china is focusing on us. so we want to focus on china because china has a very strong agenda with using any kind of energy and signer g to expand its influence over all the countries of the western world. and therefore, we must have an agenda to what is the kind of investment that you can have all the kind of trade, authentic operation because we, the country which is the same way prevents any sort of corporation. even now, when we're talking, china is totally obscure and is the country of censorship, about the real origin, nature, and consequences of it. and europe is now coming to realize that china is no longer a purely economic power, but also a political one. meanwhile, the dock workers union in paris has come to terms with its new chinese bosses and is trying to negotiate workers' rights as best it can in the media with other staff over the last 10 years. the, our experience with the chinese has been that they always negotiate as hard as they can and demand as much freedom possible. but if you set your

a crucial move in china, china has caught up to japan. the party has allowed the chinese people to pursue the struggle. a great part -- chinese characteristics in an era. in this new era, we have two strengthen power over our leadership and coordinate --in short, coordinate the implementation of this and a comprehensive strategy. upheld and improved the system of socialization -- socialism to modernize china system and opacity for governance. we remain committed to exercising governance for the party and develop a sound system of interparty some -- interparty solutions. we have overcome major risks and challenges, our first centennial goal -- the field our first centennial goal and is out steps to achieve our second centennial goal. all of the historic achievements and changes in the cause of the party have provided the cause of national rejuvenation with more robust institutions, stronger material foundations, and a source of inspiration taking greater initiative. for the struggle, the party and the chinese people have shown the world th

china. his response, as you say, has been robust, that quite angry about these accusations that have been made for facilitating the potential hack. but they are leaving the question at the chinese government may have accommodated groups who tacitly are working from chinese soil, who may be hacking, in a similar vein to the way that the, the us is treating russia as well and saying that various hacks are coming from russia, what makes this narrative difference as far as beijing is concerned? well, beijing is not acknowledged that there's any groups. they're just pointing out that if there are private interests, just like there are private chinese citizens who are for their own enrichment, stealing intellectual property. i don't think, but american steals something from germany or from russia. it is attributed to the nation, but for some reason, the chinese feel that every time you know anybody, chinese shows up there automatically a spy. you'll note that they've just refused 500 students who

and if you're jamie dimon you're in china, you all want to be in china and it's the first thing the united states could do is get our own house in order and stop funding the rise of our adversary in the conversion of china's economic power in the military power that was a key point in the speech, the real problem in america america's talking out of two sides of his mouth on one hand we have policy in d.c. from both the administrations that have tried to form a new strategy towards china and on the other hand look at the economic form it will host communist party officials and promote u.s. investment into china and vice versa. we are not really playing a coherent game and were not coherent on china as a country even if we are bipartisan in washington that is our biggest problem in as soon as you stop that and as we get wall street to reinvest and we stop investing in china then we can think about winning this game, until then we are not there. maria: it is about money, it is just about money for those bankers. are they not recognizing the national security risks? >> i was a wall stre

you look at this navy, china just has to win the east china c and the civic. so all of these naval assets that they're building and they've got 350 today. they'll have 700 in 57 years. you know, they're going to double us need size of the u. s. navy. the quality of the chinese armed forces is now basically on a peer level with the united states. in fact, they're even ahead of us. in some areas they have hyper sonic missiles, deploy base cruise missile are nearly gets within the 1st island chain. they will get song and china knows that and that's why you're seeing them be much more belligerent. when we talk about on corner, we talk about taiwan. they say, mind your own business, somebody that came recently, which i thought was interesting as united states, now we're pushing your hand to double their military spending. japan is also mentioned taiwan. now we're not going to let you take. i won. and the chinese diplomatic looked at that and said, maybe we'll sink one of your ships. they're very wary of japan because they like to say americans like to talk to littl

shery: china credit team later wilkins with the latest on that china credit market. our next guest saying she expects continued inflows into the chinese government bond market. given that diversification to global bond portfolios. joining us is the head of asia-pacific fixed income at alliance. great to have you back, jenny. let me ask you as a first question what i asked rebecca, why are we seeing this effort by the chinese government, to really make the bond markets more transparent, for account ability? to really reduce moral hazard and financial risk? why now? >> first of all, covid does not really change the overall trajectory of china's default past. for credit investors like us it is not the default itself that scares us or concerns challenges us. it is how default risk is priced. how distressed securities are traded. and how defaults are dealt with. the key challenge we are looking at in the market is the lack of those factors, particularly consistent, transparent, and predictable resolution process. we have seen progress made in areas over the past 12-18 mon

if that's true, china going nowhere. if that's true, china would never have achieved that. that has already it's he you know, it's the young chinese you, extraordinary knowledgeable about the world and that's the back. we have the post 94000 generations, extremely lifelong about. i mean, i'm not saying wikipedia, is that great, but i mean, we compete is banned in china. yeah. but, well, basically you can still get cnn. let me, let me give you one exam. ok. i'm so sorry. sorry. yeah, that's, yeah. but listen, i think that the year before 2019 alone about a 120 a 130000000 chinese people went abroad and came back the largest tory, the outbound part of the country in the world by far so. so to say that somehow chinese people don't know about what's going on in the world. i think that they're battling mistaken goal still be there more from the leading chinese venture capitalist and political scientists. after this break after the pudding bite and some european leaders, such as germany's merkel and france's macro called for renew dialogue with russia. the baltic states in poland

, that it's cumulated by china. i think that disclose. he's thinking that he's going to make sense for us to be friend. russia because chinese, the big the big don't you think from through incidentally, so that's a form of kind of projection that rushes to the types. i think you were saying where and i and we, and this is, it's all self inflicted. we did it for selves. ok. and you and i have been talking about this for years and years and years, and now it's, it's rate in their face real life. what have we done? and as you pointed out, the report after report keeps the drumbeat going. it's like, you know, you know, there's only one here. okay. they can't really change gears and they can't change the their destination. i mean there's, there's stuff because of brushy gay because of trump. and because of the media hysteria in respect to what the buying really wants to do, it's almost pre determined and that's pretty. but benteke go ahead. well, yes, it's re determined and their desires have very all this like to me cru

-china threat. on the other hand, china pushed back saying it does not accept american interference in what it calls domestic affairs and will not be lectured to by the u.s. the next big question, will this meeting lead to another meeting of president xi asian and president joe biden? maybe another set of meetings between the summit of the u.s. and china possibly later in the year. for that to happen, we need more talks. given that these talks took so much effort to arrange, it does not augur well for smooth communication between the two superpowers. romaine: that was colin murphy, given us that report. we are going to pivot coming up to eight slightly different topic. we are talking about -- the rise of the east. there was a time when it was the rise of the west. there was a period between the 1490's and 1530's. patrick wyman has a new book. we will speak with him after the break. ♪ joe: the four decades between 1490 and 1530 saw the development of everything from printing, mass media, globalizat

in the south china sea. there are currently four chinese vessels patrolling this area on the outskirts of the shoal. there's trouble in the south china sea. the chinese government is amassing ships, taking over reefs and rocks. we sail into occupied maritime territory to take a closer look at beijing's aggressive policy and the militia it uses to enforce it. five years since a landmark legal victory for the philippines, we ask whether china is adhering to the ruling. what you get is this overwhelming narrative that's now global of china as a bully, china as a rules—breaker in the south china sea. all chant. we head straight into the century's hottest geopolitical dispute and meet filipino fishermen caught in the middle. bolinao is a fishing community in the north—west of the philippines. george has been fishing since he was just 12 years old. george's sonjr fishes too, but worries for his future. george and jr fish in the hotly contested south china sea. $3.5 trillion worth of international trade passes

shares and china shares. china shares down sharply, so the question is not from a contagion standpoint of the regulatory issues from china heading to the u.s., but just the risk aversion. dani: abigail, thanks so much. both the u.s. and china are highlighting deep differences, and that is after their first high-level talks in months. let's get an update from bloomberg's emily wilkins. does the relationship seem like it is continuing to deteriorate, or are we having progress in these talks? emily: we are today from deputy secondary of state wendy sherman , speaking with foreign ministers there. these are the first face-to-face discussions with u.s. and chinese diplomats since we saw that acrimonious meeting in alaska several months ago. what you heard from the deputy secretary of state was that this was a forthright conversation, a professional conversation, but also a tough conversation. the stated goal from the white house is really to keep the lines of communication open between the u.s. and china, coming a

or we work around china. that's kind of pointed christy. what about that last part? why exclude china from the deal at a time when it seems like tensions between the us and china, are significantly rising? well, it's meant to try to contain china, and as you said, china's power is significantly rising and as a grow that spreading its influence, its soft power is technology and its agenda and its values. and that's something that the u. s. has grown quite fearful of. so while yes, on one hand, this is a technology war. on the other hand, this is also a war of values and soft power and influence. and right now the u. s. is on the losing side of that. so by doing this deal, by basically excluding china, you're essentially telling other than the other nations that, hey, we are forming a coalition against the country that we're excluding. so the u. s. is trying to form the framework of this proposal and basically spread the western values and the western agenda not saying hey, we're going to all work together by h

we are a brand of china and for china. that's your businesses taking the moral stand against it can you say nba? how does the nba think about china? >> we had that interview with joe a week and a half ago where we he put the question to him. clearly, he supported the chinese government as i think we all imagined he probably would the question is can you -- is there some kind of constructive engagement going on behind the scenes clearly if you come out publicly and say something negative, you can't have that engagement behind the scenes. i don't know there is that engagement behind the scenes >> after looking at the last couple decades, it doesn't seem like there is a lot of conversation behind the scenes taking place >> money money. money. thanks, eunice we will talk more with kyle bass in the 8:30 hour he will talk about his views on what china is up to. >>> up next, a lighter story, andrew >> up next, i promise you. nothing will glaze over. if you get the pun there krispy kreme returning to the public markets today after

foreigners want to contain china, cd and ping, use the word today in slave china. in other words, foreigners want to do to china what they did during the colonial period. and that is really a highly motivating line of reasoning for him to use. and it creates a kind of emotional connection with people in china. you can still get very angry and emotional about the past. richard mcgregor joining us from the low institutes. thank you so much for your insight on this chinese and 10 ari of the communist party. we appreciate to the u. s. now where the american actor bill cosby has walked free after a court overturned his sexual assault conviction and ordered his immediate release, he was the 1st u. s. celebrity sent to prison for sexual assaults since the beginning of the me to movement. now 2 years on the pennsylvania supreme court decided that cause they never should have faced charges in the 1st place. after striking a non prosecution deal with a previous district attorney. and just like that, bill cosby was free. his car sped by the walls of the pennsylvania prison in

and in china. the country unveiling a sweeping overhaul of its $100 billion education tech sector, banning firms from making profits, raising capital going public. the crackdown is part of a wider campaign against the internet sector. chinese adr's inner longest losing streak since 2019. news coming out of china continues to be problematic. a chief market strategist is joining us now. does this give you more pause when it comes to chinese tech, adr, and investment in general? matt: it does. one of the things we saw last year when alibaba first saw some big restrictions, we thought maybe it was a one-off thing, jack ma had gone too far with some of his comments about the chinese economy and government. and he stepped over the line and they smacked his hand pretty hard. we thought it was a one-off thing. we have learned this year it isn't. the past few months.ral exam didi is the most recent one, and then this weekend. the big impact on how people will invest over there. a lot of money has been inves

moved into china tech and food delivery. any idea on what the next target will be or is that going to continue to cause this price action? garfield: part of the problem for chinese assets, it will sustain for at least a few months. nobody's quite sure where the hammer will fall again and also, the basis seems a little bit unclear. what this has done has highlighted an issue that has been bubbling away for a while which is that china has been becoming more authoritarian and shifting towards a more isolationist base relative to the rest of the world and along with that, their motivations for doing things are not capitalists. they are not in the same world as it were of a lot of investors so they do not necessarily mind if a bunch of companies see their shares dropped by huge amounts provided that the government is confident that what it is doing, for example, the education crackdown, which is aimed at making people more likely to have children, that is a long-term aim. in the short-term, that causes the stock market wiped out.

and yet china is highly dependent on the good. well, the rest of the world is for 10 doctors, for oil, for many other commodities to continue the growth. so i don't think the past 40 years, that's all a good idea, but a good stop and model. so think about the next coming years in china. i try to how we, there china expert and the author of the book read capitalism. thank you so much for sharing your insights with us. the united nations, there's the corona, of ours pandemic may come at a cost of over $4.00 trillion dollars to the global tourism sector. report was that slow vaccination rates and developing countries, a leading to mounting economic losses with many of those nations dependent on international visitors. among them is thailand, boat owner, some sac, but lau hasn't earned anything today. in fact, he's had just one customer over the past month, making just $40.00. before the pandemic, he usually made $100.00 a day. his hopes and those many others now rest on a government pilot project. from july, 1st fax, unaided torres f

that it's intimidated by china. i think that disclose, he's thinking that he's got to make sense for us to be russia because chinese, the big the, big the from, through incidentally. so that's a form of kind of projection that rushes heights. i think it would thing where i and we and this is, it's all self inflicted. we get into our selves. ok. and you and i have been talking about this for years and years and years and now it's, it's right in their face. realize what have we done, and as you pointed out, the report after part keeps the drum be going. it's like, you know, there's only one here. okay. um they can't really change gears and they can't change the their destination. i mean there's, there's stuff because of brushy gay because of trump and, and because of the media hysteria in respect to what the buying really wants to do, it's all pre determined and that's pretty pathetic. go ahead. well, yes, it's re determined and their desires have very all this, like to me, crushing trying to quarrel? well, i mean, ni

we had successive administrations thought to engage china and encourage china and frankly let china get away with cheating in international trade and markets, you came along and to be fair to give you credit you change the way that we think about that, the biden administration has accepted the premise that china is a strategic adversary or competitor but it doesn't seem to be doing much but china continues weathered cyber hacking or doing what it's doing with companies in the u.s. and elsewhere still throwing his weight around the administration doesn't seem willing to push back what should they be doing? >> they should do with the trump administration is doing with respect to the economic aggression in china engages in in sanctions and tariffs they should stay in place and be increased china should not have access to capital markets the stain of the concentration camp with the uighurs resisting over times in the binder administration has turned a blind eye the two most important things for me on the china front when i was in the white house i drafted an executive order that would'v

it was part of a china, it was returned to china. and when you have a years worth of riots in the street, which are being heralded by the united states by britain, no one says any words about it, there's just kind of tough. tough isn't a terrible candidate. so you know, you, you want to put a rosy face on this thing and say that somehow these people. but is it a coincidence that to batch taiwan, hong kong sion john south trying to seize these are all areas literally surrounding china, which are being used to attack it. and this is what you have in china. china is retreating and you're getting the exact opposite of what you were aiming at by attacking it. china is in fact being more defensive and big. why? because us and everybody else says that china is terrible. you cannot deny the daily drumbeat of nonsense that comes out of the press there. where is the evidence hallway? where is the evidence? i mean, all the evidence was passed by great britain, by germany, by everybody. but under pressure the united states, they all withdrew and

he says there is plenty of runway in china. >> our portfolio in china stands up 27%, which is a very large part of the portfolio, but we see plenty of opportunities in china. do remember that we invest according to the trends we have established for ourselves. when you look at trends like sustainable living, longer lifespan, even the future of consumption, these are prevalent in china. we believe they are still very early days. there will be plenty more to go. >> to your point, in terms of market trends, you are invested in didi, and financial valuations plunging after the regulatory pressure, regulatory clampdown. how do you view it? will it affect your appetite for chinese tech? >> at the end of the day, what drives us is the long-term outlook of the country we invest in, of the companies, and space they are in. regulations are what they are. not only in china, we have seen regulatory changes all over the world. we are used to that. it is part of our interesting value exercise. we look at every risk, including around regulation and many other aspects, and we make a decision accordi

biden to rollover for china on this. i know his policy hasn't had much teeth, what is your expectation for u.s. china policy. >> they won't stand up to any of our adversaries, they want weakness from america but look at china's record and of course, you pointed out they've enslaved people, they persecute people based on their political views and the far left progressives in congress want to look the other way towards lot, who are these groups that are saying president biden should turn his back, give everything the keys to the candy store china, the green new deal in the paris accord that is a gift to china because they stop the ability to manufacture in america make it difficult to manufacture things in america which means those jobs go to china and china amidst more carbon to make the same steel and products which if he made an america because they have good standards here they love beating up on america yet when it comes time to stand up against people who abuse human rights i china they tell president biden to look t

only socialism can save china and socialism with chinese characteristics can develop china. when president, she has emphasized the absolute leadership role of the communist party, he's expanded state control during his years is trying to leader as critics accuse him of being a dictator. katrina, you reports from beijing, president party secretary, the people leader. and to some just papa, she, she didn't ping is called many things and as the communist party celebrate, it's 100 year anniversary. the 68 year old is consolidated disposition as the country's most powerful leader in decades don't go on. the party has unite it and they let the people in opening a great path, making great achievements, forging a great spirit. she has led china for 9 years and after a bullying presidential term limits in 2018 is unlikely to step down anytime soon. he began his term with an empty corruption campaign, which the one and a half 1000000 officials punished. it also purged the party of any opposition to his rule. she then promised to an extreme polity. nationwide a promise, he said he fulf

on the other hand, china's domestic reforms, and how china is constantly being isolated from the outside world. it is going to affect the productivity growth, especially being discussed, the china-u.s. decoupling, will play a big part in how china can catch up in productivity. we look around these parameters and we have evaluated some base cases, upside and downside scenarios. in our base case, if everything goes on track, so we forecast china can finish the overtake, at the start of the next decade. but it is far from certain. if things go against the chinese way, then you might see china will probably never be able to catch up. manus: eric, thank you so much. the big take is on your bloomberg terminal. our economist at bloomberg economics joining us for that take. maurice gravier has been listening in. let's get the emirates nbd take on china. are you drawn at any level on chinese bonds? on the severance first of all, let's kickoff their -- on the sovereigns first of all, let's kickoff there. maurice: i think valuation in china is risky. definitely a risk you can take. i don't know if

in the south china sea. all chant. we head straight into the century's hottest geopolitical dispute, and meet filipino fishermen caught in the middle. bolinao is a fishing community in the north—west of the philippines. george has been fishing since he was just 12 years old. george's son jr fishes too but worries for his future. george and jr fish in the hotly contested south china sea. $3.5 trillion worth of international trade passes through here every year. it's believed to hold sizeable reserves of oil and gas. six countries claim exclusive economic zones, according to a united nations treaty. each one stretching up to 200 nautical miles from their coastlines. the area in the middle is regarded as international waters. but china stands alone in claiming all of the territory and its resources within its disputed nine dash line, created after world war ii. george and jr fish at scarborough shoal. around 160 nautical miles from bolinao and more than 400 nautical miles from china's coast. the shoal is abov

scarborough shoal isn't the only reef in the south china sea that china has taken an interest in. satellite images from 2012 to 2020 of mischief reef in the spratly islands reveal it is slowly being transformed into a muscular military base complete with airstrips and anti—aircraft guns. at this reef and six others in the spratlys, china dredge sand and rock onto coral reef, turning them into artificial islands. similar islands have been transformed where china maintains a constant presence. some believe if beijing builds on scarborough shoal it will completely control access to the south china sea. tensions rose this year when china began swarming reefs and rocks with hundreds of votes in the spratly islands. philippine secretary of foreign affairs had had enough and tweeted asking china to get the "f out". i spoke with the secretary to ask how he acted so strongly. talk us through your twitter feed and your rant and explosive tweets. the secretary deleted his tweet and apologised to his chinese counterpart. a spokesperson said they hoped a certain individualfrom the said they

and it's been a turbulent century for china under that party. it started with a secret meeting of 53 people in shanghai in 1921, and has since been transformed into a colossal instrument of political control with some 92000000 members across the country. for decades, the people's republic of china was essentially close to the rest of the world under found the leader miles on. today, the once impoverished nation is the world's 2nd biggest economy, but under china's communist party, that transformation has come at a cost. today tourist bo, it's ply this lake but 100 years ago it was a small group of marx's to sort out. this is alex, but they had convened in shanghai, but the fear of spies. so then move their meeting to boat on non who lake 100 kilometers south of the city. he is where they found that the communist party today non who receives visitors from all over china. that meant that it is the communist party that stands for and has brought us the good life we have today was to take our house and the government has built an impressive museum o

i mean, in the mainland china, in mainland china, it's stock. there are no protests allowed to send, is only for the very brave or for people who are seen as not having much to lose. and i think the, the way i see it is bay ging or mainland china is a play. some people lower their voices, they whisper when they are be critical. katrina, you're, you're a very western view of this whole thing. i mean this, the truth is that most asian societies and you're from singapore, there is a high re like are you that is pace. i'm sorry. oh, i'm sorry. yeah, sure, sure, but i mean it's, like i said, i'm in singapore. these other places, let me just give you a visual and then you can pass what you see, what i'm saying. so this is july. the 1st celebration here on my laptop that the handing over of home home from the british back to china and the difference in the crowds in 2003, 2019, and 2021 thing. what's your explanation for this? so this is the direct direct result of the nation with the law. so for the last 20 years, we have to transition all hoping for.

i they have a huge border- to the himalayas with china. it feels it's very close to china. china is a much bigger economy, | about five times the size of india. a very big and very strong neighbour. i and it has a long history of not playing a big role| in international affairs. india has with that, i one of the key players in the nonaligned movement. a great tradition of india not - taking sides and not playing a game of setting up alliances. you can imagine with the huge long border, siding with america - against china it might be - a very uncountable position. but you are right india, _ feels very uncomfortable and circled by all those countries just . as yasmin saw in africa that they are all sorts of infrastructure projects being funded _ by china as part of it. it feels circled, - but has this version two building alliances, so it's an uncountablel position in the thing _ about ending it was to remember, it is an inward —looking . country by building a very strong and big economy. and if you check multi—part - of the well it looks very bipolar at the moment but in

are negligible for china. the more important question i believe is it help or other countries will align their policies in the coming months of years with us. and also our bill to increase pressure on china. now a quick look at some of the other business stories making headlines. the 5 of i on fact covered 19 vaccine is on track to become the 1st orange job approved in china . chinese regulators completed an expert review of the m r and a vaccine china looks set to use the drug as a booster. those who have received to shop a main fact new passenger car registration says 13.3 percent in europe in june, rising for the 4th month in a row. according to industry, data sales are continuing to recover from the low level report last year when karenna vice restrictions shut car dealerships across the continent. in the 1st 6 months, sales rose by, by a quarter to 5 point 4000000 cars in tech company square is finding a new firm that's focused on coin according to square and twitter. the jack dorsey he wants to create an

it is purely smear and suppression out of political motives. china will never accept this. china will always stand firmly against and combat any form of cyber attacks. still less we will encourage support or condone any cyber attack. american security agencies have published more than 50 tactics. they say we're used by chinese hackers to target networks. and the u. s. is indicted for chinese nationals linked to the ministry of state security with a large scale campaign to computers between 20112018. we'll get to august. surely the 1st katrina year reports now from beijing. this collective condemnation of chinese cyber attacks by at least 30 countries, including the u. s. has been deeply embarrassing for aging. china has responded by denying that it's supported or encouraged any cyber attacks, and it's called these accusations groundless and politically motivated. now bay ging is trying to undermine the credibility of the u. s. allegations by saying it hasn't provided enough evidence. there are simply too many of the actors around the world. it's very difficult to pinpoint their exact

china. he doesn't just talk about making china great. he talks about making china great for the world. he talks about promoting these chinese systems, socialism with chinese characteristics and having these values go out beyond china . and we have seen that with some of his projects, the beltran road initiative, for example. and the way china is really reaching out to other countries through different types of diplomacy, including vaccine diplomacy that we've seen with the pandemic. so there's going to be a lot of talk of, of glory, of greatness of plans. but what we're not going to hear about is the failures of the communist party. we're not going to hear about the blend is such as the great famine of the 1960, which potentially killed millions. we're not going to care about the protests in crackdown and gentlemen square in 1989. this is a very carefully choreographed piece of propaganda to this mormon that they've been working on for months and months and certainly china, security agencies

-china relations. joe biden met with members of the security team to discuss possible responses to ransomware attack's against u.s. entities, blamed on russian link tankers. biden is facing pressure to react following a massive july 4 hack and cyberattack against the rnc. the white house would not say if the administration should be did the attack to the russian government or criminals. the former south african president, jacob zuma, has been taken into custody to serve a 15 month jail sentence for condemned of court -- contempt of court. he is said to have handed himself in. he was found guilty of violating an order to testify before an official panel. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: indonesia's finance minister expects the budget deficit to stay elevated next year as the nation's worst coronavirus served hampers recovery efforts. in an exclusive i

china sea. i will be glad to talk about and answer questions about hong kong and taiwan because there a lot of comment in the book but i want to draw your attention to the south china sea. it's extremely important and it reflects a new tack tick. that's the thing we did is the communist party. the communists invented a new -- so what's happening with the south china sea is it's a trial run of what they call gray zone tab pics. what is the gray zone tactic? gray zone tab that means it's about territorial -- without using the military so basically enables the country to extend its territory without a traditional war. this is how it works when china takes bended the south china sea. the body of water in southeast asia. it's the major trade route so 90% of the trade going to china goes through that route in china in several countries including malaysia the philippines and vietnam share claims of this body of water could sometimes there are historical disputes as to what area is yours and mine. this

what does it mean for china? john: i think countries all over the world, u.s., europe, china, or waking up to the importance of data to the economy at large. everything from manufacturing to services to investment banking. now the u.s. is starting to plan for, how do we allow trade across borders on the economy is ever more data-dependent? if the u.s. is able to come up with a plan for its allies and europe and korea and japan, it could disadvantage china if china is not a part of that. haidi: does china have enough homegrown champions to be able to, i guess, to bring to life this idea of the two internet's? john: i think china has shown it can supper -- set up its own regime for how to govern data, how to govern the internet. the question is how vibrant will that space be if it is not able to internet --interconnect with the rest of the world. the u.s. and china are in a competition to have sway over their technologies over the future and china is going to be cut off from the rest of the world. how innovative ca

they have a huge, long border through the himalayas with i china. it's very close to china. china is a much bigger economy, about five times the size - of india, a very big - and very strong neighbour. india has a long historyl of not playing a big role in international affairs. it was one of the key- players in the non—aligned movement, you'll remember. so this is a great tradition of india not taking sides. and not playing a game of setting up alliances. | you can imagine with the huge, long border, siding— with america against china i might be a very uncountable position. but you're absolutely right that india feels very- uncomfortable, encircled by all those countries - as yasmin saw in africa that are having all sorts of road. or infrastructure projects - being funded by china as part of belt and road. it feels encircled but it has this aversion to building i alliances, so it's in- an uncomfortable position. and i think the thing i about india one needs to remember — it is- an inward—looking country but it's building a very. strong and big economy. and in the fu

we china all together. but one single count, we can't have a strong relationship with china that sure. so if you go in that interaction alone as equally sure that you will lose that relationship. so i believe that is the most important mistake. above and beyond party politics be the left wing, centrist, or conservative. what unites these politicians is the worry that europe is not speaking to china with one voice. because china is focusing on us. so we want to focus on china because china is a very strong agenda with using any kind of energy and sign energy to expand its influence over all the countries of the western world. and therefore, we must have an agenda to what is the kind of investment that you can have all the kind of trade, authentic operation because we the gen 3, which is family way prevents any sort of corporation. even now, when we are talking, china is totally obscure and is the country of censorship, about the real origin, nature and consequences of damage in europe is now coming to realiz

the consumer is an interesting story in china. that is happening in china. you have to ask yourself how the rest of the world will get back to where we were. i think there is significant uncertainty over china's recovery. >> this coming at a time when you're starting to hear central banks are leaning less dovish. does that change the picture for central banks? >> it has to raise questions. we have this crabwalk with the fed talking about tapering it, canada, australia, others hinting at tapering. the surge in infections is not keeping up with the pace of vaccinations. consumers won't be able to spend the way they would have been able to pre-pandemic. if the search continues at the pace it is, you can imagine how challenging this would be to the recovery. >> coming up, we spoke to the united states and the u.k. as they claim the chinese government for the microsoft change attacks. that is on the way, this is bloomberg. ♪ >> there -- they are still determining what happened. investigation is not finished. my understanding is that the chinese government, not

can we just blame china for that? >> when you talk about china in particular, it's almost 35% of the em. when you talk about the equal weighted s&p, that's its own problem when it comes to what the chinese market does here. so look away from china. india still acts great. brazil still acts great. so em away from china actually still acts pretty well here. jonathan: where does japan fit in? >> what's really notable, some of these asian consumer cyclicals many of which are found in japan have started to reassert themselves over the last several weeks. i know that on most sounds crazy even the headlines out of china. asian cyclicals have started to turn back up over the last two weeks. so have the european cyclicals. it reminds me of last summer. asian and european cyclicals led the u.s. cyclicals by about six weeks. there seems to be something brewing there in the re-catalyzing of that cyclical trade. lisa: what's the strongest correlation in terms of input that seems to be driving that shift? >> i think it margin we ha

in the same thing for may in china, right? you see these agree just abuses you think of how we do this, right? what should government do for good or for bad, and maybe military start with how speaks of the expression? >> yes, i've book who definitely a lot of failures of the u.s. government in addressing this issue despite the agreements of what china does spread this includes the last administration. although trump got praise for china there's a lot more that he could have done. for instance one key legislation that should have passed a really should pass as soon as possible if we do care about human rights and as a country as the weaker force labor prevention act but what that would do is and all products from the region. overwhelming amount of hard evidence that there is a high concentration of forced labor camps. it's independently to set them to ensure their products are not being manufactured by forced laborers. they will be really impactful. that is an area that china has invested a significant amount of funds in develo

back to the other case is a colony of china. and from the colony of u. k. cartoon has always been very powerful that been even the chinese government knows that to some extent, that quite afraid of it was quite a little bit of lucky for me. i'm currently working from daddy and danny. i think these are the only 2 newspapers that allowed me to go cartoon, but there are a lot of father young cotton where it's not a job and they were quite afraid of a new national security law. they don't want to draw the national flag or the hong kong stack and they won't play with the national anthem. they used to make fun of seeing things so right right now they are afraid of doing as trying to cotton their right life everywhere. and that we won't know where the red line moved on one side from rock direction. and it's actually the case and right now in hong kong, me. so it's important for us to, to keep on turing, i've got cartoon and to one day this is a, b, i. e, if the thing that they're, they're not going to do something i'm asked, but to me