LIZ: OKAY.
THE DOW IS DOWN 710 POINTS RIGHT
NOW, AND SOME OF IT HAS TO DO
WITH SOME QUESTIONS AND
CONFUSION ABOUT THIS TRADE DEAL,
THIS TRADE TRUCE, BUT THERE IS A
LITTLE BIT OF CLARITY ON AT
LEAST ONE POINT.
CHINA IS APPARENTLY FOLLOWING
THROUGH ON AT LEAST ONE OF THE
PLEDGES THAT IT MADE AT THE G20
DINNER WHERE PRESIDENT TRUMP AND
PRESIDENT XI JINPING BROKE
BREAD, AND THIS IS A BIG ONE.
ACCORDING TO A GOVERNMENT
DOCUMENT RELEASED BY CHINA, A
FEW DOZEN PUNISHMENTS WILL BE
METED OUT FOR INTELLECTUAL
PROPERTY THEFT.
THIS MATTERS TO PRESIDENT TRUMP
A LOT.
AMONG THEM, VIOLATORS WOULD BE
BANNED FROM ISSUING BONDS OR
OTHER FINANCING TOOLS.
THEY WOULD ALSO BE RESTRICTED
FROM GOVERNMENT FINANCIAL
SUPPORT, FOREIGN TRADE,
REGISTERING NEW COMPANIES OR
AUCTIONING LAND.
THAT'S NOT ALL.
THE CHINESE GOVERNMENT SAID IT
WOULD POST VIOLATORS' NAMES TO
ITS WEBSITE.
LITTLE PUBLIC SHAMING THERE.
SCOTT McNEALY, FOUNDER OF SUN
MICROSYSTEMS.
YOU HAVE DONE ENOUGH BUSINESS
WITH CHINA, IN CHINA.
DO YOU BELIEVE THE CHINESE ON
THIS AND WILL IT STOP THE
CHINESE FROM STEALING U.S.
COMPANIES' PROPRIETARY IDEAS AND
TECHNOLOGY?
>> IT MIGHT SLOW THEM DOWN FOR A
LITTLE BIT, BUT I REALLY THINK
THEY WANT TO SEE IF THEY CAN
OUTLAST, I MEAN, WHAT I WOULD
GUESS THEY ARE PROBABLY DOING IS
THEY WILL TRY AND OUTLAST THE
TRUMP ADMINISTRATION, THEN GO
BACK TO THEIR OLD WAYS.
THERE'S NO QUESTION, YOU KNOW,
IN AN ECONOMIC WAR, THEY ARE
OPERATING UNDER VERY, VERY
DIFFERENT RULES OF ENGAGEMENT
THAN WE ARE.
IT'S NOT FAIR ENGAGEMENT.
AND IT MADE SENSE AS CHINA WAS
DEVELOPING AND EVOLVE
DEVELOPING AND EVOLING ALL THE
REST OF IT.
OVER THE PAST 20 YEARS, I DON'T
KNOW ONE CEO WHO ISN'T
FRUSTRATED BY BOTH ARMS TIED
BEHIND THEIR BACK AS THEY HEAD
INTO THE CHINESE MARKET.
OVER THE LAST 20 YEARS, WE HAVE
BEEN TRYING TO NORMALIZE THE
RULES OF ENGAGEMENT.
THEY DON'T WANT IT TO HAPPEN, WE
DO.
THEY HAVE BEEN KIND OF GRIN
HUGGING US ALL THE WAY ALONG,
AND NOW TRUMP IS ACTUALLY THE
FIRST ONE TO STEP IN AND BE
SERIOUS ABOUT THIS.
YOU MAY NOT LIKE HIS STYLE, IT
MAY NOT PROVIDE FOR FACE-SAVING
AND THE CHINESE GOVERNMENT HAS
SOME VERY, VERY DELICATE
CHALLENGES THEY HAVE TO MEET
THEIR 7% GDP GROWTH GOALS AND
ALL THE REST.
THEY ARE THE SECOND LARGEST I
THINK ECONOMY IN THE WORLD NOW
IF I'M NOT MISTAKEN.
LIZ: THEY SURE ARE.
>> TREATING THEM LIKE AN
UNDERDEVELOPED, YOU KNOW, THIRD
WORLD NATION ISN'T NECESSARILY
THE FAIR AND APPROPRIATE THING
TO DO.
LIZ: ON THAT POINT, WHAT DO YOU
MEAN BY THAT?
EVERYBODY HAS GIVEN THE CHINESE
BREAK AFTER BREAK AND FINALLY,
PRESIDENT TRUMP CAME IN AND WAS
REALLY ONLY RESPONDING TO
DEMANDS AND COMPLAINTS BY THE
BUSINESS COMMUNITY HERE IN THE
U.S.
HE DIDN'T HAVE PROBLEMS WITH THE
CHINESE.
HE'S DONE GREAT BUSINESS WITH
THE CHINESE ON HIS PRODUCTS, AND
IVANKA HAD PRODUCTS THERE.
HE LOOKED AT THIS AND SAID OKAY,
LET ME TRY AND FIX THIS, AND
THEY WEREN'T DOING ANYTHING
UNTIL HE CAME IN.
SO I GUESS THE EXPERIENCES THAT
YOU'VE HAD WITH THE CHINESE,
WHAT WAS MAYBE AMONG THE WORST
AND HOW DO YOU FIX SOMETHING
LIKE THAT?
>> WELL, AT THIS POINT, I DO A
LOT OF ADVISING TO COMPANIES,
SMALL AND EMERGING AND GROWING
COMPANIES.
DON'T EVEN BOTHER, GO ELSEWHERE.
IT'S JUST TOO HARD.
OR THEY'LL JUST, YOU KNOW, TAKE
YOUR TECHNOLOGY, RUN WITH IT AND
OUTDO YOU.
SO IT'S VERY, VERY DIFFERENT
THAN, SAY, 35, 40 YEARS AGO.
1982, WHEN WE STARTED AND GOT
INTO CHINA, WE HELPED BUILD THE
CHINESE INTERNET.
NOW IT'S A VERY, VERY DIFFICULT
MARKET TO CRACK.
ASK TWITTER AND FACEBOOK.
THERE'S A LOT OF -- YOU HAVE TO
BE A JOINT VENTURE.
WE DON'T FORCE PEOPLE TO BE A
JOINT VENTURE TO DO BUSINESS
HERE ACROSS THE BOARD.
IT BECOMES VERY, VERY -- VERY
COMPLICATED.
THE BARRIERS ARE NOT JUST IP
STEALING, THERE'S JUST NOT
TARIFFS BUT THERE'S ALSO BIG
RULES ABOUT HOW YOU CAN PLAY
THERE.
THE RULES OF ENGAGEMENT ARE JUST
NOT THE SAME.
I BELIEVE IT IS TIME WE START
TRYING TO LEVEL THAT AND MAKE IT
FAIR AND EVEN, AND THE RIGHT WAY
TO DO IT IS FOR THEM TO
ELIMINATE THEIR BARRIERS,
TARIFFS, ALL THE REST OF IT.
IF THEY WON'T, YOU GOT TO DO
SOMETHING.
WE WOULD LOVE TO DO IT IN A NICE
CALM FACE-SAVING WAY BUT IT
HASN'T BEEN WORKING.
LIZ: WELL, THERE IS ONE THING
THAT'S MOVING SLIGHTLY HIGHER
RIGHT NOW AND IT'S BITCOIN, UP
ABOUT 42 BUCKS.
YOU ARE AN ADVISER, AS YOU SAID,
BUT TO CRYPTO MINERS, AS YOU
LOOK AT BITCOIN FALLING, IT HAD
BEEN AT $19,000 PER BITCOIN,
TODAY, $3,904.
AT WHAT POINT DOES IT FALL SO
LOW THAT THE COST OF MINING IT
IS MORE THAN THE ACTUAL COST OF
A BITCOIN, AND WHERE DO WE GO
FROM THERE?
>> WELL, UNFORTUNATELY, I THINK
THE REAL CHALLENGE FOR CRYPTO
CURRENCIES IS THAT SOVEREIGN
GOVERNMENTS DON'T WANT THIS TO
HAPPEN.
THEY DON'T WANT PEOPLE DEALING
IN A CURRENCY THAT THEY CAN'T
MANAGE AND DO WHAT DO YOU CALL,
QUANTITATIVE EASING AND DEFICIT
SPENDING WHERE THEY CAN DEVALUE
IT AND TAX ALL OF THE PLAYERS IN
THAT SPACE SO THAT THEY CAN BUY
VOTES TO STAY IN POWER.
THERE'S GOING TO BE A HUGE
BATTLE, NOT A TECHNICAL ISSUE
BUT RATHER, A POLICY ISSUE ABOUT
WHETHER GOVERNMENTS WANT TO GIVE
THAT UP.
LIZ: SCOTT, WE HAVE GOT TO RUN.