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tv   WSJ at Large With Gerry Baker  FOX Business  March 2, 2019 5:30am-6:01am EST

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republican devin nunes. my special guest as we talk about china as well as what's happening with the fbi and doj. that is live to name eastern sunday morning. start smart every weekend. right here on fox business. work.ays in the fox business mornings with maria ayres 6 to 9 am eastern. we hope you'll join us here that will do it for us this weekend. thank you for joining me. i will see you next time.♪ ♪ have a great weekend ♪ everybody. ♪ [music] >> hello and welcome to the wall street journal at large. sometimes in politics as in life, it is a good idea to just get away. this week, president trump seems to be following the old adage. his exploit and fixer, michael cohen, made headlines telling a congressional committee in washington that his former boss was a treat, conmen and racist. mr. trump was about as far away as is possible traveling all the way to vietnam to meet with
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kim jong-un. the leader of north korea. now as it turned out he may well be that neither of the two events showtime in washington and the showdown in hanoi, what proved to have much consequence. well mr. cohen to letter the presidents critics with a seven hour denunciation of mr. trump 's character, the impact of testimony may be muted somewhat by the fact that he has already copped to a charge of perjury. and in hanoi, mr. trump and his partner failed to reach an agreement and eliminated north korea 's nuclear threat. yet both events underscore just how unusual the trump presidency continues to be. the current spectacle highlights once again, the circus quality of washington and the age of trump, the presidents trip to asia and the unorthodox risk-taking style of foreign policy. while he continues to pursue a nuclear breakthrough with north korea, he and his senior officials are working to pull off a similar breakthrough with china. aiming to get a deal to open up the countries markets and avoid
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the imposition of tariffs. this week will take a deeper look at the new approach to foreign policy. especially in asia. and the president succeed where so many of his predecessors have failed in both of these endeavors?first we will look at national security, north korea especially. with a former cia director general david petraeus. he served on the president obama. he also commended international security assistance force in afghanistan and led the surge in iraq. general, thank you very much indeed for joining us. >> thank you, good to be with you. gerry: general, the summit in vietnam ended in a failure. there's a fairly least to reach an that a good thing or a bad thing? >> it is an inconclusive thing. our visit, this demonstrates the limits of personal diplomacy if you will with kim jong-un. the president i think went there thinking that he could do with the diplomats had not been able to do in the lead up to that. he could pull a rabbit out of a hat. but you know, as some wise people have said, the reason presidents are able to pull
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rabbits out of hats is because diplomats work really hard to put them in the hat. in advance. so we saw again, the limits of what could be achieved at a summit with kim jong-un. and it is disappointing without question. there were hopes but also frankly it seems to validate the intelligence communities assessment about the very high unlikelihood that north korea would give up its nuclear weapons. >> which the president has disputed. he doesn't seem to necessarily agree with the intelligence assessment. >> he did. and again presumably thought that he could do with the diplomats had not been able to do. you have some very good people here, steve has a good team. the secretary of state pompeii was engaged on this. but you know, their engagements with north korean counterparts had not really been that successful. he may recall mike pompeo went there a month or so after the previous summit in singapore and wasn't even able to meet with kim jong-un. stephen beagan 's counterparts
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put him off. there was one normally precede the summit and it was in the communiquc already planned with just a few details to flush out. you know, a summit with a communiquc obviously is not what one would hope. gerry: given that there weren't any rabbits and that had to start with, was a good idea? was it wise for the president to go all the way there and hope to post in the left? >> you can certainly question that now. again, i think there was hope on this part at least and the part on others he could do it diplomats are unable to do. occasionally it does prove out. it is possible for an unconventional style sometimes to produce results where conventional styles have not. you know, his common refrain is, tell me how well the previous guys did with their conventional approaches. let me try my approach and see if we can do better. and in this case obviously, it did not produce anything better. in fact, it is good certainly that since the singapore summit, there's been no further
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nuclear testing and the outcome does seem to support the intelligence communities assessment rather than the presidents hopes. >> is that going to change? is north korea going to change do you think from what you see, from what you've seen at these events, summits and what kim has said. he says he wants to do a deal but are they really, do you really think that they will denuclearize? >> it seems pretty unlikely. again, they are seeing what's happened to some others. libya is not a good example obviously to hold out. given what happened ultimately, to qaddafi. and so again, the only distinguishing feature of the hermit kingdom, of north korea, is the fact that has nuclear weapons. certainly doesn't have a great economy, it does not have a wonderful admirable political does not have human rights records. it is lacking in every possible metric or area of measure. but it does have nuclear weapons. and it is very unlikely they
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are going to give those up without some kind of extraordinary deal.and clearly there was not a willingness to even do away with all of -- they wanted, they really wanted all of the economic sanctions left appear they say they didn't want every sanction but the armament sanctions and so forth, they went economic sanctions lifted, basically a gesture where we still blame have a full inventory. comment no boots on the ground to actually see all of these different -- >> nothing is really changed. again, he say the one thing that hasn't been any more tests in over a year now. but the nuclear program remains intact. >> it apparently has continued, estimates are that enough uranium for another six or so bombs and so on. there hasn't been a cessation of enrichment or presumably missile development. just the testing of missiles
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and nukes. it is also not insignificant that the two leaders are not hurling epithets at each other and threatening. it was very serious observers. the president of the formulations estimated there was a 50 percent chance of war with korea. just one year or more ago. so again that is significant but the hope that we can actually get complete verifiable and irreversible denuclearization of north korea seems not to been well-founded. gerry: what happens next? still remains very unstable say it's a hermit kingdom, in the economy is weak they have weapons and he uses the threat of them at least from time to time to remind everybody where he is. what do we do to continue to de-escalate the tension there? >> is always that there has to be a comp answer approach. one element of this ought to be to maximize the pressure on north korea, again. to get china in particular
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since china essentially has an umbilical cord that runs into north korea metaphorically speaking. it keeps the lights on and pyongyang. over 90 percent of the trade routes to china. china were to get serious about this, and they did to a degree back when epithets were being hurled at each other. they were very alarmed. gerry: do think trade tension between u.s. and china makes it difficult? >> it makes it more complex. again, there are lots of issues wrapped up in the u.s. china relationship. the most important relationship in the world. it clearly has elements of significant conflict despite being each other's, among each other's biggest trading partners. gerry: just let me turn to another area of the world where there is tension. nuclear armed powers. india and pakistan. again, you dealt with this a lot as at the cia. this in the last couple of weeks, terrorist attack on indian soldiers in kashmir, then india retaliated and
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pakistan checked on indian jets. a lot of concerns that people have, and i just got back from india actually, is that there isn't the kind of restraining presence of the united states. the united states seems to be rather standoffish here this time. in the past we have these tensions united states got involved. is that fair? is the u.s. doing enough to restrain these two powers? >> first why would make the assumption that the u.s. is not actually involved here. for starters. second, let's also include one other issue in the context. that is that the prime minister of india faces reelection campaign, the elections will be held in april. one of his platforms is always been that he would stand firm against pakistan. it was of course his decision to send the aircraft into strike just inside the area of the former northwest area. and indeed, then there was an
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air flight. then the question really is i think, for the prime minister, has he demonstrated sufficient firmness to the indian people as he has the run-up to this in his reelection campaign. gerry: and we will see because elections are just coming up you say next month now. >> yes. but my hope would be that having had these actions, this horrific loss of indian soldiers, the largest in many decades. then the response by india, which they had not crossed the line again, like this and a plane shot down perhaps now with the pilot returned, you can get the situation back. i mean, these are two nuclear powers. and this is a very dangerous situation. gerry: general, thank you very much. coming up next, i'll talk with a china expert about how the administration is dealing with beijing over trade.and much more. don't go away.
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when welcome back. the director on chinese strategy and author of the hundred year marathon, an excellent book which has been very influential all around the world, particularly in the white house.he joins me now from washington. thank you for joining me. >> thank you. gerry: let's start of with the current talks going on between the u.s. and china. about trade. we've seen the postponement of the deadline that we had which is march 1, friday. for the imposition of tariffs and more tariffs. negotiation still going on, talk that xi jinping may come to spend some time with president trump. do you sense that this is moving towards an outcome where in the end, we will avoid tariffs? >> no, i think it is too soon to say that. i think that is what the odds
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favor. but the chinese have not agreed to this current document and we been problems all along and they are denying the very basis of the talks. there talk about intellectual property theft and technology transfer and china totally denies that. so obviously enforcement mechanisms are going to be a possible source in the talks breaking appeared with a will agree it will be good news. i don't know the answer. >> this excessive administration says frankly they failed to deal with it's fair to say, china joined the wto in the 1990s and essentially has been allowed to get away with these things on intellectual property and technology and other things. why is there any better chance now that we might get them to change than any point in the last 20 years? >> is an excellent question.i think tariffs themselves showing a determination, something else is been going on which is the trained attorney,
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lighthizer has been so centrally involved recently that he's trying to pin down is sourced on the says hundred 50 pages of documents. that includes the mechanisms was quite new. you're right, present examiner for example raise this when he had his one-on-one in palm springs in 2013. he complained supposedly according to the chinese press, harshly to the president xi jinping that again denied it that said he would look into it. there is some evidence that the cyber theft was reduced for a while, six months or more but then it began to go even higher with penetration and theft. so it's been tried before in terms of asking nicely. this time it's a little more tough. whether it's enough, i think we don't know you. >> there's a bigger picture here to which china has been enormously successful growth and strong in the last 30
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years, may soon take over and be will come the largest but it's a very different animal is that, china? the countries we deal with the europeans, countries and let america, china is very much a state run economy, state directed at least economy. with strong markets but run by the state, how do we establish a proper economic relationship with the company where they are basically doing things largely at the arms of the state. >> that's been a big problem just to recognize. frankly, the reporting of the wall street journal over the last five years or so has been extremely helpful kind of exposing the myth. widely believed myth that china is a free economy. you sort of pull people on the street, they think china when capitalist 34 -- 30 or 40 years
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ago. to have this operation with this theft sometimes some of the chinese intelligence agencies, feeds into the so-called national champion system. is about 100 of these national champions.and they were dinosaurs that were going to go extinct because they were not profit-making. instead, they were converted into these really, global corporations. they are now in the fortune global 500.that story is what i describe in the book. it is describing how china did that with our help gerry: we need to take a break there but i want to come back and talk to about the book? come back. thank you . did you know with vanishing deductible, you can earn $100 off your deductible for every year of safe driving? sing that.
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♪ vanishing deductible, you can... ♪ ♪ earn $100... ♪ earn $100 off... ♪ off your deductible. ♪ deductible. ♪ for every year of safe driving. ♪ ♪ for every-- for every-- ♪ ♪ for every year of safe driving. ♪ what are you-- what key are you in? "e." no, no, go to "g." "g" will be too high. not for me. ♪ vanishing deductible. oh, gosh. sweet, sweet. gerry: back with michael
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pillsbury. you wrote a very influential book, the hundred year marathon. that documents in some detail, china's grand strategy if you like, grand ambitions for global domination. i want to ask you, explain why 100 years. what does that mean? >> it is a term the chinese themselves use. they take as their start date 1949. in the end it is 2049. they expect to be triple, three times the size of the u.s. economy. they work back from that. gerry: that was the founding of the chinese. >> they talk a lot about that is secret in the mid-50s. they try different economic strategies to do that. it was finally in the early 80s when the world bank began to help them. this had economists come over
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and spend a lot of time trying to design a system that would have a growth rate fast enough to catch up with united states. no one thought they could do that. his huge intelligence failure. we all thought the chinese chance that kind of growth rate, 10 percent for 30 years was just impossible. in fact, some see economics got it wrong. gerry: they are on track to achieve the goal. >> yes. the president has said twice now that it is not going to happen on his watch. i don't know if you've seen his press conferences. but he brings this up, it is a chinese goal to suppress america but they will not succeed. least as long as he is president. gerry: what we do to stop them from surpassing? >> the first in which everything about -- second being more competitive with china. not seeing them as a poor brother who needs help. because a large number of programs, the federal government included, to assist china still, so to see ourselves as competitive with china, it would mean to take the relationship in a quite different manner.
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we see it more as a competition and instead of a welfare case where we are seeing the chinese and helping them get richer. gerry: is a danger of competition? the history of the world in some respects, the history of rising powers, challenging existing power and many times and circumstances that challenges resulted in the conflict of war. cannot be avoided this time? >> a chance of war have been going up i'm sorry to say. as a chinese forces get more robust. and come out and interact with ours.not just on the high seas but in the air and even in space. the chances of conflict i worry about that a lot. i think the biggest problem is that we have allies we didn't know about inside the chinese communist party. this kind of hawks and doves debate. they want to go to the free market they want to confront
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the americans, they do not want a large military budget. they want to keep the nuclear weapons capped on a low level say 300 warheads. and not be like the old soviet union. this group of reformers is opposed by hawks where the americans are really evil and surrounding us and thus the debate we have to try to influence. >> thank you, mike. thank you very much. china expert, michael pillsbury. just ahead, my final thoughts on potential risks and rewards of how the president deals with china. stay with us. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard.
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critics and even some allies while he might be soaking to strike a nuclear green with north korea this week he is allowing himself to talk into a bad deal. but if walking away from the hanoi summit with kim jong-un he showed to making was to know when to sign up for. he said if i can't get a deal with you on trade i will walk away from that one too. but the stakes are slightly different with china. the u.s. stock markets are rising strongly in last month or so. increasing expectations of his trade deal. if there's a piece of the moment and hanoi this week when the u.s. is no dice, with financial falls may become uncomfortable. that's it this weekend for the
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latest show updates follow us right now on cbs austin and register to win smokey mo's bbq breakfast tacos twitter, facebook and instagram. please join me next week for the wall street journal at large. [ gongs chiming ] >> it's a "strange inheritance" "gong show." >> and this is the set of gongs. >> the very set? [ gongs chiming ] >> a piece of history. >> you want to liken it to a stradivarius except there's only one set of true puccini gongs. >> a musical mystery. >> how the heck did they end up in a warehouse in queens? [ drumroll plays ] >> but drumroll, please. [ castanets clicking musically ] can she strike a deal to fund her husband's dying wish? >> are you hoping that someone will see them and say, "here's a check"? >> you better believe it. [ door creaks ] [ wind howls ] [ thunder rumbles ] [ bird caws ]


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