MARIA: THEY DON’T.
THANK YOU VERY MUCH.
MEANWHILE WHILE THIS IS ALL
HAPPENING BRAZILIAN PRESIDENT
MEETING WITH CHINESE LEADERS XI
JINPING TODAY IN BEIJING THERE
DISCUSSING THE WAR IN UKRAINE
AND AN AGREED-UPON TRADE DEAL,
LULA CALLING ON DEVELOPING
COUNTRIES TO WORK TOWARD
REPLACING THE U.S. DOLLAR WITH
OWN CURRENCY IN TRADE AND BRAZIL
AND CHINA STRUCK THAT DEAL TO
DITCH THE DOLLAR AND
TRANSACTION, LULA TOURING WHILE
WHILE WAYS INNOVATION CENTER,
THE HAPLESS FOUNDER OF THE
DECISIVE DECADE ON BOOKSHELVES
RIGHT NOW.
JONATHAN IS WITH US.
GOOD TO SEE A.
WE’VE BEEN TALKING A LOT ABOUT
THE DOLLAR STORY, I FIND IT VERY
CONCERNING.
BUT LET’S START ON LULA VIEWING
HUAWEI QUARTERS, WHAT DO YOU
THINK THAT MEANS FOR RESILIENCE?
>> HUAWEI AND BRAZIL IS A BIG
STORY I USE THIS IN THE DECISIVE
DECADE, IT HAS VERY BIG
AMBITIONS AND BRAZIL IN A
COUNTRY WHERE HAS NOT BEEN
BANNED SO EVEN AS THE U.S. HAS
BEEN SUCCESSFUL IN PUSHING
HUAWEI OUT OF COUNTRIES LIKE
BRITAIN AND AUSTRALIA, AND
BRAZIL YOU HAVE HUAWEI
EXECUTIVES TALK ABOUT THEIR
AMBITIONS TO MOVE THROUGH THE
ENTIRE VALUE CHAIN TO PUT BRAZIL
AND MODERNIZE THE INFRASTRUCTURE
AND ALSO TO PROVIDE ICT
ALONGSIDE OTHER CHINESE
COMPANIES SUCH AS AGRICULTURAL
MACHINERY, HUAWEI TO BECOME THE
BACKBONE OF THE COUNTRIES
INFRASTRUCTURE AND TECHNOLOGY IN
THIS IS BAD YOU DO NOT WANT THIS
AND BRAZIL, BRAZIL IS HALF THE
SIZE OF SOUTH AMERICA AND ALWAYS
BEEN PARTNER TO THE UNITED
STATES BUT TO SEE LULA TAKE THIS
DIRECTION IT IS EXTREMELY
PROBLEMATIC AND DANGEROUS FOR
U.S. DIPLOMACY AND WE CAN SEE
CHINESE DIPLOMACY IS HAVING A
FIELD DAY RIGHT NOW FROM THE
BROKERING OF A PEACE AGREEMENT
BETWEEN IRAN AND SAUDI ARABIA TO
HAVE A MACRON SHOW UP IN BEIJING
AND UNDERMINE THE ENTIRE SYSTEM
TO HAVING LULA CALL FOR THE END
OF THE DOLLAR-DENOMINATED TRADE
BETWEEN CHINA AND BRAZIL.
THIS IS WHAT IT’S LIKE AS CHINA
BEGINS TO CONVERT ITS ECONOMIC
POWER INTO THE PUBLIC POWER AND
TRY TO RESHAPE THE GLOBAL
ORDERS.
THIS IS ALWAYS GOOD TO BE A
GLOBAL CONTEST THAT IS SOMETHING
THAT I DEMONSTRATED CHINA’S
VICTORY WERE TO GIVE THE CHINESE
COMMUNIST PARTY NOT IN THE
ISLAND CHAIN TO THE INDO PACIFIC
BUT ALL AROUND THE PLANET LIVE
ECONOMIC RELATIONS THAT THEY’RE
TURNING INTO DIPLOMATIC AND THAT
GOES ACROSS THE ENTIRE WORLD.
MARIA: I WANT TO TALK ABOUT THE
APPLICATIONS OF THIS.
YOU SAID THAT HUAWEI WOULD
REPRESENT THE BACKBONE OF
INFRASTRUCTURE.
I WOULD GO ONE STEP FURTHER AND
SAY IT WOULD REPRESENT THE
BACKBONE OF SURVEILLANCE OF
RESILIENCE RIGHT NOW BECAUSE
HUAWEI IS ONE OF THE KEY TOOLS
THAT THE CCP USES FOR
SURVEILLANCE, ISN’T THAT TRUE.
>> CERTAINLY HUAWEI IS A KNOWN
QUANTITY BACKED BY THE CHINESE
STATE INVOLVED IN THE HUMAN
RIGHTS ATROCITY.
IT’S A PRETTY CLEAR STORY, SO TO
SEE IT SUCCEED IN BRAZIL WOULD
BE AN ENORMOUS BLOW TO AMERICA’S
POSITION IN THE WESTERN
HEMISPHERE.
WE HAVE TO WORK ON THAT CHINA’S
TRADE WITH BRAZIL IS DOUBLE OURS
THEIR INVESTMENT IS VERY
SIGNIFICANT WE DON’T HAVE A
LATIN AMERICA STRATEGY THAT IS
WORKING IN THIS GOES INTO THE
ENTIRE PROBLEM OF THE U.S. LACK
OF ENGAGEMENT IN THE EMERGING
WORLD AND MEANWHILE WE DON’T
REALLY TALK ABOUT THE BELTON
ROAD ANYMORE, CHINA HAS INVESTED
OVER $900 BILLION IN DIRECT
INVESTMENT IN CONSTRUCTION DEALS
SINCE 2005.
THEY ARE POURING A TOTAL OF OVER
$2 TRILLION IN OVERSEAS
INVESTMENT IN THIS IS PART OF A
CONCERTED STRATEGY TO BIND THE
CONTINENTS INCLUDING LATIN
AMERICA TO CHINA BRAZIL IS NOT A
MEMBER OF THE BELTON ROAD THE
SEVEN SOUTH AMERICAN COUNTRIES
BOLIVIA, ARGENTINA AND CHILE
THEY HAVE A VERY FOCUSED
STRATEGY AND WERE NOT SHOWING
UP.
MAJOR CHANGES IN YOUR STRATEGY
ARE GOING TO HAVE TO OCCUR TO
COMPETE ECONOMICALLY AND GET OUR
COMPANIES TO WIN MAJOR COUNTRIES
LIKE RIZZO.
AS A PROBABLY GOING TO NEED A
U.S. AND ALLIED SOVEREIGN WEALTH
FUND TO DEPLOY THE CAPITAL THAT
ARE OWNED BANKS CAN’T AND WON’T
DO FOR STRATEGIC LONG-TERM
OBJECTIVES.
IF THAT’S THE ONLY WAY WE’RE
GOING TO WIN THIS WE HAVE TO
COMPETE IN THE EMERGING WORLD
AND WERE NOT DOING IT IN OUR
COMPANIES CANNOT DO THIS ALONE
AND THE BANKS DON’T THINK
LONG-TERM.
WORKING HAVE TO GO ON ALL THOSE
FRIENDS.
MARIA: IT DOESN’T LOOK LIKE THIS
ADMINISTRATION WOULD DO
SOMETHING LIKE THAT’S A SOFT
APPROACH TO COMMUNIST CHINA AND
CHINA IS MOVING FORWARD AND
CONTINUING THE INVESTMENTS THAT
YOU’RE TALKING ABOUT WHILE ALSO
PUSHING BACK ON ANY PUSHBACK.
CHINA HAS SANCTIONED THE
CHAIRMAN OF THE FOREIGN AFFAIRS
COMMITTEE TEXAS CONGRESSMAN
MICHAEL MCCAUL AFTER HE LEFT THE
CONGRESSIONAL DELEGATION TO
TAIWAN TO MEET WITH TAIWANESE
PRESIDENT TSAI.
BEING SANCTIONED BY THE CHINESE
COMMUNIST PARTY IS A BADGE OF
HONOR READ WHAT ARE THE
IMPLICATIONS OF THE SANCTION
FROM BEIJING ON THE CHAIRMAN OF
THE FOREIGN AFFAIRS COMMITTEE.
>> THAT IS RIGHT AND THESE TO BE
EMPHASIZED THIS IS THE CHAIRMAN
OF THE HOUSE FOREIGN AFFAIRS
COMMITTEE THAT HAS BEEN SANCTION
BY THE PRIMARY ADVERSARY AND
THEY ALSO SANCTION FORMER
SECRETARY OF STATE MIKE POMPEO
AND THIS IS AN ADVERSARY STATE
HOSTILE RESUME IN ONE OF THE
BIGGEST IS THE BIGGEST LEADERS
IN CHINA AND TRY TO UNDERSTAND
THE SANCTIONING OUR SENIORMOST
OFFICIALS.
IF YOU DON’T HAVE A LONG-TERM
BUSINESS RELATIONSHIP WITH THAT
STATE THEN YOU’RE NOT GETTING
COLD WERE TO ECONOMIC ADDITION
GREATEST TIME FOR BUSINESS
LEADERS TO LOOK FOR THE EXIT AND
THIS IS A BUSINESS HOSTILE TO
THE UNITED STATES OF AMERICA AND
FEELS THAT HE CAN MAKE MOVES
LIKE THAT IN THE HOSTILE INTENT.
MARIA: IT’S INCREDIBLE TO SEE
THE CEOS TO CONTINUE TO DIG
DEEPER INTO THE CHINESE MARKET
THEY WANT TO SELL TO 1.4 BILLION
PEOPLE BUT THEY’RE NOT LIKE IT
IS IN THE SECURITY ISSUES THAT
YOU RAISE SO MUCH.
GO AHEAD JUMPING.
>> GOOD MORNING I AM FROM
NEWSWEEK.
I COULD NOT AGREE MORE WITH WHAT
YOU SAID BUT I WONDER IF THERE’S
A SILVER LINING IN TERMS OF
ECONOMIC DECOUPLING FROM CHINA
AND I WONDER WHAT YOU MAKE FROM
THE ARGUMENT OF MICHAEL’S TRADE
WAR THEY ACTUALLY ARGUE THAT THE
DOLLAR IS TOO STRONG VIS-À-VIS
CHINA WHICH LEADS TO ALL OF
CHINESE INVESTMENTS COMING HERE
IN AMERICAN WORKERS IN RELATION
TO CHINESE WORKERS TO A DEGREE
HURTING OUR ECONOMY AND THE
SILVER LINING THAT COULD BE
FOUND IN OUR DECOUPLING FROM
CHINA DOMESTIC FRONT.
>> I THINK THERE’S GOING TO BE A
LOT OF SILVER LINES TO
DECOUPLING AND YOU HAVE TO
REBUILD THE UNITED STATES TO GET
CAPITAL OFF OF KNOWLEDGE SHE’S
IN THE U.S. FOCUSED INVESTMENT
INITIATIVE TO REBUILD THE
INDUSTRIAL BASE AND THAT WILL BE
A BENEFITING AMERICAN WORKERS IN
ALL SORTS OF STRATEGIC
INDUSTRIES AND THAT SHOULD
BENEFIT FROM THIS AND AT THE
SAME TIME AND NATURE OF THE
DOLLAR IS A RESERVE CURRENCY
IT’S INCREDIBLY IMPORTANT WE
WANT TO KEEP THAT AND THIS COULD
BE A BATTLE FOR GLOBAL TRADE AND
IF CHINA IS ABLE TO SUCCESSIVELY
TURN THE TREATY RELATIONSHIPS
INTO THE RELATIONSHIPS THAT WILL INCREASE THE PROPORTION OF THE
INCREASE THE PROPORTION OF THE
R&B IN GOBLE TRADE STILL NOT
THAT MUCH IS 60% OF GLOBAL
TRANSACTIONS AND R&B IS ABOUT
2.5% LABEL CLOSE CAPITAL ACCOUNT
IT’S NOT LIKE THEY CAN MAKE THIS
ALL THE WAY BUT I THINK WE’LL
HAVE TO TAKE IT SERIOUSLY WHEN
WE SEE BRAZIL WHICH REALLY
MATTER TO GLOBAL TRADE INTO
INTERNATIONAL DIPLOMACY.
WE WANT BRAZIL ON OUR SIDE WE
WANT INDONESIA AND NIGERIA AND
OTHER INTERSTATES IN MAJOR
EMERGING REGIONS TO BE MORE
TOWARDS THE U.S. SIDE THAT WILL
REQUIRE CONSOLIDATING ALLIANCE
TO ECONOMIC AND MILITARY POWER.
WE ARE A MILITARY ALLIANCE
SYSTEM THAT SPANS EUROPE TO ASIA
AND THE MORE WE DEEPEN THE TRADE
TIES AND PUSHED CHINA OUT OF THE
ALLIANCE THE MORE LEVERAGE AND
PULL WILL HAVE WITH THE EMERGING
WORLD BUT WERE NOT SEEN A GLOBAL
ECONOMIC STRATEGY FROM THE
UNITED STATES.
THAT’S EXACTLY WHAT WE NEED
THERE WILL BE MANY BENEFITS IF
WE CAN GET SERIOUS AND STRATEGIC
ABOUT THE WHOLE PICTURE.
MARIA: I’M GLAD YOU SAID THAT,
60% VERSUS 2% ON THE YUAN.
I ASKED YOU IF YOU WORRIED ABOUT
THE DOLLAR AS AN INVESTMENT.
>> JONATHAN, ADAM JOHNSON,
QUESTION FOR YOU AND I WANT TO
PUSHBACK ON THE NOTION THAT THE
CHINESE YUAN COULD CHALLENGE OR
REPLACE THE U.S. DOLLAR.
I THINK THE CURRENCIES ARE ABOUT
CONFIDENCE AND HOW COULD THE
REST OF THE WORLD HAVE
CONFIDENCE IN REACHING, CHINA
THAT SEEMS TO BE UNDERMINING
OTHER COUNTRIES ADDED SOME
BENEFIT INTENDS TO BENEFIT
ITSELF SPIRIT CRYSTAL I’M NOT
SAYING THIS COULD REPLACE THE
DOLLAR AND SAYING THE OPPOSITE 60% VERSUS 2% WHICH IS A LONG
60% VERSUS 2% WHICH IS A LONG
WAY TO GO, RUNNING DEFICITS
ALLOWING US TO HAVE THE POSITION IN THE DESTINATION FOR FOREIGN
IN THE DESTINATION FOR FOREIGN
PURCHASES OF ASSETS.
AND IF YOU DO OFFER THE ALLIANCE
SYSTEM THAT’S ONE THING BUT
CLOSING DOWN THE DEFICIT WITH
CHINA AND OTHERS BECAUSE YOU
DON’T WANT THEM TO HAVE A
SURPLUS THAT THEY CAN INVEST
INTO OTHER THINGS.
AND CREATE GLOBAL INFLUENCE.
BOTTOM LINE I DON’T THINK WE
GOING TO SEE THIS HAPPEN IN THE
NEAR-TERM ANY KIND OF
REPLACEMENT OF THE DOLLAR BY THE
R&B BUT IF PEOPLE WERE TAKEN TO
SEE WHAT YOU JUST SAID THAT
CHINA’S REGIME UNDERMINING ALL
SORTS OF THINGS AND HAS
NEFARIOUS ACTIVITIES I THINK THE
INTERNATIONAL ECONOMY WILL LOOK
VERY DIFFERENT WHEN YOU CEO
DELEGATIONS INVESTMENT GOING
INTO CHINA IN LULA AND MACRON
THESE ARE PEOPLE THAT ARE NOT
TAKEN AS SERIOUSLY THAT IS THE
PROBLEM THEY’RE NOT TAKEN THE
NATURE OF THE REGIME SERIOUSLY.
IF THEY DID THEN ECONOMIC POWER
WOULD BE SIGNIFICANTLY SMALLER
AND IT’S ALL GOOD BE DRIVEN BY
TRADE ANY REAL ADVANCEMENT OF
THE R&B IS GOING TO BE FOR THEM
BY CHINA’S TRADING
RELATIONSHIPS.
THAT’S A GAME WHERE WERE NOT
DOING WELL WHEN YOU LOOK AT
BRAZIL, CHINA THEY TRADE
$150 BILLION A YEAR IN RETREAT
75 ASKING TO BE TRUE ACROSS THE
EMERGING WORLD ARE NOT PLAYING
GAMES.
MARIA: THE REPUBLICANS ARE
TALKING MORE ABOUT THE FAVORED
NATION STATUS THAT CHINA HAS IN
TRYING TO REMOVE THAT.
WE’LL SEE IF THE TRADE SITUATION
CHANGES IN THE U.S. USES THAT AS
A LEVERAGE POINT I WANT TO POINT
OUT PNC FINANCIAL HAS REPORTED
BETTER-THAN-EXPECTED EARNINGS
REVENUE IN LINE WAITING ON J.P.
MORGAN AS SOON AS WE GET THOSE
NUMBERS WERE GET A RIGHT TO
JURY, WHILE WERE WAITING ON GPM
LET’S GET YOUR TAKE ON THE
LEAKED PENTAGON DOCUMENTS
REPORTING THAT CHINA APPROVED
LEGAL AID FOR RUSSIA FOR THE WAR
ON UKRAINE EARLIER THIS YEAR AND
PLAN TO DISGUISE THE MILITARY
EQUIPMENT AS CIVILIAN ITEMS FOR
DIVIDED ADMINISTRATION CLAIMS
ARE STILL HAVING SEE THE
EVIDENCE THAT HAVEN’T
TRANSFERRED WEAPONS TO RUSSIA
AND IS THERE ANY QUESTION THAT
CHINA SUPPORTED RUSSIA ON ITS
WAR ON UKRAINE.
>> WE KNOW BEIJING IS PUTIN’S
BIGGEST BACKER THEY HAVE BEEN
SUPPORTING THAT FROM THE
BEGINNING RUSSIA CHINA RELATIONS
FROM DEEPENING OF THEIR OWN
STRATEGIC ORDINATION FOR TEN
YEARS SINCE PUTIN SEES CRIMEA IN
BOTH THE MILITARY ISLANDS IN THE SOUTH CHINA SEA WITHIN THE SAME
SOUTH CHINA SEA WITHIN THE SAME
SPAN OF TIME.
THEY KNOW EXACTLY WHAT THE DOING
PLENTY OF CHINESE SUPPORT
POLITICAL BROKE THE STORY OF
ASSAULT RIFLES AND BODY ARMOR
COMING FROM CHINA’S LARGEST
STATE OWNED COMPANIES IN THE WAY
TO BREAK THE ACCESS IS TO START
GOING AFTER THE CHINESE
COMPANIES AND BANKS THAT ARE
CONSOLIDATING THE RUSSIA CHINA
RELATIONSHIP.
UKRAINIANS ARE MAKING A LIST
SHOWING US THE COMPANIES THAT
ARE SUPPORTING RUSSIA’S WORK WE
JUST NEED TO HIT HIM WITH THE
TARGETS THAT WE CAN DO THROUGH
ECONOMIC SANCTIONS.
WERE NOT GOING AFTER THE CHINESE
BANKS YET, THAT’S WHAT WE NEED
TO BE DOING. MARIA: THERE WERE ENABLERS TO
MARIA: THERE WERE ENABLERS TO
THE NASIS ACTIVITY AND I WONDER
IF CORPORATE AMERICA IS GETTING
THIS AND UNDERSTATING THE
NATIONAL SECURITY ISSUES, YET
THE WOMEN’S TENNIS ASSOCIATION
PLANNING TO RETURN TO CHINA THIS
FALL.
THERE INDEED A BOYCOTT STARTING IN 2021 OVER CONCERNS OF THE
IN 2021 OVER CONCERNS OF THE
SAFETY OF TENNIS STAR, ACCUSING
OF SEXUAL ASSAULT EVER SINCE
DOING SO SHE IS NOT BEEN SEEN IN
PUBLIC VERY MUCH.
I GUESS SHE’S ANOTHER ONE THAT
DISAPPEARED.
>> EVENTUALLY THEY’RE ALL
LOOKING FOR THE WAY BACK INTO
THIS MARKET AS YOU SAID IS A
BILLION PEOPLE AND THAT’S HOW
MANY, MANY AMERICAN BUSINESS
PEOPLE IN ASSOCIATIONS AND
COMPANIES LOOK AT THIS, THIS IS
THE NATURE OF THE CONTEST THAT
WERE GOING TO ONE WHERE WE HAVE
TO RESTRAIN OURSELVES FROM
SELLING THE COMMUNIST THE ROPE
FROM WHICH WILL HANG US.
LENIN SAID THAT HE WASN’T WRONG
IT’S GOING TO BE CHINA WERE IN THE PROCESS OF DOING THAT WE
THE PROCESS OF DOING THAT WE
HAVE TO STOP AND AS LONG AS WE
ENABLE THE RICE TO CHINA IT WAS
ACCEPTED IT WITH OUR TECHNOLOGY
AND OUR CAPITAL IN OUR MARKETS
AND THAT’S HOW WE GOT THE
SUPERCHARGING FOR PEOPLE’S
REPUBLIC OF CHINA WE CAN STILL
TAKE THAT AWAY AND THE WINDOW IS