Subtitles section Play video Print subtitles LOU: COME DMIS LOU: COMM DMIS LOU: COMMUNMIS LOU: COMMUNISS LOU: COMMUNIST CHINA WINING ABOUT PRESIDENT TRUMP'S INSIST TENSE THAT THE CHINESE TRADE IN A FAIR AND BALANCED MANNER AND QUIT STEALING THINGS, AMERICAN THINGS, AMERICAN STUFF, $600 BILLION OF IT A YEAR. THE CHINESE AMBASSADOR TO THE UNITED STATES TELLING REUTERS, QUOTE, IN THE LAST CENTURY WE HAD TWO WORLD WARS AND IN BETWEEN THEM THE GREAT DEPRESSION. I DON'T THINK ANYBODY SHOULD REALLY TRY TO HAVE A REPETITION OF HISTORY. NOW THAT'S PRETTY CUTE AND DESPERATE WHINING FROM A COUNTRY HIDING BEHIND THE WORLD TRADE ORGANIZATION AND THEIR SPECIAL MARKET STATUS AS A DEVELOPING NATION, AN EMERGING NATION, BY GIVING THEM PREFERENTIAL TREATMENT AS THEY STEAL HUNDREDS OF BILLIONS OF DOLLARS A YEAR IN AMERICAN INTELLECTUAL PROPERTY. THE PROSPECT IS THAT THERE WILL BE A HIGH STAKES MEETING BETWEEN PRESIDENT XI JINPING AND PRESIDENT TRUMP AT THE G20 MEETING IN ARGENTINA. OUGHT TO BE INTERESTING. TO TAKE THAT UP NOW, THAT MEETING WHEN XI MEETING BHEN XI MEETING BETN XI MEETING BETWEXI MEETING BETWEEN XI AND TRUMP, DR. MICHAEL PILLSBURY, DIRECTOR OF THE CHINESE STRATDY AT THE HUDSON INSTITUTE, THE AUTHOR OF \"THE HUNDRED YEAR MARATHON.\" IT IS GREAT TO SEE YOU MICHAEL. I WANT TO SAY FIRST AND FOREMOST, IT'S REALLY EMBARRASSING TO HEAR THE CHINESE WHINE LIKE THIS AND UTTER SUCH GIBBERISH IN OFFICIAL FORM FROM THEIR AMBASSADOR. THE PRESIDENT'S TARIFFS ARE WORKING, AREN'T THEY? >> YES. THERE IS A SENSE OF DESPERATION, I THINK. THEY DO SCARE PEOPLE. WHEN THE CHINESE AMBASSADOR RAISES THESE THINGS, YOU AND I KNOW IT'S NOT TRUE BUT THERE ARE PEOPLE WHO ARE SCARED. LOU: WHO WOULD BE SCARED? IT'S SURE AS HECK NOT PRESIDENT TRUMP. IT'S SURE NOT JOHN BOLTON. >> NO. PRESIDENT TRUMP, AS I THINK YOU KNOW, HE'S BEEN ON TO THIS SINCE THE YEAR 2000. HE PUBLISHED A PIONEERING BOOK USING SOME REALLY HARSH LANGUAGE ABOUT TECHNOLOGY THEFT, A WHOLE SERIES OF -- LOU: SO WHO IS AFRAID? >> I'M SORRY TO TELL YOU THAT GOLDMAN SACHS CROWD IS UPSET AND \"THE WALL STREET JOURNAL\" TODAY HAS A MAJOR EXPO SAY. THE FORMER BOSS OF STEVE MNUCHIN AND TODAY THERE'S A NUMBER, I THINK IT'S 50 TIMES HANK POLSON CALLS STEVE MNUCHIN. LOU: YOU'RE A CHINA HAND. I'M A POLITICAL HAND. AND I JUST -- IT'S REALLY STRAIGHTFORWARD. LOOK WHO WAS CONCILIATORY WITH THE CHINESE AND THE TRADE TALKS LEADING UP TO WHAT WAS THE PRESIDENT'S DECISION IF THEY'RE GOING TO IGNORE HIM, YOU KNOW, MNUCHIN WASN'T EXACTLY DIRECT AND CLEAR. HE WAS A LITTLE AMBIGUOUS IN HIS DISCUSSIONS WITH THE CHINESE. AND THE RESULT WAS THEY DIDN'T DO A DAMN THING BECAUSE THEY DIDN'T THINK THE PRESIDENT WAS SERIOUS. THAT'S GOLDMAN SACHS STYLE. >> I TELL THE STORY IN \"HUNDRED YEAR MARATHON\" OF 1993 WHEN BILL CLINTON STARTED OUT REALLY AGAINST CHINA AND NANCY PELOSI WAS WITH HIM, HALF OF THE CONGRESS, BOTH HOUSES REALLY STARTED LEGISLATION AGAINST CHINA. BUT THE CHINESE SPLIT THE CABINET AND THEY BROUGHT THE TREASURY SECRETARY, ROBERT RUBEN, BROUGHT THEM OVER -- LOU: DID YOU SAY GOLDMAN SACHS AGAIN? I'M SORRY. >> IN THIS CASE IT WAS CITI CORP. >> IT WAS CITI CORP AFTERWARDS. IT WAS ALSO THE CEO OF GOLDMAN SACHS. YOU DON'T WANT TO MISS A GOLDMAN SACHS OPPORTUNITY LIKE THAT. LET'S TURN VERY QUICKLY TO WHERE WE ARE. AND THAT IS A. >> SATURDAY NIGHT. LOU: I APPRECIATE THE COMPELLING DRAMATIC LANGUAGE. BUT WE GOT A DECISION TO MAKE. ARE WE GOING TO BE AN INDEPENDENT FREE NATION OR ARE WE GOING TO BE PART OF A SUPPLY CHAIN IN A GLOBAL ECONOMY RUN FROM THE UNITED NATIONS? >> A LOT DEPENDS ON THE POWER OF PRESIDENT TRUMP. I'M BETTING ON HIM. I THINK HE SOLVED THIS PROBLEM INITIALLY 18 YEARS AGO. LOU: ABSOLUTELY. >> I THINK HE'S QUITE DETERMINED. BUT A PRESIDENT CAN'T RUN EVERY LITTLE THING. HE'S GOT TO TRUST THE CABINET AND -- LOU: I THINK HE'S NOT TO NOT TRUST THEM. THAT'S THE REAL ISSUE. NOT TRUST THEM. >> I'M SORRY >> I'M WORRY >> I'M WORRIED. THE CHINESE ARE SMART. THEY'VE BEEN TELEGRAPHING TODAY SOME OF THE CONCESSIONS THEY'RE GOING TO MAKE. THE BASIC IDEA IS TO SAY CHINA IS GOING TO OPEN UP ON ITS OWN FOR ALL COUNTRIES AND IMPLY THAT AMERICA IS NOT A SPECIAL CONCESSION. THIS IS PROBABLY NOT GOING TO WORK BUT I'M LOOKING FORWARD TO SATURDAY NIGHT AREN'T YOU FOR THE DINNER AND THE ONE-ON-ONE SESSION. LOU: WHAT I'M REALLY LOOKING FORWARD TO IS WHEN THE CHINESE FINALLY REALIZE, AN AWARENESS THAT THIS PRESIDENT IS NOT GOING TO BE PLAYED AND THAT THEY'RE GOING TO HAVE TO ACTUALLY QUIT STEALING OR STUFF AS A CONDITION TO TRADING WITH US. LET'S HOPE IT'S NEAR AT HAND. >> SOME CHINESE STILL THINK HE'S BLUFFING THAT'S THE PROBLEM. THE GOLDMAN SACHS CROWD --