Australia and then they wake up one morning and burma has flipped on them. It was eternal in terms of their faithful allies. These things caused a lot of consternation. So the old fear of diagnostically speaking in china is to fear with sand and travel without. These things happening around them excite them. How much does it add to that anxiety is that all . Is the most problematic relationship now in japan and this is not good. I have to say i think japan probably hasnt played this as well as it might have, but i think on the other hand it would be fair to say also that it serves chinas purposes to have something happening outside his orders which can rally people at home. Theres a lot of complex things going on in each of these reactions to foreign movements outside. Which makes your job complicated. I wonder if you go back to the news last week with the North Koreans surprisingly, given reports of their technical difficulties but the longrange missile tests seem to fully back or not. We have been communicating with the chinese about the need to dissuade north korea from launching a missile. Although they say for satellite into outer space its using the same technology thats important, that would be used to launch a nuclear warhead. This type of Missile Technology is expressly covered under u. N. Security council resolutions, prohibiting such testing of missiles and the type of technology, supported by china even. The last time in spring when china tried to launch a satellite, but it failed using this technology, china said we need to come out with a president ial statement from the United Nations on this president ial statement condemning the actions of north korea can set the stage for tougher actions in the future if china if north korea were to launch another missile. That missile has been launched. We now think its time for tougher actions since her engaging diplomatically with china and other members of the u. N. Security council on tougher resolutions and possibly sanctions against north korea. Make any progress quick if you type to the state department to figure out whats going on. Weve conveyed very frankly, candidly to the chinese in both washington d. C. And beijing in my case. In beijing, what is the view that you can tell of kim jongun about what power he has, who he is, what its capabilities are to stay in north korea . The chinese believe we need to give north korea a chance in and develop economically. China would like all the parties that are part of the Six Party Talks to get back to the table and to see if we cant encourage better behavior from north korea as opposed to imposing sanctions now and trying to coerce north korea into the fold and abiding by their international obligations. So thats a difference of opinion as strategy. China believes we have to engage with north korea. The United States does every time to try to engage with north korea, they basically turned around and fail to respond to their promises and live up to promises and it gets us nowhere. We dont believe we should reward bad behavior. He knocked what is the most important thing the chinese leaders want from you everyday . What are they looking for . They want greater cooperation with the United States because they understand how important United States is for their own economy because so much of what they sell and produce is exported all around the world. They want the u. S. Economy to be stronger as quickly as possible and robust as quickly as possible because it means theyll continue to ask for. As much as they try to move from an export economy to a domestic consumptionbased economy, and the reality is the more americans were coming for money they have in the pocket and the more theyll be shopping in stores. The healthier the u. S. Economy is, the more they china will export and that means jobs for the Chinese People. How much are they actually worried about the United States and how much time and attention are they paying to overdo it and enough relationship versus there are internal issues . I think the United States is incredibly important in china and they recognize that not only did their part to always ambassador locke has just described, but in another way i think you could say its more psychological. Its a 150 year history where china has been trying to chain itself up into big power status. Its not there is very close to being there. Get their just lingering psychological mind that of china being the demise of the great powers. Its kind of a struggle between chinas new confidence and success in this old feelings, which is why they pay me to asia rattled a little bit. This the mac it is to not wallow in narratives of the innovation. Hsl justice Chinese Communist party at the beginning of the last century there is this sense of china. Japan not only occupied it, but every other of power grab pieces of it. So this is in the dna. Isnt there a struggle between being of the dim, victimization and real asian superiority . Its an absolute contradiction and its kind of a worry in two sides of the same mind and i believe in the end any sense of chinese confidence and respect for in the world will help encourage that will in fact cure this historical dilemma. But today it hasnt been fully fledged. So this is the reason why your job is so hard, ambassador because sometimes we think that are produced straight forward hurt them in another late because of this incredible historical dna that keeps expressing itself. Give an example in your 16 month for something certainly not directed, not meant boas understood there immediately to deal with them junkbond products speed matches for sins over the value type or think ill cook islands come in the supports japans and puts japan up to the purpose of the island by the government of japan simply because we have a treaty with japan and they believed were there for a site with japan on the islands issue because they are treating this as we will come to the defense of japan but we have defense treaties with many other countries than it hasnt been we agree with the actions of all of our allies in trying to make that differentiation has been very, very difficult. I was unable to recite for like for you personally. He became minister celebrity in china and people saw you fight your own coffee at starbucks, kerry murel muggeridge and they simply could not imagine it. What was that like . It was rather overwhelming at first it went viral, pictures of us in the seattle Tacoma Airport in the u. S. A. We werent even in china. We were back the United States. Theyve know a kid who took that picture, but somehow it went viral and we were instantly recognized. Even peddlers when we took our family and kids to experience the great wall for their first time, we were asked by everybody along the great while for pictures. So is overwhelming, very, very flattering on the chinese have been warm and gracious and very, very friendly. How much does it matter to them that your father was born in china . At the source of great pride that im chineseamerican, that my ancestors are often china, a waste family is from china as well. In some ways they expect me therefore to take the chinese side on all the issues. [laughter] and shortly after i arrived in before i arrived there was some commentary over the internet this you have to look at the statement. He may be chinese on the inside, but these white on the outside. Excuse me coming out on the outside, white on the inside. They called me a banana. [laughter] some said it was a traitor to my chinese ancestry. Others said hey, hes come in as a representative of the u. S. Government. He will not side with china. He will espouse u. S. Policy 100 . But i really believed to have a slightly different give, the special perspective of history and culture understated my parents immigrant background and appreciation for china, where therefore want to serve as a bridge between u. S. And china. They firmly believe so many problems if they so what cannot solved without the act of collaboration of u. S. And china. What the history books 50 years to knock over 100 years since his china and the United States working together to solve these problems instead of history books blaming the United States and china for failing to respond to things that Climate Change and having history books that nor the incredible contributions of china over thousands of years to grow civilization and it completely overlooked that and just say the United States and china missed the opportunity is screwed up. Ambassador, i must say when you and steve chu, secretary of energy are in china, lake [inaudible] actually its a wonderful part of america. Here we have two chinese immigrant families representing america. Its hard to imagine it in reverse from the chinese side. But then they are not in the great society. Do they take it as an honor . And deep. As ambassador locke mentioned they want to claim him and steve chu as part of the Greater Chinese Community when they Start Talking about human rights or disagree with him on Climate Change. But nonetheless its an amazing moments in american history. You went over there just before or just after the big confrontation in august of 2011 over the debt crisis here and there is so much concern whether china would continue to surface our debts and by our investment, treasury bond. I was just wondering, what is the mayor theo up our political system is working and whether our economy, whether we are a worthy partner i guess. Abuse in the top Chinese Government leaders as they have great confidence in the economy and know how strong it is. Theyve made statements to the south american leaders that have gone all the way from Vice President titan and even then Vice President xi jinping met with president obama in february last year. They expressed great confidence in the United States. There is asking how is the recovery going, what our policies only get our fiscal house in order, but they believe we will and they know how dependent we are and thats why they want the strong to the understanding internal struggle between the congress . Are beginning to understand that more and more with the ambassadors they have an government officials posted to the United States who have studied here in the United States. We constantly are reinforcing that message, the fact we are two totally independent branches of government and the congress does not necessarily speak for the president of the United States. In fact, xi jinping at one point said something very interesting. He couldnt understand that the u. S. Government should have three branches come and affect three governments have been a government because it was difficult to get stuff done. He was right. Thats for sure. Youve had a pretty i shouldnt say you, but theres been a rather the New York Times called the new leaders of china a meritocracy of mediocrity and theres been a lot of talk and a new generation of leaders who havent necessarily earned their stripes. Im just wondering your answer to that. There is talk about the last 10 years being the last decade were nothing much happened. But you know, if you turn that around a little bit and i admit theres a lot of problems and many things were insulted that they said we can ride in the script now. But it was an amazing tenures nonetheless. But other countries had a 10 growth rate . Person instabilities, but other countries manage to build more highspeed rail in the entire world . Infrastructure and things like that. So it is easy to say these are linked uninteresting leaders. But when you look at the actual record, its not that. So i think its decidedly true the first of all its hard to understand china in any terms, but if you cant maintain two opposite things happening at once, its really difficult to understand whats going on. So wheres the attention right now as he talked about this new era ready to be born . What are the competing powers, factions . Its hard to say, but for longtime people if of political reform had to accompany economic reform that she couldnt continue to have economic vibrancy without it. Ultimately i believe it will. But the question is one and when did they run out of rope, having sort of onesided their system reforming and the other side in almost the state of states. Thats the real question and thats the question begged for the next 10 years with xi jinping in office. Can that continue and grow . Or can make it another decade out of the system . We really believe at least the administration, part of their success in being able to enact reform and address the growing disparity between haves and have knots between urban and rural people has to be opening up their markets, financial reform of the Financial Services are, less dependence and reliance on state owned or government owned businesses. Greater protection for intellectual copyrights for their launch partners. Not just American Companies, but intellectual Property Rights of the veteran entrepreneurs because if their inventors and scientists are to create and invent after putting a lot of hardearned money and time is spent into these discoveries and innovations, they want to make sure their products and and impatience ideas are stolen either. So what were really pushing for is a level Playing Field for Foreign Companies, fair competition, rule of law, transparency and a mutual legal system to enforce. How much she spent a piracy issues click we spend a lot. Thats why during the president ial campaign, the president was clear that we have to enforce the rules to ensure fairness by china to its american and other companies. China entered with debbie at geo and is benefited enormously from its secession from the dead pto. China also made a very good promises and agreements as part of that. If we may United States are ever to have additional trade agreements with other countries come at the American People and congress have to believe remake sure when we lower barriers and open our markets to companies from other countries but those other countries will also do the same for america. That is that the president was very clear in the campaign not rhetoric double hold other countries see to the fire with respect to trade agreements and to ensure a level Playing Field. Is this something the chinese leaders are signed to . Yes, chinese leaders will always try to give a push and see if hell back up and if you do that give you another push. And i think they do respect strength. At some point you have to say all right, we dont back up anymore and on the street issues thats what happened and is happening. Of course the chinese dont like it, but they understand the notion of national interests. Even more delicate of the human race. Take us behind the scene when he was taken into the embassy at first. It seemed like he wanted to go back and there was miscommunication between rtm and what actually happened there. Every bill everything, but just let me say a few things. First of all wouldve brought them them into the industry, severe medical conditions we had to attend to. It was on that basis he brought them into the embassy. When he came into the embassy he never wanted to go to the United States. He made it clear he wanted to stay in china, he wanted to be basically a freedom fighter. Several of our discussions with chinese for how we can get back into Chinese Society with protections for him and his family because he is suffered great abuse of his village in the province and wanted to be free of that village. So thats what all the discussions were all about. Secretary clinton is about to come to town for the strategic economic dialogue. With all that silly no pressure to resolve this case and get them out of the embassy before she arrived. At one point we had to make sure he felt comfortable with whatever terms and conditions under which he would plead the embassy and if not we were prepared to have him be our cats reside at the embassy for many, many years. At one point he did not agree to the conditions or offer by the Chinese Government. He said no. At that point he started turning around and focusing on had been a resident for quite some time. Would that have been possible . It wouldve been difficult, but he would not have been able to roam the grounds freely because many parts are offlimits, even to some of the workers within the embassy would pay for is, for instance she vacations. In the old days you just had a telephone, maybe a landline in newspapers, but ive got the internet and who pays for all the Different Service is and how would he feel it to communicate with the outside world. Suppose her issues we started investigating and trying to develop policies over. Fortuitously we were able to arrange for his exit out of the embassy on terms that he accepted. To understand was behind the change in his car . We gave him lots of cell phones and within minutes after he walked out of the embassy, he was calling everybody in talking to so many people. I know is he later indicated and his wife later indicated he was bombarded by faith and comments from many people. That may afflict his change his change of heart. I have to say that negotiation i was in china but obviously outside. With one of the more successful resolutions through a very difficult ernie problem on both sides claimed into it in a very pragmatic way. I think neither side scored points against the other and actually worked out. It was a tough issue i think youre a teen and state departments team didnt use it. I think it was painful for china and difficult for the United