Is There Hope for Optimism in U.S.-China Relations?

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Nov. 12 (Bloomberg) -- Jon Huntsman, former U.S. Ambassador to China, examines U.S. political and economic relations with China and what he expects from China’s third plenum. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Ambassador to china.

As china prepares for the future and economy, where is america to asia on a specifically with china policy?

America's asia is a little ambiguous at this point.

Diplomacy will need to be filled in over the next little while.

That is rains why the next investment treaty will be so important to get motivated behind.

This will be critically important to future trade and investment relations because what we're looking at here is a fundamental historic opportunity for china to begin to open up and make the economy more market-based on the to deal with a large rural population migrating to the city centers to figure out how on the fiscal and financing side i can get both a better balance.

They have enormous challenges.

This will all impede tread -- trade and investment years to come.

My sense is they are taking pretty bold steps, not unlike what was taken in 1978. no one knew at the time what it really meant.

I think the same will be true here.

Or the same in 1993 where china made a surprising bit to go to the world trade organization.

Looking ahead, what is the biggest issue that china faces that has the potential to spill over to relations with the united states?

I think those are all manageable.

They have been since 1985 for the most part.

I think the domestic situation is probably the most sensitive and challenging right now.

When you spend more on your ministry of public security then you spend on minister of defense, you get a sense as to where the challenge lies.

That is fraying around the edges of china, unemployment, inflation.

It was not as much a political event as it was a reaction to the economic circumstances.

I think those domestic circumstances loom very large or the stability.

How do you respond to secretary clinton's statement of fair trade?

She wants to be fair with china.

What does fair trade meet with your history and relationship with the country?

It means you have to put your best foot forward, but you also have to have a very solid drop that speaks to being able to take after china for unfair trade actresses.

They are a member of the wto.

We are able to adjudicate disputes increasingly.

You will have them.

You are bound to have some pretty sensitive, deep and complicated trade disputes.

The question going forward, can you do call them or do their muslim -- mushroom into things beyond the trade agenda.

We will have to see.

My belief is you will make sure all of you -- that you have all of the instruments and the idea that china does not do so all the obligations.

Every time there is a leadership change, there is optimism they will open up markets and reform the economy and reform outside investments.

Why are you so optimistic that this time is different?

It is different with every leadership change.

He represents the first out of the era.

The rise of a fundamentally new dynasty.

The first person not anointed.

He has been a governor.

Does he understand investment and trade and economics?

Of course.

He has been in one of the most successful providences in the country.

He is a pragmatist and understands by doing nothing china faces serious problems going forward.

He does not have the luxury of being able to sit by and allowing the status quo to prevail.

He must move and move with a sense of consensus with the military and senior reaches of government.

That will not be easy but now has a template he can work with.

Good to see you as always.

Jon huntsman, former governor of utah.

Time now for the agenda.

We look at the major stories shaping the day.

My agenda is thursday.

This text has been automatically generated. It may not be 100% accurate.

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