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Under Secretary of State Robert Hormats on the benefits and concerns for the U.S. in trading with China.
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We're in the midst of the election season of course but there is one -- nonpartisan issue being addressed by both Republicans and Democrats and that's the US trade deficit with China.
So what kind of relationship should we really have overseas.
Robert Hormats is the undersecretary of state for economic growth energy in the -- served in both Republican and democratic administrations really knows of from both sides EI joins us now.
In a Fox Business exclusive Bob wonderful to see you thanks for coming in -- -- -- -- to be on your show now it is a campaign season as you well know and obviously facts very often -- the first casualty of these campaign season with regard to trade there's -- easier target for a politician to pick.
And China is right and across -- a lot of people say it's much more of a threat than an opportunity even some people in your administration are saying that.
In what way do you see it as a threat and what we do you see it as an opportunity China well -- -- it's it's.
It's both in then -- go through a number of of by the arguments on either side.
Certainly there's an opportunity a lot of American companies are selling more goods and China.
Lot of American jobs depend on increasing sales in China and number of companies are investing there are doing quite well so.
Lot of domestic jobs depend on continued growth in China.
And continued growth in American exports.
But and there's a big but here and that is that a number of practices and -- the Chinese engage our very harmful.
Not only to the interest of American companies and American jobs but.
Competitors throughout the -- -- what specifically protection of intellectual property in China is very is very important parts of China and very uneven.
Some improvements in some areas.
But not in many other areas.
They have policies which favor domestic Chinese.
Companies over foreign companies they engage in a number of other very nationalistic or will not call -- and holistic practices.
That help their companies give them special benefits enabled them to improve their competitive strengths.
Behind these protected walls which then enables them to become more competitive externally.
So or try to do is two things one to help American companies to export war in China.
And reduce the barriers and also to get China to play by international rules.
That would help to alleviate some of these -- because after all.
They depend more on the global system.
They should play by the global rules of the system as well that's a big challenge and so far.
We've made some progress but there are lovers are we simply have not made enough.
And are continuing to press -- very -- -- you could say Bobby could lead a horse to water but you can't make it drink and that's the problem with the Chinese can't really tell them what to do on the one example we just had a story that Citibank.
Has now been allowed to get in there with its credit cards and get the first branded card company in -- in China and that's a that's a US based company.
On the other hand and I always use Manitowoc is an example that the Crane operators out of Wisconsin and make the gigantic cranes are China said sure -- -- for a couple of years.
My belief is they sat there looked at how the -- were made.
Figured it out and then slap tariffs on Manitowoc after a couple years and said we're not doing business with you anymore we figured it out so how that is -- the Chinese to deal with that.
That is a big problem that is trade secrets trade secrets.
And China know are very vulnerable American companies operating there.
But even if you're not operating -- products you make -- -- -- because the Chinese -- -- pro engineer.
Your high tech products and and take your trade secrets that are transfer -- the Chinese companies and Chinese companies -- gold and up.
Competing with the -- in international markets.
How do we deal with the -- right you can't lecture the Chinese they have to see it as and -- interest if they want their companies that invest abroad to be treated.
And -- an open way they have to treat foreign investment in China and -- open and fair way.
If they want their intellectual property protected and many Chinese companies do have intellectual property they have to protect intellectual property.
All foreign companies there's no way around that -- to play by the international rules if they want the international community.
To treat them as what they say they want which is a market economy -- they're clearly not in many ways a market economy and in less they.
Do.
Abide by these global rules that most other countries do abide by -- -- so.
-- relatively high degree then they're then they're not going to be part of the system that they have to understand they have a stake in the system.
And if the system turns negative if other countries.
Turn protectionist because they think the deck is stacked against them -- adversely affect Chinese companies and China does need.
To have their companies do well and actually because they have an employment problem -- okay these have been so.
There you are with Hillary Clinton your boss.
Dancing the night away I think this is in South Africa and everything -- -- -- territorial since when did dancing become a requirement for working over this department Bob.
I look anything I'm asked to do for my country has you know I do a I'm a patriot and this was actually.
Quite nice of that stuff ever as a country we're working with -- very closely trying to improve relations.
It's a growing market for American products slot American companies are there and therefore.
Part of of South Africa's culture is.
Dancing and I was just moved by the moment currently by the way we're looking at radio city music call right from our studio here next time become just walk out -- I'm sure -- -- the auditions are happening every day.
After after that video luxury be welcome Iraq as -- has -- -- -- my version in the secretary of State's version of dancing with the slower.
So if you are are started and thank you so much it's good to see you Bob.
Thanks for regular show -- he undersecretary of state Bob -- and one heck of a dancer well.
