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MARIA: WELCOME BACK. NOW CHINA IS PUSHING PRESIDENT TRUMP TO DROP SECURITY RESTRICTIONS ON CHINESE DEALS IN AMERICA IN EXCHANGE FOR A MASSIVE INVESTMENT INTO THE U.S. AS TRADE NEGOTIATIONS ARE UNDERWAY. THE PRESIDENT IS CONSIDERING AN AID PACKAGE FOR AMERICAN SOYBEANS FARMERS AS BEIJING BOYCOTTS U.S. IMPORTS, HE'S VOWING TO CONFRONT CHINA'S XI JINPING AT THEIR UPCOMING MEETING AT THE END OF THIS MONTH. JOINING ME WITH MORE ON ALL OF THIS IS THE GATESTONE INSTITUTE SENIOR FELLOW, GORDON CHANG. GOOD TO SEE YOU. THANK YOU SO MUCH FOR BEING HERE.
I WANT TO ASK YOU ABOUT THIS DEAL THAT BEIJING IS TRYING TO GET PRESIDENT TRUMP TO ACCEPT. I MEAN, YOU'RE TALKING ABOUT A MAJOR CHINESE INVESTMENT PLEDGE UP TO A TRILLION DOLLARS. IS THAT GOING TO GET PRESIDENT TRUMP TO RELAX SECURITY RULES ON BEIJING? WHAT DO YOU THINK?
>> WELL, PRESIDENT TRUMP ACTUALLY FLOATED THE IDEA WHEN HE TOLD THE AMERICAN PEOPLE THAT IT WOULD BE A GOOD IDEA THAT THERE WOULD BE MORE CHINESE INVESTMENT IN THE U.S. BUT HE HASN'T PURSUED IT WHICH LOOKS LIKE HE WAS REALLY JUST SORT OF FLOATING A BALLOON. THIS WOULD BE AN EXTRAORDINARILY BAD IDEA BECAUSE CHINESE INVESTMENT BUYS CHINESE INFLUENCE AND THERE'S ALREADY WAY TOO MUCH CHINESE INFLUENCE CORRUPTING OUR COUNTRY. SO WE SHOULD BE GOING IN THE OPPOSITE DIRECTION, NOT ENCOURAGING CHINESE MONEY INTO OUR COUNTRY.
MARIA: YEAH. I MEAN, XI JINPING KNOWS THAT PRESIDENT TRUMP WANTS MORE AND MORE INVESTMENT INTO AMERICA. HE'S TRYING TO FLOAT THIS NOW IN FRONT OF HIM BUT YOU'RE DEALING WITH AN ADVERSARY HERE AND THEY'RE UNDERMINING AMERICA AT EVERY TURN SO I AGREE THIS IS VERY IMPORTANT TO WALK CAREFULLY AROUND, GORDON. I MEAN, SOUTH KOREA NEWS OUTLETS ARE REPORTING THAT THE CHINESE DELEGATION MAY HAVE CANCELED THEIR HOTEL RESERVATIONS IN SEOUL, RAISING QUESTIONS ABOUT XI'S ATTENDANCE THERE. YOU MENTIONED THIS TO ME FIRST LAST WEEK WHEN I SAW YOU, OFF CAMERA, YOU SAID YOU THINK THEY CANCELED THE HOTEL RESERVATIONS. WHAT DO YOU THINK IS HAPPENING HERE? IS XI JINPING GOING TO SHOW UP?
>> WE DON'T KNOW. DAVID PURDUE, OUR AMBASSADOR TO BEIJING ON SEPTEMBER 23 PUBLICLY SAID IN BEIJING THAT IT WAS UNLIKELY THAT PRESIDENTS TRUMP AND XI JINPING WOULD MEET THIS YEAR. THAT WAS FOUR DAYS, MARIA, AFTER TRUMP ON HIS TRUTH SOCIAL POSTING SAID HE WOULD MEET XI JINPING ON SIDE LINES OF THE APEX SUMMIT. THIS IS EXTRAORDINARY. WE DON'T KNOW EXACTLY WHAT'S GOING ON. BUT IT TENDS TO CORROBORATE THESE RUMORS OF INTENSE IN-FIGHTING AT THE TOP OF THE CHINESE POLITICAL SYSTEM BECAUSE IF XI JINPING DOESN'T MEET TRUMP THIS YEAR, IT MEANS PROBABLY THAT XI JINPING IS NOT GOING TO APAC. THAT COULD MEAN HE'S NOT PERMITTED TO LEAVE CHINA OR HE DOESN'T WANT TO LEAVE CHINA FOR FEAR OF NOT BEING ABLE TO GET BACK IN. WE JUST DON'T KNOW. BUT WE DO KNOW THAT SOMETHING IS UP AT THE CHINESE CAPITAL.
MARIA: AND WHEN I GOT BACK FROM DAVOS, I REPORTED THAT I WAS HEARING THAT XI JINPING IS MUCH WEAKER THAN ANYBODY KNEW AND THAT THEY HAD TAKEN THE MILITARY OVERSIGHT AWAY FROM HIM, GORDON. IF HE'S BEING TOLD HE CAN'T LEAVE BEIJING, THEN IT'S EVEN WORSE THAN I THOUGHT.
>> YES. WELL, THE RUMORS ARE THAT AT THE CENTRAL COMMITTEE'S FOURTH PLENUM, OCTOBER 20th, PEOPLE ARE SAYING THERE WILL BE A RESOLUTION OF XI JINPING'S PROBLEMS. THE RUMORS GO FROM ONE POINT XI JINPING IS AS STRONG AS EVER TO XI JINPING WILL LOSE TWO OF HIS THREE POSTS, KEEPING ONLY THE CEREMONIAL ONE AS PRESIDENT OF THE CHINESE STATE, LOSING HIS -- HE'LL NO LONGER BE GENERAL SECRETARY OF THE COMMUNIST PARTY AND MAYBE EVEN MORE IMPORTANT HE WILL NOT BE THE CHAIRMAN OF THE COMMUNIST PARTY'S CENTRAL MILITARY COMMISSION. HERE AGAIN, THESE RUMORS ARE ALL OVER THE PLACE BUT THE ONE THING IS THAT WHEN RUMORS EXIST, IT MEANS THERE ARE PROBLEMS. WE DON'T KNOW THE DIMENSION OF THE PROBLEMS BUT PEOPLE DON'T ALLOW RUMORS TO CIRCULATE WHEN THINGS ARE CALM.
MARIA: I WAS TOLD BY MY SOURCES THEY CHINA THAT THE PEOPLE UNDERSTAND THIS, LIZ PEEK. JUMP IN HERE. BECAUSE THE PEOPLE ARE ALSO UNDERSTANDING THAT XI JINPING MAY NOT BE ALL THIS ALL-POWERFUL AS A LOT OF THE WORLD BELIEVES.
>> YEAH. GORDON, THIS WOULD BE JUST EARTH SHATTERING OR EARTH SHAKING OR WHATEVER IF INDEED XI LOSES POWER. MY QUESTION IS WHAT ARE THE POLITICS OF XI FOR A TRAIT DEAL TRADE DEALWITH THE U.S.? WOULD THAT HELP HIS STANDING IF HE AND HIS GOVERNMENT CAN FORM SOME SORT OF TRADE AGREEMENT WITH TRUMP'S ADMINISTRATION OR IS THAT A NEGATIVE FOR HIM?
>> I THINK THAT IT HELPS HIM. YOU KNOW, TRUMP RIGHT NOW HAS A LOT OF POWER AND A LOT OF SAY OVER XI JINPING'S FUTURE. SO, FOR INSTANCE, IF TRUMP WERE TO MEET XI JINPING, IT WOULD BOLSTER XI'S POSITION IN HIS FIGHT IN THE COMMUNIST PARTY. IF HE DOESN'T MEET TRUMP, I MEAN, DOESN'T MEET XI, THEN CLEARLY THERE'S GOING TO BE A PROBLEM FOR XI SO A LOT OF THE FUTURE OF THIS DEPENDS UPON THE GUY WHO SITS IN THE OVAL OFFICE.
MARIA: WOW. SO INTERESTING. MEANWHILE, THE WALL STREET JOURNAL IS REPORTING THAT CHINA IS SECRETLY PAYING IRAN FOR OIL AND AVOIDS U.S. SANCTIONS AND IT'S ABLE TO CONTINUE TO AVOID SANCTIONS. IT SAYS THIS IS HAPPENING THROUGH A HIDDEN FUNDING CHANNEL INVOLVING A MASSIVE CHINESE STATE OWNED INSURANCE COMPANY AND ANOTHER CHINESE FINANCIAL ENTITY, SO SECRET THAT ITS NAME COULD NOT BE FOUND ON ANY PUBLIC LIST OF CHINESE BANKS OR FINANCIAL FIRMS. THE JOURNAL WRITES THIS, THE HIDDEN FUNDING CONSISTENT YOU CD TIES BETWEEN CHINA AND IRAN. UP TO 8.4 BILLION IN OIL PAYMENTS FLOWED THROUGH LAST YEAR TO FINANCE CHINESE WORK ON LARGE INFRASTRUCTURE PROJECTS IN IRAN, GORDON. YOUR REACTION?
>> CHINA'S BEEN BUYING MORE THAN 90% OF IRAN'S OIL EXPORTS IN THE LAST FEW YEARS AND THEY'VE GOT TO BE PAYING FOR IT SOME WAY AND WHAT THE JOURNAL DID WAS IT REPORTED ON HOW THE PAYMENT CHANNEL WORKED. CLEARLY, THE UNITED STATES NEEDS TO DO SOMETHING. THIS HAS BEEN GOING ON FOR QUITE SOME TIME. WE'VE BEEN NOT IMPOSING COSTS ON CHINA FOR THIS AND THE REASON WHY THIS IS EVEN MORE IMPORTANT IS BECAUSE CHINA'S BEEN BUYING RUSSIAN OIL AS WELL. SO WE NEED TO IMPOSE SANCTIONS BECAUSE THERE'S NO MONEY FOR RUSSIA, THERE'S NO WAR. THE REASON WHY THIS WAR CONTINUES IS BECAUSE THE UNITED STATES DOES NOT IMPOSE THOSE COSTS ON CHINA FOR FUNDING BOTH THE IRANIAN AND RUSSIAN REGIMES.
MARIA: AND THIS IS WHY I'VE BEEN RAILING ON THE FACT THAT THE EUROPEANS ARE STILL BUYING RUSSIAN OIL. STOP BUYING RUSSIAN OIL ALREADY. THIS IS WHAT'S FUNDING HIS WAR ON UKRAINE. CUT OFF THE MONEY. CHINA IS ALSO PROVIDING INTELLIGENCE TO RUSSIA TO HELP MOSCOW LAUNCH MORE PRECISE MISSILE STRIKES IN UKRAINE. THAT'S ACCORDING TO A SENIOR UKRAINIAN OFFICIAL WHO SAID THIS IS HAPPENING TO IDENTIFY AND FURTHER EXPLORE STRATEGIC OBJECTS FOR TARGETING AS WE'VE SEEN IN RECENT MONTHS, THE SITES MAY BELONG TO FOREIGN INVESTORS. IN APRIL UKRAINIAN PRESIDENT ZELENSKYY SAID BEIJING WAS SUPPLYING WEAPONS AND GUNPOWDER TO THE KREMLIN AND SUGGESTED CHINA COULD BE PRODUCING WEAPONS IN RUSSIAN TERRITORY. YOU'VE GOTCHA ALIGNING WITH IRAN AND -- GOT CHINA ALIGN HING WITH IRAN AND ALIGNING WITH RUSSIA, NOT JUST FOR ITS OWN OIL AND GAS BUT TO STRENGTHEN THE ADVERSARIAL MOVES AGAINST AMERICA. NO DOUBT.
>> YES. WELL, CHINA'S BEEN PROVIDING ALL-IN SUPPORT TO RUSSIA FROM THE BEGINNING OF THE WAR, SO FOR INSTANCE N THE FIRST DAYS OF THE CONFLICT DJI, THE CHINESE DRONE MAKER, WAS REPORTEDLY SUPPLYING TARGETING DATA TO RUSSIA BECAUSE THE UKRAINIANS WERE USING DJI DRONES, DJI WAS TELLING RUSSIA WHERE OPERATORS WERE SO RUSSIA COULD TAKE THEM OUT. DJI DENIED THOSE REPORTS BUT THEY'RE UNDOUBTEDLY TRUE AND NOW WE'RE SEEING THE CHINESE MILITARY DIRECTLY IS PROVIDING SATELLITE DATA FOR TARGETING PURPOSES BUT CHINA'S BEEN SUPPLYING WEAPONS FROM THE GET-GO AND CLEARLY RIGHT NOW THEY'VE BEEN DOING SO BECAUSE THE BIDEN ADMINISTRATION ALTHOUGH IT COMPLAINED ABOUT CHINA PROVIDING LETHAL ASSISTANCE AND SAID THAT WAS A RED LINE, BIDEN NEVER DID ANYTHING ABOUT IT SO, YEAH, OF COURSE THE CHINESE ARE GOING TO CONTINUE THIS DIRECT SUPPORT AND BY THE WAY, MARIA, THERE ARE REPORTS THAT THERE ARE CHINESE SOLDIERS IN UKRAINE AND AGAIN WE HAVEN'T DONE ANYTHING ABOUT THAT.
MARIA: NOT ONLY DID JOE BIDEN NOT DO ANYTHING ABOUT CHINA, HE ACTUALLY ASSISTED THEM. HE CANCELED THE CHINA INITIATIVE. LET'S NOT FORGET THAT. RIGHT. I MEAN, AND SO IT TOOK PRESIDENT TRUMP TO GET BACK INTO OFFICE TO ACTUALLY MAKE SERIOUS CHANGE AGAINST THESE ADVERSARIES AS HE PUT AMERICA'S NATIONAL SECURITY FRONT AND CENTER. YOU'VE GOT CHINESE TECHNOLOGY GIANT ALIBABA CEO PRESENTING THE ROADMAN TO ARTIFICIAL SUPER INTELLIGENCE. >>> HE SPOKE TO INVESTORS AS THE A.I. RACE BETWEEN BEIJING AND WASHINGTON HEATS UP. CHINA IS POURING MASSIVE A OF MONEY INTO HIGH END CHIP DEVELOPMENT AT NVIDIA'S CEO WARNED THAT BEIJING IS NANOSECONDS BEHIND THE U.S. SEMICONDUCTORS, GORDON. SO WHAT ABOUT THAT RACE? THAT'S ANOTHER THING THAT XI JINPING IS WATCHING AND TRYING TO OVERTAKE THE UNITED STATES IN, AND THAT'S THE A.I. RACE.
>> WELL, WE'RE A LOT FARTHER AHEAD THAN JENSEN HUANG SAYS. I THINK HIS ASSESSMENT WAS AN EXAGGERATION. WE'RE STILL COMFORTABLY IN THE LEAD. WE COULD LOSE IT AND CHINA HAS GRAND AMBITIONS BUT THEY EXAGGERATE THEIR CAPABILITIES. WE CAN'T BELIEVE WHAT THE CHINESE WANT US TO BELIEVE.
MARIA: THANK YOU SO MUCH. WE'LL CHECK IN SOON. GORDON CHANG ON COMMUN