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The President's Daily Brief

PDB Situation Report | November 30th, 2024: Trump’s China Strategy & Security Breaches in the UK

Sat, 30 Nov 2024

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In this episode of The PDB Situation Report: Former President Donald Trump’s potential cabinet picks—how they could reshape U.S. policy on China. Author and expert Gordon Chang joins us for his analysis. A troubling development for America’s military abroad—three U.S. Air Force bases in the UK are experiencing drone intrusions. Retired U.S. Army Colonel John Mills weighs in on what it means for national security. To listen to the show ad-free, become a premium member of The President’s Daily Brief by visiting PDBPremium.com. Please remember to subscribe if you enjoyed this episode of The President's Daily Brief. YouTube: youtube.com/@presidentsdailybrief Patriot Gold: Call 1-888-870-5457 for a free investor guide. Blackout Coffee: https://www.blackoutcoffee.com/PDB Learn more about your ad choices. Visit megaphone.fm/adchoices

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Transcription

Chapter 1: What cabinet picks is Trump considering for handling China?

12.475 - 31.612 Mike Baker

Welcome to the PDB Situation Report. I'm Mike Baker. Your eyes and ears on the world stage. All right, let's get briefed. We're kicking off today's show with a close look at Donald Trump's cabinet picks and how some of those selections could shape America's approach to China. Now, joining us is author and good friend of the show, Gordon Chang.

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32.012 - 53.475 Mike Baker

He'll be providing his expert analysis on what these choices mean for the U.S.-China relationship. Later in the program, in what's becoming an ongoing issue for America's military, and this is very interesting, three bases in the UK used by the U.S. Air Force are getting buzzed by unidentified drones. We'll talk to retired U.S. Army Colonel John Mills about that.

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54.175 - 72.277 Mike Baker

But first, today's Situation Report Spotlight. Donald Trump's cabinet choices are sending a clear signal about his administration's approach to China. Two appointments stand out, Senator Marco Rubio, of course, for Secretary of State, and billionaire investor Scott Besson for Treasury Secretary.

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72.938 - 90.443 Mike Baker

Now, Rubio has built his reputation as a staunch critic of Beijing, often highlighting its human rights abuses and military aggression in the Indo-Pacific. Well, he's not wrong. As Secretary of State, he would likely steer U.S. diplomacy toward a more confrontational stance against China.

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91.023 - 109.271 Mike Baker

On the economic front, Scott Besson's nomination as Treasury Secretary, well, that suggests an equally firm approach. A strong proponent of tariffs, Besset has argued that they're essential to countering unfair trade practices, a strategy that aligns with Trump's previous policies on China.

Chapter 2: How could Trump's cabinet shape U.S.-China relations?

109.891 - 132.889 Mike Baker

Now, these selections underscore a broader strategy to confront China on multiple levels, from diplomacy to trade to security. For more on this, let me bring in Gordon Chang. He's the author of a great new book. It's called Plan Red, China's Project to Destroy America. You can check him out on X, at Gordon G. Chang. Gordon, thank you very much for joining us again today. Oh, well, thank you, Mike.

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133.23 - 152.251 Mike Baker

Gordon, we managed to do it. We survived the election. You know, he's pretty much settled into his nomination picks. And that's where I'd love to start today, is to get your assessment. From sort of a forward look towards the China-US relationship, I'd like to get your assessment of his key picks.

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152.351 - 158.861 Mike Baker

And maybe we start with Secretary of State, we start with Treasury Secretary, and then just kind of roam wherever you want to on that one.

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159.4 - 187.527 Gordon Chang

President Trump's picks indicate that he's going to, first of all, go for tariffs, which we saw in the beginning of this week with the announcement of 25% tariffs on Mexico and Canada and the additional 10% tariffs on China for fentanyl. And clearly, Trump is probably going to add some more tariffs on China as well. This is important because it's going to rearrange trade flows around the world.

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188.207 - 214.958 Gordon Chang

And because of that, I think these picks are good ones. because we're talking about people who will support his tariff initiatives. So I think when you look at Treasury, his nominee Bissette probably was a little bit reluctant about tariffs to start out with. But there is reporting that Trump insisted that he support tariffs should he nominate him.

215.158 - 236.786 Gordon Chang

And so this is going, I think, in the right direction. And of course, you have China hawks. You have China hawks at the State Department, Marco Rubio, and as National Security Advisor, Michael Waltz. So right now, the president has made it clear where he's going, at least as a first position in his administration. Do you imagine...

237.546 - 256.102 Mike Baker

With the tariffs, because I've heard a lot of talk about their use as a negotiating tool, do you get the impression that a lot of this early talk related to the tariffs is more about positioning for trade talks down the road, or do you think they're actually serious about just laying these on right from the outset?

Chapter 3: What are the implications of U.S. Air Force bases experiencing drone intrusions?

256.562 - 284.902 Gordon Chang

Probably both. A lot of people talk about these tariffs as negotiating tools, and Trump has used that. In his first term, he imposed the 25% across the board tariffs in 2018. And in the beginning of 2020, he had his phase one trade deal, which I think was a mistake. But nonetheless, you can see that the tariffs set the stage for that agreement. This time, yeah, he could negotiate them.

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284.942 - 311.497 Gordon Chang

But we've got to remember that during the campaign, he talked about tariffs continually. And it wasn't just sort of off-the-cuff talk. He actually discussed McKinley and the effect of the McKinley tariffs on the American economy. And that shows that he's actually done a lot of learning about this. Because this is a president who obviously believes deeply in rearranging trade through these levies.

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Chapter 4: What does Gordon Chang think about Trump's tariff strategy?

312.168 - 333.295 Mike Baker

Now, last time we talked, Gordon, you said something that I thought was fascinating, and you've alluded to it in the past, but I'd like to talk about it a little bit more in light of folks like Waltz and Rubio being put in for confirmation in these important positions. And what you had said was that China essentially is on a war footing with the West.

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333.736 - 354.063 Mike Baker

It's just that the West doesn't either understand that or chooses to ignore it for whatever reason. You obviously are in favor, based on what you've just said, of folks like Rubio being in these positions, but what are you seeing or what are you hearing from the Chinese regime side in these early days?

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354.303 - 363.147 Mike Baker

I know we're still well away from the inauguration, but have they been positioning or saying anything or setting the table for this incoming administration?

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363.655 - 387.302 Gordon Chang

What's fascinating, Mike, is that throughout this month, we have seen China go uncharacteristically quiet. It is peripheral seas and airspace. And that's a real indication that the regime in Beijing is very concerned about Trump. They're giving him a wide berth. They don't want to take him on, at least at this stage. And that's a real indication of, I think,

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388.022 - 411.501 Gordon Chang

and the realization in Beijing that they have got to please Trump. So, at this time, at least, and I don't know how long this will last, but at this time, at least, things are going fairly well. We've also seen some other things in China setting the stage. So, for instance, again, throughout this month, China has been forcing down the value of the renminbi.

412.282 - 436.991 Gordon Chang

That looks like anticipation of a trade war with the United States or anticipation of very high tariffs. When we go back to 2018, when Trump imposed his Section 301 tariffs, China picked up somewhere between 75% to 81% of the cost of those impositions. And this time they have even more incentive to do that.

437.632 - 452.586 Gordon Chang

So I think that this move to force down the value of the currency is a real indication that they're getting ready, as you say, setting the table. So it's not just geopolitically, it's also from an economic point of view as well.

453.027 - 480.154 Mike Baker

To what degree, let's imagine that we get into a trade war, right? That relationship continues to escalate in terms of tensions, we get into a trade war, To what degree do you imagine the Chinese regime would use their advantage that they have in terms of, let's look at a variety of things, refining of rare earth minerals or their pharmaceutical industry? We saw that during the pandemic, right?

Chapter 5: How has Xi Jinping's approach towards Trump changed?

480.515 - 494.544 Mike Baker

How our supply chains have a real reliance in certain areas on Chinese production. So, I mean, I think there's a lot of complexity here and things that we need to worry about other than just our prices increasing on certain goods.

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494.984 - 526.086 Gordon Chang

Well, China has already imposed export embargoes on certain rare earths, and they could increase that. And as you point out, during the early months of the pandemic in 2020, they threatened to cut off pharmaceuticals. Got to remember that, yes, we have got to buy, but also China's got to sell. So I think what would happen would be, if they were to say, impose export embargoes on pharmaceuticals,

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526.866 - 548.868 Gordon Chang

we'd still be able to buy Chinese pharmaceuticals. We may not be able to buy them from the Chinese directly, but we can buy them through third parties. Go back to 2010, China imposed an export ban on rare earths to Japan. Japan actually just bought them directly from Chinese state-owned enterprises, which had to sell despite the embargo.

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549.168 - 574.085 Gordon Chang

And the embargo lasted a month or two, and then Beijing just capitulated. So I think we'll probably see the same thing here. If China were to impose export embargoes on the U.S., they might be more determined with us than they were in 2010. But nonetheless, the market is a global one, and we'd be able to source what we need. Higher price initially, but we'd be able to do it, Mike.

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574.705 - 596.533 Mike Baker

That assumes that things don't get out of control, I suppose, right? I mean, that, you know, if things really head south, then to what degree are we, let's just keep looking at pharmaceuticals, because that did create such a concern during the pandemic. And the pandemic is an ancient history, although people seem to be acting like it was. or acting like we're not going to have another one.

596.613 - 618.198 Mike Baker

And of course, we will have another pandemic. So, if things really head south in this relationship between China and the US, and I know it's all speculation, but there's a real problem there, it seems, if they say that's it. And as you refer to it, an export embargo on key pharmaceuticals, antibiotics and sedatives and other things.

618.738 - 646.929 Gordon Chang

If things really go south, and there's a possibility of that, of course, China probably wouldn't be in a position to export stuff, even if it wanted to. And we would suffer mightily, especially pharmaceuticals, which is a warning to us that this is something that we need to do on an emergency basis. We should have done this a long time ago. But nonetheless, we have that critical vulnerability.

647.597 - 668.983 Mike Baker

Do you imagine, I mean, Senator, I haven't asked you this question in the past, but where are you on that? Do you believe fundamentally that we're not going to get in some sort of kinetic situation? We're not going to get into a shooting war with China, but that we, I mean, where do you think this is going?

669.023 - 675.846 Mike Baker

Because my impression from how you just answered that was that you're a little hesitant to imagine that we would actually get to that point.

Chapter 6: What is the Chinese public's perception of Trump?

707.972 - 729.987 Gordon Chang

It's not ready to go to war because the senior leadership of the PLA, People's Liberation Army, is in disarray with all of these purges which are continuing. Also, we have a Chinese military that just doesn't want to go to war, which is the reason why we've been seeing the removal of officers who are opposed to war.

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731.145 - 760.502 Gordon Chang

And we also have a Chinese military that, although it has a lot of shiny new weapons, is not confident because they have not fought a war since 1979. In that 1979 war, their first string army got beaten up by Vietnam's third string. We saw real failures of command in 2020 when China launched a surprise attack against India in Gawang. This doesn't look good for the Chinese military.

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761.022 - 785.154 Gordon Chang

Also, we know the Chinese people don't want war right now. This is a populace that is really angry at the leadership, and they're in no mood to go after and kill people, especially people that they consider to be Chinese. In other words, people in Taiwan. People in Taiwan don't think they're Chinese, but the people in China do, and the people in China do not want a war, especially with Taiwan.

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785.934 - 809.491 Gordon Chang

And then you got to remember one other thing. For Xi Jinping to launch a big war, combined air, land, sea operation, he's got to give some general officer, some admiral, or some general total or almost total control over the People's Liberation Army. making that person the most powerful person in China. Xi Jinping doesn't trust his general officers even in the best of moments.

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Chapter 7: How does China influence North Korea?

809.911 - 816.633 Gordon Chang

He's certainly right now not going to trust any other figure to make that person more powerful than he is.

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817.333 - 841.411 Mike Baker

As you're saying that, what popped into my mind is sort of the top line similarities between how you're describing the failures in command and control, the mistrust of generals between Xi Jinping and Vladimir Putin. Gordon, if you could stay right there, we'll take a quick break and then we'll be right back. Hey, Mike Baker here. Well, we did it. We survived a historical election.

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841.591 - 844.394 Mike Baker

You might have heard something about it. Now, sure, there's going to

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844.534 - 870.554 Mike Baker

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870.954 - 890.428 Mike Baker

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890.968 - 922.286 Mike Baker

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922.466 - 942.17 Mike Baker

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Chapter 8: What should the U.S. do regarding military communications with China?

1004.493 - 1020.805 Mike Baker

A bunch of questions here, but you said something just before the break that I found very interesting. You said when discussing the situations amongst the Chinese leadership in Beijing, only the most hostile answers are acceptable. What do you mean by that?

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1021.505 - 1050.639 Gordon Chang

Right now, I think that Xi Jinping has configured the Chinese political system in a way which is really belligerent. Got to remember that when he became China's leader in 2012, he inherited a consensual political system, where no Chinese leader got too much credit or too much blame. But by taking power from everybody else, he's created a lot of antagonism among senior figures.

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1051.779 - 1082.724 Gordon Chang

And he has made nationalism to be something that defines his rule, which means that only hostile answers are considered as acceptable, because he has set markers for himself. He set them over Taiwan, Japan, Philippines, elsewhere. So if he goes back on it, which I think he's trying to do now, but when he goes back on that, other people are going to hold him to account for that.

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1083.365 - 1097.158 Mike Baker

So this is something which is- When you say, Gordon, I'm sorry for interrupting. When you say going back on that, do you mean you get the sense that he's perhaps trying to moderate his position? And if that's the case, why would he be doing that?

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1098.26 - 1123.974 Gordon Chang

Yeah, I think, well, certainly this month we have seen him moderate his position. And he's doing that, I think, because, as I mentioned, he does not want to take on Trump right now. He doesn't think China's ready. And, you know, we've seen Xi Jinping basically being afraid of Trump. That started in April 2017 when Xi was at Mar-a-Lago.

1124.494 - 1152.734 Gordon Chang

And remember, at dinner, Trump stood up and said, I've just launched 59 missiles on Syria. Syria, by the way, is China's friend. And Xi Jinping was disrespected big time by Trump. And Xi was quiet. I think he was flummoxed. He did not know what to say. He could not respond. And that fortunately set the tone between the United States and China for the four years of Trump's first term.

1153.916 - 1175.433 Gordon Chang

Now you're seeing Xi Jinping seeing something that he really didn't want. a return of Trump to the Oval Office. So, I think that what we have seen, at least this month, is Xi Jinping cooling it. This may not last, probably won't last, but at this point, I think that Xi Jinping is trying to walk it back.

1176.274 - 1199.202 Gordon Chang

And that's going to be hard for him, because as I mentioned, he's created all of these markers for himself, and they are the test of his legitimacy. And so, with a very nationalistic wolf warrior for diplomacy, as they call it, that means he may not be able to control escalation. And as I said, only the hostile answers are considered to be acceptable ones.

1199.782 - 1213.988 Mike Baker

What about the population in general? I mean, it's a fascinating insight that you've just laid out for Xi Jinping's view on Trump. But what are the people of China? What's the population think about Trump? What's their view?

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