tv The Journal Editorial Report FOX Business August 28, 2021 6:00pm-7:00pm EDT
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first wuhan in december 2019, a city of 11 million people, out of the 1.3 billion in china. then a month later, europe, italy, first hardest hit a mortality rate of 10%. the u.k. among the hardest hit and sickest. >> the new coronavirus spreading through parts of china has hit the united states. >> then the first case in america, washington state, president trump orders all flights from china stopped. borders closing. new york quickly becoming the epicenter of the outbreak. >> hospitals are overwhelmed with patients. maria: with little information known about the virus, the invisible enemy continues to inflict pain upon our nation and the entire world. >> a global pandemic seizing the world economy. attempting to contain this virus, entire regions and economic sectors are shutting down. maria: then a disinformation campaign begins. chinese websites controlled by the communist party publish made up stories about where the virus originated
>> since january chinese media have been under tighter than usual government controls. journalists have been arrested. social media platforms have been scrubbed. >> the chinese communist party poses a threat to our health, our way of life, as the wuhan virus outbreak clearly has demonstrated. >> china is a very serious threat to the united states, geopolitically, economically, militarily and a threat to the integrity of our institutions. maria: how will the president deal with the chinese dictator? it is playing out in real-time. this is "america versus china". the threat of china is not revolutionary. to understand the depth of it, you have to go back nearly 80 years when china moved towards
marksism, which allows no room for dissent, you speak against the regime, you die. in the 60s, nearly 20 million people were killed or starved so he could keep power. nearly 30 years later, in 1989, hundreds of students led protesters calling for democracy and free speech were gunned down by chinese military in tiananmen square because they were considered a threat to the communist control. today this is still a regime that will stop at nothing to control its people. it has nearly 2 million in detention camps without trial, solely for following their religion, something the government will not allow. >> to explain uighurs, basically the chinese have rounded up muslims, tibetans put them in re-education camps and being guarded by machine guns. >> that's right. they are not allowing them to move freely, indoctrinating them with chinese thoughts, chinese thinking, the ways the west wouldn't do. it is different, historic and it
is important. maria: this is a long-term plan to not just control china but the world. china has been economically and militarily positioning itself for global domination and the progress they have made will shock you. >> the bottom line is china's trying to surpass us economically. they believe they will be the dominant superpower, and we still have to win that contest. maria: leading up to the coronavirus crisis, the leader of china was facing the toughest road of his tenure, his plan for world domination hit a road block as china's economic outlook began to crumble. contributing to the downfall was the 2016 election of president donald trump. >> we have nobody talking to china. they are ripping us left and right. they are taking our jobs. they manipulate their currency better than any country. i want to get u.s. trade balanced. i want to see what do we make with china?
what do we lose with china? maria: a candidate who ran on the platform of holding china accountable was now turning his campaign rhetoric into white house policy. there is some question about the china deal that, you know, you are not going to be able to get china to stop dealing intellectual property. >> we have a policing aspect to this deal that's the strongest anybody has ever had. if that happens, i will turn in the deal. we are taking billions of dollars first time ever against china in tariffs. i'm very happy with that. maria: never before has a dictator for life experienced the pushing and poking as he did with president trump, america's tariffs proved consequential as the chinese economy slid into the slowest growth mode in 29 years. on top of rising pressure from america, protesters on the ground in hong kong, further increased strains on the struggling dictator. their plea for freedom from china was seen and heard around the world, after china tried to
institute a new law that forced anyone charged to be tried in mainland china. a hong kong business tycoon fighting on the front lines of the protest frequently joined me from hong kong live to discuss. >> the dictatorship, we have to keep hong kong free. >> china made a promise. they said one country, two systems, and they are asking the chinese leadership to respect that commitment that they made. >> the situation is very serious. >> i think what it shows is an example of how china uses its power against its own people. >> we are fighting the first battle of this new cold war. we are fighting your battle here. please help us. >> he was arrested at least twice after that interview. the cries heard loud and clear from citizens in hong kong.
a wake-up call to the world about life under the communist rule, something the chinese government prefers to keep out of the public eye. in light of china's turbulent year and its setback on its goal of supremacy, it is not crazy to wonder if this global pandemic was part of xi jinping's road map to getting china back on top. this would not be the first time the country has taken drastic measures as part of its greater goal, looking deeper into the operations of the chinese economy since xi jinping has been in power. every move and decision has been calculated for global conquest. for the past decades the chinese have been using economic subversion to infiltrate countries around the world and collect information from them without most countries even recognizing it until recently. this is done through a number of different techniques but one of the most dangerous has to do with china's policy of civil military fusion. >> the way it works is it says that any innovation that happens
in china's industrial economy must be brought ultimately to the people's revolution army. >> what the chinese are doing is they have the companies that are essentially owned by the communist party and essentially this is a dictatorship, very few people that own these companies. they weaponize them. maria: through this policy all companies based in china are virtually operated by the chinese government and have to share any technology they create or information they gather with the communist party and the military of china, one of the greatest examples of the civil military fusion threat is the chinese telecom company huawei. >> huawei is an instrument of the chinese government. they're deeply connected. it's something that hard for americans to understand. companies cooperate with the united states government, that is they comply with our laws but no president directs an american private company, that's very different in china. they just simply operate under a different set of rules.
maria: the national security threat of huawei coming from the vast amount of data china collects from countries across the globe which acts as a pivotal for chinese information gathering and spying. >> huawei is in effect a wholly owned subsidiary of the chinese communist party. and to have huawei operating as a 5g network in our country or in our allies' countries we believe represents a fundamental compromise of our national security and the privacy of millions of citizens. maria: aware of the immense threat of huawei, the u.s. under president trump banned the company's products, while some european countries continue to work with the company, america intensified pressure by announcing it will share less information with countries that have huawei infrastructure employed. this pressure has had some success. in january of 2020, the european union announced that they will limit their use of huawei products. >> i think they now have become aware of the risk to their own
people, not only directly from the technology, but the risk that america won't be able to work as closely with them, something they often count on and depend upon. maria: i have spoken with huawei's chief security officer on multiple occasions, where he has admitted to stealing trade secrets among other bizarre things. look, i understand that you are on this pr trip today, and you have this whole page ad in the journal and i agree that huawei needs to convince the world that we can actually trust the products of the company, but to say there have been no issues with huawei is just 100% inaccurate. i just listed the number of companies that have sued you for stealing trade secrets and the settlements that you've done. >> maria, i did not disagree with the facts of those cases. i did not disagree with them. maria: okay. the other question i wanted to ask you do you support the concept of civil military fusion? >> i do not support -- it is not
our understanding that -- the technology to the chinese government. >> is the chairman of your company a communist member? >> i believe he is, yes. >> tell me about huawei's role in china's surveillance of its citizens, the surveillance state, what are you doing in terms of working on surveillance? is that all huawei equipment the way that the citizenry is tracked? >> i don't have information as we talked about -- maria: you are the chief security officer at huawei. you don't have information on that? huawei isn't the only method that china uses to engage in economic subversion. the communist party also infiltrates and exploits developing countries.
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demands and control of the communist party. >> they are moving in first with leverage like loaning money, building infrastructure, i think most concerning is when they get ahold of the electrical grid. they get ahold of the banking system, and then they go in with companies like huawei or zte and they offer basically free infrastructure, so free communications infrastructure, and my warning to a lot of our allies in the countries that i meet with is there's nothing for free. what the chinese are doing with that is that they are ensuring that they control the communications of the infrastructure so they can monitor for economic purposes those businesses and others that they may want to get involved in so they have total control and manipulation capability, over those countries and governments. >> makes these countries not just dependent on china, but also dependent on the chinese world view, that you need to surveil your citizens, control them, that's something that we don't believe in in america, our
allies don't believe in, and so we need to make sure that we're able to stop this threat. maria: it is not just weaker countries finding themselves tangled in china's economic subversion. subversion, american investors have fallen victim as well. >> chinese companies some are listed on exchanges that are state-owned are not going through america compliance standards so consider some of their own audits to be state secrets and not sharing them. many of them are listed on the new york stock exchange and they have a waiver from the sec that goes back many years. this waiver allows chinese companies, 150 or more, 1.1 trillion dollars on our three main markets in new york, allows them to suppress any accounting problem, not make it public to their investors or the sec. maria: chinese companies being listed on the united states stock exchanges with reduced adherence to regulations present a host of issues, not only do investors have no idea how these companies are doing financially, but they also do not realize what they're even investing in.
>> the chinese take the financing we provide and put it into state-owned enterprises and military construction, so we are essentially funding not only chinese military, but even the south china sea, the company that did all the dredging, that's a state-owned company. it gets capital from the u.s. maria: individual investors are not the only ones making these risky bets. some of our largest pension funds, such as the thrift fund, which is a military and other federal employee money, 401k money as well as the largest pension fund in america, they are investing their money in chinese companies that are building military equipment. >> what we know is that calpers, the largest state pension fund in america, invests in almost 300 chinese companies, a couple of billion dollars in companies, like a company that is a surveillance company in china that they use to spy on the uighur muslim population. also invest in chinese companies
that are involved in building up their military and specifically their navy. >> these are not transparent companies, at some point in the future in a conflict they decide they are going to undervalue the shares for purposes of striking back at american retirees 20 years from now, 10 years from now particularly those that once served in government it would create tremendous pressure, harm our economy and becomes a systemic risk. maria: another piece of the china's master plan is their buildup of intellectual property. for decades the chinese communist party has been infiltrating american government companies and universities and stealing the u.s.'s cutting edge technology and innovation. >> the chinese steal, you know, very very sensitive u.s. secrets and u.s. information from the government and the private sector alike. we have to get better on this stuff. or they are going to know all our secrets and know where our people are and what we're doing. >> i believe that they are still in silicon valley blind and in
just a few years the american people are going to possibly be looking to china for new coding and new programs because of everything that the chinese are stealing from here in america. maria: the issue of intellectual property theft is becoming widespread knowledge. but still, the temptation for american business to operate in the chinese market is an enticement many companies have not been able to resist. and unfortunately, short-term goals are being prioritized over long-term consequences they want to sell to the 1.4 billion population. >> we have this big problem where the biggest technology companies in the united states see china as their biggest revenue growth opportunity and a lot of the smaller tech companies see it as a huge investment opportunity, that chinese money is going to flow into their company and so they make decisions based on this. >> the whole cost of going into the china market is you are going to lose essentially your intellectual property and also a country that's actively cyber hacking and ceos are thinking too short-term. i mean they need to be looking out about a decade and asking where their company is going to be because they are taking from
you and sending it back into global markets becoming your competitors with the backing of the chinese state. maria: the chinese government has recognized their problem of intellectual property theft and has vowed to punish those who participate. the question as with everything pertaining to china is do we trust that they will do anything about it? >> i think it is a step forward that china wants to raise the penalties on ip theft. the only thing is the penalties are really quite small, maria. they have to go a long way beyond what they have announced to appease the president's concern with intellectual property theft. maria: may be too little too late the damage has been done. for example, china's intellectual property buildup in areas like 5g and artificial intelligence has put america in a position of trying to stay ahead of the chinese communist government. >> i think we are ahead. we're not ahead by that much. and it doesn't matter that much if all our discoveries get transferred to china in very short order. it is sort of like the -- we were ahead with the nuclear
program and then at some point we weren't. maria: while we might have the edge now, the future is harder to predict. >> they can pioneer certain types of things because of lack of privacy issues. in america people are concerned about their private information. that isn't quite the case in china. so they have some natural advantages. maria: the fear with artificial intelligence is not just that it is rapidly gaining the technology in china, but how they are putting it to use. >> it is always helpful to at least understand the chinese perspective or the perspective of the chinese communist party. so they believe that ai is a dual use technology. it has civilian uses and also military uses. it's things like helping process satellite images helping with cyber warfare, things like that. and that's -- you know it is the social credit scoring system in china where you have -- use computers to track people and control the society more of a
police state version, a military version. >> if imperial japan or nazi germany had developed a nuclear weapon before the u.s., the world would be a very different place. they would have used it in different ways. they had different ethical systems than we did. and the use of nuclear arms would have been determined by these terrible people. i think ai is going to be in a similar position. if we don't lead and if we don't define the rules for how it is used in warfare it will be defined by russia, by china. maria: the last piece of china's puzzle for economic domination is creating a system in which the world is economically reliant on their resources. >> what you really need is at the beginning of a rethinking of global trading system so we're a lot less dependent on china. you have u.s. allies, world's democracies, 65% of the world economy, and right now we're all headed into this giant communist sinkhole called, you know, china, where we're sending our
companies, capital, all of this in order to get the returns while deindustrializing our own societies >> with china in particular, they target our pharmaceutical and biotech industries with massive subsidies using the same kind of economic aggressive techniques that they've done to take out things like electronics and machine tools. >> we should not allow ourselves to be vulnerable and captive to a nation that behaves and considers itself our enemy and i think that is going to prove one of the great challenges of the decade and centuries ahead. maria: the chinese communist party has been executing china's plan of economic domination for decades, and america under president trump has finally woken up to this threat. xi jinping ambitions are beyond just economic supremacy. he has made it clear he wants china to be the number one superpower not just economically but militarily as well, a threat but militarily as well, a threat equa but militarily as well, a threat equa but militarily as well, a threat equa before discovering nexium 24hr to treat her frequent heartburn...
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as penned by president trump and his national security team said that china represents a long-term strategic threat to u.s. national interests and that will begin to unfold before our eyes. >> we are not going to be able to beat china by building faster aircraft or better hardware. even if we have hardware that's slightly better, they have a better way to respond and coordinate effectively using artificial intelligence we will be at a bad place. >> their weapon systems are getting better, investing heavily in missile systems, space technology, all of those things that can project power beyond their own country. maria: in october of 2019, china hosted a military parade, and the weapons that they displayed were shocking. one missile with range to reach the united states was on display. >> this is the first time they have publicly shown several of these weapon systems, and the united states at the present time does not have missile defense against china. official policy since obama and before that we will deploy missiles for defense against
north korea and iran, but not against china. that is a surprising display. >> the military parade unveiled a whole bunch of new missile technology, 41 is a technology that can hit the u.s. the key thing is to understand how beijing really thinks about america. i wanted to read a brief passage from chinese vision of victory. this is not my words. this is their words. this is in 2013 well before the trade war and before donald trump. here's what they say: because the midwestern states of the united states are sparsely populated, in order to improve the killing effect, the nuclear killing of u.s. soft targets should concentrate on major cities on the west coast, such as seattle, los angeles, san francisco, and san diego. the 31 a, an earlier version is launched over the north pole, it can easily destroy a series of large cities on the east coast and in new england such as ann arbor, philadelphia, new york, boston, portland, baltimore, and norfolk. >> the f 100 this is designed
only to go out to kill aircraft carriers. it's got a very special kind of guidance war head so that just in the few minutes it can be launched from china out to as far as a thousand miles, u.s. aircraft carrier. >> china is absolutely rapidly outpacing us in terms of their military development. what they have in terms of long range missiles that can reach every one of our bases in the pacific, airbases as well as naval bases, and we certainly are at risk in not having the capability to defend ourselves against that. maria: feeling much of china's military advancement has been intellectual property theft an issue proving to have ramifications beyond just economic and corporate. >> i can't say a whole lot other than it's the case that we worry about it every day. the threat of not only commercial intellectual property but the military technology is real. you can look at some of these systems and you see similarities that suggest that they may well have not created these from scratch.
>> china is building a military that's designed for conflict with the united states and our allies. this is part of why economic invasion will have to have its limits. they have taken 25 years worth of technology, these sorts of things and built this into a military that's designed to compete with us. maria: just like with the coronavirus, we have seen china lie about its military intentions as well. >> we've watched president xi make a commitment that he wouldn't go to the south china sea and build out militarily, yet he's done so. >> what you see going on in the south china sea, harassment, intimidation, they want to call that piece of water theirs. they have no international right to it whatsoever. they have planted some artificial islands and now they claim that's part of china. maria: given the strategic value of this region, the militarization of the south china sea is not a move the trump administration has taken lightly. >> president trump laid down a strategy to expressly push back against that, what we call our indo pacific strategy. there's a commercial component,
a diplomatic component to it, but there's also a military component to it, to make sure that we guarantee for america that these sea-lanes remain open. maria: the chinese communist government is also taking advantage of its influence in developing countries by using them to build military bases, and they are setting those military bases around ports across the world. >> the chinese just opened up a base, a military base at the the entrance of the red sea, in the heart of the middle east, indian ocean, a long way away from china. >> china is on the move. they are building a deepwater port in pakistan. why is that for their navy to impose influence and control on india and the indian ocean. they have a navy base at djibouti. why is that? to impose influence and control in the middle east where 62% of their oil passes through the gulf and out of iran. so yes, china's influence is economic to be sure, but it's
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maria: questions about the coronavirus have been circulating since the world first learned of the pandemic and answers have not been easy to come by. china's lack of transparency and outright lies have not only resulted in over 100,000 deaths, but also triggered speculation about the communist country's intentions. >> the question was asked would you be angry at china? well the answer might very well be a very resounding yes, but it depends. was it a mistake that got out of control? or was it done deliberately? in either event, they should have let us go in. i think they knew it was something bad and i think they were embarrassed. maria: senator cotton has been on my show since the coronavirus first emerged in america. early on we were looking into the communist party's lies regarding the deadly virus. tell us what you think china did.
>> it was obvious by mid december that chinese authorities that this virus was highly contagious and very deadly. they also knew that were this virus were to spread outside wuhan, it would wreak economic havoc throughout china. i believe the communist leaders when they were aware of those facts by mid january made the conscious decision not to explain to the world that it was transmissible between humans, not to shut down travel, not to ask for american or other kind of international scientific help, but to allow this virus to escape their borders because if they were going to suffer an economic contraction, they were not going to allow the world to continue to prosper and china be the only country whose economy was declining. maria: about the only thing we really know for certain is that the first known case of the virus was identified in wuhan, china, but even that the chinese have tried to dismiss. >> it did originate in wuhan. the communist party has had a deliberate misinformation
campaign, their ambassadors have been alleging that the u.s. army created this and spread it in wuhan last year. maria: originally we were led to believe that the virus started at a seafood market in wuhan, containing bats and pigs, but senator cotton told me at the outset very early on that the story did not add up. >> we knew that origin story was a myth. the lancet published a study of first 40 cases of the coronavirus and 14 of them had no contact with that market. so the virus went into that market which acted as an accelerant before it came out of that market. maria: sources told me the only super level four bio chemical lab in all of china is located in wuhan, just over 8 miles away from that wet market. again, a topic senator cotton and i were investigating back in february. what do they do at this super lab? >> we have such laboratories ourselves in the united states run by our military in large
part done for preventive purposes, trying to discover vaccines or to protect our own soldiers. china is obviously very secretive about what happens at the wuhan laboratory. >> we know that at that facility, they were researching highly infectious diseases, including coronaviruses that derived from bats and so there is a very natural question to ask well did somebody make a mistake? were they studying this virus? did it escape accidentally, and is that part of why the communist government in china tried so hard to cover this up? maria: one of the earliest known coronavirus patients fell ill in wuhan in december. but reports say that the chinese were aware of this virus as early as the fall, 2019. despite having a highly contagious and deadly disease ripping through their country, in january, china sent government officials to the white house to shake everybody's hand, for a phase one china deal. then they sent the largest delegation ever to davos. on top of that they were
encouraging tourism to china and allowing their citizens to travel unrestricted across the world. the "new york times" reports that 430,000 people traveled from china to the united states after the coronavirus was known about in china. >> there's a big -- going on in wuhan, 5 million people going in and leaving wuhan on domestic and international flights. >> when they shut down hubei province, they shut down flights out of that province throughout china. they did not shut down international flights. those flights were going to italy, three a week from wuhan alone. >> the who's complicit as well to some extent, when they gave positive remarks to china, late january, said china's handling this really well. it is not transmitted human to human, which it was, and by that time, it was already going into international travel. maria: sensing a potential threat from this virus, on january 31st, president trump restricted all travel from china, a move he was highly
criticized for at the time, but has now been recognized as a massive life saving precaution. >> the president was so smart to ban travel coming from china just a couple weeks ago so we didn't have more than 20,000 people landing in our country every single day from mainland china. maria: while the chinese communist government had their own citizens on lockdown lies and deceit were the foundation of their strategy to down play the danger of the rapidly growing virus to the world. as questions were being asked, they seemed more interested in saving face than they were saving lives. >> what the authorities were interested in was their image so they covered it up and punished the people who actually spoke about this openly. >> we know that on january 1st, they forced eight doctors to recant their testimony that the virus was spreading, made them reject it and sign a statement saying it was not true. >> they went into the labs after who was notified because the doctors were sounding the alarm,
and they went into the labs, told them to stop testing and to destroy lab samples. >> they also have kicked out reporters from the "wall street journal," the "new york times," and "the washington post". that's the hallmark of a communist government that is trying to cover up the biggest story in the world. maria: to get to the bottom of the unravelling crisis, the u.s. offered to send the centers for disease control to investigate where the virus originated and how severe it really was. china declined. >> the chinese government has consistently blocked american scientists who are obviously the very best in the world from going to wuhan, going to hubei trying to provide assistance to make sure this virus is contained to the greatest extent possible, to discover origins to shed light on what that might mean for testing and vaccine. maria: then came this bombshell. while the communist party was down playing the disease,
they were also cornering the markets for protective equipment like masks and plastic gloves a move that raised questions as to why the chinese who already make half of the world's supply of masks were buying this material in january, in a big way, even as they told the world little about the crisis. even worse, just when the world was getting sick and nurses and doctors everywhere needed that protective equipment, china's communist government put new rules and regulations in place on the ground in china requiring approval to export any protective gear out of the country, which meant more delays and shortages for hospitals everywhere, but china. in the middle of the crisis, this from chinese state run media, questioning whether beijing might hold back on some of the important prescription drugs that america needs but are made in china. >> the chinese government has explicitly threatened that cutting off life-saving medicines to america as a tool of economic warfare, and that's actually not just economic warfare, that's real warfare when you start killing people.
>> we can't have 90% of antibiotics made in china. we can't have most of our personal protective equipment outsourced. we need to bring it back into the country. maria: on top of this, the chinese communist party has yet to stop the intellectual property theft. senators cotton and ted cruz claim that the communist party has directed engineers to steal medical data, to try and come up with a cure for cancer as well as a cure for covid-19, before the united states, believing that a chinese vaccine will show economic superiority to the united states. >> i have little doubt that the chinese intelligence services are actively trying to steal america's intellectual property, as it relates to the virus that they unleashed on the world because of course they want to be the country that claims credit for finding those drugs or finding a vaccine and then use it as leverage against the rest of the world. maria: china's disturbing actions during this deadly
disaster has left us wondering how will the united states respond? >> i have said for sometime the single geopolitical threat to the united states in the next century is china. that's true economically. it is true militarily. it is true politically. >> this is really a five or ten year success story for china. they are deeply embedded in us in almost every possible way. maria: american legislatures are not lying dormant in all of this. there are more than 60 bills in congress right now trying to hold china accountable for its actions. and the state of missouri filing a lawsuit against the chinese government, alleging that the nation's officials are to blame for the global pandemic and must be held accountable. >> the nature of our claim is that essentially because of china's actions or their inactions missouri has been damaged to the tune of tens of billions of dollars and so my job as the state's chief legal officer is to hold them accountable, the people who are actually responsible for all this and that's the chinese government and other chinese authorities. maria: while questions about the coronavirus may never be answered, the deadly pandemic
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decades unveils one clear theme, this is a country seeking global domination. >> president xi has said this, he sees china as rising power and the united states as declining power. maria: china pursues its goal as the number one superpower, does the world want a communist government leading the world? if not, it is the responsibility of america and our democratic allies to stop enabling china's pursuit of a new world order or force better behavior on the world stage. >> i think the whole world is waking up to these concerns, so we spend a great deal of time making sure we have the right strategy. >> you have to build a foundation now that's about staying ahead of them and making sure they never catch up. maria: the warning bell has rung. the american dream is still alive today. but if we do not take the threat seriously, our future will shift from america versus china to america under china. >> i'm bullish on america. if you're betting, you should bet on us.
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presents "america versus china". you can view the director's cut on fox nation. you can catch me on fox business every morning on "mornings with maria" from 6:00 to 9:00 a.m. eastern. on friday nights at 9:00 p.m. for "wall street" on fox news channel, every sunday morning for "sunday morning futures live". thank you very much fo hello, welcome to kudlow. i am larry kudlow. as much as i love america, these are the times that try an optimist. the biden a ministration is running a reckless foreign policy in afghanistan and elsewhere in reckless economic policy at home. afghanistan president biden has catastrophically bundled his strategy, mind-boggling,