it would be like trying to separate conjoined twins that's the severity of the situation, andt's actually worse for a lot of other companies than it is for tesla i'm not sure where you're going to get an iphone, for example. >> musk spoke about the impact of rate heights on the economy and expects to slow the economy cycle. >> it's like a brake pedal on the economy. it makes everything more expensive. things bought with credit and even things not paid with credit if your car payment or home mortgage payment is absorbing more of your budget, then you have less money to buy other things, so it affects other things, even those that are not bought on credit my concern with the way the federal reserve is making decisions is they're just operating with too much latency. basically the data is somewhat stale. so the federal reserve was slow to raise interest rates, and now i think they're going to to be slow to lower them. >> what a fascinating conversation, i think, to say the least. i would kick off by first saying it was really remarkable how relaxed elon musk was. his demeanor was

it would be like trying to sever a conjoined twin that's the severity of the situation.nd it's actually worse for a lot of other companies than it is for tesla i mean, i'm not sure where you're going to get an iphone, for example. apple's recently started doing a small amount of production in india, but it's tiny >> not to mention advanced semiconductor chip if they take over taiwan semi you design your own chips but you manufacture them at taiwan semi, correct? >> we use samsung and tsmc >> you seem to think it's likely to happen. >> i'm certainly saying that that is their policy and i think you should take their word seriously they mean it >> jim >> well, look, since 1949, the break-up, china's vowed to eventually unify taiwan, so of course, musk is right. and by the way, they said at that point using force if necessary. our country's changed its policy repeatedly in 1982, reagan announced that -- acknowledged that the china position is, there is but one china, which would agree with what musk said. and then under president obama, in september of '25, he had a meeting

virtual reality to safely practice. ria and complex procedures such as the sept. ation of these conjoined twins in brazil. ah, tour and bernardo lima were born conjoined at the head with fused brains. in order to prepare for surgically separating the twins, doctors made a virtual model of the boy's brains and 3 d printed it. for a month, surgeons, and brazil, and england convened and virtual reality to practice the extremely difficult and complex procedure. experts say digital simulations also have huge potential when it comes to training at cambridge university in england, working with extended reality means that multiple students can practice treating one digital patient. what simulation allows us to do is to have our students fail in a safe environment and to feel safe to fail. of course, that's not something we want to do with real patience. and so a simulation environment allowing the students to take those next steps in their learning where they have been increasing the real environment to remind them to practice the skills and techniques that they'll need when they come to meet real pati

it would be like trying to separate conjoined twins and that's the severity of the situation.s actually -- it actually was for a lot of other companies than it is for tesla i'm not sure where you're going to get an iphone, for example. >> let's bring in a pair of china experts to discuss mr. musk's comments and the council of foreign relations and a cnbc contributor. john, let me begin with you, does mr. musk speak the way he does about china, china and taiwan because he must >> i think the most important part about elon's interview was how slow he spoke and how carefully he chose his words he's in a position where he could be seriously punished by xi jinping and xi jinping does take revenge on people the twins example is not the right one. the right one is if taiwan were taken out it would be like severing our brain because the rest of the world economy won't work without tsm and the chips that come out of taiwan today. >> david, why don't you raeeactt that, and there was a kind of of a sense of inevitability of the coming reunification that comes whenever it comes and the co

it would be like trying to separate conjoined twins that's the severity of the situation. >> it's likelyt? >> i'm saying that is their policy i think we should take their words seriously. they mean it >> so what does it mean for international stocks the ceo of zoe financial has been bullish on international stocks the same reason that musk cites for concern, the conjoined metaphor is why some people stay constructive on u.s./china relations because they are so en intertwined. great interview, by the way, by you guys iffer going to continue to see de-globalization, that's inflationary, especially for countries like the u.s. that we're tied at the hip with supply chains for global companies that trade in the s&p 500. so i think it's hard to see on one side the idea that the fed should lower interest rates because they're looking at backwards data and then the other sides says but de-globalization is happening and will continue to happen that's inflationary. so i think u.s. stocks, the reason it has international stocks looking appealing to me is u.s. stocks valuation is not attractive righ

it would be like trying to separate conjoined twins that's the severity of the situation.for -- for a lot of other companies than it is for tesla, i mean, i'm not sure where you're going to get an iphone, for example >> here now to way in, the senior poll icy at longview. great to have you with us. do you agree with musk's take? >> thanks for having me, melissa. listen, there were a set of built in assumptions about the outcome of taiwan's future that i do not necessarily share he is correct that it's china's policy, and intent to integrate taiwan into the people's republic of china, their capabilities, melissa, are growing to do that their national level of confidence is growing about their ability to do that, but china's not the only actor here. there are other actors who have a say, the u.s., taiwan, specifically, partners and allies, but also, melissa, global corporations have a say here and i think it is time for people to speak more clearly, like elon, about the potential outcomes and make it clear that they're uncomfortable and start to vote with your feet and by th

ministry musk reportedly said he oppose decoupling describing the countries as inseparable like conjoined twinstesla did not respond to our request for comment but the meetings with chinese officials come as china rebuffs an invitation from the us government to meet with lloyd austin and questions about whether the business dealings hurt american efforts to gain control over supply chains for semi conductor chips batteries or offer leverage. >> of these businesses will continue to move to india like apple decided to do. >> reporter: elon musk has been uncharacteristically quiet on twitter, that is his social media platform while he has been in china. that's because twitter is mostly banned in china. unlike tiktok in the united states. something to think about. lauren: you have to have a measured approach. the business community saying different things. >> reporter: interesting to see that elon musk will abide by china's protocols for banning his own social media site. lauren: this video shocked me. a chinese fighter jet swerved in front of a us military plane. if you just watch it, you can lite

ago during our interview in which he discussed that decoupling, carl, and called it supp rating conjoined twins his line you can imagine what that can look like as well. so not good. it is top of mind for every ceo i think, the relationship with china, even if you don't necessarily have important business in that country, it's still something you're monitoring closely, and for boards of directors. it's right there ai is right there. these handful of issues that everybody has to think about all the time >> look, we don't want war we don't want taiwan to be taken over we don't want a hong kong version of taiwan. it's one thing to be able to talk about world trade it's another thing to be able to say, look, we're continuing to have them from having hypersonic weapons that can hurt us this is a cold war anyone who thinks this is not cold war is kind of off the reservation. you can't have on the one hand worried about whether we have a naval presence to stop them from taking over taiwan, and on the other hand say, it's really great to have a lot of trade we had a lot of trade with russia, then russi

think almost every business leader would agree -- if there was a true decoupling or taking apart conjoined twinss musk said to me during our interview, it would be bad. really bad it would be a -- it would have a depressive effect on the economy worldwide. >> i'm not making value judgment i'm just saying that it's happening. it's happening and you may think it's not good. >> it may happen or not, but it would not be good, overall, for the economy for quite a long period of time >> but i think a lot of companies are afraid they're afraid afraid of the government and i think that you're going to see -- i think it's going to be like that every year >> that may be the case. is that what's pressuring it right now, though? or is it the failure in some way of the middle class to spend money there? >> i think it's that, but also the government is targeting our companies as part of, like, you know, look, we're not going to let america get away with things remember, they're not getting the h-100. let them eat cpus from intel >> note the time 5:44 we got to the h-100. >> took a while, but we got there. >>