Has China been duping the US for nearly half a century?
America on Mark Levin this is life liberty and Levin with wonderful guess dr. Michael Pillsbury how are you sir thank you sir pleasure now you wrote an amazing book the hundred-year marathon the grab my attention because incredible relevance China secret strategy to replace America as the global superpower this book is taking off in Asia the Chinese have the book although they keep it under glass you’re a singer tell him director Chinese strategy the Hudson Institute distinguish defense policy advisor former high-ranking government official you written many books and reports on China your educated at Stanford ba in history with honors and social thought Colombia universe map HD Run the Reagan Administration you were the assistant undersecretary of defense for policy planning and responsible for implementation the program of covert a known as the Reagan Doctrine but you work for Nick George HW Bush Reagan someone Obama anyone else I missed clear really focused on China and I want to read you just a couple sentences out of your book to elaborate on this for me China’s Marathon strategy depends heavily on good call from other countries especially the United States that Goodwill translates into massive foreign investment the acceptance of Chinese exports indulgences when the government or state Affiliated organizations are caught stealing technology are biting or violating WTO rules and looking the other way on human rights abuses Western countries offer such concessions primarily because their leaders are convinced that overall China is moving in the right direction for your markets productive International cooperation and political liberalization we mean by all that enjoys enormous Goodwill inside our government inside a number of governments around the world they worked very hard to earn that Goodwill because frankly it’s it pays off for them if they had not had our market for their exports over the last 40 years if they not had our direct investment and are scientific exchange programs that help of our company’s they wouldn’t be the great power they are today their number two in the world by some satistics there already number one in overall size of their economy so they’ve done this quite consciously that they got advice from Nobel prize-winning Economist from the World Bank 40 years ago how do we do this how do I become number one in the world and they realize it was not through hostility or demonizing other countries it was going to be by getting inside the government’s of these other countries to extract what you might call the the way to become the number one power in the world and they succeeded in now there’s a push back against the recently but I would say their strategy has worked a brilliantly over the last 40 years that got inside our government they got inside our businesses how did this happen Americans have dreams about our own system inspiring other countries City on the hill things like that and the Chinese play to that they were actually quite an extreme communist dominated Nation but in their ancient thinking they know that to get the resources a country needs to Pander if you will to the valley who’s in The Wishful Thinking of other countries they did this a lot 2500 years ago what they called the Warring States. So they held out the notion to American leaders successfully if you help us someday we’re going to be like you and it worked I remember done shopping visiting here is sold visit to America 1979 he wore a huge weight a cowboy hat and went to a rodeo as though he was a fellow Texan Senator Ted Cruz about this that he was pandering right to the instincts of Texas this is a good old boy no comes to a rodeo wears a white hat take that times a hundred they’ve I hate to use it insinuate but they’ve got into our companies pretty much the same way that we have a market of 600 million in the world in the in the Bourgeois middle-class you can Market your products to class but you’re going to have to have you know some sharing attitudes towards your technology overtime yard towards them yes I would prefer to say optimistic optimistic inspired by the founding fathers that Shirley China wants democracy in the free-market now 40 years later we know that’s not true the track down they have even less democracy had in the eighties the free-market they clearly have stopped at about a 50% total of their economy and they want the commanding Heights and socialist would say to be under the control of the Communist party so I was wrong now it’s pretty hard to undo all that you have on the whole generation trained in Washington DC to think of China as at least a friend and partner if not an Ella and you throw into that with the book is really about it’s our secret cooperation with China through CIA and the Pentagon a lot of things we did together during the Cold War that in many ways. Our intelligence community and our military not to see China as an enemy and they’ve exploded that that wishful thinking as well even as they do things that only an enemy would do they keep denying it and we keep believing them this is I think the Dilemma president Trump today let’s talk let’s break this down technology weather is economically military or they overlap how are they pilfering are technology with the statement 40 years ago that the key source of economic growth is science and technology so they zeroed in on science and technology has the single most important National Security goal they can have once you do that you ask your own Chinese scientists tell me the future the scientist can come back and say there’s something called nano technology manufacturing the door never heard of it at the time or artificial intelligence or any one of a range of almost a hundred high-tech processes in The Next Step Israel which companies in America have those processes and then they would go to the front door and try to get some of it but they couldn’t get to the outdoor they would steal to the back door and frankly one of the first things they did to wake up Jimmy Carter at 3 in the morning His science adviser was in Beijing and the Chinese make clear we want an agreement that all of our students want to go to America and science can go in the National Science Foundation will share all American scientific discoveries quickly with China mr. Frank presas was his name he was so call Jimmy Carter from Beijing can I agree to this Carter said yes and that became the foundation for our own governments sharing a great deal of Science and Technology with China so it’s it’s the scale of what they tried to do that’s important it’s not just nickel-and-dime grab one little patent here it’s a comprehensive approach that to become number one in the world we’ve got to get hold of what they call the innovation technology base find out the most dramatic profit-making Technologies in the world and get them by one means or another and as I say we mostly helped them our government did through the front door and our companies that is well under the it’s Sunday the Chinese market would open up and these companies would enjoy massive profits only a few companies have succeeded at that most have not what happens to these companies that go to China like apple and so forth their forced to give up significant proprietary information are they not in order to do business in that market techniques sometimes they will insist on a joint venture with the Chinese partner can demand technology transfer take place sometimes focus on an individual in a company who has the trade secrets of the company and they won’t some sense recruit him not necessarily as an Espionage asset but as somebody who they took the offer a salary of $2000000 that you leave I’m thinking of those General Motors you leave your company and come to work for us and show us how to make cars until they created there now the number one seller of automobiles in the world Motors in Jeep or at the time they had a kind of stealthy approach to all this and if asked are you trying to get hold of the world’s best technology to become the world’s number one power they would laugh and see if course not China has no such Ambitions what is the only thing do they think we’re dupes I think they praise their own strategy that they they say that has ancient I think our presidents and including myself at the time is it Miser to these presidents we did not understand the scale of China’s Ambitions so any particular example that would be detected the FBI would just arrest a person committing economic if they put them in jail for 6 months or a year and assumed this was a one-off thing so the scale was just not in our philosophy hate to say we reduce we didn’t and the consequences of building up another power to surpass us I don’t think even President Reagan thought that China would amount to what it had turned into today and we Dukes now well a lot of people want pulling into all this on a bitter bitter terms-of-trade there still a community that says China will collapse don’t worry about it they sell the community that says they just want to be our partner in the world has the ignore United Nations resolutions as they’re caught with more and more technology theft becomes harder to explain this away so I think we’re in a period now which I think will go on for many more years of waking up little bit uncertain what to do when China and China’s friends are already deep inside or sit whenever faces with the Soviets in the Cold War they were always over there and there weren’t huge Soviet companies and Soviet Investments inside of and it was considered treason to help the Soviet Union what would China is the opposite they’re considered our friends and it’s considered a little bit too conservative to begin China these days has Donald with respect to China seems to be changing the Paradigm a bit doesn’t it he’s got their attention there in a very feisty kind of fighting mode where they’re matching all of his tariffs with their own threats they’re saying that there innocent all these allegations he’s made in his team is made in various reports of Technology theft forceable technology transfer and many others they claim they’re innocent this evidence doesn’t hold up and and something it’s really quite dramatic they have said that China is now leading the rest of the world in favor of free trade against President Trump even I who have great and I have great admiration for the strategy as you can tell even I didn’t think they would be that dramatic to say we are protecting the world against President Trump in terms of free trade in this has a lot of people believe it someone else may need the value of their currencies drop 25 30% are currency values going up 17% even if you’re free Trader like I am for me it’s a national security issue it’s a national security do that’s why I wrote the book frankly I’m trying to sound the alarm that it’s not too late although I think it may be too late but the the scale of what we’re going to have to do to turn things around is enormous we’re going to want to pursue this after the break they can we given what a congress focuses on their focused on Russia their what are media focus on and so forth trying it has a single Focus because it’s an autocracy we have a thousand different focuses in China might be among them and maybe not and do they use that to our advantage ladies and gentlemen don’t forget most weeknights you can watch living TV on crtv.com crtv love to have you join our community over there call 844 Levin TV 844 Levin TV at satsop or give us a callDr. Michael Pillsbury shares insight on ‘Life, Liberty & Levin’ about China’s tactical maneuvers against the U.S. through its science, technological and military capabilities.