THE PRESIDENT DOES NOT SEE
THAT A STAND ALONE ISSUE.
>> THANK YOU BLAKE BURMAN THE
WHITE HOUSE, FOR US HERE
GORDAN CHANG AUTHOR OF THE
COMING COLLAPSE OF CHINA
SAYING RENEWED PRESSURE WILL
NOT WORK ARE THEY READY FOR A
LONG TRADE WAR?
AGAIN THIS 200 BILLION
DOLLARS, THAT WAS TALKED ABOUT
THE WHITE HOUSE QUITE FRANKLY,
HAS TELEGRAPHED THAT VERY
QUICKLY, THAT IT WOULD BE 50
BILLION INITIALLY THEN MAYBE
ANOTHER 200 BILLION, WHAT DO
YOU MAKE OF.
>> IT CHINA NOT PREPARED FOR
LONG TERM STRUGGLING WITH
UNITED STATES CHINESE KNOW
THAT, THE ONLY WAY THEY CAN
WIN THIS TRADE WAR IS IF
THEYBLUFF PRESIDENT TRUMP
DOWN, BY THE WAY, NOT TRADE
WAR IT IS A TECH WAR TALKING
THEFT RUNS IN HUNDREDS OF
BILLIONS OF DOLLARS A YEAR, IF
YOU DON'T LIKE THE TARIFFS
CHINA, THEN JUST STOP STEALING
OUR STUFF!
DAGEN: WHAT ARE YOU LOOKING
FOR IN TERMS OF HOW AMERICAN
COMPANIES MANUFACTURERS DEAL
WITH THIS THE INCREASED
TARIFFS?
FROM RETAILERS, AND MAYBE THE
IMPACT IS NOT AS GRAVE AGENCY
SOME MIGHT THINK A LOT OF
THESE COMPANIES MAJOR DISCOUNT
RETAILERS THEY HAVE PRETTY
DIVERSE MANUFACTURING BASES
NOT LIKE, EVERY PRODUCT THAT
SAY DISCOUNTER SELLS IS GOING
UP 25% AUTOMATICALLY.
10, 12 YEARS AGO YOU WOULD SEE
CHINA THE SAME TODAY LOOK AT
HOUSE BRAND ABOUT THE REVERSE
IT IS ABOUT 90% ELSEWHERE, SO
SUPPLY CHAINS CAN MOVE, THE
WILL MOVE ELSEWHERE AS THEY
MOVED INTO CHINA STARTED
HAVE A REAL PROBLEM, AND THE
OTHER THING THAT I WOULD BE
WORRIED ABOUT, WOULD BE THE
TO CHINA.
>> GORDON I LOOK AT THIS
SITUATION, AND MARKETS DON'T
SEEM TO CARE THAT MUCH -- PAST
COUPLE DAYS BUT NEAR ALL-TIME
HIGHS U.S. STOCK MARKETS WHAT
THIS AND JUST SEEMS LIKE, FOR
LACK OF BETTER WAY OUT TO P IT
U.S. PRESIDENT TRUMP HAVE
HANDS THEY AREH HERE A LOT
MORE LEVERAGE LOOKS LIKE WHAT
IS GOING ON TARIFFS IS GOING
TO HURT CHINA A LOT MORE THAN
HURTING U.S. IN TERMS OF
MANUFACTURERS AND CONSUMERS
WHAT ARE WE MISSING HERE?
BUT SEEMS LIKE CHINA HAS BEEN
GETTING AWAY WITH THAT A LONG
TIME IS THERE RECOURSE AGAINST
THAT WHAT IS WHAT LEVERAGE
HAS, BECAUSE, FIRST OF ALL,
THEY DON'T HAVE LEVERAGE ON
TARIFFS, I MEAN LAST YEAR WE
IMPORTED 505 BILLION FROM
CHINA WE ONLY EXPORTED 130 OR
SO MEANS THAT THEY ARE GOING
TO RUN OUT OF BOOK LET'S THE
ONLY LEVERAGE THEY HAVE IS A
HOLD U.S. COMPANIES LIKE
APPLE, HOSTAGE, THAT IS REALLY
WHAT THEY ARE GOING TO DO BUT
YOU KNOW A LOT OF CHINESE
OFFICIALS REALLY THINK THAT IS
BAD IDEA FOR CHINA, BECAUSE
REALLY WHAT IT MEANS IS THAT
THE EUROPEAN COMPANIES
JAPANESE SOUTH KOREA,
EVERYBODY ELSE THEY ARE NOT
GOING TO WANT TO PUT THEIR
COMPANIES INTO CHINA IN THE
FUTURE AND I THINK YOU ARE
GOING TO SEE FOREIGN DIRECT
INVESTMENT IN CHINA REALLY
DECLINE PRECIPITOUSLY LARGELY
BECAUSE PEOPLE DON'T WANT TO
BE SUBJECT TO INTIMIDATION.
DAGEN: I WANT TO POINT OUT A
LOT GOES ON WONDER CHIN IN
TERMS OF MISINFORMATION
CAMPAIGNS OUT OF THE CHINESE
GOVERNMENT ABOUT AMERICAN
COMPANIES, YOU HAVE SEEN THIS
TIME AND AGAIN TO TRY TO DRIVE
BUSINESS AWAY FROM COMPANIES
ALREADY DOING BUSINESS THERE
IS A LOT THAT THIS --
ESSENTIALLY CONTROLLED
GOVERNMENT DOES, NOT JUST
STEALING INTELLECTUAL PROPERTY
BUT REALLY TRYING TO HAMMER
AMERICAN BUSINESSES, WHEN WE
GET IN A FIGHT WITH CHINA.
>> YEAH, APPLE HAS BEEN A
VICTIM OF THAT MARCH 2013,
VERY RECENTLY, NOW STARTING TO
SAY LOOK, YOU KNOW, APPLE IF
YOU WANT TO STAY IN CHINA YOU
WHICH IS REALLY HE EXTORTION
FOCUSED IN ON TIM COOK'S
COMPANY.
>> WE DON'T JUST LOOK AT TRADE
BACK END SEEMS AS THOUGH CHINA
ALSO A PLAYER HOW WE DEAL WITH
KOREAN PENINSULA STARTING IS
TO TINKER WITH THAT BECAUSE OF
WLOOJ TRADE WAR WHAT ARE
IMPLICATIONS LONG TEMPERATURE
AND MILITARILY.
>> IF YOU GO WITH PRESIDENT
TRUMP'S TWEET LAST FRIDAY EVEN
OF WEDNESDAY, HE PUT TWO
TOGETHER, SAYS OUR POLICIES
THINK PRESIDENT TRUMP SHOULD
BLAME POLICIES, THE REASON
CHINA HAS BEEN VILLAIN FOR
DECADES ON NORTH KOREA A
VILLAIN FOR DECADES ON TRADE,
SO YOU KNOW, BASICALLY, THEY
MIGHT HAVE YOU KNOW WHAT
PRESIDENT TRUMP DOES MIGHT
HAVE A MARGINAL EFFECT ON
BEIJING'S REACTION BUT LONG
TERM, YOU LOOK ABOUT WHAT THE
CHINESE ARE DOING ON BOTH
ISSUES, I DON'T THINK THAT
PRESIDENT TRUMP'S HAVING MUST
AFFECT ON --
>> MILITARY SPENDING CHINA.
>> O MAYBE SPENDING.
>> THERE IS A TREMENDOUS
AMOUNT THERE, AND IN THE
QUESTIONS WHY ARE THEY DOING
THIS, THEY WANT TO DO IT CASE
THEY WANT TO TAKE TERRITORY
FROM NEIGHBORS THEY WANT TO
CLOSE OFF GLOBAL COMMON SENSE
IN OPPOSITION WITH EVERYBODY
ELSE INCLUDING UNITED STATES
VERY BAD STORY FOR BEIJING
LONG TERM.
>> WHEN WE STARTED THIS
CONVERSATION, ABOUT WHAT IS
GOING ON, WITH TRADE, TARIFFS
AND WHITE HOUSE, EVEN STEVE
FORBES ON THE SHOW SAYING WE
ON CHINA, AT UNITED FRONT FROM
JAPAN TO CANADA AND MEXICO.
AND THAT WAS THE IS DISTURBING
ABOUT STEEL, ALUMINUM TARIFFS
TO BEGIN WITH DEAL WITH MEXICO
A HANDSHAKE DEAL NEGOTIATING
WITH CANADA THAT IS WHY WE ARE
WATCHING THIS RENEGOTIATIONS
OF NAFTA SO CLOSELY THERE WAS
-- DEAL FRIDAY --
>> IT IS A DEADLINE, IT IS
ARBITRARY DEADLINE ACCORDING
TO SOME SET BY THE WHITE HOUSE
AND OUR TRADE WITH THESE
ALLIES THAT IS LIKE SO
IMPORTANT TO MAKE SURE, THAT
WE GET EVERYBODY ON OUR SIDE,
AND WE CAN TAKE ON CHINA.
>> THAT IS ABSOLUTELY CRITICAL
DAGEN YOU KNOW YOU ARE ONE
HUNDRED PERCENT RIGHT ON THAT.
THE END OF JULY THAT WAS GOOD
THING, BECAUSE REALLY WHAT
HAPPENED THERE WAS FOR
EUROPEANS AGREED TO BUY MORE
SO I BOOENLZ MESSAGE TO CHINA
DON'T MESS WITH AMERICAN
SOYBEAN FARMERS BECAUSE WE
WON'T SELL TO YOU CHINA BUT WE