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Trump Heads Into High-Stakes Xi Summit With Everything on the Table · The 47 Morning Update with Ben Ferguson

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  Speaker 1: We think what the president's delivered in terms of messaging standpoint,
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  Speaker 1: we think it's a winner. If you look at the
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  Speaker 2: You're listening to the 47 Morning Update with Ben Ferguson.
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  Speaker 3: Good Thursday morning. It's nice to have you with us
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  Speaker 3: on the 47 Morning Update. And obviously, we've got one
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  Speaker 3: big story. The president of the United States of America,
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  Speaker 3: Donald Trump, is welcoming the man in charge from China,
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  Speaker 3: Xi Jinping. There is a lot to talk about on
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  Speaker 3: the table, including artificial intelligence, tariffs, fentanyl, and also Taiwan.
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  Speaker 3: We're going to break down what is expected to happen
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  Speaker 3: and what the president is going to say. But before
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  Speaker 3: we get to that, the midterm elections are heating up.
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  Speaker 3: It's the 47 Morning Update, and it starts right now.
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  Speaker 2: Story number one.
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  Speaker 3: This morning, the stakes, well, they couldn't be higher. As
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  Speaker 3: President Donald Trump and Chinese President Xi Jinping are preparing
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  Speaker 3: for one of the biggest meetings between the United States
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  Speaker 3: and China in years. And forget the diplomatic handshakes and
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  Speaker 3: the photo opportunities for the moment. Because when these two
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  Speaker 3: men sit down, virtually every major point of friction between
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  Speaker 3: the world's two largest economies could be on the table. Trade, tariffs,
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  Speaker 3: and especially artificial intelligence. And then microchips, and then rare
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  Speaker 3: earth minerals, and then fentanyl that's been killing far too
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  Speaker 3: many Americans. As well as the national security issues that,
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  Speaker 3: you know, they want to talk about over in China.
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  Speaker 3: I'm being sarcastic. Like Taiwan. Well, it's on the table
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  Speaker 3: whether they want to talk about it or not. And
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  Speaker 3: then the overall bigger issue of just straight up national security.
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  Speaker 3: So here is what you need to watch, what you
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  Speaker 3: need to be paying attention to. First thing is this.
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  Speaker 3: Can Donald Trump get a bigger trade deal with China?
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  Speaker 3: And bigger also means a better trade deal. Now, this
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  Speaker 3: may be the most immediate question in the talks. The
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  Speaker 3: United States and China have been operating under a temporary
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  Speaker 3: trade truce. But Trump has made clear throughout his presidency
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  Speaker 3: that he wants something more than promises from Beijing. He
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  Speaker 3: actually wants results. That means American agricultural purchases, greater access
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  Speaker 3: to American companies, Chinese compliance with previous commitments. and potentially
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  Speaker 3: major purchases of American-made products, including aircraft. China, meanwhile, wants
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  Speaker 3: relief and predictability when it comes to American tariffs. That
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  Speaker 3: is where Trump's leverage clearly comes in and is significant. Now,
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  Speaker 3: the president has spent years arguing that America's enormous consumer
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  Speaker 3: market gives Washington massive negotiating power over Beijing. This meeting
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  Speaker 3: gives us another opportunity to see whether Trump can turn
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  Speaker 3: that leverage into actual concessions from China. Now, the second
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  Speaker 3: thing to watch is this. Rare earth minerals, well, that's
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  Speaker 3: going to be something that's extremely important at the negotiating table.
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  Speaker 3: And this could quietly become one of the biggest issues overall.
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  Speaker 3: China has enormous influence over the processing. and supply of
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  Speaker 3: rare earth minerals and magnets, that is a problem. This
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  Speaker 3: is all essential to modern manufacturing. Now, we're talking about
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  Speaker 3: everything from automobiles to electronics to advanced weapons to missiles
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  Speaker 3: and missile systems to the most advanced aircraft and huge
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  Speaker 3: portions of technology and that economy in general. Now, China
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  Speaker 3: understands that leverage more than anyone. And America understands our vulnerability,
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  Speaker 3: which is what President Trump's been talking about since the
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  Speaker 3: day he got back into office. So one of the
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  Speaker 3: questions going into these meetings is whether Trump can secure
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  Speaker 3: greater access to not only these minerals, while the United
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  Speaker 3: States continues trying to build supply chains that aren't dependent
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  Speaker 3: on Beijing. Because America does not want China to have
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  Speaker 3: an economic kill switch over our critical American industries as well. Now,
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  Speaker 3: after Trump and Xi Jinping deal with those issues, there's
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  Speaker 3: even a bigger one that both sides are obviously paying
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  Speaker 3: major attention to. And that is probably, honestly, the most
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  Speaker 3: important issue. Artificial intelligence and computer chips. Now, this is
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  Speaker 3: the issue I believe people should be paying more attention
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  Speaker 3: to than virtually anything else, because America and China, well,
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  Speaker 3: it's really a Cold War race. They are competing not
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  Speaker 3: only over who sells more cars or who has better
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  Speaker 3: trade balances. Yeah, those are minor compared to what we're
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  Speaker 3: talking about right now. We're talking about competing over who
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  Speaker 3: leads the next technology revolution, who controls the data and
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  Speaker 3: who shapes the narrative. Artificial intelligence literally is reshaping manufacturing.
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  Speaker 5: It's reshaping medicine.
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  Speaker 3: It's reshaping military technology and intelligence gathering and cyber warfare
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  Speaker 3: and virtually every major industry on Earth. Now, America currently
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  Speaker 3: possesses enormous advantages in advanced semiconductor technology and A.I., In China,
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  Speaker 3: they've been spending countless dollars trying to influence America to
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  Speaker 3: shut down AI and AI data centers. We found out
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  Speaker 3: recently they had more than 200,000 bots online. They were
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  Speaker 3: putting out misinformation to try to influence the American public
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  Speaker 3: to stop having AI be a part of America's future.
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  Speaker 3: And China, they feel like that is how they close
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  Speaker 3: that gap. Now, China also has companies like Hawaii who
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  Speaker 3: control Beijing's efforts to develop a technology ecosystem that doesn't
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  Speaker 3: depend upon American companies. And that's why advanced American chips
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  Speaker 3: have become such a massive national security issue. I want
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  Speaker 3: you to listen carefully to anything Trump says about chips,
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  Speaker 3: about AI exports and American technology, because this isn't merely
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  Speaker 3: a trade fight. This is a fight over technological leadership,
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  Speaker 3: and it absolutely has to deal with national security.
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  Speaker 5: And the way that wars could be fought in the future.
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  Speaker 3: And let's be clear, China is all about stealing technology
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  Speaker 3: and espionage. They're spending more money now than at any
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  Speaker 3: other time, apparently, when it comes to trying to get
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  Speaker 3: people into this country to be spies and to steal
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  Speaker 3: American technology.
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  Speaker 5: They're really good at it, by the way.
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  Speaker 3: And they're moving forward with more focus now than ever
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  Speaker 3: before when it comes to trying to steal American technology. Now,
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  Speaker 3: the other issue that the president is going to bring
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  Speaker 3: up and China is going to play ignorant to has
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  Speaker 3: nothing to do with AI, has nothing to do with technology.
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  Speaker 3: It has to do with how many Americans are dying
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  Speaker 3: because the fentanyl that's coming in from China. Trump has
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  Speaker 3: repeatedly pushed China over the chemicals and the precursor materials
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  Speaker 3: that ultimately make their way into the fentanyl supply chain.
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  Speaker 3: China has announced, quote, new guidelines dealing with fentanyl related
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  Speaker 3: crimes immediately before these meetings. But that could just be
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  Speaker 3: lip service. The question now is whether Beijing is prepared
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  Speaker 3: to provide measurable cooperation and, most importantly, enforcement. Or are
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  Speaker 3: they just lying to America yet again? Trump is going
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  Speaker 3: to want to be able to come back to the
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  Speaker 3: American people and say, hey, China isn't just talking about fentanyl.
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  Speaker 3: They're actually doing something about stopping the supply chain to
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  Speaker 3: all the cartels that are shipping it into this country
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  Speaker 3: with these fake pills that are costing so many Americans
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  Speaker 3: their lives. Many Americans think they're taking something that has
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  Speaker 3: no chance of killing them and it's laced with fentanyl
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  Speaker 3: and then they die. That is a problem and the
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  Speaker 3: president is clearly focused on it. And then there's one
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  Speaker 3: other big issue that does deal with national security. It's
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  Speaker 3: the issue of Taiwan. It's something China doesn't want to
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  Speaker 3: talk about because they don't want to negotiate on it.
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  Speaker 3: But this issue has been hanging over virtually everything. China,
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  Speaker 3: they say they consider Taiwan part of its territory and
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  Speaker 3: America should leave them alone. Beijing has repeatedly made it
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  Speaker 3: clear that it not only views Taiwan as theirs, but
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  Speaker 3: also as a red line issue. The United States also
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  Speaker 3: has enormous economic and security interests in maintaining peace and
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  Speaker 3: stability across the Taiwan Strait. And Taiwan is incredibly important
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  Speaker 3: to the world's semiconductor industry as well. So yes, AI
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  Speaker 3: and semiconductors in Taiwan are all intertwined in these negotiations. Now,
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  Speaker 3: does Xi increase the pressure? Does Trump reiterate American policy?
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  Speaker 3: And do we hear anything about military communications designed to
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  Speaker 3: prevent an accident or a miscalculation from turning into a
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  Speaker 3: much larger.
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  Speaker 5: War or conflict?
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  Speaker 3: Because that's where the economic competition could potentially become military confrontation.
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  Speaker 3: Those are the issues the president has to deal with
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  Speaker 3: at the table. And finally, we also just have to
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  Speaker 3: look at one other thing. And this goes back to
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  Speaker 3: just body language. Watching the relationship between Donald Trump and Xi.
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  Speaker 3: Donald Trump has always approached Xi in an unusual way.
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  Speaker 3: He can praise Xi personally while simultaneously threatening massive tariffs
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  Speaker 3: or confronting China economically. Trump's theory of negotiations has often
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  Speaker 3: been maintain the personal relationship, but use American economic power aggressively.
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  Speaker 3: Xi comes into this meeting with his own objectives. China
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  Speaker 3: wants tariff stability. It wants greater access to American technology.
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  Speaker 3: It wants fewer restrictions on Chinese companies. And it wants
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  Speaker 3: Washington to stay out of what Beijing considers its internal affairs.
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  Speaker 3: particularly with Taiwan. Now, Trump has made it clear he
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  Speaker 3: wants China to buy more American products and opening up
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  Speaker 3: its markets to American goods and cooperating, truly, not just
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  Speaker 3: saying it, but actually doing it on fentanyl and critical
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  Speaker 3: minerals and not using America's own technology to leapfrog the
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  Speaker 3: United States of America by stealing it. This is what
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  Speaker 3: is going to be talked about the meeting, and it's massive. Now,
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  Speaker 3: there's also a sidebar to this. There are some in Washington,
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  Speaker 3: even Republicans, that are criticizing the way that President Trump
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  Speaker 3: is celebrating this meeting and welcoming Xi to America. That's
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  Speaker 3: part of the reason why I talked about how the
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  Speaker 3: president's diplomacy has been, hey, we can talk and be friendly,
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  Speaker 3: but I'm also going to be tough on the different
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  Speaker 3: sanctions and things I can use to my advantage. Well,
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  Speaker 3: the Secretary of State, Marco Rubio, was asked about this today.
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  Speaker 3: And here's what he said. Guys.
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  Speaker 7: Let me just say it to you this way because
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  Speaker 7: I think this is important, and I used to have
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  Speaker 7: that job too in the Senate, so I understand it
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  Speaker 7: and I respect the role that it plays in our system.
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  Speaker 7: The United States and China are the two largest economies
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  Speaker 7: in the world. The United States and China are probably
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  Speaker 7: the two most powerful militaries in the world. The relationship
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  Speaker 7: between the United States and China will define the 21st century,
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  Speaker 7: what happens in that relationship. The idea that we would
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  Speaker 7: not interact with them at the highest levels is irresponsible.
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  Speaker 4: It's outrageous. We have to. That doesn't mean we don't
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  Speaker 4: have strong disagreements. Of course we do. But even at
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  Speaker 4: the height of the Cold War.
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  Speaker 7: Even in the midst of the threat of nuclear annihilation
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  Speaker 7: and life ending on the earth, the United States had
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  Speaker 7: communications and meetings often with Russian officials and Soviet officials.
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  Speaker 7: And thank God we did because it prevented a real war.
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  Speaker 4: So we....
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  Speaker 7: We have, I think it's an obligation to be able
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  Speaker 7: to interact and speak to at the highest levels.
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  Speaker 4: Now, and I think that's.
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  Speaker 7: What this visit reflects, is the President's belief that no
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  Speaker 7: matter what our disagreements and differences may be with the
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  Speaker 7: Chinese government, this is not some small country. This is
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  Speaker 7: the second largest economy in the world and a pretty
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  Speaker 7: substantial military that's undergoing the most rapid military buildup probably
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  Speaker 7: in history. And by the way, a country that we
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  Speaker 7: also have very strong points of friction with when it
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  Speaker 7: comes to trade and supply chains and critical minerals and
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  Speaker 7: things of this nature. So I think it's just responsible
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  Speaker 7: statecraft for our leaders to speak.
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  Speaker 4: And meet with one another. And that's the way we
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  Speaker 4: view it.
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  Speaker 7: That's the way we view this visit. We had a
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  Speaker 7: visit to China. They hosted us earlier this year. Part
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  Speaker 7: of the agreement is that we would visit there, they
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  Speaker 7: would visit here. And this is the back end of
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  Speaker 7: that agreement. And there'll be an opportunity for them to
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  Speaker 7: interact again potentially later this year, both at APEC in
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  Speaker 7: China and at the G20 in Florida.
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  Speaker 3: So there you have it, a throwdown there from Marco Rubio,
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  Speaker 3: making it very clear that those who are criticizing President
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  Speaker 3: Trump bringing President Xi to America, well, as he described it,
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  Speaker 3: let me just say it to you this way.
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  Speaker 5: The U.S.
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  Speaker 3: And China are probably the two most powerful militaries in
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  Speaker 3: the world. The idea we would not interact with them
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  Speaker 3: at the highest levels is irresponsible.
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  Speaker 5: It's outrageous. We have to.
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  Speaker 3: And that is, well, the precursors for what we have today,
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  Speaker 3: a massive meeting that's going to take place tomorrow.
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  Speaker 5: And I'll have all the details for you. Do not worry.
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  Speaker 2: Thank you for listening to the 47 Morning Update with
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  Speaker 2: Ben Ferguson. Please make sure you hit subscribe wherever you're
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  Speaker 2: listening to this podcast right now. And for more in-depth news,
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  Speaker 2: also subscribe to the Ben Ferguson podcast. And we will
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  Speaker 2: see you back here tomorrow.