and china. it would improve relations. >> as sun li points out china town evolved into unique community. >> talk about grand avenue. >> this part is the most picturesque and visited by the community. it was built by the people who survived the earthquake and wanted to reinevent china town. >> you have the ideal chinese american family living in the public housing. so we have a happy endsing that ends of this hundred years of chinese american history where you have healthy chinese families living in china town. >> that was as good as it was going to get at that time, right. >> absolutely. >> soon china town would be in need of a ren na -- renaissa . >>> new award-winning restaurant is in the heart of china town. much needed renaissance of -- >> they both were it was time for a change. but having a conversation of how it should change or what should change about it to bring it into the next it's next life. for me this is about getting the conversation started about, about what products we believe

what he has heard to say about the one china , accusing china building fortresses in the south china sea and that china should not be doing that, so he is constantly pushing. but remember, he is the president-elect, not the president. china is continuing to be muted and its response to this controlling from trump. -- controlling from trump. the real question is what will be policy after he takes presidency. we're just getting a breaking news story from malaysia, the malaysian ringgit has the climbed to the lowest level since the 1998 asian financial crisis, dollar strength playing out here. dollar worth of the highest since the 1998 financial crisis, the ringgit the lowest since then as well, quite something. right, let's move on and have a check of the business flash headlines. airbus has suffered a blow to program, iran380 dropping the plane from its fleet upgrade. tehran reduced its order in a revised contract the superjumbo. airbus has already cut production as demand dwindles. the only carrier to give the aircraft a major role in its fleet. ukraine is to nationalize its biggest

in china. and even though trade is controversial, i think there is a consensus that investment is basically good. it is job creating, that, if president-elect trump is , he would say yes. investment creates jobs. think it is a reasonable theory to come up with that president-elect trump will president obama could not conclude, the bilateral investment treaty? that it will look to a business person as a little hesitant through and job creating? and that it would be a way to kind of lay a constructive foundation at the beginning of an administration? because they were this close to getting it done that they couldn't get it done. is that something that you think may be in the cards? sec. albright: not if that tweet t he you read is what i thinks. they would have to be a number of adjustments on tariffs and a number of different ways of looking at it. and the question is, whether in a negotiation on a bilateral treaty -- bilateral investment treaty -- for: so china would open sectors to u.s. invest

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

china was diplomatic, but what did china say? >> reporter: alison, they did not illicit response to the tweets. the minister for foreign affairs stopped by saying reaffirming the bilateral relationship with the u.s. and china, and under scoring what he was calling the mutual trade benefits the two countries enjoy as a result of the relationship. he went on to say that china is not in the habit of speculating the actions of president-elect trump or his transition team. he went on to say that china doesn't comment on the personalities or styles of foreign politicians. instead, he said china comments on policy. that begs the question, what is the policy and will the chinese and u.s. policy change? there was a phone call with the taiwan president that broke protocol which was met with concern in beijing. the tweets adding to the concern. we know that trump took a hard line against beijing on the campaign trail. the question here in china is whether this is just tough talk that appeals to president-elect trump's base or if it is a sig

-china policy. of course, chinese officials ra react the throughout the weekend first with the call to the white house asking for clarification and a slew of statements that have come out from the chinese over the weekend continuing to urge the united states to stand by take one china policy. carol? >> jessica schneider live outside of trump tower. later this hour, alexandra field will join us from beijing to discuss china's reaction to all of this. let's talk about that and much much more. with me, cnn political analyst rebecca berg, national political reporter for real clear politics. karen tumulty from "the washington post," andrey brower, former lieutenant governor of south carolina and cnn commentator bakari sellers. welcome to all of you. what do you want to talk about first? we got a lot on the plate this morning. let's start with jill stein. she's expected to speak at any moment about this recount and is holding this rally in front of trump tower. what is she expecting to gain from that? >>

china policy. mr. orlins: does this, excepting a call when he is not yet president, i would argue that what our prohibition is about official contact and since he is president-elect and not yet president, that actually is not an official contact. no? that is ager: well, good way to describe it. [laughter] -- orlins: sense that it since i look to avoid confrontation that is the way i choose to describe it. i look to the secretary of state in taipei and i know since i worked in the state department there are prohibitions. i said wait a minute, you're not supposed to be here. he's a, i have been named but i have not taken off yet. i am not official. so there is precedent for that kind of contact. so what do you think after that , the president-elect was out a tweet after he criticized and i had to write it down to have it precise. "did china ask us if it was ok to devalue their currency, making it hard for our companies to compete? heavily tax our products going into their country? the u.s. does not t

the one-china policy which has china in a very, very concerning level. they have sent out some tough statements. so you are seeing, you know, donald trump being provocative when it comes to china. and, as you kind of pointed out, sometimes less so when it comes to russia. >> mark, thank you very much. we'll be right back. technology is the only thing that really entertains us. i'm gonna use this picture on sketchbook, and i'm going to draw mustaches on you all. using the pen instead of fingers, it just feels more comfortable for me. be like, boop! it's gone. i like that only i can get into it and that it recognizes my fingerprint. our old tablet couldn't do that. it kind of makes you feel like you're your own person, which is a rare opportunity in my family. (laughter) ♪ ♪ see ya next year. this season, start a new tradition. experience the power of infiniti now, with leases starting at $319 a month. infiniti. empower the drive. i thodid the ancestrydna toian. find out i'm only 16% italian. so i went onto ancestry, soon learned that one of our ancest

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

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

a military confrontation with china in the south china sea? could it lead to a trade war with china and i'll throw out a third thing, north korea. north korea's getting very close to have a nuclear weapon it could place on a missile. china is our leverage to stop north korea from doing that. >> but, but isn't it possible, china's also building military installations in the south china sea, right? it's becoming more and more aggressive militarily. the united states is worried about that. cheap steel on states like ohio cheap chinese steel and that makes the manufacturing jobs go away in the rust belt of america. so, when you consider those things, which are more important to people's lives, frankly, in the short-term, right? then, then, again, donald trump's supporters would say, go for it, donald. >> right. well there's a lot of agreement that there are problems with china. but i think that two issues. one is how is he conducting this kind of diplomacy. twitter is not subtle nor are the statements he makes. that can have dangerous consequences

and china. offered them in 1973, a direct hook up with our early warning satellites and said in a top-secret eyes only memo just declassified a few years ago -- we will provide you radar technology to make that are used of the intelligence and warning we will be giving you in real time because your bombers are all on one base and you need to be able to scatter them with early warning technology. so, i am trying to lay out for you what i cover in a couple of chapters in the book. of is the grand strategy china plays down the military spending in the military strategy. you miss understanding what china is up to if you look at the military side. acronym notntagon used by the chinese. they do not describe what they have been doing for the last 10 years in our vocabulary. their version of what they are doing is back to the 1955 challenge by chairman mao. had a list of indicators, a net assessment. assessmentnd of net about how we would surpass the americans. sincet time, they have changed this but at

-china relations into sharp focus. it was the first time since 1979 american and taiwanese leaders have spoken in a break from diplomatic practices. trump said it was a routine congratulatory call, but on sunday night, he criticized china's military and economic policies in a series of tweets. in china, an editorial warned the united states risked a confrontation with beijing. meanwhile, the obama administration says national security official spoke with their counterparts to make sure of u.s. commitment to the one china policy. joining me now is ian bremmer, president of the eurasia group a global risk assessment firm, and richard haass president of the council on foreign relations. his forthcoming book is called "guess what: a world in disarray." i'm pleased to have both of you here. i begin with you, richard how , serious is this? how did it happen? how will it play itself out? richard: it is pretty serious in the sense that the call broke ground, unfortunate ground that hadn't been there since the late 1970's. the

imports to china, andover the south china sea. as you say, these tweets follow criticism from china over that controversial call he held with the president of taiwan. we have seen the offshore yuan versus the dollar traded lower following these tweets, and the question is whether this is more anti-rhetoric from trump or whether it confirms he will be taking a more confrontational line with china. he has talked about labeling china a currency manipulator. analyst atrd from bank of tokyo mitsubishi that they accept him to do that and label china i'm manipulator early on in his first term. we have heard from our analyst saying that if he starts targeting china on trade and the one china policy, then we will certainly be in for a rough road. from the taiwanese perspective, the call was a calculated risk. they would like to see greater recognition from the u.s. but are aware that will be pushed back from china him a but president tsai ing-wen has suffered in terms of popularity. the economy is not doing so well a there there so well ei

and china, one certainly on taiwan, one over the south china sea, one over trade. all very dangerous tense issues, without any articulation of exactly what the change is, other than we're going to be tougher here. and the thing is that each of these has a potential for an escalatie ining conflict. the south china sea, you have u.s. war planes flying over those islands. i was on one of them last year, coming in very close proximity to u.s. war planes. you have chinese warships sailing by those islands coming very close as well. as you raise that tension, those conflict points, one of those, whether it's in the military sense or as van says, in a trade sense, has the potential to blow up, to some degree, and when that happens, it's not just the chinese that pay, right? it's americans who potentially pay as well. >> we're going to have more on this conversation. we're going to focus on a completely fake news story. a member of the trump transition team, and the man who opened fire at a washington pizzeria. later, protesters trying to stop an oil pipeline score what lo

the one thing i know for sure about china is that i will never know china. it is too big, too old, too diverse and too deep. it is simply not enough it is t it is changing so fast. china has a population around 1.3 billion people. a number of them who are joining this class demanding their share of all that good stuff in sf infrastructure and the clothes and the classes and the engine that drives the whole world. ♪ >> anthony: very much, yes. >> okay. >> what do you want? >> anthony: yes, soup dumplings. professor of shanghai at jou dong university. by so many people you meet here, he's chinese but educated at american universities and was taught at yale and duke university of state. >> anthony: you fiorgive me, china looks different every time i come. it is changing so quickly. how did that happen? >> china enjoys a long series of peace. the manufacturing industry took off and policies and every country went into trade with china. >> anthony: there is no doubt that we are bound on. we are hopefully lessly and our economy is hopelessly interveneal. if one

/china relationship. he lived in a port city eight years, developing a business park and importing foreign goods. it's where he met his wife and raised their daughter. in 2010, he moved to bellingham, washington, where he began exporting among other things alaskan fish and timber to china. he says the playing field has never been level. china puts tariffs up to 30% on u.s. fish while their fish comes here duty-free. >> they basically are grabbing us by the nose and kicking us in the rump. >> reporter: when it comes to china, president-elect donald trump sounds a lot like candidate trump. >> they haven't played by the rules, and i know it's time that they're going to start. they're going to start. >> reporter: during the campaign, trump said he would label china a currency manipulator, back out of the trans-pacific partnership, and hilt chinese imports with tariffs up to 45%. all needed, trump says, to correct a 3 3w568 dollars trade imbalance with china. >> the nation of china is responsible for almost ha

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

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 $198 billion. 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. an america that has certainly lost plenty of traditional manufacturing jobs, like here in pennsylvania, once the heart of the us steel industry. but although people may blame outside forces, economists argue that the job market has changed and that cheap goods from china have been good for hard—pressed us consumers. with china, maybe just we challenge them on one of their policies and then they retaliate in some way. they may announce a retaliation, they may not. but it looks like quite a bit of friction with china in the months ahead. china's response, as ever, cautious. but caution with an edge. china does not appreciate being called an economic bully. translation: china

reaction to china. and i were talking a few days back to the former boss of the ecb, jean-claude trichet. he describe the current account surplus as enormous. it's only going to get bigger going forward from here. is that become a political problem for germany in 2017? >> not in 2017, i think. the pressures in europe will build over time. if you look at the electoral calendar in 2017, we don't see any big events triggering stress around the current account surplus. i think the issues you have, when you look beyond 2017, the pressures which have led to a rise in populist politics, not only within europe but in the u.s. around the world, those pressures are not going away. we have seen some improvement in global growth, and you still expect european growth to remain lackluster for a number of years to come. headwinds remain significant, the demographic headwinds, the productivity headwinds remain very significant. the results of those pressures is going to continue to build. i suspect we will still be tal

i'm sorry, but china does not make our foreign policy and china does not tell our leader who is they may or may not speak with. >> and on that point, the democrats blasting president-elect trump on this issue. yet they didn't blast president barack obama on his steps to get a better relationship with cuba. >> you know, i think that's exactly right, they're trying to portray this as some kind of a sign that mr. trump's foreign policy will be incomp tent. the real issue here is that we're looking at a new president who will be strong and decisive in principle and will not follow in the steps of barack obama. >> what do you make of the fact that china issued a stern rebuke if you will of in phone call between these two leaders, although china does not recognize taiwan has having a leader, it calls it one china and this is the first break with diplomacy since 1979. >> this is the way china deals with this relationship. we need a good relationship with china, and i think we will have one with a principled and strong new president and a principled and strong secretary of state whom by the

china relationship. thank you. from the nyse, the company is cut --ing trading on our platform, from 10:50 through 11:05 because of a technical issue. all orders will be canceled, so again, it is going to suspend trading for 15 minutes because of this technical issue. we will bring you any updates. we will let you know when trading has resumed at 11:05 as scheduled. mark: coming right up on the european close, barton is looking to sever ties in order to boost returns and focus on the ones that produce significant profits. today. net story stocks 30 minutes away from the end of the monday session, the stoxx 600 is down today after two weeks of gains. it is the week before christmas and volumes are down 20% over the 100 day average. look at the currency board as well. there is more of a slight to haven today. stirling is down against the dollar. this is bloomberg. york.is 11:00 a.m. in new 30 minutes left in the trading day. >> i'm julie hyman in for vonnie quinn. this is "the european close" on "bloomberg markets."

brandstad has ties with china and he would be source of strength for donald trump in china. at the end of the day, maria, if we look back into history and u.s. policy being about a win-win relationship. right now china is winning. not the u.s. that's why donald trump has made it clear that he will make sure that we are leading from a position of strength of america and china will not be bullying us and the fact that we need to definitely change the perception here and the idea of the trade deficit which is $365 billion and it really shows that donald trump is wanting to put someone who speaks and represents in a solid way in governor brandstad. kevin: isn't this post more important now than ever now that the new administration has sent strong message that is are they are deepening the ties with japan, you saw yesterday, you have government officials from the japanese government meet with the trump team. is this sending a message to them specially about the south china sea? >> absolutely. i think that what we have seen under president obama's administration is clearly the fac

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.

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

/china relationship. the understanding about taiwan goes back to the 1972 communique that nixon and kissinger negotiated. everything is built on this idea that there's one china and we're not fundamentally going to challenge that. trump has put that in play. if it's all about leverage and bargaining, you can argue getting an extra source of leverage is sensible. as richard said, there are so many things the chinese could do that would -- back in 1969 there's a mad man theory of how history works and sometimes you just have to be the mad man and he was claiming that north korea would see how crazy and erratic and volatile nixon was and would make concessions they wouldn't otherwise. i sometimes think trump with his impulsive statements, he's crazy like a fox and would think he'll get new concessions. this wasn't the area to play with that idea. it's too delicate. >> play the man mad you're saying at times when it helps you. it never hurts in they think you're crazy but not here. >> not on this one. i think

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

china. grew up in china, educated in harvard, stanford, a u.s. citizen. jing, let me start with the election of donald trump. what impact do you think his election is going to have on u.s./chinese relations, the most important relationship in the world today? he's said some pretty menacing things. he's said a lot of things. how worried are you about a sharp decline in the quality of the u.s./chinese relationship? >> well, good morning, roger, thank you very much for your kind introduction. and good morning, everyone. in terms of u.s./china relations, clearly there will be a lot of uncertainties. mr. trump on the campaign trail said that he would grant chibra china a currency manipulator on day one and impose a tariff on chinese exports. let's look at the economic factors. to brand a country a currency manipulator, there needs to be three conditions. number one, this country needs to run a large current account surplus in excess of 3% of gdp. number two, this country needs to have a very larg

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

has officially regarded taiwan as part of china since the 1970's, but even that so-called one china policy is up for grabs, according to the president-elect. publicly, china's tone is measured, although one member of the government did say tearing up the policy would amount to a rock andting up dropping it on their feet. >> we ask american leadership to understand the sensitivity of the taiwan issue, stick to the one china policy and the principle established by the three joint communiquÉs between china and the u.s. gary: with just 39 days to go before he is sworn in as president, donald trump seems determined to tear up the diplomatic playbook, be it with russia or china. the geopolitical tectonic plates are most definitely on the move. gary o'donoghue, bbc news, at the white house. katty: ok, what does all this mean? bill cohen is still with me. you have worked throughout your career with intelligence services. with af, out with the -- with a with this if it was as mr. trump says, ridiculous? mr. cohen: i don't think so. this is really going at the heart of the intelligence community to

president jimmy carter chose china. it's called the one china policy and that's how it's been since then, no exception. we sell them arms but no communication, or there wasn't until now. as you remember, trump spent the campaign accusing china of manipulating its currency, and taking advantage of american businesses. and he repeatedly threatened to take a harder line toward beijing and its behavior in the east and south china seas. but the u.s. relationship with the chinese is very complicated because we really need the chinese for issues including the north korean nuclear program. so he has ecenter intentionally sent a message or has accidently caused what could become a big problem. general griffin is here. >> reporter: for the first time china flew a pair of nuclear capable bomber around taiwan on november 26th. less than a week before president-elect trump took the phone call from the taiwanese president. breaking decades of protocol and raising eyebrows in washington. the flight of the chinese bombers was a test fo

china is the biggest international market. is not only market a benefit to local makers but foreign players. anchor: up next, we speak to one of malaysia's biggest banks git.t the weekend ring ♪ ."onne: this is "daybreak asia betty: a quick check of the latest headlines. airline earnings set to suffer the first annual decline in six years as oil prices trim margins. that air transport association says combined income will be a fraction under $29 billion. however, airlines are increasingly resilient. >> we are being helped by the oil price in 2016. we must be aware of the ability to very well and efficiently restructure their business. we have increased the resilience of the industry. airlines hasppine confirmed an order for 12 planes. the manufacturer says the deal -- it could rise to 400 million. starbucks is seeking to foode the growth of its sales by persuading customers to come back for lunch. they want to boost food from 20% of sales to 25%. they want to add cafÉs over the next five years. hasthe malaysian ringgit lost

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

of south china sea? author of the current collapse of china and analyst as well and has lived and worked in this part of the world and i'm curious going back and forth, gordon, what's your real take away about the controversy over this call? >> there are a lot of people in the state department and in washington, foreign policy establishment that are ringing their hands. they are trying to defend a policy that hasn't worked. what they want is cooperative relations with china, to be friendly. the purpose of american foreign policy is not to make u.s. autocrats happy. our policies just haven't been doing it. we need to impose some cost on china and better relationships with taiwan, it's an important cost in the eyes of beijing. good foreign policy on the part of donald trump. jenna: i have to pause you for a moment. we got breaking news from pentagon, producer there lucas thompson that breaks news for us and he said that they just found out that china flew nuclear capable bombers over taiwan. again, that's

you are losing your job to china. it's china's fault. our bad trade deals with china so not surprising he is coming out of the blocks with statements on no better way than to then the chinese sanctity and control over taiwan. major domestic political issue in china. the population supports a one, china policy. taiwan is part of china, this reverberates with china. >> the islamic state has retaken the ancient city of palmyra, months after syrian government troops claimed a major vic against the terrorists. the united states state department cannot confirm it, that's really neither here nor there. excuse me. 'tis the season. opposition activists say isis has been rounding up people in palmyra. they cut of the heads of statues and the cities ruins are thousands and thousands of years ol'. the tear yosts appeared to have time their push for pal -- palmyra will the government has been working with aleppo. >> the former congressman excused of using tax dollars to decorate his office is heading to court. he claims the accusations are lies. his

we have on the phone, gordon chang, author of china, the coming collapse of china. but first to you, jeff. she punted on that one. reporter: she sure did. was not taking bait at all. mary barra is pretty good doing that sort of thing and steering clear of controversy. i thought it was interesting, she agreed to be on president-elect trump's economic council. but at this point that was a paper transaction. she has not up this point even talked to him. we'll see where this goes. liz: gordon, you're on the phone. what has your digging turned up? is it ford? ford has operations in china. general motors does business there. they have buick plant for many, many years with a chinese partner. now suddenly post-phone call where donald trump took congratulatory call with the stated enemy of china, the country of taiwan, suddenly they start crying price fixing. against at least one of these companies. again we don't know which ones. >> we don't know which one. everyone's been saying either gm or ford. clearly what china is trying to do is inestimate date trump -- intimidate tr

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

yvonne: up next, it has been a tough year for china. those lucky enough to get a that wentny company public, whether the good times can keep rolling. this is bloomberg. ♪ yvonne: it is 8:30 in singapore. from theour away opening of trading. i am yvonne man. betty: quite the opposite in new york. a rainy and gloomy all day. it would have been snowing if it was a little colder. i am betty liu. let's get to the first word news. reporter: donald trump says it is time for the u.s. to bigger and better things after the sheda administration puni russia. the tycoon issued a statement saying he will meet intelligence officials next week. russia rejects the accusations. announced angs has campaign to eliminate waste. the plan is nicknamed the waterline project. he has spent four years cutting costs. has trimmeduring some $700 million of expenses. also, italy's bail out of the world's oldest bank has won the green light. the rules say banks with a capital shortfall are not allowed to benefit from liquidity schemes. and a north korean economic le

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

inside china but then it would be more amazing for people in china to discover what they have in their own country because people in china have no idea. they did not even know some of the species existed or where they can find them. all they see is brick walls and cities. everyone, in the back of the head knew that this was something that could be done, could be an industry and people are interested in making film and that is the start of something brilliant. incredible talent. if you're scared of heights close your eyes now. one man who isn't is alan eustace, a senior google executive who in 2014 broke the world record for the highest parachute jump. he took a balloon more than 135,000 feet into the stratosphere and skydived back to earth. the space suit he wore is now on display at the smithsonian's national air and space museum in virginia. jane o'brien kept her feet firmly on the ground and went to take a look. what goes up must come down but simply reaching the earth's stratosphere was the first challenge for alan eustace. it took more than 2 hours to ascend 25 miles and around 15

government of china." china views taiwan as a threat and could destabilize an already fraught relationship. trump had a choice, downplay the call or declare he's taking u.s./china relations in a different direction and he seemed to indicate the former. "the president of taiwan called me today to wish me congratulations on winning the presidency. thank you." >> so this was an intentional sort of challenge to the foreign policy establishment, to the u.s./chinese diplomatic establishment? >> no, chuck. this was a courtesy call. they called to congratulate the president-elect. >> so courtesy call, not a change in policy? >> exactly. >> the chinese government took a similar approach. its foreign minister saying, "this is only a little trick put up by taiwan. i don't think the u.s. government will change the one china policy." but negative coverage of the call seems to have gotten under trump's skin as it so often seems to and yesterday he followed up with a couple of tweets striking a very different tone. "did

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

and china. and so with that, as well as some of the other concerns about trump's behavior, a lot of people here are worried he's much more erratic than they feel comfortable with. that is something that the business community here is watching very closely. one thing, wilfred, is that i was speaking to one long-time china watcher here who said that they're happy with the push-back from trump in some ways because there's so many concerns about china. at the same time, he said, it's very dangerous to poke a tiger in the eye. >> eunice, it is, indeed. thank you for us, reporting from beijing. >>> trump wasn't done there and spoke out yesterday on the cia findings that the russian hackers tried to help him with the election. >> i think it's ridiculous. i think it's just another excuse. i don't believe it. every week it's another excuse. >> key members of the senate armed services committee took a tougher stance in response for trump calling for a full investigation into the election cyber attacks. th

/china relations. matt rivers, cnn, beijing. >> so the trump team appears to be vacillating somewhat on china policy. trump talking tough in 140 characters on twitter. but reince priebus now seems to be backing away from that call that trump took from taiwan. this is what he told fox news. >> we're not suggesting that we're revisiting one china policy right now. he's not president right now and he's respectful to the current president. >> but mr. trump is acting as if he is president of the united states. he tweeted out that china should return that american drone. we just told you about that. and he saved those jobs for carrier in indiana. so how is this affecting policy? joining me live from washington is greg polen, director of the asia maritime transparency initiative at the center for strategic and international studies. welcome, sir. mr. trump's tweets on china and in regards to that drone led to this editorial in a communist-controlled chinese magazine. quote, he bears no sense of how to lead a