.
>> WHEN THEY MAKE A CAR IN
OKAY.
SO WE GET 2.5%.
CHINA GETS 25%.
STUPID OR NOT, INVESTORS
FEELING THE PAIN MONDAY AS THE
DOW PLUNGED ALMOST 500 POINTS
BEFORE CLOSING DOWN 1.3% ON THE
TRADE FEARS.
DUE TO THAT SELL-OFF, OUR NEXT
THEY CAN INFLICT ON US.
LET'S BRING IN AEI RESIDENT
SCHOLAR AND CHINA INVESTMENT
GLOBAL TRACKER DEREK SCISSORS,
FAIR TO SAY YOU KNOW SOMETHING
ABOUT CHINA.
THANK YOU, DEREK, FOR JOINING
US.
IN A WAR LIKE THIS, WHO WINS,
PRESIDENT XI OR PRESIDENT
TRUMP.
>> IF YOU HAVE TO PICK ONE,
PRESIDENT TRUMP.
THE MORE SERIOUS THE TRADE
CONFLICT, IS THE MORE THE U.S.
WINS, PRESIDENT TRUMP IS RIGHT
ABOUT THAT.
CHINA DEPENDS MUCH MORE ON THE
HURT OURSELVES.
TRADE WAR.
IF IT'S A TRADE WAR, WE ARE
GOING TO WIN IT.
ASHLEY: IS THE PRESIDENT IN
YOUR MIND GOING ABOUT IT THE
RIGHT WAY?
HE'S HIGHLIGHTING THE
INEQUALITY OF THE TRADE.
FACT IT'S NOT A LEVEL PLAYING
FIELD.
DOING IT A VERY PUBLIC WAY AND
CALLING OUT THE CHINESE, AND WE
KNOW THAT SAVING PUBLIC FACE IS
VERY IMPORTANT TO THE CHINESE
CULTURE.
VERY WELL, THAT YOU SHOULDN'T
CRITICIZE THE CHINESE IN
ADMINISTRATION, THE CLINTON
ADMINISTRATION, THEY TRIED TO
PARTNER FOR THE UNITED STATES.
PRESIDENT TRUMP IS FACING
FRUSTRATION THAT MANY AMERICANS
FEEL INCLUDING THOSE WHO FOLLOW
CHINA.
WE TRIED TO TALK TO YOU IN
PRIVATE, IT DIDN'T WORK.
YOU DON'T LIKE BEING HUMILIATED
IN PUBLIC, BUT YOU GIVE US NO
CHOICE.
ASHLEY: WE HEARD THE CHINESE
ARE GOING TO IMPOSE 25% TAX ON
AUTO IMPORTS, THAT WILL ADD
SIGNIFICANTLY TO CONSUMER
COSTS, AS IT WILL TO OTHER
PEOPLE WILL AGREE WITH THE
PRESIDENT IT'S NOT FAIR BUT
>> THAT'S, I THINK WHERE THE
PRESIDENT CAN BE CRITICIZED.
HE'S IDENTIFIED A SERIOUS
PROBLEM THAT WE'RE OVERDUE TO
TAKE ACTION ON BUT THERE'S NO
REASON TO IMPOSE TARIFFS ON
GOODS COMING INTO THE UNITED
STATES AND DRIVE UP PRICES FOR
CONSUMERS AND AMERICAN
COMPANIES WHO USE THE GOODS IN
THEIR OWN PRODUCTION.
WE CAN TARGET CHINESE FIRMS
MUCH MORE PRECISELY THAN THAT.
TAKE BIG CHINESE FIRMS LIKE ZTE
WE'RE GOING TO PUT THOSE FIRMS
OUT OF BUSINESS.
NOT EVERYTHING PRODUCED IN
CHINA GETS A TARIFF.
THAT'S A BETTER WAY TO PROCEED
RATHER THAN HOW THE
ADMINISTRATION IS GOING SO FAR.
ASHLEY: DO WE BRING CHINA ON
THE NEGOTIATING LEVEL ON A
SUBSTANTIAL LEVEL.
HASH THIS OUT, ONCE ALL THE
TWEETS HAVE GONE BACK AND FORTH
AND THE STATEMENTS, ULTIMATELY
CAN WE COME TO SOME SORT OF
AGREEMENT THAT IS EQUITABLE FOR
EVERYONE?
>> THIS IS TOUGH BECAUSE THE
THEY DO STEAL AMERICAN
INTELLECTUAL PROPERTY.
THEY SUBSIDIZE THEIR OWN
PRODUCTION AND EXPECT US NOT TO
SUBSIDIZE OUR PRODUCTION.
I DON'T WANT TO SUBSIDIZE OUR
PRODUCTION, I WANT THEM TO
HARD TO GET SOMEONE TO
NEGOTIATE CHANGES WHEN YOU ARE
DOING THE RIGHT THING AND
THEY'RE DOING THE WRONG THING.
I WOULD SAY WE CAN BRING THE
CHINESE TO THE NEGOTIATING
TABLE BUT IT'S GOING TO TAKE A
LONG TIME AND TAKE A LOT OF
UNCERTAINTY THAT THE STOCK
MARKET AND CONSUMERS AND
AMERICAN COMPANIES HAVE TO
FACE.
ASHLEY: AND YOU KNOW WHAT,
THEY'RE USED TO PLAYING THE
LONG GAME.
THEY GOT INTO THE WTO IN 2001
THEIR MARKETS.
AND YET HERE WE ARE.
17 YEARS LATER, AND I WOULDN'T
SAY THE CHINESE MARKETS ARE
PARTICULARLY OPEN AT ALL.
WOULD YOU AGREE?
>> YEAH, YOU KNOW, I'VE SAID
THIS BEFORE, NOBODY CARED WHAT
I THOUGHT IN 2001, I THOUGHT IT
WAS A GOOD IDEA TO LET CHINA IN
IDEA, THEY'RE NOT THE PARTNER
WE THOUGHT THEY WERE.
WE WERE NEGOTIATING BACK THEN
IN GOOD FAITH, MAYBE THEY WERE
WTO.
YOU LET SOMEONE INTO A CLUB WHO
DOESN'T BELIEVE IN FAIR TRADE.
ASHLEY: VERY QUICKLY, DOES THIS
GET REVOLVED IN THE U.S. FAVOR
OR THE MORE EQUITABLE SITUATION
FOR THE U.S.?
THINK IT'S A SMALL IMPROVEMENT
WE TAKE ONE STEP FORWARD BUT