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Episode 674 Scott Adams: PART1 Talking With China Expert, Brian Kennedy

2019-09-25 | 🔗

My new book LOSERTHINK goes on sale 11/5. Pre-order: https://bit.ly/2NRammu


  • Special Guest: Brian Kennedy, China expert
  • Topic: Understanding China, its culture and people
    • Historical, cultural differences between China and America
    • Cultural Warlordism versus cultural law & order
    • Honor and Individual behavior versus business behavior
    • Should we “decouple” from China? Ramifications?
    • What can China do for us…that India can’t?
    • Chinese students in the US are the Chinese elite class
  • Follow Brian Kennedy on Twitter, @BritravKennedy 
  • Committee on the Present Danger: China
  • https://presentdangerchina.org

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The post Episode 674 Scott Adams: PART1 Talking With China Expert, Brian Kennedy appeared first on Scott Adam's Blog.

This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
bump bump bump bump hey everybody cloning here it's gonna be the best morning you ve read coffee was got atoms that's me and you're here for the simultaneous up plus all of the content which is they got today so there are two parts of today's periscope there's the amazing part in the front line tell you about a moment and then there's the incredible part the comes after that a hundred and which ones better in part of the incredible part you're gonna have to decide for yourself but if my technology works the way i hope we can be talking to china expert brian kennedy i'll be written choosing him in the bet but before i do that before i do that
you have to have the simultaneous yes we do and it goes like this it is a copper among your glasses diana tell us at anchor determines the flask again tina grail goblet a vessel of any kind till it with your favorite liquid i like coffee join me now for the simultaneous set the dopamine head of the day the thing everything better go just right you put them back in the coffee warmer m lobby just checking like estimate sure he is ready is i'm gonna fire him up and then give the introduction du du du can you hear me you brian you are president of the american strategy group a think tank
dedicated to understanding the strategic threats to the united states also board member senior fellow other claremont institute to where you have been president for several years in prayer and during your many years their youth directed gonna stay centre in sacramento well you ve got a lot of accomplishments here let me get the highlights a like a whole page of stuff you dont like an esprit impressive but tat the parts that people here will care about is that you and the chairman of the committee present danger china founded in march twenty nineteen and also you were national security surrogate for donald trump at the republic the national convention in cleveland and twenty sixty did i miss anything that would be important to our listeners to understand to you are now i think you got a pretty well covered and we can talk about china and
i dont know that anybody in this country as a good understanding of what's going on they are so i'm hoping you'll thus penetrate let me start with this general question that i think you can you can take it run with what is it that you think the american public needs to understand about china then maybe they don't catch the news or they thereof standing is incomplete what what are the important things we need to know in a geo political sense that's it that's a great question of start up and let me first say scott but with great pleasure it is to be with you because you're you're a great national treasure and i think your way of your way of thinking about the world has done more good in these last couple years then almost anything else but enough of that china is
one of those strategic concerns at the united states that most people don't quite at comprehend partly because they think we won the cold war back
the nineties we ve been fighting in iraq and afghanistan in china there a new problem there a new kind of serious threat i thought we trade with china we buy stuff everybody knows chinese people they don't seem like bad people they seem like good people there are neighbours are our friends they argue it they are yap absolutely and so when we encounter chinese people there is typically in a pretty favourable transaction so it's hard for americans to get their minds wrapped around that there is a country of one point four billion people half whirled away that is causing us all these problems but of course president trump ran on trying to make better trade deals with china you didn't talk about them as a strategic threat but just at the level of better trade deals president trump made at the case to the american people that in fact a lot of our economic downturn stagnation
whenever you want to call it for the middle class of the country has been caused by these bad trade deals with china days they ve taken our manufacturing they ve stolen or intellectual property and most americans are only now i think it in their minds wrapped around that that narrative of the president can you help us understand how much is just the chinese are good at competing and they're they're taking that the board as it presented to them in their maximizing and yet exactly like we would have verses something dig deeper and darker what what what we assume about their intentions will at the level of theirs to two points here one is intellectual property that the chinese are experts at either hacking into our systems and going in and stealing our intellectual property or simply
taking something that america's made reversed engineering it or more easily simply working with somebody in the company or the company itself to have a force technology transfer they say you want to come come to china we have to have a patent on this terror we have to be co owners of all this now might i may need to break in a moment just for some clarification shirt or might send my audience always yells of me when i interrupt anybody who is an expert are you not an expert librarian talk you another who say that but let me just understand this in context and america an american tech company would probably routinely get hold of a competitors product and reverse engineer it if they thought there was summit
damage they were trying to figure out so if china does it in justly reverse engineering sense is not completely normal well in america if you look at if google looks at what apples doing or vice versa an apple in our says wait they ve stolen something we ve done then they take them to court in china when you steal someone's intellect but they still be intellectual property what's the recourse is very hard for that matter company to go to a chinese court and say wait a minute keeps don't you ve stolen what we create here and the chinese say no course now we ve got stolen anything in fact in the trade negotiations chinese say what intellectual property that in their minds just good business the big and steal something they think that just how the game is played down merely in america we would sue
no literally i want to understand this as specifically as possible if we are to talk to a bunch of sea chinese see hours say taxi ours and we said you know it's bad business practice and spent for the world and you shouldn't be stealing other people's technology would they look like looking you like lead it even understand the boy i mean do they even get the point that there is that there is a long term disney benefit in dealing with people's squarely verses just taking every advantage you could get is there a difference in the culture in terms of not restoring the longterm advantage of trust building partnerships verses why life he left it table i up like you know i told me about you know i think that's a great point too i think in part they think that's just how the game is played it gets often said about chinese business deals in american business deals
first of all you want to sell something and i want to buy something if you sell for a dollar and i want to buy it for dollar and it's something i want that's a good transaction in china is thought that a good transactions one were that the chinese were able to screw you to be blunt now today that's an old way of thinking but nor do they apply the same thinking locally in other words when two chinese companies are doing this do they everything in germs a well i want a win win situation here because i have one other people do you trust me with me and i want everybody to win because in the law journalists better for everybody do they also say no if i if i got one over on you that's that's a good day for me all in all the writings about culturally about chinese business it's the latter if they can get away with it they will it's not that they are not forced very often to play
fair but it's usually even on the local level it's too it's to competitors forcing one each other to play for there have you ever look into the historical cultural reason for that difference has read in this book called what is it miracle nations suddenly got there is talk about how our early business ethics if he will i think came from the dutch so that the dutch had everybody's playing fair does matter who you are will deal with you but it has to be doesn't matter who you are we'll deal with you but it has to be fair feel like i came from some sort of a christian influence do you think that there's something
the christian influence of western business even if you're not a christian you still influenced by that that ethical standards do you think that just as lacking in china because there's not a religious kind of god's watching situation well perhaps i certainly can see in america why that made sense to what you're what you're describing in china i don't wanna assign them that so much as they ve not really lived under the rule of law and constitutional government the way we have to where we automatically thinks in terms today of law and order just in terms of where it comes from china has been living under a certain form of warlord ism for thousands fears to where it's all it's all strength again strength bone competition honor where is the concept of
family honour or personal honour comment cuz it seems to me it would be dishonorable this is my western brighton just honorable to to screw somebody in a business deal when they would know at two and it would come back and do you when people say skyscrapers people in business deals how it how is that not the sort of a source of shame i think it's partly that's just the way the cooking crumbles debt is detected to make may be mixed metaphors they they do have individual honour certainly but i do think they separate individual behaviour from business behaviour and they think business more likely
think of war whether its internally and externally and business is like war and always fair and more and so did that that that goes beyond any kind of personal honour they may have now and i'm assuming that the big problem is that their government has these same set of philosophies or ethics and so tell us about china's governments intentions the long run about the united states what what do you know about that well right now in chairing the committee on the present danger china and we had several hearings and we ve had a lot of experts talk about what the intent of china the chinese are its primarily to put china on top the world as be had germanic power
that doesn't mean china is going to invade the united states moroccan speak bespeaking chinese in a generation what it does mean is that china in the process of building their economy into the most powerful in the world their military into the most pre eminent power in the world than that that i still take some time but they're going to take whatever steps are necessary to get there now is is that just a natural extension of of businesses war and we're gonna take everything we can get where the biggest country will have the most money someday you start natural place to be in charge of things yes spill softly they see themselves as the middle kingdom meaning in the kingdom between heaven and earth and so they see themselves as is enough chairman mao had a he would read your books of philosophy in there was one particular story about
you cannot have two sons in the sky and that was that had a profound impact on him you can't have two sons in the sky there was going to be one son and that one son was going to be china so they think of themselves in a way in a very profound way americans me we happen to be the most powerful country in the world and the richest but that doesn't where the biggest and there's a lot of indicators against us at this moment china a long term view that there are going to be that pre eminent power now do does the united states now also want to be the most influential country and stay there i mean it does it sounds like what they want is very similar to what we want wouldn't one we want to have enough control over the middle east wouldn't when we want to be able to get the trading we want and if we could get deals it were better for us than them wouldn't we take it
maybe he maybe no right now we have a whole bunch of environmental policies just to take one example that that disadvantages with regard to china china has all sorts of trade laws in old age china has access before president trump too any u s market or almost any u s market the united states i have a similar access no why didn't why weren't you s leaders gabor trump pressing for the united states to have that advantage because we thought we would want china to develop we what other countries to develop and so we're not gonna do everything in our power to keep all this manufacturing and wealth here we're going to be
willing to export it somewhere else in that's been the globalist philosophy i think for the better part of fifty years has but but i think everybody would agree that there are always had to be a time when china get strong enough that that situation would have to be readjusted so that this is the readjustment period right right get this is the readjustment and so they seriously your gear you're right in that regard your certainly right that in america wants to be on top but we haven't pursued the policies that would keep
on top until so so what do you think he's gonna commanded the trade deal and do you think we should decouple or try to make a deal well i mean it be perfectly fine to do both in a weighty couple shady couple well i'm a thoroughly and certainly for decoupling because i do think we can do all this manufacturing in the united states an idea i think i think its irresponsible by the way to have our electronics especially those we use in the military but even those we used in use in every day telecom equipment made in china that seems that seems like i just as a silly proposition given the pact about their theft of intellectual property solar let me let me give you some i possess goals here just just like it understand the other this outer smart people think about this
let's say and i am not saying this good ever happen let's say china made some kind of a promise about intellectual property that had a little bit of teeth in utter enough that's possible let's say with they could if that problem were solved or even if we say how about we just take technology out of it we're not gonna make that their but everything else is still lay could we make a deal if we could solve the ip stuff which other north could be solved if we if we could make that deal and we had access to their markets yes absolutely we can make a deal the prize the problem as they say there your steel like they say that we don't steal it that's a problem and they're not going to allow any
enforcement regime that actual holds that you account they ve said as much so why are we ve been talking to them what what did what is obviously what's the point what can you tell me is what small person is saying ok we can still work this they say that no matter what we do they're going to reach into our body cavity rip our hearts out and show it to us before we die but i like all the rest of the stuff so so i think there are still looks good well except for their one part where they reach their systems of our chest rip out are shown to us before they die is that was doubling is there's somebody on the on the team this as yet we can make this happening even though the ip park and never happen
but what anybody ownership i allocating present a trumpet secretary malnutrition and robert quite high strung bastard mine eyes her on the job to see if that's actually possible and so the president didn't wanna arbitrarily say what you just said that this is hopeless he wanted to make the case that i'm gonna give it my best shot she something if at the end of the day they are not willing to have any kind of acknowledgement and in full regime then when i walk away from this everyone could not their head on wall street pathway wall street someone pushing for the trade deal because they what they want status quo before trap but at someone is trying to make the case that in fact deal can be made i dont think it actually can be made but he too present giving in his best shot who do you think our government and i
most i want to ask this question because i think you might know the answer and if it's the wrong answer i'm just gonna flipped out so i swear to god i'm gonna flipped out do you think our government would ever make a deal with china of any kind of trade deal or their top sentinel dealer whose name we know the address is known i think sixty minutes interviewed him while that guy still a free man are we gonna make a deal with china under that condition it president trump understands that the answer is absolutely no thank you on the other on the other hand a lot of things get presented to present trump and he doesn't know lucky he asked to delegate a lot of
other people but the sentinel thing is so simple it seems so cutting dry nobody cares chemical rotor biological warfare against the united states is crazy right but it's it's unambiguously easy to identify whether china is acting against it because that guy's either alive or dead we know his name we know his face we knows address we know china knows it we know the guy the specific guy who is killing tens of thousands of men if that guy's alive i can imagine the president a wouldn't understand that concept he didn't really what it would ever put us into a trade deal with mass murders i just don't see any anyway there anything but decoupling is gonna happen here if if i had to place a bad i'm decoupling good about would it be i think it's probably a memorial judgement day would be eighty twenty that wasn't i
that we're gonna purple again you know from my from china simply because their their rhetoric has not in fact has become more strident they have the the diversity of up their original coming up on october were first they see trump having to run rebuild circumstances so there are better not gonna do not can make deal now if they can we make a trade deal possibly with elizabeth one what her my god what what is it that china i can do that india can't do an end is raising stopping us from say look we tried china but now india's are best friend watch what we do together because obviously modi and and trumpet along pretty well oh look i think india's very advanced country an
i don't see why there was anything i think you're right we should be doing business with india and other people around the world is no real china should be locking all this technological manufacturing and if no look at china wants to compete they can compete but they have to do it fairly and openly and right now they're not willing to do that they think they can believe their way through almost anything now let's talk about the wiggers the the ethnic my minority there is like and there are being rounded up i saw as video kyle bass had it did you know that we have a sense of other video was real needs fake news showed it showed hundreds of wiggers lined up in handcuffed and yeah sitting there with things over their heads and sat by the chinese guns
do you think that was a real real video you know i don't know i've not gotten any confirmation one way or the other side's now right but we see what they're doing in hong kong it that's a parallel and so i can imagine there doing that to the weaker the weaker they like even less than the people of hong kong who were bore ethnically chinese so like a mad wiggers very badly they so that if that is the other look i think at some level they want people to see just how violent they are they want people to see that they are willing to do anything a lot of people in the west that will scare them so if you don't mind me asking the west does well that's a benefit to them yet you rode a great article on that were working people find that i think that was on the hilda
but i think it's all present dangers china dark president china dogs so see your view is that china guess her to her with a car one is one is that if they prevailed and i believe they will in the long run because they have the long the long view thinks it will this will give them more control that they want but also shows the world a either does not aligned were not willing to cross so make sure that you make sure you're nice to us that does the basic idea that's a basic idea at a meet their merit go we cabin aversion to violence we don't like by and were willing to do internally almost anything to avoid it so well
the other countries engage in that kind of violence where we take a step back now get not president talking about the liberal media and it almost operates at a sub caught just look whatever we can do to make them happy maybe they'll stop hurting around people so they're almost keep in part of their people the hostages and their put up the durban up look they knew how to enable one point four billion people into doing what they want that's the high sophisticate soak any of us little summary of what the average was a middle class and higher chinese citizen can were does see on the internet in other words how much of the the external too
so they saying versus just china's version of truth i think their most leaks thinking truth i think there are there are caught them with two people can can avail themselves of the true mostly through western contact by and large its exact with the government wants them to see and also though they they live a kind of electronic surveillance and credible pouring in your body in china in the middle class and you're doing ok you of a white a kid a job car a house are you gonna risk that in china we're trying to you know illegally hack into get your way into an access western information that your government may
peter and i think a chinese actual chinese citizens are going to college in the united states the other estimate for them i think right now fifty thousand lizzie almost almost sixty attic and would it be to say that those people are getting a full taste of non china propaganda or are they also maybe surveillance by china so that they can even do a google search without china knowing idea to have a sense of how tracked they are when there in this country you know well it's hard to do all that certainly we can be tracked weathered whether china would expand resources on that they certainly have the resources to to monitor those
chinese nationals who are in this country but again again once their sent here their part of the chinese elite and both those folks were still regulate to a large degree because go back home to china and be part of the chinese elite but i get what you say about self regulating and certainly there self interest is let's just go back to china and live live my great life but they would still be infected with a set of knowledge that would not be a common to the chinese people and feels like that would seek out listen to me are we better off or worse off because we host so many chinese students in our universities are but are we sending them back with like a little freedom virus that maybe they don't even though they have but time goes by and like you know
the soil america desert and i'm just not going to put up with this work are we willing or losing by educating their elite probably unfortunately were losing because we're exporting the knowledge base that they would otherwise be able to easily acquire and their taken that back and making type you need a communist still flying lives those people i'm betting it's a total waste what went on board a catholic highschool for instance and we have thirty kids from shut and to put them in a word it
we recently two of them based time their parents to all boys school for seventeen years old they and their pets but these boys therefore if block and thereby told them back in its which time the seventeen years that had perhaps both sides that cept i love you now i will i know what i find that mine blowing that no it were instead work plan sonic father said about this after being in america at a cap is over three years treatment and infection what whenever you want to say that in the end
stumper so what would you think of this idea suppose we said a china we're gonna send back one student forever you friends and all death in this country do whatever you want it's just a new system logan it we're just gonna pick one sunday mom and either fifty thousand of them here so that should take a little over two years to get rid of every kind student how long would it take another word asking how important visit to china that they can get education's here how long would it take before the elite said wait a minute mice my kid can get the finest education because were killing theirs citizens having do we really need to do that i'd like to get an education allow me to take you for that would change minds over there or would it would probably change it immediately
the illegal is fair play much one i think really very much very much want to build europe and educated mister they want them those the western western i know well educated the gene my idea is that they would know exactly why their kid got kicked out and they're gonna make a big think about it and so we would be weapons rising one person after another one set of parents after another in the elite to go back to their other leading say here now maybe this is under work out just the way we want i liked the part where we kill americans but i don't like the part where my kid can go to college yes the other night here now but i noticed some people will say making it very well
read it so if you see my periscopes you know that they say that all the time there are two do you hear me i can you find and in the reply and the replay is usually find some jobs on their end with their connection and then they start complaining and some of that is truly to saying the sound is bad there trying to adjust interrupted the programme so i've got a number of other topics but i want to give you as much time as you want to get your message out cause i think is important people dont care from from this well why should i have asked about china what's what's a theme that you really like the picture we understand why can t the next phase of this whole trade debate is gonna be around the fact that china defaulted on their sovereign debt and that president trumpery airports
the opening up their markets and in depth and intellectual property i think one of the big things coming up is going to be the pact that china defaulted there are debt a lot out defined sovereign debt in this context for the audience because i don't think they understand this is a historic all different government system debt write yes yes i cannot pass and tree early last century when they had their revolution from me from the republic opel capital bonds the way the u s government has u s treasury bonds i had many and they went they raised when tat irresolute option or consolidate their rub pollution
china to become the contributed daddy even the boat out from a republic the communist government well they owe to quit again i wanna get to deepen whittier other than to sunday china global system or the day engagement pray beat our hour limit let me go with the present than we can jump right now china's talking about coming a wall street over the next five years in having new sovereign debt and dead there are state owned enterprises orbit queen on two trillion dollars over the next five years no freckled way unless they pay
the debt their right and you with the bank before them tat they pay off debt that they previously go now they pay the british public debt stood up to them and they were negotiating hop uncommon about other things but now they want they went back to the american camera it turns out they had made good honest stead but there was about it and got it i think we're gonna city is dolls overburden funny that twenty twenty them our families in letting forty six states own and that currently the american people money can't get in the interrupted the audience is going
but let me just say the audience i'm not going to reboot there's nothing i can do about it i know you're having little crackling with a sound you dont have to all tell us a few of you told a few of us all told us now understand so the sovereign debt in other words these bonds would you call them or their bonds yet the other parts so i'm i pushed the idea that china likes there is social credit scorings them but they might like less if we created i mean literally created some candidates business credit scoring system and an score them young and unworthy of business because you ve got your death that they won't pay you ve got your china deal that there
to abrogate you ve got the ceiling of the ip you ve got the sentinel etc and i think you could just make a checklist and say if anybody if anybody's got five other things on this checklist they're not creditworthy just just just making a banking issue because banks are completely risk management objective is not political just risk management using a rash no world that's exactly how it would work you know if it takes a black bob that would be a penny that's my house would have to shoot him investor drought is wall street our people want bobby as is strictly firms patches of buildings in the morgan stanley then we're gonna be there are selling this debt to investors
and making the commission on all these debts wall street has no interest in highlighting all the acts too either the american people or specifically to the investors with whom one is of course only want to sell this step maybe there's some solution worthy investors and the public says well i don't want to deal with a wall street company that would take such a bad loan on figures why would i invest in their company there they ve got troubles brian i'm going to move on to another topic i think that is the big stuff do you fifty do you feel like we did you feel like we hit the big cited and thank you so much work could we find you on twitter let's say beyond the present danger china daughter work and then the twitter handle bliss at bright trap candidate be right here av kennedy
at the hour i e r av be all right here av can it entity so follow on twitter i'm gonna do you disconnect you know brian and go on to some other stuff and thank you so much that was really got it you don't wanna go out the preceding he's got you thanks are right that was terrific great great context i got a few other things member i told you the first part would be amazing and i told you second parodi incredible war were in the second barnett
Transcript generated on 2020-03-31.