This is a rush transcript from "Your World," January 18, 2011. This copy may not be in its final form and may be updated. NEIL CAVUTO, HOST OF “YOUR WORLD”: Who’s on first today? What if I told you, contrary to all you have heard, not who you think, not Chinese President Hu Jintao, set to touch down at Andrews Air Force Base any minute right now -- you are looking at a live shot, but the guy he is going to be meeting for a private dinner a couple of hours from now. Yes, President Obama need not grovel with the leader of a country that owns nearly a trillion bucks of our debt, because Hu is who he is and China is the economic power it is because of us, because of all our spending on their stuff, without which, what if I told you tonight, Hu and China would just be stuck. Welcome, everybody. I am Neil Cavuto. And don’t believe me? Then maybe you would believe the Donald, because America’s ultimate deal-makers says we’re the ones in the best deal-making position and we’re the ones who should be calling the shots, and tonight it’s time we start acting like it. Donald Trump on the phone with me right now. Mr. Trump, very good to have you. Thanks for joining us. DONALD TRUMP, CHAIRMAN & CEO, TRUMP HOTELS & CASINO RESORTS: Hi, Neil. CAVUTO: What do you make -- I mean, as we watch this delegation get ready, Vice President Biden and others, to greet the Chinese president upon his arrival, we always tend go to him hat in hand because, quite literally, we owe him a lot of money. TRUMP: China is in such trouble without us. We’re rebuilding China. And we are ones that have the power. Now, we are rapidly losing that power, because they’re going to be taking things over, but we’re the ones with all the power, because they’re making our products. They’re making -- they are rebuilding their cities with the money that we have and the jobs that they have, and it’s an absolute outrage. And then the president of China comes here, and we greet him, and Obama will drop to his knees and kiss his hand. And I don’t get it. CAVUTO: Now -- now, wait a minute. TRUMP: They’re manipulating... CAVUTO: Donald -- now, now, Donald, I love you dearly, but the president will not going to drop to his knees and kiss his hand. TRUMP: Let’s see what happens. (LAUGHTER) TRUMP: He’s done that before. (CROSSTALK) CAVUTO: No, no, no, no, no, no. (LAUGHTER) CAVUTO: Careful. Donald, this is a family show. (LAUGHTER) CAVUTO: But what we’re saying is you think that we are always feeling beholden to the Chinese, when we hold a lot of the chits. What are those chits? TRUMP: Well, first of all, they are manipulating their currency, to a point where it’s very, very hard for us to compete with that currency. And I know because I’m a very big builder. And so many of the products that I order unfortunately come from China, because our companies can’t compete in terms of glass and many other products. They can’t compete with what China is doing. And, by the way, now they are trying to take the airline industry away and the air -- airline manufacturing industry. Wait until you see what happens to Boeing over the next five or six years, because you see that happening right now. What I am saying is this. They have totally taken advantage of this country. And instead of having fancy dinners for the president of China, I think our president should sit down and really have a heart-to-heart talk, because we are in big trouble if this country keeps dealing not only with China, but with OPEC and others, the way they’re dealing. CAVUTO: All right. I know you have said an earful on OPEC in the past. And I do want to focus on China right now. TRUMP: Well, it’s all happening. My predictions are happening. CAVUTO: Well, you know, to be fair, a lot of things you said would come to pass are coming to pass. But, on China, specifically, the fact that they have pulled back some of their ownership of our Treasury notes and bonds in the latest period, at that Treasury is releasing today, seems to rattle folks in Washington, that, boy, what if they pull back all the more? How would you, if you were president, Donald -- and a lot of people I know have been urging you to run for president -- but how would you deal with that if China is subtly saying, you know, you give us any grief, we -- we pull some more out? TRUMP: The problem is the Chinese do not respect us. They don’t respect our leaders. They cannot believe with what -- what they are getting away with. They don’t respect us, Neil. What we should do immediately is tax their product. They’re making hundreds of billions of dollars a year on us. We should tax their products immediately. Between all of the things they’re doing, including the manipulation, we should tax their product. And they can be our banker, because we’ll pay off those so-called loans so quickly, your head will spin. But what will happen is, as soon as we do tax their products, they will come, and it’ll be the opposite, as the expression -- you know, like the expression, they will drop to their knees when they see our president. But we don’t have the right people talking to the Chinese or talking to others, but we don’t have the right representatives, we don’t have the right leaders, we don’t have the right businesspeople, frankly, talking to their leaders. They don’t respect us, Neil. CAVUTO: What if we flipped it around, then, and did the Donald Trump thing, you know, told them, this is how we’re playing the game, we are not playing the game, and we’re going to get very tough with you? They start pulling securities out. TRUMP: It’s OK. CAVUTO: We start -- I would imagine a President Trump would then start urging Americans to buy less from China. TRUMP: Absolutely. CAVUTO: Trade war ensues. TRUMP: Well, I’d urge that anyway. CAVUTO: All right, trade war ensues. Then what? TRUMP: Oh, I would urge that anyway. Look -- look, this isn’t free trade. This isn’t free trade. This is -- if you try and do business -- I could tell you, Nucor, a great steel company, you ask that gentleman that’s running Nucor, is it a -- is it possible to do business in China, he will tell you it’s virtually impossible. We cannot do business in China. They do business with us. We can’t. I have had Chinese partners. I will tell you right now, very difficult, want the edge all the time. And unless we have the right people to deal with them, you’ve got yourself a big problem in this country. And we don’t have the right people as of this moment that are dealing with the Chinese. CAVUTO: So, do you deal with China at all? Do you do business there at all? TRUMP: Well, frankly, I would have told the Chinese not to come for this wonderful state visit, where they’ll -- they will outsmart our people consistently and again. I would say don’t come until they stop with the manipulation, until they raise the value of their currency, so that our companies can compete. How can we solve our unemployment problem -- and we have a big one, and it’s going to last, as you know, Ben Bernanke said the other day, five or six more years, but I disagree. I think it’s going to be much longer, because China and other countries are taking all of our jobs. So, we have to be much different than our attitude. And, frankly, we need fair trade -- not free trade. We need fair trade. And right now it is not fair. If you have a company and want to do business, look at what happened to General Electric recently. They had to give up all of their technology to do business in China. OK? If you don’t deal with these people strongly, right down the middle, and with great strength, they will take over this country, which is basically what they’re looking to do. They are not our friends, Neil. CAVUTO: All right. Just -- as you’re speaking, though, I’m just talking what people are watching back home. This is the scene at Andrews Air Force Base. Chinese President Hu Jintao has arrived. They’re rolling out the red carpet, I think, in the rain. But, nevertheless... (CROSSTALK) TRUMP: So, I don’t have a television in front of me. You’ll let me know whether our president drops to his knees, right? CAVUTO: Now, he -- now, Donald... (LAUGHTER) CAVUTO: ... careful. (LAUGHTER) CAVUTO: The president -- the vice president is there. You -- you can do this when you’re president, but right now we -- we have a -- an etiquette here. And -- and we should say, Joe Biden is going to be greeting President Hu Jintao. TRUMP: OK. CAVUTO: He will be bringing with him, Donald, the -- his country’s equivalent of their commerce secretary, some of their biggest -- I guess the equivalent of their biggest hedge fund investors. There’s talk that they are going to announce a lot of deals with President Obama because they have got a lot of cash to spend, a lot of green energy projects and -- and that sort of stuff. So maybe this approach we are taking is working and... (CROSSTALK) TRUMP: It’s not working. CAVUTO: It is not working? Go ahead. TRUMP: No, it’s not working. And the deals that they are making are small deals. And it is just a front, and they are probably not good deals for us anyway, but they are very small deals. It’s just a symbol so that they can continue to rip off the United States. CAVUTO: Now, you – you’ve spoken like this for a good long time, as long I have known you, about being blunt with those who -- who we tend to pussyfoot around, whether it’s OPEC or China. Would this be, if you were to run for president, your -- your -- your big issue? TRUMP: It would be one of the big issues. I would be able to actually lower taxes. I would tax the Chinese. I would do things to OPEC. OPEC wouldn’t exist if it wasn’t for us, because we protect these countries. We protect them. South Korea wouldn’t exist if it were not for us. And, yet, we signed a trade agreement that is so bad, that a child would laugh at it from our standpoint. But when the bombs get dropped, then they say we will sign the agreement that they didn’t want to sign, even though it was 100 percent on their side. It is absolutely insane what our leaders are giving away to other countries, absolutely insane. CAVUTO: But do you think our options are increasingly limited because of how much money we owe? In other words, we’re in deep. And, as a result, we’re in deep to these guys? TRUMP: We get deeper and deeper, and we get weaker and weaker, and something has to happen now. We don’t have the luxury of waiting years. Something has to happen now. Why did we send an entire fleet, including one of the largest aircraft carriers in the world, to North Korea to protect South Korea without them paying us? Why aren’t they paying us for this protection? They make hundreds of billions of dollars a year on us, and then we just send our fleet over there to protect them? For what reason? Why are we protecting them? Let them pay -- let them pay for protection. CAVUTO: Alright. So... TRUMP: No wonder we’re losing so much money. CAVUTO: All right. Now, so, Hu gets off. President Hu gets off this plane, and let’s say you were the president. I don’t know who your vice president would be. I would think anyone would be afraid of serving with you, but that’s a separate issue. But -- but let’s say you were there to greet him. He comes off the plane. What would be the first thing you would say? Not that you would be greeting him, but what’s the first thing you would say? TRUMP: I would bring him to my office and I would sit down and start negotiating. I wouldn’t worry about state dinners. The state dinner is just frankly a waste of time and effort. I would bring him to my office and we negotiate. And if he doesn’t want to negotiate in good faith, I respectfully say, that’s it. Enjoy Disney World, if you want to stay that long. CAVUTO: That -- that should go well. (LAUGHTER) CAVUTO: Is it your sense, though, that the market turnaround we have been seeing and the economic turnaround, what there is of it, that we have been seeing, Donald, owes in part to improving relations with China, that China buying more, having -- expressing more confidence in us, maybe it is working and you’re just not seeing it? TRUMP: Neil, we have hundreds of billions of deficits with China. We’re not making money with China. We have hundreds of billions of dollars. It is not the other way around. I would love it to be the other way around. If we were making $700 billion a year on China, great. But we are losing hundreds of billions of dollars. And you speak to companies. Sure, we do some business with China, but most companies cannot even get in. And -- and I recommend that you call the head of Nucor, who’s a highly respected steel man. Just call the head of Nucor, our largest steel company, can’t get into China. CAVUTO: Well, should they do what Google did and more or less go ahead and -- and tempt the giant and say, look, we’re not going to put up with this and we’re all but pulling out? TRUMP: Believe it or not, and no one understands it, we have all the cards, because we buy so much from China, that if we ever suggest that we’re not going to buy from China, that we’ll either restrict it in some form, or we’re going to tax it, which will in a way restrict it, they will come to the table so fast, that your head will spin. They are so afraid of -- of us not being able to do business. Their whole economy would collapse -- collapse. If we do not buy from China, their economy will collapse. CAVUTO: So, yet we all go scurrying to the plane and running to the plane. TRUMP: It’s an amazing phenomena. This is our leadership. It’s an amazing phenomena. And, by the way, I deal with many Chinese. I -- not only do I sell many apartments to them, one recently for $33 million. CAVUTO: Well, I read about that, yes. TRUMP: Yes, $33 million. So, it doesn’t mean, like, I dislike them. (LAUGHTER) TRUMP: And, by the way, if I were them, if I were them, I would be trying to do the same thing. They tell me that they cannot believe -- now, they didn’t know I would be thinking about the presidential thing, but they tell me that they do not believe what they’re able to get away with. They do not believe the stupidity of our leaders. CAVUTO: So, you think that they are just thinking we are a joke? TRUMP: I don’t think it. I know it. CAVUTO: But, then, again, if they are getting rich doing so, who is going to buy your fancy-schmancy apartments? TRUMP: I don’t worry about that. I have much bigger things on my plate, I must tell you, much bigger things. CAVUTO: You’re -- you are going to run -- you know, you are going to run for president, aren’t you? TRUMP: Well, I don’t know. Let’s see what happens. I will let you know sometime prior to June. But I will tell you that -- this. This country, if I do, and if I win, this country will be respected again. We are not respected. We are laughed at by the world. CAVUTO: All right, Donald Trump, here’s what you have got to do, though, if that’s what you’re entertaining. You have got to let people know where you stand. TRUMP: OK, I will. CAVUTO: Because I have no idea. TRUMP: I will absolutely try. (LAUGHTER) CAVUTO: People really have no idea where you’re coming from. TRUMP: Well, you have known where I have stood for a long time, interestingly. And everything I said about OPEC has turned out to be true. CAVUTO: Well... TRUMP: And oil is now close to $100 a barrel. And it’ll keep going up, Neil. And it will destroy this economy if we allow that to happen. CAVUTO: OK. Donald Trump, thank you. Content and Programming Copyright 2011 Fox News Network, Inc. Copyright CQ-2011 Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.