The impact of tariffs on the Chinese economy.

0:00 Speaker 1 Sunday morning, Let’s find out what’s going on in the Far East, and our expert Gordon Chang and his Twitter to find out what’s going on twenty four hours a day at Gordon g Chang, Well, Gordon. So many things are happening in the world. This was a great week for President Trump. He made deals in the Middle East.

0:24 He made deals. Well, he’s trying to make a deal with Iran, He’s trying to make a deal with Ukraine. How does China feel that? Does China think that they got out maneuvered by President Trump’s or they just want to cooperate and go forward.

0:42 Speaker 2 I think China is extremely alarmed by what President Trump did in the Middle East this week because his accomplishments were historic. What he did was he cemented America’s friendships with its traditional allies and partners in the Middle East.

0:58 He blocked out China and rushed I think he intimidated Iran. Of course, he got big orders for US manufacturers, and he attracted overly large investments into the US. Just so much money. I’m not sure that we can absorb all of it, but this is historic. Also, the other thing that he did was he dropped the sanctions on Syria.

1:21 This is critical because Syria is in a position where it needs to rebuild the entire country. The new president, former militant, doesn’t want the Chinese there. He wants the United States because he likes our system. And this means that Syria could go can go from, for instance, a failed state to this century’s miracle. So I think that

1:46 this was a fantastic lead for President Trump.

1:50 Speaker 1 And he how did I guess China and the Treasury Secretary of Bisset, they did a good job in Geneva, and they look like they’re closer than ever before.

2:07 Speaker 2 Well, between arrangements I think benefit China more than they benefit the United States for a number of reasons. One of them is, of course, there was a mutual drop in tariffs one hundred and fifteen percentage points on each side.

2:20 It’s the tariffs, American tariffs that keep China’s products out of America. But it’s not China’s tariffs that keep American products out of China. It’s the non tariff barriers, and this deal, at least at this stage, doesn’t do anything about them. A lot of people say that President Trump sort of blinked the word you hear a lot from

2:39 his critics. I actually think that he gave Sie Jumping one last chance, an off ramp for the collision that is otherwise going to occur between China and the United States and China and the rest of the world. So this is important. I think on the part of President Trump, he’s trying to see if he can come to a deal.

3:00 But I don’t think that China could make the deal that President Trump talked about on Monday, because Trump talked about China opening up its products to its markets to the United States, and that’s about the last thing that China’s leader wants to do right now. We’ll see ninety days middle of August, we’ll see whether the Chinese are

3:19 cooperative or not. Well.

3:22 Speaker 1 I think everybody wants to move on and not have any problems. That’s just my opinion. Anything else with the other foreign countries in the Far East, the Korea or Vietnam or any of them.

3:37 Speaker 2 Korea is coming up on its June three snap presidential election, and the front runner by far is the leftist Ejmong who essentially hates America and if he had his way, would actually abolish the country of South Korea and merge it into North Korea. From all that we could tell, E is very pro China, very pro North Korea, very

4:02 anti United States, and he would do everything possible to sabotage his relationships with Washington. South Korea has had leftist presidents in the past who’ve had views similar to Ya’s, but Ye is much more ruthless, much more determined than the previous leftist presidents. I’m not saying it will happen, John, but I’m saying that it’s possible that South Korea essentially

4:29 becomes a communist state in the not too distant future if Ye is elected. And he’s leading big margin in the polls right now.

4:37 Speaker 1 Now, So if we talk about the world, it looks like President Trump has a little bit of putting it together. In the Far East, in the Middle East, in the Saudi Arabia type of countries, it looks like he’s doing very well and putting it together. What do you see his largest problem in the world.

5:05 Speaker 2 His largest problem is China, because the problems that we otherwise identify Ukraine, Israel, India, Pakistan, they really are China problems because the bad actors in all of those cases are supported by China. And in addition, China is supporting insurgencies in North Africa that look like wars. President Trump has had a fantastic week. It is better than good.

5:30 It is historic, and this is I think a trip that history will remember. This tells us that America is the only country that can change the world for the better, and we’re seeing that right now with what Trump is doing.

5:46 This is very good for the United States, and I just hope that he continues with this winning pattern.

5:56 Speaker 1 I agree very much. So I’d rather have so war. And I think President Trump is not a warm mongit like some people try to make him out to be. He’s more of a peace manger. Anything else you want to tell the American people.

6:11 Speaker 3 On Sunday money, Well, the one thing that one piece of news this past week that should disturb all of us is that we’ve found communication devices in those the equipment that connects wind turbines and solar panels to the grid, and those Chinese devices can actually damage or disable our grid.

6:36 Speaker 2 So we’ve got to go through all of the Chinese equipment in our infrastructure to make sure that it is not that Beijing can’t use it for sabotage purposes. This is going to require a top to bottom review of our infrastructure, but it is long needed, and so I hope that this revelation encourages governments at all levels in

6:58 our country to start looking at at this Chinese equipment understood.

7:03 Speaker 1 In other words, the Chinese equipment and cheap solar cells can act and disturb our grid system in case the time of war.

7:14 Speaker 2 Now, these are the devices that connect the grid to wind turbines and solar cells, so they are they’re essential when you get the electricity generated by these devices have to go through Chinese connection equipment, and that connection equipment is what could disable our grid.

7:34 Speaker 1 Are we’re dependent on Chinese on it?

7:38 Speaker 2 We are dependent on Chinese. We can make our own equipment, We’ve got to make sure that the equipment that has made doesn’t have you know, these devices that can sabotage. And this is this is not the only equipment. This mirror is the revelation of a couple of years ago where these big gigantic cranes at ports had communication devices

7:58 that were not part of the original specifications and which were not part of the equipment otherwise required part of the equipment which would permit China to disable or cause damage at our ports because of these communication.

8:15 Speaker 1 Devices, Gordon Chang were out of time, but thank you for bringing the American people up to date and let’s catch up again real soon.

8:22 Speaker 2 Thank you so much, John, and stay safe.