time.

We appreciate it.

>> Thanks very much.

Anchor: Now to another view.

He was deputy national security advisor in first trump administration.

He spearheaded China policy as the confrontation with beijing accelerated.

He is now chairman of the China program of the foundation for defense of democracy, a Washington think tank.

Thank you for joining us.

That's pickup with the issue of the advanced chips.

You have also previously said the sale of those trips to China would be a catastrophe for U.S.

Technological leadership.

We heard president trump say they did not discuss it in the meeting, that it is up to China and nvidia to work out a deal and the U.S.

Would act as an arbitrator.

Does all of that assuaged your concerns?

>> I am certainly relieved that president trump was not talked into giving away the most advanced chips or even reasonably advanced chips which is really what was on the table.

Advanced chips made by nvidia.

It is clear that the leader of the company wants to sell.

Who can blame him?

He wants to sell his chips everywhere.

For the reason you just heard the ambassador talk about, that would be a real disaster for the U.S.

Not only because it would help the people's liberation army, it would put us in danger and in an inferior position militarily.

Ai we like electricity.

It will permeate everything.

The commercial uses.

It means that information flow, the public square, all of these things will be neither controlled by authoritarian government or they will be part of a free and democratic kind of order which is what we all stand for here in the U.S.

It is really important that we maintain that leadership.

The biggest area where we have a lead over China in ai is actually access to these high-end, very powerful chips.

Anchor: Let me ask you to take a bigger picture look here at what was agreed upon in this truce as it is being called.

Do you agree with what you heard from the ambassador that this is just a truce?

It is a long simmering trade war that will likely continue into next year?

>> I think that is about right.

This is a fragile truce.

He candy gets kicked into the 2020 six.

None of the structural problems are addressed.

Having a fragile truce is not a bad thing.

That means the most draconian steps that China was threatening to take, namely to regulate all trade, all technology between nations, not just with China but even between democracies, China was saying as of the ninth of October that they were planning to regulate that trade if technological items and inputs contained in minute amounts of Chinese rare Earths, which Sony things do.

That would have been a situation where we would have been in an escalatory spiral.

We would have seen probably a global recession.

If China had gone forward with that.

On the flipside, president trump is going to refrain from applying to tariffs.

He is actually reducing them a bit and expectation that China is going to do something it really has not done yet which is refrain from selling all of these heavily state subsidized chemicals that go through the drug cartels in Mexico and end up on the streets killing, it is the leading cause of death in the U.S.

For people 18-49.

I will take a fragile truce.

Anchor: If this is a matter of taking a lot of these bigger issues down the road, what happens when you look at the leverage that both sides are left with no?

You heard some of what the ambassador had to say in terms of what U.S.

Leverages, the headwinds that continue to face China.

The big question is whether the leaders of the world's two biggest economies will make good on the verbal promises they made.

What does that look like to you ahead?

>> First I would say the U.S.

Actually has a lot more leverage than we have even brandished in these talks.

That could include expanding control so China is not able to get even less advantage.

Across the board.

This would be our nuclear option.

The equivalent in a sense of what they were threatening to do with these rare Earth regulatory approach.

Hopefully it will not come to that.

What I would warn it is we are dealing with a dictatorship.

The pattern with them including the people's republic of China is when they find a pressure point, it seems to be working, they will continue to return to that pressure point and push again and again and again.

So you have not heard the last about American companies running into trouble in terms of shortages of rare Earths.

It is going to take us some years to invest and build and develop our way out of that.

It is actually an urgent situation still.

Anchor: I have to ask you, the president has said that Taiwan did not come up in these conversations.

If you are listening from Taiwan, should you be worried about wavering U.S.

Support?

>>I don't think that president trump's policy on Taiwan has deviated from where our presidents have been going all the way back to 1980.

That has been to follow the Taiwan relations act, which is a U.S.

Law that makes it clear that we are going to provide weapons to Taiwan and if China were to try to change the status quo through coercion, that would be a matter of grave concern for the U.S.

Anchor: Always good have you here.

Thank you for joining us.

>> Thank you.

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