MORE LIKE 100 TIMES CASH FLOW.
FIRST, WE WANT TO TALK ABOUT A
TRADE STANDOFF WITH CHINA WHICH
CONTINUES.
SOME WHITE HOUSE ADVISORS ARE
PROPOSING THE PRESIDENT APPLY
TARIFF AS HIGH AS 25%.
THAT WOULD BE AN INCREASE FROM
THE ORIGINAL PROPOSAL WHICH WAS
A 10% TARIFF.
THE PRESIDENT WEIGHED IN ON THE
ECONOMIC RELATIONSHIP BETWEEN
THE U.S. AND CHINA LAST NIGHT
DURING A RALLY IN FLORIDA.
>> WE'VE TAKEN THE TOUGHEST EVER
ACTIONS IN RESPONSE TO CHINA'S
ABUSIVE TRADE PRACTICES.
WE'RE DOING VERY WELL WITH
CHINA, VERY WELL.
AND I HAVE A LOT OF HE RESPECT
FOR CHINA AND I HAVE TREMENDOUS
RESPECT FOR PRESIDENT XI OF
CHINA.
BUT THIS HAS BEEN TOO MANY YEARS
OF ABUSE.
$500 BILLION A YEAR,
$500 BILLION.
WE'VE HELPED REBUILD CHINA.
WE CAN'T DO THAT ANYMORE.
MARIA: JOINING US RIGHT NOW IS
THE AUTHOR OF THE COMING
COLLAPSE OF CHINA, GORDON CHANG.
YOUR THOUGHTS ON A POTENTIAL OF
AN ESCALATING ISSUE WHERE HE
GOES FROM
GOES TROM
GOES TOOM
GOES TO 25% FROM 10%.
>> I THINK THE PRESIDENT'S GOT
THE PRESIDENT GAVE RELIEF TO
ZTE.
THAT WAS UNDESERVED.
THAT WAS AN OLIVE BRANCH TO THE
OVER OF NXP.
REMEMBER THE REGULATORS ACTUALLY
NOT GOING TO DO IT.
WHICH MEANS YOU CAN'T NEGOTIATE
WITH THE CHINESE AT THIS TIME.
XI JINPING IS IN TRIP L HE'LL
XI JINPING IS IN TROP L HE'LL
XI JINPING IS IN TROUBL HE'LL
XI JINPING IS IN TROUBLEHE'LL
XI JINPING IS IN TROUBLE H'LL
THAT MEANS YOU HAVE TO PILE ON
THE PRESSURE.
>> THE NEW YORK TIMES HAD A
OF CHINA.
THERE IS TALK ABOUT HOW THE
PRESIDENT IS VIEWED AS A MASTER
STRATEGIST.
WHAT DO YOU TAKE OUT OF THAT,
>> XI JINPING HAS A LOT OF
PROBLEMS AT HOME.
IT'S NOT BEING REPORTED AS MUCH
AS YOU WOULD EXPECT.
THIS IS UNPRECEDENTED.
WAS WE'RE SEEING -- WE DON'T
KNOW WHAT'S GOING ON BECAUSE
IT'S AN EXTREMELY OPAQUE SYSTEM.
THE POINT IS, XI JINPING IS IN
UNPRECEDENTED?
>> IT'S MORE THAN WE'VE EVER
SEEN OF XI JINPING.
IT'S SORT OF NATURAL.
HE TOOK CONTROL OF THE ECONOMY.
AS THE GENERAL SECRETARY OF THE
COMMUNIST PARTY, HE DIDN'T HAVE
THE ECONOMICS PORTFOLIO.
HE TOOK IT OVER FROM THE
NOW THINGS ARE GOING BADLY.
SO OF COURSE HE OWNS IT.
>>
.>
.DAGEN: I WANT TO ADD ONE THING
.DAGEN: I WANT TO ADD ONE THIN.
THE WALL STREET JOURNAL
EDITORIAL PAGE WRITES ABOUT THIS
VERY THING.
CHINESE STOCKS HAVE LOST ABOUT A
MARIA: AND THE WAN.
CHINESE POLICIES.
THEY WERE TRYING TO DELEVERAGE
CORPORATE DEBT AND THEY'RE
REOPENING MONETARY SPIGOTS IN
CHINA.
THIS IS A NARRATIVE THAT'S
SLOWING CHINA'S ECONOMY.
IT'S WORTH NOTING THAT NOBODY
WINS A TRADE WAR.
YOU JUST GET HURT A LITTLE BIT
LESS.
AND CHINA, THE REASON THEY'RE IN
NOW THEY'RE REVERSUSSING IT.
MARIA: WHAT I WORRY ABOUT IS
ARE TARIFFS REALLY THE ANSWER,
WILL TARIFFS GET THE CHINESE TO
CHANGE THEIR BEHAVIOR.
THE BIG PROBLEM IS THE CONSTANT
THEFT OF INTELLECTUAL PROPERTY
AND THE FORCED TRANSFER OF
TECHNOLOGY THAT CHINA BEGINS TO
ENGAGE IN.
THEY DON'T ADMIT THAT THEY'RE
ENGAGING IN IT.
JUST BECAUSE THEY'RE PAYING A
25% TARIFF, DOES THAT CHANGE A
CULTURE OF THEFT?
>> NO, IT DOESN'T.
IT'S EMBEDDED IN THE CHINESE
SYSTEM AND EMBEDDED IN XI
JINPING WHO BELIEVES THERE
SHOULD BE MORE STATE CONTROL OF
THE ECONOMY, THAT CHINA SHOULD
CLOSE UP MARKETS AND DEMAND
ACCESS TO AMERICAN AND OTHER
MARKETS.
TARIFFS ARE NOT THE ONLY ANSWER.
>> I THINK THAT --
MARIA: IS THERE ANY WAY TO STOP
IT?
>> WE'RE IN AN ALL-OUT FIGHT.
THIS MEANS IMPLICATIONS THAT NO
ONE REALLY WANTS TO THINK ABOUT
BUT CLEARLY XI JINPING IS NOT
LETTING THIS GO.
THAT MEANS WE'LL HAVE TO GO
BEYOND TARIFFS.
WE MAY NEED TO HAVE IMPORT BANS.
DEFINITE
DAFINITE
DAGENITE
DAGEN:TE
DAGEN: E
DAGEN: SIFIS BILL.
>> IF THERE IS A FAIR TRADE DEAL
WITH THE US, ISN'T THAT A VITAL
CEP
STP
STEP ONE.
IF WE DON'T GET THEM TO THE
TABLE FOR A FAIR TRADE DEAL,
WE'LL NEVER BE ABLE TO STOP
ABOUT -- BE ABLE TO TALK ABOUT
VITAL FIRST STEP TO SOLVING
THIS.
>> ABSOLUTELY.
EVERYTHING ELSE DOESN'T WORK.
PEOPLE SAY LET'S GO TO THE WORLD
TRADE ORANIZATION.
WE WON EVERY CASE AGAINST CHINA
SINCE 2004 AND CHINA'S BE HAS
GOTTEN WORSE.
BEFORE 2004 WE WERE ADMITTING
MOST OF THE CASES ANYWAY.
WHEN STEVE MNUCHIN SAYS LET'S GO
TALK TO THEM, WELL, THAT JUST
DOES NOT WORK.
MARIA: THEY DON'T BELIEVE IN
PATENTS.
TATE.
IT'S JUST CRAZY, ACTUALLY.
THERE'S AN OP ED IN THE NEW YORK
TIMES FROM STEPHEN MOORE AND
TARIFFS BY TAKING A PAGE FROM
PRESIDENT REAGAN'S STRATEGY FOR
NUCLEAR DISARMAMENT.
THE ARTICLE SAYS JUST AS NO ONE
EVER THOUGHT MR. REAGAN WOULD
STEM NUCLEAR DENUCLEARIZATION,
THAN ERECTING THEM.
HE WALKED AWAY FROM THEST U,
SAYING WE'RE WALKING TOWARDS NO
TARIFFS.
>> IT WAS A LANDMARK.
HE'S ACTUALLY REDUCING TARIFF
BARRIERS.
IF THAT DEAL WITH THE EU GETS
DAGEN: HE SHOULD STOP BRAGGING
ABOUT HOW AWESOME THE STEEL
INDUSTRY IS IN THE COUNTRY
BECAUSE OF THE TARIFFS HE PUT ON
STEEL AND ALUMINUM.
PUSHING THE DEMOCRATS FOR THIS
KIND OF DEAL FOR YEARS AND HE
BRAGS ABOUT THE STEEL INDUSTRY.
WELL, THE STEEL INDUSTRY EMPLOYS
ABOUT 140 TO 170,000 PEOPLE.
RAISING PRICES, THAT ARE SEEING
6.5 MILLION PEOPLE.
YOU'RE SAVING THE FEW AND
MARIA: EVEN THE WHOLE IDEA OF
DAGEN: THEY ALREADY PUSHED
BACK.
MARIA: ARE ALL THESE COUNTRIES
>> IF IT OPENS UP TRADE TO THEM
IT COULD BE BENEFICIAL AND THEY
MAY NOT HAVE A CHOICE.
MARIA: GOOD POINT.
DAGEN: THEY ALREADY PUSHED BACK
ON AGRICULTURAL PRODUCTS.
THEY SAID WE'RE NOT TALKING
>> IMPORTANT POINT, 4.1% GROWTH
IN Q2, CHINA IS GROWING IN
REALITY LESS THAN HALF THAT.
EVERYONE NEEDS THE U.S. MARKET.
SO THAT'S THE REASON WHY YOU'RE
ABSOLUTELY RIGHT, WE ARE GOING
TO HAVE A MUCH LOWER TARIFF
ENVIRONMENT BECAUSE PEOPLE NEED
TO SELL TO AMERICA.
MARIA: THAT'S HIS STICK, VERY