• With: Jack Welch, Former President and CEO of GE


    DONALD TRUMP, CHAIRMAN & CEO, TRUMP HOTELS & CASINO RESORTS: if we didn’t do business with China, we would be $350 billion richer this year.

    The fact is I love free trade. I also want fair trade. China is laughing at the stupidity of the people that are making deals with them, at least with respect to this country. And, in many cases, because the cards are stacked against our corporations and because of their manipulation of currency, in many cases, they laugh at our own businesspeople.

    (END VIDEO CLIP) Well, as you can hear there and regular viewers of the show would know, Donald Trump definitely not a fan of China.


    Jack Welch, I would say, very much a fan of China. We compare, you decide on dealing with Beijing, who, then, is the real apprentice?

    Jack Welch, my former boss, how you doing?


    CAVUTO: What do you think of what Trump is saying?

    WELCH: Well, he’s got some truth to that matter when he says this is about the businesspeople.

    The businesspeople make the deals. And they’ve got to make the right deals. If they’re caving everywhere, we will not get the right deals.

    CAVUTO: But a lot of them do cave. He’s saying a lot of them prematurely cave just to have a position there.

    WELCH: Look, it depends on whether you are really bringing something to the table.

    If you’re bringing technology and you’re bringing a unique product, and not a me-too product, you can drive terms with the Chinese. They’re great businessmen. They are going to squeeze. And you have got to have patience.

    CAVUTO: He’s saying they copy, steal, lie, cheat.

    WELCH: There’s some of that. He’s not wrong there.

    CAVUTO: Is there a lot of it?

    WELCH: Plenty of it. But he’s not wrong about intellectual property.

    But if you are a businessperson and you’re doing business there, you have got to set the terms and you have to decide what’s right for you not today, but over the next five years.

    CAVUTO: But, Jack, a lot of the CEOs I talk to in this country feel or act like China’s in the driver’s seat.

    And speaking of driver’s seat, GM apparently buckles on this expanding in China, many of its critics argue giving away secrets as to the Volt, how the Chevy Volt is made, and that they’re going to manufacture some of them over there now.

    So there is confusion and people wondering, why? Why are you doing that?

    WELCH: Well, a huge market, great cost structure, and opportunities to grow and to grow globally from China.

    CAVUTO: But Trump’s -- I don’t want do belabor this China thing, Jack, but Trump’s point -- and when you get through the bluster, it’s a good one -- that we are afraid because the Chinese own all of this debt, losing sight of the fact that they own all of this debt and enjoy this huge surplus with us because we buy a lot of their stuff. And, so, we’ve to realize that they are where they are because of what we do, and we don’t.

    What do you think of that?

    WELCH: Look, the fact – he’s right about one thing. We shouldn’t be beholden to them because of our debt, because they’ve no place else to do. They have Europe and ourselves, developed countries, where they need exports.

    And they do not have a consumption society. I’ve just come back from there and they desperately need a consumption society.

    CAVUTO: How did they treat you?

    WELCH: Very nicely.

    CAVUTO: Because you’re like a rock star there.

    WELCH: No, they appreciate age more than age is appreciated here.


    CAVUTO: Speaking of how you respect the politicians in this country, all those who want to run for president, do you have any horse in this race?

    WELCH: Well, right now, with those that are running, I’m a Mitt Romney guy all the way.

    CAVUTO: Why?

    WELCH: I think he has the best chance of winning, and I think we have to win. We absolutely...

    CAVUTO: You are saying you’re putting aside fervor for pragmatism here?

    WELCH: We have to win.

    CAVUTO: And none of the other guys can win?