How will the candidates manage the US-China relationship?

This transcript is automatically generated

That's let's go to the next segment because it's a very important one it is the rise of China.

And future challenges for America.

I -- -- just begin this by asking both of -- and mr.

Prez should you that you go first this time.

What do you believe it's the greatest future threat to the national security of this country.

Well I think it will continue to be.

Terrorist networks.

We have to remain vigilant as I just said.

-- with respect to China.

-- both and -- -- -- but also a potential partner in the international community if it's following.

The rules.

So my attitude coming into office was that we are -- -- insist that China.

Plays by the same rules as everybody else I don't Americans -- had seen.

Jobs being shipped overseas.

Businesses and workers not getting -- level playing field when it came to trade.

And that's the reason why I set up a trade task force to go after cheaters when it came to international trade.

That's the reason why we have brought more cases.

Against China for violating trade rules then the other the previous administration had done in -- -- And we won just about every case that we filed.

That that has been decided in fact just recently steelworkers and Ohio.

And throughout the midwest Pennsylvania are in a position now to sell -- to China because we won that case.

We had a tire case in which they were flooding us with cheap domestic tires are are cheap by Chinese tires and -- put a stop to it.

And -- consequence save jobs.

Throughout America.

I have to say that governor Romney criticized me for being too tough in that tire case said this wouldn't be good for American workers and that would be protectionist.

But I tell you those workers don't feel that way.

They feel as if they had finally an administration was gonna take this issue serious.

Over the long term in order for us to compete with China.

We've also got to make sure though that were taking those taking care of business here at home.

If we don't have the best education system in the world if we don't continue to put money into research and technology.

That will allow us to -- to create great businesses here in the United States that's how we lose the competition and unfortunately governor Romney's budget.

And his proposals would not allow us to make those investments -- governor.

Well first votes not government that makes business successful it's not government investments that make businesses grow and hire people.

Let me also note that the greatest -- -- the world faces the greatest national security threat is a nuclear -- Let's talk about China.

China has an interest it's very much like ours.

In one respect and that is they want a stable world they don't want war.

They don't want to see protectionism.

They don't wanna see that they the world break out and into various forms of -- because they have to.

They have to manufacture goods and put people to work to them about 20000 -- million other people coming out of it farms every year.

Coming into the city is needing jobs.

So they want the economy to work in the world to be free and open.

And so we can be a partner with China.

We don't have to be an adversary in any way shape or form we can work with that we can collaborate with them if they're willing to be responsible.

Now they look at us and say.

It is it a good idea to be with America.

How how strong are we going to be how strong as our economy they look at the fact that we Obama trillion dollars and all of the people sixteen trillion in total including.

They they look at our our decision that.

To cut back on our military capabilities.

A trillion dollars the secretary of defense called these trillion dollars -- cuts -- military.

Devastating.

-- -- -- The president's own secretary of defense called -- devastating.

They look at it as it America's.

Commitments around the world and they see what's happening and I say well okay as America get going to be strong and the answer is yes.

If I'm president -- -- very strong.

We'll also make sure that we.

Have trade relations with China that work for us.

I've watched a year in and year out as companies have shut down and people lost their jobs.

Because China has not played by the same rules in part by holding down.

Artificially the value of their currency could hold down the prices of their goods.

It -- our goods aren't as competitive.

And we lose jobs that's cut and they're making some progress they need to make more that's when day one -- -- label them eight currency manipulator.

Which allows us to apply terrorists where they're taking jobs they're stealing our intellectual property -- patents are designs are technology.

Hacking into our computers counterfeiting our goods they have to understand.

We want to trade with them we want a world that's stable we like free enterprise but you gotta play by the rules.

Well governor let me just ask you.

If you declared them currency manipulator on -- want.

Some people -- say you're just gonna -- start a trade war with China on day one is that.

Isn't there a -- that that could happen.

Well they sell us about this much stuff every year.

And we sell them about this my step for -- here so it's pretty clear who doesn't want to trade war.

And there's one going -- right now which we don't know about its asylum one and and their winning we have enormous trade imbalance with China and it's worse this year than last year.

As worse last year than the year before.

And so we have to understand that we can't just surrender.

And and lose jobs year in year -- we have to say to our friends in China look.

You guys are playing aggressively we understand it yet but but this can't keep ongoing you can't keep on holding down the value of their currency stealing our intellectual property.

Counterfeiting our products selling them around the world even in the United States I was -- one company that makes valves.

And in process industries.

And they said look we -- we're having some valves coming and that there were broken and we had to repair them under warranty and we looked him up and and they had or serial number on him and then we noticed.

That that that there was more than one -- that same serial number there were counterfeit products being made overseas with the same serial number as a US company the same packaging.

These were being sold and our market and around the world as if they were made by the US competitor.

This can't go -- I want a great relationship with China.

China can be our partner but that doesn't mean they can just roll over us and steal our jobs -- an unfair basis.

Well governor -- right you are familiar with jobs being shipped overseas because you invested companies that we're shipping jobs overseas.

And -- that's your right I mean that's how are free market works.

But I've made a different bet on American workers.

Now if we've taken your vice governor Romney about our auto industry we'd be by and cars from China instead of selling -- to China.

If we take your advice would respect that we change our tax code so that companies that are profits overseas.

Don't pay US taxes.

Compared companies here that are paying taxes.

Now that's estimated to create 800000 jobs problem as they won't be here don't beat and places like China.

And if we're not making investments.

In education.

And basic core search which is not something that the private sector is doing at a sufficient pace right now and has never done.

That we what was the wait and things like clean energy technology.

Now -- would respect to what we've done with China already.

US exports have double.

Since I came in office to China.

And actually currencies are at their most advantageous point for US exporters.

Since 1993.

We absolutely have to make more progress and that's where we're gonna keep on pressing.

And what it comes to our military and try to security.

Part of the reason that we were able to.

Pivot to the Asia Pacific region after having ended the war in Iraq.

And transitioning out of Afghanistan is precisely because this is going to be a massive growth area in the future.

And we believe China can be a part of the world -- sending a very clear signal.

That America is a Pacific power that we are gonna have a presence there.

We are working with the countries in the region to make sure for example that ships can pass through that that commerce continues.

And we're organizing trade.

Relations with countries.

Other than China so that China starts feeling more pressure about meeting basic international standards.

That's the kind of leadership we've shown in the region that the got a leadership the will continue to show.

I just -- take one of those points.

Again -- attacking me is not talking about an agenda for -- for getting more trade and opening up more jobs in this country.

But the but the president mentioned the auto industry and that somehow I would -- in favor of jobs being elsewhere -- nothing to be further from the truth.

I'm a -- of Detroit I was born in Detroit my dad was head of a car company.

I like American cars and I would did nothing to -- the US auto industry.

My plan to get the industry on its feet.

What it was in real trouble.

Was not the start writing checks it was President Bush the wrote the first checks I disagree with that I said they need these companies need to go -- a managed bankruptcy.

And in that process they can get government help and government guarantees but they need to go through bankruptcy to get rid of excess cost and the debt burden that they'd they'd built up.

Fortunately Robert the president not what you -- -- the fire it up on the big.

You can take a look at -- robbery you do get not look at the -- that not saying -- -- you have to provide a governor help I said that we provide guarantees.

And and that was what was elect able to allow these companies to go through bankruptcy to come out of bankruptcy.

Under no circumstances would I do anything other than to help this industry get on its feet and the idea that.

And has been suggested that I would liquidate the industry of course now.

Of course let's check that's at the height of silliness -- -- -- that -- set I would article record I would liquidate the -- governor I want to people of Detroit auto and for having.

And and that's why.

I had the kind of commitment to make sure that our.

Industries in this country can compete and be successful we in this country can compete successfully with anyone in the world and we're going to.

We're gonna have to have a president however.

The doesn't think that somehow the government investing in in car companies like Tesla aunt and sister making electric battery -- this is not research Mr.

President Beazer.

-- the government investing in companies.

Investing and Solyndra this is -- company this is a basic research.

I I want to invest in research research is great.

Providing funding to universities and think tax great.

But investing in companies are actually not got a guy that's the wrong way to go -- -- matter to speak at all so I -- to make sure that we make we'll make America more competitor.

And that we.

Do those things that make America the most attractive place in the world for -- open doors innovators businesses to grow but you're investing in companies doesn't do that.

In fact it makes it less likely for them to come here -- because the private -- not gonna invest in that.

I'll get guys solar company I'm happy to reflect if if if -- -- -- to get more money -- someone else's they.

What.

I think anybody out there can check the record.

-- Rami you keep on trying to help airbrushed history here you were very clear.

That you would not provide.

Government assistance.

To the US auto companies.

Even if they went through bankruptcy you said that they could get it in the private marketplace that wasn't true.

They would have gone through okay -- -- I I don't know why I'm not a wrong I am not I don't look at it right people will look at up and but more importantly it is true that in order for us to be competitive.

-- have to make some Smart choices right now.

Cutting our education budget that's not a Smart choice that will not help us compete with China.

Cutting our investments in research and technology that's not a Smart choice that will not help us compete with China.

Bringing down our deficit by adding seven trillion dollars.

Of tax cuts and military spending that our military is not asking for before we even get to the debt that we currently have.

That is not gonna make us more competitive.

-- -- are the kinds of choices the American people face right now having a tax code that rewards companies that are shipping jobs overseas instead of companies that are investing here in the United States that will not make us more competitive.

And then the one thing that I'm absolutely clear about is that after a decade.

In which we sought thrift.

Jobs being shipped overseas.

Nobody championing American workers American businesses.

We've now begun to make some real progress what we can't do is go back to the same policies.

That got us into such difficulty.

In the first ports and that's what we have to move forward not go back.

I could agree agree more about going forward but I certainly don't want to go back to the policies of the last four years.

The policies of the last four years -- seen in -- in America declined every year for middle income families now down 4300.

Dollars during the term.

23 million Americans still struggling to find a good job.

When you came to office 32 million people on food stamps today 47 million people on food stamps.

When you came to office just over ten trillion dollars in debt.

Now sixteen trillion dollars in debt it hasn't worked you -- by now we'd be at five point 4% unemployment.

We're nine million jobs short of that I've met some of those people.

I've medal in Appleton Wisconsin's.

-- I met a young woman and and did it in Philadelphia who's coming out us out of college can't find work I've been and was with someone.

-- just the other day that would just weeping about not being able to get work that it it's just a tragedy -- a nation so prosperous as ours but these last four years have been so hard.

And -- and that's why it's so critical that we make America once again the most attractive place in the world to start businesses to to build jobs to grow the economy.

And that's not gonna happen.

By by just hiring teachers look at I loved to have I love teachers and I'm happy -- -- states and communities that want to hire teachers do that -- But what I I don't like -- -- the federal government start pushing its way deeper and deeper into -- schools let the states and localities do that I was a governor the federal government didn't hire teachers.

But I but I I -- teachers but I want to get our private sector growing and I know how to do -- I think we all loved teachers.

Gentlemen all thank you so much.

Four for a very vigorous debate we have come to the end it is time for closing.

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How will the candidates manage the US-China relationship?

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