.
LIZ: WHILE OUR AMERICAN TOP
NEGOTIATORS ARE IN CHINA
WORKING HARD TO ESTABLISH NEW
TRADE RULES, WE'RE BRINGING IN
THE MAN THAT HELPED DEFINE THE
ECONOMIC AND MILITARY
RELATIONSHIP WITH CHINA OVER
DECADES.
MICHAEL PILLSBURY HAS WRITTEN
THE HUNDRED YEAR MARATHON
CHINA'S SECRET STRATEGY TO
REPLACE AMERICA AS THE GLOBAL
SUPERPOWER.
CURRENTLY ADVISING THE TRUMP
ADMINISTRATION AND THE DIRECTOR
FOR THE CENTER FOR CHINESE
STRATEGY AT THE HUDSON
INSTITUTE.
YOU'VE KNOWN ALL ALONG THAT
THIS IS PRECISELY WHAT THE
CHINESE WANTED TO DO.
THEY WANT TO REPLACE US AS THE
GLOBAL SUPERPOWER?
HOW CLOSE ARE THEY?
>> GETTING PRETTY CLOSE.
THEY'RE CLOSING IN ON US.
NOBODY EXPECTED IT TO HAPPEN
THIS FAST, INCLUDING THE
CHINESE.
THEY HAD A TIMETABLE BEFORE
THEY WOULD PULL EVEN WITH US BY
2020, DOUBLE OUR ECONOMY BY
2030, NOW THEY THINK THEY'RE
AHEAD OF SCHEDULE.
YOU HAVE TO ADMIRE THEM, BUT
THEY DIDN'T COUNT ON PRESIDENT
TRUMP.
THIS IS THE ONE THING THEY LEFT
OUT OF MASTER PLAN, THIS BOLD
NEGOTIATOR WHO HAS THEIR
NUMBER, HE'S BEEN THINKING
ABOUT CHINA 15, 20 YEARS
HIMSELF, WRITING ABOUT IT.
THIS IS GOING TO BE INTERESTING
TO SEE WHAT HAPPENS WHEN THE
TWO SUPERPOWERS, IF YOU WILL,
SLOWLY MOVE INTO THE TRADE
FRICTION AND POSSIBLY TRADE
WAR.
LIZ: THERE IS FRICTION BETWEEN
THE U.S. AND CHINA, IT APPEARS
THERE IS FRICTION WITHIN OUR
OWN TEAM.
IT'S NOT NECESSARILY EVERYBODY
HOLDING HANDS AND SINGING
KUMBAYA.
THEY HAVE DIFFERENT OPINIONS,
AND WILBUR ROSS COMES IN WITH A
DIFFERENT PERSPECTIVE, WE HAVE
A COLORFUL PRISM HERE, ARE THE
CHINESE SWALLOWING THIS?
WHAT DO YOU THINK?
>> THEY ARE HAVING A FIELD DAY
TALKING ABOUT DIVISIONS IN THE
AMERICAN DELEGATION, THEY
RECYCLE PUBLICATIONS FROM LARRY
KUDLOW, PETER NAVARRO IS ONE OF
THE DEMONS.
LIZ: HE'S THE HAWK HERE.
>> WILBUR ROSS IS HAWKISH, TOO.
I ADMIRE HIS VIEWS.
I ASKED HIM MR. ROSS HOW MANY
TIMES HAVE YOU BEEN TO CHINA?
I THOUGHT HE WOULD SAY THREE OR
FOUR, YOU KNOW THE CORRECT
ANSWER?
LIZ: 48?
>> 84 TIMES WHEN HE WENT WITH
THE PRESIDENT LAST NOVEMBER,
THAT WAS 85.
THIS IS HIS 86th VISIT TO
CHINA.
HE KNOWS WHAT HE'S DOING.
LIZ: HE WAS DIVING INTO GREECE
EVERY THIRD DAY DURING THE
CRISIS.
THAT'S WHAT HE DOES, HE GOES
INTO AREA AND FINDS A WAY.
WHAT DO THEY NEED TO DO TO
SIMMER DOWN THIS TRADE WAR, AND
IN THE END, THE CHINESE, I
DON'T KNOW, YOU WOULD KNOW
BETTER THAN I, THEY CHEAT AND
REPEAT.
THEY PROMISE THAT THEY WILL
DROP TARIFFS ON U.S. CARS AND
NOTHING HAPPENS.
>> WELL, THEIR LONG-TERM
STRATEGY, THEY SAY, IS TO COPY
WHAT AMERICA DID FROM 1870 TO
1910.
THEY CLAIM WE STOLE IDEAS AND
TECHNOLOGY FROM THE BRITISH AND
THE GERMANS AND WE KIND OF VERY
SNEAKY MANNER BECAME NUMBER ONE
IN THE WORLD.
THEY SAY THEY WANT TO FOLLOW
THE AMERICAN PATH.
THEY SAY THEY'RE GOING TO MAKE
CONCESSIONS.
IT'S BEEN ABOUT A MONTH OF
COMMENTS FROM THE CHINESE SIDE,
SO WE CAN REDUCE THE TARIFFS ON
CARS.
YES, WE CAN OPEN UP OUR SERVICE
SECTOR A LITTLE BIT MORE.
PLEASE BE PATIENT WITH US, WE
WANT REFORMS, BUT THE DIRTY
LITTLE SECRET THAT PRESIDENT
TRUMP KNOWS VERY WELL, ONLY
ABOUT HALF THE ECONOMY IS FREE
MARKET.
OTHER HALF IS STILL UNDER STATE
CONTROL, AND THEY'RE FOCUSING
ON WHAT THEY CALL THE NATIONAL
CHAMPIONS.
TOP 100 COMPANIES IN CHINA,
WHICH ARE NOW GLOBAL FACTORS.
NO ONE SAW THIS COMING.
>> THEY HAVE A PLAN, AND IT'S
NOT A THREE-YEAR PLAN, IT'S A
10, 15, 50 YEAR PLAN WHICH IS
ADMIRABLE.
THIS COUNTRY, THEY ACT LIKE
THEY'RE A BABY AND GIVE US
TIME, BE PATIENT.
THEY'VE BEEN MEMBERS OF THE
WORLD TRADE ORGANIZATION FOR
TEN YEARS, THE SECOND LARGEST
ECONOMY.
IT'S TIME TO GROW UP AND BEHAVE
LIKE AN ADULT COUNTRY, RIGHT?
>> YES, THE GOOD NEWS IS
THERE'S A DEBATE GOING ON IN
BEIJING, ECONOMIC HAWKS WHO
WANT TO BE TOUGH, THEY
COMPLAINED THIS MORNING ABOUT
BULLYING AND ALREADY TO SAY
SOME HARSH THINGS TOMORROW TO
THE DELEGATION ON THE LAST DAY,
BUT THERE'S REFORMERS IN CHINA.
UNFORTUNATELY SOME OF THEM IN
JAIL.
BUT THE REFORMERS WANT TO GO
ALL THE WAY WITH THE FREE
MARKET.
THEY WANT TO BE LIKE AMERICA
AFTER 1910.
THIS GROUP IS IN A POSITION TO
HELP US, BUT SO FAR PRESIDENT
XI IS BASICALLY SIDING WITH THE
HAWKS AND DOESN'T WANT TO MAKE
ANY SERIOUS CONCESSIONS, THAT'S
THE PROBLEM.
LIZ: MICHAEL, HAVE YOU ADVISED
EVERYONE FROM PRESIDENT REAGAN
TO CARTER TO THE BUSHES TO
CLINTON, I BELIEVE OBAMA,
EVERYBODY.
>> I HAVE A LOT TO ANSWER FOR.
LIZ: THEY'RE ALL BLAMING YOU.
WHO'S GOING TO BE SUCCESSFUL
HERE?
WILL IT BE PRESIDENT TRUMP?
>> IN THE END, I THINK THERE'S
GOING TO BE SOME VICTORIES BY
PRESIDENT TRUMP.
HE'S ON THE RIGHT TRACK TO
FOCUS ON TECHNOLOGY, SUPREMACY.
WE CAN'T LET THEM STEAL OUR
BEST TRADE SECRETS AND REMARKET
IT TO THE WORLD.
THAT'S THE HARDEST NOT TO
CRACK, AND PRESIDENT TRUMP IS
READY TO FOCUS ON DENYING
TECHNOLOGY SUPREMACY TO CHINA.
HE'S ON THE RIGHT TRACK.
LIZ: I'M SURE WILBUR HAS A
PULLOUT COUCH IN HIS HOTEL