.
LIZ: WE HAVE BREAKING NEWS WE
ARE JUST GETTING, AND A LOT OF
PEOPLE DID NOT KNOW THIS, BUT
APPARENTLY EVERY AIRLINE IS
AWARE.
ALL OF THE TRANSCONTINENTAL
AIRLINES.
IN FOUR HOURS THERE IS AN
EXPIRATION OF SOMETHING THAT IS
CALLED AIRSPACEABILITY.
MEANING THE U.S. AIRLINES
ABILITY TO CROSS RUSSIAN
AIRSPACE.
THESE ARE BASIC AIRLINES,
REGULAR AIR CARRIERS WITH
TOURISTS ON BOARD.
THIS EXPIRES IN FOUR HOURS.
BOTH SIDES ARE WAITING FOR EACH
OTHER TO SET A DATE TO RESUME
NEGOTIATIONS, BUT
REPRESENTATIVES FROM U.S.
CARRIERS LIKE THE ONES YOU SEE
ON YOUR SCREEN ARE MEETING WITH
OFFICIALS AT THE STATE
DEPARTMENT TO TRY AND FIGURE
OUT WHETHER U.S. AIRLINES ARE
GOING TO BE ALLOWED TO FLY OVER
RUSSIAN AIRSPACE, AND RIGHT
NOW, ACCORDING TO THE KOREAN
IT'S NOT GOING TO BE FLYING
RIGHT NOW, AVOIDING RUSSIAN
AIRSPACE AND URGING TRAVELERS
TO REROUTE TRAVEL PLANS,
REROUTING FLIGHTS OVER BEIJING
AND HONG KONG SO THEY DO NOT GO
OVER RUSSIAN AIRSPACE, WHAT
TIMING IS THAT?
UNBELIEVABLE, JUST AS THE
UNITED STATES LAID DOWN SOME
SANCTIONS ON RUSSIAN
INDIVIDUALS, OLIGARCHS AND
RUSSIAN COMPANIES AND BANKS,
BUT WAS EXPECTED YESTERDAY TO
ANNOUNCE NEW SANCTIONS BUT WE
THIS, AS PRESIDENT TRUMP AND
JAPANESE PRIME MINISTER SHINZO
ABE AT THIS MOMENT ARE IN
HIGH-LEVEL DISCUSSIONS AND
MEETINGS TALKING TRADE AND
SECURITY AND NORTH KOREAN
NUCLEAR AMBITIONS.
BOB HORMATS IS FORMER SECRETARY
OF STATE AND VICE CHAIRMAN OF
GOLDMAN SACHS.
WE HAVE A LOT OF NEWS HERE.
WHICH PIECE OF THIS MATTERS THE
MOST RIGHT NOW?
>> VERY CONFUSING WHAT'S GOING
ON.
THE CURRENT STATUS IS LARGE
NUMBERS OF AMERICAN PLANES THAT
GO TO VARIOUS POINTS IN EAST
ASIA IN PARTICULAR FLY OVER THE
EASTERN, THE RUSSIAN FAR EAST,
AND SO IT'S POSSIBLE, AND THIS
IS NOT AN UNCOMMON THING, BUT
IT'S POSSIBLE, GIVEN WHAT YOU
JUST SAID, THAT THE RUSSIANS
ARE NOW HOLDING THAT UP OR
USING IT AS A BARGAINING TOOL
BECAUSE IT WOULD BE MUCH LESS
CONVENIENT FOR AMERICAN PLANES
TO GO AROUND THE RUSSIAN FAR
EAST AS OPPOSED TO GOING
DIRECTLY OVER IT.
COSTS THEM A LOT MORE MILEAGE
AND GASOLINE TO DO THAT.
LIZ: YOU CAN SEE THAT AMERICAN
AIRLINES, WHICH HAS SAID IT
WILL AVOID RUSSIAN AIRSPACE AS
OF RIGHT NOW.
>> FURTHER TO THE EAST TO GET
AROUND.
LIZ: LET'S BROADEN THE
DISCUSSION TO NORTH KOREA,
JAPAN, SHINZO ABE RIGHT NOW
WITH THE PRESIDENT, BUT THERE'S
ALSO THIS GIGANTIC, YOU TALK
ABOUT A BARGAINING CHIP, TRADE.
THE TPP, THE TRANS-PACIFIC
PARTNERSHIP, WE ARE HEARING
BECAUSE THE PRESIDENT SAID IT,
THAT HE HAS ENABLED LARRY
KUDLOW AND ROBERT LIGHTHIZER,
THE TRADE REPRESENTATIVES TO
RECONSIDER JOINING BACK INTO
THE TPP IF THE 11 NATIONS WOULD
HAVE US?
>> THERE ARE A LOT OF ISSUES
THAT HAVE TO BE DEALT WITH.
ONE THE ONE YOU POINTED OUT,
WOULD THE OTHER COUNTRIES LET
US BACK IN?
A LOT OF THE OTHER THINGS THAT
191 COUNTRIES AGREED ON WERE
THINGS THAT REDUCED SOME OF THE
PROGRESS THAT THE UNITED STATES
HAD MADE IN THE NEGOTIATIONS
AMONG THE 12 COUNTRIES.
IN OTHER WORDS, WE HAD GOTTEN
CERTAIN THINGS IN THE AGREEMENT
THAT WERE ELIMINATED WHEN THE
11 MADE THEIR DEALS.
SO THE QUESTION IS WOULD THE 11
COUNTRIES RESTORE SOME OF THE
BENEFITS FOR THE UNITED STATES
THAT WERE ELIMINATED WHEN THEY
MADE THEIR OWN DEAL?
THAT'S ONE BIG ISSUE.
LIZ: AND THERE'S HUGE TENSION
WITH CHINA AND THE WHOLE POINT
APPARENTLY AND PART OF THE
POINT OF JOINING TPP IS IT
FORCED CHINA'S HAND TO START
BEHAVING.
BOB, COME ON.
THE CHINESE ARE SO IMBALANCED
WHEN IT COMES TO WHAT WE NAIL
THEM ON TARIFFS VERSUS WHAT
THEY NAIL US ON TARIFFS.
IT'S RIDICULOUS.
>> THAT'S WHY I WAS IN FAVOR OF
TPP, IT WAS NOT PERFECT BUT HAD
A NUMBER OF THINGS IN IT.
ONE WAS IT HAD A NUMBER OF
ELEMENTS THAT REDUCE THE DEGREE
TO WHICH GOVERNMENTS SUPPORT
STATE ENTERPRISES.
THAT WAS PART OF THE DEAL.
GAVE MORE SUPPORT TO UNIONS.
IT GAVE MORE SUPPORT FOR
ENVIRONMENTAL PURPOSES.
IT DID A LOT OF THINGS THIS
WOULD HAVE MADE IT MORE MARKET
ORIENTED.
IT WAS NEVER MEANT TO CONTAIN
CHINA SINCE MOST OF THE
COUNTRIES IN THE TPP TRADE MORE
WITH CHINA BUT IS MEANT TO
ESTABLISH RULES MUCH MORE
CONDUCIVE TO THE AMERICAN VIEW
LIKE INTERNATIONALLY AND
DOMESTICALLY.
AND THEREFORE, BY NOT BEING IN
THERE, WEAKENED OUR HAND IN THE
DISCUSSIONS IN THE TPP AND
WEAKENED THE TPP.
LIZ: YOU KNOW YOU HEARD ABOUT
THE COMPANY CALLED ZTP THAT
SOURCES SOME OF ITS PARTS FROM
U.S. COMPANIES.
THE U.S. GOVERNMENT HAS NOW
SAID NONE OF THESE U.S.
COMPANIES CAN SELL BECAUSE
THEY'RE SLAPPING SANCTIONS ON
ZTE FOR HAVING DONE A
WORK-AROUND TO THE IRAN
SANCTIONS.
THEY WERE SELLING PRODUCTS TO
IRAN THAT HAD SOME OF U.S.'
PRODUCTS THAT THEY BUY INSIDE
THEM.
>> THAT'S THE AMERICAN CLAIM,
AND THAT WAS THE REASON THE
UNITED STATES GOVERNMENT
DECIDED TO TAKE ACTION.
LIZ: SO STEVEN MNUCHIN, THE
TREASURY SECRETARY IS SUPPOSED
TO MAKE SOME ANNOUNCEMENTS ON
BARRIERS AND BANS ON CHINESE
INVESTMENT IN U.S. TECHNOLOGY
OVER ALL, WHAT DO YOU THINK
ABOUT THAT?
DO YOU THINK THAT WILL SLAP THE
HAND HARD OF CHINA?
OR MIGHT IT HURT U.S. COMPANIES
MORE?
>> WELL, THAT'S A TOUGH THING
TO CALL BECAUSE AMERICAN
COMPANIES ARE INVESTING IN
CHINA, CHINESE TECHNOLOGY
COMPANIES HAVE INVESTED HERE OR
BOUGHT INTO AMERICAN COMPANIES
OR ESTABLISHED GREENFIELD
COMPANIES, SO HE'S GOING TO
HAVE TO FIGURE OUT THE RIGHT
BALANCE.
THERE ARE RULES UNDER CFIUS
WHICH IDENTIFY NATIONAL
SECURITY RISKS FROM VARIOUS
COUNTRIES, CHINA BEING ONE BUT
NOT THE ONLY ONE, SO WHAT THE
RESTRICTIONS ARE GOING TO BE
AND HOW YOU DEFINE NATIONAL
SECURITY RISK IS GOING TO BE
FIGURED OUT.