President Trump met with Chinese President Xi Jinping this week in a historic summit between the two world leaders. Scholar of China and author Gordon Chang believes, however, that when it comes to leverage, President Trump comes out on top.
00:00 — What Trump needs from Xi 02:25 — The Iran question hanging over the summit 04:56 — Taiwan tests Trump’s China strategy 07:12 — Why Chinese EVs raise national security alarms 09:22 — CEOs, AI chips and China’s tech ambitions 11:49 — Rare earth minerals give China leverage 13:23 — Concerns over Chinese investment in America 15:44 — Jimmy Lai and China’s human rights record 17:53 — Chang’s final warning on China and fentanyl
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Gordon Chang analyzes the power imbalance between the U.S. and China, arguing that China's economic and demographic decline leaves it vulnerable. He urges the U.S. to adopt a firmer stance on national security, reject Chinese investments, and stop making diplomatic concessions, asserting that China's goal is global destabilization rather than peaceful coexistence.
Hello, I'm Kelly Sadler, the commentary
editor at The Washington Times.
And this is Politically Unstable.
Today, we are joined by Gordon Chang,
who is a scholar of China's
written several books on the topic,
including The Coming Collapse of
China.
I mean, we'll be discussing the
historic summit between President
Trump and Xi Jinping.
Gordon, I want to let I want
to get your thoughts on what you
think this summit should
look like and what deliverables
the president should come
back with.
Is it largely symbolic?
Is the real meeting and the real
negotiation going to happen in
September?
The president announced that he
will be hosting Xi here
in September.
Just kind of give us the rundown of
how you think it's been going
and set some expectations
for our audience, please.
So far, it does not appear
that either side has made a
significant concession to the
other.
Xi Jinping clearly wants
certain things that President
Trump is not going to give him.
And the opposite of that is
also true.
You know, there's a lot of
commentary about how the United
States comes into this meeting
in a weakened condition, which
I think underestimates
America's strengths and
overestimates China.
Now, it's true Xi Jinping
has a big
built in advantage because he's
got the home court.
And also Xi Jinping is very
arrogant. And that makes it
for him a lot
easier because he has a conception
of the world that he's in control,
but he's not.
And the thing is that
President Trump has a far stronger
society behind him than Xi Jinping
does.
Xi's economy is stumbling
badly.
His demography is collapsing.
He's got a very unhappy populace
and the United States is resurgent.
And by the way, this year's
President Trump has been taking
China's proxies off the board.
Venezuela, Panama,
we see very important American
gains there.
Iran is now been
bombed and that has really
been a Chinese proxy.
So you put all this together.
Xi Jinping is, I
think, overestimating his strength
and American commentators are
overestimating his strength.
Now, one of the things from
the president's readout, President
Trump's readout of their initial
meeting was that China
and Xi agree that Iran should
never have a nuclear weapon
and that China will do whatever it
takes to support the U.S.
in Iran.
Is this I was a little hesitant
that we did not hear the same thing
come from the Chinese side.
And we do know that Iran
is a proxy for China.
We know that China has been buying
buys much of their oil,
has been giving them the likes of
drones and some things to use on
the kinetic war field.
So what do you take?
What is your takeaway?
What is your read on that?
And if the president Trump made any
inroads there?
Probably the Chinese have made
a few rhetorical concessions
to President Trump.
You know, this is typical American
diplomacy where we try to
encourage the Chinese to do the
right thing.
President Trump's done this and
all of his predecessors have done
this going back to Nixon.
I think we need to take a different
tack.
The reason why there's a war right
now is because China transplanted
its nuclear weapons program to
Iran.
It did that directly and it also
did that indirectly through the
AQ Khan nuclear black market
ring of Pakistan.
I think the president needs to talk
about that in public.
And the reason is that the Chinese
and others have
made this war look,
you know, like a war of choice,
as you hear so often.
Well, it's not because we know
that the Chinese have armed up
the Iranians.
So at some point,
the president Trump's going to have
to pivot if he doesn't pivot.
I don't think he's going to get the
Chinese to do
what we need them to, which is to
back off Iran.
They've been supplying these
weapons, not just drones.
It's also these anti-ship
cruise missiles that Iran fired
at the USS Abraham Lincoln
carrier strike group in late
March.
And it's everything else.
Every Iranian weapon that has a
microchip or virtually every
Iranian weapon that has a
microchip has a microchip
that has been either manufactured
in China or sourced by Chinese
intermediaries for Iran.
We need to start getting real and
saying that in public because our
approach of trying to sugarcoat
things just has failed.
One of the other takeaways
from the two's bilateral
meeting was a
lot of pressure put on President
Trump to change the US
is stance on Taiwan.
It's been one of strategic
ambiguity, but
he wants the president
to publicly state
that it is one China,
one nation, and that
we won't be selling arms
to Taiwan, nor would
we defend it if China
wanted to retake the island.
Kind of what is your sense with
what's coming out from the Chinese
side? We haven't heard how
President Trump addressed
kind of what were veiled threats
coming from Xi regarding the Taiwan
issue.
Yes, we haven't heard anything
from President Trump.
A White House official talked to
the media anonymously
on an anonymous basis and said
there's no change in US policy.
And that's exactly what we
should be doing. We shouldn't be
changing our policy because
of Chinese pressure.
One thing, though, and that
is American policy
has been not to talk to China
about arms sales to Taiwan.
And we shouldn't be doing that.
And the reason is it makes us look
weak.
And so we should defend
our friends and partners and
be telling the Chinese, look, you
know, Taiwan is none of your
business.
People in Taiwan overwhelmingly
self-identify not as Chinese,
but as Taiwanese.
And so this is and also
the other thing is that the People's
Republic has never exercised
sovereignty or jurisdiction over
Taiwan. And in fact, no
Chinese regime has ever held
indisputable sovereignty to
the island.
So we need to start saying these
things in public and backing the
Chinese off.
The Chinese tell us, oh, you know,
Taiwan's a red line.
Well, China, in fact,
doesn't have red lines.
They tell us they do,
but they are willing to move those
red lines when
they feel that their bargaining
position has changed, either
strengthened or weakened.
So everything is negotiable.
We shouldn't let the Chinese
intimidate us.
And we should just tell the Chinese
that this is not their business.
The other thing that
has been stated in news media that
China wants from the U.S.
is they want to bring their
cars over
here to the U.S.
and have the market to be open to
them.
Lawmakers on Capitol Hill
are saying this is a national
security threat.
This technology in these cars
could undermine U.S.
security, as well as
the automakers in Detroit saying
that, you know, they sell them their
state subsidized cars.
They can sell them at a lower price
point and it would put us
out of business.
And they issued these warnings to
President Trump before he left
on his trip.
But we know that Canada,
Carney, has struck a deal with Xi
to import these automobiles.
So kind of what is your take on
that?
And eventually, will they get
a hold in the U.S.
market?
I can't talk about the future
because President Trump has talked
about allowing Chinese carmakers
onto U.S.
soil.
But this would certainly
undermine U.S.
national security.
This is not in our interest.
There's going to be a lot of public
opposition to it.
And that opposition
is certainly correct.
Remember, all Chinese
EVs transmit
data back to China.
So they are, as they say,
rolling spy machines.
So they see everything.
Also, these cars,
some of them have, you know,
autonomous driving.
That is a real danger
because China could, for instance,
just sort of stop every car
if it wanted to.
But more important, it could drive
these cars off the cliff or into
oncoming traffic.
So there is no way that we should
be allowing these vehicles onto
America's soil.
And then that's the other issue
of China's
in very substantial subsidies
for Chinese carmakers.
We should not allow them anywhere
near our country.
And the other thing is we
should not allow Canadians who
buy Chinese EVs to
enter our roads for the
same reasons.
It seems it seems obvious,
but that is you know, that was
what was reported
that China wanted.
Now, in terms of the US
and what we need from this,
the president took with him over
a dozen CEOs,
Tim Cook from Apple being
one of them, Elon Musk,
the Nvidia's CEO,
which we know is a chip maker.
We know that China wants Nvidia's
chips.
What do you think the symbolism
was for the president to take these
CEOs over to meet with Xi?
And what do these American
businesses want from China?
I suppose President Trump
is using them as a bargaining chip
to say, look, we can have these
companies invest in China.
But this is the wrong move,
because it's one thing.
I think it also weakens President
Trump's position because the Chinese
can see that we are eager to do
business with them.
And of course, Xi Jinping is going
to say, oh, you know, we're going to
further open up our economy.
But we know that he has been closing
it down. And we also know
that over a course of a decade,
he has been pressuring
foreign companies because he wants
to reserve the Chinese market for
Chinese companies.
And especially since March of
2023, the pressure
on American and foreign companies
has been intense.
So I believe that it's
in our interest to lessen
the vulnerability of our companies
to China rather than increasing
that vulnerability.
So this is important
for us, and we're moving in the
wrong direction.
On chips, the only
way China can compete with us on AI
and this is the competition for the
21st century, the only way they
can do that is with American chips.
So why are we selling those chips
to China?
This became obvious in
last year when DeepSeek,
you know, DeepSeek on January 20 of
last year released its
R1 model.
It shook the world.
It took literally trillions of
dollars off of equities
in the United States.
But in the middle of last year,
DeepSeek just admitted it
couldn't come up with its R2 model
because it was using Huawei's
Ascend chip and they couldn't
get access to Nvidia's Blackwell
chips, the most advanced
American chips that there are.
So we shouldn't be helping China
compete with us.
This is just wrong.
But at the same time, China holds
a bunch of rare earth minerals
that we need to manufacture
these chips and to generate
AI technology.
So the president is trying to find a
deal there.
Where do you see this going?
And I mean, I believe that we here
in the United States should be the
mining our own rare earths.
We've got we've got rare earths
here in the United States, but due
to environmentalist concerns and
whatnot, we can't
mine for them.
But China can and it can not only
within its own country, but it has
been all over the world.
Yes, but also
we've got to remember that we've
got a lot of leverage on our point.
And I think it would be a win for
President Trump if he just merely
extended the trade truce
that they negotiated Xi Jinping and
President Trump negotiated
in October in
Busan, South Korea
on rare earths.
President Trump gets a lot of credit
because he is moving at Trump speed
to reduce our vulnerability
to China on rare earths.
You know, it's a question of mining,
question of processing.
But it's also technologies that
reduce our need for rare earths.
And another
strategy can be recycling
because we've got a lot of these
rare earth in
equipment and computers we already
have.
We can recycle.
Recycling is not something
that Americans like to do, but
this is an emergency.
So I think President Trump gets a
lot of credit here.
And in a couple of years, we will
not be talking about China's near
monopoly on rare earths.
The other thing or the other element,
Newsy piece that's coming out of
this summit is the negotiations
that Scott Besant, the treasury
secretary, is trying to
form some sort of U.S.
Chinese business
council.
The details on this are murky,
but it would allow
perhaps some Chinese companies
to manufacture their items
here domestically.
This brings out a lot of concern
for me. You know, we're we're afraid
of the Chinese buying up our farm
land and and monitoring our
U.S. military bases,
allowing it wouldn't be for high
tech things like chips, but
like domestic manufacturing,
ensuring it from China.
What do you make of that?
And are there any red flags there
for you?
President Trump has said he wants
a trillion dollars of Chinese
investment in our country.
That is wrong because
first of all, every
Chinese factory is another base
of Chinese subversion in our
country.
And we're being overwhelmed.
The federal government is
overwhelmed. Local governments are
overwhelmed.
We've got all of these
Chinese spies, agents and
operatives and soldiers running
around our country.
We don't need to give them more
places of refuge.
Also, there is the Chinese
biological weapons facilities
that we found.
We've got two of them, one of them
in Reedley, California, the other
in Las Vegas.
There is obviously a third
one that we have yet to discover.
We've got these illicit
Chinese police stations here.
We could lose.
We're a far stronger society than
China, but we could lose it because
we're not removing
China's obvious basis of
subversion.
We know that the Chinese agents
are studying our patterns, are
looking for vulnerabilities.
I think they're just waiting for
the go signal to strike.
And when they strike, there's
going to be war on the American
soil. The first one we've had
since 1812, a foreign
sustained attack on our country.
So this
is serious.
And I don't think that President
Trump understands the
vulnerabilities that we have.
And we certainly have, we've seen
an FBI that has been
lax in dealing
with this, these Chinese subversives
subversives on our
soil.
Well, just this week, there was
one arrested.
She became the mayor of Arcadia,
California, pled
guilty to being a Chinese
spy and working for the CCP,
spreading their propaganda here in
the United States domestically.
But, you know,
moving on from that,
there was rumors.
We know that Jimmy Lai has been
imprisoned in Hong Kong
unfairly.
There's human rights violations
throughout China, mainly
with the Uyghur population, which
they use to, you know, to produce
cotton, textiles,
whatnot.
The president, before
going over to China, seemed
called that Jimmy Lai calls
bedlam for President Xi
and releasing him for jail would be
like asking President Trump to
release Jim Comey from jail.
It'd be something that was very
difficult for him to do.
Do you see this president
going light on China's
human rights violations
and not not pressing
Xi enough,
you know, perhaps even if it was a
prisoner swap to free Jimmy Lai?
Yes, President Trump does not
talk about human rights.
That is consistent with American
foreign policy.
That doesn't really
make this a priority.
The Chinese make it a priority.
They put their best diplomats in
their human rights divisions
because they realize how
vulnerable they are.
I just this
is this is something which we
have an important advantage and we
don't understand it.
We're Americans.
We live in a government that is
legitimate.
So, you know,
Republicans, conservatives,
liberals, Democrats, we just don't
understand it.
But the Chinese do.
And we're in a fight with
China, which is far more
consequential than we Americans
think, because
for various reasons.
And so, yeah, we need to be talking
about human rights because it's
a Chinese vulnerability.
It puts them on the back foot.
It gives us a really critical
advantage.
So this is a failure of American
society in general.
Is there any other thoughts you
have on the summit takeaways,
things that we should be looking
for?
There's so many things to be
looking for.
The point here is
that, yes, Xi Jinping is home
court advantage, but President
Trump, I think, goes
into this summit with
a lot more leverage
than people think.
And I think that really what Trump
is doing is
he's really ambitious.
He is trying to enlist China
to stabilize
the world.
Now, the Chinese are destabilizing
it. Trump understands that.
At some point, though, I think
that we as a country are going
to understand that we cannot try
to get along with China because
China is not trying to get along
with us.
Remember fentanyl.
Fentanyl last year, 48,000
Americans perished.
We call them overdoses, but they
really should be considered
murderers because the Communist
Party is fully behind the Chinese
fentanyl gangs.
We can see this because
Chinese diplomats give cover to
the gangs.
Every container that leaves China
is inspected by officials.
The fentanyl gangs launder their
proceeds through Chinese
banks, which are tightly
controlled.
China's own TikTok, when it
was fully controlled by Beijing,
promoted illicit drug use in the
United States.
A lot of these fentanyl producers
are state owned.
The Chinese central government
gives subsidies for the production
of fentanyl.
This is just a story that we've
got to recognize.
And one more thing, if I can.
Xi Jinping has made four
promises to American presidents
to stop the fentanyl trade.
To Obama in 2016,
to Trump in 2018,
to Biden in 2023,
and to Trump in 2025.
And he's violated all of those
promises, including the
2025 promise, as we know from
President Trump's own drug czar,
Sarah Carter.
So we need to get real about this
and we cannot allow the Chinese to
kill Americans.
It is just not only a strategic
issue, it's a moral issue.
Gordon Chang, thank you so much for
joining me today.
I appreciate your time and
expertise.
Thank you, Kelly.