This looks like ‘the beginning of a global conflict’: Expert

REALLY COOL.

THANKS, CHERYL.

CHERYL: YOU BET.

MARIA: ALL RIGHT.

PRESIDENT BIDEN IS DISMISSING

CHINA'S SPY FLIGHT.

YESTERDAY HE CALLED IT SILLY.

HE'S BLAMING THE SPY FLIGHT FOR

HE DERAILING COMMUNICATIONS

BETWEEN THE UNITED STATES AND

BEIJING.

WATCH THIS INCREDIBLE MOMENT.

>> HOW WILL YOU MANAGE THE

DIPLOMATIC RELATIONSHIP WITH

CHINA?

>> YOU'RE RIGHT, WE SHOULD HAVE

AN A OPEN HOT LINE.

THIS SILLY BALLOON THAT WAS

CARRYING TWO FREIGHT CARS WORTH

OF SPYING EQUIPMENT WAS FLYING

OVER THE UNITED STATES AND IT

GOT SHOT DOWN AND EVERYTHING

CHANGED.

IN TERMS OF TALKING TO ONE

ANOTHER.

I THINK YOU'RE GOING TO SEE THAT

BEGIN TO THAW VERY SHORTLY.

MARIA: LET'S BE CLEAR.

IT DID NOT GET SHOT DOWN FOR

SEVEN DAYS.

THE PRESIDENT ALLOWED THAT

SURVEILLANCE BALLOON TO CAPTURE

INFORMATION, IMAGES AND SEND THE

INFORMATION FROM ABOVE OUR

MILITARY INSTALLATIONS BACK TO

BEIJING IN REAL-TIME.

IN RESPONSE, CHINA'S FOREIGN

MINISTRY IS URGING THE UNITED

STATES TO MEET IT HALFWAY AND

BRING BILATERAL RELATIONS BACK

ON TRACK.

JOINING ME NOW IS THE GATESTONE

INSTITUTE SENIOR FELLOW AND THE

AUTHOR OF THE COMING COLLAPSE OF

CHINA.

GORDON CHANG BACK WITH US.

GREAT TO SEE YOU.

WHAT DID YOU MAKE OF THE

PRESIDENT'S ASSESSMENT OF THE

SURVEILLANCE BALLOON, CALLING IT

SILLY?

>> WE'VE GOT TO BE GRAVELY

CONCERNED.

WE'VE GOT TO REMEMBER THAT

SURVEILLANCE BALLOON SHOWED

CHINA'S UTTER DISRESPECT FOR THE

UNITED STATES.

BUT ALSO IT WAS SURVEILLING OUR

NUCLEAR WEAPON SITES WHICH MEANS

THAT CHINA IS PLANNING EITHER A

FIRST OR SECOND NUKE STRIKE ON

THE UNITED STATES.

SO FOR BIDEN TO TRY TO SAY OH,

THIS IS NO BIG DEAL, JUST SHOWS

YOU HE IS LEAVING THE UNITED

STATES OPEN TO CHINA AND THAT

MEANS THE WORST CONSEQUENCES ARE

ON THE WAY.

NOW, WE DON'T KNOW WHETHER BIDEN

IS CORRUPT OR WHETHER HE'S JUST

MISGUIDED.

HE IS LEAVING US DEFENSELESS.

MARIA: YEAH.

THAT'S A GREAT POINT.

IS HE CORRUPT?

IS HE JUST ANOTHER CORRUPT

POLITICIAN OR JUST MISGUIDED.

WE'RE TRYING TO UNDERSTAND

WHAT'S BEHIND THESE RIDICULOUS

COMMENTS THAT A SURVEILLANCE

BALLOON IS SILLY.

BUT YOU KNOW, GORDON, OVER THE

WEEKEND THE G-7 MEETING WAS MORE

ABOUT TRYING TO FIGURE OUT HOW

THESE SEVEN NATIONSES ARE GOING

TO PUSH BACK ON THE PROVOCATIONS

OF COMMUNIST CHINA THAN ANYTHING

ELSE.

G-7 LEADERS SAY THERE'S A NEED

TO DERISK BUT NOT DECOUPLE FROM

CHINA, THE NATIONS CLAIM THEY'RE

LOOKING TO ADDRESS CHALLENGING

POSED BY BEIJING NONMARKET

POLICIES AND PRACTICES AIMED AT

DESTROYING THE GLOBAL ECONOMY

BUT THEY SAY THE POLICIES ARE

NOT DESIGNED TO HARM CHINA OR

ECONOMIC PROGRESS.

THEY'RE ALL WALKING ON EGG

SHELLS AROUND COMMUNIST CHINA,

GORDON.

>> WELL, THEY CERTAINLY ARE.

AND THEY'RE NOT WILLING TO SAY

WHAT'S NECESSARY AND THAT IS

THAT THE UNITED STATES AND THE

OTHER COUNTRIES IN THE G-7 NEED

TO DECOUPLE COMPLETELY FROM

CHINA.

NOW, I KNOW THAT SOUNDS HARSH

BUT THE POINT IS, THAT IT'S

NECESSARY.

WE KNOW WHAT TIMES IN HISTORY

WHEN WHAT IS NECESSARY IS NOT

CONSIDERED PRACTICAL ARE

FOLLOWED BY HORRIBLE PERIODS BE.

THAT'S WHAT'S GOING ON RIGHT

NOW.

THE BIDEN ADMINISTRATION IS

ADOPTING THE SAME POLICIES WITH

REGARD TO CHINA AND TAIWAN THAT

IT ADOPTED WITH UKRAINE AND

RUSSIA LAST YEAR.

AND WE SEE HOW THAT WORKED OUT.

WE DON'T NEED WAR AT BOTH ENDS

OF THE LAND MASS.

THAT LOOKS LIKE THE BEGINNING OF

A GLOBAL CONFLICT.

MARIA: THE OTHER THING IS,

GORDON, I WAS MENTIONING THIS TO

THE TEAM HERE, REMEMBER A COUPLE

WEEKS AGO THE WHITE HOUSE

BASICALLY LEAKED OUT THAT THERE

WOULD BE NEWS AROUND THE G-7

THAT THE PRESIDENT WOULD COME UP

WITH SOME KIND OF A

MULTITRILLION DOLLAR

UNDERWRITING, A PLAN TO STOP OR

LIMIT INVESTORS IN AMERICA TO

INVEST IN CHINESE COMPANIES,

PARTICULARLY WHEN WE'RE TALKING

ABOUT ACCESS TO TECHNOLOGY.

WE DIDN'T GET ANY OF THAT.

OKAY.

SO THE WHITE HOUSE LEAKS OUT

THIS STORY THAT THE PRESIDENT IS

GOING TO PUT LIMITATIONS ON

INVESTING IN CHINESE COMPANIES

OF.

WHAT DO WE GET?

WE ACTUALLY GOT CHINA HITTING

BACK ON AN AMERICAN COMPANY,

BEIJING ANNOUNCING PLANS TO BAN

MAJOR FIRMS FROM BUYING MICRON

SEMICONDUCTOR CHIPS.

THEY SAID THEY FOUND SIGNIFICANT

SECURITY RISKS IN MICRON

PRODUCTS.

SHARES OF MICRON ARE TAKING A

HIT, STOCK IS DOWN BETTER THAN

5%.

THIS IS WHAT WE GOT AROUND THE

G-7, GORDON.

WEEKS AGO, THE WHITE HOUSE IS

FLOATING A STORY AROUND THAT THE

PRESIDENT IS GOING TO PUT

LIMITATIONS ON INVESTING IN

CHINESE COMPANIES.

>> YES.

REALLY WHAT'S GOING ON HERE IS

THAT CHINA CUT OFF COMMUNICATION

LINES WITH THE UNITED STATES.

IT'S DANGLING THE PROSPECT OF

TALKING TO CHINA AS IF THAT IS A

PRIVILEGE FOR US AND I THINK

THAT THEY ARE DOING THAT IN

ORDER TO PREVENT THE ISSUANCE OF

THOSE REGULATIONS AND THAT

EXECUTIVE ORDER WHICH WOULD CUT

OFF AMERICAN INVESTMENT INTO

CHINA'S A.I. AND OTHER CRITICAL

SECTORS.

RIGHT NOW, WE HAVE AMERICAN

COMPANIES THAT ARE FUELING THEIR

CHINESE COUNTERPARTS AND THOSE

CHINESE COUNTERPARTS ARE HELPING

THE CHINESE MILITARY DEVELOP

WEAPONS THAT ARE GOING TO BE

USED AGAINST THE UNITED STATES.

AND WE LEARNED AGAIN THAT

AMERICAN COMPANIES CAN INVEST

THROUGH THE SAVINGS PLAN OF THE

FEDERAL GOVERNMENT INTO

COMPANIES THAT HAVE BEEN PUT ON

THE ENTITY LIST OF THE COMMERCE

DEPARTMENT.

THIS IS INSANE, MARIA.

MARIA: YEAH.

AND YOU KNOW, MICHAEL McCALL

JOINED ME YESTERDAY, THE

CHAIRMAN OF THE HOUSE FOREIGN

AFFAIRS COMMITTEE, AND HE

MENTIONED THE FACT THAT DON'T

FORGET CHINA CAME UP WITH ALL A

OF THESE NEW NATIONAL SECURITY

LAWS AND THOSE NATIONAL SECURITY

LAWS MAKE IT FINE FOR THE CCP TO

MARCH INTO ANY AMERICAN COMPANY

THAT THEY WANT IF THAT COMPANY

IS OPERATING IN CHINA.

THEY DID IT TO BAIN CAPITAL, THE

CONSULTING COMPANY.

THEY'RE TRYING TO SCARE

CONSULTING COMPANIES THAT ARE

FOREIGNERS IN CHINA.

AND THEY'RE ALLOWED TO DO IT.

THEY'RE GOING INTO AMERICAN

COMPANIES, RAIDING THE COMPANY,

STEALING INTELLECTUAL PROPERTY.

HOW DO AMERICAN COMPANIES

OPERATE IN CHINA, KNOWING THEY

FACE THIS RISK?

McCALL WENT THROUGH THE

FOREIGN POLICY UNDER PRESIDENT

BIDEN AND SAID HE'S MADE ONE

MISTAKE AFTER ANOTHER, BEGINNING

WITH WHEN HE WALKED INTO THE

OVAL OFFICE AND CANCELED THE

CHINA INITIATIVE.

THEN HE WAIVED SANCTIONS ON THE

PUTIN PIPELINE INTO EUROPE, THE

NORD STREAM 2 PIPELINE.

HE WAIVED THE SANCTIONS.

HE HAS THIS BOTCHED AFGHANISTAN

WITHDRAWAL AND THEN A RIGHT

AFTER THE BOTCHED AFGHANISTAN

WITHDRAWAL McCALL SAID HE SAW

IMAGERY THAT SHOWED RUSSIA

STARTED GETTING IN PLACE AROUND

UKRAINE.

SO THE POINT IS, IS ALL OF THESE

MISSTEPS FROM JOE BIDEN HAS

INVITED AGGRESSION ON THE WORLD

STAGE.

>> YES.

AND WE SEE THE COLLAPSE OF

AMERICA'S STANDING AROUND THE

WORLD, WHETHER TALKING ABOUT

SAUDI ARABIA IN THE GULF, SUDAN

IN NORTH AFRICA, BRAZIL IN LATIN

AMERICA, YOU KNOW, IN MY

LIFETIME WE'VE NEVER SEEN SUCH A

FAILURE OF AMERICAN POLICY IN

SUCH A SHORT PERIOD OF TIME

WHICH RECALLS ROBERT GATES'

FAMOUS COMMENT IN HIS 2014

MEMOIR THAT BIDEN HAS BEEN WRONG

ON EVERY FOREIGN POLICY AND

NATIONAL SECURITY DECISION OF

THE PAST FOUR DECADES.

BUT WE ALSO HAVE TO ASK, MARIA,

BECAUSE OF THAT LAPTOP, HAS

CHINA CORRUPTED AND BRIBED THE

PRESIDENT OF THE UNITED STATES?

MARIA: AND WE ASK IT ALL THE

TIME BECAUSE IT CERTAINLY FEELS

WHAT WAY, GORDON.

I DON'T KNOW WHAT IS THE ANSWER

FOR THIS SOFT APPROACH ON OUR

NUMBER ONE ADVERSARY AND HE

DISPLAYED IT AGAIN IN JAPAN.

G