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My next guest says these so called trading relationship between the US and China is nothing short of an economic Cold War.
And winning it is vital to our democracy.
Richard Cheney as written strategic capitalism the new economic strategy for winning the capitalist Cold War.
He's -- professor of strategic management at Dartmouth tuck school of business and joins us now.
Sir thank you for being with us it's my understanding that China's -- -- out of money.
Now they're not buying homes as quickly we see -- -- bills go down.
We know that banks are struggling it make loans -- seems to me that they must have a little financial crisis on their hands and yet you're saying -- we should be really scared.
Yes I am and I'm saying that because of a recent trip that I.
Took to China where -- -- so are how -- -- with Chinese Government was to vantage a lot of these crises.
The price -- -- -- -- going down because they're managing.
In order to have a soft landing to prevent the kind of bubble that crippled Japan back in the 1990s.
So -- I think China is actually in a much stronger position to deal with the problems in the United States government is.
But is it because they are managing numbers and expectations -- things like that and they got their -- have a hands in the cookie jar so to speak is that why you think we are at a tipping point with them.
Well I think the tipping point is due to the fact that they've invented a new form of capitalism.
Would she is basically under -- excuse me undermining.
The competitive strengths of the United States.
They're undermining our ability to have.
A laissez Faire capitalism with all the ways that they.
Cheat on the WTO rules.
There -- the -- -- democracy with the fact that they are an authoritarian state that can simply make decisions without any.
-- without any consultation with the people and they're undermining our global sphere of influence of this support of North Korea.
Syria and Iran all of which are sucking up tremendous resource -- from us and making -- waste our money and time.
So that's what it is then and they're cheating basically in your saying we gotta -- we gotta fight back so how do you fight back with Peter.
Well in in this case I don't think negotiating is gonna work and that's evidenced by.
Failure to get any kind of agreements from the Chinese and we can't expect the Chinese to simply.
Evolves to become Americans they have 5000 years of their own culture.
History and desire for global hegemony that -- -- not gonna change simply by trading with them.
So how -- we fight back.
The answer your question directly.
Mobile one as I think we first have to develop more independence.
From China and fix our financial situation at home -- that -- So that we're able to fight more aggressively -- number two I think we have to reinvent our former capitalism.
Number three I think we have to me.
Go on the offense by attacking the center of gravity.
And as I look at and that's such a lot of manufacturing a lot of people would agree with you sir unfortunately it seems like -- really tough road right now we have a lot of glamour government involvement than you certainly think we need.
-- -- author of strategic capitalism.
Tick out the book thanks your being with us today said.