the us and china are locked in an increasingly hostile competition in the south china sea, where chinaicial islands in defiance of international law. the us responded very slowly. it took a long time before they fully appreciated what china was building. by the time china had really started militarising these islands, it was too late for the united states to respond, and nobody wanted to go to war with china over what they called "reefs and rocks" in the south china sea. $5.3 trillion of trade transits through the south china sea, very near the spratlys. china's actions were, in a sense, an attempt to be able to cut the carotid artery of global trade. so many of the conversations i have had in this city boil down to one concern: that china's rise is now just too rapid for the united states to manage. like those islands that appeared almost out of nowhere, there is a sense that unless the us gets a grip on the china challenge, and soon, it might well become unmanageable. the stated chinese government policy is to dominate emerging technologies like robotics and ai. this truly was a wake

sometimes even though india and china have similar concerns about china, china's unfair trade practices, that hasn't automatically lead to the greater convergence between the united states and india. finally i think there's some differences over approaching partners and most notably over russia. india has an older relationship with russia. russia remains the largest provider of defense equipment to india, united states is a distant second. but i think they do in india is there are growing concerns about the russia-china partnership that is emerging and the way to address that is to continue to engage with russia. it's easy because india russia done at these intrinsic differences but it has been comforted by the fact the u.s. congress has a very stringent sanctions on russia and so that for example, india's acquisition of a major and anti-aircraft system from russia, the s-400, threatens the possibility of just sanctions on india. this shows the complications that may arise from these different perspectives on the partnership. let me and on that note, and thank you for your time and atte

in china. in conclusion, what i would say is these efforts i spelled out driven by these new security and strategic imperatives on india's part a line with the united states free and open indo-pacific strategy as it is emerging under the trump administration. in fact, i would say the relationship between the united states and india is one of the few that has arguably improved from the clinton administration to the bush administration, from the obama administration and now to the trump administration. we've seen in some ways while there have been bumps on the road, it's been a largely positive trajectory and in some ways in terms of security in the indo-pacific it is accelerated under the trump administration. in that sense, i don't think there's a lot of unhappiness in new delhi about the trump administration calling out unfair trade practices on the part of china, in terms of the u.s. stepping up its 60 present -- security presence in the region, including in the south china sea, in terms of c

with pro china and anti-china communist party concerns. so they are beginning to wake up to the china threat and they have a border dispute with china and they're very concerned and when i talked to indian officials here, it is the main national security threat for china -- for india. as for russia and china growing closer together, we have seen in the past couple of years, in the past few weeks, joint military exercises and this is kind of unusual, russia has lar large se exercises and china has some forces. i think the russians are cautious about the relationship of china and traditionally russia has feared china taking over its far east which is very vulnerable. low population and few defenses. so the husband -- putin has aligned with beijing basically because his against the united states so to answer u.s. motivation. but there is a concern to see the growing alliance between russia and china. but is mainly focused as anti-u.s. alliance. >> if you had to pick up on mobility of china, what do you think china is most probable on. >> i th

is not china.hools in baltimore in which last year not a single student in six schools not a a single student could pass the state math and writing exam you have a crisis that would be there whether the chinese existed or not. we need very dramatic deep reforms in our own system. we need to inform the pentagon. this is a tired bureaucratic structure. it was originally built in 1943 so that 23,000 people using carbon paper and manual typewriters could manage a worldwide war. now we have ipads, smart phones, etc., we still have 23,000 people. it's maniacal. .it slows everything down and makes everything too expensive. so there's huge zones of reform we need the chinese currently are mopping up all sorts of international organizations by basically brawny Ãbribing countries. they end up either being the leader or pick the leader for amazing range of international organizations. not even prepared to start thinking about a campaign on the scale and complexity that we need in places like the food and agri

the us and china are locked in an increasingly hostile competition in the south china sea, where chinance of international law. the us responded very slowly. it took a longtime before they fully appreciated what china was building. by appreciated what china was building. by the time china had really started militarising these islands, it was too late for the united states to respond, and nobody wanted to go to war with china over what they cold reefs and rocks in the south china sea. $5.3 trillion of trade transits through the south china sea, very near the spratlys. china's actions were, ina near the spratlys. china's actions were, in a sense, an attempt to be able to cut the carotid artery of global trade. so able to cut the carotid artery of globaltrade. so many of able to cut the carotid artery of global trade. so many of the conversations i have had in the city boil down to one concern, but china's rises now just boil down to one concern, but china's rises nowjust too rapid for the united states to manage. like those islands that appeared almost out of nowhere, there is a sense th

david dollar has a paper about china china's. and we have written a paper with china's overseas ambitions, and then on the domestic drivers front we have with us today cheng li who has written about xi's transformation as a populist and what that means for china's foreign policy. jamie has written a great paper on the shift in china's legal development and the growing role of the party in that. and then rush has contributed to a prior tranche in this series, which was focused on continuity and change in china's foreign policy and what role president xi has played in it. and so has audrey as well, where her focus has been on economic state craft. let's jump right in. rush, i want to start with you because i think a lot of current debate about the united states' policy towards china, and also how many other countries around the world are reacting to china's rise really turns on what you think china wants. what kinds often resources and risks china is willing to wager to achieve some of those ambitions, which is essentially a debate

but until china pursues that path, the united states and your must compete with china. and must do so with bigger. the united states, the european union have both improved our screening of foreign direct investment and we combine forces to expose chinese governments repression in shin shenzhen. these actions are important start but the challenges of china which are many and widespread will require a sustained commitment. this is and will be the principal struggle of the rest of our lifetimes. the united states and your have always like most friends have some differences but that cannot distract, cannot distract us from what is most important. above all, we must ensure the free international system we built together, we and europe built together, can withstand external pressures, acknowledging the many opportunities for the united states and european cooperation against china will help us to work through our differences. china is a communist authoritarian party state and, unfortunately, the parties values and interests dictate how china operates in the international syst

in china. f japan wishes to avoid becoming a passenger on the sinking ship, it needs to reduce its economic dependence on beijing. japan has already started to reduce its dependence on china. for example, many japanese companies have relocated their factories in china to southeast asia. the number of japanese citizens living in china has been n 2012sing from 150,000 i 2017.,000 in meanwhile, the number of japanese in the united states has increased from 410,000 in 2017.o 426,000 in is the japanese staying in the united states. -- blue line is the japanese staying in the united states. red line is the japanese staying in china. loser.s going to be for japan, strong u.s. policy toward china is welcome. japan is right to be on the side of the united states. thank you very much. [applause] >> i think you will agree we had four terrific presentations. they ran a little bit over our targeted time, but that is ok. as i understand, we have until 1:30 as a minimum, but maybe could slip over if there are

disadvantaged in china now. creating new balance links requires that chinese market access procedures be accelerated to make more transparent to enable foreign companies especially innovative ones to establish themselves in china with confidence. of the question. she repeated his mantra about globalisation and opening up chinese markets to foreign investment but he offered no new initiatives to ease trade tensions with washington and europe. china has been feeling the pressure of the trade war growth has tumbled to 6 per cent prompting the country to seek new ways to boost the economy. job for china will be happy to conclude high standard free trade agreements with more countries will also speed up negotiations on the china e.u. investment agreement at china japan south korea free trade agreement to china gulf cooperation council free trade agreement. michael and the e.u. delegation will now try to seize the opportunity he now heads to beijing where he hopes he can build on the shanghai goodwill with she to addr

and china.-term basis, people are concerned about what it means for supply chains and we have already seen a lower level where in asia, countries like taiwan appear to be benefiting. it is hurting china a bit more. even india is benefiting with some shifting their business through india as well. up, thist is shaking could go on for some time. you could have a material impact on the way people address equity markets, even commodity markets. to say the repercussions of a statesriod of the united and china not being friendly to each other matters to business all across the world. we are seeing it already play out in asia. rishaad: isn't there a sense that they are not looking at a war of words as we had earlier this year? this is seen as a cease-fire, arguably, and that gives the markets the excuse -- the market participants to drive equities higher. >> cease-fire is good. people are getting used to that idea. we still have this deadline of december 15 hanging over everybody. people need some clari

and abroad and later as china u.s. tensions continue to rise tech programs have found themselves in the crosshairs christiane is back with the show today. to break down how video sharing app has come under fire in congress and of course as we go to break here your numbers at the close. you know world of big partisan movies a lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the path and shouting past each other it's taught for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. imagine that they know the 635 and you have a what a career and a career involves using your i phone line in your computer and things they could have been in an office and perhaps she started getting headaches so kids. are going to have to stop doing all this and this is tell you lou the minutes must be frightening my world became smaller and

on china. in 2008 he cofounded the project 2049 with mark stokes. he's been very active in this region for quite a long time and has a wide and distinguished career starting off with the consulting firm armitage international and he's gone onto different areas. of course he's the ceo and president of project 2049, a non-profit research organization dedicated to security trends, lines in asia. he's also served as deputy assistant secretary of state for east asia and pacific affairs. he was responsible for china, taiwan and mongolia, hong kong, australia, new zealand and the pacific islands. many of you have the bio for him. i think that one of the things that he has done in terms of being a robust thinker is and i think he's very proud of this and he has every right to be, is that in june 2019, he helped develop the long term in order to deal with china's long term strategic competitor, he created a new position in the department of defense called the new deputy, assistant secretary of state for

and china. put simply, china must open further.t needs to resist the defensive temptation to protect domestic firms that would become stronger if they are subjected to best in class foreign competition. but washington needs to resist some temptations, too. decoupling china from u.s. markets by delisting chinese firms from u.s. exchanges is a terrible idea. viviana: former goldman sachs president gary cohn served as chief economic advisor to president donald trump. in an exclusive conversation with francine lacqua, he shared his insight on trade. gary: i think we are having a trade skirmish. i think the two sides have some disagreements on trade, but if you look at what is going on, the two countries are functioning. there is a lot of trade still going back and forth. the united states is receiving the goods from china that we need to have a fully-functioning economy, and our economy is functioning well. i hope that we get a phase one deal done, and i think it is in everyone's best interest to get a phase one deal done. francine: su

influence of china.but in your book you talk about how you do say it is in x essential threat. i wonder if you can articulate a little bit more about why you say it is a deeper threat and that others have previously characterized it as. >> i say it is a threat in the sense that in two different ways. the first is if they work at it and we are dumb enough, they could create a coalition between a balance of power against us in a way that we have not experienced in american history. because for much of the first hundred years, we had behind the royal navy for the second hundred years, but a huge worldwide alliance so we don't know what it is like to live in a world where there is a hostile government of course that is a coalition is capable of over matching us. that would be an existential threat from the outside. but there are all sorts, troubles with the national basketball association and the problem with winnie the pooh, and the problem with the cartoon that is now banned from china. because it had a sh

fault you list the ways the united states is not competitive with china but is not china's fault soi have a few questions about that section but you also write about the democratic norms and values. do you think that president trump and his approach to our democracy is unique in his approach to democratic norms causes difficulties with the moral high ground with china quick. >> i think to a limited extent it does. but there's a big difference between president trump's style which is at times clumsy and offputting and why it is actually happening and you have seen this twice in the last few days the president had an idea which i thought was truly terrible to put the g7 at his resort and within three days the popular reaction was so overwhelming he had to make a hasty retreat. compared with the chinese banning tv shows because they make fun of president xi. or one of the comic characters they decided was like president xi so they banned that from china. we had theodore roosevelt was enormously popular and saved abb grizzly bear cub that was known as teddy's bear then made into a teddy

>> i think xi jinping,ou china's president expects that china will win this war and think that china a number of advantag advantages, not just the much larger population. also perhaps he thinks is stronger work ethics that impresses me when i go to china. but i think china's leaders assume that democracy is outrageous. they have of course an extremely negative view of democracy and they would ever dream of you introduce an china, we just remember the tea on crush of cs leaders in the cold war, don't do with the soviet union did and don't liberalize. the chinese are optimistic that they will win this because they are catching up with us economically and because of our political system and internal divisions we are not going to be able to go. >> when we come back, your view, long view of history two. ancient and otherwise. how do you think we fair, do you think they win, how do you think the united states bears. ladies and gentlemen don't forget virtually every week that you can watch levintv, go to blaze tb.com/mark to sign up, lease tb/mark to sign up, call 844 levintv and don't forg

we don't even need to contain china, we need to make sure that china does not become an imperial power that dominates the region. that is our aim. that is a doable and achievable goal and i think we should see it as a broader foreign policy that seek to prevent hegemony by any power anywhere, but it is going to be hard work for into a long struggle, in this country with china. >> i want to ask about your trip to hong kong in a moment, but just to connect this to a political residents, and the beginning of your speech, you critique this universalists project where you have the world a democracy everywhere. if you're a middle class american and you have been very very articulate and outspoken on what's going on in hong kong, why should we care about what's happening in hong kong? does that really affect the average or, last person in the united states. >> hong kong is a collective of what beijing is capable of. first, hong kong, then taiwan than the whole region, and then we get to what beijing has already been telegraphing, which is they want to shut us out of the region. they want a re

wants china to open its markets for other and china's financial capital mccraw was keen for a show of european unity as the u.s. and china engage in a bitter fight over tariffs. that acknowledge me technology climate 3 absolutely decisive issues and all 3 have a guiding principle and i will stop there is the ability of europeans to work together to coordinate together and then talk affectedly with their chinese partner the national. she repeated his mantra about globalization and opening up chinese markets to foreign investment but he offered no new initiatives to ease trade tensions with washington and europe. we need to promote development through opening up and deepening exchanges and cooperation we need to join hands with each other instead of letting go of each other's hands we need to tear down walls not erect walls we need to stand firm against protectionism and unilateralism right we need to continually bring down trade barriers mccraw now heads with his pond european delegation to beijing where he hopes he can build on the shanghai goodwill which he to address to blues such a

china. that's a nice, but all it takes is one knock on the door of their parent company, based in china, from a communist party official of that data to be transferred to the chinese governments hands, whenever they need it. tik tok claims they don't take direction from china. they claimed they don't censor. in fact, inct a letter submitted day to this committee, tik tok said this, no government, foreign or domestic, moderate how we -- tik tok does not remove content based on sensitivities related to china or of the countries we have never been asked by the chinese government to remove any content, and we would not do so if asked. that's what they say. without objection i will enter the whole letter into the record. but that's not what former employees of tik tok say. today the "washington post" is reporting that tik tok's chinese parent company impose strict rules on what could appear on the app in keeping with china's restrictive view of acceptable speech. former employees said company off

china wants those removed.t also wants the tariffs that were imposed on $110 billion of chinese good be taken away. also, we are hearing a conversation between u.s. and chinese officials about potentially reducing the tariffs on $250 billion worth of chinese goods imposed in 2018. this is part of china's attempt to get some equivalents because for them, sending president xi to the u.s. to sign off is a political risk for xi. we know that is a consideration now underway in china. of course, they can bring up leverage if they agree to these purchases. this is what we are hearing in terms of the tariffs. the question is whether or not trump is going to agree. he would bedering looking at potentially losing face, there are political risks for him doing a given we are a year out from the election. tom: absolutely. we know the democrats and republicans both want to see a strong, enforceable deal agreed with china. it also is tied to the tariff regime. both sides of the political spectrum want to see it in place to ma

and you mention more people need to understand china but those studying 12000 american studying in chinabut over 360,000 study here. and one of the concerns is that that they are worried about studying in china because they think it will close them off when they come back into the united states because of clearances and other issues and suspicion of their time. this is an ongoing debate in the scholarly community. so how can we encourage americans to feel that they are safe at home for having that interaction. >> part of that is how well we do the vetting process. when the cold war began we had far too few people who understood the nature of communism and were prepared to develop that kind of program that we needed. we had to invest a great deal into the cia very heavily in education programs and maybe in a similar situation you do have to have some level of concern because they are very good at what they do and they are very systematic in trying to intimidate people but at the same time to understand china to have enough people around who are capable of interacting with fluidity in chin

china.tay in this trade war without getting a phase i deal but without getting worse, what does that mean? bill: i think the world has adjusted. i think supply chains are steadily adjusting to this reality. we are seeing as recently as last night some of the companies -- one was identified as a result of a visit from president trump. it is very difficult for apple to run their business. that is not a good thing for u.s. consumers. flexibility on both sides should allow us to get to an agreement. francine: has this trade war changed the economy forever because of supply chains and well the o's supply chains go back to how they used to be? bill: supply chains are evolving anyway. china is not the low cost producer of a number of goods any longer. that change is happening. the world is changed forever. i think the confidence of supply from a single source for anybody in the world has reduced. spreading their bets, hedging themselves, arranging alternative supply chains, and i'm afraid they will

and china brazil it would seem china's growing influence on the continent isn't the easiest to sell to the public. and we're joined by carlos d'souza he's the lead emerging market economist at oxford economics he focuses on latin america while carlos now give us a sense of the stakes here how important is china for latin america. so simon singh is growing more than for latin america but i think we need to understand the kind of relationship is very good and china have is very different from the kind of relationship in china with stan economies are in very different from relationships of china has advanced economies like here in the united states so what we're looking at is that most of us in emerging economies are very export are. going to be exporters so they're dependent on exports in either things like oil or copper or or we call 0 products so that in the nation we're looking at this from pictures but overall we're looking at a kind of relationship in was in which china is buying all these drugs from that in america this is very different from the kind of relationship in europe of t

-china trade deal. stocks are looking about a half point higher, a little bit of hope there, and of course, the s&p 500 -- why is it down? because it was up so much today. the s&p 500 hit that all-time high. from here, we will have to wait to see some fresh impetus for stocks to continue to rally. let's get to first word news now with jessica summers. jessica: thanks, kathleen. the french president has attacked nato, saying it is effectively dead leaving collective defense commitments in doubt. he wants europe to create its own military group rather than rely on the increasingly withdrawn u.s.. former national security adviser stephen rice says the u.s. has been alienating allies in recent years. >> we have squandered the many of those allies by denigrating them, by making everything transactional, by failing to tell the truth on multiple moments every day. jessica: china has hit the pause button on its recent gold buying spree. -- purchases state level, unchanged from the month earlier. mainland stockp

united states and europe's relationship as far as china is concerned with china. being in the position i'm in, i get lots and lots of visitors every day from europe. and it's always an interesting experience. i view them as my cousins. my grandfather immigrated on the german side. on the irish side it was my great, great grandfather that imbase rated and i think emof them as cousins. and i ask the german friends if they knew my grandfather which they didn't because it was 1898 when he came here. but in any event i guess i'm a little always i'm getting used to it. but i'm always concerned when they talk about our relationship. and i don't view us as having any kind of difficult relationship with europe at all. certainly we have differences. but i mean as far as the basic relationship our relationship is good. indeed, i'll give you a little anecdote in that regard. i had some friends not friends, people from germany come that were public officials and wanted to talk about a number of things. and the usual kind of issues that we talk about when we get together. and i

and abroad and later as china u.s. tensions continue to rise tech programs have found themselves in the crosshairs christiane is back with the show today. to break down how video sharing app has come under fire in congress and of course as we go to break here your numbers at the close. so what we've got to do is identify the threats that we have it's crazy for them to let it be an arms race is also an experience dramatic development only really. i don't see how that strategy would be successful very critical. if you sit down and. join me every thursday on the all excitement and i'll be speaking to us of the world of politics or business i'm sure both of those i'll see that. airbus has announced its plan to boost its jet liner production in china adding pressure to rival boeing airbus chief executive for a leader of china's national development and reform commission of china signed a memorandum of understanding to build more single aisle and wide body aircraft in china we attach great importance to our long term strateg

us withdrawing from the paris climate agreement and china reaffirming it actually makes china the lesser of the 2 bet guys what doesn't help the u.s. image at this moment is today's report by the united nations that said that the u.s. tariffs on chinese goods has hurt both economies and especially hurt american consumers at the heart of it all so doing business on the environmental front is also quite a tricky one right now at a balancing act tell us more about that trade deal though between the potential trade deal i should say between the u.s. and china where we are right now well china's foreign ministry insists that there has been constant contact between the 2 negotiating teams and just this week china has been more daring in requesting or demanding that the u.s. removes all of its tariffs on chinese goods before moving forward with setting up a meeting between a cd and paying and president donald trump no it feels like it feels like it may have this didn't do it china is doing this because they feel they've made more concessions than the u.s. inciting this focus in conceding to the

china. all it takes is one knock on the door of their parent company from a communist party official from the government hands. tiktok claims they don't take direction from china or censor in fact in a letter sent to just today to this committee, tiktok said both governments foreign or domestic direct how the moderate content. they do not remove content based on sensitivities related to china or other countries and we wouldn't do so if asked. that's what they say and without objection i will enter the whole letter into the record. buit is and what the employees say. today the "washington post" is reporting that tiktok's chinese parent company imposed stricter rules on both code appear in keeping the restrictive view of acceptable speech. former and he said company officials based in beijing had the final call on whether these videos were approved. the former employees at the attempts to persuade the team not to block or penalize certain videos were routinely ignored. out of caution about the

have you been to china? i have been to china. when was your last visit to china? in china, you will find that people are very free, very happy. you can't feel it? people are harassed, are threatened, they have a lot of complaints? no, you can see smiling faces on the chinese people. yes, people have some complaints. in any society there are complaints. but people have their channel, you know, to make their complaints known. we have the national people's congress, we have the political consultative conference. you know, if china did not have politics, if our people have no democracy — but china's democracy is chinese democracy, with chinese characteristics. you can't use your standard to judge other countries, just like we will notjudge you based on our standard. let's talk then about xinjiang, one of the provinces in western china which sees the greatest repression. now, you will know as well as i do, in recent days we've seen a new slew of leaks of official communist party documents which show the extent of the repression of the uighur muslim people of xinjiang.

china is such a massive power. the cost outweigh the benefit of having the separation based on the different civilizations? sean: i don't buy this decoupling argument. we are not coupled to begin with. the cold war -- we did not do business with the soviet union. china it was their number one trading partner. it is not like a total east-west divide like it was in the cold war. the less business we can do with china long-term i think is in our geostrategic interest. we can't turn our back fully, but we should minimize our exposure. shery: park strategies senior vice president, sean king. another country rocked by unrest, chile. the president announced an economic reconstruction program to rebuild the economy. proposals go to congress in the next few days after weeks of social unrest. the former president told bloomberg how she is reading the current situation. it is in chile, but unfortunately in other places as well. it is linked to people who feel they do not have equal access to different opportunities and rights

janet would certainly want to —— china would certainly want to —— china would certainly want to —— chinas been pushing for more access to india markets and that is something india markets and that is something india has been resisting and that is one of the main reasons india also walked out of the negotiations when it was coming to the trade talk. —— the trade agreement. india has been wanting to give more —— india's thinking is that if they let china more access, it will allow cheaper chinese alternatives and it will hit their own market. what this does is during their bilateral meeting at brics, it could add to the existing baggage between india and china when it comes to trade because remember there are several outstanding issues, especially on that trade deficit which is heavily tilted in favour of china. me so much for that. i am sure you will be watching that. i am sure you will be watching that summit very closely for us. as we discussed on yesterday's programme, china is facing a major crisis as the price of pork has dribbled. the country is struggling with a year—long outbreak

-china relatwans will get er soon.here in washington, this is seen as a battle for the future that america cannot afford to lose. david grossman, bbc news, washington. south africa, where a team from britain is trying to break the land speed record. their half-car, haveocketship is called bloodhound. it has already clock 500 miles per hour in a test runo nd is trying even faster, as andrew harding reports. andrew: imagine trying to drive a car at 1000 miles r. steering it, keeping it on track. where would you even start? perhaps here on the flattest piece of my -- piecef mud in the kalahari desert.ke bed in every stone, every petal carefully cleared away. in a tent by the test track, nasa technology meets garden sharing ehusiasm. >> doing what i want to do. andrew: funding all this, a yorkshire businessman who seesni an oppor to inspire. >> the reality is we need more gineers to solve the problems of the future, and inspiring ougineers is something w do as much as possible. if kidsat don't get into i school level, it i

it's a view shared by the china friendly presidential contender. if he can overcome the odds to win in january it may not be entirely a mark of his own success and for more i'm joined in the studio by taiwan's deputy foreign minister dr suit sure welcome taiwan is headed to presidential elections next year on the 11th of january and the current president signing one has already accused china of attempting to influence this election what proof is there of this . well i think. spirits of last election last year we had a local election and there are a lot of. fake accounts on the social media that boosts certain candidates and if we trace them. he their address changes day by day sometimes in istanbul's sometimes kill some signs does noura and so there are a lot of these think accounts and eventually they play a very important role in making big success for certain candidates and also our ruling party experience defeat and we learn from that. so there are still this kind of fake accounts that's one thing and also there were spread of information how c

-china.in his trade were without getting into a phase one deal or getting worse, how will that affect the economy? bill: we are steadily adjusting to this reality that some goods will become more expensive. last night, some of the companies said they are really feeling the pain. was affected. it is hard for them to run their business. ability and ax reality on both sides that should allow us to get to an agreement. >> we are going to the holiday season. is it more likely to get a phase one deal because of how it might affect consumers and christmas? much right now, it is as sentiment as anything. and theness community thatst community believes investments will kick in. people will start taking actions , increases are pending. it is a behavior thing. the u.s. trade war changed the world economy forever because of supply chains and how they have changed?will they go back to what they were ? -- that changes happening in any case. the confidence of supply from a single source from anywhere in the

francine: like china? gary: ok, like china.more regular the markets like the united states, it will digitize. we will have more of a digitize payment system, but it will look more like banking. you will have to know your customer, anti-money laundering. it will have some kind of trail, and it will have to coincide with traditional banking laws. digital payment really is the future for everything we do. francine: how is the current system going to be disrupted? will they still be here in two years? there are many, many people in the payment phase trying to disrupt it. not all of them are going to survive. that i know for sure. some major disruption will happen. there will be some winners and there will be some losers. i think the winners will be those that understand that europe and the united states are going to look like a more regulated market than an unregulated market. so the extent that you are playing with that in mind and you're building a platform and building technology, it dovetails with the existing regulations. i th

china. so i think the base case is you are going to see more companies that are going to move their manufacturing operations out of china. in the case of apple, apple may never be able to move its smartphone manufacturing out of china, but it may be able to have more of its parts manufacturers move their own supply chains out of china, which could help it avoid some of the tariffs, in addition to tim cook's efforts to manage the administration there. taylor: mark, i want to switch gears a little bit as well. we saw some technical glitches when disney was trying to become a tech company and had to keep up with passport thieves and passport hackers. we have had apple tv+ have some glitches when it comes to the rollout of their films, one of which they had to pull back. is apple tv+ prepared to be a media company? mark: yes. i think apple's infrastructure for video streaming, the application development that it has had for a number of years has been there. so, i think apple -- their cloud infra