 There's a there's a great Part part in the movie where Dan slaying a member of the US China Commission says that we're already in a trade war and I think that's the case. It's an undeclared trade war if you think about what trade wars are they're basically When one country bends the rules for advantage and China has has been doing that very very Effectively since they join and join the join the WTO. So I don't advocate a trade Here's what's the most interesting thing if you simply take the currency manipulation issue Okay, you just take that issue alone. They have an undervalued currency by 40% gives them an advantage It's basically like a tariff on our exports to China and a subsidy To their exports here now that's worked for them up to this point in time But if you were to let them strengthen their currency now Gradually say over a two-year period it would solve the most fundamental problem facing the Chinese economy Which is they're too export dependent in order for China to maintain a steady growth rate They've got to sell to Europe and the US and now you have US and Europe are so weak They can't do that. So a stronger Yuan coupled with health and pension reform would give birth to a Chinese consumer and therefore Basically make that country strong Prosperous and less in conflict with us my own view is that that China respects strength and exploits weakness and What we've been showing China for a long time now Is either benign neglect in the Bush administration or a flat-out weakness in the Clinton administration one of the first Things that Hillary Clinton did and I've been a fan of hers But one of the first things she did in 2008 when she became Secretary of State is it's basically announced in a speech that she would not Hustle the Chinese government about human rights that it was all about trade Relationships and national security things vis-à-vis North Korea and things like that The Chinese will exploit that kind of weakness I believe that if if Barack Obama had kept his promise that he made in 2008 to the people of Michigan and Pennsylvania to brand China a currency manipulator That if he'd kept that promise that we'd have a stronger Yuan and a more balanced trade with China I think that we just simply have to stand up for own interest not tolerate cheating And and I think that the Chinese government will respond positively to that See, you know look I think that that in in in one scenario The relationship between China and the US could be wonderful. Okay? You go you'll see in the film. There's this this is great Rhetoric by Bill Clinton talking about how we were going to let China into the in the WTO and get access to the Biggest market in the world and American companies are going to produce an American soil selling to that market Okay, if the if the Chinese government can make the move now Basically and empower their consumers and move from a third of their economy Consumption to two-thirds like Germany Europe and we are okay. They would buy our stuff We would make at least some of it here Their standard of living would go up and life would be good That's what free and fair trade is supposed to be like but we don't have that now And until we have that the relationship is going to be very very Very conflicting as it is now and and you know You can just see what's going on with with Japan and China and us being drawn into that to know that there's nothing Alarmist about a prediction that there could be a hot war Yeah, things are cheap at Walmart as Gordon Chang says but you have to consider the consequences. So so here's one scenario you have Income basically zero for the last ten years you have 25 million people now out of work And when they go to a Walmart, they can barely pay for anything and it's nice to have the prices as low as possible scenario to 25 million people have a job and They have rising income and they pay a little bit more for their stuff at Walmart. I like that were a lot better Well, there's two things Which is there's an interesting thing going on in the campaign trail Romney comes out and wants to brand China currency Manipulator on his first day in office now The advantage of that is that it's a global solution in other words if you if you impose duties there It would basically be duties and tariffs across the board and would help all industries in America offset that On the other hand Obama when I was down in Ohio in fact in Columbus today I was there he announced some additional cases before the WTO for auto parts Okay, so far in his administration. He's done like eight cases that helps very Specific industries, but it leaves all the other industries apart So the WTO is a very very ineffective mechanism To basically bring somebody to the table on the question of unfair trade practices because you have to go piece by piece Industry by industry and it takes too long Well, who's the US? I mean if you look there's a great great scene in the film this guy Ralph Gomery Who was professor emeritus? I think MIT and very distinguished man And he says he says he's talking about Apple and it's like the shareholders get the profits But China gets the wages right and and what America needs is wages right, so that's that's the conundrum so We're in danger in this country. I mean this whole thing with Romney and the 47% thing right It's scary if you think about it to have 47% of the people in this country not paying any taxes I was I was in Calgary about four days ago Given a speech up there and and they were talking all about it because in Canada. It's only 36% It's only 36% and so our percentage is rising and Rising and rising because we've lost this manufacturing base and we've had zero wage growth, so There it is We gave away The most powerful tool we had to put pressure on the Chinese government on human rights When we led them into the world trade organization Okay, and the history goes like this before China had most favored nation status, which was the precondition for entering the WTO There was an annual right of passage in Congress Basically as to whether or not we were going to renew trade With China under the existing rules. Okay at that point. There was some trade, but it wasn't a flood Okay, so we did it we did it every year and every year we were able to use that debate to extract concessions from the Chinese government on human rights now 1994 was the year that Bill Clinton as president loosened up on that and You'll see in the film a guy named Chris Smith conservative Republican who who focuses a lot on human rights Just disgusted with that because it was a pure sell-out to the multinationals that you'll see also in the film But when we got to 2001 the vote that was held in Congress wasn't to let them into the WTO It was to give them permanent Mfn permanent most favored nation status and that was the best bargaining tool We had up until that point to have them Abide by more humane human rights abuses and you will see in the film. Do we have any Falun Gong in this room? Does anybody know what that is Falun Gong practitioners? Okay, you will see in the film that for the practice of Falun Gong Buddhism It's probably the wrong word Tens of thousands of people have been put not only put in prison work in forced labor camps but Some of them have their organs removed. Well, they're still alive by the government as part of an organ harvesting thing That kind of thing. I mean our government allows that we allow that when we go into a Walmart We as consumers Basically tacitly approve that kind of thing There's a great scene and this I'll end it with this Harry Wu was in a forced labor camp for 19 years. You'll see him in the film. He says in the film China is a dynasty no republic not people's country and he talks about from first-hand experience How the rubber boots we buy the buttons on our shirts the Christmas lights and a lot of stuff in between Are made in forced labor camps by people who get no paid at all And and when I was in Los Angeles that one time along with the Tibetan there was a woman on the stage She's in a movie now. It's called free China and she sat there and told the audience That in 2002 she was a Falun Gong practitioner in a prison camp making rabbits little Furry rabbits that got sold out into the West so the human rights issue is One of many but I'm telling you this country is the greatest democracy in the world has at least some Responsibility to do a lot better on that issue that we're doing