NEW: White House reveals NEW DETAILS on Xi meeting

[0:01] PRESIDENT TRUMP NEARING THE END OF HIS HIGH-STAKES VISIT TO CHINA NOW. [0:04] HE KEPT HIS WORD ON HAVING THAT LONG PRIVATE MEETING WITH PRESIDENT XI. [0:08] THEY SAT DOWN FOR MORE THAN TWO HOURS. [0:10] PRESIDENT TRUMP SAYS IT WAS EXTREMELY PRODUCTIVE. [0:13] I'M HARRIS FAULKNER. [0:14] YOU ARE IN THE FAULKNER FOCUS. [0:16] PRESIDENT TRUMP IS NOW REVEALING MORE ABOUT HIS PRIVATE CONVERSATION WITH XI. [0:21] HERE HE IS WITH SEAN HANNITY IN AN INTERVIEW THAT WILL AIR IN FULL TONIGHT. [0:26] PRESIDENT XI WOULD LIKE TO SEE A DEAL MADE. [0:28] HE WOULD LIKE TO SEE A DEAL MADE. [0:30] HE SAID IF I CAN BE OF ANY HELP AT ALL, I WOULD LIKE TO BE OF HELP. [0:37] HE DID SAY THAT. [0:37] YEAH, HE DID SAY THAT. [0:38] AND LOOK, ANYBODY THAT BUYS THAT MUCH OIL HAS OBVIOUSLY GOT SOME KIND OF A RELATIONSHIP WITH HIM. [0:44] BUT HE SAID I WOULD LOVE TO BE OF HELP. [0:46] IF I CAN BE OF ANY HELP WHATSOEVER, HE'D LIKE TO SEE THE HORMOS STRAIGHT OPEN. [0:52] HE SAID IF I CAN BE OF ANY HELP WHATSOEVER, I WOULD LIKE TO HELP. [0:55] THE WHITE HOUSE SAYS THE TWO LEADERS TALKED ABOUT WAYS TO ENHANCE ECONOMIC COOPERATION [1:00] IN THE FLOW OF FENTANYL PRECURSORS INTO THE UNITED STATES, AND THEY AGREED, AGAIN, [1:05] AS THE PRESIDENT JUST POINTED OUT, THAT THE STRAIGHT NEEDS TO BE FREE AND OPEN AS A WATERWAY. [1:09] SHE ALSO, THOUGH, EXPRESSED INTEREST IN PURCHASING MORE AMERICAN OIL [1:14] TO REDUCE CHINA'S DEPENDENCE ON THE STRAIGHT OF HORMOUZ IN THE FUTURE. [1:18] THE WHITE HOUSE SAYS BOTH LEADERS AGREED IRAN CAN NEVER HAVE A NUCLEAR WEAPON. [1:24] HERE'S SECRETARY OF STATE MARCO RUBIO. [1:28] ECONOMIES ARE MELTING DOWN BECAUSE OF THIS CRISIS IN THE STRAIGHTS. [1:31] THEY'RE GOING TO BE BUYING LESS CHINESE PRODUCT, AND THE CHINESE EXPORTS ARE GOING TO DROP [1:35] PRECIPITOUSLY. [1:36] SO IT'S IN THEIR INTEREST TO RESOLVE THIS. [1:38] WE HOPE TO CONVINCE THEM TO PLAY A MORE ACTIVE ROLE IN GETTING IRAN TO WALK AWAY FROM WHAT THEY'RE DOING [1:43] NOW AND TRYING TO DO NOW IN THE PERSIAN GULF. [1:45] NOW, YOU MAY RECALL IN 2017, PRESIDENT TRUMP AGAIN GOT THE FULL STATE VISIT TREATMENT IN BEIJING. [1:52] HOWEVER, SOME OBSERVERS NOW ARE SAYING THIS VISIT FEELS MORE PERSONAL. [1:57] TRUMP AND SHE SMILED, SHOOK HANDS, AND WALKED THROUGH THE CEREMONY TOGETHER. [2:01] THE IMAGES ARE WARMER, BUT THE STAKES ARE HIGHER. [2:05] STEVE YATES, A FORMER DEPUTY NATIONAL SECURITY ADVISOR TO VICE PRESIDENT DICK CHENEY IS COMING UP IN FOCUS. [2:11] LET'S BEGIN WITH SENIOR WHITE HOUSE CORRESPONDENT JACKIE HEINRICH IN BEIJING. [2:16] JACKIE. [2:19] HARRIS, CHINA REALLY SPARED NO EXPENSE ROLLING OUT THE RED CARPET FOR PRESIDENT TRUMP. [2:24] HE WAS ALSO A VERY GRACIOUS GUEST HERE. [2:27] HOWEVER, AT THE STATE BANQUET, THERE WERE ALSO WARNINGS FROM XI THAT WERE WRAPPED UP IN [2:33] PLEASANTRIES. [2:33] AND IN THE CHINESE READOUT OF THE BILATERAL MEETING, THERE WAS MORE OF A DIRECT THREAT EVEN. [2:38] HE CALLED TAIWAN THE MOST IMPORTANT ISSUE FOR U.S.-CHINA RELATIONS, SAYING IF IT ISN'T [2:43] HANDLED PROPERLY, QUOTE, THE TWO COUNTRIES WILL HAVE CLASHES AND EVEN CONFLICTS, PUTTING THE [2:48] ENTIRE RELATIONSHIP IN GREAT JEOPARDY. [2:50] TAIWAN INDEPENDENCE AND CROSS STRAIGHT PEACE ARE AS IRRECONCILABLE AS FIRE AND WATER. [2:55] THE U.S. SIDE MUST EXERCISE EXTRA CAUTION IN HANDLING THE TAIWAN QUESTION. [3:01] NOW, WE WERE THINKING FROM THAT STATEMENT, IT WAS LIKELY THAT TRUMP DID NOT GIVE XI WHAT HE WANTED ON TAIWAN. [3:07] AND AN INTERVIEW WITH MARCO RUBIO JUST IN A LITTLE WHILE AGO INDICATES THAT THE U.S. DID NOT, [3:12] AS EXPECTED, CHANGE ITS POSITION. [3:14] CHINA, THOUGH, WAS EXPECTED TO DANGLE SOME HELP WITH IRAN IN EXCHANGE FOR SOME MOVEMENT ON [3:18] THE TAIWAN ISSUE. [3:20] ACCORDINGLY, CHINA'S READOUT MAKES NO MENTION OF IRAN. [3:23] BUT THE WHITE HOUSE READOUT SAYS PRESIDENT XI ALSO MADE CLEAR CHINA'S OPPOSITION TO MILITARIZATION [3:28] OF THE STRAIGHT AND ANY EFFORT TO CHARGE A TOLL FOR ITS US. [3:30] AND HE EXPRESSED INTEREST IN PURCHASING MORE AMERICAN OIL TO REDUCE CHINA'S DEPENDENCE ON [3:36] THE STRAIGHT IN THE FUTURE. [3:37] NOW, IT'S NOT CLEAR WHETHER MORE PURCHASES OF AMERICAN OIL WILL RESULT IN FEWER CHINESE [3:42] PURCHASES OF IRANIAN OIL. [3:43] BUT TREASURY SECRETARY SCOTT BESSEN INDICATED THE U.S. DOESN'T REALLY NEED CHINA'S HELP. [3:50] I THINK THEY'RE GOING TO DO WHAT THEY CAN. [3:53] AND HERE, CHINA HAS A MUCH BIGGER INTEREST IN REOPENING THE STREET THAN THE U.S. DOES. [4:01] CHINA GETS ABOUT A THIRD OF ITS ENERGY NEEDS FROM THE GULF. [4:06] THE MAIN LOADING FACILITY FOR IRANIAN OIL IS A FACILITY CALLED KARG ISLAND. [4:11] WE'VE SEEN THAT THERE HAVE BEEN NO LOADINGS IN THE PAST THREE DAYS. [4:15] WE BELIEVE THEIR STORAGE IS FULL. [4:17] THEY'RE GOING TO START SHUTTING DOWN THEIR PRODUCTION. [4:19] WE CAN SEE THAT THAT'S HAPPENING FROM SATELLITE PHOTOS. [4:26] NOW, CHINA'S READOUT ALSO MENTIONS THAT XI REFERENCED THE THUCIDIDES TRAP IN HIS MEETING, [4:31] WHICH REFERENCES HOW TENSIONS BETWEEN A RULING POWER AND A RISING POWER HAVE OFTEN RESULTED IN WAR HISTORICALLY. [4:38] THOSE ARE SOME SHARP WORDS. [4:40] AND IN THE BACKDROP OF ALL THIS, RUSSIA JUST PIPED UP TO REMIND FOLKS THAT THEY ARE FRIENDS WITH CHINA, TOO, [4:45] SAYING THAT PUTIN WILL BE COMING HERE IN THE VERY NEAR FUTURE, HARRIS. [4:49] YEAH, MAKING IT LOOK A LITTLE BIT MORE LIKE A PLAYYARD, UNFORTUNATELY, THAN THE WORLD STAGE ACTING LIKE THAT. [4:55] JACKIE, THANK YOU VERY MUCH. [4:57] IN FOCUS NOW, STEVE YATES, FORMER DEPUTY NATIONAL SECURITY ADVISOR TO VICE PRESIDENT CHENEY. [5:02] HE'S ALSO HERITAGE FOUNDATION SENIOR RESEARCH FELLOW FOR CHINA. [5:06] GREAT TO HAVE YOU TODAY. [5:08] FIRST OF ALL, WHAT DO THE AMERICAN PEOPLE GET OUT OF THIS VISIT TO CHINA? [5:14] WELL, HARRIS, VERY, VERY IMPORTANT QUESTION. [5:16] I THINK THE FIRST CHALLENGE THE AMERICAN PUBLIC IS GOING TO NEED TO HAVE IS SORT OF SUSPEND DISBELIEF [5:21] ABOUT WHAT THE WORDS ARE EXCHANGED AND LET'S WATCH CAREFULLY WHAT ACTIONS FOLLOW. [5:25] THERE'S A LOT OF THEATER THAT GOES INTO EXCHANGES WITH CHINA, MAYBE WITH EVERY COUNTRY, [5:29] BUT ESPECIALLY WITH CHINA, SOME OF THE WORDS THAT XI JINPING IS EXPRESSING PERSONALLY [5:34] SOUND REASSURING, THEY COULD BE REASSURING, AND THEN, AS YOUR REPORTING ACCURATELY GAVE, [5:40] SOME OF THE OFFICIAL BORG TALK THAT COMES FROM THE BUREAUCRACY HAS A BIT MORE FANGS IN THE SMILE [5:46] THAN THE PLEASANTRIES THAT CAME FROM XI JINPING WERE. [5:48] THAT'S JUST A REMINDER THAT THE CHINESE COMMUNIST PARTY IS A SYSTEM, IT'S NOT AN INDIVIDUAL. [5:52] XI JINPING HAS A LOT OF POWER, BUT ULTIMATELY IT'S A SYSTEM, AND THAT'S A CHALLENGE FOR ANY [5:56] AMERICAN INTERLOCULAR TRYING TO NEGOTIATE. [5:58] LOOK, PEOPLE ARE LOOKING AT GAS PRICES, THEY HEAR THAT MAYBE SOMEBODY WOULD LIKE TO ALSO [6:02] JOIN US IN, YOU KNOW, OPENING A FREE WATERWAY IN THE STRAIGHT OF HORMOOZ. [6:08] ACTUALLY, THE WORDS, AS YOU SAID, SOUND BETTER THAN SOME OF THE WORDS THAT WE'VE HEARD FROM MEMBERS [6:13] OF NATO ON THAT ISSUE. [6:15] ODD IRONY IN THAT, FOR SURE, HARRIS. [6:18] BUT HERE'S AN EXAMPLE OF WHERE CHINA'S EXTENSION OF POWER AT DISTANCE IS NOT WHAT PEOPLE MIGHT THINK. [6:25] THEY HAVE NOT ACTUALLY EXERCISED THAT MUCH INFLUENCE. [6:28] THEY WERE PART OF THE PROBLEM, OBVIOUSLY, BUYING A LOT OF ILLICIT OIL THAT WAS UNDER [6:32] SANCTIONS BECAUSE OF IRAN BEING THE LARGEST STATE SPONSOR OF TERROR. [6:37] AND THEY HAVEN'T EXACTLY EXERCISED INFLUENCE. [6:40] AND PROBABLY, AS GENERAL JACK KEENE HAS INTIMATED, DON'T REALLY WANT THAT REGIME TO GO AWAY. [6:44] THEY'VE HAD DECADES OF RELATIONS WITH IT. [6:47] SO THIS IS WHERE I THINK THE PRESIDENT IS PROBABLY MAKING SOME PRESSURE POINTS AND INDUCEMENT POINTS. [6:52] AND WE'LL SEE WHETHER THE CHINESE ADJUST, BUT REALLY THIS IS THE DISPARITY. [6:56] AMERICA IS A WORLD SUPERPOWER, EXERCISING, SHAPING INFLUENCE. [7:01] CHINA IS SOMEWHAT OF A TACTICAL INFLUENCER. [7:04] SO ON TACTICS, MAYBE THE PRESIDENT CAN GET SOME PROGRESS. [7:07] INTERESTING. [7:07] AND THEY'VE KNOWN EACH OTHER FOR A PERIOD OF TIME. [7:10] SO THAT PRIVATE CONVERSATION, EVEN THOUGH THERE MAY BE SOME SHARED MOMENTS, [7:14] I'M SURE THERE'S SOME THAT WON'T BE SHARED. [7:16] INDEED. [7:16] JACKIE MENTIONED THE COMMENT FROM PRESIDENT XI JINPING. [7:21] HE SAID THE MEETING BETWEEN THE U.S. AND CHINA PUTS THE WORLD AT A DELICATE INFLECTION. [7:25] WATCH THIS. [7:25] THE WORLD HAS REACHED A NEW CROSSROADS WHETHER CHINA AND THE UNITED STATES CAN OVERCOME [7:33] THE SO-CALLED THUCIDIDES TRAP AND CREATE A NEW PARADIGM OF GREAT POWER RELATIONS WHETHER WE CAN WORK [7:41] TOGETHER TO ADDRESS GLOBAL CHALLENGES AND INJECT MORE STABILITY INTO THE WORLD. [7:48] WHAT DOES THAT MEAN TO YOU? [7:50] WELL, THE THUCIDIDES TRAP NARRATIVE REALLY HAS COME OUT OF CHINA. [7:53] IT'S BEEN ECHOED AND AMPLIFIED BY A FAMOUS HARVARD ACADEMIC. [7:57] AND I THINK IT'S BEEN PRETTY POWERFULLY REBUTTED BY VICTOR DAVIS HANSEN WHO IS A CLASSICIST [8:03] SUPREME BUT ESSENTIALLY WHAT IT'S PART OF THE CHINESE NARRATIVE THAT THEY'RE ON THEIR RISE [8:07] SOMEWHAT INEVITABLY AND THAT AMERICA AND THE WEST ARE BROADLY ON DECLINE. [8:11] IT'S SORT OF A HINT TO THE WORLD MAYBE YOU OUGHT TO MAKE A DEAL FOR THE SIDE THE ELEVATOR IS GOING [8:15] UP ON BUT THE REALITY I THINK PRESIDENT TRUMP HAS DONE A GOOD JOB OF SHIFTING THAT NEGOTIATING TABLE. [8:21] AMERICA HAS DIFFERENT RELATIONS IN THE BROADER MIDDLE EAST. [8:25] AMERICA HAS HAD POWERFUL INFLUENCE ON ENERGY FLOWS. [8:28] KEY CHOKE POINTS LIKE THE PANAMA CANAL, STRAITS OF HORMUZ, STRAITS OF MALACA, ALL REALLY HEAVILY [8:33] INFLUENCE BY AMERICA AT SOME LEVEL SHE HAS TO KNOW THAT REALITY NOT THE ACADEMIC VERSION THAT THE CENTRAL [8:38] PARTY SCHOOL IS GIVING ABOUT THUCIDIDES. [8:41] WELL LOOK AND STEVE I MEAN IF YOU TAKE A LOOK AT A MAP TODAY OF THE STRAIGHT OF HORMUZ AND THE GULF [8:46] COAST OF THE UNITED STATES THEY'RE VERY DIFFERENT RIGHT NOW. [8:50] YES THERE'S A U.S. BLOCKADE ON SO THAT'S WHAT WE'RE CAPABLE OF DOING AND YES THERE IS A WHOLE LOT [8:56] OF COMMERCE GOING ON WITH OIL REFINING AND SELLING IT OFF THE COAST OF THE UNITED STATES THE GULF COAST THAT [9:02] HEAVY CRUDE THAT'S COMING THROUGH VENEZUELA SO THE GAME HAS CHANGED. [9:07] I DON'T KNOW IF CHINA WANTS TO PUBLICLY SAY THAT BUT YOU KNOW THEY SEE IT. [9:12] AND ONE INDICATION OF THAT HARRIS IS THE STATEMENT THAT CHINA HAS AGREED TO BUY MORE FROM AMERICA ON ENERGY. [9:20] THAT IS AN INTERESTING FLIPPING OF THE SCRIPT WHERE THEY TRIED TO HOLD OUT RARE EARTHS AS A CRITICAL VULNERABILITY. [9:26] I THINK PRESIDENT TRUMP IS PRETTY EFFECTIVELY EXPOSED THAT THEY HAVE SOME MASSIVE VULNERABILITIES AND DEPENDENCIES. [9:31] THEY NEED ACCESS TO AMERICA'S CONSUMERS BADLY. [9:34] THEY DON'T FUNCTION WITHOUT IT AND THEY HAVE HUGE DEPENDENCIES ON ENERGY AND AMERICA IS PART OF THE SOLUTION. [9:39] REAL QUICKLY, TAIWAN AND KIND OF A WARNING SHOT FROM XI SAYING YOU KNOW IF YOU MISHANDLED OUT THE UNITED STATES THERE COULD BE CONFLICT. [9:47] NOW IN MY LIFETIME THERE'S BEEN A VARIATION OF THAT STATEMENT IN EVERY PRESIDENTIAL EXCHANGE. [9:52] THE CHINESE DELIVER IT FROM TOP TO BOTTOM. [9:54] IT'S EMPIRICALLY NOT TRUE THAT TAIWAN IS THE MOST IMPORTANT ISSUE IN U.S.-China RELATIONS. [10:00] THERE ARE SEVERAL OTHERS THAT ARE QUITE BIG BUT IT IS A POTENTIAL FLASHPOINT AND I THINK SO FAR ALL INDICATIONS THE PRESIDENT HANDLED IT EXACTLY AS HE SHOULD, JUST SHIFT TO OTHER TOPICS AND EMPHASIZE COOPERATION ELSEWHERE. [10:11] STEVE YATES, ALWAYS GREAT TO HAVE YOU IN FOCUS.