MEETING.
BACK TO YOU.
SUSAN: EDWARD, THANK YOU SO
MUCH.
LET'S BRING IN FORMER U.S.
AMBASSADOR MAX BAUCUS.
WHAT'S YOUR REACTION OF THESE
HARD ASKS BY THE CHINESE
PRESIDENT HEADING INTO THIS
MEETING?
>> I'M NOT SURPRISED.
THE CHINESE ARE VERY TOUGH, VERY
FIRM.
I THINK THAT SINCE THEY PULLED
BACK, THE CHINESE, A BIT FROM
EARLIER NEGOTIATIONS, THEY HAVE
NOW HARDENED MORE.
MY FRIENDS IN CHINA TELL ME THAT
CHINA IS ALSO HARDENING IN THE
SENSE THAT NATIONALISM IS
GETTING HIGHER ALL THE TIME.
CHINA FEELS LIKE IT'S IN A
PRETTY STRONG POSITION EVEN
THOUGH THEIR ECONOMY IS DOWN A
LITTLE BIT.
THEY THINK HISTORY'S AT THEIR
BACK.
THERE'S A BOUNCE IN THEIR STEP.
I'M NOT SURPRISED AT ALL.
I ALSO EXPECT, HOWEVER, THAT
PRESIDENT XI WILL EXTEND A BIT
OF AN OLIVE BRANCH, SAYING HE
WOULD LIKE TO WORK WITH THE
UNITED STATES WITH RESPECT TO
NORTH KOREA AND IRAN BECAUSE WE
HAVE TO WORK TOGETHER WHICH IS
THE REAL BOTTOM LINE HERE.
BOTH OUR COUNTRIES HAVE TO WORK
TOGETHER.
PRESIDENT XI UNDERSTANDS THAT.
I THINK PRESIDENT TRUMP
UNDERSTANDS THAT.
THERE'S A LOT OF TRADE, LOT OF
INVESTMENT BECAUSE REALLY, THE
MORE THESE TARIFFS GO INTO
EFFECT, THE MORE IT'S GOING TO
HURT NOT ONLY CHINA BUT ALSO THE
UNITED STATES.
>> AMBASSADOR, THANK YOU FOR
BEING HERE.
IT'S JONATHAN HOENIG.
I WANT TO ASK ABOUT HUAWEI.
THE JURY SEEMS TO BE MIXED ON
THIS.
SOME COUNTRIES LIKE THE U.S.
HAVE BANNED HUAWEI PRODUCTS.
OTHER COUNTRIES LIKE ITALY AND
BRAZIL HAVE NOT.
HOW MUCH OF THIS IS ACTUAL
SECURITY THREAT TO AMERICANS AND
HOW MUCH OF IT, IF YOU WILL, IS
JUST A MATCH BETWEEN LEADERS OF
TWO VERY PROMINENT COUNTRIES?
>> IT'S HARD TO SAY BECAUSE SO
FAR, THE UNITED STATES HAS NOT
SHOWN PROOF OF ACTUAL HUAWEI
SPYING THAT'S COMPROMISED THE
UNITED STATES.
THERE'S A FEAR THERE THAT HUAWEI
WILL BE IN THAT POSITION BUT
THERE'S NO PROOF.
IT'S VERY UNFORTUNATE THAT WE'RE
FALLING INTO A BIPOLAR WORLD
WHERE CHINA DEVELOPS ITS OWN 5G,
UNITED STATES DEVELOPS ITS OWN
5G AND THE MORE THAT HAPPENS,
THE MORE WE ARE GOING TO FALL
INTO AN ABYSS AND NOBODY COMES
OUT A WINNER.
IN FACT, LONG TERM, I THINK IT
WILL HURT THE UNITED STATES
BECAUSE WE'RE RULES-BASED, WE
AMERICANS.
CHINESE ARE LESS RULES-BASED,
MORE RESULTS-BASED.
THEY WILL FIND WAYS TO CUT DEALS
WITH THEIR 5G ALL AROUND THE
WORLD AND EVEN TRY TO CUT DEALS
WITH THE EUROPEANS.
IT'S A BIG SERIOUS ISSUE AND IT
BEHOOVES THE UNITED STATES
GOVERNMENT FRANKLY TO SHOW SOME
PROOF AND ALSO FIGURE OUT SOME
WAYS WHERE WE DON'T -- ARE NOT
IN THIS BIG GULF BETWEEN CHINA'S
SPHERE OF INFLUENCE ON THE ONE
HAND AND TECHNOLOGY AND U.S. ON
THE OTHER.
WE HAVE TO FIND WAYS TO WORK
TOGETHER.
>> AMBASSADOR, THANK YOU FOR
JOINING US.
ANOTHER QUESTION, YOU MENTIONED
NORTH KOREA AS A POSSIBLE PIVOT
IN THE CONVERSATION THAT
PRESIDENT XI MIGHT TRY TO
ARRANGE HIMSELF AS THE
INTERMEDIARY AS HE HAS DONE
BEFORE BUT IT SEEMS TO ME
PRESIDENT TRUMP IS REALLY
PUTTING THE ECONOMY FIRST.
I THINK LOOKING TOWARD OUR
ELECTION, THAT WILL BE A MUCH
MORE IMPORTANT ISSUE FOR HIS
CAMPAIGN THAN WHAT IS GOING ON
IN NORTH KOREA.
DO YOU THINK PRESIDENT XI MIGHT
BE UNDERESTIMATING THAT, THE
IMPORTANCE OF THE ECONOMY AND
THE IMPORTANCE OF WINNING, IF
YOU WILL, FROM THE POINT OF VIEW
OF DONALD TRUMP ON THIS TRADE
ISSUE?
>> I THINK PRESIDENT TRUMP,
DON'T FORGET, WOULD LIKE IF HE
CAN TO GET SOME RESOLUTION IN
NORTH KOREA.
DON'T FORGET, A WHILE BACK,
THERE WAS SOME TALK ABOUT
PRESIDENT TRUMP TRYING TO GET A
NOBEL PRIZE FOR HIS WORK ON
NORTH KOREA.
THE THING HERE IS THERE WILL BE
NO SOLUTION ON THE KOREAN
PENINSULA WITHOUT THE
INVOLVEMENT OF CHINA.
CHINA WILL NOT ALLOW A SOLUTION
THAT RESULTS IN -- AGAINST
CHINESE INTERESTS.
SO IT'S IMPORTANT FOR CHINA TO
SIGNAL TO PRESIDENT TRUMP AND
SOUTH AND NORTH KOREA THAT
CHINA'S THERE, I DON'T EXPECT
THERE TO BE MUCH NEGOTIATION
OVER IN OSAKA, THAT'S TRUE, BUT
I STILL THINK IT'S IMPORTANT
BECAUSE PRESIDENT XI WANTS THIS,
FOR THE UNITED STATES TO KNOW
THAT CHINA IS THERE, CHINA IS
WATCHING AND CHINA IS GOING TO
BE PART OF THE SOLUTION AT SOME
POINT.
>> AMBASSADOR, I'M WONDERING
FROM YOUR CONTACTS, THERE'S A
LOT OF TALK IN THE UNITED STATES
ABOUT WHETHER OR NOT U.S.
COMPANIES, APPLE INCLUDED, WILL
TRY TO DIVERSIFY THEIR SUPPLY
CHAINS AND RELY LESS ON EITHER
PRODUCING IN CHINA OR SELLING
INTO THE DOMESTIC CHINESE
MARKET.
HOW EFFECTIVE DO YOU THINK THE
CHINESE ARE RIGHT NOW AT
DIVERSIFYING THEIR OWN GLOBAL
ECONOMIC RELATIONSHIPS?
THERE'S A LOT OF TALK ABOUT HOW
CHINESE AND BEIJING CHARM
OFFENSIVE TO OTHER COUNTRIES TO
KIND OF IN ITS OWN WAY ISOLATE
THE UNITED STATES.
HOW EFFECTIVE IS THAT?
DO YOU THINK IT WILL CONTINUE?
>> I HAVE A LOT OF RESPECT FOR
CHINESE, THEIR INDUSTRY, THEIR
HARD WORK, THEIR DETERMINATION.
THEY ARE A LARGE COUNTRY AND
THEY THINK HISTORY'S AT THEIR
BACK.
THEY ARE GOING TO DOUBLE DOWN ON
DEVELOPING THEIR OWN
SEMICONDUCTOR INDUSTRY.
THEY ARE GOING TO DOUBLE DOWN IN
DEVELOPING TECHNOLOGIES THAT
THEY THINK ARE IMPORTANT TO THEM
IN THE FUTURE AND THEY WILL WORK
WITH OTHER COUNTRIES.
THERE'S NO QUESTION ABOUT THAT.
I GO BACK TO EARLIER POINT,
THOUGH, THAT AS A COUNTRY, WE
HAVE TO RECOGNIZE CHINA'S RISE,
WE HAVE TO RESPECT CHINA BECAUSE
CHINA IS NOT GOING AWAY.
AT THE SAME TIME WE HAVE TO BE
VERY STRONG INTERNALLY.
WE HAVE TO WORK WITH OUR ALLIES
SO THAT WE ARE STRONG IN THE
BEST SENSE OF THE TERM, SO CHINA
RESPECTS US.
THEN WE CAN START TALKING WITH