Information to an entity, whether thats a computer or a person. If you have an assistant, that assistant knows a lot about you. Whether its a humana sis tenant or a computer assistant. And to have them help you, you need to be able to give them some information. Now whats really important, though, is that the communications are secure and private and that its not sold, right to the highest bidder. And so we were very clear when we did our acquisition with google about that. And what we were what was going to be different about our business model. Which is we sell products, not apps. We dont sell data. And so you have to be really worried about the data that goes, or where it goes, whats done with it but we try to be very transparent, you know, about what we do and how we do it. To earn trust. Rose we conclude this evening with point and shoot, a new documentary with Matthew Vandyke and Marshall Curry. I was first 4 by 7 foot with a small circle in the ceiling for light. You pace back and forth. You try to sleep at night but occasionally you hear people being tortured. You dont know when your night is coming, i trimmed down my fingernails and toe nails so they couldnt rip them out. You rehearse what you will say during interrogation, you pace, you sing songs to yourself, whatever it takes. Rose the president in the china, the internet of things and Young Americans fighting in libya when we continue. Funding for charlie rose is provided by the following rose additional funding provided by and by bloomberg, a provider of multimedia news and Information Services worldwide. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Rose president obama arrived in china monday morning for a threeday visit. Regional leaders have gathered in beijing for the annual ash Pacific Economic corporation summit. Tomorrow on wednesday president obama and chinese president xi jinping will engage in a series of oneonone meetings. The New York Times reports the visit will capture the complexities of the United Stateschina relationship, the tensionses of a rising power confronting an established one. As well as a promise that the worlds two largest economies can find common cause on issues like Climate Change. From china the president will travel to burma and then to australia before returning to washington. Joining me now from washington is edward luce, the chief u. S. Comment tater for the financial times. His latest piece is called china is no refuge for obamas woes. From uc berkeley Orville Schell of the asia society joins us, he has a piece called china strikes back. It recounts his september trip to china with president jimmy carter. And with me in new york, cheng li, the director of the John L Thornton china center at the brookings institution. Im pleased to have all of them here on this program. I begin with you. Tell me what is the status of u. S. China relationships today . Uncertainty because theres a different direction, china and u. S. China relation can go. So it is a critical time. Now we know that china is a paradox of hope and fear. Probably more so today than any time in the past 25 years. And on the hope side, china Just Launched very strong anti corruption. And also wants to adopt a very ambitious market reform. And they also talk about the world law. But at the same time, the political control can control media, also reached the peak. And that is a serious concern about the direction china is going. So at this time, that the apec meeting occur and president after five years. Rose ed, tell me where you think the relationship is. And where the president is reflecting on your column today, going to china. Well, i was on the trip, the white house trip in 2009 when obama, president obama made his first visit to china. And then of course he was very much at the height of his domestic standing. The democrats controlled both changes of congress. And obamas global standing, he just received the nobel prize. And global standing was really at its pinnacle. And the chinese under a different president then you had jintao, a much more low key character than xi jinping treated him pretty shabily. He came offering a big g2 level of cooperation for the u. S. And china to cooperate tackling global warning, international terrorism, the aftermath of the 2008 financial meltdown. And china really didnt want to hear any of this. It didnt want to step up to the plate. And it kind of spurned obama and treated him, as i say, not particularly well given how warm the president s overture was. Well, fast forward to now, exactly six years later, and president obamas domestic standing is, of course, at a low point following the midterm elections last week. The relationship as you quoted at the beginning of this is a lot more complicated. China under xi jinping is a lot bolder and a lot more ambitious than it was under hu jintao and his predecessors. And i think obama goes very much as the weak leader who is on the decline, whos got two years left. But whose party is out of power in washington. And xi jinping, as the most powerful president since ding jaw ping probably so, weve got two very, very different positions for the leaders. And a much more complex agenda. Xi jinping wants to develop what he calls a new great power relationship. And this is something that makes president obama but america in general feel fairly uneasy. I wouldnt be hugely optimistic that president obamas leverage in this context is going to be very big. Im sure xi jinping will be polite, will roll out the red carpet at the apec summit thats taking place there. Will go reasonably well. But i dont think this is the kind of situation where president obama is going to be a successful demander. Rose orville . So much has changed as ed pointed out, since obama was last there. On the one hand we have a tremendous shift in the real power relations between both asia and the United States and china and the United States. But i think even more of an impediment is chinas sense that at last it has kind of arrived. And it does no longer as Deng Xiaoping bid them to keep their heads down and bide their time so, there is an attitude that has shifted dramatically. Which means a lot of the old tool kit that the United States usually brings to bear in the relationship such as pressure, is not operable any more. And i think really whats missing despite all the protestations on both sides that there is much common interests shared, and we really should find a way to get together, to wit xi jinpings notion of a new kind of big power relationship. I dont detect a tremendous amount of willingness to really hunker down, mantoman in a congenial way to solve problems. We see much more sort of suspicion about the motives of each. And so i would have to say that the climate is not terrific for the kind of breakthrough that i think people are very nostalgic for on both sides, from the days of kissinger, nixon and even jimmy carter who you will recall in 1979 engineered the rerecognition of china and the normalization of diplomatic relations. Rose i want to come back to both those points. And point out also that this comes after xi jinping had just seen the japanese Prime Minister abe, he has seen vladimir putin. So hes stretching his connections. Sure. Rose to other power centers. But in chinas mind, and xi jinpings mind, that the u. S. China partnership is the most important bilateral relationship in the 21st century. China cannot afford not dealing with the relationship in the right term. So they have to emphasize heavy emphasize on the u. S. China relationship, they believe china reconciled the relation with russia, largely to have the leverage to deal with the United States. China also believes that with japan, it has backing of the United States. So therefore, u. S. Is the real power that can make a difference in the chinese perspective. So xi jinping wanted to improve that relationship, especially see that opportunity. A person to person relationship. Xi jinping has emerged as a strong leader. But at the same time he also cares u. S. Trem lus tremendously. He is not antiu. S. Person as some people believe. I can give evidence. First, he has a lot of american friends. And also, he said to the chinese public recently he loves hollywood movies, he loves american novels, and he loves sports, and the n. B. A. His daughter studies at harvard, to finish her four year undergraduate training in the United States at harvard. And his wife has been heavily engaged with bill gates foundation. Its prevention, Tobacco Control and et cetera. These are really show that the he want to have constructive, very friendly relationship with the United States. But at the same time, on there is concern about the u. S. Containment against china, want to pull china down. Sow has to react, respond to that kind of concern. Rose is that based on his if he believes do you think its him or is it the army that believes that the United States wants to contain it . Well, the u. S. Want to contain china, its wide spread spentment sentment in china. Not just with the ministry, not just with the leader, but also the chinese public in general. Now how deep it is unclear. But its widely spread, the sentiment. Im always surprised by that. I mean we mentioned earlier here that china feels like its arrived and wants to be recognized as an equal with the United States. And would seem to me that that would give confidence to the relationship. One thing, charlie, if i may, i think that often we dont appreciate that in this yearning that china has for sort of global standing and to gain the respect of the world, that underlying our relationship with china, indeed all of the western world, is completely different political systems and different values. And this makes it very, very difficult for the average american or european who is just in london and oxford, to really respect china in the way that china wants to be respected. And i think we, at one point, did succeed in sort of putting the different political systems and values to one side and getting on with the questions of common interest. Kissinger, nixon did it. Carter certainly did it he had a real lovefest with dung xiaoping, and now this may be sort of the bitter prodginy, the different political systems in our values continue to grate and mitigate against us really feeling comfortable with each other and affording each other the kind of respect which i think china historically has worked tremendously hard to attain. And for whom it matters a great deal. Rose ed, is it possible that the president will say look, i may not be able to do much domestically over the next two years, but certainly there was a whole range of Foreign Policy challenges and opportunities. Yes, i do think that. But dont forget that, you know, the central plank of president obamas Foreign Policy, perhaps his legacy, the thing he most wants to be his legacy is the pivot to asia. Which he announced, well, which Hillary Clinton then secretary of state announced in president obamas first term. And the chinese, even before xi jinping took on the top job, the chinese see this as a thinly veiled u. S. Veiled u. S. Strategy of u. S. Containment. And xi jinping has been more explicit about seeing it as such. So part of president obamas pivot to asia, its not just shifting military resources to the pacific region, the pentagon sort of rewaiting there, away from the transatlantic presence. Its also the economic initiative, the Transpacific Trade Partnership which president obama wants to really push ahead on this asia trip. And the tpp has got 11 countries in it. But one of them isnt china. China has not been invited to join the tpp. Japan is in it, australia is in it, south korea is in it and so forth. So its going to be quite hard, i think, with that kind of deep suspicion that there is a u. S. Ensierk encirclement going on. Even under what is perceived to be a fairly weak president , its going to be quite hard for that president , for president obama to say look, lets cooperate on isis or on, you know, shoring up the Iraqi Government or persuading iran to conclude a nuclear deal. You know, these things cant be compartmentalized. Rose isnt china continuing to buy iranian oil . It is, indeed. And it has very different interests in terms of iran than the u. S. Does. Of course, there is another pivot to asia going on. And thats the russian pivot to asia. That is a very close friendship between, well, a very close relationship, at any rate, between president putin and xi jinping. Im sure your viewers would be aware that one of the best selling books in china right now is called putin the great. Hes seen as something of a model, as a hero, as somebody that will stand up for to the u. S. And stick up for your national agenda. And china sees a lot of commonality in that perspective. So i think this sort of qlim at for obama to say lets Work Together on myanmar, et cetera, is not as propitious as he might hope. Rose so what should the president do . The president does end up in china with a limited number of or the of prospects for major cooperation. One paradox is north korea. Because i think the chinese, you dont need to get more than one glass of wine in a chinese friend or diplomat to hear them just be as expass rated with pyongyang as the americans are. So that i think is kind of a hopeful area. Climate change has been, you know, infinitely retreating horizon of hope. Everybody, ever since obama came into office had hoped that the u. S. And china would be able to really have a major collaboration. And china is doing a good deal on this front in a sort of patchwork piecemeal way. But washington is so bollocked up it is hard to know how that will happen. And many states like california have very ambitious and very active Climate Change collaborations with china. And i think the subnational level gets more hopeful on this front. But of course thats not going to help obama much while hes in beijing. What might come out of this . I think the Economic Cooperation will be a major outcome. I think you cannot imagine the International Economic integration could, you can exclude china or the United States. So therefore, the number one economy and number two economy have to cooperate together. Now they compliment each other, that the United States want china investment. They have money, which would create a job. At the same time, u. S. Company can access china because the open the Service Sector which includes public health, education, logistics, green consumption and particularly the Pollution Control Technology and product. United States Company have leverage in this area. So therefore, there is tremendous room for cooperation. Environmental protection, energy, antiterrorism, in all these areas there is a tremendous room for development. Obama Just Announced that the United States will offer chinese businessman and visiters five to ten years visa. This is extremely welcome in china. This is a good sign that the u. S. And china want to cooperate on the economic front. But also, beyond the economic exchange, but also i will mansion the values, to a certain extent there are differences in the values but also shared values or universal values such as rule of law. When the time announced in china there was no middle class, even when i visited in 1990, early 1990s there was no middle class. But now middle class is changing china in a profound way. In a moment, the demand is for a safe environment. Rose thank you very much, thank you, ed, great to see you, thank you, orville, thank you, cheng li, well be right back. Stay with us. Tony fadell is here, the founder and c. E. O. Of nest, the companys revolutionizing how we use unloved products in our home. These include thermostats, smoke detectors and more. Google bought nest earlier this year. They paid 3. 2 billion, it is said. That was previously at apple where he lead teams and created the ipod and iphone. He also authored more than 300 patents. Im pleased to have him here at this table for the first time. Welcome. Well, thank you, charlie. Its great to be here. Rose give me the sense of where you think nest will go. So rses explain nest to me. So what is nest . Well, it was born out of the idea, really, of looking around the home at these products that we have been using for years. Theyre really important products like thermostats and smoke alarms. And saying they havent been really changed since i grew up. And it was like why is this . So when i was building a house in lake tahoe and designing it for my family, i wanted to be the greenest, most connected house. And what was really what was really strange was i was still could buy these products, but they were more expensive than an iphone or ipod at the time. And they had nowhere near the capabilities. And i was like theres something wrong here. And so i said why dont we go look at taking the technology we know of in these other connected products like a smart phone and lets reinvent the products that are so important in our lives and homes. Rose so how are they so whats the end product . Sol, well, first one is a thermostat. So it iss called the nest learning thermostat. And we made it look beautiful first, first of all. And the reason being su put it on your wall. You care about the art you put on your wall, the furniture. Why should you have a plastic grain box that you dont even know how to use. Rose right, right. And so that was first make it beautiful so people made