Warren Buffett, Berkshire Hathaway chairman/CEO says the relationship between U.S. and China will be bumpy at times, however the two countries will align interests over time.
Full video and transcript:
and we probably should talk to warren at some point, whenever you want, becky, about china. i read — i can’t remember where it was over the weekend. we see in the weekend wall street journal or the times. you can’t help it. with the social media, 1.3 million people are finding out more and more about property rights and freedom and they’re trying to figure out ways to censor a lot of this. i saw gary locke was over there. he’s like a welcoming hero. he comes in there. people — you know, when huntsman was there, no one did anything. there are crowds showing up to see gary locke. and in and out government sish ewi is issuing the press reports about this guy, you know, he’s a fake. he is chinese. but don’t think that this is the way we should be. and it’s causing a lot of angst among the chinese leadership that an american who is, you know, a couple generation moves from china is being so — the adulation he’s getting. so i don’t know. we got to talk to warren about whether that’s really imploding at some point. yeah. forget about all that. no, just kidding. why don’t we start on that? we have other stuff to talk about, too. we’ll recap the ground we covered over the last two hours. joe brings up a great point, warren. you look at china and the country the way it’s been run to this point. what do you think? you spent a lot of time in china recently, too. i am no great expert on it. they’re going to have tensions within china just like we have tensions within this country. you know, our income disparities and the widening income disparities cause a lot of tensions in the united states. but china and the united states are going to be the two big factors in the world over decades to come. and they’ll be unhappy with things we do when we tell them they can’t buy unical or something of the sort. and we’ll be unhappy with things they do. there’s things in our society that took us centuries really to get straightened out. the 19th amendment, what, 1920 or something like that. i mean it took us a lot of time to work out things. and a civil war even in one case. so don’t expect the progress of any huge society to be, you know, totally without some bumps here and there. but china and the united states over time will largely get along. we largely have the same interest. we both have nuclear bombs. and not in our interest to start getting really furious with each other. and there will be tensions. we’ll want to play the game our way. they’ll want to play the game their way and we’ll both have to get them in some cases. i’ve been to china with you and boon pickens in the past. and the common threads for american businessmen going overseas go,,ing to china is that, wow, it’s a lot easier to get things done here. that’s for sure. to get through regulations quickly. the central planning is a big boost if you’re trying to get something done very quickly. if that starts to be affected or impacted by the changes that are taking place in china, is china less attractive investment area? well, they will have more difficulty with that as they go along. but this he do have — when they want to get something done and you get the government and business and others on the same page ready to do it, you’ll build over there things in the period that will take us three or four times as long. and we build factories over there. we’ve seen it happen. and so as people get wealthier, you know, they start casting their eyes about and they don’t get more satisfied. they get more dissatisfied. that happened in the united states. right now, we have six times the gdp per capita in real terms as when i was born. now i don’t know whether people are happier now or more discontent or what they were in 1930, but people have a way of adjusting very quickly to things becoming better and then any little tiny adjustment downward. they can get quite unhappy about it. they’ll have — they’ll have plenty of strings in their society. we should mention while we’re talking about china, but the shares were up 26% today on news that the chinese government is making it a little easier for the new fuel vehicles. it has been a very volatile investme investment. is it a good investment without the government pushing for some of these new fuel economies or new fuel vehicles? well, charlie is the expert on that, my partner charlie. i wonder how successful they are. are. and there are remarkable things. there have things to be done. charlie fields is a very good bet. joe, did you want to follow up on the china angle with that, too? i mean i — i — there’s a couple answers warren gives i find a little bit unsatisfying. but i understand what he’s saying. i don’t know if i’d ever compare the income xpadisparity issues t front and sent we are what the chinese people have to live with on a daily basis, warren. but then again, it’s a totally different culture. it’s impossible for me to really — i’ve never been there. kint p i can’t put myself in that place. maybe it’s not as big a deal. tiananmen square and bullets and total censorship and no property rights and one-tenth maybe the gdp per capita that we have. i — there’s no way that i could ever say that our problems were in any way as bad as what some of the average chinese have to put up with. that’s what i was thinking, warren, when you said that. it seems to really minimize — sooner or later they’re going to have a much bigger — want to have a much bigger say in their own lives. we have our problems. but i just can’t imagine you’d say that it’s similar to our income disparities equivalent to the absolute human rights disaster in chib rigna right no. we had our own human rights issue. i know, we’re talking about now. no, i would say they’re really coming off 40 years essentially of a real history. i mean for centuries they were stuck in the same place. right. and they’re 40 years into the lying of what i consider the present chinese country. and