tv WSJ at Large With Gerry Baker FOX Business May 26, 2019 8:30pm-9:00pm EDT
join us 6 to 9 eastern with mornings with marie on fox business network. spend ornings with us. have a great rest of your weekend. thank you for joining me, i will see you again next time. gerry: hello and welcome to "wall street journal at large". some of the biggest challenges the united states faces right now are in asia. the immediate threat from north korea nuclear ambitions for the economic relationship with china with president trump has been tussling over trade. above all there is the strategic challenge that beijing poses as a project is muscle and power in the region in places like the south china sea and around the world. china's economy is already the
second largest in the world. and if it's leaders get their way will overtake the u.s. sometime in the next 20 years or so. but america has key allies in the region, japan most notably peer but also important countries in southeast asia. how should president trump handle china and what roles will allies plan that? this would have been in tokyo for the wall street journal annual meeting. where people gather to discuss the issues.i sat there with many of them and talked about challenges for the united states particularly in asia. i spoke with the journal executive washington editor to talk about what is happening in the us and how politics and policy here are affecting united states relations with asia. >> is interesting because the environment is so polarized that it is, it obscures area where there really is bipartisan agreement and this is one of them. a surprisingly because as you say there is a succession of republican and democratic
residents was ideal relationship with china was to be close to china to warm up to china, to believe that over time the chinese would sort of join the club if encouraged to do so. i think president trump arrived and set the mom better than most people because it had changed that there was a great deal of america frustration with china that there was both, on the business and political level of feeling that the game was kind of rigged and enough. and donald trump came in and articulated that. he has got support from chuck schumer and ali said, people in the republican party and even nancy pelosi. sherrod brown is a democrat from ohio, -- i think this has been hidden by the fact that there is a fight about everything in washington. but reality is that he has bipartisan support. with democrats if they want to do something different i think they would. i think they would have fewer fights with allies in order to focus everybody on the
confrontation or discussion at least with china. they would have fewer of the peripheral trade fights that trump has. they would probably try to go back to ctt. it's probably more popular among democrats than when had a chance to ratify and didn't do it. that was a mistake i think they would return to tpp. there be more when it comes to china. gerry: the security issue, one of the most striking thing the trump administration did when they measly came in and releasing the national security strategy, the official bible of, that is supposed to hold the kind of keys to u.s. strategic policy. again, very striking change from the national security strategy of previous administrations. the trump administration laid out its policy and severe cleary policy, our goal is containment to china and russia but china in particular.
john is a strategic competitor in china needed to be contained and you know we've heard from the ambassador too to see what the implications of that might be. but do think the democrats would accept that sort of strategic competition in addition to the economics and trade, do you think they would accept the denies this is now a long-term strategic competition with china. >> i think so. the, the discussion earlier about the national, the defense strategy. the guy who wrote that strategy released it was intellectual it was james mattis who could easily have been secretary clinton -- i think your talk about an area of consensus. rhetoric be different? yes it would be different. with the relations around the edge, relationships around the edge with china be different? yeah, i think until the south koreans the democrats would be much less stringent on trade and much less on the need for
greater defense contributions for example. but i think that the view in washington generally is that we are at the beginning phase of a long-term global competition with the chinese. and that doesn't have to be hostile. it is not to be angry.but it is real and it exists and it will be that way for a fair amount of the next 50 to 100 years. gerry: about domestic political implications in this fight with china in particular. chinese and responding to the u.s. first round of tariffs, were very careful and canny. a lot of people thought they really, they've done their political homework.they look very carefully at the kind of product that they would hit hard and they had hard, a range of agricultural products in particular you know soybeans. that is devastated a lot of the farming communities and the american midwest. and some key states where donald trump won a majority in
2016. yet the economic pain doesn't again seem to be translating into political pain or take the tariffs in general. there ultimately a tax on consumers. there is a lot of good evidence now that the tariffs that the u.s. imposed on chinese goods are basically being absorbed. essentially being absorbed by american consumers, they are not hitting chinese companies particularly that hard. there is domestic over chinese goods but consumers are paying more, certain committees are being hit hard by the chinese retaliation. and yet it doesn't seem to be moving things politically. is it just early days yet or are we just not seeing that? because nothing moves things politically. everyone in the us is so locked into their views is almost impossible to shake people out of their views. that is the first thing to keep in mind for second thing, this is a fascinating area because the people, you could argue people who benefited most from trump economic policies are democrats on the coast.
where the kinds are great and people who are being heard are people in the center of the country particularly farmers who are paying, bearing the brunt of the burden for terrace. but it doesn't shake their so far, did not shake their belief that the president is doing the right thing. some of us were talking last night.i happen to be from western kansas originally. which is, western kansas -- that is all out there, wheat farms, basically. [laughter] and so, i had lunch a month or so ago with the congressman who represents the district. i asked him what to think about donald trump? and he says they love him. and i said why? because they are suffering pain because their main export market is china, it has been hurt considerably by the tariffs. and he said the congressman said it is true, they are all paying a price.but two things, they think is temporary. they believe this will turn out
as the president says, to be better for them in the long run. and interestingly, will have their own stories about trading with china. china buying and then paying less. they have been treated well either and they like many multinational corporations in that sense. i think the picture for the president's point of view is that even people being hurt by the trade policies and who are inclined to like him are still inclined to like you. there's a time limit on that. i don't know what the time limit is. but we haven't had that buzzer yet. gerry: coming up next, more my conversation with jerry seib from tokyo. stay with us. all money managers might seem the same, but some give their clients cookie cutter portfolios. fisher investments tailors portfolios to your goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions
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washington editor of wall street journal, jerry seib. >> the democratic primaries getting underwood way with the first debate coming up next month. -- 2425. >> 24. gerry: we have one candidate for almost every state or almost every primary. even following politics for decades. joe biden declared, he jumped up to a big lead in the polls. no one has voted yet no one is really taking this seriously. how does it look to you, and again, what it might mean for american foreign policy, if biden is going to be the one, what might that mean in terms of if he were to beat donald trump next year, how might that change american, american posture and what we've seen over the last few years? >> i think the biden strategy is fascinating. he that all the others, 20
others announce, come out and attempt to do their part to move the democratic party to the left. that was a prevailing view. they all are out there and old joe biden walked to the door with a completely different proposition. gerry: sleepy joe. >> he's not very sleepy by the way. i don't understand the nickname. if you have met joe biden he's a lot of things, he is very hands on. so he walks through the door with a completely different proposition. his proposition is a democrats and it really move as far left as everyone thinks but the people who won the house of representatives for the democrats in 2018, voters in the middle. suburban house our second vote democratic or republican. thatis a bigger constituency . and b, his proposition is yes, this election is totally about donald trump. he's right, it is all about him.
full on but it is not about collusion is about american values. he does not resent american values or the style of governance that people want. i'm going to change that. i'm the one that can take him on one on one. mono e mono. and it worked! i do not know if it will work long term but it is working. democrats treat him as if he is the presumptive nominee. gerry: but can he go? it is early days and let's remember the stage in 2008. i think hillary clinton was 50 points ahead of barack obama. we know there where the actors and donald trump announced in 2015 was with the back of the field too. when i was very early days. particularly question for biden, has the democratic party moved in his left direction under the kind of leadership at least, of bernie sanders and elizabeth warren, you know the
congress, alexandria ocasio-cortez. socialist platform, watching much more liberal platform, public health care for all, public education for all, higher taxes, redistribution. it seems to be role of the energy is. can sleepy joe with all the energy on that side, can he really come along and say no, we're not doing any of that. we will stick to what we've done in the past. is that going to be able to really motivate people to come out and vote? >> first of all, we will see. but secondly by the way, you and i are both all about the presidential campaign that was spectacular failures. so there is plenty of time for this to fall apart. he's not the best candidate in the world. gerry: -- >> look, i think there is energy on the left and the democratic party but it is not the entirety of the party. there are a lot of democrats in the activist circle and in washington who have convinced themselves that is the only place and people like
alexandria ocasio-cortez come to congress having basically run very much aid kind of new wave liberal. reality is she comes from a district where any democrat, any democrat would have won it is not her victory told you something about a change of the democratic party. democrats who won immoderate districts where republicans had been in office, there's the people in the middle of the party. there is a tricky thing that joe biden has to do which is to acknowledge the energy on the left but also kind of play, pull it back to the center while taking advantage of the prevailing number one view among democrats is whatever you say about policy -- he can keep the conversation that lena might last for a while. gerry: up next, taking a close look at security concerns in asia with defense minister of a key country there, singapore.
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spoke with the singapore defense minister. we talked about the challenges in the asia-pacific region especially the united states. how do singapore and other countries in the region, other countries in asia pacific, have all this and farmer have the two major superpowers really coming toe to toe to some extent and how does it affect you and how do you navigate it. >> we handle it with bated breath. and anticipation and about circumstances we are in.
and as you point out it is the central preoccupation all countries will have to consider. and the stopping point is in any country supposed to choose sides and everyone loses. that is a scenario that you want to avoid but even as we say that, it looks increasingly moredifficult. whether it is a choice of technology , alliances, the business partnerships and so on and so forth. but to set the context, china 's growth has been good for asia. we are talking you look at the last two decades. -- is growing i remember in the early mid 2000 after 9/11, the economy took a dive and other
economies also then we bounced back. much of that growth was attributed to the chinese as well as india's economy.china was growing on average, 10 percent. india six, seven percent. the atlantic, i think it only managed one to three percent especially in the last decade. europe too. so china's growth has been positive for this region. for us, but it is also the disparity between the china, as well as u.s. and eu. i think we are seeing some consequences today. é of globalization. the feeling that u.s. was upholding a system in which all of us remember was the chief cheerleader, not the occupant
but felt it was unfairly done by. >> the u.s. is using all kinds of tools now i think it is fair to say to try and contain china. some would argue that the -- while waiting for example, reducing independent of other countries in particular, countries and also say on china, how do you see something that that? while we in particular. you see the threat from huawei in the way that the united states does? is that an intelligence assessment? and a defense assessment that singapore shares? >> extreme scenario the fear that any technological company with market share would put into supply chain, instruments or chips or components that allow a back door. that is a specific threat. and if you ask experts, they would say, not so likely.
not so likely. in principle. but in the case of huawei. >> i was going to add on. the difficulty is in detecting such component. we are in the security business. if you want to analyze one motherboard for such a component, it would take you quite a long time. it is a theoretical threat. made more difficult because actually very hard. gerry: who think is the biggest threat to global stability or regional stability, the united states or china? >> it would be intemperate action.>> okay who is more likely to take that action? >> depends on the mood of the day. >> we so what happened in the south china sea. china has established its dominion essentially over the south china sea nohow, hasn't it? >> i wouldn't say that. you -- someone pointed out to china is trying to establish his own monroe doctrine.
in the south china sea. i think the parallels are very far away which america established the monroe doctrine towards colonial powers and the late 1800s. any action on this colony both north american, south american will be a threat, china is very far from that. that's why you have the freedom of navigation passengers in which china dutifully asserts its alleged claims and in which the u.s. and others who conduct these passages respond. it's hardly a threat. spira just ahead, explain why the way america deals with china would be the greatest to promote a challenge of our time. did you know with vanishing deductible,
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♪r-e-s-p-e-c-t ♪take care. tcb, oh ♪(sock it to me, sock it to me, sock it to me, sock it to me)♪ ♪a little respect gerry: it is uncertain timing asia china is rising all the time creating enormous tensions in the region and of course for the whole world. historically when a rising power challenges the existing power, outright conflict is often the result. managing china's rise while maintaining u.s. power and influence in the world is probably going to be the largest diplomatic challenge of our age. indeed of the century. for this administration and for many administrations to come. that is it for us this week,
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