DISINFORMATION ABOUT THE CORONAVIRUS.
CORONAVIRUS. >> SHANNON: THANK YOU.
SO WHILE CHINA TRIES TO POINT
THE FINGER OF BLAME AT THE U.S.
SOME IN THE MEDIA ARE CALLING
OUT PEOPLE FOR LABELING THE
VIRUS THE SAME WAY THAT MANY OF
THEM DID JUST WEEKS AGO.
>> YOU’RE STARTING TO HEAR THE
REPUBLICANS, ESPECIALLY TRUMP,
CALLING AT THIS TIME WUHAN, OR
THE CHINESE CORONAVIRUS.
>> THE CHINESE CORONAVIRUS.
>> COVID-19, A FOREIGN VIRUS.
>> A FOREIGN VIRUS.
>> FOREIGN VIRUS.
>> AS A "FOREIGN VIRUS," IT’S
GOING TO COME ACROSS TO A LOT OF
AMERICANS AS SMACKING OF
XENOPHOBIA.
XENOPHOBIA. >> THEY ARE LOOKING FOR SOMEONE
TO BLAME.
TO BLAME. >> SHANNON: OKAY.
DR. MICHAEL -- DIRECTOR OF THE
CENTER ON CHINESE STRATEGY AT
THE HUDSON INSTITUTE IS HERE TO
JOIN US.
JOIN US. ALWAYS GREAT TO HAVE YOU,
DOCTOR.
DOCTOR. >> THANKS.
>> THANKS. >> SHANNON: RIGHT BEFORE YOU
JOINED US TONIGHT, YOU TWEETED
AND LINKED TO THIS ARTICLE OUT
OF CHINA DAILY THAT TALKS ABOUT
THE CHINESE ARE NOW WILLING TO
WORK WITH THE U.S. AND OTHER
PLACES WHEN IT COMES TO
VACCINES.
VACCINES. I HAVE TO READ A QUOTE FROM YOU
ONE OF THE OFFICIALS.
IT IS MORE IMPORTANT NOW THAN
EVER FOR THE INTERNATIONAL
COMMUNITY TO STRENGTHEN
SCIENTIFIC OPERATIONS.
>> ARE YOU SURPRISED BY THAT OR NO?
NO? >> I WAS VERY SURPRISED.
IT REVEALED THE THREE FIELD
TRIALS THAT THEY ARE WORKING ON,
THREE DIFFERENT KINDS OF
VACCINES, WITH AMERICAN
COMPANIES, AS THEIR PARTNERS IN
EACH CASE.
EACH CASE. THEY ARE ALSO WORKING ON TESTING
A DRUG THAT THE FDA HASN’T
APPROVED YET IN THE U.S., BUT
THEY SAY THEY ARE TESTING 250
CHINESE TO SEE HOW MUCH IT
DAMPENS DOWN THE VIRUS.
THIS WHOLE THING, SHANNON IS
WHAT PRESIDENT TRUMP HAS BEEN
SUCCESSFUL AT IN THE LAST THREE
YEARS, TRYING TO BALANCE THE
CHINESE NATIONALISM, HARDLINE
ATTACKS ON US, TRYING TO
UNDERMINE US AROUND THE WORLD,
WITH THEIR DISINFORMATION
CAMPAIGN.
CAMPAIGN. ON THE OTHER HAND THEY HOLD OUT
LOTS OF REALLY HELPFUL THINGS,
VERY HELPFUL INFORMATION,
BASICALLY HINTING THAT THEY CAN
BE OUR PARTNER IF WE WOULD JUST
EASE OFF ON THE TRADE TALKS.
SO THE PRESIDENT HAS TO BALANCE
THESE TWO SIDES OF THE EQUATION.
>> SHANNON: THERE IS A LOT OF
TALK ABOUT THE SUPPLY CHAIN
ISSUES WITH CHINA.
WE’RE RELIANT ON THEM NOT ONLY
DRUGS BUT ALL KINDS OF OTHER
THINGS THAT WE MANUFACTURE IN
CHINA.
CHINA. IT’S CHEAPER THERE.
THE RULES ARE DIFFERENT THERE.
IN A PIECE ON FOX NEWS, ON
OPINION, BEN SHAPIRO SAYS THE
SOLUTION TO VULNERABLE SUPPLY
CHAINS RUNNING THROUGH
AUTHORITARIAN COUNTRIES IS
FIRST, FOR WESTERN COUNTRIES TO
CONSIDER, SECURITY THREATS WHEN
FORMULATING TRADE POLICY, AND
SECOND, FOR COMPANIES TO HARDEN
THEIR SUPPLY CHAINS BY
DIVERSIFYING THOSE CHAINS EVEN
FURTHER.
FURTHER. WE SHOULD REMEMBER THAT CRISES
EXACERBATE UNDERLYING ISSUES.
THEY RARELY CREATE THEM.
SO HOW DO WE GET TO THIS PLACE
THAT WE NOW HAVE A GLOBAL
PANDEMIC AND WE’RE DEPENDENT ON
CHINA FOR CERTAIN THINGS?
>> ONE THING THE PRESIDENT HAS
SAID, THAT THE CHINESE ADMIRE,
HE SAID, THIS IS NOT THE FAULT
OF CHINA.
OF CHINA. I DON’T BLAME THE CHINESE FOR
TRYING TO BECOME THE NUMBER ONE
POWER IN THE WORLD.
HE SAID, I BLAME PREVIOUS
AMERICAN PRESIDENTS FOR LETTING
THIS HAPPEN.
THIS HAPPEN. SOME OF THE SUPPLY CHAIN
DEPENDENCY GOES BACK MORE THAN
20 YEARS.
20 YEARS. IT’S WORSE THAN THAT.
AS I TRY TO OUTLINE IN HUNDRED
YEAR MARATHON, WE’VE SHARED ALL
OF OUR SCIENTIFIC DISCOVERIES, A
LOT OF OUR NEW TECHNOLOGY WITH
CHINA FOR FREE, BY WRITTEN
AGREEMENT, FOR MORE THAN 30
YEARS.
YEARS. PRESIDENT TRUMP IS TRYING TO CUT
THIS BACK AND REVIEW IT, BUT THE
PROBLEM HAS GONE ON FOR THREE
DECADES NOW.
DECADES NOW. THE BIG NEWS REALLY IS THE
NUMBER OF AMERICANS, LIKE
SENATOR MARK OWE RUBIO AND
OTHERS, WHO ARE WAKING UP AND
SAYING, MY GOD, THIS IS
OUTRAGEOUS BUT WE’RE WAY BEHIND.
THEY ARE ALMOST OUR EQUAL
ECONOMICALLY.
ECONOMICALLY. THEY MAKE SCIENTIFIC DISCOVERIES
NOW THAT WE WONDER WHY WE’RE NOT
DOING THAT, AND FRANKLY, THIS
YEAR, THEY ARE GOING TO LAUNCH
ALMOST TWICE AS MANY SATELLITES
AS WE WILL.
SO THEIR PULLING AHEAD IN A LOT
OF CATEGORIES.
OF CATEGORIES. AND I THINK PRESIDENT TRUMP IS
RIGHT.
RIGHT. THIS HAS TO DO WITH PREVIOUS
AMERICAN PRESIDENTS TOLERATING
IT OR JUST PLAIN NOT KNOWING.
>> SHANNON: SO THE FACT WE HAVE
A BUSINESS MODEL THAT SEEMS AT
THIS POINT, I’M TOLD THE NUMBER
IS AS HIGH AS 80%.
OF PHARMACEUTICALS OR PORTIONS
OF PHARMACEUTICALS THAT ARE
ACTUALLY MANUFACTURED OR
CONTROLLED OR HAVE TO COME
THROUGH CHINA.
THROUGH CHINA. WILL THERE BE, DO YOU THINK,
LONG TERM CHANGES BECAUSE OF
COVID-19, TO THAT, HOW WOULD WE
DO THAT?
DO THAT? IS IT POSSIBLE AT THIS POINT?
>> WELL, THERE HAS BEEN SOME
LEGISLATION ALREADY INTRODUCED
TO REDUCE OUR DEPENDENCY, IT’S
NOT JUST ON PHARMACEUTICALS.
THERE IS QUITE A FEW AREAS WHERE
WE HAVE, BY NEGLIGENCE,
BASICALLY, OR BY LETTING
COMPANIES MAKE THEIR OWN
DECISIONS WE’VE OUTSOURCED A
LARGE PART OF OUR MANUFACTURING
BASE TO CHINA.
WE ALSO SHARED INNOVATION IDEAS
WITH THEM.
WITH THEM. WE’VE SIGNED AGREEMENTS WHERE WE
HAVE TO DO THIS UNLESS THE
AGREEMENTS ARE CHANGED.
FRANKLY, THEIR TECHNOLOGY THEFT
ALSO HAS BEEN VERY FOCUSED,
SHANNON, ON OUR TECHNOLOGY
INNOVATION AREAS.
INNOVATION AREAS. THEY KNOW WHAT THEY ARE DOING.
THIS ISN’T JUST RANDOM THEFT OF
IDEAS.
IDEAS. THEY ARE TRYING TO BECOME NUMBER
ONE IN FIELD BY FIELD, AND THEY
HAVE GOTTEN PRETTY FAR ALREADY.
SO CONGRESS HAS A HUGE ROLE TO
PLAY HERE.
PLAY HERE. >> SHANNON: THEY DO.
DR. MICHAEL PILLSBURY, GREAT TO
HAVE YOU WITH US, SIR.
HAVE GREAT WEEKEND.
>> I’M TRYING TO BE OPTIMISTIC,