This is a rush transcript from "Your World," November 9, 2010. This copy may not be in its final form and may be updated.
STUART VARNEY, GUEST HOST: November 9, 1989, the world witnessing an American president talking up capitalism, as a wall came down. Twenty-one years later, did the world just witness the reverse?
Welcome, everyone. I am Stuart Varney, in for Neil Cavuto. This is "Your World."
President Obama telling the world today, we want China to succeed and prosper, and we are not interested in containing that process.
Don't get The Donald started. You've heard him say we are losing our country before, but wait until you hear him now.
Donald Trump joins me on the phone.
Donald, what do you make of the president's statement on China today?
DONALD TRUMP, CHAIRMAN & CEO, TRUMP HOTELS & CASINO RESORTS: Well, I think it is absolutely terrible, Stuart. It's just unbelievable, unthinkable.
Can you imagine Ronald Reagan making that statement? Can you imagine almost any president making that statement?
China is succeeding. They are rebuilding their country off our money. I mean, they're -- we are making so many products in China, paying China so much money for those products, that you go to these Chinese cities, they are rebuilding cities and they're building new cities that are bigger than any of our cities.
It's absolutely insane to have made that statement.
VARNEY: But -- so what are you going to do about this? Obviously we have got a trade problem with China, but we have got news today that GE is getting a $2 billion investment out of China, and news also today that Saginaw, Michigan, is now -- China is the number-one employer in Saginaw, Michigan.
I mean, what...
TRUMP: Sure. That is a tiny, little place that is wonderful, but they are using that just to show how nice they are, when, in fact, they are not looking for our good.
And they shouldn't be. They should be looking for their good.
VARNEY: What do we do about it?
TRUMP: And they have people that are very, very smart.
What I would do?
TRUMP: You have such a huge deficit with -- trade deficit with China. Their currency is artificially low. And, see, we have fallen into the Chinese trap. We are now destroying the dollar in order to try and compete with them. We shouldn't be doing that. We should be keeping the dollar strong and stable and we should tax Chinese products.
And the people that talk about free trade, we don't have free -- I am a big free trade believer, by the way -- but we don't have free trade with China.
China is, literally, going to destroy this company -- this country. If we don't get smart quickly, China will destroy our country.
TRUMP: And they will do it with a smile. And our people have no idea what is happening.
VARNEY: Now, President Obama looked like he was staking out a business negotiating position with the Chinese, in advance of the big meeting that is coming up.
How would you judge President Obama and his business negotiating skills?
TRUMP: Well, we have got the wrong people negotiating for us.
Now, when General Electric -- and they are very good friends of mine. They're partners of mine. They're great people -- $2 billion is a drop in the bucket. Now, we will get front-page news, $2 billion, but we are losing hundreds of billions of dollars to China. We are rebuilding China. And in 10 to 12 years, China is going to make us look like small- timers. And it's off our back.
VARNEY: What -- but if we do something dramatic vis-a-vis China, isn't there a danger that we would just ignite a trade war at a very difficult time for the world economy?
TRUMP: Well, I would love to have a trade war with China.
TRUMP: Because, if we did no business with China, frankly, we will save a lot of money. We're losing a fortune to China. There's no -- when you talk about even trade, they have devalued their currency, totally devalued their currency. So, I buy many products from China. And I will tell you, the American -- and you know -- because I have no choice -- the American companies cannot compete, because they have devalued their currency.
Now we have fallen into the trap. We are devaluing our currency in order to compete. What that is going to do is instability in this country. A loaf of bread is going to cost $20 pretty soon. A candy bar is going to cost $10. People are going to see.
And look what is happening with oil, our lifeblood.
TRUMP: Oil is going through the roof. Now, that is a combination of China. And, of course, OPEC is laughing at us.
VARNEY: All right, Donald Trump, you are taking a very strong line there. Trade war with China, you don't mind it. But that's the last word. Donald Trump, always a pleasure. Thanks so much, sir.