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U.S. House to Send Articles of Impeachment to the Senate; Democrats Release New Documents ahead of Impeachment Trial; Entire Russian Government Resigning amid Putin's Reforms; Video Shows Two Iranian Missiles Hitting Passenger Plane; Trump to Sign "Phase 1" Agreement with China. Aired 11a- 12p ET
Aired January 15, 2020 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
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BECKY ANDERSON, CNN HOST: This hour, we now know who will be making the impeachment case against Donald Trump. What we don't know this hour is who
will be running Russia going forward after the entire government there resigned.
It is 11:00 am in D.C., it's 7:00 pm in Moscow, 8:00 in the evening at our Middle East programming hub in Abu Dhabi.
Washington's impeachment gridlock broken this hour. The final stage of the U.S. president's impeachment soon to be underway. Last hour House Speaker
Nancy Pelosi announced the people known as the impeachment managers, the House members who will prosecute the case.
You're seeing all seven of them here. Four men, three women from across the country. More on why that diversity is important in a moment. First up,
Nancy Pelosi on why this day is so important.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: Today is an important day, because today is the day that we name the managers. We go to the floor to
pass the resolution to transmit the articles of impeachment to the Senate.
And later in the day when we have our engrossment, that we march those articles of impeachment to the United States Senate.
(END VIDEO CLIP)
ANDERSON: Well, one of those managers, Jerry Nadler, also spoke at the news conference, urging the Senate to conduct a fair trial.
(BEGIN VIDEO CLIP)
REP. JERRY NADLER (D-NY): The Senate is intended by the Constitution to conduct a fair trial. The American people know that, in a trial, you permit
witnesses. You present the evidence.
If the Senate doesn't permit the introduction of all relevant witnesses and of all documents that the House wants to introduce -- because the House is
the prosecutor here -- then the Senate is engaging in an unconstitutional and disgusting coverup. So the question is, does the Senate -- the Senate
is on trial as well as the president.
(END VIDEO CLIP)
ANDERSON: The president quick to respond to the Democrat leaders, tweeting here we go again. Another con job by the do nothing Democrats. All of this
work was supposed to be done by the House, not by the Senate.
Let's head straight to Capitol Hill where CNN's Athena Jones is standing by in New York; legal analyst and regular on this show, Elie Honig.
Athena, what do you make of what you heard earlier by Nancy Pelosi and those with her today?
ATHENA JONES, CNN NATIONAL CORRESPONDENT: Well, this is the first of several historic moments you're going to see just today as we finally see
lawmakers begin the next and last phase of the impeachment process, which is transmitting the articles over to the Senate, delivering them to the
Senate.
What we heard when she announced the seven House impeachment managers was important. You played some of it. These are seven members of the House who
will be the prosecutors in the Senate trial. They'll make the case against President Trump in the Senate.
And almost all of them are lawyers. So you heard one of them is a former chief of police in Orlando, Florida. But the rest are lawyers. And you
heard Speaker Pelosi say the emphasis here is on litigators. That is because you have to have a level of comfort in a courtroom.
She said the emphasis is on making the strongest possible case to protect and defend the Constitution. We heard several of those impeachment managers
make the case that, while Senate majority leader McConnell -- the Senate is controlled by Republicans. Mitch McConnell will have a say on how it goes.
But Congressman Adam Schiff, chair of the House Intelligence Committee, one of the managers, that is the committee that did the -- carried out the
impeachment inquiry in the House. He says Mitch McConnell is saying the Senate should only consider the evidence already presented in the House
process. So essentially a closed record.
Schiff says that's like saying this trial in the Senate is not a trial but the appeal of a trial. That is when you would have a case where the record
is closed. You can't consider new evidence like the documents that have been presented by Lev Parnas, that associate of Rudy Giuliani's, involved
in the efforts in Ukraine.
[11:05:00]
JONES: If McConnell wants to keep out the new evidence and the new witnesses, that's not a fair trial. The Americans know a fair trial means,
witnesses and documents. If McConnell wants to keep the evidence out, it's going to amount to a coverup.
You can see the messaging the Democrats are wanting to drive home. That is the idea that, in order to have a real trial, a fair trial, which most of
the American people expect, they're going to want to see witnesses and documents.
And of course, we said today, this begins the process that has several ceremonial steps. The House is going to be voting on these impeachment
managers and voting to transmit the articles and then this afternoon we could see a ceremonial moment that's interesting, to see the House managers
physically, literally march those impeachment articles over to the Senate to be read there on the Senate floor.
Today is a big day. Sort of the beginning of the end, I guess you could say, of the impeachment process.
ANDERSON: Not the beginning of the end of the U.S. president, who is very likely to be acquitted in this.
Elie, several Senate Republicans have said they want witness testimony to be part of the impeachment trial and the name of John Bolton being raised
who has, of course, said that he is willing to do that should it be necessary.
Is it likely?
ELIE HONIG, CNN LEGAL ANALYST: It's becoming increasingly likely. I think if you asked me that a week ago, I would have said no. Let's set the stage.
There's 53 Republicans in the U.S. Senate and 47 Democrats plus independents who caucus with the Democrats.
If we're talking about a majority vote -- and that does control many of the evidentiary issues -- then the question is are four or more Republicans
going to flip over?
I think with the steady drumbeat of new evidence, new revelations coming out, largely through journalism and public reporting, I think the pressure
has increased to the point where it's getting really difficult for some of these senators, especially those who are from sort of closely contested
states, to say we don't need any witness.
Let's just do some legal procedure, some political maneuvering and call it a day. I think the call for witnesses is becoming stronger and stronger and
I think the political momentum is pushing that way.
ANDERSON: What comes next in the impeachment process?
It's very much now the question of the day. Next hour, as I understand it, the House will debate and vote on the impeachment managers. The articles of
impeachment will then be delivered to the Senate later this evening with the trial likely to begin next Tuesday.
And of course, the Democrats suggesting it is the upper chamber, the Senate, as well as the president who is now on trial. Much made of the
diversity of these Democrat prosecutors, four men, three women.
What do you make of that lineup?
HONIG: So I think the House Democrats did a really good job, a smart job of choosing their team of impeachment managers. First of all, they kept the
team relatively small. Back in the Clinton impeachment, there were 13 House managers, essentially 13 prosecutors. That is unwieldy. That's too many.
That's more than you need.
In criminal prosecutions, even the most complex cases have three, maximum four prosecutors. So I think it was smart to keep the group to seven. I
think it was smart to really focus on litigators or someone who is an experienced law enforcement officer and interrogator.
It shows me the Democrats intend to fight this thing. They're looking at substance and they're not just looking for sort of a political show person
to go out and be dramatic. They want people ready to dig in and fight. I think they did a smart job in choosing these particular House managers.
ANDERSON: Stand by, sir. I want to bring in Kara Scannell.
House Democrats planning to send some new evidence to the Senate. Described as disturbing.
What exactly does this new evidence show, Kara?
KARA SCANNELL, CNN CORRESPONDENT: Right. This is the evidence that Lev Parnas, one of Giuliani's associates, had provided to the House Democrats.
They released some of this information publicly late last night. And this information is going to be transmitted when they make the transmission
later today.
In this, we learned a couple of things. We see there are new documents that they revealed and text messages. Within the documents, there is a letter
that Rudy Giuliani, the president's attorney, had sent to the president- elect of Ukraine, Zelensky, asking to set up a meeting.
Giuliani notes he was doing it with the knowledge and consent of the president of the United States. So this is the first document that we've
seen that shows that Trump was involved in what Giuliani was doing, if anyone were to argue that Giuliani was freelancing, so to speak.
We've also seen -- and this is where it's a dark turn that we've learned through the text messages.
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SCANNELL: There's a new person who entered this, Robert Hyde. He's a candidate for a congressional seat in Connecticut. He exchanged text
messages with Lev Parnas, where he suggests he is surveilling Marie Yovanovitch, the U.S. ambassador at that time, as they were discussing that
she needed to go, she needed to be fired.
And through the text messages he's talking about that they know that she's had visitors. It looks like she made three phone calls and he says her
phone and computer have turned off.
It raises a lot of questions of why and how he knew this information. And there's another exchange with Hyde and Parnas where Hyde says something
about money and if they want us to do something, we can do it.
That has the hint of some kind of nefarious plot. There are no additional details. As we're talking about witnesses and documents, you heard earlier
from the chairman of the House Intelligence Committee who led the investigation, Adam Schiff, talk about the importance of having documents
like the ones they have in their turning over.
Let's listen to what he said.
(BEGIN VIDEO CLIP)
REP. ADAM SCHIFF (D-CA): Witnesses may tell the truth and witnesses may not tell the truth. Documents don't generally lie.
And in the documents that we submitted to the Judiciary Committee just last night, you see the importance of documents because included among the
Parnas documents is a letter from Giuliani, trying to set up a meeting with the president of Ukraine, Zelensky, to discuss a particular matter.
(END VIDEO CLIP)
SCANNELL: And you see there with Schiff, focusing in on this one letter we saw last night. This is part of a very large document dump that the team
has given to the House. They're still culling through that. It remains to be seen if we're going to learn more information, new revelations. We don't
know at this stage.
ANDERSON: All fascinating stuff.
To all of you, thank you. This is the stuff that history is made of, folks. Well worth drilling down on exactly how this impeachment trial works.
And what makes it different from a criminal trial?
Friends of the show, Elie Honig we just spoke to and Sam Vinograd now explain.
(BEGIN VIDEOTAPE)
PELOSI: Article I is adopted.
HONIG: In our nation's history, there have been only two impeachment trials of a sitting president. But no president has ever been convicted and
removed from office. In 1868, Andrew Johnson was tried on articles of impeachment relating to his fire of his War Secretary Edward Stanton.
The Senate acquitted Johnson, found him not guilty, falling a single vote shy of the required two-thirds majority to convict and remove him.
Over a century later in 1999, the Senate tried president Bill Clinton on articles of impeachment for perjury and objection of justice relating to an
affair with Monica Lewinsky.
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I did not have sexual relations with that woman.
HONIG: The Senate acquitted Clinton on both counts.
SAMANTHA VINOGRAD, CNN NATIONAL SECURITY ANALYST: So how does this work?
The U.S. Constitution lays out the impeachment process.
HONIG: The House of Representatives holds hearings to decide whether or not to impeach.
VINOGRAD: If a simple majority of the House decides to impeach, the case goes to the Senate for a full impeachment trial.
While we call the Senate meetings trial, they're actually very different from a criminal trial in five key ways.
First, the jury: in a Senate impeachment trial, all 100 U.S. Senators serve as jurors. Unlike a criminal case, they don't need a unanimous decision. A
super majority of at least two-thirds is required to remove a president from office.
UNIDENTIFIED MALE: William Jefferson Clinton, President of the United States, now pending.
VINOGRAD: Senators must take an oath to be impartial but there's no way to enforce that; while in a criminal trial, any impartial juror can be
removed.
HONIG: Second, the burden of proof: in a criminal trial the prosecutor must prove the case beyond a reasonable doubt. That is the highest burden
of proof known to our legal system.
But in a Senate impeachment trial, there's no such requirement. It's up to each individual senator to determine how much evidence is enough to
convict.
VINOGRAD: Third, the rules: in a criminal trial there are detailed rules about certain kinds of secondhand information that aren't allowed. And
trials follow procedure, from opening statements to questioning witnesses and closing arguments.
But in the Senate, it will be up to the senators to decide on the procedures. And there's no prosecutor. House managers, usually members of
the House of Representatives, are appointed by the House and serve the role of the prosecutor.
SEN. LINDSEY GRAHAM (R-SC): We need witnesses.
HONIG: Fourth, the judge: the Constitution requires that the chief justice of the Supreme Court preside over a Senate impeachment trial of the
president. In the current Supreme Court, that would mean Chief Justice John Roberts would preside.
VINOGRAD: Fifth, the punishment: usually a defendant in a criminal case faces imprisonment. But, if convicted, the punishment a president faces is
removal from office and being banned from ever holding office again.
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HONIG: With only two models in U.S. history of how a Senate impeachment trial might unfold, there's a lot we don't know about what could happen.
One thing is for certain. It will not look like a typical criminal trial.
(END VIDEOTAPE)
ANDERSON: It's going to be an eventful day on Capitol Hill. Don't worry. If you miss anything, CNN has got it covered for you. You can read the
latest political news as it happens. That is on our live impeachment blog at cnn.com/politics.
We'll take a short break, back after this.
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ANDERSON: The entire Russian government is resigning. Yes, you heard that right. It was announced a short time ago by the prime minister Dmitry
Medvedev.
The surprise decision comes after President Putin proposed reforms that would weaken whoever becomes president next, shifting some presidential
powers to the office of the prime minister and parliament.
Mr. Putin is set to leave office at the end of his term in 2024. The prime minister explained the government is resigning to make way for these
constitutional changes.
(BEGIN VIDEO CLIP)
DMITRY MEDVEDEV, RUSSIAN PRIME MINISTER (through translator): We'll bring significant changes, not only to the entire range of articles of the
constitution but also to the balance of power as a whole, the executive branch, the legislative branch, the judicial branch.
In this context, it's obvious that we as the government should provide the president of our country with the opportunity to make all the decisions
necessary for this.
(END VIDEO CLIP)
ANDERSON: Well, Fred Pleitgen is in Moscow with more on this.
And this does appear to be a power shift that's long been speculated about in Russia.
Why is Mr. Putin interested in weakening his successor?
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, there's a lot of people speculating that it could be because he might be trying to
make a move to somehow retain power after 2024 when he's scheduled to step down because that would be the end of his second term of the second time
that he's been in office.
He might be trying to weaken the presidency to retain some sort of official role to make sure that he still has some sort of standing. It was very
interesting for him to announce this.
[11:20:00]
PLEITGEN: And to say that it would be the parliament that in the future would then elect the prime minister and that the president would have to
accept that.
I do, Becky, just now have some breaking news for you because Vladimir Putin has already put forward a candidate for the new prime minister after
Dmitry Medvedev stepped down.
It says, "President Vladimir Putin held a working meeting with Mikhail Mishustin and invited him to take the post of prime minister."
He's the head of Russia's federal tax service, whom Vladimir Putin appears to be tapping to be the next prime minister. The interesting thing about
this is exactly what we were just talking about, the fact that Vladimir Putin said that, in the future, the parliament would be the one to elect
the prime minister.
The next sentence of the alert said, "With his consent -- Mishustin's consent -- "Vladimir Putin submitted his candidacy for the post of prime
minister for consideration by the state duma," so by the parliament.
Vladimir Putin seeming to follow his own guidelines he put in place. Earlier today was the state of the union address by Vladimir Putin where he
talked a little bit about what the succession would look like, what future presidents would have to deal with and the fact that they would only be
able to have two consecutive terms and would have to step down. Let's listen to a little bit of what Vladimir Putin had to say.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): I know there's a constitutional provision being discussed in our society that the same
person should not be president for more than two consecutive terms. I don't think this is a fundamental issue. But I agree with that.
(END VIDEO CLIP)
PLEITGEN: Shortly after Vladimir Putin held that state of the union address, that then Dmitry Medvedev came out and there was video showing him
having a discussion with Vladimir Putin and announcing his resignation.
Vladimir Putin accepted that resignation but also said that he would speak with all of the members of the current cabinet, which stays on in a
caretaker role, and see whether or not they could have a role in a future cabinet coming up.
So Vladimir Putin already shifting things around. But the big breaking news that we have just now is that Vladimir Putin has already put forward a new
candidate to be the next prime minister.
ANDERSON: As my father would say, you always need a good accountant in your life. But I'm not sure that's what the Russian president is getting at
there. Thank you. That's Fred Pleitgen.
New developments in the investigation of Iran's shootdown of a Ukrainian passenger jet near Tehran that killed all 176 people on board. "The New
York Times" posted a video that appears to show two missiles hitting the plane.
Iran has claimed only one missile was fired. This is the video.
(BEGIN VIDEO CLIP)
ANDERSON (voice-over): I must warn you, it is sensitive material. "The Times" says this is security camera footage taken from a rooftop several
kilometers away from an Iranian military site. You can see the first missile highlighted and streaking through the sky. Eventually the missile
strikes the plane.
Within 30 seconds, a second missile appears, heading in the same direction and eventually hitting the plane. Iran's state media acknowledged the video
today but says it has the wrong date stamp. "The Times" says the discrepancy could be due to the differences in how leap years and days are
counted between the Persian and Gregorian calendars. Nic Robertson is here with me, our international diplomatic editor.
What do you make of what we've seen?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It's striking coming on a day when we've heard from the foreign minister, Javad Zarif, saying
that people in Iran are angry because they were lied to for just a couple of days.
And juxtapose that with what the president said in Iran today, which is we need to have transparency. We promise transparency.
Yet it was the president was the only one, who in his very first tweet when the government was admitting they shot down the plane, mentioned missiles.
Since then, it's all been about a missile.
So this transparency and this apparent caring of the anger of people on the streets seems to fly in the face of the narrative that's been presented by
the Iranian government.
I think it was telling that, even before the Iranian government announced this, we knew that the evidence was building up. And, indeed, CNN had, from
two -- from sources within the Pentagon, that two missiles had been fired back then.
But even then, with that evidence out there, the Iranians only ever spoke of one. And it doesn't speak to faith and confidence in their ongoing
investigation.
ANDERSON: The background to all of this, the Iranians say, is the heightened atmosphere as a result of the U.S. ratcheted-up U.S.-Iran
tensions.
[11:25:00]
ANDERSON: Now Iran's president Hassan Rouhani is, today, saying the following.
"Today the American soldier is not safe here and tomorrow it may be the European soldier who might not be safe."
This coming a day after the U.K., France and Germany triggered a process that could lead to the quick scrapping of the nuclear deal.
What do you make of what we heard today?
ROBERTSON: Posturing. They're still finding their position. The foreign minister yesterday said they were yet to come up with an answer. But it was
unconstructive and it's been a negative pushback so far.
We've heard from the French foreign minister, speaking in France, saying this is a moment of concern, that perhaps this nuclear agreement could go
bust if Iran doesn't accept and get into this diplomatic process.
But also you get a sense as well from what the foreign minister is saying in Iran, they're trying to isolate Britain from this Britain, France and
Germany. They've been coordinated since the United States pulled out of the deal.
They've been very coordinated and trying to find economic mechanisms to allow Iran to get -- to escape some of the worst of the sanctions. So Iran
hasn't given a position but they are trying to sort of push Britain away from France and Germany, you know, divide the enemy here.
ANDERSON: The last Democratic debate before the Iowa caucuses hosted by CNN and "The Des Moines Register" and Iran became a heated topic of
discussion during that debate. Have a quick listen, Nic.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENTIAL CANDIDATE: I think he's flat out lied about saying the reason he went after -- the reason he made the strike was
because our embassies were about to be bombed.
SEN. BERNIE SANDERS (D-VT), PRESIDENTIAL CANDIDATE: Right now what I fear very much is we have a president who is lying again and could drag us into
a war that is even worse than the war in Iraq.
(END VIDEO CLIP)
ANDERSON: "Trump derangement syndrome" is how some Republicans are describing the way that the Democrats across the board have responded to
Donald Trump's actions with regard to Iran.
Is there any sense, do you think, that this very sort of partisan reaction is simply that, a partisan reaction?
Or whether we're seeing any sort of move on the needle here as we listen -- and it's good to hear foreign policy being discussed and debated during
these sessions.
ROBERTSON: I think if you're the United States ally in this region at the moment, then you recognize that because the politics are so partisan and
divided in the United States, that consistency for the United States and being able to trust in the United States in any particular president isn't
something you can particularly rely on.
That the next president, if he's from the other party, could take different decisions. While there's such a discussion in the United States about the
precise reasons the United States killed Qasem Soleimani, in this region, there's a sense that well, OK, maybe in terms of sequencing, it kind of
escalated things very quickly.
But this was something that was actually long overdue and necessary to curb Iran and send a very clear message to Iran. So I think -- I do think
there's a sense here that this undermines the U.S. in the eyes of the allies and weakens its position internationally.
ANDERSON: Fascinating. Nic, it's always a pleasure, thank you for joining us, our international diplomatic editor here with analysis, extremely
important for you.
Moments from now, putting a lid on simmering trade tensions. President Trump set to hold the ceremonial signing of a U.S.-China trade deal in this
very room in Washington.
What's in the deal?
That's a very good question. We're going to try to put some flesh on the bones for you after this.
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ANDERSON: The U.S. and China have been playing ping-pong on tariffs and trade for months. Now the first step toward cooling the trade war that's
cast a cloud over global growth, we are waiting for the U.S. president and the Chinese vice premier to formalize phase one of a U.S.-China trade deal.
They will sign an agreement at the White House in the East Room any moment now.
And look at the Dow. It's worth checking in. Anytime we look at trade, we are up about a half of one percentage point. It's been a big push through
that key 29,000 level on the back of the announcement of this phase one trade deal.
Let's get more on this. Clare Sebastian is in New York. Let's also begin with David Culver in Beijing.
As big a moment there as it clearly is in Washington, David?
DAVID CULVER, CNN CORRESPONDENT: I would say it's a bit muted here with the exception of a few state-run media op-eds I've been reading through
today. Chinese officials have not put out nearly as many details as we've seen from Trump administration officials over recent weeks as to what
exactly is in the deal.
And that being said, Trump administration officials have listed a few things; namely, that they will have some of the tariffs that are currently
in place on $120 billion of goods, Chinese goods, they will cut those in half.
But they're going to keep another $250 billion worth of goods at that 25 percent tariff mark. They're only rolling back a little bit.
Now what is the U.S. getting out of this?
They list this $200 billion amount, which includes goods in manufacturing and service sector as well as energy and agriculture. Agriculture has been
hit many times by President Trump, in saying he's doing this for the farmers because the farmers have taken a big hit in the 18 months of this
trade war, really.
But right now Beijing has not responded beyond saying kind of what the logistics are and the procedure here. They did, the state-run news agency,
put out a few moments ago the fact that the vice premier representing the Chinese delegation in the U.S.
He met with the IMF chief and U.S. business leaders. One thing they're harping on is this is a deal that is not only beneficial to China, to the
U.S. but to the global community.
[11:35:00]
CULVER: That's how they're portraying this. But some folks from the Trump administration will suggest that this is really a U.S. win here.
ANDERSON: Yes. In order to ease the Chinese into this, of course, just in the past couple of days. The U.S. not designating China a currency
manipulator. Beijing was delighted about that.
Clare, the U.S.-China trade war has been costly. Some American 300,000 jobs lost. American importers paid an extra $48 billion in tariffs and consumers
were hit. Look at the Dow Jones, we pushed through that key 29,000 level. Clearly the markets relieved this is phase one sort of done and dusted.
But the question really remains, what is in this deal which satisfies the American negotiators that they've got a really big win out of this?
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, Becky, that is the big question here. It's all very well for them to announce the numbers on these Chinese
purchases. Manufactured goods and agriculture and all that other stuff. What CEOs of companies care about are the structural issues at the core of
this 18-month trade war.
Forced technology transfer, intellectual policy, China's whole industrial policy, its subsidies for state owned companies. We don't know what's in
the agreement yet but the administration says, on intellectual property, that China is willing to sort of update modernize the laws, how it deals
with civil and criminal issues around intellectual property.
Larry Kudlow talked about the issue of foreign ownership of financial services companies. Up until now, companies operating in China have had to
have joint ventures. He says that's going to change. There could be now an ability for foreign companies to operate with 100 percent ownership in
China.
And none of this matters unless they can enforce it, unless the administration can make sure China lives up to promises and officials said
there will be an enforcement mechanism, a bilateral dispute resolution mechanism. If China doesn't live up to the promises, tariffs could be
increased again or more tariffs could come in.
ANDERSON: Wait and see, the U.S. president and the Chinese vice premier sign up to what has been advertised as phase one of the new U.S.-China
trade deal.
Guys, stand by. Dave and Clare in the house. We're going to take a short break. We'll be back after this.
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ANDERSON: If you are a Republican in Washington this hour, you are in this room.
[11:40:00]
ANDERSON: We are waiting for the U.S. president and the Chinese vice premier to enter the East Room and formalize phase one of U.S.-China trade
deals. Some familiar faces there. Jared Kushner, senior adviser to the president.
They'll sign the agreement at the White House any moment now. Clare Sebastian is in New York and David Culver is in Beijing.
Before the break, Clare, we were discussing the substance -- or lack thereof -- of what is in this deal phase one. It has to be said, when you
sort of spot who is in this room, there is an awful lot of Republicans who will see this as a welcome relief from the impeachment debacle.
Republicans including Ivanka there, I'm talking about Republican senators and, indeed, Ivanka and Jared Kushner will see this as a big win for the
Trump administration.
SEBASTIAN: Absolutely. Becky, I think it's not to be forgotten that this is an election year and President Trump really needed to be able to show
that he had done something on this.
Of course, one thing we've discussed as the trade war developed is while there are no time limits for presidents in China, President Trump has to
face reelection this year and the trade war has been a signature policy of his.
He will be able to point to this, his officials have been out saying don't call this little, was the words this morning. They don't want this to be
seen as a mini deal. They're trying to present this as something highly significant and necessary for the U.S. economy and U.S. companies.
One other familiar face, though I believe I saw sitting behind Wilbur Ross was David Calhoun, the new CEO of Boeing. If China is going to purchase
more manufactured goods from the U.S., perhaps that includes planes. That company is a key stakeholder here. But we wait to see what's in the text as
they sign it.
ANDERSON: Sharp-eyed Sebastian in the house. Good spot.
David, we've been discussing the lack of, for a better word, interests that the Chinese media seems to be showing in this deal. Quite a different
atmosphere in Washington as opposed -- in Beijing, as opposed to that in Washington.
How do you explain that?
CULVER: It's interesting. Comparing my time in Washington and being from there and having worked there the past seven years, you come to Beijing and
you can kind of see the contrast in how they handle situations like this.
So part of this is simply just customary and to not releasing a lot of details before something is solidified.
You also have to question if this is strategic from a PR perspective more than anything else.
Are they careful not to divulge too much to the Chinese population that could make this be perceived as China caving in to the U.S.?
That's a concern that could be arising. Or perhaps they have been through this now for 18 months. They've seen it go back and forth, close to an
agreement and backing away then things falling apart. Then talks subside and coming back together. It's been a roller coaster and so perhaps they're
waiting until things are inked, solidified and then they can move forward with some of the details.
But the most recent amount of information that they've put out came about a month ago. So that was December 13th when this was initially announced that
it would be coming together.
And that was the Chinese commerce industry that came together late on a Friday night, held a rare press conference and simply said that we think
we've come to an agreement. These are the nine chapter headings we have discussed. No details beyond that.
It was really the U.S. and the Trump administration officials who have been giving us more information as this time has progressed and even as recently
as this morning, with Secretary Mnuchin making the TV rounds to explain what is in this deal and why it's so beneficial to the U.S. side of things.
Beijing is careful in making this look like a loss. And state media, the op-eds I've been reading today, have come across strongly to suggest the
U.S. is the one dealing with a difficult economy. They suggest the deficit is more indicative of that than anything else.
They go on to say China is in a strong place and they feel confident going forward China could have continued on without a phase one and still stayed
in a relatively good position.
Whether or not that's the case or not remains to be seen. The reality is there are economic woes here being felt.
[11:45:00]
CULVER: Consumer confidence has fallen. Unemployment is a real concern and so it's something that they're mindful of.
ANDERSON: David Culver is in Beijing as we consider these images of the Trump family in the East Room, awaiting the arrival of Ivanka's father, the
U.S. president, Donald Trump, and the vice premier to ink phase one of this U.S.-China trade deal.
Clare, the details of this deal under wraps. Here is what U.S. Treasury Secretary Steven Mnuchin said a short time ago.
(BEGIN VIDEO CLIP)
STEVEN MNUCHIN, U.S. TREASURY SECRETARY: I think it's a very significant deal. It's the first time we've ever had an encompassing agreement with
China on all these issues. It deals with intellectual property, forced technology transfer.
It deals with agriculture, structural issues, financial services, currency, purchases and they fully enforceable agreements. So there's a dispute
mechanism.
(END VIDEO CLIP)
ANDERSON: So that's what we know at this point. Clearly there is an awful lot more work to do. You were, though, reminding us that the Trump
administration is eager to suggest that this is by no means a small deal. I think they've used the word enormous deal, actually.
SEBASTIAN: Yes. That was -- that came from Steven Mnuchin. He said this would be an enormous achievement even if they don't eventually get to phase
two.
We have to hand it to them. This has been a long-running trade war. Talks broke down in May at the point where they tried to put pen to paper. The
fact they've done that, this is the furthest they've ever got.
If they have some kind of resolution on the structural issues, things like intellectual property, it will have bipartisan support on Capitol Hill and,
of course, from the business community as well.
We've talked a lot about businesses that are paying the tariffs on things they import from China. But many of them have, while doing that, supported
this cause. They want to have equal access to the Chinese market and the vast consumer base.
It's a huge profit maker for American companies. Many of them operating in China. They've looked on this with concern but wanted to see the Trump
administration succeed. I think we can't lose sight of that as they move toward signing this today.
ANDERSON: Yes. And I think that the positioning by Donald Trump on what happens with regard to phase two has been interesting. I think I'm right in
saying that he has said we're in no rush. In fact, this phase two, the next stage of this trade deal, could come in my, his, as it were, next
administration, i.e., after the 2020 election.
SEBASTIAN: Yes. Perhaps a political move. I don't think any wants to see any more uncertainty added to this.
It was interesting; Larry Kudlow said he sees the stock market as a score card of how this is going. I would argue that it's a score card of the
level of uncertainty around this trade war, other than the trade war itself.
The markets now hitting record highs today because this is lifting a layer of uncertainty. Not because it ends the trade war. Because we now sort of
this more of a blueprint, a path of what's going to happen and tariffs for the moment it looks like will stay put.
Of course, unless China reneges on its promises, if you talk to administration officials. That is how the business community is looking at
this at this moment. This is about uncertainty. But a lot of heavy lifting is still to be done if they eventually get to phase two. That's something
the companies will be watching closely as well.
ANDERSON: Uncertainty, the nemesis of these stock markets, getting rid of any sort of sense of uncertainty. How small that might be. Always a boon
for investors.
All right. Clare and David, thank you for that.
We'll take a short break. We're monitoring these pictures. I want to get you to them as soon as we get Donald Trump and the vice premier of China.
This is a historic moment and this room is packed with U.S. Republicans, who will be celebrating today. Back after this.
(COMMERCIAL BREAK)
[11:52:00]
DONALD TRUMP, U.S. PRESIDENT: Thank you very much. Please.
We greatly appreciate your joining us at this White House event.
TRUMP: This is a very important and remarkable occasion. Today we take a momentous step, one that has never been taken before with China, toward a
future of fair and reciprocal trade as we sign phase one of the historic trade deal between the United States and China. Together, we are righting
the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families.
I want to thank President Xi, who is watching as we speak. And I'll be going over to China in the not-too-distant future to reciprocate. But I
want to thank President Xi, a very, very good friend of mine.
We've -- we're representing different countries. He's representing China, I'm representing the U.S., but we've developed an incredible relationship.
But I want to thank him for his cooperation and partnership throughout this very complex process. Our negotiations were tough, honest, open and
respectful, leading us to this really incredible breakthrough. Most people thought this could never happen. It should have happened 25 years ago, by
the way, but that's OK.
A man who also has become a good friend of mine and somebody who's very, very talented and very capable, we're delighted to be joined by Vice
Premier Liu He and Ambassador Cui and many other representatives from the People's Republic of China.
We are especially proud of the efforts of Vice President Mike Pence, who is with us.
And Mike, I'd like to have you say a few words, please.
PENCE: Thank you, Mr. President.
It's an honor to be here with you, with Vice Premier Liu He, with our treasury secretary, with Ambassador Lighthizer, with so many distinguished
guests, members of Congress, governors from around the country. This is a - - a good day for America, China and the world, and it's an honor to be with you.
Mr. President, we gather here today, thanks to your leadership, at a time that the American economy is booming. With the strong support of members of
Congress who are gathered here, we are now experiencing an economy that's created more than 7 million jobs. Unemployment rate is at a 50-year low.
The average American's household income has risen by more than $5,000. That's all the result of your commitment to cut taxes, roll back
regulation, unleash American energy. But it also reflects your commitment to free, fair and reciprocal trade.
Early in this administration you made it clear that the era of economic surrender was over, and you took a strong stand for American jobs and
American workers. You said to our friends in China that things had to change and, thanks to your leadership, today the change begins.
(APPLAUSE)
Thanks to your efforts, Mr. President, we announce today great progress on protecting intellectual property, on preventing forced technology transfer
and currency manipulation.
[11:55:00]
And I know it means so much to you, the greatest impact may well be on American agriculture, some $40 billion to $50 billion in purchases secured
in this deal that'll result in greater prosperity for farmers all across the land.
Mr. President, your commitment to a growing and prosperous America has been the centerpiece of your leadership, and today, with the signing of phase
one, it's one more example of your commitment to put American jobs and American workers first.
PENCE: And we recognize, as you do, Mr. President, that differences will remain between our two nations, but today is the start of a new chapter in
trade relations between the two largest economies in the world.
I can assure the American people that this president will continue to stand firm and put America first, even as we forge a more productive relationship
with China and with the world.
Mr. President, you know, there's an ancient Chinese proverb that says "Men see only the present but Heaven sees the future." So let today be the
beginning of a brighter future, more prosperous for the American people, the Chinese people and the world.
Thank you, Mr. President.
(APPLAUSE)
TRUMP: Thank you, Mike.
An incredible job, incredible guy.
I also want to give special thanks to our U.S. trade representative, who's been kept very busy. He's doing a lot of deals; we'll have another big one
next week -- it should get approved very shortly, and that'll be tremendous -- with Canada and Mexico. But we'll talk about that next week.
But Robert Lighthizer, are we keeping you busy enough? Huh? Poor guy can't sleep, he tosses and turns. What happened to him? Oh -- oh, OK.
Thanks. Mike -- Mike -- Mike -- that's right, you are all purpose, come to...
(LAUGHTER)
But Bob Lighthizer's really an outstanding guy, gets along with people, he's smart, he's sharp and he understands trade better than anybody. When I
first took this, I said I've got to get the best guy. And all signs pointed to Robert Lighthizer.
So thank you very much, Bob. Thank you very much.
(APPLAUSE)
I have one question: Was this an easier job or tougher job than you thought?
LIGHTHIZER: It was tougher.
(LAUGHTER)
TRUMP: I had a feeling you might say that.
Also, our great treasury secretary, Steven Mnuchin, has worked with Bob hand in hand. And thank you very much, Steve. Great job.
(APPLAUSE)
So this really is a landmark agreement, but along with them, we had the exceptional efforts of Jared Kushner. Where is Jared? Where is Jared? Our
brilliant Jared.
(APPLAUSE)
Great job, Jared. You worked hard. You left a beautiful, nice, very prosperous real estate business and came here. And I can tell you that was
harder. This is harder than real estate in New York, isn't it Jared, huh? But you've done a fantastic job. You don't get people like that so thank
you very much.
And Ivanka, nice to have you here. Thank you, honey.
Also, somebody that I've heard for 35 years, the voice of just a great gentleman -- a friend of mine but a great gentleman. We brought him in and
he has been outstanding. The only problem is he doesn't like going on television very much. He's a little bit shy about that. Larry Kudlow.
Where's Larry?
(APPLAUSE)
Where is Larry?
We had a day where the market went down $1 trillion. Think of that. In other words, it was one of those few days, because we've had 141 days where
we hit all-time highs. And we just broke -- as you know, we just broke the 29,000 mark on the Dow just now, as we're walking in. Market's up
substantially today.
(APPLAUSE)
TRUMP: With all these business leaders, I'm sure they don't care.
But Larry Kudlow went out onto the beautiful lawns of the White House. Actually, he was standing in the middle of the Rose Garden. He had a
beautiful scarf, waving in the wind. He was everything perfect, right out of Greenwich, Connecticut.
(LAUGHTER)
And he started talking. And by the time he finished, I said, "You just made a trillion dollars, a trillion." Because the market went up, like, 250
points. I said, "Larry, what the hell did you say?"
(LAUGHTER)
[12:00:00]
END
