imports the china and over the south china sea. we have seen the offshore yuan versus the dollar trade lower following these tweets, and the question is whether this is more empty rhetoric from donald trump or whether he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's, unless he can make a deal. what is the buzz on the ground in beijing as to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media as to how some here feel. th

positive for china. exports exceed imports, that is a fact. a lot of is also generated from the service industry, so in the long run, china's economy looks good. and there are a lot of chinese companies who are looking overseas to acquire businesses, but they keep getting shut down by regulators, including yourself. what is the impact for chinese companies in the future? how do they fix this? fair.needs to be china welcomes foreign , so other countries should also welcome chinese investors. >> this is a massive undertaking, the transition of the economy, but you can see, the research side, the consumer side, the tech side is going very strongly. the chinese firms are beginning ageinvest in lower-w economies in the same way that other businesses used to invest in china, vietnam, myanmar, africa, and effectively replicating the stage of development they went through and other countries and building infrastructure to create trade flows, trade corridors. as ever when you're trying to do something very ambiti

china says taiwan is not its own country. china says taiwan is part of china. we decided in the 1970s, to recognize one china, just one chinese government with its capital in beijing, that was a change for us. we changed course after decades through great diplomatic pain and achievement, we made the decision to acknowledge that the chinese government is the one and only chinese government. we do not maintain separate diplomatic relations with taiwan any more. not since the 1970s. but today donald trump called and spoke with the president of taiwan. and then released this statement, announcing the call as one of his calls with world leaders today. if you don't follow this stuff, a call to taiwan, a call between the president-elect of the united states and the president of taiwan, it may not seem like the biggest deal in the world. hey, it's just one phone call, why is this a big deal. this is something we don't do as a country. this is something we haven't done on push, very carefully for decades. this is the first time a president-elect of the united states has

china is firing back. an editorial in the people's daily -- that's the official newspaper of the chinese communist party -- and it comes with this warning to trump, writing international relations 101. china is an independent sovereign state with its own national interests. as a sovereign state, china sets its own policy and can retaliate if necessary. so what is donald trump doing? right now we're get something very mixed signals from trump and from his inner circle. just yesterday, trump's top aides crisscrossed the airwaves to insist that his call with taiwan's president was not a provocation with china. >> chuck, this was a courtesy call. >> nothing new should be read into it? >> well, i don't think so. >> does this signal a change in policy or was it just a phone call? >> it was just a phone call at this point. >> the folks inside trump's transition are leaking the opposite view. "the washington post" is reporting that trump's call was an intentionally provocative move, and it was planned weeks ahead

that may have already gone to china or may soon go to china. >> so that's why there's a much greater fear in failing to catch chi mak. >> in 2004, the chinese didn't have a strong navy capability. they were really a brown water navy. a navy stable to operate in shallow water. chi mak chose the chinese efforts to be able to expand their capabilities into blue water. >> if these technologies are lost, then it means we don't have that edge. so, god forbid, if there's ever a conflict in the pacific that involves china with us on the other side, then i believe lost technology will cost u.s. lives. and that's one of the things that makes me angry. >> in the fbi we have to follow principles, policies and laws. and one of those is we have to have the evidence. our greatest fear initially was, will we catch chi mak doing what we thought he was already doing? >> the thing that hit me hardest about this case was that we've got a man who came here for better opportunity and, in fact, was a spy. sent by china to come here, pledge allegiance to the united states. he took an oath with a full intent

china relations into sharp focus. it was the first time since 1979 that american and taiwant ease leaders have spoken in a broke from practice. it was a routine congrat la tore call but on sunday night he rit sized china economic and military policies in a series of tweets. dm china a front page editorial in the daily warned the united states risked a confrontation with beijing. the obama administration said the national security council officials spoke with their chinese counterparts to reassure them of u.s. commitment to the one china policy. joining me now is ian bremmer, the of the eur asia group, a global political risk consulting firm and ripped haass, the president of the council on foreign relations. his fourth coming book is called guess what. am pleased to have both of them here. so i begin with you, richard. how serious is this? how did it happen? and what is going to -- how will it play itself out, is where i want to go in this? >> it's pretty serious in the sense that the call as you said broke, i would s

he strengthened china? >> well, china is the largest trading nation in the world so tpp had 12 countries, not including china. so it seemed strange the chinese -- the transpacific trade partnership excluded the largest trading nation in the world. >> because it was strategic to offset china. >> well, u.s. and china are partners but competitors. we must remember that. so countries in the region including korea, australia, japan, the philippines which have been under the u.s. security umbrella perhaps have to rethink whether they can count on the same level of reassurance from the united states in terms of. >> that's created anxiety. >> well, they had to rebalance their relationship with china and the u.s. >> there's a global supply chain these days. couldn't china in the event of the trade war we've been talking about couldn't in effect stop production of the iphone tomorrow? >> it could, it would hurt apple first and foremost. you can imagine what that would do to inflation in the united states. what that w

east china losing the war? —— is china. no matter how bad it is, we can't say that china is losing the war. that there just tell you, it is tremendously bad in beijing and surrounding area. over 400 million people have been affected. my own personal friends when they go to beijing are experiencing in tamil bleeding for no reason —— internal bleeding. and they have gone back to shanghai. we have spoken to you almost every year for the past three yea rs almost every year for the past three years and you are very supportive of the chinese government and their measures to basically improve the pollution problem. what more needs to be done? they need to shut down coal—fired power plants. they made an announcement to shut down over 20 coal—fired power plants. the equivalent of all of united kingdom and spain's coal capacity combined. they need to have more monitoring and transparency into pollution data. in 2015, at the beginning of the year, they announced a strict environmental law which not only has transparency but gi

faith in china. sophie: what are we looking at? >> we saw emerging-market currencies get hammered in response to the fed more .ositive first rate hike the next step according to a number of analysts and traders are looking at china. can they, and will they, have the willingness to continue to support the yuan instead of letting it depreciate faster? reservesthe drop in either chinese, they have been depending -- defending the currency. $279 billion of their reserves depleted, down only $3 trillion, but down from $4 trillion. rishaad: a quarter of their reserves. stephen: there is concern. now china's desire to see the yuan fall is critical to providing, preventing a bigger flight of capital out of china in anticipation of further renminbi weakness or one-off. it exacerbates by what trump has been saying, labeling china's currency as [indiscernible] he wants a stronger you want, but he is also talking up a stronger dollar. which one is it? rishaad: with the fed, when they act, they reverberate globall

and china over the u.s. gettingown, perhaps traders some reason to pull back amid the dollar's strongest quarterly rally since 2008. net long positions on the bloomberg dollar index increasing. if we look at dollar-yen, those are at their highest this year after a surge in the spot rate. a little bit of pullback in the dollar today, money moving into that fate haven that is the yen. fct data, a planned production boost from libya stalls and investors are the most optimistic on oil since the slump began 2.5 years ago. that is looking at net long. longs,unds adding to wti goldin nadal drums. prices have fallen for six straight weeks. hedge funds have cut their bets on a rally to be lowest since february. manus: thank you very much. great round up on what you can focus on in the market. let us focus on bp. they have focused their relationship with abu dhabi by swapping $2.2 billion of their own stock for state in one of the emirates largest on-shore oil conglomerates. anna: signs of growth next year following m

is part of china. it's not just taiwan according to president duerte, trump said that duerte is going about his fight against the drug lords, quote, the right way. that's a very violent fight. the same president duerte who also, by the way, insulted president obama. washington's been critical of the philippine government's execution of drug dealers without the benefit of judicial proceedings. so let's bring in the cnn politics senior reporter and gordon change, daily beast columnist. trump's call from a leader of taiwan, really a breech of protocol here or was it just a mistake or is he subtly trying to send a message to china? what's your favorite on this? >> that's the answer to that question we don't really know, martin. it's certainly a clear breech of the protocol and practice of the way u.s. relations with taiwan and china over the taiwan issue have been conducted for 40 years. i think it's too early to say yet whether donald trump is previewing a new emphasis and approach in the u.s. policy towa

>> i would not presume to advise the president-elect on china policy, but i would warn him that china is very willing to flex their military muscle. if you remember george bush jr. in the first month of his presidency had to face a china crisis with one of our navy jets got clipped by a chinese plane, it was grounded for ten days. for ten days seized our people -- >> happened back then. >> and even under bill clinton he had a china confrontation with warships being put in there. so for donald trump it's been a lifelong campaign against the chinese, but it has real world foreign policy implications. >> but charles payne, we've always -- with the chinese. one thing weird or refreshing about donald trump is he's not. >> he's not. but again,amy's got a point with respect to mexico and canada are going to fold on nafta. that's going to be pretty easy. but china already they flew that long range nuclear bomber, you know, they have militarized or they're militarizing that manmade -- >> so you'd be afraid to take them on? >> no, you have to. the longer we wait, the more powerful they become.

into china. there is the tipping point. 2015, $15.3 billion in overtaking u.s. flows into china. muchad: thank you very indeed. right, still ahead, unpacking the latest trade data out of china, hsbc's insights on this. you're watching bloomberg. ♪ rishaad: we are back. this has turned out better than was expected, but can the positive trend continue into next year. let's bring in julia wang. we are waiting for this trade data. what are you looking for in that data? think that when you look at , fairlyand imports modest contraction. i think we're looking for the pace of contraction to be somewhat smaller, but nonetheless a bad year for exports. step the market thinks about is what this means for the currency, and the fixings came out today. it has been that they cfo's of the market over the past month and has continued to edge up, become weaker. rishaad: today was a stronger fixing, but -- >> yeah, so, it has been stronger than expected for a couple of days. i think they are trying to manage the pace of weakness in the currency, but the broader data that comes out today and , pe

i spent a lot of time covering china and in china. china is extremely sensitive to the most minor shifts in rhetoric, diplomatic signals, policy shifts, et cetera. to have the president-elect tweet out, we know the way donald trump uses twitter, this is expressions of his policy positions, to have a president-elect tweet out two very, i don't know if antagonistic is the right word, but very firm statement, shall we say, on major policy issues between the u.s. and china, economic policy, foreign policy with the south china sea, that signal a substantive shift from a bipartisan decades-long bipartisan approach to china, right, on those issues, but also in terms much tof taiwan that g back to 1979 recognizing beijing as the seat of china as opposed to taiwan. when that happens from the president-elect, that's major. that's substantial. while china's public statements have been very measured, saying well, this is a trade relationship that has benefited both sides, i have heard and i think this is quite credible, that inside china's foreig

-china policy. and his advisers are down playing this as a courtesy call, denying any policy shift before trump has taken office. but unsurprisingly, the white house and state department are worried about the fallout. here's josh earnest. >> it's unclear what the strategic effort is, what the aim of the strategic effort is, and it's unclear what benefit could be experienced by the united states, china, or taiwan. but i'll leave that to them to explain. >> donald trump has promised to strike a hard bargain with china on all aspects of u.s. policy from trade to the economy, to security. and this is a man, wolf, who has written about china as an enemy, about taking away what he called china's advantages. so i think it would be fair to say that donald trump knew the message he would send to china. there's a new sheriff in town. but it doesn't seem to be completely mapped out. >> how is china reacting to all of this? >> reporter: aside from those editorials, they're playing it cool for now. they're criti

you know that china has undespited sovereignry of the south china sea and further there are risks of your close surveillance. and john mccain suggested that chinese may have taken the drone to steal the technology. >> the chinese are able to do a thing called reverse engineering where they are able to -- while they hold this drone, able to find out all of the technical information and some of it is pretty valuable. look, there is no strength on the part of the united states of america, everybody is taking advantage of it and hopefully that will change soon. >> reporter: and this incident is just the latest clash between china and the president-elect trump and another indication that the next administration does not plan to carry on with business as usual. eric. >> garrett, thanks so much. >>> and for more on this now, we'll bring in captain ben collins, u.s. ashly special forces -- army special forces veteran who served three tours of duty in afghanistan. so captain collins, considering the length of time that china has had this drone, how much information on the technical and physic

china's beige book chief economist says currency is where washington has the upper hand. >> china on one hand is leading foreign exchange. a lot of money moving out of china, people worried about it, and they are taking on the united states as the reserve currency country. getting 300 billion dollars a year roughly out of the trade surplus they have with the united states. if the trade war goes that far, which no one should hope for, u.s. cuts that off and china loses and there is no way around it. tohaad: let's get back david. what do you make of all this noise coming out of china the moment. we have been finding out about how much they will be growing next year, at least the target in february, so steady as she goes? what gives? it will be aink steady as she goes policy. we have seen so many repetitions of that commitment to double real gdp that it is hard to avoid doing anything but delivering that and that is what we have seen the last few years. all policy has been aimed at stabilizing growth, not to reignite it again, and that's a difference than what we saw in reaction to the

after china on twitter. is there a diplomatic strategy at play? and victory. protesters and nate of americans celebrating this morning after the army corps of engineers refuses to allow a pipeline through native lands. but the protesters saying they're not leaving, defying the deadline set today. we begin out west where a news conference is scheduled to begin any moment on that horrific warehouse fire in oakland, california. 33 people are confirmed dead. officials say that number could rise. eight of those victims have been identified. no word yet on what sparked the fire but officials have called in a criminal investigation team as they search through the ashes and debris for more victims. >> we have people around the clock and we will be here for days and days to come. >> nbc's steve patterson is live in oakland. what are we expecting to hear from officials that the news conference we're waiting for? >> ali, the first thing that has to be talked about at the press conference is the breaking news, we just g

well, maybe -- >> we protect china? we protect china? trish: may not necessarily be a -- i'm going to leave it there, i'm out of time. we've got more coming up. [laughter] i want to continue talking about this because vice president-elect mike pence is out there blasting the mainstream media for beating up donald trump's phone call with the president of taiwan. talking to a dictator who murders his own people. yet it's time for trump to talk to a democratically-elected leader in taiwan, and that's somehow bad? why the double standard? will the liberal media ever give mr. trump a fair chance? you heard arash's side of things. let's hear the next side next. when a moment spontaneously turns romantic, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take

by a one china policy unless we make a deal with china. having to do with other things, including trade. >> this could be a hint of a change in policy. this may not just be a phone call. those in taiwan are expressing hope while those in china are extremely concerned. >> the chinese officials are putting out signals saying this is serious. we take this seriously. there's some stuff we can do to do guys if you want to push this. >> china is saying one china policy, taiwan is not a different country. they say it is not necessigotia. i don't think it is fair to say it is loose talk anymore when he accepted that call from the leader of taiwan. he thinks they should reassess the united states relationship with china. >> when you have an ongoing relationship with people and you step forward and say the thing we agreed to all this time. unless you give me something. that starts to feel like extortion. >> he is a disrupter. why should we adhere to the policy? >> no one can accuse donald trump of inadequate disruption. we are safe on that one. >> e

♪ >> a big surprise from china. it is much stronger than expected, exports and imports of both being forecast. >> the worst may be over. shares build on the initial gains across the asia-pacific. >> oil hold around $53 as the focus shifts to whether opec can persuade non-opec members to cut. >> this industry is bracing for its worst year in 2015, collateral damage to train the glued -- cut the crude. i am angie lau where it is just past noon. welcome to bloomberg markets middle east. one notable thing today is absolutely with the markets are doing, extending the rally. especially after the china trade data rolled through, we have exports, imports, both up and better than expected, surprised to the outside. on the other side, what is supporting the markets, trump. trillion, that is the number on my mind this morning. that is the market seeing this on this chart. fresh out of our bakery, this really tells the story of donald trump and the u.s. election. you are looking at the combined value. this is a month since the

let me turn to china. china began in an almost christian way. after the emperor, emperor hirohito made his famous radio address to end the war, a few hours later, kai-shek ii made a speech which was broadcast across the nation and he quoted from the bible and so on. and it came down to a statement, and it's better in chinese than in english, of course -- [speaking chinese] let us repay evil with kindness or generosity or anything like that. now, it served his purposes, of course it did. but that became the initial response of china. and it was politically motivated in the sense that that same speech was picked up by general okamura who then decided that working with the nationalist was probably a good option. so it was political as well. but nonetheless, there is that kind of -- and i think jan kai-shek was a christian and i think this was hard for -- this is meant and it is still a version of response to this that has a lot of mileage in taiwan, where it was brought forth recently at a commemoration. at the beginning of the second world war whe

china, flying nuclear capable bombers over the south china sea for the first time in an apparent warning to president-elect trump. this after trump questioned whether the united states should keep its long-standing policy that taiwan is part of one china. we'll get reaction to all of this from a democrat on the house intelligence committee andre carson. and our correspondents, analysts and guests are standing by. first, cnn's ryan noblestower i. what's the latest? >> reporter: it's been a busy day for donald trump here on 5th avenue as a parade of potential administration officials have made their way into trump tower. as the trump transition continues to take shape, the president-elect remains at the center of a fierce debate over the alleged role of russia in an attempt to interfere in the presidential election. tonight, donald trump refusing to accept cia reports that conclude russia attempted to intervene in the presidential election, tweeting can you imagine if we tried to play the russia/cia card? it would be called conspiracy theory. this just hours after telling fox flues t fox n

meanwhile, china is much more assertive and aggressive in the south china sea. they have doubled the number of submarines in the asian pacific that we do. they will soon have nearly three times as many, and no one has pushed back, and i think donald trump -- [ all talking at once ] >> when you think three steps down the road, is this going to help get china on board with north korea or hurt? >> before donald trump's election, there has been a growing chorus on -- in the republican party that we needed to be more aggressive with china, that we need to shift from a policy of appeasement to a policy of counterbalance. >> projecting -- >> that china has not been a good actor on the world stage and it's time for america to be more assertive in its relationship. >> one of the ways america could have been assertive, have approved the trans-pacific partnership which was something that china deeply feared and now doesn't have to worry about because this president said he wouldn't do it. but, alex, if there were a one-off, you could say this was his china policy but calli

china claims sovereignty over the island. trump is the first president or president-elect to speak with a taiwan leader since the u.s. broke off relations in 1979 under president jimmy carter when his administration established formal relations with beijing marking the start of the one china policy. trump's chief of staff pushed back on suggestions the president-elect made a mistake. >> he knew exactly what was happening. we have a lot of problems to solve in this country. we're not going to solve them by just making belief that people don't exist. >> reporter: trump's response came in a tweet. interesting how the u.s. sells taiwan million teary equipment but i should not accept a congratulatory call. u.s. arms sales to taiwan have totaled more than $46 billion since 1990. in december 2015, the united states announced a $1.83 billion arms sales agreement to taiwan the first in four years. the white house was on the defensive today. it has spoken twice to the chinese. >> senior officials of the national security council have b

knows china and likes china, better than like china if you're going to be over there, do we agree? and knows how to deliver results and he will deliver results just like he's been delivering results to 23 years for the great farmers and for the people of iowa. he's been on six straight missions to china and is highly respected by all of the chinese officials. he's also a native of iowa. america's longest serving governor in the history of our country, 23 years. think of that. in the history. you don't know what it is to be a governor for four years is tough. 23 years. and has done an incredible job. he's also become a great friend of mine. i am now honored to welcome to the stage our next ambassador to china, your governor, and i can truly say your great governor, terry branstad. come up, terry. this is a big room. >> wow. president-elect trump. fellow iowans. it has been a great honor and privilege to serve the people of this state and thanks to our great new president who's going to make america great again, i am very proud to serve america in this very important role. thank you

-china relations. if it is compromised or disrupted the sound and steady growth of bilateral relationship as well as bilateral cooperation in major fields would be out of question. this comes as mr. trump told "fox news sunday" he didn't feel bound bit decades-old policy unless a u.s. makes a deal with china having to do with other things, including trade. >> we're being hurt very badly by china with devaluation, with taxing us heavy at the borders when we don't tax them. with building a massive fortress in the middle of the south china sea which they shouldn't be doing, and frankly with not helping us at all with north korea. sandra: the one-china policy permits beijing to regard taiwan as part of its country while allowing the u.s. to sell the island weapons to defend itself. lou dobbs, your thoughts on this, sir? >> i think it is absolutely terrific before taking oath of office this president is conducting national security policy. that he is carrying out the job of president. he has intervened what

china, china, china! >> trevor: chyyyna! ( laughter ) quick question, how are you going to fight a country when you can't even pronounce their name? chyyyna. chyyyna. sounds like a toddler who just learned the name of her private parts. chyyyna! chyyyna! chyyyna! that's where my ties come from! ( talking like a baby ) and, by the way, why do donald trump's suits fit so poorly? i don't understand why they fit like this. they're made for you and by you! why would they fit so badly? i wouldn't be so shocked his suits fit like that because he exaggerates his measurements to his tailors. no, my arm's this long! ( laughter ) since the '80s, trump has been itching to pick a fight with chyyyna. even though it's 44 days till he officially takes office he's already started (bleep). >> in an unprecedented move mr. trump took a call from taiwan's president, breaking tradition. >> calling it a blunder. >> phone call touched you have a weekend diplomatic fire storm with china and broke decades of presidential protocol. >> trevor: yep, onc

china hopes that japan and russia will properly settle their territorial issue through dialogue. >> china's state run xinhua news agency said in a commentary that to keep china in check, prime minister abe is trying to form close ties with russia by making progress with the decades-long territorial issue. another state run media outlet, china central television, provided detailed daily coverage of putin's visit to japan. president putin also touched on the war in syria after the summit. he said he would work for a nationwide cease-fire in the war ravaged nation, even as some groups accuse russia of war crimes in the city of aleppo. >> translator: i agreed with turkey's president erdogan to offer a new round of peace talks to the rebels. we will represent the syrian government and turkey will represent the insurgents. >> putin says the talks could take place in kazakhstan and would complement u.n. brokered negotiations that have been held intermittently in switzerland. his comments followed a day of evacuations from aleppo. convoys of civilians and opposition fighters began rolling out on th

has to be bound by that one china policy. >> i fully understand the one china policy, but i don't know why we have to be bound by one china policy, unless we make a deal with china, having to do with other things, including trade. i mean, look, we're being hurt badly by china with devaluation, with taxing us heavy at the borders when we don't tax them. with building a massive fortress in the middle of the south china sea, which they shouldn't be doing. and, frankly, with not helping us at all with north korea. you have north korea. you have nuclear weapons. china could solve that problem. they're not helping this at all. so i don't want china dictating to me. this was a call put in to me. i didn't make the call. it was a call, very short call, saying congratulations, sir, on the victory. it was a very nice call. >> joining me now to discuss this is a member of the presidential transition team. anthony, is the president-elect serious about ending the one china policy, or is this, as we've seen before with trudonal tru trump, a bargaining chip in a much bigger move? >> listen, everything

has leverage with china rht now, you know, china desperately needs the u.s. economy to keep its growth rates up and its middle class growing and trump is going to use that leverage. >> and mike, josh earnest didn't spell out, i don't think he could spell out the progress that supposedly we've made with china but trump spelled out in another tweet some of the problems we have had with china, he says did china ask us if it was okay to devalue their currency making it hard for our companies to compete, heavily tax our products going into their country, the u.s. doesn't tax them or to build a massive military complex in the middle of the south china sea? i don't think so. >> well, i think what china probably was most upset about was donald trump's indiscretion, but as china and the rest of the world are learning is that the president elect speaks his mind. how refreshing is that, david? someone that tells the truth. and the people that are concerned about his behavior, they are the same people who said that when he ran he would never get the republican nomination

the one-china policy is the cornerstone of a healthy u.s./china relationship. i hope the political foundation won't be disrupted or damaged." yes, china seems to be giving the trump team the benefit of the doubt by placing blame on taiwan for this sharp breach of diplomatic practice. for good reason probably. the chinese are, like many others, trying to decipher the true meaning of the phone call. was it just a blunder because of the trump team's inexperience in foreign policy, or was it more significant? does it signal a major policy shift by the incoming white house? interestingly, george, xi jinping, the chinese president, met with henry kissinger friday. the former secretary of state was instrumental in establishing ties between beijing and washington in the 1970s. and he told mr. kissinger it is critical to understand each other's strategic intentions. now mr. shi must be wondering what mr. trump's intentions are and if mr. trump is somebody china can work with in the next four years. george? >> that is the burning question here, what were his intentions.

but taiwan has significance to china. it's possible the president-elect is using this and a bargaining chip. charles: we know our greatest rival in the world in my minds is china. and they have been belligerent with barack obama building the south china sea, the islands there, thumbing their nose at international law. hazing our ships and air crafted. it feels like we have a very aggressive would-be foe that needs to be slowed down in some respects. >> the pattern of the obama administration states was with the bush and obama administrations, we were thinking all we cared about was trade, and number two that of course was going well. one day china would start acting like the rest of us. they would start paying attention to the rules and norms. the fact is they have gotten strong and more when lidg d ande belligerent. he's going to link this to trade policies. charles: america talks to taiwan. we fly a long-range bomb. what could happen to escalate this further? >> some of it depends on what president-elect trump does. if

doing business, yes, china. she sells shoes and handbags made in china. and even in the last three months, the final leg of the campaign, the ivanka trump brand was receiving shipment after shipment of merchandise, more than 60 in all, according to records analyzed by cnn. >> we owe them, they took everything, $1.4 trillion. how do you do that? >> reporter: trade talk on the campaign trail intrigued robert lawrence, a professor of international trade and investment at harvard. his interest piqued when early on, donald trump found out nabisco was moving its oreo cookie bakery to mexico. >> they're leaving chicago. which means i'm never going to eat another oreo again. i'm serious! never! >> professor lawrence asked one of his assistants to find out where the trump family makes things. and settled on ivanka trump's extensive line of handbags, shoes, clothing, and accessories. hundreds of products made in china and many other nations. >> i think we found something on the order of 600 or 700 products and about half

and china. given that the two countries operated under so call one-china policy since the nixon era. that taiwan is still unfortunately a part of -- a part of china, president obama admonishing trump, saying before accepting courtesy calls he should have his whole team in place and briefed. >> idea of one-china is at the heart of their conception as a nation. and so if you are going up end this understanding you have to have thought through what are the consequences, chinese will not treat that the way they will treat some other issues, they won't even treat it the way they treat issues around south china sea, where we've had a lot of tensions. reporter: u.s. has launched a protest with the chinese, and demanded that it return that drone. >> thank you peter barnes. stay warm. adam: joining me now. former air force vice chief of staff, thomas mcnerney. this taking of a u.s. drone. is this a sign of aggression? should it concern us? it seems to be an infraction of international protocol. >> it is,

did not support china one's policy. saying that taiwan is part of china. they don't actively support it, but they acknowledge the presence of that policy being in place. i think that trump is trying to send a signal to china saying i know you want to exert your power and influence and dominance in asia, but we have to be in discussion and talking and not only just back away from not being able to just reach out to the taiwanese government. >> how did he respond to "guess what, there is a new sheriff in town, friends?" i think stability and predictability are the name of the game. you want your allies to know where you stand if. >> we know where he stands on stability and predict ability. >>> jill stein is taking her push for a recount in pennsylvania to a federal court in is in an effort to retally votes. signs said voters need to know whether or not the election was compromise. rick, tell us the rest of the story. >> melissa, this morning the news conference was also billed as a rally. authorities have scheduled a recount in michigan starting at moon toda

cpi year on year from china. and the correction we have, 3.3% for the year on year, as opposed to the number expected of 2.3%. at the moment, 1.5% moved to the outside was month on month, not year on year. so that is what we have currently going on. the ecb sent shock waves through europe and bond markets, more hawkish and dovish than expected -- expected. they will buy fewer bonds per month. does that work or not? >> that is the question of the day. especially if you're a global bond trader. cutecb announced it won't its monthly bond purchases to 60 billion euros a month from 80 billion euros. you could call that a tapering, right? that was not expected it, so that hit the market hard. but notwn the road, now. the extended its bond purchases six months past the march 2017 and date. nine months, now they are to the end of next year. that is more because they said they would be done at the end of the third quarter. we would get a six-month extension. means 540 billion euros more purchased than it would have been o

taiwan is a core interest of china's. taiwan since the end of the civil war in 1949, both maintained there was only one china and that taiwan was part of it and china claimed this is a core interest, meaning they're willing to fight if taiwan makes moves towards independence. so our policy, our non-provocation of beijing along these lines has been essential to stability across the taiwan straits that has benefitted the people of taiwan. >> you know better than anyone how this threatens to have an impact on the world, the global economy in addition to these two big economies that we face, ours and china. with that said, military provocations, a number of analysts who noted yesterday with something like this that could potentially escalate, would the united states be prepared to use its military if this goes beyond where it is now which is a form of complaint and is it always a possibility? >> it's a possibility but a great many steps away. it's somewhat encouraging that beijing has chosen to take a low key response to this

and it risks infuriating china with one china policy which claims that taiwan is part of china. trump tweeted after. interesting how the u.s. sells taiwan billions of dollars on military equipment but i should not accept a congratulatory call. china released this statement, we urge the revolution side of the u.s. to adhere to the one china policy abide by the pledges in the three joint china-u.s. communiques and handle issues related to taiwan carefully and properly. >>> democrats are asking president obama to declassify intelligence after new information specifically to help donald trump win. cnn's jim sciutto has details now. >> christi, we are learning there's new information that russia's election-related hacking is believed to have been intended to help spear the election to donald trump. democrats now want president obama to make this information public. >> reporter: democratic senators are pressing the obama administration to more forthrightly state that russia's meddling in the u.s. election was intended to help donald trump. multiple sources tell cnn. the democratic pre

us exports to china are valued at $162 billion. the country is america's third largest export market but imports from china into america are far higher, standing at 498 billion dollars. and this, according to president elect trump, is the problem. a trade deficit with china totalling $336 billion. mr trump says closing that gap would create a lot ofjobs in america. at, although people may blame outside forces, economists argue that the jobs market has changed and that cheap goods from china have been good for ha rd—pressed cheap goods from china have been good for hard—pressed us consumers. china, it may be just a good for hard—pressed us consumers. china, it may bejust a, eno, we challenge them on some policies and they may announce retaliations, they may not, but it looks like quite a bit of friction with china in the months ahead. china's response, as ever, cautious. at caution with an edge. china does not appreciate being called an economic bully. translation: china and the united states as two large countries have shared

china is extremely sensitive about the one china policy. anyaad: trying to brand country as a currency amid later, moving beyond that, if we look beyond the rhetoric, what about any real impact? >> i'm not sure about real impact. trump is walking a very dangerous line. at some point in time, you want a certainut beyond point, you don't want to take a certain chance. on the other hand, if you look at the evidence over the past hass, the taiwan dollar risen against the greenback, but the chinese currency has dropped almost 6%. that is a huge almost devaluation, depreciation in any. of time. -- in any period of time. i'm sure he has his reasons. the real impact is he good push things beyond a certain point where it could affect the entire asian economy. a good have a knock on effect and currency stocks and all of that. sophie: leading into perspective here, china is a behemoth. taiwan, but we are seeing with the u.s. relationship in this region, what else can we anticipate here? take a look at the economics of taiwan. >> they have been plannin

we trump: i do not see why need to be bound by the one-china policy unless we make a deal with china. they are taxing us heavy at the borders when we do not text them. -- we are mess of building massive fortress in the middle of the south china sea. >> trump already angered china when he took a congratulatory call from taiwan's president. he is the first u.s. leader to officially talk to at taiwanese leader in four decades. genie: the champions league is coming up in february. we have found out who will be playing whom in the final 16. the big games to watch our monaco versus massachusetts city. and for the other fans out there, pfg versus arsenal on a. it is december. christmas is coming to while santa claus may be almost sameness -- most famous for flying through the skies with addedindeer, he has diving to his skill set. underwater santa is a biologist at the guadalajara zoo in mexico. he wanted to give them and their visitors a different take on yuletide fun. he will do that throughout the rest of december. time now for a business news. we want to show you who has been in the fish

i don't know why we have to be bound by a one-china policy unless we make a deal with china having to do with other things, including trade. i mean, look, we're being hurt very bad ly by china with devaluation, with taxing us at the borders when we don't tax them, with building a massive fortress in the middle of the south china sea, which they shouldn't be doing. frankly, they're not helping us at all with north korea. you have north korea, nuclear weapons, and china could solve that problem. they're not helping us at all. i don't want china dictating to me. this was a call put into me. i didn't make the call. it was a call, very short call, saying congratulations, sir, on the victory. it was a very nice call. short. and why should some other nation be able to say, i can't take a call? i think it would have been very disrespectful, to be honest with you, not taking it. >> you recently intervened with carrier to save about a thousand jobs from moving to mexico. you've said at one of your rallies you're asking for a list of ten companies that are thinking about calling them as well. sh

and china last year. more of that is imports than exports, true, but americans are consumers as well as producers. if we begin to block off access to our markets, they block off access to their markets even more, that is not good for americans. does russia due to chinese relations? russia is complicated. the last few years have been dominated by talk of russia and china working together against the united states. it is a murky game. i am not sure how that will play out. after the election, almost all emerging markets went the -- immediately after election, almost all emerging markets went down, because there was expectation of fiscal stimulus, and fed tightening, that would pool dollars back into the u.s. the exception was russia. markets because the where more accommodating with even the lifting of sanctions. vonnie: if you look at the bloomberg at the primary winners, there is another russian index in the top 10. you are just back a few months ago from some baltic states. what did you make of the reacti