Tensions Heightened Between the U.S. and China

Andy Brown and Bloomberg New Economy earlier. That's on his radar as well. The relationship between the two continues to be complicated yet inextricably linked. Someone with a keen perspective on all of us and back with us, as Chris Fenton, trustee of the US Asia Institute, author of Feeding the Dragon, Inside the Trillion Dollar Dilemma facing Hollywood, the NBA and American Business epook out last year. He joins us on the phone in New York City. Hey, Chris, good to

have you back with us. How are you, Carol? Always a pleasure and always a lot to talk about when it comes to China. Yeah, Woa is right. We talked about a bunch of our Andy Brown and Bloomberg New Economy, who you know lived in Asia. China specifically understands that market. You do as well. First of all, Uh, Janet Yellen

coming out making some comments. We also had regulators specifically here in the US and elsewhere, pointing to China when it comes UH, specifically to that Microsoft exchange hack that happened UH and saying that they were actors affiliated with the Chinese government, accusing the Chinese government of a broad array of quote malicious cyber activities. How would you assess the U S. China relationship here we are on Monday, July one. It's a relationship that's been fraught with strain before.

How does it look to you right now? Well, it's amazing. I mean I remember being on with you and Jason back in October two thousand nineteen, and that same question was asked right after the Daryl Morey tweet um that that shocks sort of the NBA and China relationship. And and we're in the middle of the Hong Kong protests at that time, and you cut it today almost two years later, and I would say this relationship has only gotten more amplified as far as its tense relations, and

it seems the only begetting worse. I mean, there are there are signs of some green shoots out there, but there are very few and far between. For the most part, we're seeing things getting even more and more and more tense and more difficult. Well, you mentioned Darryl Moury. I mean the NBA front office grew right back in nineteen and basically he came out and expressed support for Hong Kong's pro democracy protests. And then you had Lebron James come out and remind us what he did. Yeah, it's

and it's unbelievable. And we talked about it back then two years ago, and here we are today. We have Space Jam two that came out in United States theaters and in markets around the world, yet China has not allowed it access to that market. And quite frankly, that movie was made for the Chinese market. Both the NBA, Lebron James and Hollywood really set its sight on that market, being the largest in the world. And to date we do not have a release date for it. Right, and

this is Lebron Lebron James. He's been involved in this movie big time, obviously staring in it, but also in terms of the production of it. Yeah, no, and exactly. And he was one of the biggest critics towards the free speech rights of Darryl Morey, and there was a lot of reasons for him to do that because he had a lot of skin in the game when it comes to the China market. It's very difficult for people that don't to say, hey, why are you speaking up

against what Darryl Morey was doing. But the fact is he's making fifty million dollars a year roughly in that in that market from those consumers, and he needs to tread carefully. But the fact is he has been treading carefully for the last two years, and we're seeing sort of the lack of reward for that cow towing happening today with his movie not in theaters. It's always been delicate for any of us who have been following UH.

Increasingly US companies, global nationals, global multinationals overall, but US companies, you know, cozy up to China specifically over the last couple of decades because they wanted a piece of that one billion plus consumer market UH and doing whatever they needed to kind of get themselves on the ground. Do you think that change is dramatically going forward because of the heightened tentions. We've been in a heightened tention situation

before between US and China. Look, I've been very vocal about it because I am hopeful. I have two kids that are fourteen years old and I want them growing up in a more balanced global community. So I'm talking about it. But I also want to be constructive. I I refuse to speak out against C suite executives telling them that they're doing the wrong things. It involves all

of us. I mean, you have investors and shareholders that are putting massive pressure on these C suites to essentially cows out at the Chinese Communist Party and do exactly as they say. And on top of it, you can't just have one celebrity or one athlete like Lebron James take a stand. There'll just be a lone wolf for a sacrificial lamb and replaced by somebody else. So this

is a united we stand situation. We need to create the leverage as a nation, as an a Western alliance to push back against the Chinese Countunist Party and we can, and we've seen it before. They do retreat if you apply the right kind of pressure. But right now we have not done that. It's all been lone wolf approaches and that's just not going to get us anywhere. So be real. You were president of DMG Entertainment, Motion Picture Group,

General Matter, General manager, excuse me, DMG North America. So listen you you were working in China specifically when it came to you know, movies and all of that, you know, creative content and businesses. So I do wonder, is there do you expect it to change dramatically? Look, what I expect to change is more and more people like myself who were cogs in the wheel that believed in the mission of globalism being the best interests of the American um,

the average American citizen, and our Western allies. But the fact is we've done it too far. We've done it in a way that is detrimental to the long term health of the Western Alliance and we need to wake

up to that. And there's lots of us that are and it's time that we start to put pressure on leadership, on businesses and get consumers excited about the fact that hey, you know what, these companies, if they take an activist position against some of the things that are wrong in that market, they'll be rewarded with the pocketbooks of people in countries around the world that will generate more revenues

for those products and services. We just need to have the guts and we need to start uniting together because just one shot, one single entities trying to approach this is just never going to get us anywhere. But the bottom line is, I am hopeful. You're hopeful, Okay, But I mean, I guess I want to say, what's the likelihood? Just got about thirty seconds left here. I mean, hope is a great thing, and I'm an optimist and I'm

with you, but I do wonder what's the likelihood. The likelihood is getting better because I'm seeing a bipartisan move towards it. We are seeing both left and right unify in Congress to push forward bills that might do it. So I am feeling like we do have a likelihood, but it's going to take a lot of work. Yeah, that's a good point. Hey, listen, good to check in with you, b well. Chris Fenton, trustee of the USA Asia Institute, on the phone in New York City,