1 00:00:04,760 --> 00:00:08,840 Speaker 1: On this episode of The Newsworld. From his earliest beginnings 2 00:00:08,880 --> 00:00:12,799 Speaker 1: as a dishwasher in a Chinese restaurant to his work 3 00:00:12,920 --> 00:00:18,040 Speaker 1: in international law and finance, Mitchell Silk's story illustrates how 4 00:00:18,120 --> 00:00:22,800 Speaker 1: perseverance and divine providence led him become the first Hasidic 5 00:00:22,880 --> 00:00:26,079 Speaker 1: Jew ever confirmed by the Senate for a position in 6 00:00:26,079 --> 00:00:30,280 Speaker 1: the US federal government and a consequential leader in Trump's Treasury. 7 00:00:31,040 --> 00:00:34,440 Speaker 1: In his new book, A Seat at the Table, An 8 00:00:34,440 --> 00:00:39,000 Speaker 1: Inside Account of Trump's Global Economic Revolution, he describes his 9 00:00:39,159 --> 00:00:42,199 Speaker 1: role as Assistant Sector of the Treasury, in which he 10 00:00:42,240 --> 00:00:45,640 Speaker 1: played a senior role in the trade negotiations with China, 11 00:00:46,440 --> 00:00:51,279 Speaker 1: designed and implemented both the landmark America Crees Initiative and 12 00:00:51,840 --> 00:00:55,360 Speaker 1: the first Trump administration's signature program in the Western Hemisphere 13 00:00:55,720 --> 00:01:00,520 Speaker 1: that spurred infrastructure growth through private capital solutions in Latin 14 00:01:00,520 --> 00:01:04,039 Speaker 1: America and beyond. I'm really pleased to welcome my guest, 15 00:01:04,160 --> 00:01:07,880 Speaker 1: Mitchell So. He's a graduate of Georgetown University and the 16 00:01:07,959 --> 00:01:11,160 Speaker 1: University of Maryland Law School. He is fluent in Mandarin 17 00:01:11,160 --> 00:01:14,800 Speaker 1: and Cantonese and actively engages in pro bono work within 18 00:01:14,840 --> 00:01:18,800 Speaker 1: the Jewish community. He currently serves as Group General counsel 19 00:01:19,200 --> 00:01:35,480 Speaker 1: of Waterton Global Resources and the cedar Field Group. Mitchell, 20 00:01:35,560 --> 00:01:37,160 Speaker 1: welcome and thank you for joining me. 21 00:01:37,880 --> 00:01:40,400 Speaker 2: Thank you so much for having me, mister speaker, and 22 00:01:40,959 --> 00:01:43,120 Speaker 2: thank you for all you've done for a great country. 23 00:01:43,720 --> 00:01:46,720 Speaker 1: You know you've had a remarkable career. Tell me for 24 00:01:46,720 --> 00:01:50,920 Speaker 1: a complements, just how did you evolve to the person 25 00:01:51,000 --> 00:01:51,840 Speaker 1: who became. 26 00:01:52,280 --> 00:01:54,280 Speaker 2: I'll give you two angles. One of them is my 27 00:01:54,600 --> 00:01:59,320 Speaker 2: maternal grandfather, somebody who came to this country from Europe 28 00:01:59,360 --> 00:02:02,080 Speaker 2: in nineteen twenty from a small village in what is 29 00:02:02,120 --> 00:02:05,640 Speaker 2: now western Ukraine. In my view, he was the greatest 30 00:02:05,920 --> 00:02:09,000 Speaker 2: man in the world. I write about him extensively in 31 00:02:09,040 --> 00:02:12,959 Speaker 2: the book, and he was a person who stood five 32 00:02:13,000 --> 00:02:15,760 Speaker 2: foot two in physical stature, but in my view he 33 00:02:15,800 --> 00:02:18,880 Speaker 2: was the tallest person in the world. So to frame 34 00:02:19,360 --> 00:02:22,120 Speaker 2: my first part of my response, I would say that 35 00:02:22,360 --> 00:02:24,919 Speaker 2: I am where I am because of his great influence 36 00:02:24,960 --> 00:02:28,040 Speaker 2: on me. But the rest of the story is really 37 00:02:28,080 --> 00:02:31,720 Speaker 2: one that I can only explain through providence. Some people 38 00:02:31,800 --> 00:02:35,760 Speaker 2: might call it fluke, but I'm firmly convinced that it's providence, 39 00:02:35,800 --> 00:02:40,040 Speaker 2: and I see the good hand in every stage of 40 00:02:40,080 --> 00:02:44,240 Speaker 2: the development in my career, and that career very interestingly, 41 00:02:44,360 --> 00:02:48,640 Speaker 2: started out in the kitchen of a Chinese restaurant. I 42 00:02:48,720 --> 00:02:51,239 Speaker 2: had to go out when I was in my early 43 00:02:51,280 --> 00:02:55,760 Speaker 2: tomdish teens to work to help our families' finances because 44 00:02:55,760 --> 00:02:59,680 Speaker 2: of our circumstances. I got a job washing dishes and 45 00:02:59,760 --> 00:03:04,359 Speaker 2: do prep work in the kitchen, and very interestingly, that 46 00:03:04,480 --> 00:03:08,120 Speaker 2: job really was a defining point in my whole professional career. 47 00:03:08,200 --> 00:03:11,080 Speaker 2: That job led to working in the front of the 48 00:03:11,120 --> 00:03:15,040 Speaker 2: house as a waiter, then went on to formal Chinese studies. 49 00:03:15,080 --> 00:03:18,320 Speaker 2: I had gotten Cantonese under the belt in the restaurant 50 00:03:18,360 --> 00:03:22,480 Speaker 2: and then studied Mandarin in college. The Chinese studies in 51 00:03:22,520 --> 00:03:25,280 Speaker 2: college led me to pursue a career in Chinese law. 52 00:03:25,919 --> 00:03:28,440 Speaker 2: The Chinese law led me out to Asia to work 53 00:03:28,480 --> 00:03:31,480 Speaker 2: for a firm that was expanding their energy offering, and 54 00:03:31,560 --> 00:03:35,360 Speaker 2: so I became an expert in power development and finance. 55 00:03:36,040 --> 00:03:40,400 Speaker 2: And it was the combination of my expertise in China 56 00:03:40,800 --> 00:03:44,760 Speaker 2: and infrastructure finance that drew me to the attention of 57 00:03:44,760 --> 00:03:47,360 Speaker 2: the senior leadership at Treasury and why I was offered 58 00:03:47,400 --> 00:03:51,400 Speaker 2: a position under Secretary Manuchent. So that's basically the long 59 00:03:51,480 --> 00:03:54,200 Speaker 2: and short of it, mister speaker. It all started in 60 00:03:54,240 --> 00:03:56,240 Speaker 2: the kitchen of a Chinese restaurant. 61 00:03:56,360 --> 00:04:00,360 Speaker 1: That's a great story for young people to hear because 62 00:04:00,360 --> 00:04:03,960 Speaker 1: you don't always know how each step leads to the 63 00:04:04,000 --> 00:04:07,960 Speaker 1: next step, and so it's important to just take every 64 00:04:07,960 --> 00:04:11,320 Speaker 1: advantage you can when an opportunity shows up and your 65 00:04:11,360 --> 00:04:13,560 Speaker 1: life sort of illustrates that. You know, you could not 66 00:04:13,640 --> 00:04:17,480 Speaker 1: have planned how your life unfolded, but by working hard 67 00:04:17,839 --> 00:04:22,400 Speaker 1: and being adaptable, interesting things happen, absolutely right. 68 00:04:22,480 --> 00:04:26,000 Speaker 2: And that's one of the thematic messages basic messages in 69 00:04:26,040 --> 00:04:28,919 Speaker 2: the book. I have my little four p's that I 70 00:04:29,000 --> 00:04:34,080 Speaker 2: talk about perseverance, progress over perfection, personal touch, and divine providence. 71 00:04:34,200 --> 00:04:37,400 Speaker 2: And without the hard work, I found that nothing really 72 00:04:37,440 --> 00:04:39,040 Speaker 2: happens well in. 73 00:04:38,920 --> 00:04:41,920 Speaker 1: A period of extraordinary change right now. And love to 74 00:04:41,960 --> 00:04:44,880 Speaker 1: get your view because you have been in the room 75 00:04:45,240 --> 00:04:48,719 Speaker 1: and you know how these things work. Treasury Secretary Scott 76 00:04:48,720 --> 00:04:52,000 Speaker 1: Besseam said that he thinks they have a framework for 77 00:04:52,040 --> 00:04:55,080 Speaker 1: a TikTok deal that will allow the app to continue 78 00:04:55,080 --> 00:04:58,400 Speaker 1: in the US. I haven't released what the framework might be, 79 00:04:58,960 --> 00:05:02,760 Speaker 1: but I think it's possible to develop a framework that 80 00:05:02,920 --> 00:05:07,280 Speaker 1: basically guarantees that the Chinese do not have access to 81 00:05:07,320 --> 00:05:09,960 Speaker 1: the people who are on TikTok and that it does 82 00:05:10,000 --> 00:05:13,360 Speaker 1: not become essentially a Chinese propaganda system. 83 00:05:13,720 --> 00:05:16,240 Speaker 2: There is, mister speaker, and I think you'll be aware 84 00:05:16,320 --> 00:05:19,920 Speaker 2: that the TikTok case was under heavy review and there 85 00:05:20,000 --> 00:05:22,680 Speaker 2: was a tremendous amount of work done on it under 86 00:05:22,760 --> 00:05:26,719 Speaker 2: Secretary Mnuchin during Trump forty five. One of my best 87 00:05:26,720 --> 00:05:30,880 Speaker 2: buddies in the building, Tommy Fedow, decorated naval officer, was 88 00:05:31,120 --> 00:05:35,240 Speaker 2: then serving as the first Assistant Secretary for Investment Security, 89 00:05:35,839 --> 00:05:38,159 Speaker 2: and he and the Secretary all the way up to 90 00:05:38,240 --> 00:05:42,960 Speaker 2: POTUS were heavily focused and actually had come to some 91 00:05:43,200 --> 00:05:46,919 Speaker 2: solutions that were put forward and in the process of 92 00:05:46,960 --> 00:05:52,840 Speaker 2: implementation when the administration finished up. Unfortunately, that framework did 93 00:05:52,880 --> 00:05:56,880 Speaker 2: not move forward. Matters muddled through during the whole of 94 00:05:56,920 --> 00:05:59,920 Speaker 2: the Biden administration on this issue, as most to three 95 00:06:00,080 --> 00:06:03,760 Speaker 2: shoes did. And here we are back in twenty twenty 96 00:06:03,800 --> 00:06:06,520 Speaker 2: five dealing with the same issue. And to be very 97 00:06:06,560 --> 00:06:11,920 Speaker 2: specific on the response, there are some very very very 98 00:06:11,960 --> 00:06:18,520 Speaker 2: fundamental requirements or pieces of a framework that we would 99 00:06:18,600 --> 00:06:24,919 Speaker 2: require in order to ensure that TikTok's continued operation touching 100 00:06:24,960 --> 00:06:28,479 Speaker 2: on the US would not be harmful to us. We 101 00:06:28,480 --> 00:06:31,240 Speaker 2: would need to control the algorithm. There need to be 102 00:06:31,320 --> 00:06:34,839 Speaker 2: some element of algorithm control. There need to be a 103 00:06:34,880 --> 00:06:38,720 Speaker 2: way to deal with the risk of data access and flows, 104 00:06:39,360 --> 00:06:43,400 Speaker 2: and thirdly of foreign ownership and control paths. And those 105 00:06:43,400 --> 00:06:48,240 Speaker 2: are really the three fundamental framework hardlocks that would be required, 106 00:06:48,960 --> 00:06:55,080 Speaker 2: along with an enforceable, auditable structure that would ensure that 107 00:06:55,279 --> 00:06:59,760 Speaker 2: TikTok's continued operation would not be harmful to the US. 108 00:07:00,120 --> 00:07:03,680 Speaker 2: Without that, there's a problem. There's a very big problem. 109 00:07:04,000 --> 00:07:08,240 Speaker 2: And it's my understanding that the Secretary has spent time 110 00:07:08,279 --> 00:07:12,880 Speaker 2: on this Secretary Pasant in Madrid this week working toward 111 00:07:13,160 --> 00:07:16,920 Speaker 2: chipping away at an agreement that would ensure these three 112 00:07:17,000 --> 00:07:21,360 Speaker 2: fundamental pillars along with an enforceability mechanism. 113 00:07:21,840 --> 00:07:26,160 Speaker 1: Since you speak both Mandarin and Cantonese, which I think 114 00:07:26,200 --> 00:07:30,000 Speaker 1: is a pretty remarkable achievement. As you think about China 115 00:07:30,120 --> 00:07:33,920 Speaker 1: from your much more intimate perspective than most of us have, 116 00:07:34,680 --> 00:07:39,640 Speaker 1: what's your whole take on what Jijiinpang's goals are and 117 00:07:39,720 --> 00:07:43,119 Speaker 1: what we should be thinking about as we look at China. 118 00:07:43,440 --> 00:07:46,160 Speaker 2: I spent thirty years of my career, mister Speaker, working 119 00:07:46,280 --> 00:07:49,880 Speaker 2: in China, and the perspective that I had during that 120 00:07:50,040 --> 00:07:53,480 Speaker 2: time was representing foreign investors and trying to pursue their 121 00:07:53,520 --> 00:07:58,240 Speaker 2: interest on a rather micro and project basis. And it 122 00:07:58,360 --> 00:08:01,840 Speaker 2: wasn't until I came to try meury and inherited the 123 00:08:01,840 --> 00:08:05,640 Speaker 2: portfolio that I did that I came to appreciate the 124 00:08:05,680 --> 00:08:10,520 Speaker 2: great challenges with the Chinese approach to growth. When the 125 00:08:10,600 --> 00:08:13,680 Speaker 2: last administration came into office, we were confronted with a 126 00:08:13,720 --> 00:08:18,200 Speaker 2: bunch of really big issues. We stepped into a massively 127 00:08:18,280 --> 00:08:23,440 Speaker 2: large trade deficit, IP theft and weaponized cyber were rampant. 128 00:08:24,280 --> 00:08:28,200 Speaker 2: Industrial policy was not friendly to us, and through the 129 00:08:28,240 --> 00:08:32,520 Speaker 2: Belton Road initiative, we were seeing the Chinese engage in 130 00:08:32,640 --> 00:08:37,760 Speaker 2: some very very considerable predatory practices, mainly in the kind 131 00:08:37,800 --> 00:08:42,520 Speaker 2: of developing countries emerging nations. And none of that is 132 00:08:42,640 --> 00:08:45,640 Speaker 2: good for the US. None of that is good for 133 00:08:45,760 --> 00:08:50,520 Speaker 2: the world. And a lot of the approach is overt 134 00:08:51,480 --> 00:08:54,000 Speaker 2: and a lot of it is I don't necessarily want 135 00:08:54,000 --> 00:08:57,000 Speaker 2: to use word cofort, but it's creeping. It's done in 136 00:08:57,040 --> 00:09:00,600 Speaker 2: a manner that people don't necessarily notice it. And so 137 00:09:00,679 --> 00:09:04,280 Speaker 2: these development practices and these growth practices are not good 138 00:09:05,000 --> 00:09:07,520 Speaker 2: and we need to stop them. And I think that's 139 00:09:07,559 --> 00:09:11,800 Speaker 2: what the President's agenda on China is all about. It's 140 00:09:11,840 --> 00:09:16,079 Speaker 2: to not be complacent and to confront the issues. And 141 00:09:16,120 --> 00:09:19,839 Speaker 2: that's what we saw as a key driver and an 142 00:09:19,920 --> 00:09:24,400 Speaker 2: underpinning of our negotiations during Trump forty five, and I 143 00:09:24,520 --> 00:09:28,120 Speaker 2: expect that that is the thrust of the formulation of 144 00:09:28,160 --> 00:09:31,000 Speaker 2: our negotiating positions during Trump forty seven. 145 00:09:48,520 --> 00:09:52,360 Speaker 1: The sad point of an everyday American, how big a 146 00:09:52,440 --> 00:09:56,480 Speaker 1: dealer is trying to work out an agreement with China, 147 00:09:56,679 --> 00:10:00,240 Speaker 1: And your judgment, is it likely that we can get 148 00:10:00,240 --> 00:10:04,400 Speaker 1: a deal that is truly acceptable the US accepted by 149 00:10:04,440 --> 00:10:07,959 Speaker 1: its autolitarian dictatorship. I think it is, sir. 150 00:10:08,559 --> 00:10:12,160 Speaker 2: We certainly did deliver a deal that was good during 151 00:10:12,200 --> 00:10:15,720 Speaker 2: Trump forty five that unfortunately was disrupted by the impact 152 00:10:15,800 --> 00:10:19,760 Speaker 2: of COVID and failure to continue to push on the 153 00:10:19,800 --> 00:10:23,240 Speaker 2: agreement that we had settled during the last administration. But 154 00:10:23,880 --> 00:10:30,440 Speaker 2: our folks formulated a policy and formulated a negotiating position 155 00:10:31,320 --> 00:10:35,199 Speaker 2: that was meant to deal with the issues that presented 156 00:10:35,240 --> 00:10:40,400 Speaker 2: themselves during Trump forty five, massive trade and balance IP issues, 157 00:10:40,520 --> 00:10:45,839 Speaker 2: weaponized cyber not friendly industrial policy, and we had a playbook. 158 00:10:46,679 --> 00:10:50,800 Speaker 2: Perhaps we were not taken seriously the first time that 159 00:10:50,840 --> 00:10:54,400 Speaker 2: we got into the room but we stood by that 160 00:10:54,520 --> 00:10:59,240 Speaker 2: playbook meeting after meeting after meeting after meeting, and we 161 00:10:59,360 --> 00:11:04,840 Speaker 2: keptishing our position until the Chinese understood clearly that we 162 00:11:04,920 --> 00:11:09,800 Speaker 2: meant business. And so by staying the course with maximum 163 00:11:09,800 --> 00:11:13,439 Speaker 2: pressure until we see concessions, which was the case during 164 00:11:13,480 --> 00:11:17,160 Speaker 2: Trump forty five, namely through the tariffs, and by staying 165 00:11:17,160 --> 00:11:21,280 Speaker 2: the course with our negotiating positions, namely our clarity of 166 00:11:21,320 --> 00:11:25,440 Speaker 2: red lines and sticking to settled concrete goals, we were 167 00:11:25,480 --> 00:11:28,120 Speaker 2: able to bring back an agreement, and I expect that 168 00:11:28,120 --> 00:11:32,520 Speaker 2: that will be the approach now. There are some added challenges, 169 00:11:32,800 --> 00:11:37,080 Speaker 2: kind of changes in negotiating leverage, particularly referring to the 170 00:11:37,200 --> 00:11:42,080 Speaker 2: Chinese position on critical minerals and on semiconductors, but again 171 00:11:42,720 --> 00:11:46,480 Speaker 2: by staying the course with firm negotiating positions, we will 172 00:11:46,520 --> 00:11:50,480 Speaker 2: get there. Now, we've not seen a lot of concrete 173 00:11:50,559 --> 00:11:54,520 Speaker 2: results out of the engagement with China thus far, and 174 00:11:54,960 --> 00:11:57,480 Speaker 2: my view on that is that, and I've kind of 175 00:11:57,520 --> 00:12:00,400 Speaker 2: referred to this as three dimensional chests that the resident 176 00:12:00,559 --> 00:12:03,760 Speaker 2: is playing, I think that the approach that we've seen 177 00:12:04,360 --> 00:12:07,679 Speaker 2: since day one of Trump forty seven has been extraordinarily 178 00:12:07,720 --> 00:12:11,800 Speaker 2: brilliant on this issue of global tariffs, and global trade, 179 00:12:11,800 --> 00:12:14,480 Speaker 2: and particularly the one point two billion dollar deficit that 180 00:12:14,559 --> 00:12:18,720 Speaker 2: the President inherited on day one, in that the approach 181 00:12:18,760 --> 00:12:21,679 Speaker 2: has been staged off the bat from the beginning of 182 00:12:21,720 --> 00:12:26,880 Speaker 2: the administration. The President has very artfully leveraged the force 183 00:12:27,920 --> 00:12:32,120 Speaker 2: of tariffs, many different types of tariffs that are targeted 184 00:12:32,160 --> 00:12:37,280 Speaker 2: toward different countries, different geographies, different sectors. But ultimately he's 185 00:12:37,520 --> 00:12:42,560 Speaker 2: used that leverage and that strategy to pin down a 186 00:12:42,720 --> 00:12:46,720 Speaker 2: large core of countries and they're about call it ten 187 00:12:46,760 --> 00:12:50,400 Speaker 2: countries Japan, e U, South Korea, Indonesia, Philippines, and Vietnam 188 00:12:51,240 --> 00:12:55,520 Speaker 2: that represent around let's call it sixty seven percent of 189 00:12:55,640 --> 00:12:58,720 Speaker 2: the total trade deficit that was presented to the President 190 00:12:58,800 --> 00:13:02,360 Speaker 2: on day one. And so by bringing those countries into 191 00:13:02,480 --> 00:13:06,840 Speaker 2: line and settling initial agreements with them, and on top 192 00:13:06,880 --> 00:13:10,240 Speaker 2: of settling the initial agreements, also using those agreements to 193 00:13:10,400 --> 00:13:14,280 Speaker 2: leverage investment from those countries into our country to boost 194 00:13:14,480 --> 00:13:18,079 Speaker 2: our industrial base and create jobs. In addition to that, 195 00:13:18,720 --> 00:13:25,239 Speaker 2: he has fixed those variables and allowed our great negotiation 196 00:13:25,440 --> 00:13:29,400 Speaker 2: teams to focus on the really big issue that's left, 197 00:13:29,440 --> 00:13:33,880 Speaker 2: which is China, which comprises twenty plus percent of that 198 00:13:34,040 --> 00:13:36,760 Speaker 2: remaining thirty three percent. Now there are a couple of 199 00:13:37,240 --> 00:13:40,000 Speaker 2: swing factors out there. India is not an easy one 200 00:13:40,040 --> 00:13:43,280 Speaker 2: to nail down, still negotiating with Taiwan and a couple 201 00:13:43,360 --> 00:13:47,760 Speaker 2: of others. But despite the challenge of India, the trade 202 00:13:47,760 --> 00:13:51,120 Speaker 2: deficit position presented by India is not nearly as close 203 00:13:51,160 --> 00:13:55,000 Speaker 2: and nearly as great as China. So in simple answer, Sir, 204 00:13:55,120 --> 00:13:57,880 Speaker 2: I think the answer is, yes, we will get there. 205 00:13:58,040 --> 00:14:01,600 Speaker 2: It will take time, it will a smart plan and 206 00:14:01,679 --> 00:14:04,200 Speaker 2: a firm plan, and it will require staying the course 207 00:14:04,360 --> 00:14:05,439 Speaker 2: in negotiations. 208 00:14:06,000 --> 00:14:09,559 Speaker 1: Then it strikes you that the whole process we're involved 209 00:14:09,559 --> 00:14:16,320 Speaker 1: in China is so big and is a dictatorship. We're 210 00:14:16,360 --> 00:14:19,400 Speaker 1: going to have to I think at some point have 211 00:14:19,480 --> 00:14:24,880 Speaker 1: a fairly difficult period of convincing them that they're just 212 00:14:24,920 --> 00:14:27,520 Speaker 1: stuff we're not going to accept. And I think that's 213 00:14:27,560 --> 00:14:30,720 Speaker 1: part of what President Trump is now going through in 214 00:14:30,760 --> 00:14:35,040 Speaker 1: these negotiations. Initially, I think the Chinese thought they could 215 00:14:35,320 --> 00:14:39,280 Speaker 1: shrug him off the way they had shrugged off President Biden. 216 00:14:39,720 --> 00:14:40,920 Speaker 1: And I think it's been a little bit of a 217 00:14:40,960 --> 00:14:44,320 Speaker 1: surprise to them how tough he's willing to be, and 218 00:14:44,800 --> 00:14:47,480 Speaker 1: it's certainly been a surprise to Modi that he is 219 00:14:47,880 --> 00:14:51,560 Speaker 1: imposing a fifty percent tariff because Mody won't quit buying 220 00:14:51,640 --> 00:14:55,400 Speaker 1: Russian oil. I think that was a genuine shock, and 221 00:14:55,440 --> 00:14:58,000 Speaker 1: they have all sorts of consequences. But don't you think 222 00:14:58,000 --> 00:15:01,720 Speaker 1: that it takes somebody as tough and as tenacious as 223 00:15:01,720 --> 00:15:04,640 Speaker 1: Trump to get the attention of the Chinese dictatorship. 224 00:15:04,880 --> 00:15:08,520 Speaker 2: There's no question about it, sir. It's a very simple recipe. 225 00:15:09,200 --> 00:15:13,840 Speaker 2: Sort and settle your negotiating position, stay the course by 226 00:15:13,920 --> 00:15:17,840 Speaker 2: using maximum pressure. In this case with tariffs, there is 227 00:15:17,880 --> 00:15:20,960 Speaker 2: the TikTok dimension of bringing pressure, because I'm sure that 228 00:15:21,040 --> 00:15:25,320 Speaker 2: the President is using the TikTok discussions to assist with 229 00:15:25,400 --> 00:15:30,000 Speaker 2: the ongoing negotiation on other issues. But in addition to that, 230 00:15:30,920 --> 00:15:36,000 Speaker 2: the differentiator is that the key top leadership is directly 231 00:15:36,040 --> 00:15:40,480 Speaker 2: involved in the discussions. So in Trump forty five, it 232 00:15:40,600 --> 00:15:45,360 Speaker 2: was my secretary is Secretary Manuchin, obviously Ambassador Leitheiser working 233 00:15:45,400 --> 00:15:49,640 Speaker 2: as a team going through major negotiation after major negotiation. 234 00:15:49,960 --> 00:15:54,000 Speaker 2: But of course the President was directly involved with Premier 235 00:15:54,040 --> 00:15:57,720 Speaker 2: c through phone exchanges. There were a couple of in 236 00:15:57,760 --> 00:16:01,520 Speaker 2: person meetings, and we're actually seeing the same right now. 237 00:16:02,000 --> 00:16:05,520 Speaker 2: Secretary Bessant is directly involved. And as you'll be aware, 238 00:16:05,600 --> 00:16:08,960 Speaker 2: the President has a call scheduled with Premier Shee on Friday, 239 00:16:09,560 --> 00:16:14,680 Speaker 2: and this is the direct illustration of Potus's personal involvement 240 00:16:15,360 --> 00:16:18,440 Speaker 2: at crucial stages to ensure that the ball keeps going 241 00:16:18,480 --> 00:16:22,560 Speaker 2: and to ensure that everybody at the table understands that 242 00:16:22,800 --> 00:16:26,800 Speaker 2: work that's being done is being directed and engaged directly 243 00:16:26,840 --> 00:16:27,920 Speaker 2: by Potus himself. 244 00:16:28,560 --> 00:16:31,600 Speaker 1: Compared to the first term, my sense is that he's 245 00:16:31,600 --> 00:16:37,880 Speaker 1: more aggressively engaged this time in terms of basically restructuring 246 00:16:37,880 --> 00:16:41,480 Speaker 1: the entire global trading pattern than he was in his 247 00:16:41,520 --> 00:16:42,200 Speaker 1: first term. 248 00:16:42,680 --> 00:16:45,720 Speaker 2: There's no question about that. He came out of the 249 00:16:45,800 --> 00:16:50,720 Speaker 2: corner swinging. He is far more disruptive, and he's far 250 00:16:50,800 --> 00:16:54,640 Speaker 2: more strategic in actions that he's taking in Washington. We 251 00:16:54,680 --> 00:16:57,200 Speaker 2: could look at a bunch of different examples, but as 252 00:16:57,240 --> 00:17:00,520 Speaker 2: we're talking about tariffs, I mean, let's look at forty 253 00:17:00,560 --> 00:17:04,000 Speaker 2: five versus forty seven. The President had assumed office for 254 00:17:04,040 --> 00:17:06,760 Speaker 2: the first time, had not been in the mix, as 255 00:17:06,800 --> 00:17:10,240 Speaker 2: it were, of how the dynamics run in the executive 256 00:17:10,280 --> 00:17:14,520 Speaker 2: and particularly in relations with the Hill. The tariffs didn't 257 00:17:14,520 --> 00:17:16,800 Speaker 2: come for a little bit. I'm sure that he was 258 00:17:16,840 --> 00:17:20,240 Speaker 2: getting advice that there could be challenges and there would 259 00:17:20,280 --> 00:17:22,439 Speaker 2: be challenges, and there were challenges to the use of 260 00:17:22,480 --> 00:17:27,760 Speaker 2: a EPA, And in forty seven he just utilized the 261 00:17:27,800 --> 00:17:31,680 Speaker 2: force of his executive authority to a point that enabled 262 00:17:31,760 --> 00:17:35,160 Speaker 2: us to get where we are in delivering trade deals 263 00:17:35,240 --> 00:17:38,920 Speaker 2: with countries that represent sixty seven percent of the deficit. 264 00:17:39,359 --> 00:17:42,480 Speaker 2: We would not have got there. I'm quite confident had 265 00:17:42,520 --> 00:17:46,879 Speaker 2: not the President really pushed aggressively in the use of 266 00:17:47,000 --> 00:17:50,800 Speaker 2: his executive authority to the FoST extense. So I wholeheartedly 267 00:17:50,840 --> 00:17:52,240 Speaker 2: agree with what you're saying, sir. 268 00:18:07,840 --> 00:18:10,639 Speaker 1: Doesn't he speak very well of Besting and Lunnik and 269 00:18:10,720 --> 00:18:14,399 Speaker 1: the trade negotiator that they've been able to handle this 270 00:18:14,600 --> 00:18:19,080 Speaker 1: many different parallel negotiations almost simultaneously. 271 00:18:19,760 --> 00:18:22,960 Speaker 2: I'm a deal lawyer by nature. They had one hundred 272 00:18:23,000 --> 00:18:28,240 Speaker 2: negotiations going simultaneously. You couldn't find anybody, highest levels of commerce, 273 00:18:28,320 --> 00:18:31,960 Speaker 2: highest levels of treasury, and certainly Investor Greer, a good 274 00:18:31,960 --> 00:18:34,560 Speaker 2: friend of mine, and his great team at USTR. They 275 00:18:34,560 --> 00:18:37,240 Speaker 2: were fully engaged. But look at the beauty of it, sir. 276 00:18:38,040 --> 00:18:42,480 Speaker 2: Through the strategy, they were able to lock down countries 277 00:18:42,520 --> 00:18:46,440 Speaker 2: that represented two thirds of the deficit in order then 278 00:18:46,640 --> 00:18:50,639 Speaker 2: to focus on the biggest fish. And that's a strategy 279 00:18:51,119 --> 00:18:52,359 Speaker 2: and the strategy worked. 280 00:18:53,119 --> 00:18:55,639 Speaker 1: It seems to me. In your book, A Seat at 281 00:18:55,640 --> 00:18:59,960 Speaker 1: the Table, you really take on the critics who think 282 00:19:00,160 --> 00:19:04,240 Speaker 1: that Trump's diplomacy lacks strategy, and you argue that, in fact, 283 00:19:04,840 --> 00:19:09,000 Speaker 1: he has a very highly strategic approach. In fact, do 284 00:19:09,040 --> 00:19:12,240 Speaker 1: you describe it as a game of three dimensional chess? 285 00:19:12,640 --> 00:19:14,639 Speaker 1: I happen to agree with you. I think that Trump 286 00:19:14,720 --> 00:19:18,399 Speaker 1: is far more strategic than the news media understands. But 287 00:19:18,480 --> 00:19:20,840 Speaker 1: can you start to describe for us what you mean 288 00:19:20,880 --> 00:19:24,000 Speaker 1: by this game of three dimensional chess and the way 289 00:19:24,040 --> 00:19:26,600 Speaker 1: in which Trump approaches things strategically. 290 00:19:27,720 --> 00:19:30,160 Speaker 2: Well, I come back to the best example of it, 291 00:19:30,280 --> 00:19:33,040 Speaker 2: which is trade. If we were to go back and 292 00:19:33,080 --> 00:19:35,240 Speaker 2: look at the press coverage in the first couple of 293 00:19:35,240 --> 00:19:39,720 Speaker 2: months of the administration, a good piece of that content 294 00:19:40,320 --> 00:19:45,800 Speaker 2: was using the words chaos, confusion, creating damage and detriment 295 00:19:45,840 --> 00:19:49,240 Speaker 2: to the US economy. I don't happen to agree with that. 296 00:19:49,400 --> 00:19:52,399 Speaker 2: The numbers are not in line with those descriptions. But 297 00:19:53,560 --> 00:19:59,280 Speaker 2: the President used his executive authority with a specific intent 298 00:19:59,520 --> 00:20:02,680 Speaker 2: I believe, to get us where we got to today, 299 00:20:03,160 --> 00:20:05,880 Speaker 2: let's call it one hundred and eighty day point, where 300 00:20:05,920 --> 00:20:10,000 Speaker 2: he had essentially wrestled down the biggest part of the 301 00:20:10,040 --> 00:20:14,600 Speaker 2: issue of the deficit, while at the same time security 302 00:20:14,600 --> 00:20:19,119 Speaker 2: commitments for greater foreign investment in the US to grow 303 00:20:19,240 --> 00:20:22,399 Speaker 2: our industrial base and to create jobs. So on the 304 00:20:22,440 --> 00:20:27,200 Speaker 2: one hand, there were commentators that were describing his approach 305 00:20:27,240 --> 00:20:31,600 Speaker 2: as disruptive, as chaotic, as detrimental. But on the other hand, 306 00:20:32,280 --> 00:20:35,800 Speaker 2: if we are to look at the results that the 307 00:20:35,840 --> 00:20:38,960 Speaker 2: President and his team have delivered on the trade front, 308 00:20:39,760 --> 00:20:44,040 Speaker 2: and we would look at the macroeconomic indicators throughout the 309 00:20:44,080 --> 00:20:46,840 Speaker 2: whole of the one to eighty and when we have 310 00:20:46,920 --> 00:20:50,639 Speaker 2: the opportunity to look at the next thirty sixty ninety days, 311 00:20:51,359 --> 00:20:54,560 Speaker 2: I think that it will be very challenging for somebody 312 00:20:54,600 --> 00:20:58,000 Speaker 2: to come to a view that it was anything less 313 00:20:58,000 --> 00:21:02,560 Speaker 2: than strategic. It was certainly not chaotic. I'm wholly confident 314 00:21:02,640 --> 00:21:05,640 Speaker 2: that there was rhyme and reason to it, that nobody 315 00:21:05,720 --> 00:21:09,639 Speaker 2: was winging it, and that the desired outcome of getting 316 00:21:09,760 --> 00:21:13,120 Speaker 2: us where we are today was settled at the beginning. 317 00:21:13,720 --> 00:21:16,959 Speaker 2: There certainly may well have been the appearances of disruptive. 318 00:21:17,000 --> 00:21:19,800 Speaker 2: There certainly may well have been the appearance of chaotic, 319 00:21:20,520 --> 00:21:24,600 Speaker 2: but that is dispelled by the results that the President 320 00:21:25,080 --> 00:21:28,600 Speaker 2: has delivered and his team have delivered, and so if 321 00:21:28,600 --> 00:21:30,840 Speaker 2: that's not strategic, I don't know what is. 322 00:21:31,200 --> 00:21:34,680 Speaker 1: From your perspective, do you think that we will probably 323 00:21:36,080 --> 00:21:39,200 Speaker 1: come out of this with terms of trade that are 324 00:21:39,240 --> 00:21:41,639 Speaker 1: substantially more favorable to the United States. 325 00:21:42,520 --> 00:21:45,879 Speaker 2: We certainly have in respect of the first round, Japan, 326 00:21:45,960 --> 00:21:49,600 Speaker 2: New South Korea, Indonesia, Philippines, Vietnam, a couple of others. 327 00:21:50,440 --> 00:21:53,200 Speaker 2: Hard to know what will be with India. I'm confident 328 00:21:53,280 --> 00:21:56,439 Speaker 2: that others that are remaining Taiwan, Israel, and a few others, 329 00:21:56,480 --> 00:21:58,840 Speaker 2: I'm confident that we will get there. The big issue 330 00:21:58,880 --> 00:22:01,960 Speaker 2: I think is the largest elephant on the table right 331 00:22:02,000 --> 00:22:06,199 Speaker 2: which is China, and I feel wholly confident that the 332 00:22:06,280 --> 00:22:09,119 Speaker 2: team will get there. There's continuity of many of the 333 00:22:09,160 --> 00:22:12,520 Speaker 2: team members from Trump forty five that went through the 334 00:22:12,560 --> 00:22:16,159 Speaker 2: negotiations to begin with. Many of the core issues have 335 00:22:16,320 --> 00:22:20,280 Speaker 2: not changed. It's just an issue of continuation and following 336 00:22:20,320 --> 00:22:23,960 Speaker 2: on from where we had settled in the Phase one 337 00:22:24,040 --> 00:22:27,720 Speaker 2: trade agreement in twenty twenty, and then also dealing with 338 00:22:27,800 --> 00:22:30,439 Speaker 2: the couple of additional issues that have arisen, some of 339 00:22:30,480 --> 00:22:34,560 Speaker 2: which are quite large, like rare earths and semiconductors. But 340 00:22:34,800 --> 00:22:38,359 Speaker 2: I'm confident that this team will deliver, just as Trump 341 00:22:38,440 --> 00:22:40,399 Speaker 2: forty five China team did deliver. 342 00:22:41,000 --> 00:22:46,000 Speaker 1: Did the Biden administration represent a pretty big detour away 343 00:22:46,080 --> 00:22:49,840 Speaker 1: from the Trump focus on the American economy. Did you 344 00:22:49,840 --> 00:22:52,919 Speaker 1: have a sense that all the trade negotiations that you 345 00:22:53,040 --> 00:22:56,280 Speaker 1: all helped launch under Trump one, everything just sort of 346 00:22:56,440 --> 00:22:58,240 Speaker 1: fell apart under Biden. 347 00:22:59,119 --> 00:23:02,480 Speaker 2: Well, the simple point that comes to my mind, or 348 00:23:02,560 --> 00:23:06,000 Speaker 2: simple word that comes to my mind, is complacency. If 349 00:23:06,040 --> 00:23:10,960 Speaker 2: one thinks that inaction is going to stop predatory action 350 00:23:11,400 --> 00:23:16,440 Speaker 2: by a country or countries that historically for fifty years, 351 00:23:16,440 --> 00:23:19,560 Speaker 2: one hundred years, three hundred years, five hundred years have 352 00:23:19,640 --> 00:23:23,360 Speaker 2: been predatory, then that's ill advised. I would almost want 353 00:23:23,359 --> 00:23:27,520 Speaker 2: to say it's delusional. I look at some very impactful 354 00:23:27,640 --> 00:23:32,160 Speaker 2: areas in which I was engaged, like infrastructure finance globally, 355 00:23:32,920 --> 00:23:36,280 Speaker 2: where the United States was using very successfully with just 356 00:23:36,320 --> 00:23:39,640 Speaker 2: about twenty countries in Latin America, the West ham and Caribbean, 357 00:23:39,680 --> 00:23:42,800 Speaker 2: and also in Asia. We were using the tools of 358 00:23:42,960 --> 00:23:46,879 Speaker 2: the whole of government approach ten different agencies to help 359 00:23:47,040 --> 00:23:52,440 Speaker 2: our partners in those regions grow by helping them identify 360 00:23:52,720 --> 00:23:57,040 Speaker 2: impactful infrastructure and energy projects that would help them grow 361 00:23:57,800 --> 00:24:03,800 Speaker 2: in a healthy manner unlike bri using primarily, if not exclusively, 362 00:24:04,200 --> 00:24:08,360 Speaker 2: private capital sources as opposed to government funding, and all 363 00:24:08,400 --> 00:24:11,800 Speaker 2: of that programming that was delivering wonderful results. We did 364 00:24:11,800 --> 00:24:15,840 Speaker 2: a three point five billion dollar transaction with Ecuador. We 365 00:24:15,960 --> 00:24:20,080 Speaker 2: helped the Panamanians refinance their electric utility, saved them sixty 366 00:24:20,119 --> 00:24:23,720 Speaker 2: million dollars in debt service. We were working with Vietnam 367 00:24:23,800 --> 00:24:27,359 Speaker 2: and completed a very large one point two billion dollar 368 00:24:27,440 --> 00:24:31,720 Speaker 2: ellergy receiving terminal. All of that programming was scrapped put 369 00:24:31,760 --> 00:24:35,679 Speaker 2: to the side by the Biden administration in exchange for 370 00:24:36,000 --> 00:24:39,919 Speaker 2: a focus on climate and in my view, not a 371 00:24:39,960 --> 00:24:44,000 Speaker 2: good use of US taxpayer dollars, not good for global growth, 372 00:24:44,080 --> 00:24:47,520 Speaker 2: certainly not good for the emerging market countries that we 373 00:24:47,520 --> 00:24:48,200 Speaker 2: were assisting. 374 00:24:48,520 --> 00:24:50,240 Speaker 1: I mean, one of the things is most striking to 375 00:24:50,280 --> 00:24:55,440 Speaker 1: me about the transition from Obama and Biden to Trump 376 00:24:56,480 --> 00:25:00,960 Speaker 1: is that he is very American centered, and that he 377 00:25:01,080 --> 00:25:04,919 Speaker 1: believes that we have to really build up our economic strength. 378 00:25:05,560 --> 00:25:08,359 Speaker 1: And if that makes other people a little uncomfortable because 379 00:25:08,359 --> 00:25:11,399 Speaker 1: they've been living for the last sixty years in a 380 00:25:11,440 --> 00:25:15,160 Speaker 1: world in which the US passively allowed them to have advantages, 381 00:25:15,840 --> 00:25:18,400 Speaker 1: that's the price He's willing to pay to get back 382 00:25:18,440 --> 00:25:21,639 Speaker 1: to a system which is focused on the American worker 383 00:25:22,000 --> 00:25:25,560 Speaker 1: and focused on American jobs. Is that a reasonable summary 384 00:25:25,560 --> 00:25:26,639 Speaker 1: of what you've been living through. 385 00:25:27,320 --> 00:25:28,880 Speaker 2: Yes, but it's a great summary. 386 00:25:29,480 --> 00:25:31,240 Speaker 1: Well, but you can then understand why the other guys 387 00:25:31,280 --> 00:25:33,199 Speaker 1: are all pretty irritated. I mean, it's kind of like 388 00:25:33,240 --> 00:25:35,560 Speaker 1: if you had a cousin who always got to come 389 00:25:35,600 --> 00:25:37,719 Speaker 1: by and borrow your car, and by the way, you 390 00:25:37,760 --> 00:25:40,440 Speaker 1: put the gasoline in, and then one day he showed 391 00:25:40,520 --> 00:25:41,480 Speaker 1: up and he said, you know, I'm not going to 392 00:25:41,560 --> 00:25:43,800 Speaker 1: learn it to you anymore. Suddenly he's mad at you, 393 00:25:44,520 --> 00:25:46,520 Speaker 1: even though you've been the one learning of your car. 394 00:25:47,240 --> 00:25:49,439 Speaker 1: I think that's a lot of what we're seeing around 395 00:25:49,440 --> 00:25:52,560 Speaker 1: the world that the United States is now looking out 396 00:25:52,600 --> 00:25:55,159 Speaker 1: for itself. But let me ask you, if you had 397 00:25:55,160 --> 00:25:58,399 Speaker 1: to boil it down, what do you think is the 398 00:25:58,440 --> 00:26:03,000 Speaker 1: biggest lesson American citizens should take from the past twenty 399 00:26:03,080 --> 00:26:04,200 Speaker 1: years of dealing with China. 400 00:26:04,800 --> 00:26:08,919 Speaker 2: That complacency doesn't work. It's just that simple bottom line, Like, 401 00:26:09,040 --> 00:26:13,199 Speaker 2: very simply, China is not converging with us. If we 402 00:26:13,200 --> 00:26:16,400 Speaker 2: were to take all of its policies and look at them, 403 00:26:16,840 --> 00:26:21,280 Speaker 2: how they're handling their domestic economy, how they're handling investment abroad, 404 00:26:21,880 --> 00:26:25,440 Speaker 2: how they're handling engaging in the global trade system, in 405 00:26:25,480 --> 00:26:29,479 Speaker 2: the global financial markets. A good part of it is 406 00:26:29,560 --> 00:26:33,760 Speaker 2: undermining us. It's not converging with us. And so until 407 00:26:33,840 --> 00:26:37,320 Speaker 2: one puts their foot down and says I'm not putting 408 00:26:37,400 --> 00:26:39,119 Speaker 2: up with this anymore, I'm not going to have it. 409 00:26:39,440 --> 00:26:43,480 Speaker 2: This is it, then there's no chance of the less 410 00:26:43,520 --> 00:26:49,120 Speaker 2: than positive behavior stopping. And under Trump forty five, when 411 00:26:49,160 --> 00:26:51,840 Speaker 2: we were at the table, and it was not limited 412 00:26:51,840 --> 00:26:54,719 Speaker 2: to the trade negotiations, we had other engagements going on, 413 00:26:54,800 --> 00:26:58,760 Speaker 2: for example relating to unfair subsidies and export credits, where 414 00:26:59,119 --> 00:27:03,040 Speaker 2: the Chinese government was using subsidies of financial subsidies to 415 00:27:03,080 --> 00:27:07,760 Speaker 2: their exporterers to create disadvantages against all other suppliers, including 416 00:27:07,800 --> 00:27:12,600 Speaker 2: American suppliers. Under Trump forty five, we prove that America 417 00:27:12,680 --> 00:27:15,880 Speaker 2: does not need to blink, and that with the right leverage, 418 00:27:15,960 --> 00:27:19,440 Speaker 2: whether it's tariffs, whether it's capital markets, whether it's private investment, 419 00:27:20,000 --> 00:27:22,880 Speaker 2: we can make China playfair and at the same time 420 00:27:22,960 --> 00:27:28,920 Speaker 2: protect our sovereignty while delivering good results for the US taxpayers. 421 00:27:29,359 --> 00:27:31,800 Speaker 1: I really appreciate you taking the time to talk today 422 00:27:31,800 --> 00:27:34,760 Speaker 1: because you've been in the room. This part of why 423 00:27:35,160 --> 00:27:37,760 Speaker 1: your new book is Seated at the Table and inside 424 00:27:37,800 --> 00:27:41,680 Speaker 1: account of Trump's global economic revolution. I mean, you've been there, 425 00:27:41,760 --> 00:27:44,879 Speaker 1: you understand it, you help explain it, and given the 426 00:27:44,920 --> 00:27:48,320 Speaker 1: scale of what we're living through, I think virtually everybody 427 00:27:48,720 --> 00:27:51,840 Speaker 1: would profit from reading your new book, and I want 428 00:27:51,840 --> 00:27:55,080 Speaker 1: to thank you for joining me. I do think you 429 00:27:55,160 --> 00:27:59,399 Speaker 1: bring a kind of unique experience and unique wisdom in 430 00:27:59,480 --> 00:28:04,000 Speaker 1: a very complicated, esoteric copic that very few Americans understand. 431 00:28:04,320 --> 00:28:07,159 Speaker 1: So you're an enormous asset to all of us with 432 00:28:07,280 --> 00:28:09,359 Speaker 1: the work you're doing, and I really appreciated Mitchell. 433 00:28:09,920 --> 00:28:12,680 Speaker 2: Well, mister speaker, I'd just like to repeat once again 434 00:28:12,760 --> 00:28:14,719 Speaker 2: that I thank you for all the great things that 435 00:28:14,760 --> 00:28:17,280 Speaker 2: you've done for your country. And finally, i'd like to 436 00:28:17,320 --> 00:28:20,480 Speaker 2: thank you for today giving me a seat at the table. 437 00:28:23,480 --> 00:28:25,800 Speaker 1: Thank you to my guest, Mitchell Silk. You can get 438 00:28:25,800 --> 00:28:28,080 Speaker 1: a link to buy his new book, A Seat at 439 00:28:28,080 --> 00:28:31,639 Speaker 1: the Table on our show page at newtsworld dot com. 440 00:28:31,880 --> 00:28:35,560 Speaker 1: New World is produced by Gingishe sixty and iHeartMedia. Our 441 00:28:35,600 --> 00:28:40,240 Speaker 1: executive producer is Guarnsey Sloan. Our researcher is Rachel Peterson. 442 00:28:40,760 --> 00:28:43,800 Speaker 1: The artwork for the show was created by Steve Penley. 443 00:28:44,680 --> 00:28:48,160 Speaker 1: Special thanks to the team at gingriishly sixty. If you've 444 00:28:48,160 --> 00:28:50,440 Speaker 1: been enjoying newts World, I hope you'll go to Apple 445 00:28:50,480 --> 00:28:53,640 Speaker 1: Podcasts and both rate us with five stars and give 446 00:28:53,720 --> 00:28:56,440 Speaker 1: us a review so others can learn what it's all about. 447 00:28:57,280 --> 00:29:01,920 Speaker 1: Right now, listeners of Newtsworld consigner from three three weekly 448 00:29:02,000 --> 00:29:06,960 Speaker 1: columns at ginglishtree sixty dot com slash newsletter I'm nute Ginglish. 449 00:29:07,360 --> 00:29:08,280 Speaker 1: This is Nutsworp.