Gingrich: China economy can't take the battering Trump will deliver

Channel: Fox Business
Published: 05/13/2019 01:51 PM

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Fox News contributor Newt Gingrich on the Trump administration's trade negotiations with China. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the business cap...



Transcript
Stay on trade also turned to the 2020 presidential election president trump tweeted last night about former vice president joe biden. He said this. China is dreaming that sleepy joe biden or any of the others gets elected in 2020. They love ripping off america. Joining us right now is from our house, speaker, fox news, contributor and the author of the new political thriller collusion. Newt gingri ...
h is with us and this tasya mr. speaker. Thank you so much for joining us. I'M glad to be with you. So what do you think about that is that is that what this is about? You think the china figures. Maybe their days are numbered with donald trump and they couldjust wait it out. No, i think the chinese are caught in a real box because, frankly, even if you think trump's not going to get reelected - and i think that person i think, he's going to get reelected, but even if he thought he wasn't you're talking about january of 2021.

Well, their economy is not going to take the battering the trump can deliver if they refuse to negotiate. Remember the biggest customer has a huge advantage in negotiations, because the other side needs the sale. We don't need to sale, the chinese do and the basic argument the trump makes, which i agree with, is that we've had a very one-sided relationship. They used intellectual property theftthey've taken enormous advantage. They have a closed market. They don't allow many of our high tech companies to compete. They subsidize in many ways, and so the chinese are faced with a real crisis because we're telling them we're going to change the rules of the game that have grotesquely favored. You and they're saying we don't want to change the rules of the game. We like the fact they favor us and that's what the core of this argument is. It'S not anything complicated. The details are complex, but the core principles - simple china got to be this big and this wealthy because all the rules, the game, favored them and we tolerated behavior - that's intolerable. Well, nowyou've got a president saying enough, but but half we need to take this chinese of a big problem.

You look at these markets. I mean the chinese have a big problem. Yeah i get that. But are we gon na have a big problem as well? Just gon na cut into economic growth take away all the benefits from the tax cut plan and look at our markets down 400 points. Right now. Look i think the market is responding psychologically. The underlying momentum of the american economy is fine and is going to accelerate and, in fact, if we rebuild our manufacturing as we have been under trump with, i think over 400,000 new manufacturing jobs we're going to endup substituting american products. I'Ll tell you you look at 5g and huawei, for example, you want to produce chips in the us, not produce chips in china. Now there are a whole range of these issues where you may actually see a bigger american economy, not a smaller one and again i'm not a theoretical free trader and neither was adam smith who wrote the wealth of nations. I think when it's to our advantage we ought to have open markets, but when it's not to our advantage, we ought to have closed markets. Speaker gingrich, it's jackie, deangelis, the president, taking a hard line here with china. It'S unprecedented actually in many ways and a lot of economistsare saying if there's any time to do this and to have these negotiations play out, even if it brings volatility to the stock market.

It'S now because, there's strength in this economy right i mean the truth. Is the europeans are totally messed up with a welfare state system that doesn't work and with increasing pressure on you on europe to fall apart as they are with great britain, for example, the chinese aren't going to have a lot of alternative markets, and ultimately we can Take a fight with china on economics, a lot better than the chinese can take a fight with us. Their stock market will suffer worse, but i also - and i know this thisgoes against the spirit of a daily show, so i apologize. I don't worry about ups and downs of the stock market right. I worry about long-term patterns in the long term pattern right now. If the u. s. is remarkable and the truth is, as larry kudlow has said, we are in via engaged in a prosperity cycle and there's every reason to believe it's going to continue and accelerate. We may be the only country in the world that can withstand this kind of pressure, because our domestic economies liberated and our entrepreneurs are going back to work noon. Hi james freeman at the wall street journal one asked about 10. How do how do you get a dealwith china we mentioned? We you hos negotiating for china. Everyone seems to think he's a reformer.

We saw with blake berman's report. The things he was asking for publicly seemed fairly reasonable, but then we read that our paper has a story about china, demanding that the details of a trade agreement not be disclosed publicly, also saying they don't want to legislate against intellectual property theft. I mean obviously some of these demands. We can take others yeah well. First of all, i understand the people's liberation army runs entire units designed to steal. I mean this is not some random behavior by three teenagers in beijing. They are entire units of the people's liberation army who donothing full-time except steal, american print electoral property. So you're asking that one to undertake changes in behavior that are excruciating. I would make a point to everybody in the audience, so you understand what we're dealing with xi. Jinping is the secretary-general of the communist party, the chairman of the military commission and the president of china in that order yeah. This is ultimately they're, not good. There are no moderates in china.

Yeah, there's also a rule that no company can have any important or big innovation before going to the military. First, all innovations have to be used for the military. That'S the priority. So this is this is so much bigger than just trade and andi, and i agree with you as much yeah as china is like building up. You know military bases across the world, the setting up islands in the south, china, sea, putting military bases on those islands. Well, that that's why i wrote a paper recently for the four members of congress yeah outlining that the real issue with 5g and huawei is it's the first worldwide struggle with china, where they've had a very clever, very intelligent strategy, my hats off to him yeah they're, Smart people we need, we need to understand. This is gon na, be a big long-term struggle and they're, not gon na cave, yeah they're, not gon na, certainly turn around and say: oh gee, let usbe nice people, but we'll see i mean we'll see if it takes economic growth out of the good numbers that We'Ve been seeing before you go nude. I got to ask you about the model report in the fall out. The president tweeted last night, this despite two years and millions of dollars spent the democrats, are acting like crazed lunatics ever since the results of the muller report were made public, but they knew there was nothing even before the report was started. It is all a big hoax, the biggest in american history on sunday morning, futures yesterday, my exclusive interview with senator lindsey, graham, he gave us an update on declassifying documents related to the steeldossier and the fisa abuse watch says i don't know why the president hasn't done. It yet he said that he will do it. He told me that and others do you expect him to do it and what will we learn from those documents? Well, i think you'll learned that the fbi was on notice.

That christopher still was not a reliable informant when it came to trump that he was being paid for by the democratic party that his work product had not been vetted and that he was out to get trump and they used the dossier anyway. I think you're going to learn a lot about how the counterintelligence investigation actually opened up that papadopoulos weren'tworking with the russians. They put it in his head that the russians stole clinton emails. All this will be coming sooner rather than later so sonu your reaction. Well. First of all, lindsey graham, is doing a very good job as chairman of the judiciary committee yeah and he's laying out the right framework. My view as a historian is very simple: you had an attempted coup d'etat yeah from obama through the attorney general to the fbi and we're going to learn more and more about how release it is new. It'S great to see the story. Thank you. So much.


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