i went to china for the first time i had a certain picture of china which was not really matching reality but then it depends on i do willing to change the picture or do you stick with what you think how is it changed ten years on for you well. i was thinking the chinese a missed me mysterious people you know you can't really trust them and you never know what they think i thought that the country was much not backwards then it turned out to be. the fact is that the chinese have have still have been still today have kind of an innocence and openness once they trust you they embrace you and they really become friends with you and you can criticize a lot you know you can also with chinese politicians we talk a lot of. things in china that are not as they should be. you can be very open act it has to come out of a positive spirit. and not just looking for the negative spots what you talk about innocence where does that come from your thread in this it had anything to do with the fact that china's been communist for so long. no i think it has to do with a structure of having the community fir

china. i don't blame them nearly for all of that. but when a factory closes we know what it does to a community whether it's in harrisburg, whether it's in eerie cleveland, akron or canton -plt i'm encouraged by my colleagues on both sides of the aisle who support this bill and see how china's protectionist trade policies cost america jobs. we all know the problem. for years china subsidized exports by adopting artificial manipulated exchange rates not based on market forces. as a result, china's export to the united states remain cheap. our exports to china remain more expensive. in other words because they cheat on their currency, a product made in wuhan and sold in lima or dayton, ohio, will be cheaper because they have subsidized their production by weakening their currency. at the same time if a company in lima or dayton, ohio, tries to sell into china the cost of that item is 25% more because china has gamed the currency system. so by keeping the value of the r.m.b. or yuan, by keeping

is more and more assertive in the south china sea do you think china is a. country that actually could envisage a conflict now. but it wouldn't i mean it's too smart to you can't win wars anymore so why would china really start a war which would be destructive for china itself so while there's a lot of posturing on the political side economically you know it's it's much too much integrated to really start a war on either side so you know there's posturing there's a lot of. posturing because of internal reasons to show strength to its people but but you know we don't we don't think this is what i think china strategies for russia they've been very good friends and they've been not so good friends i think they are seeking an alliance they are seeking trade but now they are very close neighbor us so i think china in general wants to optimize relationships whether it's russia or america or europe doris nice pick thank you very much for this interview. i am nature and discover its buzy many. legs a communicate with the wild. test yourself and become three. zero a

do you welcome china's china's intention to bail out the e.u. problems problem economies. i think the chinese are talking about help in some of the e.u. basket case economies like greece and portugal but how far they're willing to go and on what terms i think the chinese are very shrewd bargain when it comes to that and it remains to be seen how far that will go what about africa do you think the africans will well come china replacing the anglo saxons as the patrons of the continent up until now it's been mixed but the chinese have done one thing that's extremely clever in terms of their african diplomacy since about two thousand and four two thousand and six and that is they've come in they've ignored the international monetary fund they've come in with soft loans they've built schools hospitals highways dams and so forth across africa and they said our interest is quite simple we want long term secure raw materials oil gas minerals and the africans are quite happy to have that kind of arrangement the american approach was similar to the british kind of colonial looting

the toilet hungry and china and their oil hungry the u.s. has taken a very militarized approach to it of tending oil sitting on oil china needs that oil is there are we headed toward a conflict there number one and number two is china's alternative energy approach as you as you are talking about here with the wind and solar is that going to be able to leapfrog them you know beyond hydrocarbon steven lee well yeah i think it already is i mean solar right now is in many cases competitive with hydrocarbon and so is wind. and china is the one that can produce the lowest cost when the lowest cost solar is so yeah i think that they are would be broadening to some extent you know there's a lot of work to be done that's why they're spending you know trillions literally trillions of. dollars you know developing smart grids etc as far as the oriel the u.s. may be sitting on right now that's not conventional oil that's non conventional oil and it really is not clear that we're going to be able to get significant significant i mean twenty or thirty mill

and china and how that would... china would be hurt more than the u.s. i don't think that's the case, either. because you can't simply look at it as a simple two-sided equation. these economies are intertwined as they are with the rest of asia. and if you start slapping large tariffs on chinese influence, it will reverberate around the global in ways that you can't possibly imagine. >> liu: and yet we find ourselves, though, in this situation where we have a jobless rate near 9% here in the u.s. and that has americans riled up. they want to kw why the jobs moving overseas. so is there something that the white house and the president could have done to avoid a situation like this where we are at a critical point wherehe house may pass a bill like this, neurosglel >> well, you point out correctly. the unemployment rate is 9% encouraged partially employed workers, 16.5%. including people in jail 20%. among young and minorities closer to 30%. a very little faction of this problem has to do with china and the exchange rate. have to do with the policies that h

countries china is canceling a u. one ruble trading fees as it becomes russia's top trading partner. russia looks likely to post a budget surplus this year high crude prices are balancing the state spending which as risen in an election year the relatively healthy outlook is likely to continue in twenty twelve unless the oil price crashes as they are slightly somebody from explains. even with a significant increase in first call spending ahead of the elections at the end of this year there is a very high chance that russia will have a moderate but still a fiscal surplus by the end of this year in terms of the year two thousand and twelve the possibility to attain a surplus is also there obviously oil prices will have a lot to do with that but my sense is that given that we're going to be and the post electoral fiscal landscape after the elections is going to be easier to control fiscal spending and that i think bodes well for the team and relatively good fiscal outcomes possible even in the positive zone with regard t

overcome differences i've also applies china has agreed on a new pipeline from russia there is still however the issue of gas with no news yet of a resolution. crisis. meeting. this is prime minister vladimir putin's first visit since announcing his cabinet see in the upcoming presidential elections and this i'm a signal a change in focus for russia for many years the west has been dominated in that political stage for russia china's economic progress may have moved in the sense many analysts are saying that the strategic partnership between the two biggest and fastest growing economies could shift the power balance in the world now both nations have supported each other throughout the years on issues related to sovereignty security and development they also have similar political views and we've seen this just recently when both of them a veto the european draft the u.n. security resolution which was condemning syria and was suggesting that it could face sanctions if it continue this crackdown on protesters both the countries are also members of the brics alliance along with india b

china doesn't care. they will only care if there are sanctions, tough sanctions that give consequences to their unfair and usually illegal by w.t.o. standards action. now, mr. president, i'd like to talk about speaker boehner's remarks and chairman bernanke's remarks. last night brought a milestone here in the senate, mr. president. for years the government of china has been willfully breaking the rules of free trade without provoking a formal response from the u.s. government until yesterday. the full senate for the first time went on record that it wanted to consider formal action to confront china's currency manipulation. it was a lopsided vote, bipartisan, majority of both parties, 79 senators in favor. we'll spend the next few days debating the particulars, but make no mistake about it. when it comes to china's unfair trade practices, there is a consensus to act in the senate. mr. president, it can be hard at times around here to get 79 votes to turn the lights on. when the majority leader and minor

it's trade reform with china. and the most important reform has to be ending this currency manipulation china engages in. and it's not just the united states that gets hurt by currency by china, that's 40 to 50% undervalued. it's the rest of the world. europe would not be flat on its back right now if it hasn't endured two years of a falling dollar, a falling yuan and a rising euro. canada gets hurt, other countries around the world, and the rest of asiaas to manipulate their currency just to keep up with the chinese. this is the time, dylan, and i hope that people step up in the senate and in the house. >> the big bogeyman on this, as always, hold on, there, mr. yippie-ki-yay. if you do that, the chinese finance america and they're going to come over here and we're all going to be speaking chinese, if you mess with them. hang on, peter, i'm going to the professor here. how do you reconcile that? >> our problem is not that there's too few people, it's that there are too many people. we are a flood in world liquidi

ago before i went to china for the first time i had a certain picture of china which was not really matching reality i thought that the country was much more backwards than it turned out to be. the fact is that the chinese health held still have and still today have kind of an in a sense openness an. once they trust you they embrace you and they really become friends with you and you can criticize a lot you know you can also with chinese politicians we talk a lot about things in china that are not as they should be you can be very open but it has to come out of a positive spirit. and not of just looking for the negative spots well you're talking about innocence where does that come from in your opinion does it have anything to do with the fact that china's been communist for so long. and no no i think it has to do with with the structure of having the community first and then the individual that meant you will always part of something you were part of a family a part of a community part of the city part of a province and the country and helping each other being together was part of

pure and simple, say it straight, because china cheats, china has been able to -- because china cheats, they have given, for all intents and purposes, 20%, 35% subsidy to their product. because they cheat on currency, putting aside how they subsidize their paper industry, for instance, with water and capital and energy and land, just on currency alone, when they sell something into the united states, they have a 25% to 30% cost advantage. i know companies i have talked to in ohio and mansfield and springfield and zanesville and chilicothe, companies that will say my cost of raw materials is higher than the cost of the product when it comes from china. why? because china cheats. and one of the ways they cheat is they undervalue their currency so that they have a 25% discount on their products sold into the united states. we can't compete with that, no matter that our workers are efficient, no matter that our companies are efficient, no matter that we cut costs in so many ways with the more advanced technologies and advanced manufacturing we do. so, mr. president, that's why this was suc

in china you can see.

china feels in the powerful position. europe needs capital for the government and to return to growth. china has plenty of money. >> cna and the and the powerful position. i spoke to the former beijing bureau chief for the financial times and the author of the party. joining me now is the former beijing bureau chief for the financial times and author of the party. thank you so much for coming. what is it that china is going to want in return for helping iraq out? -- europe out? >> there are lots of things that they would like. they would like to be recognized by europe as a market economy. they might like a bigger voice in the imf, they might like a bit of political lines. stop criticizing the human rights, economic policies. the can't ask for a blatant trade-off, but i can't imagine something not in return. i don't think they can be too crass about it although they can be very crass at times in their public demands, but europe is also important to china, the biggest trading partner along with japan and the united states.

china has a choice. it can maintain its intervention in the currency markets or speed up a reform toward a market currency. if it does the first, china will continue to accumulate foreign exchange reserves, buying more treasuries and bonds, but in doing so, it will become an even bigger funder of the structural deficits in the europe and the united states. so, instead it should pursue a market determined remedy and an accelerated timetable for capital didn't liberalization and that would give beijing the economic tools it needs in a large and increasingly complex economy. i know convertibility and capital account reforms and an open -- and a more open financial system aren't popular in china. many in beijing believe these reforms will make china more, not less vulnerable to future crisis, but china can play defense or it can play offense, or if you prefer, china can continue its single-mined focus on it five year plan, slowly unrolling reforms, when it needs reforms today that into give beijing the tools

you know the china when they have. people who stand for and then wear their own mozart which let's say and i'm not very good on the pop bands but you know what i mean they they have to create that the chinese plan the cultural leadership that still is in the hand of the u.s. in many ways but right now china owns about one third of the u.s. for in depth and the dollar is at a very vulnerable situation i mean people are even talking they could devalue in the future. what is the smartest way out of this impasse for china i think you know economists are correlated or are having different opinions so i really would not claim that i have the answer to that so when the u.s. will hit rock bottom it will also have found a solid ground and then rise because it's not the capacity of the u.s. it's gone a capacity is still there and the chinese are very smart to get to the situation and invest with let's say we can involve that were not so i think they they're going to work it out and they're smart enough to do so also one more que