>> OTHER NATIONS SEEK TO STEAL,
COPY, OR CONTROL AMERICAN
INTELLECTUAL PROPERTY.
WE HAVE VERY, VERY LITTLE
SAFEGUARDS UP.
WE HAD IN MANY CASES I WOULD
SAY, MARCO, NO SAFEGUARDS AND
NOW WE HAVE PROBABLY THE BEST
THERE IS IN THE WORLD.
I THINK NOT ENOUGH FOCUS WAS PUT
NOT ENOUGH FOCUS ON CHINA AND
OTHER COUNTRIES FRANKLY.
CONNELL: PRESIDENT TRUMP EARLIER
AT THE WHITE HOUSE TALKING ABOUT
AMONG OTHER THINGS,
ADMINISTRATION RESPONSE TO THE
THEFT OF INTELLECTUAL PROPERTY.
AS TRADE TALKS WITH CHINA ARE
UNDERWAY THIS WEEK.
OUR NEXT GUEST HAS BEEN WARNING
ABOUT CHINA'S I.P. THEFT FOR
YEARS AND YEARS.
GORDON CHANG, THE AUTHOR OF,
"THE COMING COLLAPSE OF CHINA."
ALWAYS GOOD TO SEE YOU HERE IN
NEW YORK, GORDON.
THE PRESIDENT IS TALKING ABOUT
THIS TO MARCO RUBIO, JOHN CORNYN
AND OTHERS IN THE WHITE HOUSE.
CHANGE THEIR WAYS?
>> THIS IS VERY DIFFICULT.
INTELLECTUAL PROPERTY THEFT IS
AT THE CORE OF THE CHINESE
SYSTEM.
IT IS MORE THAN THAT JUST THAT.
YOU HAVE A LOT OF STEALING,
CHEATING, LYING BAKED INTO
CHINESE SOCIETY, HAS BEEN FOR
CENTURIES.
WE'LL TRY TO CHANGE THIS OF
COURSE, AND WE ACTUALLY HAVE TO
BECAUSE INNOVATION IS AT THE
INNOVATION WE DON'T HAVE MUCH OF
AN ECONOMY.
LET'S BE HONEST, THEY HAVE A
OF BUSINESS OPPORTUNITY.
THEY MADE THE TRADEOFF, BECAUSE
THEY HAVE TO.
THEY HAVE KIND OF KNOWN THIS IS
GOING ON, HAD NO OTHER OPTIONS.
I WONDER HOW WE DO CHANGE IT.
IS TARIFFS THE ANSWER IN YOUR
VIEW?
>> IF WE DON'T HAVE TARIFFS, THE
QUESTION IS WHAT?
CONNELL: EXACTLY.
TERRORISTS.
THEY MAKE COMPLAINTS BIT, BUT
THE POINT IS YOU HAVE GOT TO DO
SOMETHING, YOU HAVE TO IMPOSE A
COST ON THE CHINESE.
MORE DRASTIC.
WE MAY VERY WELL GET THERE,
CONNELL --
CONNELL: REALLY?
>> A NUMBER OF PEOPLE ARE
TALKING ABOUT THIS.
THERE IS A LONG PROGRESSION OF
THINGS WE'RE DOING.
WE FIRST STARTED TO TALK WITH
THE CHINESE.
THEN WE HAD AGREEMENTS.
THE CHINESE DIDN'T HONOR THEM.
SO PRESIDENT TRUMP YOU PUTS ON
TARIFFS.
THE NEXT PROGRESSION WHICH IS
SOMETHING MORE STRINGENT.
BUT AT SOME POINT WE HAVE TO DO
THIS, THIS IS CORE TO OUR
ECONOMY RIGHT NOW.
CONNELL: NOW ONE OF THE AREAS
THAT ALWAYS WORKS INTO THIS
CONVERSATION IS NORTH KOREA
BECAUSE, THE PRESIDENT KIND OF
HAD SAID HE HELD BACK ON CHINA A
LITTLE BIT, HOPING HE WOULD GET
THEIR HELP WITH NORTH KOREA.
NOT SURE HOW WELL THAT WORKED
OUT.
WANT TO ASK YOU ABOUT THAT IN A
HE WILL NOT MEET HOWEVER, WE'RE
TOLD WITH CHAIRMAN KIM.
WHAT CAN WE EXPECT OUT OF THAT
NORTH KOREA AND CHINA?
>> I'M NOT EXPECTING VERY MUCH
FROM THE VISIT.
PRESIDENT TRUMP.
PRESIDENT TRUMP EXPECTED TO MEET
WITH KIM, KIM DIDN'T SEE HIM.
WE SHOULDN'T BE SURPRISED, LOOK
I SAW THE PRESIDENT --
CONNELL: TOP LEVEL GUY NOW.
>> SEEING POMPEO IS SORT OF A
STEP DOWN.
THE PROBLEM IS, THAT THAT
MEETING IN EARLY JULY WENT VERY
POORLY, AS BAD AS IT COULD HAVE
DONE.
RIGHT NOW THE PROBLEM IS YOU
HAVE CHINA, RUSSIA, EVEN SOUTH
KOREA ARE BUSTING SANCTIONS.
CONNELL: SO IS THE PRESIDENT'S
STRATEGY HERE, USING CHINA,
TRYING TO LEVERAGE THE
NORTH KOREA SITUATION BACKFIRE
IN YOUR VIEW?
>> IT DIDN'T BACKFIRE.
IT IS SOMETHING WE HAD TO TRY
BECAUSE EVERYONE EXPECTED IT BUT
IT HASN'T WORKED AND I'M GLAD
TO PUT A LOT MORE PRESSURE ON
THE CHINESE BECAUSE IN THE LAST
SEVERAL MONTHS WE'VE SEEN THEM
RELAX BORDER INSPECTIONS.
THAT MEANS A LOT MORE GOODS ARE
GETTING INTO NORTH KOREA THAT
TO LAUNDER MONEY FOR THE NORTH
KOREANS.
THIS IS UNSUSTAINABLE FOR US.