Trade war brewing with China?

This transcript is automatically generated

As President Obama heads to Asia is America about to suffer a global trade war threat.

We just slap tariffs on Chinese solar panels China just -- one of our corporate icons McDonnell's.

Selling expired food and now some one here says if this doesn't stop.

This will start another depression.

How everybody and -- -- sunny and welcome to cash NN.

Flat passionate -- this week Wayne Rogers and Jonathan Hoenig Tracy Byrnes and John late build joining us -- -- as well democratic consultant.

Julian Epstein so welcome to everybody and Jonathan you know this region you're worried.

That a trade war between the US and China could lead to another recession even worse -- potential depression.

In this country right -- say that.

We'll share all these terrorists these taxes these quotas these subsidies I mean it's destructive economic force that were using against her own citizens.

Freedom means free trade and unless we're at war with a country that means that every individual every citizen if every company gets to decide who to trade with.

He decided within their own self interest you're not you know one only needs to look back to what Ben -- classic fares fewer performance to know what regulations and terrorists like Smoot -- back in 1930 can do to an economy they crush it and I'm -- that's the direction we're headed it.

You know when you can't deny what Jonathan saying here that China doesn't have very powerful economy but are they powerful enough.

To push this country into another recession.

Well I don't know whether it's a recession and not they are certainly powerful enough to do anything they want to it's a totalitarian government.

Listen Wal-Mart had 350 stores they have 350 stores in China.

China decided one -- Wal-Mart wasn't playing the game right so they just -- fifty not -- a southern province.

Usually there -- made some comments to the Chinese press if you can believe this.

About.

Has some changes that they've they thought the Chinese Government should make and it the government determined that that.

Undermined their control of inflation so they find do you believe 300000 dollars that if they can do that they can do any thing they want to do so it's -- to and by the white.

Are imbalance within his over 290 million dollar billion dollars a year was last year so but -- You weren't there -- yes Chilean president -- -- -- -- eminent Chinese on the bulk of US debt as a -- unproven facts at the same time.

The terrorists that we impose on them for these solar panels some are calling for 2030% we -- didn't get that.

Well it was only 3% and look I don't think there's any chance there will be a trade war because the -- two countries depend on each other's as much as they do -- is right the deficit.

Is about to ninety billion but.

The increase of US exports to China last couple years is increased by about 50%.

And look I think even if there were trade war the estimates are even if we have 50% tariffs the estimates are that would cost somewhere on the order of 60000 jobs.

That's a quarter of what we produce now on a month.

I think the point here is this the Jonathan's point.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But if I what I had to say they they finish the point -- greatly greatly greatly -- -- with respect -- the subsidies on solar panels now while some consumers may -- That cheating because we get solar panels per kilowatt hours at a less expensive right.

What the Chinese are trying to do was to corner the market here on solar panel production.

And what the Commerce Department is doing with a very modest 3.5 percent tariff is try to stop the Chinese from cornering the market -- that'll be bad for the US industry in the long term but we do.

So bad though they -- they get a hold on -- so bad -- that to be honest with you that's why there were calls for twenty to 30% on the -- because of what Julian.

-- pointing out here the power that the Chinese have economically over the United States has many concerned here on the business side.

That they've got too much power and that they're gonna bankrupt US companies OK but -- We import about last and we imported about 400 billion dollars with the stuff from China this.

That's who I -- stuck there.

Platinum buying anything -- -- in the toilet right now I just say that I agree with Julian and start a case like that kind of a -- could eat out more and you know what we.

Come out of the box a little braver and say.

You need -- and you like the way we're doing things goes somewhere else noticed -- to.

Do business in China we are certainly not forced him -- comply with their rules -- do I don't.

The work -- they're -- filled because of brightly I mean and every major American business has huge operations and China I mean whether or not we like them.

Is this relationship -- her set.

Yes it's definitely here to say what -- talk about not having a trade war I agree with completed I don't think this is gonna happen what happened with the Smoot Hawley -- the reverend may nineteenth warning not a 1028 economists went to president Hoover and begged him not to sign this -- -- You had -- signed in 1930 unemployment went from seven point 8% to 25 point 1% in three years.

We simply can't afford to do something like that.

I don't think that's gonna happen this is a mutual relationship they are cheating there is no doubt about that but there is very little we can do about that except for a few little small -- what we're talking about -- -- on -- And I haven't you're saying that we needed tread carefully I mean that's fair.

We need economic freedom -- what China's doing should be none of our -- our country if we believe in freedom we believe an economic freedom and China's powerful only because they've moved a slight bit towards economic freedom and less Becker's still have our own country is going in just the other way so the fact that they're playing subsidies -- -- -- doesn't mean that we should engage in that that's a destructive economic war not against -- it's against our own citizens.

Who -- able to -- all -- this stuff for cheap prices why why make him the victims.

You know I tell you what you -- if you look at the overall relationship with China and again it is a huge relationship.

There's a lot of frustration on the business side here in the United States with regards to.

Stealing.

Whether it's that the -- patents.

Whether it's undercutting the subsidies the -- everything and that's not that's not changing that's why I think the war were comes here when it comes to trade.

And I think that's -- I think that's the weakness of Jonathan's argument -- consumers benefit in the long term but our businesses get in the short term but their businesses get hurt and the long term.

And this is a question of just not being played for a fool when the Chinese don't cheat and making sure that we stand up and say that we're gonna just under president now that the Chinese actually -- -- -- Because now because.

-- -- were able to expand production -- the whole -- all those low level jobs they're -- being done in China now we're now able to use those proceeds and create new jobs better -- -- mean you really want everyone working -- the assembly -- like in China right -- and -- I'm -- we're certainly -- -- -- well let me -- you were trapped -- there -- I think that's -- -- we're in the case of the solar panels for example five years from -- -- -- continue with the amount of the solar -- subsidies that they're providing.

Our industry will be out of business that is a growing.

Other analysts -- cities what about the cameras this country is -- usually you don't we have a we have to -- home Friday they government force.

You're comparing apples and orange you have some loan guarantees that come out of the federal government is nothing on the order of what the Chinese are doing not even close -- -- not even close and it's a growing international market if you wanna see that market to the Chinese.

I just think most people would disagree with you it's like the Boeing case -- case -- -- It where does meet its not just -- you want fifteen if every taxpayer who sees all these solar incentives flexed their money down the drain it's a very very short term point of view Jim.

I look back look at the voice liberals -- probably had yet Airbus being subsidized by the EU -- is absolutely unfair competition you have China Vista be a subsidized.

But you look at what's happened here as well we have -- post -- begins subsidize dividend that did did did -- detriment.

-- UPS and FedEx we have GMB and subsidized to the -- metaphor I mean we have politicians right now arguing over etch a sketches.

Heading Dick Durbin and invested NFL nothing's going to be done it would isn't our trade imbalance.

This is going to be a -- that's gonna go on and on and on but.

Watch Live

Trade war brewing with China?

Details

Clips

Latest News

Franklin Graham: How the IRS targeted my religious charities

The IRS, pleading the 5th, passing the buck and Obama

Sen. Rand Paul: Obama's speech is a 'misdirection campaign'

Is the administration mastering the art of evasiveness?

Which scandal is most dangerous for administration?

What happens if new jury does not reach a verdict?

Belmar community reopens after Sandy

Jodi Arias jury deadlocks on sentence

President comments on what happened in Benghazi

Prostitution ring busted

Hollywood Nation: Paris plotting a comeback?

Reaction to DOJ investigation targeting FNC's James Rosen

Transcript

Recommended