Hong Kong’s leader Carrie Lam fully withdraws extradition bill

Hong Kong’s leader Carrie Lam fully withdraws extradition bill


WE KICK IT OFF WITH THE NEWS OUT OF HONG KONG. CARRIE LAMB WITHDREW THE EXTRADITION BILL FORMALLY. THAT BILL WAS THE CATALYST THAT SPARKED THE PROTESTS THAT TOOK OVER THE CITY. IT ALLOWED HONG KONG CITIZENS TO BE SENT TO MAINLAND CHINA FOR TRIALS. THE HANG SENG SOARED ON THE NEWS, UP 4%, THE OTHERS ALSO IN ASIA. JOINING US NOW IS THE DIRECTOR FOR CHINESE STRATEGY, MICHAEL PILLSBURY. THANK YOU FOR JOINING ME THIS MORNING. YOUR REACTION TO THIS NEWS THAT SHE IS FORMALLY WITH DRAWING THIS BILL.>>IT’S VERY GOOD NEWS. SHE WOULDN’T DO IT WITHOUT PERMISSION FROM XI-JINPING IN BEIJING. THE OTHER DEMANDS, THE DEMONSTRATORS HAVE MADE, THEY WANT A POLICE INVESTIGATION FOR BRUTALITY, THEY WANT SOME OF THEIR COMRADES RELEASED FROM JAIL, AND THE BIG DEMAND IS UNIVERSAL ELECTIONS THAT CHINA PROMISED IN 1980 AND PROMISED EARLY IN 1984 AS WELL. SO SHE HASN’T MADE ENOUGH CONCESSIONS BUT THIS IS A REAL BREAKTHROUGH AND BODES WELL FOR THE TRADE TALKS. IF XI-JINPING APPROVES THIS KIND OF CONCESSION FOR HONG KONG, MAYBE HE’LL APPROVE THE DELEGATION COMING HERE IN P DECEMBER AND GETTING BACK TO WHERE THE BE WHERE THE PE WHERE THE PRESIDENT WAS IN APRIL WITH 90% OF THE DEAL DONE. MARIA: SO FAR WE HAVE NO DETAILS ON ANY MEETING BETWEEN XI-JINPING AND PRESIDENT TRUMP IN SEPTEMBER.>>WELL, IF YOU READ THE PRESIDENT’S TWEETS CLOSELY, FROM YESTERDAY, HE’S SAYING THEY’RE PROBABLY GOING TO TRY TO WAIT HIM OUT 16 MONTHS AND HOPE FOR A DEMOCRAT TO WIN. THAT’S WHAT THE CHINESE TELL ME. THE T THE PAT HAS THEPRAT HAS THEPRES HAS THEPRESIDAS THEPRESIDENT HAS TOLD ME I’M WRO THEPRESIDENT HAS TOLD ME I’M WRG THEPRESIDENT HAS TOLD ME I’M WR. THEIR ANALYSTS SEEM TO BELIEVE A DEMOCRAT WILL WIN SO THEY’LL GET A BETTER DEAL. MARIA: WHAT DO YOU THINK THE DEAL SHOULD LOOK LIKE? AT THIS POINT THE PRESIDENT OUTLINED THE BIG TICKET ITEMS. HE ISSUED A STARK WARNING FOR CHINA, VOWING TO RAMP UP PRESSURE IF HE WINS THE SECOND TERM. THAT DELAYING NEGOTIATIONS WOULD END IN, QUOTE, A MUCH TOUGHER DEAL. WE KNOW THE BIG TICKET ITEMS WERE THE THEFT OF IP, THE FORCED TRANSFER OF TECHNOLOGY. CAN THE PRESIDENT DO A DEAL WITHOUT THAT?>>NO. BUT THOSE AREN’T THE REALLY BIGGEST ITEMS. THE BIGGEST ITEMS ARE THE LEGAL ENFORCEMENT SYSTEM, KIND OF HE THREE-LAYER SYSTEM THAT BOD BOB LIGHTHIZER OUTLINED TO THE CONGRESS A FEW MONTHS AGO. IF THERE’S MISCONDUCT AGAIN AFTER THE DEAL IS SIGNED, THERE WILL BE A SYSTEM BY WHICH COMPANIES WHO ENGAGE IN INTELLECTUAL OR GOVERNMENT AGENCIES CAN BE PUNISHED AND THERE WILL BE NO RETALIATION FROM CHINA FOR THAT PUNISHMENT. THAT’S A BIG PART OF THE DEAL, MAKE IT LEGALLY BINDING. THAT’S THE PROBLEM IN HONG KONG, MARIA. THE BRITISH THOUGHT THEY HAD A TREATY WITH CHINA BACK IN 1984. THE CHINESE UNDER OBAMA A ANNOUNCED NO, THIS TREATY NO LONGER IS IN EFFECT. IT’S JUST A HISTORICAL DOCUMENT. NOBODY CALLED THEM ON IT. SO THAT’S KIND — SO IF THAT’S THE KIND OF THING THAT HAPPENS WITH THE TRADE TALKS IT MEANS WE’LL HAVE A PIECE OF PAPER THAT CAN’T BE ENFORCED AND PRESIDENT TRUMP WILL BE UNDER TREMENDOUS CRITICISM FROM THE RIGHT AND THE LEFT. WHAT I’VE BEEN TALKING ABOUT IS THE IDEA OF ESCALATION, MAYBE WE NEED TO DO MORE TO GET THE ATTENTION OF THE CHINESE. THEY’RE NOT FEELING THE PAIN YET. THIS IS SOMETHING THAT’S OBJECTIVE VERSUS SUBJECTIVE. OBJECTIVELY, YOU AND YOUR GUESTS CAN ALL TALK ABOUT OH, MY GOD, CHINA’S FEELING SUCH PAIN, LOOK AT THESE INDIES SEES. BUT FROM WHAT I HEAR FROM THE CHINESE, THIS IS NOTHING TO THEM AND THEY’RE TALKING NOW ABOUT GETTING READY FOR A 100 YEAR MARATHON. THEY’RE NOT FEELING ANY. PAIN. THERE ARE THINGS THE PRESIDENT CAN DO THAT WILL REALLY MAKE THEM FEEL PAIN. MARIA: THIS IS THE 70th ANNIVERSARY OF COMMUNIST CHINA COMING UP, OCTOBER 1. THERE’S HUAWEI PAIN. THE CHINESE TECHNOLOGY GIANT HUAWEI HAS FELT THE PAIN OF THE BAN. NOW IT’S ACCUSING THE U.S. OF COMMITTING CYBER ATTACKS AND COERCING EMPLOYEES TO GATHER INFORMATION ON THE COMPANY. WHEN YOU LOOK AT THE HUAWEI SITUATION, THAT HAS BEEN A REAL TIT-FOR-TAT AND PEOPLE FEEL THAT THAT BAN, THAT LIFT, THE BLACKLIST WAS ACTUALLY VERY IMPACTFUL.>>THE PRESIDENT’S ON THE RIGHT TRACK OBVIOUSLY WITH HUAWEI AND THE BLACKLIST OR THE ENTITY LIST. HOWEVER, HUAWEI IS ONE OF 100 GIANT CHINESE COMPANIES THAT ENGAGE IN THE SAME KIND OF WRONG-DOING. TO GET AFTER ALL 100 OF THEM, THERE’S A WAY TO DO THAT. MANY OF THEM ARE LISTED ON THE NEW YORK STOCK EXCHANGE AND THEY HAVE A WAIVER FROM THE S.E.C. THAT GOES BACK MANY YEARS. THEY DON’T HAVE TO UNDERGO AUDITING. CHINA SAYS OUR LARGE COMPANIES INTERNAL AFFAIRS ARE STATE SECRETS, WE’RE NOT GOING OF TO LET YOU AUDIT THEM. THIS IS SHOCKING FOR THE AVERAGE INVESTORS THAT SO MANY CHINESE COMPANIES ARE ON WALL STREET WITHOUT BEING AUDITED. A STROKE OF THE PEN AND THAT WAIVER WILL BE ENDED. THEN ALL THESE COMPANIES HAVE TO BE AUDITED. THERE WILL OBVIOUSLY BE TROUBLE FOUND IN THEIR BOOKS. YOU’RE TALKING ABOUT A LARGE SLIDE IN STOCK MARKET LISTING PRICES FOR CHINA. THIS IS ONE OF MANY THINGS THAT COULD BE DONE. THERE’S A SET OF STEPS THE PRESIDENT COULD TAKE. THE CHINESE ARE BETTING HE WILL NOT DO THIS. MARIA: THIS IS A REALLY IMPORTANT POINT THAT YOU’RE MAKING. IF THE PRESIDENT TAKES THAT EXTRA STEP TO TRY TO LOOK AT ZERO IN ON THOSE COMPANIES THAT ACTUALLY TRADE IN THE UNITED STATES OR EVEN PUT ANY LIMIT ON THE LISTINGS, CHINESE COMPANIES GOING PUBLIC IN THE NEW YORK STOCK EXCHANGE OR NASDAQ, THAT WOULD BE A BIG HIT TO CHINA.>>WE’VE TH WE’VE THEYE’VE THEY’VVE THEY’VEE .>EY’VEE .>>Y’VEE .>>TVEE .>>THEE .>>THEY’VE GOT TO MEET THE SAME ACCOUNTING STANDARDS. MARIA: YOU EXPECT YOU’RE A PUBLIC COMPANY, YOU HAVE TO MEET THE ACCOUNTING STANDARDS.>>SOME OF THESE COMPANIES, I THINK 11 OR 12 OF THEM, ARE STATE-OWNED ENTERPRISES. THE VERY SO-CALLED NATIONAL CHAMPIONS THAT HAVE BEEN DOING THE TECHNOLOGY THEFT. MARIA: THAT’S UNBELIEVABLE. HUAWEI, ISN’T HUAWEI ORIGINALLY NORTEST L NETWORKS. THE CRUX OF THEIR BUSINESS IS FROM NORTEL.>>THEY’RE TECHNOLOGY THIEVES FROM WAY BACK. THEY ALSO HAD HELP FROM THE GOVERNMENT, GETTING THEIR MARKET SHARE. THEY’RE THE NUMBER ONE TELECOMMUNICATIONS COMPANY IN THE WORLD. THE FOR THE ROR THE REASON FOR THAT IS HOW MUCH WE’VE HELPED THEM. MARIA: MY TAKE-AWAY IS THAT BEIJING KEEPS BREAKING THEIR PROMISES. THEY BROKE THEIR PROMISES TO HONG KONG AND THE WTO. WHY WOULDN’T THEY BREAK THEIR PROMISES TO THE UNITED STATES AND YOU’RE SAYING YEAH, THAT’S WHY THEY RENEGED BECAUSE THEY WOULDN’T AGREE TO THE ENFORCEMENT THE U.S. WANTED TO PUT IN PLACE.>>IT’S NOT OFFICIAL, MARIA. BUT THREE WHITE HOUSE SOURCES TOLD REUTERS THAT THE CHINESE RENEGING WAS REMOVING THE PARTS OF THE AGREEMENT THAT HAD TO DO WITH LEGALLY BINDING ENFORCEMENT. THAT’S THE CRUX OF THE MATTER. MARIA: UNBELIEVABLE GL YOU MARIA: UNBELIEVABLE.GL YOU>>YOU KNOW THE CHINESE DENY EVERYTHING. MARIA: THEY WON’T EVEN ADMIT IT. THE EXTRADITION BILL FORMALLY WITHDRAWN, YOU THINK IT’S GOOD NEWS. WHAT ELSE SHOULD WE LOOK AT IN TERMS OF THE NEXT CATALYST.>>THE NEXT CATALYST IS THE DELEGATION COMING OR NOT COMING TO WASHINGTON FOR ROUND 13 AND WHAT THEY BRING WITH THEM. IF THEY SAY OKAY, WE’LL LET SOME OF THE LEGALLY BINDING LANGUAGE GO BACK IN, THAT’S REALLY GOOD NEWS. MARIA: WE’LL LEAVE IT THERE.>>THE OTHER BIG NEWS IS WHETHER ESCALATION IS NEEDED OR NOT. MARIA: ESCALATION.>>THE PRESIDENT HAS A RANGE OF OPTIONS HE CAN CHOOSE FROM. HE COULD RAISE THE TARIFFS HIGHER. TARIFFS CAN GO TO 50% OR EVEN 100%. MARIA: THAT’S GOING TO IMPACT THE U.S. ECONOMY.>>YOU’RE TELLING ME. BUT DON’T FORGET THE PRESIDENT’S POINT. THIS SHOULD HAVE BEEN DONE 30 YEARS AGO. MARIA: MICHAEL, IT’S GREAT TO

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