Xi jinping as president. applause he was the only candidate, and won 2,952 votes. A lone delegate voted no, and three abstained. translated it meets the popular expectations, and it meets the expectations of the Chinese People and the nation. It is a happy ending. Woodruff the 59yearold xi had already been named military and communist party chief in november. Now, he will officially lead the most populous country on earth with more than 1. 3 billion people. China also boasts the worlds second largest economy, after the United States. And it is the second largest foreign holder of u. S. Debt, about 7. 5 of the total. But the two nations economic relationship has been marred recently by allegations of widespread cyberattacks on american targets. Increasingly, u. S. Businesses are speaking out about their serious concerns about sophisticated, targeted theft of confidential Business Information and proprietary technologies through cyber intrusions emanating from china on an unprecedented scale. Woodruff chinas foreign minister initially dismissed the allegations, but on tuesday a spokeswoman took a different tone. translated what the internet needs is not war but rules and cooperation. China is willing, on the basis of the principles of Mutual Respect and mutual trust, to have constructive dialogue and cooperation on this issue with woodruff u. S. Officials welcomed that statement, and today, White House Press secretary jay carney said president obama telephoned xi to congratulate him on his election. As for the cyberattack issue. I can tell you that at every level when we engage with our counterparts in the chinese government, we talk about all the range of issues that are important between us and, you woodruff another friction point with the United States is chinas growing military reach and its confrontations lately with japan and other neighbors over territory, disputed islands. On the home front, xis arrival has raised hopes for reforms to stop corruption, environmental damage and a growing gap between rich and poor. The people of china and the rest of the world will have the next decade to size up xi. Hes expected to serve two, fiveyear terms. For more on chinas new president and what it means for the United States, im joined by Ken Lieberthal. He was senior director for asia on the National Security council in the clinton adminsitration. Hes now a senior fellow at the brookings institution. And gordon chang. He was an attorney in hong kong for twenty years. Now, an author and contributor to forbes. Com. Let me start with you Ken Lieberthal. What do we need to know about xi jinping . The most important thing we know is hes going to govern china for the next decade and that will be enormously important for china, asia and globally. Hes worked his way up to every level of the chinese political system so hes a very experienced politician and administrator. Hes coming on a program saying hes trying to clean up corruption, revitalize the communist party and keep in the power and use these capabilities to reform the chinese Economic System while maintaining or Building Military strength. Woodruff is there something about his background we should know . His father is a comrade of mow say dung, which makes him a princeling. Hes the First Communist Party to be born after the communist leadership came to power. Xi jinping is in a system and a politburo at least for maybe five of those seven member bodies are conservatives, the hard line antireformers. Xi jinping, whatever he thinks, has got to work with those people. Pelley Ken Lieberthal, what do we have to look for that will be different . What will change from ching . Hes already tried to change the style by being much more of a lively politician than his predecessor was. But gordon is right. We have to see whether he can forge the consensus to make deep Structural Reforms in china that the country deeply needs if its going to move forward. Woodruff for example . For example, they need to shift from an export oriented and investment focused economy to one thats much more focused on domestic consumption as a driver of Economic Development which requires expanding the services sector, increasing incomes and so forth. That runs against huge vested interests in china. So he needs to rework through this system so that he can build the services sector, building comes, reduce huge capital intensive from you can which you are projects and reduce dependence on experts. Woodruff looking at him from the United States, what will we see that looks different do you think . I think the one thing weve been concerned about is al that although hes been in power for a few months when he became general secretary of the party china has engaged on provocative maneuvers against the japanese because the chinese claim sovereignty over the east china say. People say xi jinping is leading chinas Foreign Policy on this issue and if so were in trouble because this is a troubled area. Woodruff do you believe Ken Lieberthal that thats a primary priority of his his real priority is domestic. He needs stability abroad in order to reform domestically. But his big problem is that he that the communist party has nurtured ardent nationalism domestically and cant allow themselves to get on the wrong side of that or he wont have the Political Capital to carry out reforms. So hes trying to walk a tightrope, he has to be seen as strong in International Affairs but i dont think hes looking for trouble internationally. Hed rather avoid if it if he can. Woodruff do you see that the same way . I think he would like to avoid trouble but china is doing things which is causing trouble not only with its neighbors from the arc of india to the south to south korea in the north but also with the United States. Its not just a question of cyber hacking, its these questions of sovereignty, closing off the south china sea, support of north korea, these are ngs that deeply trouble the International Community and the United States and if china wants better relations with us they can stop do what theyve been doing for the last three or four years. Woodruff is that something thats believed the chinese leadership wants to pursue or is it something that just happened . Clearly the Peoples Liberation army, the security services, even the communist party itself have been involved. Theyre going after our corporates and trying to get information to use for commercial purposes but most important theyre attacking the institutions of a free society. New york times, wall street journal, washington post. This really goes the core of what america is and so this is very serious for us. Woodruff how much does that, Ken Lieberthal, interfere with Everything Else that xi jinping wants . Well, i think the Cyber Security issue is moving to the center of the u. S. China agenda so its likely to be an issue thats troublesome. The chinese are engaging in a huge amount of cyber espionage, by the way, so is everyone else. I think this is an area that requires a lot of very careful thinking we cant ask the chinese to stop doing something were doing. We cant ask them to obey rules that we dont ask france and others to obey. But this area is going to be troublesome, i think it will take a while to figure out even what we want with rules that we would like everyone to adhere to that were prepared to adhere to ourselves. Woodruff what about the huge role, gordon chang, that china plays in the u. S. Economy, holding so much debt. A trillion dollars of american debt. I dont think thats a big issue or should be a big issue for us. Last year chinas transfer was 136. 3 of its overall merchandise trade surplus. That means theyre running deficits with the rest of the world so they can run a surplus against us. That gives us leverage if we care to use it on issues that kens been talking about like cyber attacks. Woodruff finally to both of you, Ken Lieberthal, as you look at the next ten years of leadership under xi jinping, what can americans do they look for constant internal struggle in china or what . I think if you really understand the chinese system youll see this is a place thats in serious trouble. Theres trying to be revarp the economy and the system of the population i would much rather have Barack Obamas problems than xi jinpings problems looking ahead. Well see over the course of ten years whether china has managed to make the changes necessary to be the dynamic wealthy economy ten to 12 20years from now and beyond. If not theyll be in serious trouble within a decade. Woodruff quick final board . I think political system is in disarray. The communist party doesnt have its consolidated. You have to military breaking free of civilian control setting the tone for chinese Foreign Policy. That is problem for us. Woodruff Ken Lieberthal shaking his head. Ill disagree that. I disagree with a lot of what you say, too. Woodruff well get you back soon to finish the conversation. Brown still to come on the newshour the view from argentina of pope francis; an emergency manager for detroit; the bright lights on San Franciscos bay bridge and japans recovery, two years on. But first, the other news of the day. Heres hari sreenivasan. Sreenivasan president obama went back to the capitol for a third day, bidding to build support for a longterm budget deal. He met today with both Senate Republicans and house democrats. But it was unclear how much headway he will be able to make. Most republicans are balking at any additional tax hikes to cut the deficit. Many democrats are opposed to substantial cuts in entitlement spending. The democratic led Senate JudiciaryCommittee Approved a new ban on assaultstyle weapons today. The bill would outlaw the sale of 157 kinds of semiautomatic weapons and limit ammunition clip sizes to 10 bullets. It passed on a partyline vote of ten to eight, with all republicans opposed. But it faces long odds in the full senate. The head of the Transportation Security Administration is defending a proposal to allow small knives on passenger planes. The idea has provoked a backlash by pilots, flight attendants and others. But john pistole told a house hearing today that the concerns are misplaced. He said an attacker could use any number of things already on planes. A metal knife or fork, whether its a wine glass or wine bottle that they break and use, theres any number of things that could be used as a deadly instrument. It really gets again to what is the intent of the person on board as opposed to the object. If we simply focus on objects, then were always behind the 8 ball. Sreenivasan pistole said airport screeners find some 2,000 small knives a day, and each one consumes several minutes of time. In afghanistan, the top u. S. Commmander is warning american troops to be ready for more attacks by afghans. Thats after afghan President Hamid karzai accused the u. S. And the taliban of colluding to destabilize the country. The New York Times reported today that general Joseph Dunford sent the warning to battlefield commanders. He told them in an email, were at a rough point in the relationship. Karzai issued a new Statement Today saying he wants to help reform relations with the u. S. A coordinated attack on the Iraqi Justice Ministry killed at least 25 people today in baghdad. Car bombers and gunmen launched the raid, near the heavily fortified green zone. Fighting lasted for an hour, as ambulances attempted to remove scores of wounded. No group immediately claimed responsibility, but the assault bore the markings of al qaeda in iraq. Theres been a surge in the exodus of syrians escaping the civil war in their country. U. N. Officials reported today the number of registered refugees increased 10 just in the past week. That brought the overall count to more than 1. 1 million. Its believed thousands more syrians have fled, but have not registered. Israeli Prime MinisterBenhamin Netanyahu reached an agreement today to form a new coalition government. Its the first in a decade to exclude ultraorthodox jewish parties, and its expected to try to curb preferential treatment for that minority. The coalition may also push to restart peace talks with the palestinians after four years of virtually no movement. But netanyahu warned, none of it will be easy. translated we are engaged in the final details of the coalition agreement, in order to bring israel a new government next week. The next candidacy will be one of the most challenging in the history of the state, this is not lip service. We are facing Great Security and diplomatic challenges, theres no exaggeration, theres no exaggeration. Sreenivasan the new government is set to be sworn in on monday, two days before president obama plans to arrive for his first visit since taking office. Honda motors is recalling 250,000 vehicles worldwide due to braking problems. The automaker said today the problem may cause braking even when the driver is not pressing the pedal. The recall affects four models made between 2004 and 2005 the acura r. L. Sedan; the acura mdx s. U. V. , the honda pilot s. U. V. And Honda Odyssey minivan. No accidents have been reported. Wall street pushed higher again today and the Dow Jones Industrials rose for a tenth straight day the most since 1996. The dow gained nearly 84 points to close at 14,539. The nasdaq rose nearly 14 points to close just short of 3,259. Those are some of the days major stories. Now, back to jeff. Brown yesterday, a selection that took many by surprise. Today, the new pope spent his first day as head of the worldwide Catholic Church. We begin with a report narrated by Jonathan Rugman of independent television news. Reporter hes a vatican outsider who speaks five languages. Pope francis or jorge bergoglio, celebrating mass in the Sistine Chapel tonight with the cardinals who elected him decked in gold. Hes 76, a little unsteady on his feet here but the argentinean spoke in fluent italian without notes and last night italys bishops were so convinced that one of their men had won back the papacy that they sent out a message of congratulations by mistake. This morning the pope, who is also bishop of rome, visited one of its oldest churches, praying for the citys safety hes the first noneuropean to become pontiff in 12 centuries but his parents were italian and the welcome here could not have been warmer from here he took an ordinary police car to collect his luggage and pay his bill before the move into a more upscale neighborhood a no nonsense debut from what appears to be a backtobasics downtoearth pope. Apparently hoping to change the vatican more than it changes him st. Peters square heaving with excitement last night when his church pulled back the red curtain and sprung him on the world. He used to be known as father jorge, now hes pope francis, but determined, it seems that these dizzy heights wont change him. Bowing his head and asking the people to pray for him then sharing the bus back home with his fellow vicars. We toasted him, the cardinal secretary of state toasted him then he toasted us and he simply said may god forgive you. laughter which brought the house down. In other words i hope you dont regret this later. Reporter the biggest cheer, of course, from his fellow latin americans. For a man with the common touch, yes, but no doctrinal pushover as tough on abortion or gay marriage or women priests as his bookish predecessor. Brown outside of rome, perhaps no group was more excited about the choice for pope than catholics in argentina. A short time ago i talked with Hugh Bronstein of reuters in buenos aires. Hugh bronstein, welcome. So 24 hours later, whats been the reaction there in argentina . Well, at first it was stunned silence and it gave way very quickly to jubilation. The fifthful in argentina really believe this is the right pope to do what needs to be done at the vatican to improve transparency and get back to the gospels. Brown theres been much attention to the new popes simple lifestyle, his work with the poor. How has that manifested itself in his life and work in argentina . Well, this is a soccercrazy country and when it came out yesterday that he is a cardcarrying rankandfile fan after sam lorenzo, one of the top five teams here in argentina people went nuts. Twitter went wild and it came out as well that he has a very unassuming kind of lifestyle. His apartment is very close to the neighborhood where the headquarters of san lorenzo. Is he takes the bus to work, if not the subway. On the bus and on the subway if the team did well the night before he talks with his friends his fellow commuters, if you will, about the triumphs or the disappointments of the san lorenzo football team. That puts him in very good said the here in argentina. Brown his appointment as pope reraised some long ongoing questions about the role of the church