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Blinken: Accomplished What I Set Out To Do In China Trip; Kansas Investigates "White Powder" In Letters To State GOP Lawmakers And Public Officials; Celebrity Chief Helps Minority-Owned Restaurants. Aired 7:30-8a ET

Aired June 19, 2023 - 07:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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[07:31:43]

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ANTONY BLINKEN, SECRETARY OF STATE: We both agree on the need to stabilize our relationship. During those meetings we had a robust conversation about regional and global challenges. That includes Russia's war of aggression against Ukraine. I reiterated that we would welcome China playing a constructive role along with other nations to work toward a just peace based on the principles of the United Nations Charter.

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VICTOR BLACKWELL, CNN ANCHOR: That was Secretary of State Antony Blinken speaking moments ago after his meeting with Chinese President Xi Jinping. Blinken's visit is an attempt to cool tensions between the two global superpowers after months of heightened friction, including military encounters in the South China Sea near Taiwan.

Joining us now, former defense secretary under Donald Trump, Mark Esper. He currently serves on the board of the weapons technology company Epirus. Thank you, Mr. Secretary, for being with us.

First, the big question here -- is this a successful trip if the goal is to open lines of communication and to set a floor? Has this administration done it?

MARK ESPER, FORMER DEFENSE SECRETARY UNDER PRESIDENT DONALD TRUMP, BOARD MEMBER, EPIRUS: If that is the aim, Victor, then, yes, I think it has been successful.

I am a little concerned about the events leading up to it if you will. We seemed a little bit too anxious to have this meeting happen, which plays into the Chinese narrative back on the mainland. But then I'll be watching very carefully what comes out of this. So I want to make sure that we don't take our foot off the gas when it comes to important policy issues that need to be pursued as we compete against China and, in some places, confront them. ERICA HILL, CNN ANCHOR: So in terms of these important policy issues being raised -- we heard about a number of them that were raised from Sec. Blinken just on the heels of it -- is there something that you think was missed?

ESPER: Well look, I don't think opening more commercial air flights and things like that are really that important. The fundamental issues between us, such as Taiwan, the war in Ukraine, China's stealing our intellectual property, and espionage -- those things aren't going to be reconciled. I mean, those are fundamental differences between our two countries. China thinks they are in the right and that we are the aggressor. And that's going to be -- those will be the big questions -- the litmus test going forward.

BLACKWELL: On Ukraine, Sec. Blinken says that he's received an assurance from the Chinese as it relates to lethal aid. Let's listen.

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BLINKEN: We, and other countries, have received assurances from China that is not and will not provide lethal assistance to Russia for use in Ukraine. We appreciate that and we have not seen any evidence that contradicts that.

What we do have ongoing concerns about, though, are Chinese firms -- companies that may be providing technology that Russia can use to advance its aggression in Ukraine, and we've asked the Chinese government to be very vigilant about that.

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BLACKWELL: Your reaction?

ESPER: Well, it's interesting. As you were asking the question, I was -- I was going to make the statement that Blinken just made, and that is the Chinese continue to provide dual-use technologies -- like semiconductors, and drones, and things like that -- that can be used and are being used by the Russians on the battlefield. I -- look, I think we need to curtail that as well.

But I'm quite skeptical about Chinese promises. We've seen them in the past and most famously, years ago when the Chinese promised not to militarize islands in the South China Sea to President Obama and then less than a year later went on to do that.

[07:35:06]

So, look, I -- these are good words. It gets them on the record. But we need to be very careful with regard to Chinese commitments.

HILL: In terms of those commitments, a lot of this -- and we were talking earlier with Evan Osnos who has made the point that a lot of this, for the Chinese, as you know, is economic at the end of the day. It's more about checking, perhaps, some of these boxes which will then, perhaps, open the country more to more high-level meetings with economic leaders and getting more companies in. What does this meeting achieve --

ESPER: Yes.

HILL: -- for the U.S. from that angle?

ESPER: I think part of this is for both sides to polish their diplomatic credentials when it comes to the relationship and for China, in particular. I mean, their wolf warrior diplomacy has really scared off folks around the world, particularly the Europeans, who they are trying to court very hard.

But China has also economic problems, right? Their growth this year is not what they expected. They had a quick surge after they opened up the country after COVID and now they've dropped as well. The unemployment rate of their -- of Chinese youth is I think about 20 percent. So they have a good number of economic problems that they are facing.

So they cannot afford economic tensions and standoffs with the United States or the world for that matter, which is one reason why, of course, I suspect they will be reluctant to cross the line when it comes to providing lethal aid to the Russians because that would, of course -- could result in financial and economic sanctions against Beijing.

BLACKWELL: Let's talk about the former president's handling of classified documents after his indictment on 37 charges related. You have said that likely -- that, handily, put some lives in danger, potentially. We've heard the same thing from John Bolton.

We now have a new op-ed from Bill Barr, "The Truth about the Trump Indictment." "This time the president is not a victim of a witch hunt. The situation is entirely of his own making."

However, after the indictment and since the arraignment, his poll numbers have gone up. He's raised millions of dollars. He's created a larger advantage over his opponents in the primary.

Why isn't that message getting through?

ESPER: Well, the fact is -- and I think Bill Barr has said this fairly eloquently -- there have been investigations -- inquiries in the past that have appeared politically tinged, and we know what those are. But this is one, in my view and I think in his as well, that clearly is not. And he has a very strong base -- that 30 to 35 percent who will rally around him regardless of what happens. And so, I think you see that effect happening right now.

But look, I'm -- we have a good field of candidates in the Republican primary right now. We have a long race ahead of us, a debate in August, and the first votes in February. We'll see how this plays out. I mean, for Trump, this is just one of a few other investigations that are underway and we have a long road ahead of us. He has a long road ahead of him. HILL: Really quickly -- we're just about out of time -- but you mention this field of candidates you feel good about. Should -- or would you like to hear more from some of those candidates about concerns if, in fact, this indictment -- it was alleged in this indictment the way documents were mishandled and the national security concerns that raises? Would you like to hear from them on that?

ESPER: Oh, absolutely. I'd like to see more leadership out of the field to talk about the issues of national security -- of the handling of classified documents.

I know -- I know folks in Trump's camp will point to Hillary Clinton and others -- why they weren't prosecuted. And I think they're right, right? But two wrongs don't make a right.

I think we need to -- we are a country of laws. We are a nation of laws. Nobody is above the law. And, of course, everybody is innocent until proven guilty.

So I think we need to get back to the basics here --

HILL: Yes.

ESPER: -- and talk to those issues. And I'd like to see the candidates speak out more about those matters.

HILL: Also important to not have apples to oranges comparison, not only apples to apples comparisons when we're talking about different investigations and the specific documents.

Mark Esper, always good to have you with us. Thank you.

BLACKWELL: Thank you.

ESPER: Thank you.

HILL: Kansas officials searching for potential suspects after at least 100 letters with a suspicious white powder were sent to Republican legislators. We have new details just ahead.

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HILL: This morning, some Republican legislators in Kansas are on high alert after at least 100 letters containing a suspicious white powder were mailed to both state lawmakers and other public officials. Now, authorities have tested some of those letters and say they have tested negative for biohazards.

CNN's Rosa Flores joining us now. So, negative for biohazards but the level of concern, understandably, Rosa, very high. I know you spoke with at least one of the lawmakers who received one of these letters. What did he say?

ROSA FLORES, CNN CORRESPONDENT: Yes. Look, I spoke to Rep. Stephen Owens and he described the experience as terrifying. He says that this act was calculated and that it targeted Republicans. Look, he says that the return address on the envelope appeared to be from one of his constituents, and that's why he opened the letter. And he says that so far, all of the recipients of these letters are fellow Republicans.

He shared a photo of the letter with us and he pointed to two specific sentences there that say, quote, "To honor your recent accomplishments, it's important not to choke on your ambition."

Now, he says that this cryptic message could be a reference to the supermajority that Republicans have in the House and the Senate that was used to override nine vetoes by the Democratic governor. He says that two, in particular, were very controversial. One defined a man and a woman, and another stated that biological males could not participate in girls' sports.

Now, authorities are not saying that this is the motive, but Owens is not the only lawmaker who feels targeted. Take a listen.

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MOLLY BAUMGARDNER, (R) KANSAS STATE SENATOR: Kansas legislators that are Republicans are being targeted. There is some message. The message is somewhat unclear but it was intended to be threatening.

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[07:45:05]

FLORES: Now, as for the investigation, Kansas authorities are saying that they have tested some of the more than 100 letters that went out to Kansas officials all across the state and that the results are negative for common biological agents. Now, further testing will be conducted, according to authorities.

Now, it's important to note that investigators say that no one has been injured. There have been no arrests that have been made. But Erica, this investigation is ongoing and, of course, very concerning.

HILL: Absolutely, Rosa. Appreciate the update this morning. Thank you.

BLACKWELL: Today is Juneteenth and we're taking a look at a new initiative to help Black- and minority-owned retail and restaurant businesses grow. Celebrity chef and restaurateur Marcus Samuelsson is here with us live, next.

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BLACKWELL: Today marks the third year that Juneteenth is recognized as a federal holiday. To help commemorate this day, which observes the end of slavery in the U.S., Americans around the country are encouraged to support minority-owned stores and restaurants.

Joining us now, celebrity chef and restauranteur, Marcus Samuelsson. Good to see you, sir.

MARCUS SAMUELSSON, CELEBRITY CHEF: Good to see you.

BLACKWELL: I mean, as we talk about Black history it's important to talk about --

SAMUELSSON: Yes.

BLACKWELL: -- Black futures as well.

SAMUELSSON: Yes.

BLACKWELL: And during the pandemic, a lot of people started new businesses.

SAMUELSSON: Yes.

BLACKWELL: Black- and minority-owned businesses have some really specific challenges that I don't think --

SAMUELSSON: Yes.

BLACKWELL: -- we talk about often enough.

SAMUELSSON: No. What I -- what -- as a Black business owner and meeting a lot of my colleagues and friends, a lot of Black professionals want to start a business, especially post the pandemic but there are so many barriers.

And what I love about the Open Door Initiative is really here, we look at some of those barriers, right? And to be able to have -- work with both the business and the landlord to work on flexible rent and create a different structure, right, that -- there has never been more vacancies from the landlord side, and there's never been a bigger need for people to start their own businesses.

But when you start a small business you don't have millions of dollars in your bank account, especially like retail. So it might be a pop-up store, right? How are you going to get into a space? Now the landlord can really look at this and take a chance on something -- a shorter lease, something that is much more flexible. That's what we need. We need a flexible rent structure and that's what this -- what the Open Door Initiative does. That's really what this looks at.

HILL: And so, where are you targeting, too, in terms of spaces and communities?

SAMUELSSON: Yes.

HILL: In terms of these vacancies? It's not just about the vacancy, it's also about having the community there to --

SAMUELSSON: Yes.

HILL: -- support it, right -- supporting business.

SAMUELSSON: Yes. No -- I mean, restaurant hospitality is probably -- is one of the biggest sectors, right --

HILL: Yes.

SAMUELSSON: -- because a lot of people had to shift their business during the pandemic and maybe start -- you know, really, really imagine it, right? So that's obviously a given for us and I have a lot of relationships in that space.

But then it goes beyond that -- retail, in general. In order for us to come back, right, and neighborhoods to come back, retail is a major part of that.

HILL: Yes.

SAMUELSSON: And when you start a small business, a great space can be empty and sometimes the landlord will make more money on keeping it empty.

HILL: Yes.

SAMUELSSON: That kills the community and it doesn't help the person that will start the business.

With this tool, the landlord and the business owner looks at sales at real time, and that's really, really important and it helps everybody to be -- share the risk and do a shorter lease. Try it out. If it works, great, then you can renew it. Otherwise, you can't just sign up and do a 10-year lease. A new business doesn't have the money to that -- to do that.

BLACKWELL: Yes. Let's talk more about prop tech --

SAMUELSSON: Yes.

BLACKWELL: -- property technology that you say --

SAMUELSSON: Yes.

BLACKWELL: -- can help these communities, but help the economy overall. Explain that.

SAMUELSSON: Well, I mean, it's a really -- tech will be -- prop tech will be the tool to really narrow the gap, right? We have -- look at it. We have three percent just of Black -- of businesses in America are Black owners. That's a very low number. We need to fix that and prop tech can be one of the solutions to do that.

Obviously, there is other barriers, too, right? Getting access to traditional monies, like banks and such on. And obviously, with the generational wealth gap. So we -- tech is part of the solution to make it easier and make it quicker for small businesses to start because these barriers are way too high. And what we all know -- it's like what businesses looked like pre-pandemic is not the same thing as the business -- small business is going to look like post-pandemic.

I just came back from Aspen Food & Wine and the number one topic of conversation is how do we move forward in the hospitality business post-pandemic, you know? And it's not just doing more take-out. We need really solutions on the tech side, and the landlord side, and the -- and the institutional bank side. Everybody has got to come together because the ideas are there and the people with innovations are there. We know this.

HILL: So to Victor's point, which he started with, about looking toward the future --

SAMUELSSON: Yes.

HILL: -- what gets you most excited when you look to the future?

SAMUELSSON: Young, incredible chefs coming up in our industry with great ideas, and all they want is an opportunity to execute on it. Actually, the most thriving business in hospitality right now is the pop-up industry, right?

HILL: Yes.

SAMUELSSON: There are many of my former line cooks and my friends that are now doing private dinners, private pop-ups, and they are now looking at what's the next step for us. We would like to get a traditional space. But they don't have the millions of dollars that it sometimes takes, right?

So where do we take that incredible initiative and entrepreneurship? How do we help them to get to the next step? And with my experience I've been very fortunate to really thrive here and it's really -- part of my job is to look back and think about who can we -- how can we assist the next generation of talent, but also make landlords --

HILL: Yes.

SAMUELSSON: -- understand hey, you've got to come with a new business proposition here. That old stuff -- that super-expensive stuff might not be relevant anymore. And here is tools, right, that we can gather and move forward and make it a better community.

[07:55:05]

BLACKWELL: Yes, finding a platform to make those connections.

SAMUELSSON: Yes.

BLACKWELL: All right, Marcus Samuelsson, good to have you in.

SAMUELSSON: Thank you.

BLACKWELL: All right. Thank you.

HILL: Thank you.

SAMUELSSON: No jerk bowl today?

BLACKWELL: I know. I mean, listen, that jerk salmon bowl at Red Rooster --

HILL: Victor thought you were bringing breakfast --

SAMUELSSON: Yes.

HILL: -- so, next time.

BLACKWELL: Next time, bro. Next time, bring it.

SAMUELSSON: Happy Juneteenth, everybody.

BLACKWELL: All right, thank you.

HILL: And speaking of Juneteenth, tonight, a CNN concert event with some of the biggest names in music. Be sure to tune in for "JUNETEENTH: A GLOBAL CELEBRATION FOR FREEDOM." Coverage starts tonight at 7:00 right here on CNN.

BLACKWELL: U.S. Secretary of State Antony Blinken just wrapped up a critical meeting with Chinese President Xi Jinping. CNN is live in Beijing.

HILL: And we are seeing the first images after a massive tornado struck Mississippi overnight. First responders out now assessing that damage. We'll be right back.

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BLINKEN: In terms of those objectives that we set for this trip, establishing open communications channels, directly raising issues of concern, exploring cooperation in places where it's in our mutual interest to do so.