This is part two of a series on the U.S. Democratic Party debate in Iowa that took place on December 4. A fairly large chunk of time was spent talking about China. The full transcript can be found here. Note that "Norris" "Inskeep" and "Siegel" are the moderators. All other statements being made are from candidates.

NORRIS: Senator Obama, and then Senator Gravel. Senator Obama first on this issue of Chinese toys.

SEN. OBAMA: As I said before, the problem is that we are not using the power that we have. And we just have — I can't amplify this point enough. Right now, laws with respect to China are being made in part with the interests of Wall Street in mind and special interests who are manufacturing in China — used to manufacture here in Iowa, now are manufacturing in China, are shipping the goods back here and taking advantage of low — cheap labor and lower environmental standards.

We have to have a president — and this is part of the reason I'm running for president, is to give a voice to American workers. I believe in trade, and I think trade can strengthen America. And I want, by the way, Chinese workers and consumers to benefit. That's good for our long-term security. But I don't want every single trade decision to be looked at through the lens of does this increase corporate profits as opposed to is it good for U.S. consumers and U.S. workers.

NORRIS: Senator Gravel, and then Steve has a question.

MR. GRAVEL: Yeah, Michele, I want to take you to task right at your first rhetoric, and that was this great, tremendous —

NORRIS: I believe it was a question.

MR. GRAVEL: Right. The tremendous increase in their defense. They're only 10 percent of American defense. They haven't had a tremendous increase. Ten percent of our defense.

And I want to take all of them to task. Clearly, none of them are running for China — president of China — because this amount of demagoguery is shameful.

Here, the Chinese people have a problem. And when we continue this rhetoric of beggar thy neighbor, where our interests always come first, there should be the interests of human beings, the interests of human beings.

NORRIS: Senator Gravel, thank you.

MR. GRAVEL: Because when you have a foreign policy that's beggar thy neighbor, we all become beggars. And so when they talk about the currency of China, what about the — what manipulations we do? What about the American companies that dump things abroad?

REP. KUCINICH: Either buy America or bye-bye America. We have to recognize that, and a Kucinich administration will rebuild American industry. And while I'm listening to this debate right here, I'm the only one up here who voted against China trade.

I'm saying that it is critical that we rebuild America's industry, that we not get in an arms race with China, that we have new trade laws based on workers' rights, human rights, environmental quality, that we take a new direction with respect to environmental policy, getting China away from nuclear, coal and oil.

I mean, we should be able to have solid relations with China, but we got to get our own house in order, stop the speculation on Wall Street and stop Wall Street from moving our jobs out of this country. And that's what the China trade vote was all about.

INSKEEP: But Senator Obama, is that the trade-off, that people will have to pay higher prices if we do what you propose; and that's worth it, in your view?

SEN. OBAMA: I actually believe that China will modify its behavior if we actually are tough in our negotiations. Look, we are the biggest market for China. They can't afford to just say, "See ya later." They're going to have to sell here. And if we tell them you have to meet certain safety standards, that you have to enforce certain labor and environmental agreements, they will meet them.

Now, could there potentially be some higher costs in the front end? Probably. But I guarantee you I don't meet a single worker in Iowa who's been laid off who says, "I wouldn't rather pay a little bit more for sneakers at Wal-Mart but still have a job."