CALL, AND THAT'S ADDED MORE
INTRIGUE TO ALL OF THIS.
IT'S A TERRIBLE SITUATION.
>>> AND NOW THERE'S THIS, THE
UNITED STATES GOVERNMENT URGING
GERMANY, JAPAN, ALL OF THEM,
PLEASE, STOP USING CHINA'S
HUAWEI TECHNOLOGY BECAUSE OF
CYBERSECURITY RISKS.
WANT TO BRING IN MICHAEL
PILLSBURY, AUTHOR OF "THE
100-YEAR MARATHON."
MICHAEL, IT'S SO FUNNY BECAUSE
THE SOUTH CHINA MORNING POST
TODAY PUT OUT A HEADLINE, HUAWEI
SAYS IT'S SURPRISED BY THE
REPORT THAT THE U.S. IS
PUSHING --
[LAUGHTER]
SURPRISED?
EVERYONE'S BEEN COMPLAINING
ABOUT THIS FOR A COUPLE YEARS
INCLUDING, YOU KNOW, FOLKS LIKE
SENATOR MARCO RUBIO.
THEY SHOULDN'T BE SURPRISED.
>> YES.
WELL, AS YOU KNOW FROM YOUR
PREVIOUS GUEST, DAVID STOCKMAN,
THERE'S TWO DIFFERENT VIEWS ON
CHINA, YOU KNOW?
HE'S VERY SIMILAR TO STEVE
MNUCHIN, THAT THERE'S NO PROBLEM
FROM CHINA, WE'VE GOT TO BE
FRIENDS, WE HAVE TO AVOID THE
TRADE WAR.
AND THESE PEOPLE GIVE A GREEN
LIGHT TO HUAWEI.
THEY CAN'T UNDERSTAND THE
AMERICAN GOVERNMENT'S OBJECTIONS
WHICH BEGAN UNDER PRESIDENT
OBAMA TO HUAWEI BECAUSE OF ITS
ROLE IN, FRANKLY, IN SIGNALS
INTELLIGENCE AND ESPIONAGE.
SO IT'S JUST TWO DIFFERENT VIEWS
IN WASHINGTON ABOUT WHAT TO DO
ABOUT CHINA.
I THOUGHT YOU HAD A WONDERFUL --
YOU BROUGHT THAT OUT VERY
CLEARLY.
[LAUGHTER]
CHARLES: YEAH.
AND YOU DIDN'T HAVE THE'S ESPRES
AND YOU DIDN'T HAVE THE'S ESPREO
ON -- BY THE WAY, IT'S NATURAL
ESPRESSO DAY.
WE CERTAINLY WOKE YOU UP WITH
THAT SEGMENT.
>> I'M SURPRISED YOU DIDN'T SLAP
HIM ACROSS BOTH CHEEKS.
[LAUGHTER]
CHARLES: YOU DIDN'T SEE THE
OTHER VERSION.
WE HAVE TWO VERSIONS THAT RUN
SIMULTANEOUSLY.
[LAUGHTER]
>> THE BIG NEWS OF THE DAY
THOUGH IS CONCILIATORY.
THE -- FOUR CHINESE CABINET
DEPARTMENTS JUST ABOUT 12 HOURS
AGO, THEY HAD A PRESS BRIEFING
TO SORT OF SEND PRESIDENT XI OFF
TO MEET PRESIDENT TRUMP.
AND THEY ALL FOUR MADE
STATEMENTS.
AND ONE OF THE STATEMENTS WAS
WE'RE GOING TO MEET PRESIDENT
TRUMP HALFWAY.
ANOTHER STATEMENT THEY MADE,
THIS IS COMMERCE, FINANCE,
CENTRAL BANK OF CHINA AND THE
FOREIGN MINISTRY HAVING A
FOUR-DEPARTMENT PRESS
CONFERENCE, CHARLES.
ANOTHER ONE OF THE MESSAGES WAS
WE'VE HEARD THE AMERICANS WANT
TO MAKE A DEAL, SO THEY'RE KIND
OF ECHOING PRESIDENT TRUMP,
SAYING HE'S HEARD THEY WANT TO
MAKE A DEAL.
SO THE PROSPECTS ARE GOOD FOR
SOME KIND OF AGREEMENT IN
PRINCIPLE.
BUT THE DETAILS ARE GOING TO BE
JUST VERY DIFFICULT TO WORK OUT.
CHARLES: YOU KNOW, MICHAEL, YOU
KNOW, IT SEEMS TO ME THAT PEOPLE
WHO OPPOSE THE PRESIDENT'S
EFFORTS HERE ARE IN TWO CAMPS.
ONE CAMP WHO JUST BELIEVE CHINA
POSES NO THREAT TO US --
>> RIGHT.
CHARLES: -- AND DESPITE ALL THE
OVERWHELMING EVIDENCE THAT THEY
DO.
AND THEN THE OTHER CAMP THAT
JUST, THEY MAKE SO MUCH MONEY
OFF OF BUSINESS AS USUAL.
THE VERY POWERFUL PEOPLE, THE
VERY RICH AND PERHAPS TRILLIONS
OF DOLLARS THAT THEY GET FROM
SO-CALLED, YOU KNOW, CHEAP
SUPPLY SIDE.
THEY CONTROL MEDIA, THEY CONTROL
A LOT OF THINGS.
SO THE ADMINISTRATION IS NOT
JUST FIGHTING CHINA ON THIS,
THEY'RE FIGHTING PUBLIC OPINION
WHICH IS ALWAYS GOING TO BE
STACKED AGAINST THEM.
>> I THINK THAT'S RIGHT,
CHARLES.
AND PART OF THE PROBLEM OF WHAT
YOU MIGHT CALL THE GOLDMAN SACHS
FACTION, THE CHINESE BELIEVE
THEM.
THEY HAVE TOLD THE CHINESE, WE
HAVE PRETTY GOOD PUBLIC EVIDENCE
OF THIS.
HANK PAULSON'S SPEECH IN
SINGAPORE IS ONE OF THE BEST
PIECES OF EVIDENCE.
THEY TELL THE CHINESE, WE ARE
GOING TO TAKE CARE OF MR. TRUMP
FOR YOU.
DON'T BELIEVE THIS, DON'T MAKE
ANY CONCESSIONS.
IT'S ALL AMERICA'S FAULT.
THEY ATTACK PRESIDENT TRUMP.
AND IF THEY'RE MISLEADING THE
CHINESE, I DON'T THINK IT'S
INTENTIONAL, BUT THE CHINESE
TEND TO THINK, OKAY, WE HAVE NO
PROBLEM WITH TRUMP.
WE CAN GET AWAY WITH OFFERING
NOTHING, AND THAT'S MAYBE WHAT
THEY DO.
CHARLES: WHAT DO YOU MAKE OF
THOSE PEOPLE WHO SAY, YOU KNOW,
THIS IS SORT OF -- YOU KNOW, FOR
INSTANCE, YOU KNOW, CHINA'S GOT
A MILLION MUSLIMS IN
CONCENTRATION CAMPS.
IF THAT WAS A MILLION PROPERTY
STABILITIES OR A MILLION JEWISH
FOLK, PEOPLE OF THE JEWISH
FAITH, YOU KNOW, WOULD THE
GOLDMAN SACHS, WALL STREET,
ANYBODY IN THIS COUNTRY SAY,
HEY, LET'S BE SO CONCILIATORY?
WHY DO WE LOOK THE OTHER WAY ON
SO MANY THINGS HERE, BUT WE WANT
TO SEVER RELATIONSHIPS WITH
SAUDI ARABIA OVER A HORRIFIC,
UGLY INCIDENT, BUT ALSO
UNDERSTANDING WE HAVE VERY FEW
ALLIES IN THAT PART OF THE
COUNTRY?
THE INCONSISTENCIES BOTHER ME A
LOT HERE.
>> YES.
WELL, I THINK IT SHOULD,
CHARLES.
AS I TRIED TO EXPLAIN IN "THE
10046 YEAR MARATHON," WE HAVE
HAD THE POLICY OF MAKING
EXCEPTIONS FOR CHINA BECAUSE
THEY END HELPED US SO MUCH IN
THE COLD WAR.
THAT'S NOT A TRIVIAL BENEFIT.
THEN AS YOU MENTIONED, GOLDMAN
SACHS AND OTHERS MADE MILLIONS,
BILLIONS AND EVEN TRILLIONS OF
DOLLARS.
SO THESE ARE TWO BIG PLUSES IN
THE CHINESE COLUMN.
WHAT PRESIDENT TRUMP IS DOING,
HE'S THE FIRST PRESIDENT TO
REALLY BLOW THE WHISTLE AND SAY,
OKAY, THIS IS UNFAIR.
I JUST WANT RECIPROCITY.
CHARLES CARL RIGHT.
>> WHAT'S INTERESTING TO ME, I
THINK YOUR TWO SCHOOLS OF
THOUGHT ARE SORT OF CORRECT,
WHAT'S INTERESTING IS THE
PUSHBACK FROM PRESIDENT TRUMP
FROM HIS OWN SUPPORTERS, A LOT
OF THESE MAJOR FINANCIAL POWERS,
BILLIONAIRES IF YOU WILL,
THEY'RE FRIENDS AND DONORS TO
PRESIDENT TRUMP.
CHARLES: YEAH.
>> HOW'S HE GOING TO --
[INAUDIBLE CONVERSATIONS]
CHARLES: WHEN IT COMES TO LOWER
REGULATIONS AND LOWER TAXES AND
ANYTHING ELSE THAT HURTS THE
BOTTOM LINE, THE PROFIT MARGINS,
THEY SKIP TOWN PRETTY QUICKLY.
[LAUGHTER]
HEY, THANK YOU VERY MUCH.
YOU'RE REALLY THE BEST GUY OUT
THERE TO TALK TO THIS ABOUT
THIS --
>> NO, CHARLES, THE BEST GUY IS