>> SUZANNE THANK YOU VERY MUCH

INDEED MOVING ON TO CHINA LAID

WHERE'S THE PRESIDENT ON THIS?

WHAT'S THE LATEST FROM THE

PRESIDENT?

WE GOT IT, ROLL TAPE.

>> WE'VE HAD VERY GOOD

DISCUSSIONS WITH CHINA.

WE'RE GETTING MUCH CLOSER TO

DOING SOMETHING.

THEY VERY MUCH WANT TO MAKE A

DEAL AS YOU KNOW THEIR ECONOMY

WENT WAY DOWN SINCE WE'VE BEEN

DOING THIS PRESIDENT XI AND I

AGREED TO MEET AT THE G20 HAVING

DINNER AND DISCUSSING BUT I

THINK A VERY GOOD DEAL WILL BE

MADE WITH CHINA.

>> MICHAEL IS WITH US HE'S WITH

THE HUDSON INSTITUTE HE'S OUR

CHINA WATCHER.

TELL ME WHAT DO YOU THINK?

WHAT ARE THE ODDS THAT QUESTION

GET SOME KIND OF TRADE DEAL WITH

CHINA ON OR AROUND THAT G20

MEETING?

>> WELL THE ODDS ARE BETTER THAN

50/50 I THINK THINGS ARE

IMPROVING, YOU CAN SEE SOME

SIGNS AND CHINESE MEDIA OR THE

CHINESE DELEGATIONS HAVE BEEN

SAYING HERE IN WASHINGTON --

THAT THEY NOW SEE THE OUTLINE OF

A DEAL, THEY BELIEVE THAT THE

PRESIDENT'S DEMAND BACK IN EARLY

MAY STUART WAS TO DOUBLE CHINA'S

PURCHASES OF U.S. EXPORTS FOR

THE FIRST YEAR AND THEN DOUBLE

IT AGAIN FOR THE SECOND YEAR.

AND IN OTHER WORDS HAVING --

HAVING 100 BILLION DOLLARS OF

ADDITIONAL PURCHASES.

THAT'S THE CHINESE WANT TO FOCUS

ON.

AND THAT HELPS WITH JOBS.

HELPS WITH OUR ECONOMIC GROWTH

RATE THAT'S WHAT PRESIDENT

PRESIDENT TRUMP SEEMS TO BE

FOCUSED ON OTHER AREA AS YOU

MENTION YOURSELF STUART THEY

DON'T WANT TO LOSE FACE THEY CAN

MANAGE THIS THEFT AND CRIMINAL

VIOLATIONS OF WORLD TRADING

RULES.

SO WE LET THEM GO ON THAT, AND

FOCUS MORE ON INCREASING OUR

EXPORTS TO CHINA, THE CHANCES OF

A DEAL ARE PRETTY GOOD.

>> SO DO YOU THINK THAT'S LIKELY

BECAUSE THAT'S A --

PRETTY BIG GIVE ISN'T IT IF

CHINA DOES NOTHING ON THE THEFT

OF INTELLECTUAL PROPERTY, THAT'S

A BIG GIVE.

>> YES, IT IS, AND THERE'S

ANOTHER AREA THAT IS IMPORTANT

TO KEEP IN MIND IS THAT

PRESIDENT KEEPS USING THE WORD

RECIPROCITY, AND THEY'RE CLOSING

THEIR MARKET TO OUR INVESTORS.

HAS BEEN GOING ON 30 YEARS NOW

ANOTHER AREA THIS THING CALLED

BILATERAL INVESTMENT TREATY

UNDER NEGOTIATIONS FOR 30 YEARS.

SOME ADDITIONAL GIVE ON THAT

WOULD PROBABLY BE VERY

IMPORTANT.

THEY WOULD OPEN MORE SECTORS TO

U.S. COMPANIES AND U.S.

INVESTORS.

THAT'S A HARD ONE FOR THEM TOO.

>> NO, NO --

NOT AS HARD AS ADMITTING TO THE

THEFT OF INTELLECTUAL PROPERTY.

[LAUGHTER]

YOU KNOW?

I WOULD LIKE --

>> I WOULD LIKE TO SEE PRESIDENT

XI ADMIT WHAT'S BEEN GOING ON

FOR LAST 20 YEARS SAY HE DIDN'T

KNOW IT BE.

>> HE WON'T.

YOU KNOW --

YOU WILL.

YOU KNOW CHINA VERY WELL --

I DON'T.

BUT I DO KNOW ABOUT THE CONCEPT

OF FACE.

FOR A LEADER OF CHINA TO TURN

AROUND TO SAY YEAH WE'RE GUILTY.

NOT GOING TO HAPPEN.

[LAUGHTER]

>> WELL AS YOU KNOW SLAYING A

25% TARIFF ON ALL OF THEIR

EXFORTS TO US --

THAT'S WHAT THEY'RE AFRAID OF

THAT HAD PRESIDENT IS GOTTEN

THEIR ATTENTION.

THEY ALSO TELL ME THAT THEY'RE

WATCHING THE MIDTERM ELECTIONS

TOMORROW.

THEY WANT TO SEE IF PRESIDENT

TRUMP HAS THE POWER TO AFFECT

THESE ELECTIONS.

IF HE DOES, THEIR DESIRE TO DEAL

WITH HIM AT THE G20 WILL GO WAY

UP I THINK.

>> IT GOES, PRESIDENT TRUMP IS

POWERFUL TOMORROW IN THE

ELECTIONS --

LIKE FOR EXAMPLE, THE GOP KEEPS

THE HOUSE.

AND CREATES A MAJORITY IN THE

SENATE THAT'S VERY GOOD NEWS FOR

A TRADE DEAL OF THE END OF THIS

MONTH?

YEAH.

>> GIVES PRESIDENT CREDIBILITY

WITH PRESIDENT XI YOU KNOW THIS

PHONE CALL ON THURSDAY IS VERY

IMPORTANT IT IS IN THE CHINESE

YET TODAY JUST TO MAKE SURE THAT

WE UNDERSTAND THE IMPORTANCE OF

THE PHONE CALL.

PRESIDENT XI DREW ATTENTION TO

THIS ENORMOUS EXPOSITION IN

SHANGHAI THIS WEEK.

THAT A HUGE NUMBER OF CHINESE

COMPANIES ARE MAKING DEALS AT

THIS SHANGHAI IMPORT EXPOSITION

THEY CALL IT FIRST TIME IN

CHINESE HISTORY IF THEY MAKE A

LOT OF DEALS WITH THE AMERICAN

COMPANIES, THAT'S ANOTHER --

THAT'S ANOTHER SIGN STUART WE'RE