Latest / The Fourcast / China US Trade 'breakthrough': Who blinked first?
Transcript
- 0:00This trade war was the wrong trade war for the United States
- 0:03to start a fight to start with. My concern is that the greatest
- 0:07predictability in the world of today is the unpredictability of
- 0:11the United States, and the greatest certainty in the world
- 0:14of today is the uncertainty of the United States and
- 0:18unfortunately, President Trump. Hello and welcome to the
- 0:26forecast. After months of a vicious cycle
- 0:29of mutual retaliation, as Xi Jinping has put it, Donald Trump
- 0:33and the Chinese leaders seem to have come to a truce in their
- 0:36first meeting in nearly six years.
- 0:38Speaking in South Korea, XI agreed to stop withholding
- 0:41China's rare earth exports for a year and start buying soybeans
- 0:44from America again, while Donald Trump said that he would reduce
- 0:48tariffs and suspend port fees on Chinese ships.
- 0:51But how long will this amicable relationship last?
- 0:55Will all of this signal a closer tie between the world's two
- 0:59biggest economies? Well, to discuss this, I'm
- 1:01joined now by Victor GAO, vice president of the Centre for
- 1:04China and Globalization in Beijing, and Doctor Yujia,
- 1:08senior research fellow on China at Chatham House.
- 1:10Welcome to you both. Let me start with you, Yujia.
- 1:14Is the trade war over? Has it been suspended?
- 1:18And who's won, if anyone? Well, the truth is it's not over
- 1:23yet. What we have right now is a
- 1:25temporary ceasefire between the world two largest economies.
- 1:28Really, if you're judging from the details the two side has
- 1:32been offered for now, I think we'll come to the stage that
- 1:35both end and realize how difficult it is and how
- 1:38dependent each other is towards the economy and has there's a
- 1:43necessary ceasefire for the moment.
- 1:45However, I think really judging from the words of very cautious
- 1:49words from the Chinese state media here is to say the
- 1:53protracted competition with United States difficult
- 1:56relationship between Beijing and Washington is really here to
- 1:58stay. So I think what we have today is
- 2:01both the leader realise politically it's important to
- 2:04have this temporary ceasefire. Victor Donald Trump after the
- 2:09meeting said on Air Force One that the meeting had been
- 2:11amazing. Was it amazing for Xi Jinping?
- 2:17No, definitely not. This trade war was the wrong
- 2:20trade war for the United States to start the fight to start
- 2:24with. China is on the receiving side,
- 2:26and whatever China's doing is in retaliation against the wrongful
- 2:30acts by the United States. And now the United States have
- 2:35felt the heat from the Chinese side has blinked again and
- 2:39again. I think the United States
- 2:41realized that it is futile for the United States trying to
- 2:46achieve a chokehold against China because China has enough
- 2:49wherewithal to fight back. This is the reason why the two
- 2:53sides have decided to back off from each other, at least
- 2:56temporarily. And I think going forward, the
- 2:59litmus test is whether the United States really orders
- 3:02whatever it has agreed in its summit meeting in the Republic
- 3:06of Korea. And that will decide whether
- 3:09China will again retaliate, retaliate against whatever the
- 3:14United States may want to change from what they agreed in South
- 3:18Korea. But as Julia said, they need
- 3:21each other and hasn't, you know, really the saga, the up and down
- 3:25the trade war of the last nine months since Trump took office
- 3:28again shown us, Victor, that actually they do rely on each
- 3:31other. China needs America's markets.
- 3:33America needs China's rare earth metals.
- 3:35Just, you know, to mention two items.
- 3:39Absolutely. China and the United States can
- 3:41do each other better if they really respect each other and
- 3:45deal with each other as equal. If the United States wants to
- 3:49bully China and try to suffocate China, first of all, it will not
- 3:52succeed. Secondly, it will really suffer
- 3:55the retaliation from China. China has never initiated this
- 4:00round of trade war or tariff war.
- 4:02It is always the United States which wants to fight against
- 4:05China, and I hope by now Washington has fully realized it
- 4:10is futile for the United States trying to suppress China by such
- 4:15wrongful acts of tariff war. And China has demonstrated its
- 4:19consistency in terms of its position and policy of fighting
- 4:24back whenever the United States wants to bully China.
- 4:27And China demands to be treated as a complete equal partner with
- 4:31the United States, rather than anything less than an equal
- 4:34partner. Yujia, do you think that China
- 4:38holds stronger hands in this tussle or America?
- 4:42Or are they literally both equal, although they want
- 4:45different things obviously? Well, I think they're actually
- 4:48mostly equal and obviously they want different things.
- 4:51And 1st of most for China, I think what they really want is
- 4:54to increasing its economic strength and also try to enhance
- 4:58in this capability on high end technology.
- 5:01That is to say, it can't withstand geopolitical pressure
- 5:04from the United States and also from the connected W.
- 5:07Now secondly, I think in here as I said earlier, politically both
- 5:12leader won't have some kind of temporary truth and for Donald
- 5:15Trump and he's able to justify to his domestic audience that he
- 5:19has managed his relationship with China, managed tariff
- 5:23issue. Whereas I think ready for
- 5:25Beijing, it's really a matter of taking this as a stalling
- 5:28approach, of taking a longer time to buy his time and try to
- 5:33strengthen his own domestic economic resilience.
- 5:35So I think both want this ceasefire, but for very
- 5:39different reasons in here. Do you think the whole trade war
- 5:42the last 9-10 months was completely pointless Juja?
- 5:47Well, no, it's, I think surely it is really a sense of testing
- 5:52who has the strengths and who blink 1st.
- 5:55And obviously Beijing has really taken a playbook provided by
- 5:59United States, that is to say using the maximum pressure to
- 6:03your opposition to achieve what I want.
- 6:06And I think that's the playbook Beijing has learned.
- 6:08So it put in a way that I think United States has inadvertently
- 6:13become the best teacher for China and how to be a
- 6:16superpower. Victor, what's your response to
- 6:19that? Well, China does not need an
- 6:22additional teacher. China does not want to be a
- 6:25superpower China. China just wants to be treated
- 6:28as an equal and on fair basis. Hang on a minute, I'm going to
- 6:31interrupt you. Then you said China doesn't want
- 6:33to be a superpower. Come on, China wants to be a
- 6:36superpower. China is a superpower.
- 6:39A superpower by Chinese definition.
- 6:41There's some country very abrasive, very much domineering
- 6:45against others, and never treats other countries as an equal.
- 6:49Now, this trade war or the tariff war is completely
- 6:53pointless. It shows that the United States
- 6:56cannot win this trade war. And I hope President Trump will
- 6:59tell the American people that it is the American people who will
- 7:03eventually pay the bulk of all the tariffs charged by the
- 7:06United States against all the other countries, including
- 7:09against China. China will never pay a single
- 7:12penny of the tariff charged by the United States against
- 7:15China's export to the United States.
- 7:17Therefore, I truly believe this trade war is really Much Ado
- 7:22about nothing. It demonstrates the United
- 7:24States doesn't care about free trade.
- 7:26It really wants to throw a wedge into free trade.
- 7:31For what? For damaging and growing its own
- 7:34reputation and respectability. How could he be so sure that
- 7:40China will go on? Go on.
- 7:41Yuja, please weigh in. Sorry, can, if I may, if I may
- 7:43add in here, I mean it's not to disregard or disagree with
- 7:48Doctor GAO in here. I think it's what we have in
- 7:51here right now is a finally AG2 framework and has been admitted
- 7:56by United States. Really, I'm speaking from the
- 7:58evidence from the tweet that has been sent at the White House
- 8:01this morning by saying the G2 meeting is about to start.
- 8:04So I think really after this few months of trade war, United
- 8:08States certainly has treated China as that sense of
- 8:11undisputed equal. So I think that's what China
- 8:14want and I think that's what Doctor Doctor GAO was saying
- 8:17about regarding the respect. I think it's that respect
- 8:19element what they have as of today.
- 8:22Victor GAO, you've been quite rude about America and its
- 8:26intentions in the trade war, but Donald Trump has been nothing
- 8:30but polite about your leader, Xi Jinping.
- 8:32You called him a strong leader, a great leader.
- 8:35Why doesn't Xi Jinping return the compliment?
- 8:38Why don't you return the compliment?
- 8:41I always have the highest respect for the American people
- 8:45and for the ingenuity and the creativity of the United States
- 8:48as a nation. Now, sometimes I'm critical of
- 8:51President Trump and his trade policies.
- 8:53That doesn't mean that Victor GAO has any lack of respect for
- 8:57the American people. Now for President Trump, while I
- 9:01applaud the fact that he used the nice words, present words
- 9:05about China against for President Xi Jinping, we always
- 9:09need to watch whatever he walks and we cannot purely depend on
- 9:14whatever he talks. Therefore, this is the time to
- 9:17see whether he talks to talk and walks the walk.
- 9:21And this will be the litmus test, I think.
- 9:24And my concern is that the greatest predictability in the
- 9:27world of today is the unpredictable unpredictability
- 9:32of the United States, and the greatest certainty in the world
- 9:35of today is the uncertainty of the United States and
- 9:39unfortunately, President Trump. There are many things that
- 9:43Americans admire about China. You know, I myself was
- 9:47travelling through China for quite a long time in 1981 when
- 9:51it was a very, very different country.
- 9:52And as I've seen the extraordinary transformation of
- 9:54China, it is, it's, it's mind blowing, literally, it's
- 9:58extraordinary. I wonder what you, Victor GAO,
- 10:00admire about America. Well, I have the highest
- 10:06admiration you can think about for the American people for
- 10:09their creativity, resourcefulness, as well As for
- 10:13their great natural endowment and very unmatched geopolitical
- 10:19positions in the northern parts of the United States.
- 10:23And I think whatever China is doing is trying its best to make
- 10:27the United States love peace more rather than try to resolve
- 10:32to war to solve any problem between any other with any other
- 10:36country. This is why China never looks
- 10:39down on the United States and China always wants to engage
- 10:43with the United States as an equal partner.
- 10:46And we truly believe that if China and the United States can
- 10:48this can set their sights of the same major issue in the world,
- 10:53there will be nothing in this world which cannot be resolved
- 10:57for our mutual benefits as well As for the benefit of mankind as
- 11:00a whole. Jujia, I mean, Viktor Gal loves
- 11:04to talk about, you know, the China and peace and how it's a
- 11:06peace loving country that wants to spread peace around the
- 11:10world. But when you look at China's
- 11:11military buildup, which is also extraordinary, especially it's
- 11:16naval build up in the region, what is what story does that
- 11:19tell you? Well, there's a plenty of
- 11:22stories in here. I think for for the first layer
- 11:25is really that sense of China's obsession regarding neighboring
- 11:29countries because this is the country's share border with a 14
- 11:32different countries and obviously having secure border
- 11:35and to couple to be paired with the modern army and I think
- 11:39that's absolutely necessary. Now secondly, I think also given
- 11:43Chinese foreign policies obsession towards sovereignty
- 11:45and territorial integrity. So when they come to issues
- 11:48related to Taiwan and when they come to issues ready to solve
- 11:52China Sea of course and China will show a very assertive
- 11:56stance on that. So I think it's just the the way
- 11:59how the Chinese foreign policy and also the military contact as
- 12:02operate as it is today. And of course, I think for many
- 12:06and particularly among the G7 countries when I look this and
- 12:10they would consider this probably bring more fear than
- 12:13admiration regarding China's military capability.
- 12:17What do you think? What do you think China wants to
- 12:19do with its military capability? What's the end goal here, Gigi?
- 12:23Well. The end goal is really about the
- 12:26deterrence to win the war without fighting.
- 12:29I mean, if we come back to a month ago was that gigantic
- 12:33military parade to be put forward at Tiananmen Square?
- 12:36And one thing has been quite clear is that the message has
- 12:39been clear there and that China does have the capability when
- 12:43they come to the military competition.
- 12:45Was United States always the others?
- 12:47However, whether China decided to use it, that's an entirely
- 12:50different matter. Victor GAO is Is that this
- 12:54parade of military hardware that we saw in Beijing, you know, is
- 12:57the language that comes out of your leader, Xi Jinping?
- 13:00Is that about respect? Is it about fear?
- 13:04Is it about domination in the region?
- 13:06What's it about? Well, the victory parade on
- 13:10September the third has only one purpose, that is to defend
- 13:14China's sovereignty and national territorial integrity and to
- 13:19make the United States and the American people love peace more
- 13:24than what they used to. And this is the only purpose.
- 13:27China's National Defence is not a measure up against any of our
- 13:30neighboring countries. It is a measuring up against
- 13:33only one country. That is the United States.
- 13:36And the only purpose of measuring up against the United
- 13:38States is to make sure that the United States will love peace
- 13:42and will no longer be happy to move to the gum and shoot from
- 13:48the hip, especially not vis A vis China.
- 13:51That's the only purpose. But hang on a minute, Victor.
- 13:55It is Chinese components that allow you, you know, the
- 13:59Russians to fire missiles and drones into Ukraine.
- 14:03China could stop the war in Ukraine today if Xi Jinping
- 14:07picked up the phone to Vladimir Putin and said, you know, we can
- 14:10be the best of friends, but you cannot wage this war.
- 14:13He has refused to do that. He has met Vladimir Putin
- 14:17together with the North Korean leader at that parade on the 3rd
- 14:19of September. I mean, these are not exactly
- 14:22peace loving signals, are they? You are wrong with due respect.
- 14:28If China supplies weapons to the Russian side, Russia would have
- 14:34won the war overnight. For example, China has this
- 14:37monster lethal anti drone weapon and system which can shoot down
- 14:43any or any group of drones en masse.
- 14:48And this is exactly what the Russians would need because
- 14:51drones launched and used by the Ukrainians have done havoc
- 14:55against the Russia not only inside the Ukraine but deep
- 14:59inside the Russia. This is ample proof to show that
- 15:03China does not supply weapons to either Russia or Ukraine.
- 15:07And if China supplies weapon to either side, that side receiving
- 15:12China weapon will win the war immediately.
- 15:16Juju is any of that right? Well, I think regarding the
- 15:22Russia, Ukraine and China, and that's an entire separate
- 15:25question, but what we can really judging from the meeting what we
- 15:28had today, I think President Trump even mentioned that was
- 15:31much hoping that can work together with China to resolve
- 15:35this war in Ukraine related matters.
- 15:38So let's see whether the G2, the framework which we just had this
- 15:43morning, we'll be able to solve the Ukraine Russia issue for
- 15:46now. But I think at the moment we
- 15:48have seen a lot of words floating around and very little
- 15:51deeds that how much, firstly Washington get involved and
- 15:54secondly, how much Beijing would like to get involved on European
- 15:57security architecture. But but if China was not
- 16:01providing the kind of non overtly non military aid to
- 16:07Russia that it's been providing, you know, for the last two years
- 16:09or 2 1/2 years of the war, do you think that Russia would not
- 16:12be able to conduct this war as it has done so far?
- 16:17Well, I think weapon is one thing, but another element in
- 16:20here is this regular trade between China and Russia and
- 16:24also the the volumes of trade and that Beijing has purchased
- 16:28from Russia that somehow give the bloodline of the to running
- 16:33the economy. So it's less about the weapon,
- 16:35but I think it's more about the trading relationship that
- 16:38Beijing has offered to Russia right now that seems to putting
- 16:42under the scope being further examined.
- 16:45But to go why is Xi Jinping so friendly with Kim Jong Un of
- 16:50North Korea and Vladimir Putin of Russia?
- 16:52I mean, if he is this great, amazing world leader as Trump
- 16:56has described him, surely he should be keeping a different
- 16:58kind of company. Well, for the record, China and
- 17:03DPRK have the only blood treaty between China and any other
- 17:08country. That means after the end of the
- 17:12Korean War, China and DPRK have signed mutual defence treaty
- 17:17whereby each side will need to come to the other side's defence
- 17:21if the other side is attacked. Now this treaty is automatically
- 17:26renewable after 20 years and it has never been terminated.
- 17:31That means between China and DPRK we do have this time
- 17:36honoured mutual defence treaty and China only has this defence
- 17:40treaty with DPRK, not with any other country.
- 17:44That means if any country wants to second guess China's
- 17:47determination to come to DPRK's aid if DPRK is attacked
- 17:53militarily, then please read the national and the mutual defence
- 17:57treaty between China and DPRK. Now between China and Russia, we
- 18:02engage in normal trade with each other.
- 18:04China will never allow any other country to disapprove or to
- 18:08disqualify China from engaging with any other country,
- 18:13including Russia, in normal trade relations unless it is
- 18:17being blocked by the United Nations Security Council.
- 18:21That is the only litmus test. China does not allow any
- 18:25sanction imposed by any other country except the sanctions
- 18:29blessed by the United Nations Security Council.
- 18:33I want to talk about nuclear weapons and nuclear testing a
- 18:36little bit, if I may. Donald Trump actually, to many
- 18:39people's surprise, also announced today on his way back
- 18:42to Washington that he wants to resume nuclear testing
- 18:46immediately after having not done so for 33 years.
- 18:52Now, what does Beijing make of that statement?
- 18:56Well, Beijing's policy about nuclear weapons and use of
- 19:00nuclear weapons and non use of nuclear weapons against non
- 19:03nuclear weapon countries or nuclear weapon free zones is
- 19:07well recorded. China will never use nuclear
- 19:10weapons against any other country ahead of time.
- 19:13And China will never allow any other country which uses nuclear
- 19:17weapon against China to survive China's nuclear retaliation.
- 19:22That means China has built up MAD capabilities to deter any
- 19:28country in the world which may be MAD enough to strike China
- 19:31with nuclear weapons. China will never do this kind of
- 19:35thing against any other country, but China will never allow that
- 19:39nuclear power to strike China first to survive China's brutal,
- 19:44ruthless nuclear retaliation. I hope President Trump will get
- 19:48that message. And I hope the United States
- 19:50will never ponder the possibility of using nuclear
- 19:53weapon against China because that will trigger immediate
- 19:57nuclear annihilation of the United States by the Chinese
- 20:01retaliation. I mean, the Americans have not
- 20:05even dropped the slightest hint that they might want to target
- 20:07anyone with nuclear weapons, let alone China.
- 20:10So. So why are you so robust in your
- 20:12language? No, it's not.
- 20:15My language is robust. It is.
- 20:18China's position is as robust as you can expect.
- 20:22China will not attack any country first with nuclear
- 20:25weapons, but China will never allow any nuclear power which
- 20:29strikes China first with nuclear weapon to survive China's
- 20:34nuclear retaliation period. That's robustness you may be
- 20:39calling for. And just briefly on this, do you
- 20:41think that China will now also resume testing of nuclear
- 20:45weapons? China has never stopped nuclear
- 20:48testing. China's nuclear stockpile is a
- 20:51fraction of that of the United States or Russia.
- 20:54But China's position is very clear.
- 20:56China will have enough nuclear warheads after the first nuclear
- 21:01strike by any nuclear power to make sure that that nuclear
- 21:05power which strikes China first will be annihilated by nuclear
- 21:09weapon. That is Armageddon, period.
- 21:15I think, yeah, I'd just like to adding on on this element in
- 21:18here. So while we're talking about the
- 21:19PRK, while we're talking about China and we also talk about
- 21:22Russia and Moscow earlier, I think one of the biggest worry
- 21:26Beijing would have right now at this moment is that a close ties
- 21:30between the DPRK and Russia is does not serve China's interests
- 21:35very well. Now having both surrounded by
- 21:38nuclear neighbors and China's policy obviously is do not root
- 21:42out the first by not using the nuclear.
- 21:44However, I think these things need to be said that what Russia
- 21:48and DPRK has been doing is not something at Beijing's best
- 21:52interest at the moment. OK, let's move on to, I want to
- 21:57get back to the, you know, the, the trade relationship between
- 22:00America and China, which is, you know, at the heart of the
- 22:03meeting that we had today. And, and I just wonder, Victor
- 22:07GAO, whether you think at the end of the day, you know,
- 22:10American China can find some kind of mutual understanding
- 22:14where they both, you know, produce high end goods when it
- 22:17comes to, you know, artificial intelligence.
- 22:20You know, they both produce electric vehicles.
- 22:23You know, they help each other on things like climate change.
- 22:26Or do you think that the competition between these two
- 22:29great powers is so intense that actually, whatever anyone says,
- 22:34we are slowly moving towards some kind of confrontation?
- 22:39No, I don't think so. I think about the end of the
- 22:41day, I truly believe in the inevitability of peace between
- 22:45China and the United States. I'm a complete opposer to the
- 22:49so-called destined for war scenario between China and the
- 22:52United States. Allow me to use soybean as an
- 22:55example. China has the biggest demand for
- 22:57soybean and if the United States wants to wait tariff war against
- 23:02China, then China will not buy a single item of soybean to the
- 23:07great detriment of the soybean growers in the United States.
- 23:10That means the United States should give up any idea of
- 23:14weaponizing tariff against China because otherwise China will
- 23:17retaliate. China will be ready to see
- 23:21complete winding down to zero of the two way trading goods If the
- 23:26United States wants to weaponize tariff.
- 23:28That is the bottom line. China wants to engage with the
- 23:31United States. China wants to buy as much
- 23:34soybean as the American farmers can grow and China's the only
- 23:38biggest market for soybean amazingly.
- 23:41Therefore, President Trump should really think about the
- 23:44well-being of the American farmers before he even thinks
- 23:48about the crazy idea of launching tariff war against
- 23:51China. We should go back to square one.
- 23:54That means China and the United States don't weaponize tariff
- 23:58against each other. That is the better way between
- 24:01China and the United States. Right.
- 24:04But what about Chinese factories?
- 24:05You have a manufacturing bubble. You know, you after your
- 24:09property bubble burst, you put all your assets and all your
- 24:12investment into manufacturing. You want to become, you know,
- 24:15the, the world's, you know, single most important
- 24:18manufacturing power and you're brilliant at it.
- 24:20But you need to sell the stuff that you make.
- 24:22And you can't sell all of it to China or even to Southeast Asia
- 24:26or to Europe. You're going to have to sell a
- 24:28lot of it to America. So that is where the Americans
- 24:31have a stranglehold over you, don't they?
- 24:34Because if you don't sell the stuff, your factories go bust
- 24:36and your workers get very unhappy.
- 24:39With due respect, I completely disagree with you, Sir.
- 24:43Why? Because the United States has
- 24:45been calling for decoupling for at least seven or eight years.
- 24:49Do you think China will not prepare for that extreme
- 24:53situation? China's fully prepared if the
- 24:56United States really wants to decouple from China, meaning
- 24:59there will be no more trade between China and the United
- 25:01States, if that's what the United States wants to see, and
- 25:04China will be fully prepared. Do you know what we are talking
- 25:07about now? We are talking about landing
- 25:10persons on the moon ahead of any other country.
- 25:14We are talking about fusion technology to generate power
- 25:18without limit and bringing the benefits to the 8 billion people
- 25:22in the world. We are talking about deep space,
- 25:25deep sea. We are talking about everything
- 25:27to be enabled by AI. We are not not talking about
- 25:31producing toys or garments or textiles or shoes anymore.
- 25:36We are talking really about the cutting edge technology, the
- 25:40breakthrough that mankind can think about.
- 25:43That will be the stabilizing factor for the Chinese economic
- 25:47growth. I don't think there is any other
- 25:49country in the world which is so focused on what we call new
- 25:54qualitative productivity, which is a tongue twister, but which
- 25:57means you generate productivity through technological
- 26:03breakthroughs. That's what China is focused
- 26:06upon now, all. Right.
- 26:08Do you? Do you buy?
- 26:10Do you buy what Victor is selling?
- 26:13Just to putting this the not the tongue twister, but the new
- 26:16terms on the economic terms that Beijing has defined.
- 26:20Putting it aside, I think what we have seen so far really again
- 26:24judging from the readouts we have from both and today is
- 26:27actually United States has promising to invested more in
- 26:30China. And that is actually not
- 26:32reducing the dependency, but actually increasing the
- 26:36dependency between China and United States.
- 26:38And if we're talking about market behaviour and what United
- 26:42States been asking, asking China to purchasing extra soya beans,
- 26:46that is actually a market distortion that is not actually
- 26:49something that follow the market economy.
- 26:51So whether China's willing to do that, that is up to Beijing to
- 26:54decide. On one hand.
- 26:55Then I think on the other hand, Beijing has already learned from
- 26:58the sense of unpredictability and also the the economic
- 27:03behaviour that's set up by the Trump administration.
- 27:05So what Beijing has decided is not to putting all the eggs in
- 27:09one basket. I think equally United States is
- 27:11playing on a similar strategy in here, do not overlay dependent
- 27:16on China and like likewise I think European Union does the
- 27:18same thing. So I think what we have right
- 27:21now is every single country, major economies in the world,
- 27:24they all become so inward looking and it has LED into the
- 27:28situation where we are today. So it's less of the dependency,
- 27:31but it's more about setting the forgeries and how can I protect
- 27:34oneself. OK.
- 27:37Just finally, I want to spend a minute or two talking about
- 27:39Taiwan. First, you Juja Taiwan, as far
- 27:43as I can gather, didn't come up at all in the meeting.
- 27:46Certainly there was nothing in the official readout about
- 27:48Taiwan. Does that surprise you?
- 27:52No, it's not surprising me at all.
- 27:53I think really judging from the the results and also judging
- 27:57from the mood was United States that obviously Taiwan is a
- 28:00major, major issue between the two.
- 28:03And then that's probably the fundamental agreement between
- 28:06the Beijing and the United States back to 1979 when they
- 28:09formally established diplomatic relations.
- 28:12So I think any major changes regarding Taiwan, firstly that
- 28:16would require to have some at least foundational level of
- 28:19trust between Beijing and Washington.
- 28:22And moment I do not see that trust actually exist.
- 28:24And secondly, they are China Hawks around the Trump
- 28:28administration and WHO deliberately looking for changes
- 28:33in status towards Taiwan. So I think really for Donald
- 28:36Trump himself, and he's not really willing to make a very
- 28:39bold move for that. But you got a final question to
- 28:43you. Do you think if you if your
- 28:46government were to encroach on Taiwan militarily, either
- 28:49through a naval blockade or an invasion, and we know that Xi
- 28:52Jinping is on the record for saying that he wants Taiwan to
- 28:55be reunified, as you put it, with the motherland at some
- 28:58stage before he leaves office. Do you think that President
- 29:02Trump, should he be in the White House at the time, will sit by
- 29:06and do nothing, or will he intervene and use American power
- 29:10to stop you? First of all, let's be honest,
- 29:13the real status of the relations across the two sides of the
- 29:17Taiwan Strait is the unfinished civil war back in 1949.
- 29:21So if China really moves to achieve unification or
- 29:25liberation of Taiwan, it is the resurrection of the unfinished
- 29:29civil war. Do you really think the United
- 29:31States or President Trump or anyone else in the White House
- 29:34want to be involved in the civil war between the two sides of the
- 29:37Taiwan Strait? That's number one.
- 29:39I'm completely ruling that option out on the table.
- 29:43Secondly, the status of Taiwan being part of China is carving
- 29:48stone in the Cairo Declaration and the Boston Proclamation.
- 29:51No one can change that. Whether you want to try that or
- 29:54not, that's another matter. But you can never change the
- 29:57final verdict of history in the Cairo Declaration and the Boston
- 30:01Proclamation, meaning China's completely on the right side of
- 30:05history. If we want to have another civil
- 30:07war to finish the unfinished civil war back in 1949, that's
- 30:12China's internal matter. Taiwan will be liberated by
- 30:16peaceful means preferably, or by a resurrected civil war if it is
- 30:22necessary. But you don't.
- 30:24Want to be liberated, Victor Gow.
- 30:25They don't want to be liberated. They quite like living in their
- 30:28own country. The majority of Tiny do not want
- 30:31to be part of the People's Republic of China.
- 30:34Well, the people in the Confederation did not want to
- 30:37join the Union, but President Lincoln decided otherwise.
- 30:40President Lincoln decided to bring them back to the Union
- 30:43with force if it is necessary. And this is exactly what the
- 30:47Union did against the Confederation.
- 30:50And that is the only logical conclusion for the relations
- 30:54between the Federation on the one side and the Confederation
- 30:57on the other side. The Confederation was defeated
- 31:00and now they are very much part of the Union.
- 31:03And the United States after the Civil War has been one nation
- 31:08under God, indivisible. That is the truth of the United
- 31:11States. It will be the truth for China
- 31:13too. One day when China is reunited,
- 31:16you will see China will never be divisible and no one can ever
- 31:21dare to split any part of China away from China.
- 31:26Very quick one to you Jujo, to finish the podcast.
- 31:30In how many years from now do you expect Beijing to make a
- 31:33move on Taiwan? Well, I think we have the second
- 31:37Centennial goal. So at some .2049 we have been
- 31:43reserved one way or another. Let me put in here.
- 31:46That's that's quite a long time frame, I think.
- 31:48I think Xi Jinping would like to be done sooner rather than
- 31:51later. Thanks very much to both of you.
- 31:54Victor GAO, who stayed up late for us in Beijing, thank you
- 31:57very much indeed. And Doctor Zhujia, Dr. GAO and
- 32:00Doctor Zhujia in London, thanks to you as well.
- 32:02That's it for this episode of THE Forecast.
- 32:04Until next time, goodbye.