UNCERTAINTY THIS MARKET HAS
COME BACK WE ARE EXPECTING
PERHAPS A HIGHER OPENING FOR
THE BROADER AVERAGES THIS
MORNING WE WILL SEE GET TO IF
TOP STORY RIGHT NOW TRADE WAR
FEARS HITTING GLOBAL MARKETS
STOCKS ACROSS ASIA TUMBLING
FOLLOWING WALL STREET DOW
JONES INDUSTRIAL AVERAGE DOWN
MORE THAN 700 POINTS AFTER
PRESIDENT TRUMP PROPOSED
TARIFFS UP TO 6 O BILLION
DOLLARS ON IMPORTS FROM CHINA
WITH WITH TIGHTER RESTRICTIONS
ON DOWN'S ACQUISITION
TECHNOLOGY TRANSFERS IN
RESPONSE TO WHAT THE
ADMINISTRATION IS CALLING
CHINA'S UNFAIR TRADING
PRACTICES.
>> WE'RE DOING THINGS FOR THIS
COUNTRY THAT SHOULD HAVE BEEN
DONE FOR MANY, MANY YEARS.
WE'VE HAD THIS ABUSE BY MANY
OTHER COUNTRIES AND GROUPS OF
COUNTRIES PUT TOGETHER IN
ORDER TO TAKE ADVANTAGE OF THE
UNITED STATES.
AND WE DON'T WANT THAT TO
HAPPEN WE'RE NOT GOING TO LET
THAT HAPPEN.
IT IS PROBABLY ONE OF THE
REASONS I WAS ELECTED MAYBE
ONE OF THE MAIN REASONS.
>> HOURS LATER CHINESE
GOVERNMENT FIGHTERED BACK
SAYING THAT IT PLANS TO ROLL
OUT RETALIATORY TARIFFS UP TO
3 BILLION DOLLARS ON U.S.
GOODS, IN RESPONSE TO THE
TARIFFS ON STEEL AND ALUMINUM,
THOSE TARIFFS GO INTO AFFECT
TODAY U.S. SAYS SOME CANADA
MEXICO EU OTHERS WILL GET A
BRIEFS EXEMPTION FROM THOSE
TARIFFS JOINING US THE AUTHOR
OF THE COMING COLLAPSE OF
FORTUNE ARE A GORDAN CHANG
THANKS VERY MUCH FOR TIME
CHINA RETALIATING WHAT IS YOUR
TAKE ON ALL OF THIS?
>> WELL, IT WAS A VERY SMALL
RETALIATION, THREE BILLION
DOLLARS, 128 PRODUCTS WE'VE
GOT TO REMEMBER CHINESE
AMBASSADOR TO THE U.S. SAYS
LOOK, YOU KNOW IF WE'RE GOING
TO HAVE TIT-FOR-TAT ACTION
LET'S SEE WHO LASTS LONGER I
KNOW WHO LASTS LONGER THE
UNITED STATES BECAUSE WE ARE
THE TRADE DEFICIT COUNTRY,
CHINA NEEDS US MUCH MORE THAN
WE NEED THEM, YOU KNOW LAST
YEAR, 88.8% OF THEIR OVERALL
MERCHANDISE STRAYED SURPLUS
RELATED TO SALES TO US, YOU
KNOW WE HOLD HARD CARDS IN A
TRADE WAR.
MARIA: THEY NEED US MORE THAN
WE NEED THEM WE'RE TALKING
ABOUT 375-BILLION-DOLLAR
DEFICIT, ARE THEY GOING TO
THREATEN THAT SURPLUS RAMPING
THIS UP OR DO YOU SEE HE THREE
BILLION DOLLARS IN TARIFFS AS
SORT OF SOFT MOVE?
NOT -- YOU ARE TALKING -- IN
U.S. THREE BILLION IN CHINA
HOW SHOULD WE READ THAT.
>> I ACTUALLY THINK WHAT WHAT
WE'RE SEEING CHINESE TRYING TO
SAY WE WILL HURT YOU NOT TO A
MUCH WE DON'T WANT TO YOU
REALLY GET ANGRY I THINK, THAT
PRESIDENT TRUMP, HAS A LOT OF
POLITICAL WILL, THAT IS REALLY
WHAT IS IMPORTANT IN A
SITUATION LIKE THIS, BECAUSE,
YOU KNOW FUNDAMENTALLY, WE YOU
KNOW A LOT OF PEOPLE CRITICIZE
PRESIDENT ON TARIFFS STEEL,
ALUMINUM NOW 301, THE POINT IS
WE'VE GOT TO TRADE OUTLAW AT
CENTER OF THE SYSTEM OF GLOBAL
COMMERCE THAT IS CHINA, WE
HAVE TRIED TO ENTICE CHINESE
INTO ACCEPTING NORMS RULED IN
INTERNATIONAL CONGRESS THEY
WON'T DO THAT ABOUT AS A
MATTER OF FACT GETTING WORSE
MORE PREDATORY MORE MERE CAN'T
TILLESS, SOMEONE HAS TO DO
SOMETHING IF THEY DON'T
TRADING SYSTEM THAT WE'VE HAD
SINCE THE END OF WORLD WAR II
IS JUST NOT GOING TO SURVIVE.
MARIA: YEAH WANT TO POINT OUT
MARKETS HERE WE HAD BEEN DOWN
EARLIER IN THE PROGRAM GORDON
200 POINTS ON DOW JONES
INDUSTRIAL AVERAGE WHEN FIRST
NAVIGATING THROUGH NEWS FROM
CHINA RETALIATORY MOVES MARKET
COMPLETELY REVERSINGED COURSE
NOW A GAIN START OF TRADING 57
POINTS ON DOW INDUSTRIALS, AND
7 POINTS HI ON S&P 500 DO YOU
THINK THIS IS A NEGOTIATING
MOVE BY THIS PRESIDENT?
I MEAN ALSO PUTTING
RESTRICTIONS ON WHAT CHINA CAN
ACQUIRE HOW MUCH.
BY THE WAY, THAT IS WHAT CHINA
DOES RIGHT?
I MEAN, AMERICAN COMPANIES
CAN'T GO TO CHINA AND OWN MORE
THAN 489% OF ANYTHING, BY THE
WAY, THEY -- 49% OF ANYTHING
CAN'T OWN A COMPANY WITH A
JOINT VENTURE.
>> THAT JOINT VENTURE POINT IS
CRUCIAL AT HART OF 60 BILLION
DOLLARS LOSS OF U.S.
INTELLECTUAL PROPERTY YOU KNOW
WE LOOK AT NUMBERS ANNUALLY
STAGGERING, BETWEEN 225 TO 600
BILLION DOLLARS ANNUAL LOSS
U.S. INTELLECTUAL PROPERTY.
MOST OF THAT IS RELATED TO
CHINA, THIS IS SOMETHING THAT
COMES FROM THE BIPARTISAN
BLAIR HUNTSMAN COMMISSION 2017
UPDATE TO 2013 REPORT THIS
LAST, STAGGERING PEOPLE WHO
DON'T LIKE WHAT THE PRESIDENT
IS DOING, HAVE GOT TO COME UP
WITH A BETTER WAY, YOU KNOW IT
IS FINE TO SAY LOOK, WE SHOULD
ALIGN OUR INTERESTS WITH CHINA
SHOULD HAVE CONSULTATIONS BUT
WE HAVE BEEN DOING THAT AND
TRADE AREA IN TERMS OF SINCE
END OF 1990'S HASN'T WORKED.
>> I AM TOLD THAT THE
PRESIDENT WANTS TO CUT THE
DEFICIT THE TRADE DEFICIT DOWN
BY 50 BILLION DOLLARS WITH
CHINA.
I AM TOLD RIGHT NOW 375
BILLION I AM TOLD HE WANTS TO
GET IT DOWN, TO 325 OR 300
BILLION WILL HE BE SUCCESSFUL
BEFORE ANOTHER SUBJECT GORDON.
>> I THINK WE WILL OVERTIME WE
O HOLD HIGH CARDS I THINK
PEOPLE IN UNITED STATES HAVE
GOTTEN TIRED TALKING TO
CHINESE NOW WANT TO IMPOSE
COSTS ABSOLUTELY RIGHT WAY OF
DEALING WITH THIS SITUATION.
>> THERE IS MORE TURNOVER AT
WHITE HOUSE MARKETS REACTED
YESTERDAY WHEN PRESIDENT
ANNOUNCED REPLACING NATIONAL
SECURITY ADVISORY H.R.
MCMASTER WITH FORMER U.S.
AMBASSADOR JOHN BOLTON THIRD
PERSON TO FILL THAT ROLE THAT
APPOINTMENT, BOTH IN
POTENTIALLY WHAT COULD THAT
MEAN FOR AMERICAN FOREIGN
POLICY AS RELATES TO ASIA IN
YOUR VIEW?
I THINK HE FOREIGN POLICY WILL
WILL BECOME MUCH MORE RECESS
DUTY AMBASSADOR BOLTON
UNDERSTANDS THE PRIMARY
PROBLEM THE WORLD HAS IN ASIA
AND, OF COURSE, U.S. AS WELL
IS CHINA BOLTON HAS VIEWS
ABOUT CHINA I THINK ALIGN
CLOSELY WITH PRESIDENT TRUMP'S
THAT IS GOING TO BE GOOD,
BECAUSE THE PROBLEM THAT H.R.
MCMASTER HAD WAS ON CERTAIN
CRITICAL ISSUES DIDN'T SEE THE
WORLD THE SAME WAY THE
PRESIDENT DID EVERY PRESIDENT
DESERVES A NATIONAL SECURITY
ADVISORY WHO SHARES THIS IS
VIEWS.
>> WHAT IS YOUR TAKE IN TERMS
OF COMING UP, POTENTIAL
MEETING WITH THE LEADER OF
NORTH KOREA?
GORDON?
DO YOU THINK THIS HAPPENS IN
MAY?
>> I DON'T KNOW IF IT HAPPENS
IN MAY.
BUT IT CERTAINLY HAPPENS THE
REASON IS THAT KIM JONG-UN THE
LEADER OF NORTH KOREA NEEDS
SANCTIONS RELIEF I THINK
PRESIDENT TRUMP MAY MAY MADE
THE RIGHT DECISION 45 MINUTES
CAME UP WITH THE RIGHT
DECISION TO MEET WITH KIM THE
REASON IS, THAT KIM JONG-UN IN
ADDITION TO SANCTIONS RELIEF
WANTS TO DRIVE A WEDGE BETWEEN
SEOUL AND WASHINGTON MOON
JAYEN WAJTS THIS SUMMIT GOING
TO HAPPEN IF WE SAY STRONG
WITH SOUTH KOREA WE AL GET
ACCEPTABLE OUTCOMES MAY BE
GOOD ONES.
>> CHINA WATCHING AS WELL LOW
THE PRESIDENT PUTS INTO WHICH
ROLE.
YOU SAY JANE BOLTON WILL BE
MORE RESOLUTE WHAT DOES THAT
MEAN IN TERMS OF HOW U.S.
CHANGES STRATEGY IN ASIA.
>> I THINK WHAT WE'RE GOING TO
SEE A A MUCH MORE
CONFRONTATIONAL POSTURE WITH
REGARD TO CHINESE, CHINA
TRYING TO CLOSE OFF THE GLOBAL
COMMON SENSE TRYING TO GRAB
TERRITORY FROM NEIGHBORS
CHALLENGING U.S. ACROSS THE
BOARD EVEN ATTACKING OUR
SYSTEM OF GOVERNMENT I DON'T
THINK JOHN BOLTON WILL PUT UP
WITH THAT.
>> YEAH.
A LOT OF THESE THINGS HAVE
BEEN KNOWN FOR A LONG TIME,
RIGHT?
I MEAN EVERYBODY GETS IT WHEN
YOU SAY YEAH CHINA STEALS OUR
STUFF SEALING INTELLECTUAL
PROPERTY BUSINESSES HAVE BEEN
TAKING THIS, FOR DECADES.
>> YEAH, I MEAN INDIVIDUAL
BUSINESSES CAN'T STAND UP TO
BEIJING.
>> WRUT.
>> WE SHOULDN'T EXPECT THEM TO
WE SHOULD EXPECT PRESIDENT OF
THE UNITED STATES TO PROTECT
AMERICAN WORKS AMERICAN
BUSINESSES UNFORTUNATELY YOU
KNOW WE'VE HAD THIS VIEW OF
OH, LET'S JUST TALK TO
CHINESE, LET'S TRY TO GET THEM
TO SEE THEIR BETTER INTERESTS
YEAH THEY SHOULD SEE THEIR
BETTER INTERESTS BUT THEY
DON'T YOU NOW HAVE A PRESIDENT
IN PRESIDENT TRUMP SAYS LOOK
WE'VE GOT TO TRY SOMETHING
DIFFERENT MIGHT NOT WORK BUT
IF WE DO THE OLD THINGS, WE
KNOW WE'RE GOING TO FAIL SO I
THINK THAT WE SHOULD ALL BE
APPLAUDING WHEN PRESIDENT
TRUMP IS DOING IN THIS REGARD
TRYING SOMETHING NEW.
MARIA: ALL RIGHT.