From pandas to fentanyl, learn how the US-China relationship has evolved over time

Hinzugefügt: 2026-05-13

[00:00:04]♪♪ >> John: AS WE TOLD YOU AT THE TOP OF THE PROGRAM PRESIDENT TRUMP IS ON HIS WAY TO CHINA TO MEET WITH XI.

[00:00:20]BRET BAIER IS THERE TO COVER IT.

[00:00:25]BEFORE LEAVING, IT WAS SAID TRADE WOULD BE THE NUMBER ONE TOPIC.

[00:00:30]LET'S TAKE A LOOK AT THE RELATIONSHIP.

[00:00:32]>> AS TRUMP PREPARES TO HEAD TO CHINA FOR THE FIRST TIME SINCE 2017, WE WILL TAKE SOME TIME THIS WEEK TO LOOK AT THE RELATIONSHIP BETWEEN WASHINGTON AND BEIJING.

[00:00:42]TONIGHT WE BEGIN WITH U.S.-CHINA TRADE RELATIONS.

[00:00:46]♪♪ >> IN CHINA, ANCIENT TRADITION MEETS RAPID MODERNIZATION.

[00:00:54]>> Bret: DESPITE ITS ADVANCEMENTS IN TECHNOLOGY, MILITARY STRENGTH AND MORE THAN 3,500-YEAR HISTORY -- THERE ARE SO MANY STORY LINES BETWEEN THE U.S. AND CHINA.

[00:01:04]WHAT'S THE BIGGEST THAT STICKS OUT, IN YOUR MIND, AS WE PREPARE FOR THIS TRIP WITH THE PRESIDENT AND CHINA?

[00:01:11]>> TRADE STICKS OUT AS IMPORTANT BECAUSE IT ENCOMPASSES A LOT OF ISSUES INCLUDING TECHNOLOGY.

[00:01:16]BUT IN GENERAL THERE IS A DISAGREEMENT BETWEEN CHINA AND THE UNITED STATES ABOUT THE WAY THE WORLD SHOULD WORK.

[00:01:23]AND WE'RE SEEING A FIGHT FOR DOMINANCE.

[00:01:25]>> Bret: CHINA'S HISTORY WITH THE U.S. BEGAN MORE THAN 240 YEARS AGO THROUGH TRADE.

[00:01:29]THE COUNTRIES FORMALIZED RELATIONS IN 1844.

[00:01:33]>> GENERATIONS, AND THE YEARS AHEAD, WILL LOOK BACK THANK US FOR THIS MEETING THAT WEAVER HELD IN THIS PAST WEEK.

[00:01:41]>> Bret: AFTER MORE THAN TWO DECADES WITH SEVERED TIES WITH CHINA'S COMMUNIST GOVERNMENT RICHARD NIXON AND KISSINGER LAID THE GROUNDWORK FOR RESTORING RELATIONS WITH BEIJING IN.

[00:01:55]1972 NIXON WOULD SPEND EIGHT DAYS IN CHINA IMPROVING RELATIONS, RENEWING COOPERATION AND LEADING TO CHINESE PANDA BEARS COMING TO THE UNITED STATES.

[00:02:06]>> I THINK PANDEMONIUM WILL BREAK OUT.

[00:02:09]>> Bret: IMPLEMENTING EXPANSIVE ECONOMIC REFORMS.

[00:02:15]ES ECONOMIC SPECIAL ATTRACTED BUSINESSES FROM AROUND THE WORLD.

[00:02:18]COMPANIES RECEIVED LOWER TAX RATES, SIMPLIFIED TRADE PROCEDURES AND IMPROVED INFRASTRUCTURE.

[00:02:24]IT ALSO ORDERED A CHEAP LABOR FORCE.

[00:02:26]>> WHEN THEY WERE GRANTED MOST FAVORITE NATION STATUS, SINCE THAT TIME THEY HAVE SUBSIDIZED, THEY HAVE STOLEN TECHNOLOGIES, THEY HAVE REALLY VIOLATED ALL THOSE PREMISES.

[00:02:36]>> Bret: THE U.S. SAW A TRADE SURPLUS AT THE BEGINNING OF THE RENEWED RELATIONSHIP BUT OVER THE NEXT DECADE THE SCALES WOULD SHIFT AS CHINA RECORDED A 10.4 BILLION TRADE SURPLUS WHICH WOULD CONTINUE TO RISE TO HUNDREDS OF BILLIONS OVER THE NEXT 30 YEARS.

[00:02:51]>> THIS VISIT BY THE PRESIDENT TO BEIJING, COMING UP, IT'S PRETTY IMPORTANT.

[00:02:59]WHAT WOULD YOU LOOK, AS DELIVERABLE OR DELIVERABLES OUT OF THE MEETING?

[00:03:02]>> WE NEED A REBALANCING OF THE ECONOMY.

[00:03:05]CHINA HAS A TRADE SURPLUS.

[00:03:08]OUR TRADE DEFICIT IS TILT TOO LARGE.

[00:03:11]>> Bret: AFTER CHINA ENTERED THE WORLD TRADE ORGANIZATION IN 2001 JOB LOSSES BEGAN TO STACK UP IN THE U.S.

[00:03:16]THE NATIONAL BUREAU OF ECONOMIC RESEARCH ESTIMATES BETWEEN 1999 AND 2011, AROUND 2.4 MILLION JOB LOSSES STEMMED FROM A RISE IN IMPORT COMPETITION FROM BEIJING.

[00:03:30]INCLUDING ONE MILLION MANUFACTURING JOBS.

[00:03:31]CHINA'S GROWTH ALSO CAME AT A TIME OF INCREASED PRODUCTIVITY AND TECHNOLOGICAL ADVANCES AROUND THE WORLD LEADING TO ADDITIONAL JOB LOSSES.

[00:03:39]>> WE NEED TO BE BRINGING KEY MANUFACTURING BACK HERE AND THEY NEED TO STOP THE DUMPING, STOP SUBSIDIZING THEIR EXPORTERS, AND HAVE A REAL FAIR ECONOMY.

[00:03:49]THEY ARE NOT PLAYING FAIR.

[00:03:50]>> Bret: BETWEEN 1992 AND 2025, THE TOP U.S. TRADE PARTNERS HAVE BEEN CANADA, MEXICO, JAPAN, AND CHINA.

[00:03:58]IN 2000 THE U.S. IMPORTED MORE THAN $100 BILLION WORTH OF CHINESE GOODS, FOURTH MOST AMONG THE TOP TRADING PARTNERS.

[00:04:06]OVER THE NEXT SEVEN YEARS THE VALUE OF IMPORTS FROM CHINA WOULD MORE THAN TRIPLE.

[00:04:11]MAKING CHINA THE U.S.'S NUMBER ONE PARTNER FOR IMPORTS.

[00:04:15]BETWEEN 2009 AND 2022, CHINA WOULD HOLD THAT TOP SPOT WITH THE U.S. BUYING AS MUCH AS $538 BILLION IN GOODS IN A SINGLE YEAR.

[00:04:25]IMPORTS AND THE U.S. TRADE DEFICIT HAVE FALLEN.

[00:04:28]CHINA'S SURPLUS WAS $202 BILLION IN 2025.

[00:04:32]THE LOWEST SINCE 2004.

[00:04:34]>> PRESIDENT TRUMP IS IN BEIJING AND SO ARE WE.

[00:04:36]>> Bret: TRADE WAS A MAIN FOCUS OF PRESIDENT DONALD TRUMP'S 2017 TRIP TO BEIJING.

[00:04:41]>> President Trump: WE'LL MAKE IT FAIR AND IT WILL BE TREMENDOUS FOR BOTH OF US.

[00:04:46]>> Bret: THE TWO SIDES STRUGGLED TO FIND AGREEMENT AND IN THE FOLLOWING YEAR THE PRESIDENT IMPOSED TARIFFS ON CHINESE GOODS LEADING TO SEVERAL ROUNDS OF RETALIATION FROM CHINA.

[00:04:55]THE CARONA VIRUS PANDEMIC CAUSED FURTHER FRICTION.

[00:04:58]>> President Trump: WE'RE DOING VERY SERIOUS INVESTIGATIONS AS YOU PROBABLY KNOW, AND WE'RE NOT HAPPY WITH CHINA.

[00:05:05]THE TUMULTUOUS RELATIONSHIP HAS BEEN AFFECTED BY BIG THINGS.

[00:05:08]COVID.

[00:05:10]HUMAN RIGHTS.

[00:05:11]THE FENTANYL EPIDEMIC.

[00:05:12]THERE ARE A LOT OF TENTACLES HERE.

[00:05:15]>> THE CHINESE SEE THE SUMMIT AS A WAY TO BOLSTER XI JINPING'S FLAGGING CREDIBILITY AT HOME.

[00:05:23]HE'S FACING BIG ECONOMIC PROBLEMS.

[00:05:25]PRESIDENT TRUMP, ON THE OTHER HAND, IS VERY TRANSACTIONAL.

[00:05:27]HE'S LOOKING FOR A DEAL.

[00:05:28]HE WANTS A STABLE RELATIONSHIP.

[00:05:32]I DON'T THINK THE PRESIDENT FULLY UNDERSTANDS THE IDEOLOGICAL NATURE OF HIS ADVERSARY, XI.

[00:05:38]>> Bret: IN HIS SECOND TERM HE IMPOSED FENTANYL -- FAILING TO STEM THE FLOW OF COMINGCALS USED TO MAKE THE DRUG WHICH HAS HELPED TO MAKE THE PRODUCTION IN MEXICO.

[00:05:50]>> President Trump: CHINA WHAT THEY ARE DOING WITH FENTANYL IS A TERRIBLE THING.

[00:05:54]>> Bret: IT'S THE PRIMARY SOURCE OF FENTANYL INTO THE UNITED STATES BUT BECAUSE IT'S NOT WIDELY USED IN CHINA AUTHORITIES HAVE PLACED LITTLE EMPHASIS ON PATROLLING ITS EXPORT.

[00:06:07]THE PHARMACEUTICAL INDUSTRIES ARE WEAKLY REGULATED AND POOR LIMON TOWARD ALLOWING COMPANIES TO TAKE ADVANTAGE OF THE MARKET.

[00:06:14]>> President Trump: THEY NEVER CHARGE ANYBODY ANYTHING BUT NOW WE'RE GOING TO CHARGE.

[00:06:18]>> Bret: TRUMP ADDED RECIPROCAL TARIFFS AFTER SEVERAL ROUNDS OF RETALIATION TARIFFS FOR BOTH COUNTRIES ROSE 125% S. THERE HOPE IN NEGOTIATIONS THAT SEEM TO HAVE DRAGGED ON, GORDON, FOR YEARS AND YEARS.

[00:06:34]>> GORDON: I THINK THERE IS HOPE BECAUSE PRESIDENT TRUMP WANTS A DEAL AND WE KNOW THE CHINESE NEED A DEAL.

[00:06:39]THEY ARE EXTRAORDINARILY TRADE DEPENDENT RIGHT NOW.

[00:06:41]THEIR ONLY HOPE FOR GROWTH IS TO SELL MORE ABROAD, AND AMERICANS ACCOUNT FOR SOMETHING LIKE 33 TO 34% OF GLOBAL CONSUMPTION.

[00:06:50]>> BOTH COUNTRIES EVENTUALLY LOWERED TARIFF RATES AMID NEGOTIATIONS.

[00:06:54]A SUPREME COURT RULING DETERMINED PRESIDENT TRUMP DID NOT HAVE THE AUTHORITY TO IMPOSE THE EMERGENCY ACTIONS.

[00:07:01]>> COULD THEY CREATE SOMETHING WHERE YOU PICK $30 BILLION OF GOODS, WE'LL PICK $30 BILLION OF GOODS, AND WE DE-ESCALATE THOSE THINGS?

[00:07:11], YOU KNOW, LIKE SOME SORT OF AGREEMENT LIKE THAT?

[00:07:14]>> THIS IS NOT AN ISSUE BY ISSUE DISPUTE.

[00:07:18]THE RESOLUTION MECHANISM.

[00:07:19]BUT HOW DO YOU MANAGE THE OVERALL BALANCE OF TRADE?

[00:07:23]THE OVERALL QUANTUM OF THE TRADE DEFICIT, WHICH CURRENTLY CHINA STILL ENJOYS WITH THE UNITED STATES, ALTHOUGH IT'S BEEN COMING DOWN IN RECENT TIMES.

[00:07:30]BUT IT'S ABOUT EXACTLY WHAT YOU SAY.

[00:07:33]CAN WE IDENTIFY, GIVEN PRODUCT AREAS, GIVEN SERVICE AREAS, PARTICULARLY THOSE WHICH HAVE GOT A LOT OF NUMBERS AND ZEROS ATTACHED TO THEM TO BRING ABOUT A BETTER BALANCE IN THE TRADE?

[00:07:42]>> Bret: AHEAD OF THIS WEEK'S SUMMIT THE TRADE ISSUE WILL LIKELY BE CENTRAL ONCE AGAIN.

[00:07:46]CHINA IS EXPECTED TO SEEK AREAS OF COOPERATION, AND REQUEST PRESIDENT TRUMP TO LOOSEN CONTROLS ON SEMICONDUCTORS AND ARTIFICIAL INTELLIGENCE.

[00:07:55]THIS WEEK IN OUR SERIE