This show is produced and hosted by Mark Webber.
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The views expressed in the following program are those of the sponsor and not necessarily the opinion of seven tenor or iHeartMedia. Who is Mark Weber. He's a self made business executive here to help you find your success from the New York City projects to the Avenue Montaigne in Paris. His global success story in the luxury world of fashion is inspirational. He's gone from clerk to CEO twice. Mark
his classic proof that the American dream is alive. And well, here's your host of Always in Fashion, Mark Weber.
Mark Weber.
This country is amazing. It's capturing the tension of the world. And tonight's show because of what was going on, I was going to dedicate it exclusively to China, and I was gonna call it make Love not War. I don't want trade wars. I want fair trade. The world's not fair, but we just have to navigate through it. But then the whole subject of money and budgeting and where this country's spending their money captured my attention. I call. I need to remind you there's an old saying or important
say that figures lie, but liars also. Figure numbers should be straightforward, but they're not. You have to look closely. You need to be smart, or your forensic accountant will be I want to talk money in its totality, corporate money, corporate budgets, but particularly I want to talk about how you approach it because the United States is under attack right now. We're at war with ourselves with the way we're spending money. The nonsense that USAID was laid for,
it's just crazy. You know, we have a corporate budget. Let me just make it simple. Every single dollar is accounted for, every single dollar is approved. Everyone looks at everything you take marketing, travel, What class of service are you allowing? At what level we're hotels? Are you allowing? Are people allowed to take taxis limos? Every single line is looked at. Then in marketing you want to talk at advertising, men's how much money are you going to
spend on men versus women? Which products? Where are you going to place your advertising? How often? And then there's the question of the course provide him? And then overall the most important question of all, why are you doing it? You go even further entertainment. Are you to spend your money on taking people's sports arenas or concerts? How about dinner?
Are you going to take them to different countries and this is where you're going or the people in different comptries you're going to visit with they want to know, with whom they want to know? Always why you're doing it? With the big question why every single dollar is looked at an accounted for, except it seems in the USA budget. Donald Trump is president, but he's a CEO first, I bet, and in his heart CEO foremost. Now, he may love the presidency and he loves the country he's doing it,
but he knows how to run. He knows how to plan and process. No one can run anything without a budget, let alone a corporation and of course the United States government. So now here we are in a show that I wanted to talk about. We're at war with Elon Musk. So much for the love. There's a great Einstein story that comes to mind. Einstein is teaching a class and he's working on a blackboard and he puts up the
number nine times one equals nine. Then he puts up nine times two is eighteen, and he goes all the way through ten, and at nine times ten he puts up an answer in ninety one and the class starts laughing and ridiculing him. And when it dies down, he looks at them and said, you know, it's interesting. I got ten answers right. Nobody gave me any credit for that, and then one answer is wrong, and all you want to do is make fun of me and ridicule me.
The point is, in life and society and media, people will always find your mistakes. And who doesn't make mistakes? Only those people who do nothing. So here we are the leftis at war with Elon Musk. When I was ten years old, my mother and father sat me down and gave me a ten dollar bill and they said it's your allowance for the week. And they told me you have to think about it. Mark. You have to be very careful because you're only going to get ten dollars.
So if you go to the candy store, don't spend all your money on the first day you need it. For the week. You have to look at the price of candy, your gum. You need to make a plan, and then don't come to us when your money runs out. It's your money. You have to respect it and you have to treat it well and talking respect and talking money and talking always in fashion. My lawyer, my co host, my son, Jesse Weber.
Hello, La Lallo. Good to be back on the show with you.
Hey, it's great. They have a question for you right out of the box. I've always been serious with you and money and budging when you got married. How did I cancel you on budgeting? I don't even remember.
It was very very simple. I think that this feels like it would be straightforward. Maybe a lot of people don't know. You said you have to. You have to figure this out. How much are you making every month? And what are your expenses? That's what you're the number one thing. And are you making enough money to meet your expenses or things? You have to cut back on it? So you make a list. Here's the how much I'm
taking in. Here are my list of expenses. And when I say expenses, it's things you absolutely need to pay for, things that you you could maybe be a little bit more flexible on, and things that you want to buy but you don't you don't have the money to buy. Give an example, rent rent every month, that's a you have to pay that every month, right, you have to Now now you have to eat, doesn't mean that you have to go out to restaurants all the time.
Maybe you buy groceries, maybe you cook a little bit more.
And then of course the bottom line is clothes or trips, things that you want to spend money on. But you have the actual money too, And as long as you are making it, taking enough money and save money properly, then you can have a little more discretionary income.
And I guess I should is did you learn from it? And was I right about it?
I did?
I did.
First of all, it's interesting because I've always done my own life, living by my own budget and taking care of myself. And then when you get married and you have somebody else and they have things that they want and things that they do, and you're together, and now the cost of a meal is double. It's an interesting thing. But she's also working as well. It's been a very good educational process and I think I think we're quite responsible when it comes to our budgets.
Well, with that in mind, I think that the government has the right and has the obligation to do the same thing. Now would you agree with me on that? So far we're doing good today.
I agree, but I also think that there are certain protocols and rules and laws put in place that, for example, a president can't just.
Do everything that they want to do, even if you think it's the right thing to do.
Well, that's not what we're talking about this week. In real we're talking about I wanted to what Elon Musk is doing with usam.
And well, would you like to talk about that?
I do. First of all, the Democrats are screaming, Elizabeth Warren, it's a constitutional crisis. What's the buzzword of the day, is it?
Here's the first problem, Elon Musk. He's not an elected member of the Trump team. He's a private citizen who's directing where the money goes.
That's I don't put it.
Imagine it was a democratic president and imagine he had a private citizen.
I don't know whoever that meant.
Maybe it was a celebrity of some kind telling him this is where I think the money should go, this is what agencies I think should be cut. That's the first problem. Okay, that's number one. He's unelected number but he's.
Acting on behalf of Trump. Trump is telling me exactlyet does should.
He be seeing this financial information? Does he have the security clearance? That's number one. I'm just presenting the issues. That's number one.
Number two, and this is the major issue. Even if you're Donald Trump, he is doing things that are arguably unconstitutional. He is he is moving funds around and moving things around with agencies that is really supposed to be the responsibility of Congress, that they're the ones who determine our budget, and that he might be violating federal laws in the Constitution by what he's doing.
So somebody could be.
Like, WHOA, WHOA said anything yet he didn't move anything. Yet he's pulling it out, saying what they should get rid of, making recommendations. He can't change it.
Well, the I Trump has on it the idea of either getting rid of USAID or moving it to the State Department. That's an independent agency, who says he has the right to do that.
This is going to be immediately challenged in court.
It's an independent he's not saying it can be done. This is what he's recommending.
It doesn't have the authority, and I think it's going to be challenged in court and he might lose. Now, somebody will say This is so unfair. This is so unfair. In hindsight, not he doesn't have the wrong thing. In the hindsight, he has the right intentions. He wants to, like you said, try to cut expenses. There might be things you look at USAID, which by the way, is the United States Agency for International Development, and you might say, why are they spending money here? Why are they spending
money here. That's a fair conversation, that's a fair thing to have. But the question of how he goes about doing it, that's the problems. By the way, it's the same thing that happened last week where there was the firing of the inspector generals. On one hand, the president has the right to do it. On the other hand, he didn't quite follow the rules on how to fire them in terms of they have a due process rights. And somebody could say, ah, due process, schmooth process.
But he'll go back into place, go.
Back and do it. Meanwhile, Elon Musk is making recommendation, he's bringing out the craziness that's going on. So is it or is it not a constitutional crisis? So Foley's doing is recommending to the president, what do you think should.
Be if Elon Musk is doing this and directing this and acting on behalf of the president. It could be a constitutional crisis. It's the Congress under Article one of the Constitution that controls the money. Elon Musk, not the President of the United States. There's a law in place about you know, president just can't change where the money goes, where discretionary spending goes. It's part of Congress.
We will see, you know. I think the Democrats are crazy. Look what they're standing up and fighting.
So they have to pick their battles. They got to pick their battles, right. I think Donald Trump right now is trying to go down in history as the best president of the United States. I'm not saying he is or will be, but what I'm saying is by how he's changed, you know, trying to get rid of income tax, trying to move on with tariffs, try to end to trade war, ending the war in ending the conflict in the Middle East, trying to end Ukraine.
He's trying to do everything. I get it. He's got well intentioned.
How he goes about it and what he says and does about it, that's it's important too.
Okay, did you see Schumi yesterday by the microphone, Win win Win.
Did you see I try to ignore him?
But now, oh he's embarrassing, and so is that Maxine Waters and then Elizabeth Warren. Oh my, thank god, they have the hands in the air because they got their hands caught in the pork barrel. You know, where were their line items? No one looked at them, No one looked at them, No one shared where the money was going. The committee, now this whole week saw the craziness and seeing the waste. They're looking at the nonsense. I got to ask a question, you're worried about constitutional crisis? Is
Elizabeth Warren and your crew there? Where were you? You're the elected officials, You're the ones who should be responsible for all of this. And those Republicans and those Democrats who did take a look, why didn't you object? Was it out of fear of reprisal or was it worse? You didn't think anything was wrong. It's moronic. And what's even moronic these Democrats are doubling down on the country
when the country voted against all of this nonsense. Have they forgotten the shellacking they took their parties and shambles Right now? Now, the part of me that is a Democrat is embarrassed to support them. They have to wake up. Trump is here, Musk is here. They're agents for change, and change is happening. I have a different question.
Well we move that, I guess.
Then I guess the counter argument to that would be, what about the seventy five million people that voted against Donald Trump and voted for Kamala Harris. I guess they're representing them. They like, we can't sit back, we can't stay silent, voted.
For a transgender opera in Vietnam, or they voted millions of dollars in Vietnam to spend on convincing them to burn their garbage. This is where we're spending our money. How can anybody defend that?
You can't.
I'm just I'm just saying. This is why you see them jumping up and screaming.
Yeah, okay, for what reason they're they're they're they're defending the ridiculous. You know, I have a problem with charity. I hate it. I give money, but I never understand it. Why do hospitals need money? Why isn't all the money there for hospitals to do what they can to make our lives simple to save lives. I never understood why a hospital needs money. They should have all the money they need. I never understood why our government doesn't support
veterans they needed to raise money. These people who have stood on our behalf and forught wars and got hurt. I'll never understand this. It's crazy. Wounded warriors should have to put their hands out. They don't have enough money to get whatever they need to live a fair life after the sacrifices they made. You, politicians, that's the constitutional crisis. Veterans and wounded warriors don't have money, but you're sending money to Vietnam to tell them to burn the garbage.
What's going on here? And then, of course there's our senior citizens who've lived their lives working, paying taxes, and they get older and in their golden years their financial trouble. Why not take back all those millions and millions and hundreds of millions of dollars in just this one organization and spend it on our people. Why are we spending it outside the United States? I don't get it. I understand no one voted for Elon Musk, but nobody should
vote for you. You want to scream, we win, we win that this that. Why don't you just do the right thing. Why don't you save the money and let it work for you. Why don't you do the right thing to bring back the money to help our own people. Some common sense is in order. Some common sense is about taking care of each other.
By the way.
I don't know if you saw this on Dan Dan Abrams Dan's News Nation show. He had on a guy who has made money starting this X account. It's I think it's called the Nancy Pelosi stock tracker. I might be misnouncing it. But what they do is they track what stock she's buying, and they buy it.
And they're getting rich.
Off of it because they're like, how does she making so much money on it? So they're just following her, following what she does. It's actually hysterical.
I'm sure it's not inside of trading. I mean, heaven forbid. There was a time. I don't know what the laura is if there was a time that Congress was voted that they couldn't trade any longer, and now I think it disappeared. I don't know what happened. I don't know enough about it. Yeah, what do I know? You know, I'm not really qualified to talk about this stuff. It's logic, it's common sense, it's business. Take care of your own. Take a break. We'll be back in a minute.
Always in fashion.
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Welcome back to it always in fashion. Here's your host, Mark Webber.
Tonight's show is Make Love Not War. My intention tonight was to talk about China, and I will in a moment, I will. So many things are going on in the government. President just began. He's in in three weeks. He's making massive changes. Pretty much everything he's doing makes incredible sense. And the Democrats are back at it.
All.
The hate is coming out, everything is being criticized. It's like nothing ever happened. It's like there was no election. There's not even a minute that they won't take a pranknon pause and set to themselves. Maybe what he's doing makes sense. Maybe now I want to talk about China because of the trade war where it's going. I have uniquely qualified position on China. I am uniquely qualified to talk about China. I was in China a lot of times,
growing up in this industry. Active matter of fact, I was always referred to by the Chinese in Beijing as a friend to China. I don't think it's written anywhere. It was a long time ago. The concept is a friend in need is a friend. Indeed, I was a friend who helped at a difficult time to and then our friends in China. I helped and they helped us. My first trip to China was in the early eighties, at a time when China was reopening to the West. Most of you were too young to remember. Hey, I
was too young to remember. Now let me give you a moment of backdrop for those of you who don't understand the history of China, which is thousands of years old. But let's go back to nineteen forty nine Chairman Mao Mount Saint Tung. He believed that to the west Europe, the West the United States were harmful to his culture. He believed we were ruining China and he didn't want anything to do with it. He embarked upon a principle.
They called it Maoism officially Mount Saint Dung thought it was a variety of Marxism Leninism, and he developed it while trying to realize a social revolution and it was pre industrial society of the People's Republic of China. How he, Mao was considered one of the most significant figures of the twentieth century. His politics and his policy were responsible for a lot of maybe deaths since starvation and persecution, but he had a point of view and he had
a vision for the country. During this time, when he started to try and take China to a different place, there was equivalent of a civil war. There was the General Chiang Khai Schech one of the leading politicians, was pushed out of China. He went to Formosa, which eventually became Taiwan. It started a new Chinese government called the Republic of China. And to this day, the history seventy years later is about who owns China? Does the PRIFC
owned Taiwan? And it's a problem. But back in nineteen forty nine when Mao made a decision to close his doors to the West. And when I say closed, no contact, no commerce, no dialogue, no visitors. He closed China. He felt the Commers party felt that the West was polluting and they wanted nothing to do with us. As this went on for fifty years, there was no direct contact with China, between our government and their government, perhaps behind
the scenes. Nineteen seventy two, then President Nixon, in his Secretary of State Henry Kinchin Henry Kissinger visited China and they agreed to open up the West. China agreed to lift the veil over their country and re engage with the West. It was a feel out process. It was amazing process. It happened relatively quickly, and for the first time in fifty years, China had relations with the United States.
And it was a remarkable time. Could you imagine in China never having in business relations other than cordial relations or diplomatic channels, And now it's open. My first trip, as I said to you, I went in the early days in the early eighties, and it was amazing. I'll never forget. I swear to you this is true. My first trip to Shanghai when I got out of the hall my first trip to Shanghai. When I left the hotel,
people swarmed around me. They were looking at me. They never saw a Western person, they never saw one of us, They'd only seen their own. They swarmed. They literally stought, and they're gaalking and looking, and some of the most adventurous actually touched me. They wondered to see if I was real. That's how far it had been my first recollection. When I saw I was waiting to get picked up in a car, and the car looked like something out
of the fifties. And all the cars in China, including the black Flag limo which I would travel around in, were cars from the fifties. And I asked the head of our Hong Kong office, who's my translator and companion on the trip? I said, what's going on here? Why will these cars look like this? And they said, China only had the plans for making automobiles from the forties and fifties. They closed the door and that's why nobody could see it. And yet here they were changing the
world forever. They wanted to switch from an agrarian population to an industrialized population, get in manufacturing and export all around the world, and companies like the ones I worked for PVH were one of the ones that was going to help that happen. I was part of a wave of American businessmen and women on the front line of opening up this channel. I remember driving in that car down the main thoroughfare. I forgot what it was called.
Don't hold me to it. It was old dust. It wasn't really paid, and there was street sweepers and the dust was overwhelming. They couldn't keep up with it. They picture of rural land with not really great roads and the wind, and it was crazy. And I kept saying to myself, how this this country? I knew it was a concress country. How did this country decide that that particular person, male or female, would be street sweepers versus the people I was soon to meet in the offices.
And I always wondered about that. When I got to China my first trip, there were not a lot of hotels. There were no hotels. They were just starting to open. I am paid the famous Chinese architect built the first modern hotel in Beijing, and that's where I stayed the first time I was there. The next time I went
back there, were enough rooms. They actually started asking people, now that's a kind word, to move out of their homes in the large department buildings that had been built and make room for American or European business people places for them to stay until they had hotels. I personally and many people in my company had traveled to China at that time. I actually slept in the suite that Richard Nixon slept in when he opened up China was
fascinating looking at the people. They all wore uniforms. They were called mouse suits. They came in three colors, army green, navy blue, and industrial gray, and they only had two sizes, too large and too small. It was fascinating. They had absolutely no interest in fashion. What they were great at was banquet dinners. One of my favorite stories, Jesse, you were in Hong Kong.
No backward, Oh, very modern, very very modern, state of the art, top electronics, top restaurant's, top cars.
It's not it was. It was very it was.
I mean what it was was basically the Asian version of New York City.
That's what it was. In my view.
I thought it was incredible. It was the only place I think that would probably compare and I haven't been. You would probably know better than me. Is Shanghai, right, Shanghai's probably similar to that.
Oh, Shanghai is way more advanced than New York City. Look, let's face it, China has been building this country for the last twenty or thirty years from scratch, so everything they have is modern. Everything they've done is latest technology. It's brilliant. But when I'm talking about it, I was there. It was bizarre. It just was like going to in the middle of our country where nobody has developed it yet, and start putting up homes. Most of the transportation was
on motorbikes. You would see guy delivering one hundred hertens on the back of a motorbike. You see families, mother, father, three children on a motorbike. That was their means of transportation. It wasn't just in China and Taiwan and Korea. It was often the same. I'll never forget. One of the most fascinating times I ever had was back in Maxims.
Maxims was a famous famous restaurant built by pr Pia, built by Pierre Cardan in Paris, and someone opened up a license, or Pierre Canadena himself decided to build one in China. Now I'm in this place where it's just it's just at the beginning of the Industrial Revolution, and in the middle of the city there's this incredible restaurant from Paris called Maxims. What they did is every single door, wall, table chairs were imported and rebuilt to resemble Maxines in
Paris identically in China. All the waiters, all the people working there were dressed in tails and tuxedos. They looked they looked elegant. But before this they were working in fields. So their ability to get the restaurant running the way they wanted to was when we were there, still a work in progress. My favorite of all when it came to ordering drinks, I ordered a club soda or a coke or diet coke. At the time, I used to drink beer because I was afraid of taking ice, so
I drank a lot of beer in those days. Jesse, you ever known me to drink beer?
Who is this?
I have never heard seen you drink beer. The only thing I've ever seen you drink is zambuca. The thing with a little is it like a raisin or a fly in it? I don't know what it is, but used to drink it.
No, it's actually coffee beans, so liquor with coffee beans, an Italian thing. It's delicious. I love it. I have a bottle in the house, I just don't have a clue and I even have opened it. But here I am drinking beer and one of our friends from Hong Kong orders tea. Now we're in China. Tea in China, you know it's that thing. Now, there were two types
of tea in the world. In China, when you ordered tea, you got tea leaves and they poured water over the tea leaves and what was underneath it was your tea. And w they served your tea, it had the tea leaves in it, so the tea leaves would get in your mouth or you know, you'd have to sip it differently. So guy orders tea, and there's all kinds of debates going on in China. What's going on in the restaurant. Finally the matre d of the restaurant comes in and says,
we have no tea. So my guy says them, what do you mean no tea? This is China. He says, we have no tea. What they didn't have with tea bags, and therefore they wouldn't serve the tea in maxims the Chinese way. So can you imagine going all the way to China and find out no tea in China. My favorite thing with drinking. Do you ever hear a maltai Jesse? Did you have it when you were in Hong Kong?
What's maltai now?
Uh? Well, in my day was the national drink of China. It's a rice wine and it comes in what looks like a porcelain chanitor and drum, you know, like an industrial drum. They leave oil in all those movies in the United States and the Kill Guy they put him in a drum. That's what it looked like. It was white porcelain drunk. If you opened up the cap, the entire room would smell. It was the most potent thing in the world. You couldn't drink a tablespoon without getting drunk. Unbelievable.
We used to have designated drinkers because these guys in China, they were used to going out in parties, taking people out, entertaining. They seemed to be able to drink this stuff. Either that or they were pouring it on the floor and faking us all out. We used to name designated drinkers, and I can't tell you how many people I carried out and my associates carried out on nights with the Chinese and drinking dinner. It was an amazing point of view.
Fortunately for me, I wasn't drinker and I never had to be a designated drinker. But it really it gave us camaraderie and the business was friendly when we showed up the next day to work. Now, as I said before, I had always been a friend to China. I was part of the first exploratory group from the company Phillips Venues and who ventured into China early in the Nixon opening it up, and we went to Beijing to establish relations in or pushed a test order and a shirt
factory in Beijing. Now I happened not to be there on the first trip. The CEO of my company went there, did all a routine and was given an opportunity to buy ten thousand dozen dress shirts in China. Now, the problem was China didn't know how to make our shirts. Now, don't get me wrong, China has a billion people and under those mouth suits they're wearing shirts. So they know how to make shirts, but they weren't familiar with the
international standards. The amount of stitches parents, the amount of buttonholes, the kinds of collars we needed, the way the seams down the armhole would be, the fits. They weren't familiar with any of that, and they needed to learn. They also needed to learn about dye stuffs. What a dye stuff the chemicals that are used to dye fabric that usually comes in white color that needs to be dyed into colors. And the best way I think any of
you out there would recognize it. You ever see or hear stories about somebody wearing a red shirt or red pair of pants and they sit down on a white couch and ruin it because the dye comes up. China didn't know how to make dye stuffs that would not excrete color. They also were making a lot of their products with lead, and in the United States we learned that lead could course cancer. We didn't wanted that, so when we went to China, the first ten thousand dozen
were made in white only. We didn't want to put our own label in them because we were afraid of the quality, and the idea would be we'd import them back into the United States, and if the quality wasn't right, we'd either sell them an off price to one of the retails at a crazy price, but not the venuesing label. We would put the retailer's name in. Whoever that retailer
may be. We called heat ceiling. You take a label with glue on it, you apply heat and pressure and it would permanently affix the label inside the collar of your shirt. The ten thousand shirts came in, the quality was okay. We didn't put the venues and name. We put a private label in, sold it to I don't recall, TJ Max and A Joder. I came in the next time, and the next time I came was time we were going to give them the right to make venues and
treach shirts. They were on it. They were thrilled. We were excited. So I get to China, and in those days, the head office, the head of the government was in Beijing. I guess it still is. The way it would work is we would make manufacture agreements in China with the idea that they'd give us great prices. You just texted me, Jesse.
Yeah, it's fine, you can ignore it, Okay, I mean look at it later, look at it later.
Okay, we were going to make manufacture agreements in China and develop the quality that were required for them to import shirts into the United States and for that matter, around the world. So let me just see. The good news is that China knew they needed to learn. They wanted to become industrialized, they wanted to grow, and they wanted to learn the right way. They wanted to be international exporters, and a company like ours that had the technical know how was more than welcome in China. We
were treated. I can't tell you how nicely they opened their doors to us, and they made us feel welcome because actually we're about to teach them. Interesting enough, let me go into this for my memory for a second. We were making shirts in the United States, call it a white dress shirt based out of broadcloth. The price was probably around one hundred and twenty dollars a dozen to make those shirts. We also at that point were
importing from Korea at ninety dollars a dozen. We arrived in China and after explaining what our requirements were, what the quantities we needed, what the stitching we needed, the details, all the technical know how, China offers us a price of thirty six dollars a dozen. Think about that, one twenty a dozen from US ninet different creator. They offered us thirty six dollars a dozen without any negotiation. This
is a mind blower. And all the effort, all the time, we took, all the political trips, all the handshake, all the bowing, all the engineers, the test order, the technicians, the marketing people, all the designers. We came to China to teach them how to make shirts, and the nature of our relationship is we would get prices and in turn the engineering know how. We supplied them, including a market in the United States, with a label that was
considered prestigioes around the world. We gave them the opportunity to put their label made in China in our shirts. They're very proud to have these labels. They were very proud to ship products into the United States. When they did, they set a whole team of their delegation to walk in the stores and see Maide in China, in Macy's
or wherever we were shipping it. I'll never forget my first trip on men In fact, before I go there, though, I should talk about how you do business at the rest of the world and compare it to the companies and the offices who we are in Korea. And by the way, anybody says we China stole our technology is not true. We gave it to them gladly in turn for something we thought was important. Now let's get back
to it. If you would go to Taiwan, to Chahar or tap in Hong Kong, work with business owners and companies that wanted to sell your product didn't work the way it didn't China. In China, you had to go to a political office, the head of the political office in Beijing. I'd missed admit when I was there. In Beijing it was called peaking. They didn't change their name back to the traditional in China to very few to
a number of years later. Anyway, we met someone from the head office, we sat down and they would tell us you're going to make your shirts in Beijing factory number one. If we'd ask why number one, you wouldn't get an answer. Is that our only choice no to have a chance to inspect it before we go there. We'll let you walk through the factory. You'll be in the fact factory tomorrow morning at eleven o'clock and we go to the factory. We knew we're going to the business.
We knew there were negotiations, but there was no negotiations. Here's the factory, you're going to make it, and here's the price. So we begin to tour the factory, and the manager of the factory and is people who take us around and show us all the operations, answer any questions. I was accompanied by members of our Hong Kong staff who spoke Mandarin and they translated between me and them and what was going on. And one of my first
recollitions was how professional the factory looked. As they said, China made shirts for a billion people, they just didn't know how to make them the way international people needed them. I walked into the finishing area in the Chinese factor. You know what finishing is just.
Putting the finishing touches on something.
Yeah, well, shirt making, it's ironing, Yeah, putting in the you know, the putting in the cardboard and the collar under the collar, pinning it, putting it bags. That was what's considered finishing.
See that was a better explanation than me. That was a much better explanation.
Well, it was more detail. I'd like to think I know more than you about this. Anyway, I won't argue with you the lore, so I'll never forget walking down an aisle in the factory and I had never seen anything like this aisle before. It was in the finishing department. I don't know. It's probably about two hundred workers and one hundred yards On each side of the conveyor belt,
there was a conveyor belt. On each side of the conveyor belt were these people, and each one of the people facing the conveyor belt on both sides were Chinese workers. One of them, all of them had a small Chinese bowl, a toothbrush, and a bar of soap. And as the shirt would come around on the conveyor, the various different workers would pick up a shirt and with their toothbrush and soap and water, they would carefully take off any improfessions on the shirt as they passed. I remember leaning
over to my office management. I had an enginey and I said, what the hell is this about? We never seen anything like that. I asked them to find out what were they doing, and interestingly enough, they said, they have making white shirts and they want them to be perfect. Interesting they would take out all the dust and the impurities from the air, particularly white shirts. When we asked why are they doing this, the manager of the factory said,
we have to keep people employed. China was throwing people into the process to make sure the quality is even better than you can imagine at the same time as ours. They were making shirts that could be better than the ones who are making in the finest factories in the United States or anywhere in Hong Kong or industrialized countries. It was amazing to see, and they were doing it because they were learning and they wanted to protect their economy.
Many years later, I remember watching an interview with President Obama at the time, and I think Jing Hun p I forget his name. I'm sorry, I don't remember it really, and they were having a conversation. They were talking about this particular clip that I saw, what keeps you at wake at night? And Obama then started talking about nuclear weapons or terrorism, whatever he perceived to be that which keeped them awake at night, And then he asked the
Chinese premiere what keeps you awake at night? And the Chinese premier said, I need to find twenty million jobs every year for my people. So when you look at the process of the Chinese government, the relationships in China, the businesses being directed through Beijing head office, when you look at what took place in China, our relationship was amazing. We brought technology, we brought them a market. They gave us amazing prices. They were much less than there were
competitors around the world. That was the nature of China. I found them to be unique, honest, interesting negotiations. They knew their guardrails. They always delivered what was promised. We in turn, were honest, paid our bills in time, never canceled orders, held defeat to the fire on quality. It was a wonderful symbionic relationship. We both prosper and as
they learned, our profits increased. Yet back in those days, when I would come to China, they would call me a friend in China, and to this date, I look at China as a friend now. Like I say, it's not as easy for him to say, because I'm not a politician. My job was to conduct business and protect our country's economy and make it work with a foreign communist country. So I can't make judgments. I can't I negotiated by company for I negotiate for my company and
for my country. One lesson you learn you grew up in business. One of the first things they teach you never discuss politics in business, and particularly in a foreign country. It just don't work. You never know what your piece these people are thinking. They're different than you, theresent different thing. You don't know if they would get in trouble. You never mingle business with politics. You don't know what to think. You don't know what you're allowed to say, you don't
know what they're allowed to say. You don't know who's listening. Just go about your business now. I have been caught up in some conversations around the world, but I avoided most. I'll tell you talking politics in a foreign country is dangerous. It's with foreign people. You have a good idea. Of course, you're in a diplomatic corps, then you could do it. You're instructed. No, you need to accomplish. You do not talk politics. And the reality is the Chinese people are
playing chess. This is my greatest concern. I have nothing but the highest regard for these people. But as different as we are, as different as they are, I'm worried that their chess game is better than ours. I don't understand why there's so much activity in China. W appear to be undermining our country when we're such important partners whatever their long game concerns me because we don't seem smart enough. Well, kind of like the intouchables when they said,
you bring a knife to a gunfight. We're bringing a knife to a gunfight. We're fighting a big war here, a war of brains, and we seem to be underutilized and out of our league. And my biggest concern, my biggest concern is Trump. You know, there's starting to be ramifications to what he's called the trade war. I never thought of trade being weaponized and using it to stem the flow of fentanyl, brilliant, using it to get fair trade,
a balance of trade. If we buy a trillion dollars from China, they should buy a trillion dollars from us. But at the end of the day, China seems to be willing to push their plans back by years. They're acting as a country in a position of strength with financial resources, and over the last twelve years, I'm wondering, now that he's woke up our country, are they trying to ruin his presidency? Are they trying to make it hard for Donald Trump to be successful? And why would
they do it in a chess game? Because they think he's strong, they think he's leading the country in a right direction, and they just don't like what he represents for China. I don't know any of that to be true. Our concern is this country that I've worked with, China, where I only had the highest regard for, is now fighting a trade war with the United States. I hope
it lasts a minute. I believe we should be making love, not war, with that back in the minute and will continue to talk about China always.
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Welcome back to Always in Fashion.
Here's your host, Mark webber Tonight.
I want to make love, not war. In this case trade wars. I'm concerned about them. Although I do respect President Trump weaponizing trade, I am concerned that they could be adverse effects. I'm not saying we should back down. I think we should talk more. We have to negotiate. I do not like I do not understand why our largest trading partner, China and the United States cannot agree on most things. And I want to talk about right now. Hey, Jesse, let's talk negotiation. Who wins the negotiation.
Negotiations can get ugly, both sides will fight it out. But in any negotiation, you know who wins the side who has the power to walk away, And.
That is my concern with these negotiations with China. All our medicines come from China, so many of our product come from China. I am not convinced. Here here's a crazy one we're in. They're always in fashion business. I'm pretty much convinced without China we would be walking around naked. I don't think there's enough apparel production in the United States or from all the other countries that we buy from to keep us all closed for a year.
Well, where we going to make iPhones, iPads, tablets, laptops? Do we even have the ability to do that work? Silicon Valley? Do we have the ability to manufacture that here in the United States?
I don't think so.
And by the way, you know there's talk about if they're significant tartts. It was ten percent on China. Right now are the American companies, like tech companies that are just going to eat the cost of it? But then it's going to go down to the workers, right Their incomes are not gonna They're going to be not paid as much, and then I think everybody's going to feel the effects of it.
So I'm a little concerned. Are you a little concerned?
No, I'm not worried about the cost of doing business or the price of poker. That is a fact of life. If we raised China by ten percent and they raise us by ten percent, that's all well and good. But now I read the other day that in China they're now doing an exposy on Google. They don't like the way Google conducts themselves. That is dangerous. And this week a Reuter came out with an article regarding Calvin Klein
some other company. I don't know, but I want to play it for you the article I hadn't read and listen to what it's saying.
China plays Calvin Klein owner PVH Corporation and US gene sequencing company Ilumina Incorporated to a so called blacklist of entities among a series of retaliatory actions after new tariffs ordered by President Donald Trump took effect Tuesday, The Ministry of Commerce said that PVH and Alumna infringed on the principles of market transactions and undertook damaging actions against Chinese companies,
without elaborating. PVH is also the parent company of the Tommy Hilfiger brand and has been under Chinese regulatory investments since September for allegedly boycotting cotton from the Shinjiang region, though the statement did not mention the issue. Illumina is the leading global of genetic sequencing and arrival to Chinese biotech giant BGI Genomics company.
This is basically saying, if I'm not mistaken, six percent of Calvin Klein's operational income comes from China, but in the seventy or eighty percent of their products are being manufactured in China. If China wants to cut off Calvin Klein, they can do that tomorrow. In fact, Calvin Klein stock has tanked since this stuff has gone on, since we put the embargo in. I didn't anticipate that kind of retaliatory action. I thought it would be just dollars and cents.
I don't know whether President Trump felt it would be just dollars and cents. I didn't know they were going to attack companies and perhaps put us out of business because of this trade embargo. Now, having said that Calvin Klein in particulars is getting involved with the laws of the land in China, you were heard in that article they refused to buy cotton in that territory. Once again, if my memory serves me right. That territory in China
employs prison workers. They make people who are working in prisons work in the factories without getting paid. And I think that's against our rules or our laws. Jesse, do you know if that's illegal here?
Ah, no idea. I was sick that day in law school.
Well, I would assume in the United States it's against the law. I believe our prisoners make money on whatever the jobs they're assigned to, But in China they don't feel the need to. And here's the tricky port. Are we in a position to tell China what's right for China let alone? Would they even listen to us if we went in in the beginning and said, we want to buy China's products, but if they have slave labor or which that was, I guess what they're referring to,
the prison labor, We're not going to buy. So you don't put us in those factories. But it's after the fact. I've learned a great lesson. I have a great story for you. A couple of them actually Bangladesh. Bangladesh had a problem, a lot of street gangs, a lot of learned children. There's not enough schools, not enough daycare, and not enough places for them to be without getting in trouble.
So young kids, boys in particular, whatever school ended, their parents were working or there's no school, they're running around the streets. They're getting into trouble, lots of trouble. So a lot of Bangladesh parents wanted to bring their children to work. They would come to work, they would work right next to the mother. They would make money to help the family live because they weren't making enough money to get by. So the children were working. But the most
important part, the children weren't getting into trouble. They were not on the streets running around with gangs. It is against our policies as a country to work with factories that employ child labor. Now here's the question, what do we know about what's going on in Bangladesh? Are we helping them are hurting them? If the mother is involved and she's made the decision, of the fathers involved and they made the decision, is it right to impose our
will on the Bangladesh people. I always agree to it because that's the rules that are established in the United States, But there are questions about telling people in foreign countries how to work. That was a great thing. We made a stand that everyone in Asia deserve to be paid for overtime. But what would happen at the critical months
before Easter, before Christmas? These people had to work overtime, and they were forced to work overtime even though it's against our rules, and we were left for the quandary, do you want the products you're bought or not? And no matter whether they said it or not, no matter whether they agree it or not, an awful lot of factories are running two sets of books, one showing those
people getting paid and the other not. I have no idea what happened, but it just goes to show you how you tricky it is to get involved in foreign labor camps. I'm concerned for Calvin Klein, concerned for our countries. I'm concerned for all these things. It's a mess. I don't think Donald Trump has done anything wrong. I believe that behind the scenes they're talking. But before it gets too out of hand, there's a lot of things that have to go on. China, like them or love them,
they have a country to run. They want to keep their people employed. You know the one thing I learned traveling all around the world, Well, I said before you never discussed politics. You can talk to people about being people. And the one thing I learned no matter what country I was ever in, whether it's in Paris or Taiwan, Korea, Bangladesh, Indonesia, Hong Kong, China, Macau, you name it,
