JERRY IS DETAINED RIGHT NOW.
WE WANT TO GET RIGHT TO MICHAEL
MISSST PILLSBURY FOR WHAT IS
GOING ON WITH CHINA.
HE IS ONE OF THE WORLD'S LEADING
EXPERTS ON CHINA.
IS THIS TOUGH LINE THE PRESIDENT
IS TAKING, IS THAT THE WAY TO
GO, SIR?
>> YES, IT IS.
THE PRESIDENT IS REACTING TO TWO
DIFFERENT THINGS, LIZ.
ONE IS THE RENEGING, HE USED THE
WORD IN HIS TWEET, RENEGOTIATE
BY CHINA.
THIS IS BAD FAITH IN NEGOTIATION
TO GIVE UP SOMETHING, AGREE TO
IT AND COME BACK AND REVISIT THE
WHOLE THING.
THAT'S ONE THING HE MADE CLEAR
IN HIS TWEET ON SUNDAY.
THERE'S A SECOND PART OF IT,
WHICH I ADDRESSED THIS MORNING
IN A LONG ARTICLE ABOUT WHY THE
TARIFFS ARE A GOOD THING FOR A
TEMPORARY PERIOD.
THERE'S A FEAR THAT CHINA IS
GOING TO CHEAT ON THE TRADE
AGREEMENT, THAT THEY HAVE NO
REAL INCENTIVES NOT TO CHEAT, TO
GO STRAIGHT, IF YOU WILL.
SO TARIFFS GIVE THE OPPORTUNITY
TO CHINA TO EARN THEIR WAY OUT
OF THE TARIFFS BY COMPLYING WITH
COMMITMENTS THEY'VE MADE.
THIS IS AN UNUSUAL NEW IDEA
PRESIDENT TRUMP IS USING.
IT'S NOT THE OLD KIND OF TARIFFS
THAT ALEXANDERS HAMILTON
PROPOSED TO PROTECT THE AMERICAN
INDUSTRY, HAVE TARIFFS FOR 100
YEARS.
IT'S NOT A TARIFF THAT'S
DESIGNED TO PROTECT STEEL OR
ALUMINUM.
CHINA CAN EARN ITS WAY OUT OF
TARIFFS FAIRLY QUICKLY.
THIS IS A WAY TO GET CHINA'S
ATTENTION.
AND I WAS VERY PLEASED THAT
THEY'RE COMING, THE TALKS WILL
BE HELD ON THURSDAY AND FRIDAY.
THE MARKET, YOU KNOW -- THE IDEA
OF BUYING ON A DIP COULD PAY
OFFHAND SOMELY IF THE
OFFHANDSOOMELY IF THE
OFFHANDSOMEELY IF THE
OFFHANDSOMELYY IF THE
OFFHANDSOMELY AIF THE
OFFHANDSOMELY AND THEN THE MARKE
OFFHANDSOMELY AND THEN THE MARKT
COMPENSATES AND JUMPS UP 500
POINTS OR MORE.
LIZ: HAS CHINA BEEN -- I THINK
YOU POINTED OUT.
HAS CHINA BEEN BUSY IN THESE
LAST THREE WEEKS TRYING TO
WEAKEN THE DEAL?
>> THOSE WHO SAY THAT I THINK
ARE REFERRING CORRECTLY TO
CHINESE ACTIVITIES THAT HAVE
STARTED BACK IN EARLY MARCH
ACTUALLY, MORE THAN TWO MONTHS
AGO.
TO NOT HAVE THE CONCESSIONS THEY
MADE BE FINAL AND NOT HAVE THEM
VERY WELL KNOWN.
THESE TALKS ARE SECRET AS YOU
KNOW.
150-PAGE TEXT.
NOT ONE WORD HAS LEAKED.
ON THE CHINESE SIDE IT'S
POSSIBLE THAT THE HAWKS DIDN'T
REALLY UNDERSTAND THE DEGREE OF
CONCESSIONS THAT HAD BEEN MADE.
AND SO THEY GOT A HOLD OF THE
WHOLE 150 PAGES INSTEAD OF A
SUMMARY AND THEY BEGAN TO
REALIZE THAT THESE ARE SERIOUS
CONCESSIONS PRESIDENT TRUMP HAS
GOT OUT OF CHINA.
SO MAYBE THEY GOT A CHANCE TO
TAKE THEM BACK RECENTLY.
NOW THEY'VE SEEN THAT THE
PUNISHMENT PRESIDENT TRUMP IS
GIVING THEM MEANS DON'T DO THIS
AGAIN.
IF YOU MAKE A CONCESSION, STICK
BY IT.
THE AMERICAN SIDE MADE
CONCESSIONS TOO.
ONE CAN BE OPTIMISTIC ABOUT THE
TALKS BUT BOTH SIDES ARE
PRACTICED, TOUGH NEGOTIATORS.
I THINK PRESIDENT TRUMP IS
BETTER.
BUT THE CHINESE ARE NO SLACKERS
WHEN IT COMES TO TOUGH
NEGOTIATING TACTICS.
LIZ: WILL CHINA GIVE UP THE
HACKING AND ESPIONAGE.
I THINK YOU POINTED OUT THAT
ECONOMIC CRIME REALLY DOES PAY
WELL.
>> THEY ARE ONLY GOING TOIVE GET
UP IF THERE ARE STRONG
INCENTIVES LIKE TARIFFS TO BE
TAKEN OFF.
THE CHINESE BUILT A MODEL I'VE
WRITTEN A BOOK ABOUT THAT'S
UNIQUE IN THE WORLD.
THEY'RE STILL A STATE-CONTROLLED
ECONOMY.
MANY PEOPLE THINK THEY HAVE
GROWN SO MUCH IN HO YEARS, THEY
MUST HAVE A FREE MARKET.
THAT'S SIMPLY NOT CORRECT.
THEY NEED THESE PRACTICES, THE
THEFT, THE ESPIONAGE, SUBSIDIES,
THEY NEED IT FOR THEY MODEL.
SOME REFORMERS WANT TO CHANGE
THAT AND THAT'S WHAT PRESIDENT
TRUMP IS WORKING ON.
THAT'S WHERE LIGHTHIZER MADE IT
CLEAR IN ITS TESTIMONY.
LIZ: SHOULD WE NAME THEME
LIZ: SHOULD WE NAME THEM A
MANIPULATOR?
WILL THAT GET IT DONE?
>> IT'S CONTROVERSIAL IN OUR
SYSTEM.
YOU NAME A COUNTRY A MANIPULATOR
OF SURGEON WE CERTAIN
STIPULATIONS CAN BE PUT ON THEM.
SOME PEOPLE DON'T WANT TO GO ALL
THE WAY AND CALL THEM THE MA LIP
MANIPULATOR.
THERE'S AN ISSUE THEY CAN EARN
THEIR WAY OUT OF THAT TOO.
WE NAME THEM A MANIPULATOR, THEY
STOP AND WE TAKE IT AWAY.
THIS IS THE DYNAMIC THAT
PRESIDENT TRUMP IS TRYING TO
PURSUE TO GET AT CHINA.
HE WROTE A BOOK AND USED A