NEIL: CHINESE AUTHORITIES.
CHARLES: THIS IS BEING USED BY
POLICE IN CHINA ABOUT HOW FAR
THIS TECHNOLOGY WOULD GO AND HOW
DEEP WILL THIS BIG BROTHER THING
GO IN THE COUNTRY.
JOINING ME TO DISCUSS,
"WALL STREET JOURNAL" JILLIAN
MEDICAL CHEER, DANIELLE
DIMARTINO BOOTH IS BACK WITH US
AS WELL.
THEY HAVE A LOT OF DIFFERENT
PROGRAMS IN PLACE.
ANOTHER THING THEY HAVE IS THE
SOCIAL CREDIT SYSTEM.
IT DOESN'T ALLOW YOU TO BE A BAD
CITIZEN, WILL GO INTO PLACE
2020.
THEY HAVE GENERATED 7 MILLION
PUNISHMENTS.
WE RED ABOUT THIS SCARY STUFF A
LONG TIME BUT IT IS COMING INTO
EXISTENCE.
>> THIS IS NEW TOTALITARIANISM.
PUT THIS IN THE HISTORICAL
CONTEXT.
CAN IMAGINE WHAT THIS WOULD BE
USED UNDER LENIN OR MAO.
THE TRAJECTORY OF HUMAN RIGHTS
IN CHINA IS GOING THE OTHER WAY.
HE IS TAKING PLAYS OUT OF MAO'S
PLAYBOOK.
THIS IS TIME FOR AMERICAN
LEADERSHIP F WE'RE NOT CONCERNED
ABOUT HUMAN RIGHTS AND FREEDOM I
THINK THE TRAJECTORY IS GOING
THE WRONG WAY.
CHARLES: DANIELLE, THE SYSTEM
WOULD RATE TRUSTWORTHINESS.
IMAGINE AS CHINESE CITIZENS,
WHAT YOU BUY, HOW YOU SPEND YOUR
TIME, IF YOU JAYWALK, IF YOU
SMOKE ON THE TRAIN, IF YOU
CRITICIZE THE GOVERNMENT, EVEN
FAMILY OR FRIENDS.
>> OH, IT WILL TRACK WHAT APPS
YOU'RE ON ON YOUR PHONE.
IT IS BIG BROTHER WRIT LARGE, IF
YOU THINK ABOUT THE STEPS THAT
VENEZUELA, RUSSIA AND CHINA ARE
TAKING TO IMPLEMENT THEIR OWN
CRYPTOCURRENCIES, BY 2020, I
SUSPECT THEY WILL BE ABLE TO
TRACK THEIR CITIZENS EVERY
ECONOMIC MOVE.
I MEAN, THE DISPARAGEMENT OF
ECONOMIC FREEDOM, OF PERSONAL
LIBERTY, JUST WHEN YOU THINK
CHINA IS SO, STRONG AND CLAMPS
DOWN SO MUCH IF THERE IS AN
ECONOMIC SLOWDOWN COMING THEY'RE
GOING TO HAVE TO MAINTAIN SOCIAL
ORDER F THEY'RE USING THE
TECHNOLOGY TO DO IT, IT SCARES
ME EVEN MORE.
CHARLES: THERE IS A BIGGER MACRO
BATTLE BETWEEN DEMOCRACIES AND
TOTALITARIANISM WHICH IS GAINING
POPULARITY AROUND THE WORLD SOME
COUNTRIES ARE VOTING THIS IN
DEMOCRATICALLY.
>> YEAH.
AGAIN I WILL COME BACK TO THE
POINT.
THIS IS WHY AMERICAN LEADERSHIP
IS SO IMPORTANT.
WE'RE SEEING THIS IN CHINA BE
RULED OUT, PARTICULARLY WITH
RELIGIOUS MINORITIES.
IN A PROVINCE TARGETING MUSLIMS,
WEAKER MUSLIMS.
WE'RE SEEING THIS USED AGAINST
CHRISTIANS IN MANY CASES.
THIS IS AN OPPORTUNITY FOR THE
U.S. TO SHOW LEADERSHIP.
CHARLES: WHAT CAN WE DO TO SLOW
IT DOWN, TO CURB IT?
WHAT COULD WE DO AS A NATION?
>> WELL I MEAN I THINK THE TRUMP
ADMINISTRATION IS HAD SUCCESS
WITH SANCTIONS.
I THINK BRINGING THIS UP, SAYING
THE NAMES OF PEOPLE WHO ARE
BEING PERSECUTED, BRINGING UP
DISSIDENTS, MAKING THIS AN ISSUE
ALONG WITH OUR ECONOMIC SUCCESS
BECAUSE THIS IS SOMETHING THAT
REALLY MATTERS.
CHARLES: SURE.
>> FREE COUNTRIES ARE MORE
LIKELY TO BE PEACEFUL COUNTRIES.
CHARLES: LISTEN, I THINK AS
WE'RE IN THE MIDDLE OF THIS
TRADE WAR THIS SHOULD BE A KEY
CONSIDERATION.
NOT JUST OPENING YOUR MARKETS
BUT MAKING SURE YOU DON'T ARREST
A MILLION PEOPLE BECAUSE THEY'RE
MUSLIMS, PUT THEM IN
CONCENTRATION CAMPS.
I DON'T KNOW WE REALLY WANT TO
DO BUSINESS WITH A COUNTRY LIKE
THAT.
>> OF COURSE WE DON'T WANT TO DO
BUSINESS WITH A COUNTRY LIKE
THAT, IF YOU SAW THE LATEST
TRADE DEFICIT FIGURES, CHINA IS
55% OF THE TRADE DEFICIT.
THAT IS THE BIGGEST PORTION ON
RECORD.
TO ME IT WILL MAKE BOTH SIDES IN
THE TRADE WAR BATTLE DIG THEIR
HEELS IN AHEAD OF THE G20 AT THE
END OF THE MONTH.
WE KNOW CHINA IS REELING.
MANUFACTURING SECTOR AT LOWEST
LEVEL SINCE 2011.
I GET WORRIED WHEN THEIR ECONOMY
SLOWS BECAUSE IT MAKES THEIR
LEADERSHIP MORE DESPERATE TO
CONTROL THEIR PEOPLE.
CHARLES: DO YOU AGREE WITH THAT.
>> ABSOLUTELY.
FOR A LONG TIME CHINA HAD A
COMPACT WITH THE CHINESE PEOPLE,
WE GIVE YOU ECONOMIC SUCCESS WE
GET YOUR POLITICAL FREEDOM.
CHARLES: THAT IS WHEN THE
FAUSTIAN DEAL COMES HOME TO
ROOST.
>> YES, CARRY STUFF.
>> YOU STUDY THE FEND, MONETARY
POLICY, AND TRENDS.
HOW DO WE ADJUST FOR THIS?
THERE ARE POTEMPKIN CITIES, GOES
SITS AND TOWNS.
SO MANY LIES THEY PUT OUT
DAY-TO-DAY.
IF THEY'RE BEATING DOWN ON THEIR
PEOPLE, ACTUALLY TAKING AWAY
THEIR FREEDOMS AND RIGHTS, HOW
COULD YOU EVER ACCURATELY
MEASURE THEIR ECONOMY?
>> IT IS DIFFICULT TO DO.
SOME ANALYSTS ON THE GROUND COME
UP WITH THEIR OWN INDEPENDENT
ANALYSES THAT ACTUALLY SHOW HOW
MUCH THE ECONOMY IS SLOWING
RIGHT NOW.
THE CHINESE, THE CHINESE
LEADERSHIP HAS BEEN HOPING FOR
YEARS NOW THAT THEY WOULD BE
ABLE TO MOVE, SEGUE TOWARDS
IRONICALLY MORE AMERICAN TYPE OF
ECONOMY, DOMESTIC-LED
CONSUMPTION.
IF THEY CAN'T TURN THAT CORNER
WHILE MANUFACTURING IS SLOWING
AGAIN, MY GREATEST CONCERN THEY
WILL USE THEIR CURRENCY AS ONE
OF THEIR LAST REMAINING PIECES
OF AMMUNITION.
THEY CAN'T GO AFTER OUR
TREASURY.
THEY WOULD LOSE BILLIONS OF
DOLLARS.
CHARLES: REAL QUICK, JILLIAN,
BEFORE WE GO, ANY SIGNS YOU
THINK SOME DAY WE MAY HAVE TO
GRAPPLE WITH THESE ISSUES?
I THINK SOME DAY WE MAY NOT TO
THIS DEGREE BUT TECHNOLOGY LOOKS
ENTICING TO PEOPLE?
>> WE'RE CREEPED OUT A LITTLE
BIT WHAT FACEBOOK AND GOOGLE CAN
DO.
THE U.S. NEEDS A PRESENCE ON THE
WORLD STAGE.
THIS ISN'T JUST CHINA.
BEIJING WILL EXPORT THIS