discussion this afternoon is the us china relations maximizing the effectiveness of the strategic and economic dialogue will you get to introduce you some of our fantastic witnesses that we have today for this afternoon's hearing and in place of our ranking member the gentleman from illinois mr musculo we have one of our senior members not only the  positive cooperative and comprehensive us china relationship for the twenty first century central to believe that relationship would be the us china strategic economic  tensions contributing to the regional and global instability including the nuclear programs of north korea and iran one zone afghanistan and pakistan and humanitarian issues in other parts of the world finally president obama and president you agree that the new dialogue would intensify cooperation on energy the environment and climate and climate change with specific focus on energy and  agencies yesterday was that an expansion of the strategic economic dialogue initiated by the previous administration and organize under the department of the treasury which had focused primarily on economic and environmental matters would also provide a comprehensive framework for the more than fifty ongoing us china governmental dialogues and working groups that cover issues ranging from aviation and to food safety first one of the was held in july of this year washington d c included shino officials from the state department treasury the white house and twelve other departments and agencies of the u s government as well as senior counterparts from fifteen chinese government president obama open the media by noting that the relationship between the united states and china will shape the twenty first century which makes it as important as any bilateral relationship in the world chinese early view the initial meeting of the great success  i participated in last month in beijing with a number of senior chinese officials all gave very positive assessments of the first dialogue premier white said the meeting allowed the two sides to better define further steps they need to take in responding to the global financial crisis he called it a huge success mr walden wall the chairman of the standing committee of the national people's congress noted hillary clinton also pointed to a number of positive achievements resulting from the inner closure remarks of the dialogue she noted the united states and china agreed to promote stability in northeast asia resume six party talks and implement u n security resolution eight hundred seventy four to address ongoing threats alvina to extremism and nuclear proliferation to encourage iran to live up to its general national obligations and to work towards expanded and progress was made on global nuclear security summit that president obama plans to convene early next year in addition the two countries signed yaml you to enhance cooperation on climate change energy regulatory systems the reaffirmation of the two countries commitment to an open rules based trade and investment regime and pledged to work together and ensuring that international financial institutions are provided  necessary tools and resources to respond adequately to international financial challenges and beyond the issues themselves the congressional research service noted that is one of the few venue's in which the p r departmental interaction or coordination the interdepartmental nature of the important is china's own policy makers policy making process has become more complicated now that she does not speak with a single voice and the government must take some account of the views of the media and the public clearly the strategic and economic dialogue covers an impressive array of issues and challenges and it now stands at the very center of the bilateral relationship the united states is now the world's largest economy while china will soon be second we are the world's two biggest trading nations and the two leading emitters of greenhouse gases crisis in generations while of two countries may have different years including a penny dispute over tire imports from china i believe that washington and beijing share interests on most of important regional and global issues more to the point there's no problem in the world that can be addressed adequately without bilateral cooperation whether it be achieving lasting economic recovery and financial stability overcoming the threat first meeting of the day the groundwork for the sort of positive cooperative and comprehensive relationship both sides and from which both countries as well as the region and the whole world will benefit maintaining on the many issues that are currently under discussion between the united states and china i would like to turn the time around to my call for his opening statement mr albright thank you very much mr chairman before i move forward let me just note that i believe that the people of china are america's greatest hope for a better world and what our comments that i have about the government that controls them has nothing to do with the people of china the people of china and we need to be those people are very important allies the authoritarian government that controls which i believe that government is a dictatorship in beijing represents the greatest threat to america and to the western democracy security and prosperity of the future  r chairman china is playing a rogue role in the world it is becomes the ally of criminal governments and criminal  that control various countries on various parts of the planet whether we're talking about burma whether we're talking about sudan cambodia or any list of the other rogue states of the world they're all buddies  china and you will find that the chinese are arming their friends and they are robbing the resources of people like the people of burma where they're letting that regime destroy and dissipate the natural resources in exchange for weapons that are then used to suppress the people and the profits from those natural resource ripoffs or go into the pockets of a very corrupt this is a pattern throughout the world whether it's sudan or cambodia or burma it shows that the chinese government does not reflect the values that we would expect from a country that would have a place  that we would talk to them as equals among nations china continues to be the world's greatest human rights abuse or whether we're talking about  this slow motion genocide that the chinese have put in place to try to destroy the nation whether it's the people of tibet the same slow motion genocide operation against the people of tibet whether we're talking about the falun gong we're still being arrested by the hundreds of times perhaps sometimes by the thousands and thrown into prison and we have had no due process people just disappear pay to democratic nations we need to look at china as america's potential as potentially america's worst enemy it is not an enemy today but it is building itself to the point where it could be the most threatening enemy that we have ever faced first of all when we look at the economic relationship that's been established with china it has been a disaster for the people of the united states and a boon for those  people who control the levers of power in what we've had is an unfair trade relationship that we have winked and nodded and permitted a partnership between america's corporate elite and the gangsters that run china for the benefit of or corporate elite and the benefit of those to the detriment of the american people american people have lost millions upon millions of jobs of manufacturing jobs that have been sent off environmental things that you have mentioned china of course there is no democratic process in which the people of china will try through their government to limit the exploitation of the environment unlike in other democratic record corporate multinationals the small business owners i met big corporate national ok very good and i thank the gentleman from california for his statement and this is what makes the executive secretary and senior corps data for china affairs and the strategic and economic dialogue at the united states treasury department privileged to that mr lovely serve as the u s minister counselor for financial affairs to the people's republic of china also at the treasury department as a first permanent representative in china he was responsible for deepening u s china engagement on financial and i macroeconomic issues including monetary fiscal and exchange rate policies played also a leading role of the u s china strategic dialogue precursor of the current us china strategic and economic dialogue semantics seems to me he worked closely with the chinese regulation regulators to open new markets for u s financial service firms the list goes on riders servers in beijing german was also gentlemen and look forward to hearing from your testimony here thank you very much for the nice introduction mr chairman and thank you mr rohrabacher and thank you also for inviting me today to appear before you to discuss the first u s china strategic and economic dialogue held at the end of july i'd like to provide an overview of the role of the as we call it in our bilateral relations with china the primary goals of the first economic dialogue establishes the framework for the u s china relationship under the obama administration we recognize the importance of engaging china as an important partner in addressing complicated global challenges including the recent economic crisis climate change and threats to national security it's critical that china meet its responsibilities as a global stakeholder and contribute to the solution to these problems the s n e b brings together top u s and chinese political and economic leaders to outline opportunities for cooperation and engage in frank discussions of priorities for our bilateral relationship the dialogue enables us to work together to build trust strengthen cooperation and resolve our differences and we have no illusions about our differences all of which serve all of these activities serving our common interests  d is not the beginning of a g two structure both countries recognize that we can't solve the world's problems bilaterally what the dialogue does is provide a framework for the u s and china to deal with these challenges as responsible global cooperators and open up paths of communication on global issues of common concern we had three primary goals for the first test in the all of which i think we achieved first the s n e d serves as a prime opportunity for our senior officials to get to know their chinese counterparts a necessary first meeting that will lay the foundation for effective cooperation for the next four years the first dialogue allowed face to face interaction among not only the four co chairs secretary clinton secretary geithner vice premier one shaan and state councilor diving but also over twenty officials of cabinet rank from each side we held discussions on issues that cut across agencies including the full range of economic regional global and environmental challenges third b s n e d set the agenda for our future and gave gage went with china by giving our giving our senior  als the opportunity to convey priorities of the obama administration yes in the set the tone and framework for our major bilateral initiatives which china including a number of sub dialogues with regard to the street strategic track it's basically consisted of four areas bilateral real it we discussed bilateral relations international security issues such as nonproliferation and counterterrorism global issues including health development energy and global institutions and regional security issues in north korea afghanistan pakistan and iran climate change clean energy and the environment were addressed in separate special sessions some of the key highlights of the strategic track include first the climate change energy and environment and what you which elevates the importance of climate change in our bilateral relationship second both sides agreed to enhance efforts in promoting regional stability i'm north korea we have affirmed the importance of the six party talks and continuing efforts to achieve denuclearization of the korean peninsula on afghanistan and pakistan the two sides pledged to increase coordination to jointly promote stability and development in the region on sudan expressed our willingness to increase coordination consultation to jointly seek an early and enduring comprehensive political settlement of the darfur issue and promote the north south east peace process in discussions on international security issues both sides noted their shared opposition to terrorism and agreed to hold the next counter terrorism sub dialogue this week actually september fourteenth and fifteenth we discuss the upcoming two thousand and ten nuclear nonproliferation treaty review conference and the conference on disarmament and exchange views on the global nuclear security summit proposed by the united states for march of next year and other global issues of common concern both sides agreed to further dialogue and cooperation on promoting global sustainable development including global institutions and governments addressing public health challenges and future discussion of cooperation on poverty alleviation around the world the two sides held frank discussions on human rights secretary clinton raised u s concerns on the recent violence and she and john and discussed ways to enhance mutual understanding and positive cooperation on human rights issues both sides agreed to reconvene the us china legal experts dialogue and will seek to hold the next human rights dialogue before the end of the year we have no illusions about how the chinese treat their people we have a strong interest in improvement in human rights in china and we make our views crystal clear to the charter absolutely clear to the chinese at every possible opportunity and we took that opportunity during the media to do so this time around and will do so in the future as well on bilateral military to military relations the two sides welcomed recent improvements in military to military relations and agreed to agreed that the two militaries would expand exchanges at all levels over the next year u s senior officials will take full advantage of a pact bilateral political calendar follow through on high level bilateral engagements over the next few months include president's visit to beijing in november several energy and environment meetings leading up to copenhagen and technical consultations on counterterrorism and human rights strategic and economic dialogue has created both a strategic and a catalyst for the relationship that president obama and president hu initiated in april recognize that cooperation between china and the u s is vital not only for the well being and prosperity of our two nations but also for the health and stability of the global economy given that my colleague david has talked about dialogue i'm going to focus my remarks on  the economic track the economic track provides a framework for promoting productive bilateral economic engagement and core u s interest as  and achieving alan gross promoting more resilient open and market oriented financial system third strengthening trade and investment and for strengthening the international financial architecture on the first item promoting a strong recovery and achieving more sustainable and balanced growth both sides agreed to undertake macroeconomic and structural policies to ensure a more sustainable and balanced trajectory of global growth china committed to policies to adjust its demand and relative prices that will lead to more balanced trade and growth to achieve this it will promote more domestic demand led growth and pursue policies to increase the share of consumption in and it also committed to greater development of its services sector which will reduce its dependence on exports and heavy industry and support its transition to a greener autonomy second we focused on building more resilient and market oriented financial regulatory system china agreed to a range of measures including promoting consumer finance allowing foreigners to invest more in china's capital markets increasing the number of foreign joint venture  companies and allowing foreign banks incorporated in china to underwrite corporate bonds on china's interbank bond market this will not only create market opportunities for u s financial services f r a more developed a market oriented financial system it will boost the incomes of chinese households and contribute to more consumption led growth the two sides also agree to strengthen their cooperation on anti money laundering and countering the financing of terrorism and we will continue to encourage their efforts to counter the threat of north korea investment in a committed to a range of measures that over time will create new opportunities for u s firms and work this includes further opening markets to private china recognize the critical role that the international financial institutions play in preventing and ensuring more balance global growth the global economy has export import export just a general point congressman and then i'd like to turn the microphone over to mr lavender but this administration is committed to doing everything we can to   sponsored heavily by our own multinationals i'm curious of that three hundred forty billion dollars of chinese imports how much was that percentage produced by our own american multinational corporations my impression is the biggest foreign investors are from taiwan japan and korea but also the u s is a very important foreign investor in china but more broadly to the point you made the point that congressman rohrabacher made we are concerned about these very big trade imbalances and this was the focus of the economic track  and the message to china is that its growth model is going to have to change because there are changes going on in the u s and u s households are changing their  behavior we've seen going up and that if china wants to grow it's not going to be able to depend on the u s consumer in the way it has in the past it's going to have to produce its own homegrown growth model very simply china is going to have to consume more and save less because the u s consumer is saving more and so how are we going t about and he talked about it wasn't just talk we got commitments from china over the course of the next several years that was our intent going in is to build a framework for engagement for the rest of the  ministration on ways china can bring down its very large trade imbalance the exchange rate is an important part of that equation and we had serious and frank discussions on the exchange rate but the exchange rate is only one tool and we also talked about things china can do in the financial sector creating what we call a social safety net china's got it stablish its own health care reform its own unemployment insurance its own way of financing education and so chinese households feel more secure so they can save less and consume i'm very happy that  same issues will decide to do something specific in which the chinese will feel a consequence if they are not for example giving us the type of reform currency reform that we're talking about and the same type of trade states steal american technology we're talking about espionage economic espionage i mean i understand there's been a about fifty fifty in the last few years that we have uncovered from has been one of the most notable economic success stories in history without a doubt the chinese people have a lot has been improved and more people now are richer in china than they've the lack of regulatory authority on the part of the government to enforce what was supposed to be to keep an eye on if that's a better way of i suppose the extreme of capitalism but you become greedy and you forget happen again secondly china did not have the financial crisis but part of the reason china's financial sector is much less developed than ours and that has its own problems for chinese households it's much japanese our south korean and our other allies particularly the new japanese government we will be consulting with them closely we will be cooperating with them intensively and we will be keeping them fully informed of what flow of north korean refugees across the border we have addressed all these issues within the context of the six party process we hope the north koreans will come back to the six party table as soon as possible as we rigorously  china is north korea's gateway to the outside world right i mean china props up north korea that's the reality now you say that china recognizes the latest u n security council resolution i'm trying to figure out what that means does that does that mean that china is giving us adequate assistance on north korean financial activity because it doesn't look that way i'll defer lavender on the subject of financial activity but in general terms china worked with us in the security council to produce one of the strongest sanctions resolutions on north korea yet that is the result of  cooperation in consultation with the chinese within the security council on a succession of security council resolutions on the subject with regard to implementation we have  consulted closely with the chinese on this we have urged them to implement the sanctions vigorously i think the chinese have have done that and we're working with them on their  very short period of time in terms of the bank banco delta asia that was an example of how you get north korea's attention but that requires the cooperation of china the only point i'm going to make is you know your report was  light in terms of how we've tried to leverage china north korea what i would suggest you use been a lot of time on these issues with with china a whole host of them i think we're we're sort of missing the reaffirmed their commitment to open a rules based trade and investment that seems to me a stretch because i don't see china i can see them reaffirming their commitment i just don't see any practice of it  and one of the reason i say that i'm from california and so i meet with many vietnamese american american investors people all over the map who are trying to do business in china and it's always the same story about corruption you know after after so many of these cases and reading so many of the press as well it's clear that american investors get used and abused in china and you have sanctioned corruption there so what is the united states going to do about that we've got we've got american  being and chinese corruption just takes a whack at them and what's more bother is that the u s government and i'm talking about the commerce department right now very deceptively promotes china i can't tell you how many complaints i get from investors so you go to one of the many conferences they hold and you'd think china was nervous and investors paradise is right for the picking these conferences are a real shame because there are commercial advocacy at the embassies in the consulates which are then absolutely necessary once anybody invests that is very very fe for those of us as worked on constituents cases to try to get any justice done you and i know yes there is no justice in that system so i'd like to hear from you what this trade and investment dialogue was like with the chinese given the fact that some of us know what the process is really like for those involved in trade and investment you know did it deal with the reality that thousands of american investors were getting wronged in china or was it just happy talk or what happened during that thank you congressman royce and frankly you bring up a lot of good points i just spent three and a half years at the embassy and every week i mentioned there's a lot of u s investment going into china because even though it's not a nerve ana businesses are making money and they're growing their business when we say we want to promote agreement and how it didn't matter in the one nine hundred eighty s when the agreement was signed whether china was in our out because he can i was a small purchaser in a small supplier now matters a lot and we also talked about when the administration finishes its review by a lot of its policies towards bilateral investment treaties moving forward on a bilateral investment treaty with china again to put our trade and investment relations under more of a role based framework and my subcommittee look forward to working with you both in the coming weeks and months try to unravel a lot of these fundamental issues affecting the asia pacific region with which this committee has jurisdiction but i want to thank you mr randall shriver podesta serve as white house chief of staff to president bill clinton the president's cabinet and the principal of the national security council one of the white house you also served aboard to the president deputy chief of staff the judiciary subcommittee in the senate chicago natives and i graduated knox college in georgetown law school currently is a visiting professor of law offered several books and the list goes on and on john survey of some four hundred sixty five thousand four hundred sixty five think tanks around the world recently concluded that the peterson is tied for top think tank of the world with the economic dialogue serrano shriver currently is one of the founding partners of the armitage international consulting firm that specializes in international business development strategy formerly also served four years the office of the defense active a naval intelligence officer for about three years was the foreign e conversations with very senior members of the chinese government convince me that the relations between china and the u s are on a solid footing for example state councilor di bangalow told us that the government hope president  obama's visit in november would rival the significance of president nixon's visit and introduce an error and with united states and china could build a positive cooperative comprehensive relationship but you quoted in your opening statement mr chairman look i'm not naive about china i understand human rights issues the issues around support for states like sudan and and and and burma but i think that we don't have the luxury of either ignoring or not getting along with china this moment in  history we have pressing global challenges that need to be addressed with china so i think it's time to move beyond what has been usually referred to as a gaijin hedge framework of china policy and approach and take an approach that's open the strategy that maximizes opportunity and tries to manage the risk the new format of the strategic and economic dialogue will be instrumental to shaping our relationships going forward as well as making progress on a number of global challenges i thought i might comment based on again our conversations recently in china on some aspects of the national security relationship and then talk a little bit about climate change and clean energy and north korea you may know mr chairman i recently accompany president clinton to pyongyang making me i guess one of the few americans who has been there in in in recent years and our discussions in beijing i think suggest that china remains committed to a nuclear position they view this guy thinks right in the region and i think they're being cooperative on that question on iran china's acknowledged that iran should not possess nuclear capabilities but the client use its leverage on the issue of the u s government i  needs to continue to press china on iran given our mutual interest in avoiding a regional arms race and promoting long term stability i think in that regard the chinese investments particularly with respect to developing the iranian  ooperation confidence between china and the u s military's i think it's lagged behind that of other state apparatuses i think both sides have viewed this as as being marked by a kind of stop start restart quality that's not always been helpful to either side and as they both sides actually both the u s military and the chinese military are looking to bring cooperation and confidence to levels consistent with other areas of the u s china relations and senior leaders of our two militaries need to continue to engage in regular and candid dialogue on issues of mutual concern and the resumption of our formal bilateral defense dialogues an important first step and there are a number of other activities  that could could follow on for example our ships are battling pirates side by side right now off the coast of somalia and i think that's symbolic of the way we can develop a stronger mil to mil relationship we also discussed pandemics i think trying to china learned a lesson from sars and are actively cooperating with the world health organization particularly with respect to h one n one while they've made some mistakes in that regard i think they're basically cooperative mode in a positive mode and let me just say a word about climate change during our meetings in beijing we were sure that china will do its part with respect to addressing its skyrocketing emissions rates as my testimony goes over they have very very significant investments in clean energy very major investments in solar and wind developing the clean energy technologies and industries of the future i think they will be a competitive player in that regard in fact i think  e are at risk of falling behind the m o u that was referenced in the first panel i think is a significant movement whereby we can begin to understand and move forward to demonstrate that their emissions  that their energy policy will indeed result in emissions reduction capabilities in measurable reportable and verifiable way so i think it's a very important part of the dialogue and it's been made central under this administration to the of carrying out demonstration of that vital technology to both countries in a way that's cost effective and will result in reduced emissions again in both countries so my time's up and i will turn back t it is therefore clear that effective international policy coordination requires the closest possible cooperation between the us and china the two countries do not have to agree to identical policies but they must be willing able to work constructively together if enough agreement is to permit progress across the entire range of crucial international ranging from recovery from the current crisis to creating a new global regime to than narrow bilateral friction that we've traditionally emphasized in the past second patient of those conditions as you indicate i propose five years ago that the u s and china work toward creating an informal  and they have to agree to make progress the outcomes will be superior and the other countries ought to welcome it so the idea is not to supplant but to supplement make the system work better and without these two whether we like it or not there's got to be agreement or we won't get much progress my assessment of the initial meeting of the essence and its future project prospects is governed largely by an assessment of whether it's helping to create such i think is moving conversation on their respective roles of the world economy and the global economic system as you mentioned mr chairman they weren't even until thirty years ago the whole system was created before they were even if they were not present at the creation they had nothing to do with the rules and institutions so it's not a shock that is they become the second largest economy in the world they might raise some questions about what they're getting into therefore we have to talk with them very way that's even more important economic sphere because they weren't involved in the system when it was created and developed it's critically important to bring them into it so that would be point three  from the government representatives on the world economy china and the u s have led the global recovery with fiscal and monetary stimulus china in fact grew at an annual rate of fifty percent in the second quarter of this year clearly was the first to recover clearly the global recovery the us is now bottomed out our recovery is probably and so i think we're on the way toward joint leadership of the recovery process was critically important to talk about global issues but made good progress i do with a big one but there are several others that remain to be addressed so they've got a big agenda for the future that i hope they will continue to address thank you very much start to emerge from thank you very much mr chairman thank you for the invitation and thank you also for sitting me alongside people i respect and admire so much i know we're somewhat judged by the company we keep and i know my reputation is enhanced t produce results if the fundamentals aren't there in the relationship in the reverse is true as well the fundamentals are in place the form of dialogue will only marginally affect the outcomes and i guess i would take a bit more i want to say pessimistic but maybe in my view a sober minded view of where things stand i think although it's undeniable that our interests are converging in many ways there are still very profound differences between the united states  differences will mean that the outcomes in the deliverables in the products i think will necessarily be modest and i think that was frankly borne out in the first round of the it doesn't mean the dialogue shouldn't take place but we should think carefully allies and people who share our views and share our interests and i think that's an important point to keep in mind i think many of the advantages of this form have already been discussed for several of them i do think it's useful to the inner agencies on sides interact and deal constructively on a range of these issues obviously having a flagship dialogue of this magnitude can be an important action forcing event that can incentivize governments into action and obviously having a format of this nature when things are said they are almost by definition authentic authoritative and it's a great platform for communicating clear messages i think between the united states and china that single goal of clear communication helps us avoid differences and conflicts and miscommunications that in and of itself is important but let me focus on what i think are a few of the potential downsides and i do so at the risk of sounding overly negative but i just want to use the time to be constructive and and talk about what i think some of the potential pitfalls are number one i think we have inadvertently place china in a place of priority or predominance that they haven't quite  earned i would note that you pan still has the second largest economy in the world we have other major trading partners in asia we have trading partners around the world who are more closely allied to the united states share our values but yet as was noted earlier there's never been anything like this in terms of my level engagement with any of these countries so i think inadvertently we've given the impression that china has a place a priority which i don't think quite frankly foreign through their actions and through their policies i think that segues into a second concern i have we often value differently on the outcomes of dialogues of this nature china often judges success or failure based on having to actually produce if they perceive they are already the great strategic partner of the united states my feeling is based on my experience of interacting with china that may actually decrease the possibility that they will engag constructive cooperation and in fact there are a range of things we can and should be doing with our allies that are not only the right things to do with respect to those relationships and for us interests but also is a smart thing to do in terms of engaging china  i mention the it's a useful action forcing event but the reverse could also be true china often holds in abeyance initiatives and deliverables and outcomes until the next round of a major dialogue so i think there is a potential downside of this diluting many of the other interactions we have for example the so called joint commission of commerce and trade another downfall and potential downside i would note of respect for both of them but it's very frankly hard to see from the outside that there were clear u s priorities being conveyed in the city and i think that that has the potential to dilute the possibility of achieving outcomes on what are truly the most important strategic issues for the united states and finally i worry a little bit about a sense of complacency that we have so many ministers so many cabinet secretaries that we will be under the impression we're talking to all the right people and we have a vehicle that is sufficient for all the work we need to be done that needs to be done in the u s china relationship and in this regard certainly underscore something mr podesta said about the military to military relationship i think if we could get operators into a room to talk about  safety on the high that in and of itself would be just about equal value to what we're getting with all these cabinet secretaries and ministers i know my time is running very short let me just quickly conclude with some  recommendations i don't want to cast aspersions i think high level dialogue senior dialogue with china is important i think it can be improved number one i think we should step up our cooperation with our allies i think we should conclude corus i think we should enhance our t for talks with taiwan and i think we should really take advantage of this fiftieth anniversary of the us japan alliance coming up for a robust security declaration again right thing to do but i think it actually helps us to engage china number two i think we need much greater clarity on the agenda for the so that we can really work on issues of true priority number of cabinet secretaries in ministers adjusted accordingly if we're able to do that and focus on more concrete and specific  agenda again number three other four we should be complacent about this all the right people all the right issues i do think military the military is extremely important and then finally i do think we've we've created an impression and i will i will only say that human rights is lower on the agenda than i feel it should be with china i take the administration and mr scherer again who i respect greatly i take him out as worried about the vigor with which these issues are pursued comment on your original comment which was how china has had such stability economic stability when there's been such economic chaos going on the united states in the western markets i think that  if you have to live in a country where they have killed the lawyers and jailed all the union organizers and cut off all free press and political opposition it would appear to ink these are not things that only westerners want i think that the chinese people i see them as our greatest ally and they right now have a boot on their face and it does not do us any good contributions have clients from businesses that are making profit from the china  market let mr berg answer for his group we take small corporate contributions of the center for american progress i generally in the vicinity of twenty five thousand dollars but never for any work that we do  year decade now that if we just deal with these people with a cooperative spirit and really treat them as friends that they are there will be a liberalization going on i have not seen liberalization going on in the you believe to be were threats to the stability and peace of the world the somali pirates or china's claim to almost the entire  out a solution that may be that the implication may be that the core should be that weaken the dollar and weaken the reserve position of the u s dollar it seems to me that the more effective way to approach this problem is actually to  discipline and creating a macroeconomic policy that is going to have wage growth happen in the united states so that the pressure to kind of borrow our way into prosperity is reduced as people's incomes are blackberry and she said china has a quote market managed unitary floating exchange rate and i thought i had heard that wrong california has had to leave but i want to just to share with him with all my perspective about our relationship with china china is not a perfect country but neither is the united states or any other powerful of the communist countries most populous of that time also tom joe and why literally change not only the balance of power in the world but has probably in my humble opinion made a better to dialogue and to the point where we've established eventually a formal diplomatic relationship so i i wanted to share that with my friend from california maybe a next time gentleman i know it's been a long afternoon and certainly one to commend all three of you for your most eloquent statements and and opinions in terms of this very important issue i just wanted to ask dr bergstrom i think it was at one time china wanted to propose an idea of an international currency rather than yours in the dollar of all othe countries what do you think of that idea and their concern comes about because of what we've done in terms of our own economic recession which has literally affected the entire world economy including their reservations about my own of opinion is that it goes beyond the size of the economy in the size of the population in terms of how you interact with another country and undeniably i wouldn't question anything that was said earlier about the importance of working with china to deal with the whole swath of global and regional issues it's far easier to get things done if china is on board and i dare say almost impossible in some cases depending on the value that symbolism and that status much more than other countries so i've always advocated not pulling back on how we china but to ensure that our allies are properly positioned we're doing all the things like the us free trade  of line with with other panelists in the administration but i think the coverage is actually very bare on us china cooperation if you want to really talk about meaningful consequential outcomes and i know there's a range of issues people point to north of control or dominate the international architecture on either the economy or the environment as we've talked about but we need china in all those relationships in all those arenas and i think that strategic and economic dialogue opens the door to strengthen that relationship strengthen the partnership i think that a number of the potential outcomes have already been mentioned we've spent a lot of time thinking through  the again the energy and climate aspect of take the two countries together there's more than forty percent emissions globally or from the united states and china if we both don't move forward both  particularly in that area a rino we need to we need to if you will all we need cooperation for sure and the research and development side on the technology deployment side but we also need diplomatic co operation and ensure that the world moves forward and i think the same is true with respect to security arrangements randy was i actually think that particularly this year that the chinese have actually been and i say this from the perspective of not just listening to what i what what i've heard in the united states and in beijing but actually what i heard in the d p r k i think that the chinese have surprised to some extent the north koreans and the vigor with which they reacted to perspective where we are could find ourselves in a very unfair fortunate rapid deal in the near term but you know we what we need to do i think is find a way forward that think in fairness to what they're trying to do they're trying to sort of through what exactly are the issues that are relevant and important and i suppose the more we get dave results of that style or that we can probably make a better leaders of china is their desire as well and i suppose it all comes down to one word gentlemen and that's trust ideologically different but i don't think you'll find the chinese any different in terms of their use ayers to have the same things that we wanted life here in our society so you gentlemen have been so patient and so kind to give us your precious time and i sincerely hope that this hearing is being good for the public and especially for my colleagues your statements have been made part of the record without objection if you wish to submit any additional materials to be made part of the record i would i would welcome a gentleman i'm sorry i don't have any call to a pig to give you for