.
>> THE TRADE WAR WERE STARTED
MANY YEARS AGO BY THEM AND THE
UNITED STATES LOST.
>> YOU'RE SAYING WE'RE ON THE
LOSING END OF IT.
>> THERE IS NO TRADE WAR,
THEY'VE TAKEN SO MUCH.
>> IT MAY SOUND LIKE HE'S
BLAMING CHINA, BUT PRESIDENT
TRUMP IS CLAIMS IT'S OUR OWN
PAST PRESIDENTS WHO, BY
CONCEDING TOO MUCH TO CHINA
WHEN THESE PRESIDENTS WERE IN
POWER LOST THE TRADE WAR YEARS
AGO.
ONE OF CHINA'S CRITICS SAYS
PRESIDENT TRUMP IS KIND OF
WRONG IN A DIFFERENT WAY.
HE SAYS THE U.S. HASN'T LOST
YET, RATHER WE'VE ONLY JUST
BEGUN TO FIGHT AND WINNING WILL
BE EASY.
AUTHOR OF THE COMING COLLAPSE
OF CHINA, GORDON CHANG.
WHAT DO YOU MEAN EASY TO WIN?
>> CHINESE KNOW THAT.
VICE PREMIERE HU WAS HERE, HE
KNOWS CHINA CANNOT WIN A TRADE
WAR.
WE'RE THE TRADE DEFICIT
COUNTRY.
LAST YEAR MERCHANDISE TRADES
DEFICIT WAS $375.2 BILLION.
LIZ: WITH CHINA?
>> WITH CHINA.
BY THE WAY, LIZ, 88.8% OF
OVERALL TRADE SURPLUS RELATES
TO THE U.S.
WE GOT A STABLE ECONOMY, THEY
DON'T.
OURS IS GROWING, THEIRS IS
SLOWING DOWN FAST YOU.
>> SAY IT'S EASY TO WIN.
HOW?
WHAT SHOULD WE BE DOING THAT
WE'RE NOT?
BECAUSE THE PRESIDENT IS
SLAPPING TARIFFS ON CHINSA AND
OVERNIGHT, XI JINPING
RETALIATED AND SLAPPED TARIFFS
ON OUR GOODS.
>> THE CHINESE WILL DO THIS AS
LONG AS THEY THINK PRESIDENT
TRUMP WILL BACK DOWN AND
APPARENTLY THAT'S THE CALCULUS.
YOU KNOW ON ZTE, THE EMBATTLED
CHINESE TELECOM EQUIPMENT
MAKER, CHINESE ISSUED DEMANDS,
PRESIDENT TRUMP BACKED DOWN ON
THE SANCTIONS OF THE COMPANY.
LIZ: THAT WAS ZTE.
>> THEY TESTED HIM AND DECIDED
THEY COULD WIN A TRADE WAR.
THEY THINK THEY'VE GOT THE
POLITICAL WILL.
WHEN YOU LOOK AT THE NUMBERS,
WE ARE IN THE PERFECT POSITION
TO WIN IT.
AND BY THE WAY, LIZ, OUR
ECONOMY IS BIGGER THAN THEIRS.
LAST YEAR WE HAD $19.39
TRILLION OF GDP.
THEY CLAIM 12.84, BUT IT'S A
LOT LESS.
LIZ: LOOK AT ZTE, WHEN YOU LOOK
AT THE RIGHT WHERE IT DROPS
RIGHT OFF.
THEY HAD IT HALT TRADING WHEN
PRESIDENT TRUMP SPIKED THEIR
CHANCES, ADDED SANCTIONS AND
SAID YOU CAN'T BUY ANY U.S.
COMPONENTS OR PARTS FOR YOUR
>> RIGHT.
LIZ: TO ME, THAT WAS BRILLIANT.
THEY THEN LOOKED AT THIS AND
SAID UNCLE, WE'RE GOING TO PAY
YOU A BILLION-DOLLAR FINE,
CHANGE THE MANAGEMENT AND FIRE
THE BOARD AT ZTE.
WE DON'T TRADE TO IRAN ANYMORE,
VIOLATE THE SANCTIONS WHICH IS
THE ORIGINAL REASON WILBUR ROSS
SAID STOP DEALING WITH ZTE.
WE LIFTED THEM.
WAS THAT A SMART MOVE?
>> NO, IT WASN'T.
YOU CAN LOOK AT THE DEAL AND
SAY IT WAS GOOD.
QUALCOMM GOT APPROVAL FOR NXP
ACQUISITION.
BAIN IS GOING TO GET APPROVAL
FOR I THINK IT'S TOSHIBA.
NO DEAL IS A GOOD DEAL, THE
CHINESE MADE THIS TEST A
POLITICAL WILL.
LIZ: PEOPLE IN AMERICA LIKE
LESS EXPENSIVE THINGS,
ESPECIALLY WHEN LOOKING FOR A
BARGAIN, AND YOU DON'T WANT TO
MAKE THE CONSUMER POORER.
YOU DON'T WANT TO TAX THE
CONSUMER.
SO YOU TURN TO OTHER TRADING
PARTNERS.
WE'VE JUST SHUT OUT 28 EUROPEAN
COUNTRIES, NOT SHUT OUT BUT IN
A LITTLE TRADE SKIRMISH WITH
THEM AND MEXICO AND CANADA.
>> AND I DON'T THINK IT'S SMART
TO TAKE ON THE ENTIRE WORLD AT
THE SAME TIME.
I THINK PRESIDENT TRUMP SHOULD
HAVE FOCUSED ON CHINA AND KEPT
THE EUROPEANS AND EVERYBODY
ELSE ON OUR SIDE.
LIZ: HE'S GOT THE WORLD'S
ATTENTION, GORDON.
TO ME, THAT'S CERTAINLY WORTH
SOMETHING.
>> SURE.
LIZ: I'M NOT SURE, OF ALL OF
THE BATTLES HE'S FIGHTING RIGHT
NOW, I WOULD SAY YOU OUGHT TO
LEAVE OUT CANADA, THAT'S NOT
JUST MY PARENTS ARE CANADIAN.
THEY ARE OUR STRONGEST AND MOST
RELIABLE ALLY.
>> WE HAVE A TRADE SURPLUS WHEN
YOU INCLUDE THE SERVICES.
WHAT TRUMP SHOULD HAVE DONE IS
GO AFTER THE EU.
LIZ: HE IS GOING AFTER THE EU.
>> THE CANADIAN THING TO ME IS
THE WRONG TARGET.
I THINK IT'S PERSONAL BECAUSE
OF TRUDEAU.
BUT THE TRUTH IS, LIZ, RIGHT
NOW BECAUSE OF BAD POLICIES
OVER THE COURSE OF DECADES,
THERE ARE NO NO CAUSE
SOLUTIONS, YOU CAN BUY FROM
FRIENDS AND IT'S HAPPENING.
WALMART, THE LOW COST STUFF IS