CHERYL: NEARLY TWO MONTHS AFTER
U.S. COMMERCE DEPARTMENT BLOCKS
AMERICAN FIRMS FROM SELLING
SERVICES TO CHINESE FIRMS BT --
CTE COMMERCE SECRETARY WILBUR
ROSS ANNOUNCED A SETTLEMENT
BETWEEN THE U.S. AND THE CHINESE
SMARTPHONE MAKER.
THE COMMERCE SECRETARY ZTE WILL
PAY 1 BILLION-DOLLAR FINE AND
WILL HAVE A CHINESE SPEAKING
U.S. COMPLIANCE TEAM REPORTING
TO THE COMPANY'S NEW MANAGEMENT
TEAM AND THE COMMERCE DEPARTMENT
FOR THE NEXT 10 YEARS.
IS THIS A WIN FOR PRESIDENT
TRUMP OR A DEAL THAT NEVER
SHOULD HAVE BEEN MADE?
LET'S BRING A CONTRIBUTOR CEO
ROBERT WOLF.
GOOD TO SEE YOU.
WAS THIS A GOOD OR A BAD DEAL?
>> IF I SAID TO YOU FORGET THAT
YOU KNEW ABOUT THE DEAL BUT
HECTIC ON BAND THE COMPANY ON
ITS MILITARY RACES AND AN ENTIRE
COUNTRY WAS SCARED ABOUT PRIVACY
AND INTELLECTUAL PRIVACY BEING
TAKEN BY CHINA AND THAT I TOLD
YOU WHAT AMOUNT OF MONEY WOULD
YOU SAY OKAY TO THAT MOST OF YOU
WOULD SAY THERE'S NO AMOUNT OF
MONEY.
DURING A MILLION-DOLLAR DEAL
WITH SOMEONE LIKE ZTE THAT HAD
SANCTIONS IN THE U.S. BECAUSE OF
THEIR WORK WITH NORTH KOREA AND
IRAN I WOULD SAY THAT DOESN'T
FEEL GOOD.
FORGET WHAT ROBERT WOLF SAID
THAT IF I EQUALLY SAID TO
SENATOR KENNEDY, SENATOR COTTON,
SENATOR RUBIO REPUBLICANS,
SENATOR WARNER, SENATOR COONS,
SENATOR SCHUMER FOR ALL ALL OF A
SUDDEN TALKING IN A BIPARTISAN
FASHION YOU WOULD SAY THAT MUST
BE SOMETHING SPECIAL.
AND IN THEN THE LAST THING AS
YOU WERE GOING TO HAVE A BILL BY
7:00 WITH DELAWARE GOING AGAINST
IT AND THEN THE SECOND THING IS
TO HAVE CONGRESSMAN TIM RYAN OF
OHIO TEAMING UP WITH CONGRESSMAN
MIKE HARDAWAY OF TEXAS AND MARCO
RUBIO OF FLORIDA ALL GOING
AGAINST THIS SAYS TO ME I WOULD
SAY THIS IS ONE TIME IT'S FEELS
LIKE BIPARTISANSHIP MAY BE
WORKING.
DOESN'T FEEL TO ME LIKE THIS IS
A DEAL THAT SHOULD HAVE BEEN
DONE.
CHERYL: TO YOUR POINT REMEMBER
WHEN ALL OF THOSE GENERALS WERE
IN FRONT OF CONGRESS TWO OR
THREE WEEKS AGO NOW THEY ALL HAD
A ZTE -- THAT'S A GOOD POINT
ABOUT THAT BUTTERY SURPRISE
CHINA AGREE TO THIS BECAUSE
FINANCIALLY THE COMPANY -- .
>> NOT AT ALL.
A MILLION DOLLARS IS TRIVIAL
WITH RESPECT TO CHINA.
NUMBER TWO, NO DISRESPECT TO
SECRETARY ROSS BUT I THINK WHEN
HE MADE A MESS -- A STATEMENT
THIS ISN'T ABOUT TRADE THAT'S
RIDICULOUS.
THIS IS ALL ABOUT THE CHINA
TRADE WARS AND BRING A DEAL
TOGETHER IN THE SECOND THING IS
THE TIMING.
PRESIDENT TRUMP'S GOING TO NORTH
KOREA.
THIS PUTS THEM IN A LITTLE
BETTER SITUATION WITH CHINA
GIVING THEM SOMETHING THEY WANT
SO THERE IS A REASON TO THE
TIMING.
THIS PRESIDENT IS VERY
TRANSACTIONAL SO I THINK
ALTHOUGH FROM MY PERSPECTIVE IT
WASN'T IDEAL THERE OTHER THINGS
THAT ARE POST-HISTORY.
CHERYL: WHERE DOES THIS FIT ON
THE BROADER SCHEME OF THINGS?
WILBUR ROSS JUST CAME BACK FROM
CHINA.
MAYBE THIS IS THE ONLY THING
THAT SOMEONE AGREED UPON
OTHERWISE THEY DON'T SEEM TO BE
ABLE TO GET ANYWHERE WITH THE
POTENTIAL TRADE WERE WITH CHINA
AND THE THINGS WE HAVE ACCUSED
HIM OF AND THEY DON'T SEEM TO BE
WILLING TO NEGOTIATE.
>> SO FAR DOESN'T SEEM TO ME
THAT WE HAVE GONE IN ANY
POSITIVE FOR SPECS WITH REGARD
TO CHINA TRADE.
THEY WANT TO BUY HER AGRICULTURE
ANYWAY SO TO ME THE IDEA THAT
OUR TARIFFS VERSUS THEIR TARIFFS
IS NOT A WAY FOR US TO PROCEED.
WHAT I REALLY DON'T LIKE IS WE
HAVE BEEN ATTACKING MEXICO AND
CANADA ARE ALLIES THAN WE HAVE
BEEN TOUGH ON CHINA.
TO ME I'M TRYING TO FOLLOW IT.
THERE SEEMS TO BE A LOT OF
PIVOTS AND DIFFERENT PATHS
TAKEN.
IF I WAS ADVISING THIS PRESIDENT
IS NOT WHAT I WOULD RECOMMEND.
CHERYL: YOU HAVE EXPERIENCE IN
YOU KNOW WHAT IT'S LIKE TO DO
BUSINESS WITH CHINESE FIRMS.
WHAT WOULD YOUR ADVICE BE?
>> TWO DIFFERENT QUESTIONS.
ONE I'VE BEEN A THREE-TIME
PRESIDENTIAL APPOINTEE SO I'VE
HAD THE ABILITY TO ADVISE.
I'M A SUPPORTER OF FAIR TRADE
AND I THINK THE BEST THING WOULD
HAVE BEEN FOR THIS PRESIDENT TO
STAY WITH THE TRANSPACIFIC
PARTNERSHIP BECAUSE THE BEST WAY
TO COMBAT CHINA IS TO DO TRADE
WITH THE 11 COUNTRIES THAT
SURROUND CHART OR NOT NEW
ZEALAND PHILIPPINES VIETNAM.
THAT'S THE BEST WAY TO COMBAT
THEM IS TO TRADE AROUND THEM.
I HAVE NO ISSUE WITH PRESIDENT
TRUMP GOING AFTER CERTAIN
TARIFFS BUT THAT'S NOT GOING TO
CHANGE INTELLECTUAL PROPERTY AND
PRIVACY CONCERNS WHICH IS THE
BIGGEST CONCERN WE HAVE RIGHT
NOW.
ALL THE ZTE DEAL DOES IS
HIGHLIGHT THAT.
CHERYL: REALLY QUICK SINCE WE
ARE TALKING ABOUT CHINA I WANT
TO ASK YOU ABOUT CHINA'S ROLE IN
THE SUMMIT WITH NORTH KOREA
COMING UP ON TUESDAY.
OBVIOUSLY CHINA SEEMS TO HAVE A
VERY PIVOTAL ROLE.
WITH THEIR NEIGHBORS WITH NORTH
KOREA.
THEY LOOKED TO NORTH KOREA FOR
LABOR.
THEY CAN BE THE NORTH KOREANS
BEST FRIEND OR THEIR WORST
ENEMY.
>> I WANT TO BE CLEAR I SUPPORT
PRESIDENT TRUMP AND THE
DIPLOMATIC APPROACH TO NORTH
KOREA.
DIPLOMACY IS A GOOD THING AND
I'M GLAD HE IS SITTING DOWN WITH
THEM.
I WISH THERE WERE SOME
PRECONDITIONS TO IT.
THAT BEING SAID IT'S BETTER TO
HAVE ONE STEP FORWARD THAN NO
STEPS FORWARD.
WITH RESPECT TO CHINA THEY ARE
THE MOST IMPORTANT PLAYER IN THE
ROOM AT THE END OF THE DAY.
THERE'S CERTAIN THINGS THAT
PRESIDENT TRUMP IS NOT GOING TO
GIVE UP.
NOT GOING TO GIVE UP ON
DENUCLEARIZATION.
HE'S NOT GOING TO GIVE UP ON THE
DEMILITARIZATION ZONES.
AT THAT BEING SAID IT'S UP TO
CHINA TO START WITH THEM,
PUTTING THE PRESSURE ON.
WE NEED CHINA TO BE A GOOD
CITIZEN.
CHERYL: BEFORE WE GO I HAVE TO
PIVOT.
WOULD HE MAKE OF THE WARREN
BUFFETT JAMIE DIMON LETTER
TALKING ABOUT PRESSURE ON
COMPANIES PUTTING OUT QUARTERLY
RESULTS.
IT'S NOT ABOUT THE SHORT TERM
GAMES BUT THE LONG-TERM GAINS.
WHAT DO YOU MAKE OF THAT?
>> HE I WAS PART OF A PUBLIC
COMPANY FOR MANY YEARS.
LISTEN WHAT IS INTERESTING IS I
AGREE WITH THEM.
PRESSURE IS BRUTAL.
YOU HAVE THE BIG SHAREHOLDER
CONVERSATIONS.
YOU HAVE THE ANALYSTS
MICROMANAGING WHAT HAPPENS.
IT'S NOT THAT FORWARD-LOOKING SO
I AGREE WITH THE WAY JAMIE DIMON
AND WARREN BUFFETT VIEW THAT.
WE NEED TO THINK MORE ABOUT
WHERE THESE COMPANIES ARE GOING
OVER PERIOD OF TIME VERSUS A DAY
AND TIME.
I DON'T THINK THAT'S GOING TO
CHANGE BECAUSE AT THE END OF THE
DAY SHAREHOLDERS WANT MORE
INFORMATION, NOT LESS.
CHERYL: THE STREET LIVES FOR IT.