COMING BACK OFF THE LOWS OF THE
SESSION.
THANKS TO OUR TRADERS.
>>> IF YOU THOUGHT TRADE WAS THE
SCARIEST BATTLE BETWEEN THE U.S.
AND CHINA, TODAY CHINA'S DEFENSE
MINISTER TOLD DEFENSE SECRETARY
JIM MATTIS AND SECRETARY OF
STATE MIKE POMPEO THAT QUOTE,
MILITARY CONFRONTATION BETWEEN
THE U.S. AND CHINA WOULD SPELL
DISASTER FOR ALL.
YES, HE USED THE WORD DISASTER.
HE'S TALKING ABOUT THIS.
SOUTH CHINA SEA.
TAKE A LOOK AT THE ARTIFICIAL
ISLANDS THAT CHINA SOMEHOW
MANUFACTURED IN DISPUTED WATERS
THAT NOW HAVE EVERYONE FROM
JAPAN, VIETNAM AND THE
PHILIPPINES CRYING FOUL.
THE CHINESE BUILT THEM UP, THEN
FIRMLY PLANTED FIGHTER JETS,
CRUISE MISSILES AND RADAR
SYSTEMS ON THEM.
MORE THAN HALF A DOZEN INCIDENTS
IN THE DISPUTED SEA IN THE LAST
FEW YEARS BUT IT'S A RECENT
CONFRONTATION WHERE CHINESE
SHIP, A WARSHIP, THREATENED A
U.S. NAVAL SHIP.
IT'S GOT FOREIGN POLICY EXPERTS
CALLING THE SOUTH CHINA SEA A
TICKING TIME BOMB.
CAN THE U.S. AND CHINA DEFUSE IT
IN TIME?
WE BRING IN THE FOREMOST FOREIGN
POLICY EXPERT IN THE WESTERN
WORLD, COUNCIL ON FOREIGN
RELATIONS PRESIDENT, RICHARD
HAASE.
WE ARE A LITTLE BIT INTO
HYPERBOLIC TALK HERE.
YOU ARE, THOUGH, ARE YOU THE MAN
WHO ALWAYS UNDERSTANDS HOW EVERY
COUNTRY THINKS.
IN THE LAST FEW HOURS, SECRETARY
MATTIS SAID DURING THE MEETING,
BOTH SIDES SOUGHT WAYS TO LESSEN
TENSIONS IN THE SOUTH CHINA SEA.
ARE YOU LESS WORRIED TODAY THAN
YESTERDAY?
>> THE SHORT ANSWER IS NO.
CHINA, AS YOU SAY, HAS BEEN
MILITARIZING AND EXPANDING THESE
ISLANDS DESPITE THEIR PLEDGE NOT
TO.
THE UNITED STATES DOESN'T HAVE
CLAIMS TO ANY OF THE ISLANDS BUT
WHAT WE WANT TO DO IS BE ABLE TO
SAIL THROUGH, TREAT THEM AS
INTERNATIONAL WATERS.
WE ARE AGAINST ANY UNILATERAL
CHINESE ACTION.
I THINK THE CHANCE OF AN
INCIDENT WHICH WE NEARLY HAD, AS
YOU CORRECTLY SAID, THAT CHANCE
REMAINS HIGH.
LIZ: OKAY.
BUT IT'S NOT LIKE, YOU SAY A
CHANCE OF ACCIDENT.
LOOK ON YOUR SCREEN.
THIS IS A PICTURE TAKEN OF A
CHINESE WARSHIP.
IT MIGHT NOT BE THE CHINESE
WARSHIP, BUT IT WAS ONE THAT
CAME IN NEAR COLLISION WITH THE
"USS DECATUR" WHICH IS ONE OF
THOSE GUIDED MISSILE DESTROYERS.
NEAR COLLISION.
IT'S NOT LIKE WE HAVE A REALLY
GREAT RELATIONSHIP AND OOPS,
THERE WAS AN ACCIDENT HERE.
WE ARE IN THE MIDDLE OF A TRADE
DISPUTE AT THE MOMENT.
HOW DO YOU SEE THIS RAMPING UP
OR COOLING DOWN?
>> LOOK, WE ARE TAKING A STEP
FARTHER BACK.
WE HAVE A TRADE DISPUTE AND
REALLY AN ECONOMIC DISPUTE WITH
CHINA'S FUNDAMENTAL AND WHY IT'S
SO IMPORTANT ARE ECONOMICS.
FOR THE LAST 20, 25 YEARS, THE
FOUNDATION OF U.S./CHINA
RELATIONS AND NOW THAT
FOUNDATION IS A SOURCE OF
FRICTION.
PEOPLE AREN'T HAPPY WITH WHAT
CHINA IS DOING INSIDE, IT'S
BECOMING MORE REPRESSIVE AND
PEOPLE ARE UNHAPPY WITH THE MORE
ASSERTIVE CHINESE FOREIGN
POLICY, INCLUDING BUT NOT
LIMITED TO WHAT WE'RE TALKING
ABOUT WITH THE SOUTH CHINA SEA.
SO THE NEW LANGUAGE IS ARE WE
GETTING CLOSE TO A NEW COLD WAR
BETWEEN THE UNITED STATES AND
CHINA.
WE'RE NOT THERE YET.
IT'S NOT INEVITABLE.
RIGHT NOW, THIS IS A
RELATIONSHIP THAT ESSENTIALLY IS
LACKING AND ANYTHING IN THE WAY,
MUCH IN THE WAY THAT IS
POSITIVE.
IT'S A QUESTION OF WHETHER WE
CAN COOPERATE ON NORTH KOREA.
AT THE MOMENT THAT LOOKS SHAKY.
WHAT YOU HEARD TODAY FROM THE
CHINESE LEADERS, THE CENTRAL
ISSUE IN SOME WAYS FOR THEM
WASN'T EVEN THE SOUTH CHINA SEA.
IT WAS TAIWAN.
THE QUESTION OF WHETHER THE
UNITED STATES OR WHETHER PEOPLE
ON TAIWAN ARE BEGINNING TO DO
THINGS THAT WOULD POSE A THREAT
TO THE WAY WE FINESSED THIS FOR
THE LAST 40 YEARS.
AGAIN, THERE'S ANY NUMBER OF
THINGS THAT COULD PUSH THIS
RELATIONSHIP OFF TRACK.
LIZ: WHAT IS YOUR GUESS AND
EXPECTATION FOR THE G-20?
I WILL BE GOING WITH FOX
BUSINESS AND WE WILL BE WATCHING
THIS MEETING BETWEEN PRESIDENT
TRUMP AND XI JINPING OF CHINA.
>> I DON'T SEE HOW ONE MEETING
OR DINNER BETWEEN PRESIDENT
TRUMP AND XI JINPING CAN RESOLVE
THE FULL RANGE OF ECONOMIC
ISSUES.
IT'S NOT JUST TARIFF AND
NON-TARIFF BARRIERS.
IT'S STAYE
IT'S STATE SUBSIDIES, IT'S
INTELLECTUAL PROPERTY THEFT.
IT'S A LOT AND I DON'T SEE HOW
IT LENDS ITSELF TO QUICK, EASY
NEGOTIATION.
LIZ: IT'S JUST AMAZING TO SEE
WHAT MAY OR MAY NOT HAPPEN.
WILL YOU BE THERE AT THE G-20?
>> NO.
EVEN THOUGH MY SPANISH IS OKAY,
I WILL LET YOU DO THE
TRANSLATION FROM BUENOS ARIES.
LIZ: RICHARD HAASS, THANK YOU
VERY MUCH.
THIS COULD ALL COME TO A HEAD
WHEN PRESIDENT TRUMP MEETS WITH
XI OF CHINA AT THE G-20 IN
ARGENTINA.
IT'S NOVEMBER 30th.