty‘s zenkov cathedral, dosym satpaev says the nations of central asia are like billiard balls in a game between the big players, russia and china. china, i believe it will be like some threat for our independence. why? because for china, kazakhstan is not an equal partner. for china, kazakhstan only is like one of the players, in the big china geopolitical game. that game stretches far beyond these mountains. but already it's changing lives, shaping the destiny of young nations in the shadow of the chinese giant. carrie gracie, bbc news, kazakhstan. and tomorrow, you can see carrie's report from poland in the next stage of her journey. a state banquet has been held at buckingham palace for the visiting king and queen of spain. this afternoon king felipe addressed both houses of parliament. he said he was confident the uk and spain can reach an agreement over the future of gibraltar. our royal correspondent, nicholas witchell, reports. a state banquet at buckingham palace

relationship with china. and our objectives in our relationship with china. look, i think president trump understand understands some of our differences, policiwise. and that was reflected in the fact that he invited the chinese president to mar-a-lago earlier this year. worked hard in that setting to try to forge a positive working relationship with china when it comes to things like trade, when it comes to things like working with them against north korea. clearly the president felt after that meeting in the weeks following that meeting, that china didn't really follow through or deliver on some of what they accomplished in that meeting. and i think that was reflected in some of his more frustrated tweets about china and about the chinese president. so this could be viewed as a sort of reset with china. and one that is very much needed. because as much as the u.s. and china have been at odds on a number of things, there is i think a recognition on both sides that the north korea conflict can't be solved by just the u.s. alone or just china alone so they're

and china. haidi: from a fragile relationship looking a bit uncertain to a more established one, president xi jinping in moscow. what is on the agenda there. north korea dominated the meeting. this is the third meeting this year. 20 time since 2013, so the agenda is to strengthen the original regionalion -- coordination with putin and push against the u.s. antimissile , which is seriously disrupting the original strategic balance. certainly a very crucial relationship there. thank you so much for that. internet users and mainland china will find it harder to get around the governments great firewall. our china technology reporter has the in following this story. i remember the days of living in beijing and relying on these vpn's. what is the story here? vpnse of the most popular sent a notice to its users it was shutting down, indicated this was because of a regulatory decision and offered to give refunds to people who want to them. this comes on the heels of a government announcement in january

china, india, brazil, argentina. tell us how you approach china. mark: wee a lot of the -- a lot of the big stocks in china are in hong kong. now they are starting to open up the asia market. that means we could get into the small and medium size companies who have exciting thing happening in that territory. i think china will become much more important going forward. maria: how much more of a portfolio do you want in china? mark: now it's 28%. i don't want it to go too much higher because we can't ignore places like india growing at a greater rate than china. and brazil is coming along, too, as a result of reforms. maria: in india you have the rule of law. it's not communist. you have got other ideas in terms of the growth story in india. mark: the reforms modi is putting in place, particularly tax reform is exciting. maria: you say the he morning markets represent 30% of the he morning market capitalization. are you worried we'll see reciprocal tax when it comes to the west. the president said for those countries who charge that kind of a fee, we

, because 90% of the trade that happens with north korea is from china. and so while they have been helpful, they need to do more. >> dickerson: has china let america down in their work on north korea that the president put trust in them on? >> i think they actually followed through on the things we asked them to in terms of whether it was coal, whether it was talking to them, whether it was dialogue, whether it was letting them know and condemning, they did that part. now we have to say, okay, clearly that's not enough. with this security counce resolution that we're negotiating now, we don't expect a watered-down resolution. it will be very telling as to whether china works with us, which we're hoping they, will and we'll know in the next couple days whether that's going to be the case, whether russia is going to stand with north korea and, you know, just oppose us for the sake of opposing us, or whether everybody is going to say once and for all to north korea, stop, this is reckless, it's irresponsible, and we're not going the take it anymore. >> dick

but the new silk road is china solving china's problems. money and muscle heading west on a journey across three continents. bidding to redraw the map and command the century. most of that report came from the east coast of china — but carrie is going to be travelling the length of the new silk road over the next few days. today she's in dunhuang, in the west of china. it kind of sees itself as the power that in the days of the old camel routes was the dominant power in asia, and it wants to get back to that position. that, it feels, is its natural role and, in fact, as the world's biggest trader, in a way this is a dominant position globally for itself, economically. so it's kind of saying president trump is retreating to a certain extent from us leadership of the world economy, retreating from trade pacts, retreating from a free—trade agenda even. and this is china saying we are going to be the champions of that, we are going to be the champions of globalisation. we are also the champions, of course, of climate change. so they are bas

she pointed the finger at china. when she said they would stop trade with those that engage in business with north korea, i think she was really referring to the chinese, there. we go tojapan, we go to japan, now. heavy rain and overflowing rivers in the southern japanese island of kyushu have forced almost 400,000 people to leave their homes. a rare weather front in fukuoka prefecture, caused water surges to inundate homes and roads. forecasters have given a warning that heavy rain over the south will continue through thursday. david campanale has more. surging, foaming torrent of rain are not normally at scene like this in southern japan. rivers have burst their banks under the weight of water, and landslides and muddy rapids have caused damage to residential areas. weather forecasters say the rainstorm is unprecedented. translation: we are in an emergency situation, as in grave danger. i would be surprised to hear that there is already serious damage due to landslide or flooding. over half a metre of rain fell in

-china relationship. china is dismayed with a recent u.s. arms deal with taiwan, u.s. sanctions on a chinese bank with alleged ties to north korea and the u.s. navy sailing through disputed waters in the south china sea claimed by china as its own. >> so we're almost in the end of the honeymoon. so they're doing things that now are getting under china's skin. so it's a combined sort of now we like you, but on the other hand now we're going to press you. and as if to say we can manipulate china into behaving the way we want to. i don't think that works too well. >> that is not the way to play china. >> i don't think so. i don't think china especially now xi jinping has to look strong, has to look consistent, has to be the man of stability. he's not going to do something that is at trump's bidding. >> reporter: china is also clear that it does not want regime change in north korea. >> the dilemma is as follows, in order for economic sanction to be able to force north korea to denuclearize, the sanction has to be so tough that it threaten the stability of the economic sys

that china has a different story. then it makes feelings in the u.k. after a high court failed to prosecute former prime minister tony blair over the iraq war and bring you the story from london. it's monday july thirty first forty four pm in washington d.c. i'm in touch this week and you're watching our team america and we start with russia's response to a new round of sanctions imposed by the u.s. government russian president vladimir putin has announced that the u.s. embassy will have to cut seven hundred fifty five people as a result of washington's policies artie's roman kozyrev has more on moscow's comeback. new sanctions against russia are expected to be signed by president donald trump the document approved by congress aims to target the country's lucrative energy trade with partners in europe washington claims the measures are in response to alleged election meddling well moscow has already responded to another likely round of restrictions by asking the united states to cut its diplomatic staff in russia by s

china's crackdown on risk. how beijing's latest push is rippling through the economy and possibly the world. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. morning hong kong. looking clear out there, hope we do not get rain. betty: indeed. no rain today in new york. it was bright and sunny. 7:30 p.m. tuesday evening here in new york. markets closed mixed. a lot of bad news from washington, including investors in the risk off sentiment. i am betty lou here in new york. yvonne: i am yvonne man here in hong kong. let's get to first word news with a nina melendez. >> australia's biggest banks will have to hold more capital under fresh guidelines from the regulator. one wil

china numbers? us data? both are equally important. china is especially important because it's the single largest market for most asian economies. in terms of exports. china's import growth this year has been very good, if that persists, 14 or 15% year—on—year growth in chinese imports, that will help the rest of asia seat in continued strength so that is important. —— c. what is good about the us is that payrolls over the weekend were very strong. the us economy is in fine fettle at the moment and that helps the world. does this mean we could see an interest rate hike from the fed, a third one, before the end of the year? could this impact the monetary decisions of both south korea and malaysia? the fed will hike later this year further, maybe once or perhaps more, because the economy is infine perhaps more, because the economy is in fine health, despite the fact that disinflation has continued to occur, the labour market is in good shape and so the us will hike rates. in malaysia, inflation was much higher in the last few mon

and china as the u.s. sends a warship to the south china sea. a lot to look ahead to with the g-20 summit in hamburg, germany this week. a potential meeting between xi and putin, as well as trump and president xi jinping. this is bloomberg. ♪ >> a dark, gloomy look to the lion city this morning. you "daybreak asia" are watching "daybreak asia". let's get to first word news now. willind: philip hammond say later the government is changing its tune on brexit and use a speech to business leaders are adopting as realistic tone following the snap elections. splitns about an abrupt from europe were not be discussed. iran will sign a deal on monday to develop the roads biggest gas field in collaboration with total and china international petroleum. 51.1%, whilentrol see in pc will also have an interest, and iran, 19.9%. the trump administration is considering separating the repeal and replace component of abolishing obamacare. white house says the president wants to pass the deal soon. toldweek, mitch mcconnell the senate health care bill from consid

china sea. we have an enormous equity ensuring th ensure that that does not turn into a chinese lake. they claim it. how that plays up with the work that we do with north korea if we want to avoid it becomes very delicate. i agree we need to use strong economic tools and probably the nuclear option in the economic zone is trade itself between the united states and china. again, we're not there yet. but i think the point is we need to ratchet up these sanctions. keep everything at play and get china to make that heavy move before this thing is -- >> remember that trade between china and the u.s. diminishing trade between with china ands u.s. would not be a great day for the u.s. >> but we're i don't understand t beyond the point where we have costless solutions. we have to bear some costs. >> i hate to be skeptical, but i think we'll be here two years from now talking about sanctions and being tough with china. lets just take the worst case scenario, which is that china doesn't move because china

or china? rishaad: china. >> the 19th party congress, the announcements, policy, and so on, it looks like it will be more positive direction. more reforms and so on, so it looks like on the positive side. rishaad: when you say the u.s. is interesting, because you can confuse the two quite happily, 19th party congress, congress, and also a lack of tangible reforms or fiscal stimulus even. china is moving in the right direction in the longer term but u.s. politics is getting worse. if you look at president trump's problem with his staff and also the policy, looks like nothing has been achieved so far. i don't know. the economic front, it looks like the u.s. economy will continue to recover if you look at second-quarter gdp. it is good. wage inflation is moderate. corporate earnings are decent. there were a couple of disappointments like amazon and goode, but a lot was quite from the banking sector, so there is for the room to go up i think. arguably, clearly the trump part of the u.s. rally, the

china wins again. back at almaty‘s zenkov cathedral, dosym satpaev says the nations of central asia are like billiard balls in a game between the big players, russia and china. china, i believe it will be like some threat for our independence. why? because for china, kazakhstan is not an equal partner. for china, kazakhstan only is like one of the players, in the big china political game. that game stretches far beyond these mountains. but already it's changing lives, shaping the destiny of young nations in the shadow of the chinese giant. carrie gracie, bbc news, kazakhstan. and tomorrow you can see carrie's report from poland in the next stage of her journey. you have been watching newsday. stay with us. we'll be taking you to india to look at the troubles facing its start—ups. with job cuts and difficulties getting investment, can the industry survive? and, before we go, formula one teams spent the afternoon taking over trafalgar square, here in london, showing off their cars on a specially desi

unfortunately, that isn't aimed at china and russia more or less share so china and russia more or less share so china will be reluctant to apply pressure on north korea even if it could. absolutely. for the chinese and russians, what they are saying is, they are calling on the us to stop having these big, joint military exercises with south korea. now the americans are saying they won't do that. so, you have really tricky situation here and with some increasingly deadly nuclear weapons being produced in north korea so is going to be interesting to see what comes out of this j—20 going to be interesting to see what comes out of thisj—20 meeting and other discussions in the coming days and weeks. unofficially, analysts think to be telling us to expect a cyber attacks to try and damage north korea's weapons programme. well, that's right. definitely, they can look at doing something like that. it has been done before in the case of the run. but, you know, a bigger problem i think they have got with north korea is china and russia say they want to have talks. —— in the case of iran.

and china?. >> so that's the idea and that power to maintain some level of order to which the rising power would adapt and adjust defense on that underlying correlation if i of the ruling power can be enhanced by relationships with others and with what we're trying to accomplish together. so those various domains but not surprising at. >> host: they said your lead in the financial liberalization. and the chinese like to be respected. and then to be doing the very same thing. >> we are really trying hour best but the jingles are interrupting as. so the gentleman from the red shirt?. >> i am a freshman. i am wondering if you talk about the past 70 years with the international order looks like over chinese international order?. >> that is a great question. but it is one of the most contemplated. and i come from north carolina and i know somewhere in the constitution or somewhere it says usa means no. one. [laughter] did i have no doubt who the good guy is. these other ones i have doubts about. [laug

she spoke to me earlier north—west china. this is still very much in its early stages, it's a huge plan, it is all things to all men and women at the moment and it's very hard to work out which bits matter and which don't, but as you know, rico, the main issue here is china building an almost amount of infrastructure, roads, rails, ports, airports, pipelines, using up the excess capacity from its construction companies inside china and the infrastructure building that's gone on in these china over the past 20 years or so, bringing that construction effort to china's neighbours to boost trade at the end of the day, sell more chinese exports and create more chinese influence. what are the challenges of this initiative and how is this going to be funded? the challenges are immense and numerous. different in different places. in many other places, just beyond me to the west, central asia, we have questions of instability and questions of corruption. infrastructure projects are hard to keep clean at the best of times, they unfold

china is china. and you have uh-huh china americans who have really been here a long time who have adopted the american culture and becoming part of this multi culture and multi racial society. >> so you optimistic about the future of china? >> client will be china. it survived many major events. gone through a lot. >> funny when you say it that way, it's one of things i realize all of the countries that look at the united states transforming -- we have been here for industry centuries. >> yeah we've seen so much. >> we have been through a lot. you think we're right about you? yeah. good luck. you won't see these folks they have businesses to run. they have passions to pursue. how do they avoid trips to the post office? stamps.com mail letters, ship packages, all the services of the post office right on your computer. get a 4 week trial, plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. yeah, and i can watch thee bgame with directv n

are these anti-china? there has been an increase, cases against japan, south korea, other countries, production and exports have shifted from those countries to china. the buying of experts in china have increased, the potentialities of trade frictions and these types of problems coming up will also increase and a natural aspect of the fact that increased favors with china would be accompanied with increased types of cases against chinese imports. another thing to keep in mind is the number of cases that is a reflection of trade policies, 90% of these cases are brought by companies, not by the government, not by the administration. it is not the administration that brought the case against lumber against the previous administration. not the administration's decision to bring a case against sugar from mexico that was heard under the previous administration. the fact that these cases are examples of this, canadian lumber case as some no, the fifth time we had cases. there is an intrinsic policy problem betwe

sanctions or entities in china are. ost: what is incentive for china to see tension between united states and the korean peninsula? guest: china doesn't like what north korea is doing, they don't the north korean program, but unwilling to do pressure on north korea, they fear explosion the sense of north korea lashing out or implosion in the or e of regime instability regime collapse. host: bruce klinger taking calls. independent, michael, go ahead. you.r: thank sir, a famous quote goes like this. it is a tribute to the american leaders are he reported and perceive it lie to wage war tis not tribute to public to be so was mr. oled and that daniel elsburg, pentagon papers. sir, when haley spoke up and outrageous statement to the world that we have the whatever bility to do we want, legal or not, the north korean situation, you have no options. the only option you have is to war illegally because they have the right to defend their country with military arms they can develop just like we did. to show the lies here, if you

years, but will china's infrastructure be able to keep up —— boeing ones. there will be some struggles. that is the huge issue. one of the other things boeing puts out as well as a survey of pilots, boeing estimates that china will need well over 100,000 pilots. notjust pilots. pilots are the cool job pilots. notjust pilots. pilots are the cooljob in the industry. you also need people to maintain the aircraft, so there is a lot of opportunity to employ people in the industry. there may not be enough supply of pilot's and maintenance people in china itself, especially good talent. they have to look outside of the mainland. they are indeed. there was an ad recently 4737 captains in an outlying province in china —— for 737 captains. it is a very good pay package for that kind of aircraft. you would be living in the hinterlands of china, you might be away from your family, if you are a foreign pilot. so there would be some sacrifices, but there are a lot of foreign pilots in china and emerging markets around the region. are the big question is now, of cours

now, you know, it's coming to the point where china is more and more supplanting point where china is more and more suppla nting russia and point where china is more and more supplanting russia and it's a question of how you manage that relationship. everything you say seems to be that russia is on the back foot here. is it trying to write a long on the coattails of china or actually be an equal partner? this is the thing. in terms of resources on loan, people, economy, russia is vastly inferior to china, it is an asymmetrical relationship and always will be. the way that putin has set up his own political regime, how he has legitimised that, it doesn't really allow him to take an openly subordinate position to say that we are thejunior allies subordinate position to say that we are the junior allies of the chinese and there is a lot to be had in presenting this as an equal partnership of some sort but it isn't. it really isn't. thank you very much indeed. let's stay with the world's second largest economy. china has just opened up its corporate bond market to overseas investors. star

what is your outlook on china? >> china, we are still positive. it has gone through a lot of different changes, but the china domestic economy has been going strong, and when we look at the trade numbers announced this week, the trade numbers have been very favorable and we have seen a substantial pickup and exportstrong demand together wie stronger domestic consumption market, which is very sizable. you can look at tencent games penetration and the potential for domestic consumption and china is still going to be able to maintain a solid growth in the foreseeable future. rishaad: norman, great having you on the program as ever. right, let's tell you what we have on the way. , talks of cuts at china's biggest producer. we look at that stock watch, next. this is bloomberg. ♪ rishaad: here we are in hong kong, 10 minutes to the start of the trading day. this is what it looks like when it comes to the pre-market auction period. futures jumping marginally higher. we are looking at al aluminume looking at chilow.lation china hong there is speculation

china. ton i first started going china in the 1980's, all i saw were these old rusty bikes, no cars, then they got rid of the bikes and there were too many cars and now, guess what? and anabled bike sharing shared economy mentality from and anaring into airbnb e-commerce share of total chinese consumption that is double hours and it is rising and really shaping and reshaping consumer culture in ways that we do not really appreciate. julia: that will be exciting for the future. i want to bring it act to the short-term and what will happen in the fall of this year with the committee meeting. how important they are for president xi jinping. how things are shifting and the party's china is getting at this moment from president trump, is any of that embarrassing? at any point,-- he has to respond because he did his -- does not want to seem weak domestically? that is a fair question. i think the grip on political power, support from the military , is very strong. is congress coming up at and youof

looking at china to try to get china to assist. i mean, i feel to understand the question. -- fail to understand the question. host: freddie on the line for those that support military action -- that was freddie. now for those that support military action. caller: good morning. gotteny result we have from being in south korea is now an intercontinental ballistic missile capable of regional ask a. -- of reaching alaska. they will continue to pursue military affect. one of the only recognized states on the world whose purpose of existence is the antithesis of the united states. it hates us, which is fine. not everybody have to look america. i do and i hope most people living here do. but they just -- they do not see a way for for themselves without a nuclear weapon capable of striking us as a deterrent. the dangerous part is we have seen their willingness to backstab us and work around back channels against us. we need to go in there and prevent that from happening. host: so you are talking preemptive strikes on their nuclear facilit

china. they are trying to be ready, even if the u.s. is not going down that route as aggressively as we work under the previous and ministration. were under the previous administration. julia: d you think the window for this will be pretty narrow where you have to make the investment -- there's a cost problem here when you are creating a car that can do both. >> there is a cost problem in gasoline that's when gasoline is so cheap. forline has been affordable two or three years and the outlook has been pretty bullish that it will stay cheap and that makes hybrids and electric cars much less attractive. there is some possibility having the whole portfolio of powertrains gives you flex ability to adapt to the market, but committing to electric and hybrid and more electric than hybrid takes away from your flex ability -- your flex ability if you are dealing with cheap oil and gasoline. ultimately, hybrids are a stepping stone to electric vehicles and some automakers like toyota will tell you ele

china's loan of zhaoqing. darling and mong among sweet dream comes from the global superpower with a price. needs worth paying attention when germany and china meets these days. germany is europe's undisputed leader. china's surging economic power is turning into a global political muscle. the chancellor and the president are meeting before the world's twenty biggest economies get together in berlin. once it might have been america around the table. but germany ones chinese health claims cropping up old world order destabilized by change in washington. and china once open markets to sell into. an ally that can rely on. we know we're going to see this is pioneering for our relations we are happy to note that thanks to mutual efforts on both sides. chinese german relations have reached a new phase in which we are moving on a peak level. the panda special came to britain in the nineteen seventies as china emerged from decades of isolation. ching ching and cha cha would gifts part of an effort to warm frozen relat

relative terms in china. the younger chinese leaders i think by and large see north korea is a pretty ugly piece of baggage. there is a way to make a deal here. the chinese concerns we have feared american troops. we do not want to be on the river. we want to get the southern tip of the peninsula. and here is the main point for china i think. at some stage, north korea will be threatening enough that an american president will really have to consider the use of military force. and if that happens there could be chaos on the peninsula. that has to be to china's disadvantage peers are china, you can do this the easy way. to do this the hard way. >> but then you have to be able to show that you are willing to use military force or otherwise it will be, we will end up with acquiescing to the north korean nuclear threat. >> that is right. and look, if you read the media today, some academic publications in the country, people are already being prepared to accept a nuclear north korea. i will not accept a nuclear n

right now china's president xi is in moscow both china and russia would like to. demonstrate a common interest. deteriorating relations with the united to space both understand that donal's from administration. a serious fan of uncertainty and daydreaming very cautious demonstration. in china and russia is seen to be beneficial on the both the this despite trump's attempt to be best buddies with she a while ago it looks like the geo political set up hasn't really changed just like under obama the two eurasian superpowers seem to be getting along. pretty well while the united states is distancing itself and distrusting both of them. are to new york. breaking news this hour now it's. after the end as it's likely to set a border controls between the two countries r.t. charlotte do joins me live now from paris with more details now charlotte what do we know about this new shift in the longstanding migrant crisis. well that's right austria's ambassador has been summonsed over the fact that vienna has said it could deploy up to seven hundred fifty troops to the border w