JACKIE: TAIWAN VOWING TO
COUNTER ATTACK CHINA IF BEIJING
KEEPS SENDING FORCES INTO ITS
TERRITORY, ONE DAY AFTER THE
ISLAND NATION FIRED WARNING
SHOTS AT CHINESE DRONE OFF ITS
SHORES FOR THE FIRST TIME.
JOINING ME NOW, SENIOR FELLOW
AND GATESTONE INSTITUTE AND
AUTHOR OF THE GREAT U.S. CHINA
TECH WAR AND COMING COLLAPSE OF
CHINA, GORDON CHANG.
GORDON, GREAT TO BE WITH YOU
THIS MORNING.
YOU SAY CHINESE PRESIDENT XI
JINPING IS READY FOR WAR AND
PRESIDENT BIDEN NEEDS TO START
PREPARING THE AMERICAN PEOPLE
FOR THE POTENTIAL OF WORLD
WAR III.
THAT IS REALLY A VERY IMPACTFUL
STATEMENT.
TELL US MORE.
>> XI JINPING IS NOT ONLY
ENGAGED IN THE LARGEST MILITARY
BUILDUP SINCE THE SECOND WORLD
WAR, HE IS ALSO PREPARING THE
CHINESE CIVILIANS FOR WAR.
WE HAVE SEEN THIS IN A NUMBER OF
DIFFERENT INSTANCES.
LET ME TELL YOU A CONVERSATION I
HAD LAST MONTH WITH THE CHINESE
FACTORY OWNER.
HE WAS MAKING CONSUMER ITEMS,
MEDICAL CONSUMER ITEMS.
HE WAS VISITED BY LOCAL
COMMUNIST PARTY CADRES AND WAS
TOLD HE HAD TO CHANGE HIS
PRODUCTION LINES FOR ITEMS FOR
THE MILITARY.
AND HE SAID THAT HE WAS NOT THE
ONLY PRIVATE FACTORY OWNER TO
RECEIVE THAT DIRECT ORDER AND
THAT A NUMBER OF PRIVATE FACTORY
OWNERS HAVE ACTUALLY LEFT AND A
BAN DONNED -- ABANDONED THEIR
FACILITIES.
THE COMMUNIST PARTY IS OPERATING
THEM BECAUSE THOSE FACTORY
OWNERS DIDN’T WANT TO STICK
AROUND FOR XI JINPING’S WAR.
THERE ARE A NUMBER OF OTHER
INSTANCES THAT TELL US THAT XI
JINPING WANTS TO PROVOKE A WAR.
YOU KNOW, PRESIDENT BIDEN HAS AN
OBLIGATION TO TALK TO THE
AMERICAN PEOPLE RIGHT NOW ABOUT
WHAT IS HAPPENING.
JACKIE: LET ME ASK YOU, GORDON,
ABOUT THE COMMERCE SECRETARY
SAYING PRESIDENT BIDEN IS
UNDECIDED ABOUT EASING THE U.S.
TARIFFS ON CHINESE GOODS.
HE’S WEIGHING THE POSSIBLE
IMPACT ON INFLATION ON AMERICAN
WORKERS.
HE PUT THE DECISION OFF FOR
MONTHS.
SOME PEOPLE HAVE SAID JUST LEAVE
IT ALONE.
SOME PEOPLE HAVE SAID IF YOU
TAKE THE TARIFFS OFF OF CHINA,
YOU’RE CATERING TO THEM.
YOUR THOUGHTS ON BIDEN’S FOREIGN
POLICY SPECIFICALLY.
WE KNOW HE’S BEEN A MESS IN
OTHER AREAS OF THE WORLD BUT
SPECIFICALLY AS HE’S BEEN
DEALING WITH CHINA.
>> BIDEN HAS DONE THE MINIMUM
NECESSARY IN THE FACE OF AN
OBVIOUS THREAT AND I THINK ONE
OF THE MOST TELLING THINGS IS
HE’S HAD, WHAT, CERTAIN
CONVERSATIONS NOW WITH XI
JINPING WHILE BIDEN WAS
PRESIDENT AND HE’S NOT RAISED
THE ISSUE OF THE ORIGINS OF
COVID-19 WHICH HAVE NOW KILLED
1,045,000 AMERICANS.
AND I THINK THAT’S AN INDICATION
THAT BIDEN JUST IS SHYING AWAY
FROM VERY OBVIOUS DANGERS THAT
NOW EXIST.
WITH REGARD TO THE TARIFFS
SPECIFICALLY, THEY’RE NOT GOING
TO HAVE ANY EFFECT ON INFLATION
BECAUSE SELLERS DON’T DROP THEIR
PRICES WHEN THE COST OF GOODS GO
DOWN, THEY DROP THEIR PRICES
WHEN DEMAND GOES DOWN.
AND IN ANY EVENT, THE CHAIS
NIECE PICKED UP MOST OF THE COST
-- CHINESE PICKED UP MOST OF THE
COST OF THEIR TARIFFSS IN IN
2018 WHEN THEY WERE FIRST
IMPOSED AND THEY DID THAT BY NOT
ONLY MESSING WITH THEIR
CURRENCY, ALSO PROVIDING
SUBSIDIES TO EXPORT ORIENTED
FACTORIES.
IF BIDEN WERE TO DROP THE
TARIFFS AND IF IT WERE TO HAVE A
PRICE EFFECT, WHAT HE WOULD BE
DOING IS SUBSIDIZING THE CHINESE
CENTRAL GOVERNMENT AND TREASURY.
THAT’S NOT SOMETHING AMERICAN
TAXPAYERS SHOULD BE DOING AT
THIS MOMENT.
JACKIE: RIGHT.
BRANDON.
BRANDON: WITH ALL DUE RESPECT,
THE PETERSON INSTITUTE BODIES
AGREE WITH YOU.
-- WOULD DISAGREE WITH YOU.
THEY SAY THE TARIFFS ARE FUELING
INFLATION AND DRIVING UP PRICES.
CHINESE TARIFFS ARE PLACED ON
ITEMS THAT ARE VERY IMPORTANT TO
A LOT OF AMERICANS, SENDING OUR
KIDS BACK TO SCHOOL RIGHT NOW,
HIGHER COST FOR THINGS LIKE
SCHOOL SUPPLIES, SHOES, THE
CLOTHING THAT WE’RE PUTTING ON
OUR KIDS’ BACKS.
CAN’T WE DO AT LEAST A LITTLE
BIT TO TRY TO DRIVE DOWN THE
COSTS BY CUTTING THE TARIFFS
BACK?
>> WELL, WHAT WE DO BY CUTTING
TARIFFS IS TELLING AMERICAN
FACTORY OWNERS AND OTHERS THAT
IT’S OKAY TO KEEP YOUR FACTORIES
ON CHINESE SOIL AND AT A TIME
WHERE WE SHOULD BECOME SELF
SUFFICIENT, THAT’S A MOVE IN THE
WRONG DIRECTION.
AND IN ANY EVENT, IF THE TARIFFS
-- EVEN IF PETERSONS WAS RIGHT
WHICH I DON’T THINK THEY ARE,
BUT EVEN IF THEY WERE RIGHT,
LOOK, THE MAIN REASON FOR
INFLATION IS OUT-OF-CONTROL
GOVERNMENT SPENDING.
WHEN THOSE TARIFFS WERE PUT IN
PLACE, THERE WAS ALMOST NO PRICE
EFFECT IN THE UNITED STATES.
SO WHY SHOULD THERE BE A PRICE
EFFECT NOW?
PETERSON WILL SAY THESE THINGS
WHICH ARE -- I THINK JUST NOT
GROUNDED IN REALITY AT THIS
POINT.
JACKIE: GORDON, CHINA’S
COMMUNIST PARTY ANNOUNCING ANNOU
TO HOLD ITS CONGRESS ON
OCTOBER 16th WHEN XI JINPING
IS EXPECTED TO TAKE AN
UNPRECEDENTED THIRD TERM.
SOME SAY THAT’S WHY HE’S FLEXING
HIS MUSCLES IN THEY THE WAY HE
HAS BEEN TO SHOW POWER
DOMESTICALLY FOR HIS COUNTRY AT
HOME.
YOUR THOUGHTS?
>> THAT’S A POSSIBILITY.
THE PROBLEM RIGHT NOW IS AN
INTERNAL CHAI NOOSE CHINESE ONE.
YOU HAVE DEBT DEFAULTS, PLUNGING
PROPERTY PRICES, WHAT APPEARS TO
BE A CONTRACTING ECONOMY,
CERTAINLY WORSENING FOOD
SHORTAGES, DETERIORATING
ENVIRONMENT, ACCELERATING
COVID-19 OUTBREAKS THAT THEY
CAN’T CONTROL AND WITH THEIR
COVID-19 POLICIES THEY’RE
PARALYZING CHINESE SOCIETY.
XI JINPING IS THE AUTHOR OF
THESE DOMESTIC POLICIES.
HE OBVIOUSLY DOES NOT WANT TO
TAKE RESPONSIBILITY FOR THEM BUT
THERE’S NO SOLUTIONS THAT HE HAS
OTHER THAN LASHING OUT AT INDIA,
JAPAN, THE PHILIPPINES, THE
UNITED STATES, TAIWAN.
SO WE’VE GOT TO BE EXTREMELY
CONCERNED THAT HE HAS INCENTIVES
TO DO THIS WHICH IS NOT TO SAY
THAT WE’LL BE IN WAR NEXT WEEK,
ALTHOUGH THAT’S A REAL
POSSIBILITY.
THE POINT IS, THOUGH, THAT XI
JINPING HAS INDEED INCENTIVES TO
DO THAT AND ALL THE ELEMENTS FOR
GREAT POWER CONFLICT ARE YOU NOW
IN PLACE.
ALL WE REALLY NEED IS ONE SPARK.
JACKIE: I THINK YOU’RE RIGHT,
ONE SPARK IS ALL IT TAKES.
GORDON CHANG, GOOD TO HE SO YOU,
-- GOOD TO SEE YOU, SIR.
WE’LL KEEP COMING BACK TO YOU.