cross talk china is number one i'm joined by you and alan in orlando he is director of the china center at roland's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua littman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-legged means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy has already surpassed the american one how do you look at it. well yes as you are saying that the most optimistic viewpoint of their time is economy may already be twenty of us and largest in the united states one so we aren't entirely sure where it is but certainly from our point of view the perspective of anyone from the united states and europe is generally a that still china is letting far behind and we think that's clearly not

estimate china's polar developments capability actually china has one up there was most advanced color research and development capabilities china has been investing a shooter amount of money and for a long time into this whole about among the courses i think china is actually said are very far away targets there no doubt this area is a very strategically important area and there are. a number of threats inside china very good. future development in the region. we cannot underestimate that's all right brian if you can how much do you think in china hope to achieve what if arctic ambitions. i think first of china will use always diplomatic skills to try to gain more support from from the not a country which are more friendly towards trial in this region are not a problem are another uses or china were also us is an army our each should gain the support current city but worst is you know crisis specially if for example i sir and i think china will owe you are you small fees or wells to do to gain their support in the region. right now after a gang can thanks very much indeed had to resea

and we way out china. the country keeps knocking on the doors of the nations who already have access to the energy rich region. a very warm welcome to you from all of us here at the moscow. the rules of formula one engines will be heard in the gulf states still shaking under civil unrest regime activists have pledged to boycott the event and step up their protests to members of the force india team have already fled the state but this after they were caught up in clashes on their way back from the track but if. reports are like libya and syria if this uprising is surprisingly alfredo. it took a car fire ahead of a major sporting event for the world to notice the flames of discord engulfing a small island nation in the persian gulf but green is suffocating in the smoke of an ongoing struggle between protesters and police the military says have been happening in a hurry for more than a year now protester say this is the longest lasting revolt in the arab spring but so far the only result from them has been a

and must work with china. so even though there is a lot of tension and competition, in the end i think it is in the theater's interest, the leaders of both countries recognize that it is in their interest to contain the pressures for competition particularly for distressed. think the most critical single problem we now refer to as his term strategic distress. it is we are not sure of chinese military intentions and they are not sure about american. we hear the chinese leaders say they want a peaceful rise, but then in the south china sea, there's many patrol boats that are coming in conflict with the patrol boats from other countries. so i think it is going to take up a lot of determination on the part of a lot of theaters and much more open discussion of military goals and much more transparency in military preparedness on both sides in order to achieve the kind of cooperation and peaceful future that we all want. >> china faces a lot of challenges today, not just internationally. many of them challenges crea

we were not one to people would other countries to come the expression a strong china china is now china's maybe it's not really in a big enough to petro ocean as of now but. that will start china's premier in trying to exercise some diplomatic reach even to the arctic ocean because china great now is the second largest economy and he has a stake in just about every economic issue will for europe wallow in recession and china growing at least eight percent a year. and china outpace europe ecological is soon or later maybe sooner and i think the global community. in accepting the emergence of china as an economic superpower and we accept work with china rather than opposed to china. israel says it's not playing games with threats to attack iran the country's defense minister insists it's not just belligerent rhetoric to bully tehran into abandoning its nuclear program but israel's apparent failure to sense for accounting may suggest otherwise as pulse clear explains. the rule very family lives the missile range of gaza for years they complained to the government they had no shelter to prote

rather than our coast of china. israel says it's not playing games with its threats to attack iran the country's defense minister insists it's not just belligerent rhetoric to bully tehran into abandoning its nuclear program but israel's apparent failure to repair its citizens for retaliation may suggest other writes its policy or explains. the rule very family lives in missile range of gaza for years they complained to the government they had no shelter to protect them from because some rockets fired by hamas but disappointed in the group town wasn't a top priority for tel aviv far from it prompting yakov to eventually build a shelter himself to protect his family so we went through some very tough years we used to worry all the time every time we left the house we were in danger when we went to the store to school or to work it took a direct hit on our course house five years ago before the government finally woke up and bought him a shelter opposite the one he really built himself now across his halls close to ci

decoding china data. is growth north of 8% really cause for concern or should we be scooping up energy and material shares right now? we're breaking it all down with a top china expert. and selling the bank earnings. wells and jpmorgan fail to wow investors. we're looking ahead to the big reports next week from bank of america, goldman, and of course, citigroup. welcome to "the fast money halftime report." lots to trade today. let's start doing it. pete najarian, obviously, it's a down week for stocks, major averages off more than 1% or so. it's been a turbulent week at that. and even apple's down. >> right. >> maybe we're seeing some cracks in apple at this point. what are you seeing? >> i don't know that we're seeing necessarily some cracks. i just think we're in this pause stage that we've seen before in apple when we were down near the $400 level. we did get a few pullbacks underneath $400 on a couple occasions only to completely explode to the up side. so i'm not sure yet that we're seeing any cracks

ready to be second best to china and as china becomes number one pullet demanded a change of the rules that have benefited the west for decades even centuries. the change in the sand. across china is number one i'm joined by even alone in orlando he is director of the china center at roland's college and author of chinese international investments in hong kong we go to martin henniker he is an associate director at the tight group and in chicago we have joshua lipman he's an associate with the boston consulting group and has done prior research on the chinese currency i gentlemen this is cross-eyed it means you can jump in anytime you want martin if i go to you in hong kong first the international monetary fund says that china will equal the u.s. economy in two thousand and sixteen but others are even saying that the chinese economy is already surpassed the american one how do you look at it. yes so you're saying that the most optimistic viewpoint is there are bad the chinese economy may already be traders and lies and the united states won so the i'm entirely sure where it is but cert

let's talk china for a moment. china has become, in your lifetime, arguably now one of the great super powers of the world. and they may economically in the next 10 or 15 years become the number one super power in the world. what do you think of modern china and how it's changed in the time that you've been dalai lama? >> china, most populated nation. and also long history. i think really, china, chinese, i think they have a really long history of civilization, rich culture. and the richness of their food. however, in modern china, a lot of ups and downs. but i have full faith chinese people, they are hard work ing ing. so i think the last six years, i think they already tested sort of the difference of experience. i think they, modern china, they got sort of the experience in the revolution. it seems they opened their eyes. so things are changing. somehow life-long communists, so they very much keep the political power. now, that also is now changing. now prime minister quite often, i think he's meeting with cnn,

china was riding shotgun! u.s., we were in the backseat, hobbled by divided congress, dysfunctional washington. how dysfunctional? at a time when it looked like the economy might finally be able to grow on its own accord, the president and congress couldn't agree to extend the debt ceiling. we were almost the first nation in history to default on its obligations by choice, not because we couldn't pay. worst, as the fall went on and morphed into winner, our european driver lost the car, while the shotgun-riding chinese was busy shooting itself in its 2 billion feet -- 2 billion people, 2 billion feet, an arithmetic issue there. at the time, what were we doing? well, we were asleep, doing nothing. periodically waking up and asking our parents in front, are we there yet? we should be given some dvds or some ipads to keep ourselves busy. but a funny thing happened when 2012 began. we changed drivers! as our domestic data got storied, the united states has been able to seize control of the wheel. europeans, they've

in china, then that would be an enormous opportunity for the company. >> tom: china is now responsible for a fifth of apple's iphone sales and the so-called "halo effect"-- when iphone customers also buy apple computers-- is in full-effect in china. mac sales were up more than 60% in china. like apple, tonight's "street critique" guest sees opportunity in china. asset manager jim oberweis joins us in just a moment with a chinese mobile internet stock pick. we know the investment world is in love with apple. after all, it's hard not to notice a stock that doubles in less than two years. still, small investors do not feel as kindly towards the rest of the market. suzanne pratt tonight on the concerns of smaller investors. >> reporter: this has been a good year for financial markets. stocks are up, bonds are holding up and volatility has been limited. so how are retail investors navigating 2012? t.d. ameritrade's c.e.o. says they're still very cautious about investing their money. >> they have a memory of last year at this time when the market went up, and then things came unglued in the

china prides itself on continuity. at the seat of beijing's politburo, many in china thing bo xilai threatened the system that values stability above all. >> the american vice-president joe biden was asked to sum up barack obama's residency. osama bin laden is dead. another terrorist is still alive. it was good money after bad for many. for many it represents a level of federal interference. are economics editors have been -- our economics editors have been to the seat of the story. >> detroit, michigan. the american auto industry was born here, and when the financial crisis hit, and nearly died here. with general motors and chrysler and the government bailout of $80 billion. and it worked. the industry is back. on the worst day for the american economy since 1929, the recovery of the most iconic industry. how that happened it tells us a lot about how america will recover and how the rest of the world might, too. in 2009, brad thought his career at gm was over. he was laid off with thousands of others and production st

gas to china -- u.s.- china relations. we at least need to use the same vocabulary. as of right now, what we call in cyber attack and what they call a cyber attack is not the same thing. it is like the early days of the nuclear negotiations where we spent a good amount of time with the soviets to figure but a vocabulary. we are literally at that stage. it is very pernicious. >> one thing i think people would find confusing is that we have just had this enormously high profile visit from the new leader of china, who will be the new leader. was that just smoke and mirrors? >> no, no, not at all. the chinese recognize the importance of the relationship with the united states, and they want that. he came here, the chinese vice president to will become the next chinese leader, he started off saying, "my visit follows the visit of hu jintao in january of last year, where he and president obama said we must work for a constructive partnership, and i am here to further that goal," but when he gave a list of difficulties in u.s.-china relations, his number one item was distru

and rest of the china. i think -- i always expressing 1.2 billion chinese people have every right to know the reality. once people know the reality, 1.3 billion chinese people also have the ability to judge what is right, what is wrong. therefore, the censorship is immoral. chinese people should know the reality. so censorship is really -- very, very sort of -- >> if the censorship goes and the reality comes out, there is more chance of a deal? >> certainly. 100%. >>> let's take a short break. i'm going to come back and talk to you about america. i want you to tell the american people what you think of modern america and how to keep america great because you've seen america for six decades, seven decades now. i'm interested in your view. >> america. >> after this break. [ male announcer ] nature valley sweet & salty nut bars. ♪ [ camera clicks ] ♪ it's hard to resist the craveable nature of a nature valley sweet & salty nut bar. >>> i'm back again with the dalai lama. your holiness, talk to me about ame

are pulling out the money from china because they think china's economy is so big, they maybe do not need our money, and maybe the local donors or companies can take their own responsibility for their own social problems. >> reporter: before she started working for this ngo, gao used to work for medical equipment company. her current salary is less than half what she earned before. she's now studying psychology at an open graud school. she wants to do more to help children. but she can only continue in this job while her parents are supporting her financially. >> translator: helping people is very meaningful, but if i get married and have a child of my own, i don't think i can continue. >> reporter: there's growing concern that lack of funds will make it hard for the grassroots ngos to hire the talented staff they need to achieve their goal. improving the situation for the most vulnerable members of society. >> why are the grassroots ngos so dependent on funds from abroad? why can't they raise funds within china? >> well, government registered ngos have a monopoly. more than 90% of d

aside so it would take a long time for china to become a member but china has interests in maintaining the internet internationalization of the arctic ocean and also right of passage for for for chinese ships. because of global warming and i think the northwest passage is possible. china has not won one to pay canada or the us for the use of two right so i guess we're trying to. be fair game for every ad by the and if you don't have it it doesn't harm to fly for indeed china is a growing economic superpower doing deals there obviously very lucrative but some european worried about losing more influence to china. well. the. four go include conclusion we are for europe recession and china growing least eight percent a year. china oh pace europe economically soon or later maybe sooner. global community. except. for china's economic superpower and. with china rugged and opposed to china right francis long managing director of investment firm mycenaean holdings live with us on the line from hong kong thanks for your analysis. south sudan's president says that sudan has declared war on his s

what it tells us when china is slowing down is that china continues to have the structural problem that is killing our own economy. that structural problem is that it's heavily export dependent. in order for china to grow it basically over the last ten years has flooded the united states and europe with illegally subsidized exports. >> when you say illegally subsidized exports, what do you mean? >> run them down. china manipulates its currency which acts as a tariff on our exports. >> keaches it lower than it should. >> right. >> doesn't let it float freely. >> stops cheap at walmart. they engage in illegal export subsidies. when they send something here, they give the producer an extra amount of money. so if a company in akron, ohio, is trying to compete with something in chungdu they can't do that. so we lose jobs there. they steal our intellectual property, which lowers their cost. a pharmaceutical or automotive firm here can't compete fairly. >> you're conveniently missing one point. >> sure. >> and that is that there is one other beneficiary to everything else that china is doing.

china is developing an aircraft carrier. china is developing nuclear submarines. so the overall chinese military development is a source of tremendous concern to india. the relations between india and china, political, diplomatic, economic, has improved over the last eight or ten years. trade is booming. it's about $50 billion or $60 billion. there's a lot of political and diplomat exchange. at the same time, there is an underlying tension between india and china because of the outstanding border dispute. india and china have a border dispute which is one of the longest running disputes in the world. india is very concerned about pakistan and china's close military and nuclear relationship. because both are old friends and there is a lot of military and nuclear cooperation between the two sides. so the increasing concern of indian security planners is a two-front collaboration between pakistan and china. >> that was rahul redi in new delhi. >>> india's launch triggered reaction from china's foreign ministry. a spokesperson is urging friendship and cooperation in a

that is self ex plan torre. >> china claims the south china sea and islands as its own. the neighbors beg to differ. chinese and philippine ships have been involved at a stand-off of a small set of islands. for those that make their liveoth south china sea, these are anxious times. along with the gas and oil reserves as the very reason that competition with resource-hungry china is likely to intensify. >> the potential for an escalating crisis is made worse because china's complex power struggle makes its intentions opaque forcing its anxious neighbors to look else wrfment >> this exercise takes place in the philippines every year. it is the context that is interesting. china's growing assertiveness is deeply troubling to its neighbors and america is taking the opportunity to gain strategic advantage in the region. the u.s. insists there will be no new cold war with china. but this is the first real test of the shifting balance of power. >> big question" rise of china. still to come on the program, could the arab spring be an arab winter for women? one journalist says it

don't also forget, loans are rising in china. money supply is rising in china. and i wouldn't get too bearish on it. i don't think it's a soft landing. i think it's an expanding economy. so we'll leave it there. now, as we've been saying on the show, we had a volatile roller coaster week here on wall street. monday down 131 points. tuesday off 214. wednesday up 89. thursday up 181. today down 137. all right. that is life. we have to cope with it. here now we bring in our expert investor, steven weiss of short hills capital and author of the new book "the big win." zach karabell of river twice research. and joining us for the first time on "the kudlow report," alec young, global equity strategist with s&p capital iq. in your honor, alec, is china doing better than we think, or am i just whistling dixie? >> well, i think it's probably somewhere in between. i think, you know, it's a manageable situation, but what we'd like to see is more comments around more bank reserve requirement cuts. we've seen a couple, as you mentioned. that's really jacked up lending. that'

i still think the china has a long way to go no no denying that china is growing a lot it is but it has a long way to go before it can get close to even think you are passing the us ok. you know i would say six years isn't deadline you know if you actually know for sure i bet there is the former comptroller of the united states the guy who is in charge of auditing the books of the u.s. government david walker has been saying earlier this year that the u.s. is now where greece was two years ago in terms of instead crisis or just under present numbers it is six years it's not really their plan if you're. watching r.t. now our special envoy kofi annan says he's received assurances from syria that it will on a an agreed u.n. . cease fire excuse me by thursday it's after a deadline for troops to leave the city has passed on tuesday with some western and arab states accusing the regime of failing to stick to its commitment in the country has argued socks on a break. the syrian authorities claim that they have big on that partial withdrawal of bad troops from in and around urban settlements we

be an expression a strong china as china is now china's. not big enough to petro the arctic ocean as of now but. that will stop china's premier in trying to exercise diplomatic get rich even to the arctic ocean because china now is the second largest economy and it has a stake in just about every economic issue will for europe wallow in recession and china growing at least eight percent a year and china outpace europe ecological is soon or later maybe soon i. think the global community. in accepting the images of china's economic superpower and accept work with china rather than outpost china. israel says it's not playing gigs its threats to attack iran becomes a defense minister insists it's not just belligerent rhetoric to bully to advantage to abandon its nuclear program but israel's apparent failure to prepare its citizens for any retaliation may suggest otherwise as pulis lier. they were very family lives the missile range of gaza for years they complained to the government they had no shelter to protect them from because some rockets

the president of china, mr. hu jintao, visited america. the and the vice president of this country, mr. biden, visited china in august. this was a very important visit. there is another next week. we saw last year a record growth of our people to people exchange. according to that temporary statistic, in the first nine months of last year, 1.0 7 million chinese tourists visited this country, the biggest increase of 27.7%. more than 2 million american people visited china, which means on average, every day, more than 9000 people are crossing the pacific. nowadays, about 160,000 chinese students are studying here. you have more than 20,000 american boys and girls studying in china. we saw a new record of our bilateral trade. last year, america experted $167.70 billion to china, up by 19%. that makes china and america each other's second-largest trading partner. the state of california placed a large role in this relationship with china. the state of california experted $10.50 million to china, an increase of 19%, making california the larges

and china. secretary of state hillary clinton and treasury secretary tim geithner are expected to begin talks thursday center on trade, the economy, and nuclear tensions with north korea and iran. chen will be the elegan elegant-- elephant in the room and reportedly some u.s. officials have departed early to negotiate his fate. >> we're going make sure that we do there in the appropriate way. >> reporter: today white house kounts terrorism advisor john brennan stressed the importance of improving u.s.-china relations. >> i'm not going to address the issue of mr. chen right now. we are work very closely with the individuals involved in this. and so i'm going to leave it to others in the u.s. government who have responsibility for. >> reporter: negotiating chen's release will be difficult for both countries, with the administration hoping to avoid accusations of caving on human rights, and the chinese fearing too many concessions may embolden other activists. >> i think that the u.s. is not in a p

shuyang grows many of china's trees. nursery owner arrives in style. >> translator: this is my nursery. as far as you can see. it's 40 hectares big. >> reporter: he used to produce a kind of box wood for hedges. now it is mainly cherry trees. in recent years, the price has risen sharply. last year, he netted about $150,000 in profits. this year he expects to sell 80,000 young cherry trees, 60% more than last year. it is no wonder that he can afford three cars and three phones. >> translator: cherry trees have given me a better life. and filled my wallet. >> reporter: other cities like guangzhou and chongqing have joined shanghai in holding similar festivals. and cherry blossoms are now become china's new symbol of spring. mari yamada, nhk world, shanghai. >>> most of the rain is gone in central tokyo. but more precipitation south of japan. mai shoji with the details. mai? >> yes, gene, that's right. in southeastern china, as we speak, stormy weather is targeting the area. and we're talking about very heavy rain accumulat

wages in china rising and that may increase. that makes china less competitive. the weakening of the dollar of course has helped relative to europe and other countries that have floating currencies. and we're seeing china doing some revaluation of the yuan. the basic economics are looking in essence less bad for the u.s. and because the pendulum is swinging the other direction. we think that sometime in around 2015 for a series of goods that are very important to the u.s. economy, the economics producing in china will be around 10% lower cost at the factory gate than the economics of producing in certain parts of the united states the same kinds of products. that spread gets pretty low when you think about transportation, country risk, the thought of being 5,000 to 7,000 miles away from your customer. all of these add up and say that we would expect to see jobs and economic activity return to the u.s., because the pendulum swung too far in the other direction. we're a little surprised because we weren't expecting it when we started to look for companies participa

from china. i don't know the exact extent of that. we have to deal with it in another context in terms of the sensitivity of that information. >> panetta said the potential threat from north korea would be increased if it had mobile capability for long-range ballistic missiles. north korean military leaders put what appeared to be a long-range ballistic missile on display. they say it's the same as a special purpose vehicle developed by a chinese company. an online version of the magazine says if the vehicle was chinese made, china may have violated u.n. sanctions. foreign ministry spokesperson said china strictly follows security council resolutions and says chinese leaders enforce laws to enforce laws against weapons of mass destructions. >>> analysts reflected for a week before putting a satellite into spate. north koreans say they finished analyzing the launch and are determined to press ahead with their aerospace program. >> north korea released a statement about the launch. the statement cr

and he told his friend he prefer not to leave china, he prefer to stay in china. so i think if he insists on staying in china, it will be a big problem for both countries, both governments. it will say, hey, you have two choices, either set him free, or the chinese government can arrest him, which makes that a bigger problem. or for the united states government and if he refused to leave, what are they going to do. >> susan shirk, what do you think about that? us it possible for him to stay and there is there an appropriate balance that can be struck? >> you know, unless the chinese government does something very dramatic at this point to show that, you know, like firing the head of public security or undertaking some major steps forward in strengthening the legal system, i think it's pretty well impossible for them to creditably commit to protect mr. chen, his family, his associates, in a way that we would really believe. so even though he wants to stay in china and certainly if he leaves china, his will, his influence will wither away, that's what happens to all

china relations because we often hear from u.s. politicians especially in election year is very hawkish rhetoric towards china and i played one example of mitt romney saying i would label them a currency manipulator if i was in office i'm curious from your perspective you would buy businesses doing business in china that i would presume see china as an opportunity i'm curious what their perspective is from them how do they see china as an opportunity to have exactly right it's a two hundred billion dollar market for u.s. companies and u.s. products and services and we see that very clearly and a number of things are happening to try to win hands that opportunity i think what china has just done here with its currency flexibility move just right now yesterday is a very good move because i think it begins to to play down some of the political concerns about currency many companies are not as concerned about currency as i believe perhaps some politicians and some others here at home where we're jobs may or least perceived jobs have be

so not only china. if you come to the western regions in dhi in a, it is true that the development, economic development in china was in the first maybe last 20 years more concentrated in the east. so now it's going accept by step to the west. >> and of course this is geographically very close to other emerging markets. russia of course and maybe potentially pakistan, central asia, as well. is that in your cites already? >> what we believe is that the plans what we have in china producing costs for dhi in a essentially. because we have a very strong demand. products are very well accepted and we have increased even market share last year. so we're in a very good track record. as a consequence, we he believe that it's important that we have this chinese plans for the chinese market. >> and 10 million mark for volkswag volkswagen. how strategic is that and how close are you? >> we have a clear vision. we want to become the most competitive common factor. so we want to have the best people. it means as wel

china is developing an aircraft carrier, china is developing nuclear submarines. so the overall chinese military development is a source of tremendous concern to india. the relations between india and china of political, diplomatic and economic have improved over the last eight to ten years. trade is booming, it is about 50 or $60 billion. there's a lot of political and diplomatic exchange, but at the same time there's an underlying tension between india and china because of the outstanding border dispute. india and china have a border dispute, which is one of the longest running disputes in the world. india is very concerned about pakistan and china's close military and nuclear relationship. because both are old friends and there is a lot of military and nuclear cooperation between the two sides. so the increasing concern of indian security planners is a two-front collaboration between pakistan and china. >> that was raul bedi, a correspondent with jane's defense weekly in new delhi. >>> the reaction in china to india's missile launch was restrained. liu weimin c

sea and it's leaving china on edge the u.s. and the philippines maintains that this is all simply an exercise but china sees it as a provocation this has tension mounts between the philippines and china over disputed territory at the drills are happening here on the western philippine island of palauan there is a standoff between the philippines and china over who has the rights to the nearby waters the philippines says the area lies within their territory china claims it's theirs and there's a lot at stake the island said on what some estimate to be around fifty billion dollars worth of oil china also and territorial disputes with area in the area with indonesia taiwan and vietnam so are the military drills a sign of what's to come and will they be a step toward pushing china to a breaking point to discuss this dr paul craig roberts former reagan administration official joins us joins us now welcome paula so the u.s. and the philippines say these are only drills nothing to be alarmed over but is there more to it. of course the

the result was his book one step ahead in china which appeared in 1989. professor speed retired from teaching in 2000 and i arrived at harvard in 2007 and i am truly grateful for the mentoring and the encouragement and friendship that his offer a far more junior colleagues since his retirement, but of course defending the junior colleagues hasn't been his main focus in the years since his retirement. rather he's devoted his time to completing his book on deng xiaoping and his era. the book was recently awarded the lionel goblet prize for the contributions to international understanding to buy insurance and be the first of many awards for this extraordinary book. the masterful country inns of study chronicles the rich and intricate career from his work to 1904 of the end of the dynasty to his death. he spent almost a century of dramatic changes as of experienced war, revolution, the maoist era and finally the economic boom of opening up reform and she played a role in his nation's politics and development over the period. how does he find a way to turn chi

and not with china. it's a case of real politic and i think that there are certain governments that believe that they can they can benefit from this and they're they're likely to side with whoever is going to be if you were a player or they perceived to be is going to be eventually when you're in a state of confrontation so obviously at this stage america has clear security already when it comes to convention all the naval assets for example let alone cyber weapons and all of the other tools of warfare that are being deployed in an unmanned aerial vehicles so i think the u.s. is going to be obviously the dominant player here and a lot of governments will will she can't with their will as it were if even if they don't agree with all of the u.s. policies they'll certainly go along with with it in order to get certain kick back some kind of diplomatic so. they're watching r.t. with me kevin now into night still to come the hague's rejection of palestinian request to investigate alleged israeli war crimes on

here's how china is looking at the world max currency war is a hot topic in china so these are photos from the china money report and if you could look at the first photo it shows four different books on currency wars are the top sellers in this chinese bookshop the number two images dollar crash and number three is the american dream over so this is the view the perception the population of china the one that works to pay off the debts of lloyd blankfein little lloyd blankfein here it is also a reflection of how their actual leaders think because we have headline here china views us as a declining power says an insider the senior leadership of the chinese government increasingly views the competition between the united states and china as a zero sum game with china the likely long range winner if the american economy and domestic political system continue to stumble according to an influential chinese policy analyst the united states is no longer seen as that awesome nor is it trustworthy and its example to the world and admonitions to china should therefore be much discounted mr wan

the big country in question is china. as china has grown, they've been able to throw its weight around with its smaller neighbors. take the example of tiny nepal. it's sandwiched between two bigger powers, india and hooen. china is the world's second largest economy, and india ranks tenth. nepal is not even in the top 100. it often has to bow to the demands of its bigger, more powerful friends. while india has traditionally had more influence over it, that role is now switching to china. china has doubled aid to nepal. it's building roads there and a railway linking the two countries. obviously, china wants something in return, and it seems to be getting it. for the last two decades thousands of tibetans have escaped to neighboring nepal every we're. often heading onwards to india. that number has now dropped sharply to just a few hundred. as china tries to cement its control over tibet, it has asked nepal to police station its border and stop tibetans from escaping. nepal has complied. china's influence strempz far and w

for example, would a world order where china at least as we note china right now was the leading power be as disposed to the political and economic aspirations of other nations as we are? now, look, i still have hope that behind the occur curtain of secrecy that veils the chinese say the that there are voices that advocate for the peaceful and responsible rise of that nation, voices that reject the idea that will global power is a zero sum game. we hold out hope for a new china of tomorrow, but for now, we must deal with the china we know today. a china which enjoys its closest relationships with countries like north korea and iran. so at least for now, it would be foolish to be confident in the idea that china can be counted on to defend and support global economic and political freedom or to take up the cause of human rights. by the way, the rest of the world has especially their neighbors have figured that out, too. and they would prefer not to take that risk. the short answer is that at least not yet anyways, there is no one else to hand off the baton to. even if that were a good i

china first. your note today, it appears china will cool from the initial surge. want to give you a comment from apple from the call yesterday in which the company says, this is from peter oppenheimer. we continue to see tremendous momentum in greater china where iphone sales were five times the level of the year-ago quarter. the bottom line is they don't see china moderating at all. if anything, the expectations are it would continue to pick up. why should we believe that you think it would cool? >> well, that's not what i heard on the call. what he said on the call was the supply/demand imbalance was no longer occurring in china and they're looking for a sequential decline. so if you look at what happened in china, two of the smaller operators that are predominantly post paid operators, 50% of one guy's business, 75% of the other ones that launched the iphone in january then march that delivered a lot of pent-up demand and should have been expected by investors. when you go forward after you get the post paid customers, what happens in the next quarter? a ton of

that's incorrect in china. the chinese central bank uses reserve requirements strictly as a means of sopping up speculative inflows and outflows of capital betting on rmb. when you see them lowering reserve requirements, that means speculators are no longer buying rmb and that's likely to be weaker rather than stronger. the way you can detect softening monetary policy in china is through administrative controls, quotas for loans, restrictions on mortgage lending and the like. all of those are easing and will ease more in the coming months. you will get support from the central bank and from the restrictions on mortgages easing that should help the declining real estate prices in china. >> doc? >> john, great to have you on the show. i respect your insight on china virtually more than anyone else. i love last week that we had you and steven roach talking about china. quick question about what came out of the apple investigation more or less last week. is that something that is going to be a little bit of a setba

don't we want to accommodate china's rising status? >> most do but not everybody. >> rose: most everybody does? >> yes. >> rose: all right. i thought most of what john merchant wrote amount was israel before israel he was on china. okay, successful u.s. effort to enlarge the west making its it the world's most stable and democratic zone, corporate west from europe through eurasia by embracing russia and turkey would enhance the appeal of the west core principles for other cultures thus the gradual emergence of a democratic culture. >> yes. and here is the optimistic future, three basic examples, not including the bottom billion, the advanced industrial west and you have to get north america, japan, europe, a few others and you have to get them going more, more dynamic, more lively, you have the rising powers who are democratic and who are taking off but not fully members of the top club, india, much of latin america and brazil, other places like that, you have to make room for them and incorporate them into the system and bind them tig