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Things up and other people get pulled into it, and then you're looking at real genuine disaster there have been terror-let cascading disasters before. that's the thing that has happened. >> but the thing that pushes back on that on the flip side is almost all of these things are really bad for both the u.s. and china. >> but so are physical wars. often, almost always. >> but most of the time we avoid going to physical war. most of the time the two countries have a strong incentive to avoid a war. it doesn't work perfectly, but it works most of the time. similarly here, the one thing that is ho...

Almost all of these things are really bad for both the u.s. and china. >> but so are physical wars. often, almost always. >> but most of the time we avoid going to physical war. most of the time the two countries have a strong incentive to avoid a war. it doesn't work perfectly, but it works most of the time. similarly here, the one thing that is holding this together is an all-out trade war can be really bad for both the u.s. and china. china is probably in a worse position than us to manage it economically. the flip side it's not a democracy, so they have more flexibility to put the public t...

Explain the many different dynamics there. >> that's the big -- >> that's the big one. >> dwarfs everything else. the critical relationship of the 21st century. right now a very complicated situation. the chinese, this is a critical year for them. late this year they've got the communist party congress. xi jinping wants to consolidate political power. he does not want a crisis with the united states, a trade war, a physical war. he will try to come here, give investments that create jobs. the president will press him on trade, on north korea. it will be a feel-good meeting. that will be the at...