An American in China; A Quiet Invasion | 60 Minutes Full Episodes
Summary
TLDRThe video explores the complexities of the US-China relationship, highlighting the economic and political tensions that have escalated under President Xi Jinping's leadership. Key issues include intellectual property theft, restrictive business laws, and the volatile investment climate in China. The US Ambassador, Nicholas Burns, discusses these challenges and their impact on American businesses. Additionally, the video touches on the broader geopolitical implications, including China's activities in the South China Sea and the potential threat posed by Russia's actions in Georgia and Ukraine. The narrative underscores the delicate balancing act required to manage these international relationships.
Takeaways
- 🌐 Getting into China is very difficult for most Western journalists, but US ambassador Nicholas Burns granted visas for an interview in Beijing.
- 💼 The US-China relationship is the most important, competitive, and dangerous for the United States, likely for the next decade.
- 🔒 Russia's invasion of Georgia 15 years ago and current control over 20% of the country mirrors concerns over further Russian aggression.
- 🚧 American companies face significant challenges in China due to intellectual property theft, espionage laws, and unpredictable government actions.
- 📉 China's economy is struggling with slowed export growth, high debt, and soaring youth unemployment, leading to foreign investment outflows.
- 🕵️ American businesses, including Banon and Mintz, have faced raids and accusations of espionage, causing uncertainty and fear among foreign investors.
- ☕ Despite economic and political tensions, some American companies like Starbucks, Disney, and Aptar continue to invest and expand in China.
- 👴 China's demographic issues, including an aging and shrinking population, pose long-term economic challenges despite past rapid growth.
- 🚄 The investment in infrastructure such as high-speed trains and skyscrapers has powered China's economy, but recent policies have driven away foreign capital.
- 🇷🇺 Georgia remains under threat from Russia with ongoing hybrid warfare, economic pressures, and political influence, as Georgia seeks EU membership for protection.
Q & A
Why is getting into China difficult for most Western journalists?
-It is challenging due to the strict control over media access and the political tensions between China and Western countries.
What are the primary reasons for the strained US-China relationship?
-The strained relationship is due to China's activities toward Taiwan and the South China Sea, the spy balloon incident, intellectual property theft, and the expanded espionage law.
What economic issues is China currently facing?
-China is dealing with slowing export growth, high levels of debt, and soaring youth unemployment.
Why have American companies pressed the pause button on doing business in China?
-American companies have paused due to risks of intellectual property theft, intimidation from the espionage law, and the uncertain business climate.
What is the impact of China's expanded counter-espionage law on American businesses?
-The law has led to raids on American companies, accusations of espionage, and a chilling effect on investment due to fear of arbitrary enforcement.
How has President Xi Jinping's leadership affected China's economic policies?
-Under Xi's leadership, there has been a centralization of power, increased repression, and a reversal of market reforms, leading to slower economic growth.
What are the long-term demographic challenges facing China?
-China is experiencing a decline in birth rates and an aging population, which poses long-term challenges for economic growth and social stability.
How has the Chinese government's approach to economic growth and national security conflicted?
-The government aims to control data and ensure national security, which sometimes takes precedence over economic growth, leading to contradictory policies.
What role do American companies see for themselves in the Chinese market despite the challenges?
-Many American companies remain in China due to the vast market of 1.4 billion consumers, despite the challenging business environment.
What recent trends have been observed in the Chinese real estate sector?
-China's real estate sector is facing a crisis with empty and unfinished apartments, a result of over-borrowing by developers and subsequent government clampdowns.
Outlines
🇨🇳 The Challenge of Reporting from China
The script begins with an overview of the difficulty Western journalists face in entering China. U.S. Ambassador Nicholas Burns facilitated the entry of journalists, highlighting the critical and competitive nature of U.S.-China relations. The segment also addresses Russia's previous and ongoing military actions, emphasizing the geopolitical tensions in the region.
📉 The Economic Struggles and Business Environment in China
American companies are finding it increasingly risky to operate in China due to intellectual property theft, espionage laws, and an unpredictable business climate under President Xi Jinping. Despite some businesses thriving, many are cautious due to the government's dual messaging on openness and security.
🌏 China's Economic Slowdown and Foreign Business Relations
The Chinese economy is experiencing a slowdown, leading to reduced foreign investments. Despite this, companies like Aptar continue to expand, banking on the long-term potential of China's massive consumer market. Ambassador Burns expresses concern over the deteriorating U.S.-China relationship, emphasizing its complexity and impact on global business.
🏢 Real Estate Crisis and Economic Challenges
China's real estate sector is in crisis, with millions of unoccupied apartments and major developers defaulting on loans. This has significantly impacted the economy, leading to a loss of consumer wealth and confidence. The segment explores the broader implications of this economic decline.
🏘️ The Human Impact of the Real Estate Crisis
The script highlights the personal and financial losses faced by Chinese citizens who invested in unbuilt apartments. The segment also delves into the government's role and the broader economic ramifications, questioning the leadership's handling of these issues.
⚔️ The Strategic and Military Competition
The script discusses the strategic rivalry between the U.S. and China, focusing on military buildup and geopolitical tensions, particularly in the Indo-Pacific region. The ongoing military activities and ambitions of China are contrasted with the U.S.'s efforts to maintain its global position.
📰 Reporting on the Russian Influence in Georgia
This section covers the ongoing Russian influence and hybrid warfare in Georgia, with detailed accounts of the local population's struggles and fears. The segment underscores the geopolitical significance of Georgia and the broader implications of Russian actions in the region.
🇬🇪 The Socio-Economic Impact of Russian Migration in Georgia
The influx of Russians into Georgia is causing economic and social upheaval, with significant increases in property prices and living costs. The script highlights the concerns of Georgian citizens and officials about the potential long-term effects of this migration.
🇪🇺 Georgia's Struggle for EU Membership
Georgia's aspirations to join the European Union are hindered by internal and external challenges, including government corruption and Russian influence. The script discusses the political dynamics within Georgia and the broader geopolitical stakes involved in its EU bid.
Mindmap
Keywords
💡US-China Relationship
💡Economic Capital
💡Intellectual Property Theft
💡Espionage Law
💡Economic Growth
💡Foreign Investment
💡Zero-COVID Policy
💡Real Estate Crisis
💡Military Tensions
💡Trade Partners
Highlights
Getting into China is nearly impossible for most western journalists, highlighting significant barriers to reporting.
The US-China relationship is described as the most important, competitive, and dangerous relationship in the world.
The US Ambassador Nicholas Burns granted journalists visas for a visit and interview in China.
China's economic issues are detailed, including export growth slowing, high debt levels, and soaring youth unemployment.
Intellectual property theft and expanded espionage laws have made doing business in China risky for US companies.
China's relationship with Taiwan and activities in the South China Sea have contributed to increased tensions with the US.
American companies like Disney and Starbucks continue to invest in China despite the challenging business environment.
President Xi Jinping has reversed many market reforms, leading to slower economic growth and greater government control.
China's real estate crisis, with millions of empty and unfinished apartments, has significantly impacted the economy.
The zero-COVID policy and subsequent lockdowns have traumatized the Chinese population and disrupted the economy.
China's dominance in manufacturing, particularly in solar panels and electric vehicles, is highlighted.
President Xi Jinping aims for China to become the global leader in technology and military power.
China's declining birth rate and aging population present long-term demographic challenges.
The interview with the US Ambassador discusses the delicate balance required in the US-China relationship to maintain peace and economic stability.
China's ambition to overtake the US as the dominant global power is a central theme in the discussion.
Transcripts
getting into China is all but impossible
for most western journalists this is the
financial and economic capital of China
but when the US ambassador Nicholas
Burns invited us to come for a visit and
an interview we were granted visas is it
our most competitive relationship in the
world right now this is the most
important most competitive and most
dangerous relationship that the United
States has in the world right now and
will I think for the next decade or
so what happens if Vladimir Putin enters
another country besides Ukraine by force
he already has 15 years ago Russia
invaded neighboring Georgia it has
military stationed there and controls
20% of the country what's next the
Russians are buying Apartments here in
every 33 minutes and they're registering
a business in every 26 minutes so we're
on the brink of very dangerous situation
here in
Georgia I'm Leslie stall I'm Bill
Whitaker I'm Anderson Cooper I'm Sharon
alony I'm John wory I'm Cecilia Vega I'm
Scott Pell those stories tonight on 60
Minutes
American CEOs used to Swoon over China
its vast pool of consumers has been a
magnetic draw for decades but doing
business there has become so fraught and
risky with intellectual property theft
and an expanded Espionage law used to
intimidate the business community that
us companies have pressed the pause
button on top of that the US China
relationship has become contentious due
partly to China's belligerent activity
toward Taiwan and in the South China Sea
the balloon spy incident of last year
and the list goes on making matters
worse the Chinese economy has hit a wall
export growth is slowing the country's
drowning in debt and youth unemployment
has soared getting into China to tell
tell that story is All But impossible
for most western journalists but as we
first reported in February when the US
ambassador Nicholas Burns invited us to
come for a visit and an interview we
were granted visas we spoke with him at
his residence in
Beijing more money is leaving China for
the first time in 40 years then is
coming in from American Japanese
European Korean investors now why is
that and how much of a problem is that
for them that's a real problem for this
economy they have 1.4 billion people
here they've got to keep it growing and
foreign capital is important you ask why
I think there's been a contradiction in
the messaging from the government here
in China to the rest of the world on the
one hand they say we're open for
business we want American CH Japanese
businesses here but on the other hand
they've rated six or seven American
businesses since last March raid raid
they've gone into American companies and
shut them down and made accusations We
Believe are very much unwarranted the
American companies include banan company
and the mince group a company that does
due diligence for other companies that
might want to invest here was raided
last year five of its Chinese employees
were taken into custody and they're
still there
another firm C Vision was raided L the
message wasn't loud and clear a report
about it was put on statun
television it accused Western consulting
firms of Espionage and stealing National
Security and Military Secrets they want
the investment to come back and they're
raiding American companies and there
they've passed an amendment to their
counter Espionage law and it's written
in such a general way that it could be
that American Business people could be
accused of Espionage for engaging in
practices that are perfectly legal and
acceptable everywhere else in the world
collecting data to do due diligence so
that you can decide whether you want to
invest in a company or form a joint
venture right what do you think the
Chinese are afraid that these companies
are going to find out these due
diligence
companies what are they worrying about
you know I think they want to control
data about the Chinese people about
Chinese companies and so U that I think
is at the heart of the problem with
those American companies operating in
that sphere Ambassador Burns told us
that's just one of the concerns he hears
about there is still intellectual
property theft from American companies
here is every American company afraid of
that yes all kinds of us companies began
flocking to China in the early
1980s after the country open to the West
under then leader D sha ping and now US
banks operate here Walmart has nearly
300 stores across the country Shoppers
here in Shanghai can buy
Levis browse in an Apple store and get a
caramel frappuccino Starbucks has 6,000
stores in China a thousand stores in
Shanghai and they want to keep building
because coffee this was a tea culture
for hundreds of years it's now becoming
at least with the young Chinese a coffee
culture and they love Starbucks they
love Starbucks and I'll buy you a
cappuccino I'll take one thank you
Boeing's here so is Tesla fizer Chevron
Intel but while some businesses are
thriving many of the foreign companies
are worried about the business climate
under President Xi Jinping if you track
China from the death of ma to the
opening of China to the world we've seen
a closing of sorts we've seen a
centralization of power of the party
we've seen increased repression of the
people of China here that's a very
significant Trend just over the last
decade with shei under his leadership
part of that Trend includes president
xi's reversing many of the market
reforms that Unleashed China's economic
Miracle they've been growing over 40
years the fastest growth rate in
recorded economic history 8 9 10 11%
growth rates they've lifted 800 million
people out of poverty but what's
happening is that growth rate is slowing
down most economists are now projecting
they'll be at 2 three 4% growth maybe
even lower in the next support their
society if it's that low that's going to
be difficult for them if there was so
much explosive growth if so many people
were lifted out of poverty why is he
turning away from what worked well I
think they've got maybe competing
priorities the government here in China
certainly wants the economy to grow but
they also have a national security
mindset they want to control data they
want that's more important the control
right than economic growth it seems that
way I think it's open for debate you're
hearing we are hearing both messages it
sounds as if you yourself don't know the
direction it's going what I perceive
here is that the greater energy is with
those on the National Security side of
the government of China good morning how
are you on a train trip from Beijing to
Shanghai the Ambassador pointed out that
in the decades before President XI China
powered its economy by investing in
these high-speed
trains roads factories and skyscrapers
that light up Shanghai the financial
capital of China but under President XI
China lost more than $120 billion worth
of long-term foreign investments last
year because of the weakening economy
and the harsh government tactics which
have left American companies uncertain
of the future there there are a lot of
American companies here have a lot of
them just picked up and left because of
this current business environment you
know that's interesting not many not
many not many why not China is the
second largest economy in the world it's
a big market so a few American companies
have left but most have stayed some
American companies are moving at least
some of their operations to Singapore
Vietnam Mexico but they're not leaving
China the market irresistible to
American Business people it's gigant
antic maybe they're not leaving but
they're not investing they're not making
major Investments until they can see
exactly where the government is head it
yet because of the 1.4 billion potential
consumers some companies like Disney are
increasing their investment welcome to
Shanghai Disney Resort it recently
expanded its Shanghai Disneyland that
they told us is
thriving aptar a $9 billion company
headquartered in Crystal Lake Illinois
is another American firm bucking the
trend of capital flight president of
aptar Asia shangu gang a chinese-born US
citizen showed us around one of their
five manufacturing sites in China we are
manufacturing for some of the largest US
Brands actually the US consumer Brands
this factory makes the packaging and
dispensing devices for food food
pharmaceutical and beauty products sold
in Asia all of our customers like PNG
L'Oreal they're all here doing business
abtar in China for nearly 30 years
recently invested $60 million in a new
Factory shangu gang says even in a
slowing economy the company is doing
well American companies here as the
Ambassador well knows are pausing or
cutting back on investment but not this
firm you're expanding well um because we
are here for the longterm and we believe
in the consumption Power Of The Rising
middle class it's 1.4 billion people
here and um imagine for for example
health care and the same with um
cosmetics and beauty and um beverage all
all those sectors packaged Foods these
are really the biggest market and so so
we are very confident about uh the long
term what does it say
about the confidence really in the US
China relationship it it seems to say
you believe that that things will what
I'm asking get
better that's a great question for the
Ambassador I believe so I hope so you
know we'll see actually burn says he's
wary of the future as the fundamental
rivalry and mistrust between the US and
China is shaking the confidence of the
business world and has pushed our
relationship to its lowest point in half
a century is it our most competitive
relationship in the world right now this
is the most important most competitive
and most dangerous relationship that the
United States has in the world right now
and will I think for the next decade or
so I want to quote you back to you and
tell us what you meant you have said
divorce is not an option
right our two countries have to live
together and this I think is the
greatest tension in the US China
relationship China's our most
significant competitor and at the same
time China is our third largest trade
partner 750,000 American jobs at stake
agriculture China's the largest market
for us agriculture 1 of all of our
export products from agriculture are
sent to China that was 40 .9 billion
last year so we can't afford really to
have a real break here well it's compc
jobs would it's complicated some people
are saying well we're so competitive
with China we should end the economic
relationship well the consequence of
that would be 750,000 American families
wouldn't be able to put dinner on the
table and so this makes for an
extraordinarily difficult Balancing Act
in my job you're a willinda brother I've
never thought of myself that way but
high wire right well we have competing
interests here and balancing those
interests is the reality in the US China
relationship we're going to compete we
have to compete responsibly and keep the
peace between our countries but we also
have to
engage more about The Balancing Act and
the biggest economic problem in China
today when we come back
one in every five people in the world is
Chinese China's population is four times
that of the US and the country is vast
3.7 million square miles it overlooks
the Taiwan straight where half the
World's Trade flows every day and is
located about 100 miles away from
Taiwan President XI likes to say that
the East is Rising the West is declining
but economically the US is thriving
compared to China in December Moody's
the credit rating agency cut its outlook
for China to negative and it's facing a
long-term demographic bind a decline in
the birth rate that experts say is
irreversible meaning the country is both
aging and shrinking Ambassador Nicholas
Burns took us on a tour starting in
Beijing the Ambassador and his wife
Libby like to take early morning walks
through a park near their
[Music]
residence this is a 600y old Ming
Dynasty Park called Ron Park it's a
place for a lot of retirees and a lot of
young people and it's tremendously
active it's where the locals come for
their early morning
routines like Tai Chi
yo-yoing and
pingpong
[Laughter]
oops you couldn't tell from these
scenes that China where the co pandemic
began is still emerging from the trauma
of President XI jinping's oppressive
zeroo
policy Burns 68 a career Diplomat who is
serving in both Republican and
Democratic administrations got to China
at the height of the zero covid
lockdowns and quarantines when my wife
Libby and I arrived here in early March
of 2022 we were quarantined in this
house for 21 days for 3 weeks Shanghai a
city of 26 million people was completely
locked down for 63 days what was that
like in the city we had women who needed
to give birth and we had to find a way
to get them to the hospital we had
Americans who wanted to get out but had
to find a way out of their locked
compounds to the airport so zero Co
worked for a while in 20 and 21 they had
very low or relatively lower infection
rates but by 2022 it had really divided
this Society it set off rare widespread
protests then in December of 2022
president XI ended the policy abruptly
the last thing this government is going
to accept here is
volatility volatility is something yorg
woodka a German businessman who's lived
and worked in China for over 30 years
hadn't seen since the tianan square
Uprising in
1989 he represents BASF the world's
largest chemical producer you have said
this is a PTSD country post-traumatic
stress disorder country what what do you
mean
well everybody has been traumatized by
the lockdowns that took place in many
cities across China and the kind of
messaging that came out of the
leadership it's for your own safety and
then the lockdown was lifted actually it
was more a capitulation from the
government the lockdown basically left
and like a we were wrong we're going to
lift it they never said they were wrong
that's not the system to admit that they
did something wrong and then you
basically like a tsunami Co was rolling
across the country after they lifted it
uh December January I would say a
billion people were infected and
certainly lots of people died
independent analysts say that an
estimated 1.4 million people died this
kind of environment really changes your
attitude towards life and in business we
thought we're going to have a comeback
story and we had a good couple of weeks
and then the economy basically has been
fled since you know after covid in the
west in the United States particularly
we did have a huge quick rebound Why
didn't it happen here well I think that
Co also has covered up a couple of
long-term problems that China has been
building up for example in the real
estate sector we reported on the real
estate Sector 10 years ago with
astonishing sites like this of empty
buildings in city after city across the
country this is today similar hollowed
out wastelands of unoccupied and un
finished Apartments known as ghost
cities when I was here 10 years ago I
never expected to see these buildings
still here but was a housing bubble back
then grew and finally
exploded this real estate crisis lies at
the heart of China's economic decline
has anybody counted up the number of
empty units I mean across the whole
country well the whole of German we have
82 million people could move in here
right away 80 80 to 90 million
apartments are empty 80 to 90 million
apartments are empty right I'm finished
over the years Chinese Banks readily
loan money to the developers as the
building boom created millions of jobs
and propelled China's growth but in 2020
the government under President XI
clamped down on the rampant borrowing
causing the major developers to default
on their loans and run out of money look
at that the facade isn't even finished
he says they couldn't even afford to
take down the
cranes in January ever Grand once
China's largest developer was ordered to
liquidate its remaining
assets left in the Lurch are millions of
Chinese citizens who bought these
apartments before they were built the
developers ow the are uh customers that
paid up uh to the magnitude of1 trillion
us so if I did a down payment on one of
these apartments right will I ever see
that money no you will not see the money
it's gone it's finished it's gone it's
finished so I mean it's it's really
dramatic 10 years ago we were told that
this was the way people put money down
for their nest egg right for their
retirement fund is that still the case
the 66% 23 of Family household average
wealth is in in apartments that loss of
wealth has depressed consumer spending
and drag down the economy we wondered if
the people blame president XI for that
or for the covid deaths but it was
impossible for us to gauge public
opinion or if it even matters while no
one from the government would give us an
interview we were able to learn as yorg
woodka who's lived here for 30 years
told us
it's not a good idea to bet against the
Chinese people what are some of the
positive aspects of the economy here
they do have a strong U manufacturing
base still well the big part is really
between the ears of people the brains of
the Chinese entrepreneurs that actually
made this success story happen China is
not really good in basic research but
they're fantastic in development they're
world champion in actually making
products better faster and cheaper are
they better yes they are some areas our
Chinese competitors are breathing down
our neck and basically Drive some of us
out the market for instance China now
makes over 80% of all the solar panels
in the world it dominates the wind
turbine market and last year became the
world's biggest exporter of cars and
more they're the leading trade partner
of twice as many countries in the world
as the United States so they have
leading trade Aid partner with over 60
countries in the world and now with
heavy government subsidies it is fast
becoming a leader in electric vehicles
the car maker byd is vying with Tesla
for the title of best-selling EV maker
in the
world Shanghai based Neo is trying to
break through with high-tech
Innovations in December the company
unveiled a new battery with a driving
range of 6 20 M more than 200 M further
than Tesla's topend model this is this
is our Flagship William Lee the CEO and
founder of Neo says its battery swap
technology allows owners to swap out
their depleted battery for a fully
charged one in under 3 minutes exactly
it's a uh two and a half minutes two and
a half minutes two and a half yes we
already installed
2,200 swap station around
China China is also developing a
humanoid robot
industry look at that after lots of year
it's coming true Alex goo is the founder
and CEO of forier intelligence hi there
last year he launched the
gr1 his first generation
humanoid we can do arm you can swing the
arm
yeah you see oh look at the fingers oh
my
word can you play the piano yeah future
definitely can in the future also in the
future he says the robots could provide
health care for China's rapidly aging
population maybe we can for example we
can remote control such kind of robot to
help my grandpa for example yeah I think
president shei who visited this company
last year has called for the mass
production of humanoids by
2025 in his annual New Year's speech he
talked about the country's economic woes
and for the first time acknowledged the
high unemployment rate still he has laid
out a long-term goal of doubling China's
economy by
2035 and surpassing the West in
technology our companies and Tech
experts are competing on AI and biotech
and Quantum mathematics all those
technological advances will lead to a
new generation of military technology
our two militaries are vying for
military Supremacy who's going to be the
most powerful in the most important
strategic part of the world which is the
Indo
Pacific presidents Biden and she met in
San Francisco in November in hopes of
reestablishing military Communications
between our two countries
which China had cut off I think we're
back to a more settled and stable
relationship between the two countries
but it's been a roller coaster the low
point he says was the Spy balloon
incident last year but there's also been
the buildup of military bases in the
South China Sea the increase of air
sorties near Taiwan and the buzzing of
US military planes do you see a lowering
of the temperature in the South China
see no and that's a problem you don't
and then on Taiwan following speaker
Pelosi's visit we've seen now for 16
months a much higher rate of Chinese
both air activity and Naval activity
that's very intimidating meant to
intimate and that
hasn't they haven't pulled back on that
and I think ultimately they want to
become and overtake the United States as
the dominant country globally and we
don't want that to happen we don't want
to live in a world world where the
Chinese are the dominant country when
the Cold War ended we all thought our
system had won yeah you know their
system failed our system rose up now
he's come back and said no no the
Communist system is the right way I
guess we didn't bury that after all you
know it's it's interesting to compare
the old cold war with this time what
distinguishes this time versus the old
Cold War
Soviet Union had a strong military and
nuclear weapons it had a very weak
economy which in no way competed with
ours China's economy is very strong
we're dealing with an adversary a
competitor in China stronger than the
Soviet Union was in the 1940s 50s 60s 7s
and 80s so if that was a Cold War what
are you calling this it's a competition
of ideas a battle of ideas our idea
America's big idea of a Democratic
Society and human Freedom versus China's
idea that a communist state is stronger
than a democracy we don't believe that
so there's a battle here as to whose
ideas should lead the world and we
believe those are American
ideas the latest salvos in the battle
for Supremacy came last month when China
conducted two days
of large scale war games around Taiwan
and President Biden imposed new stiff
tariffs including a 100% tax on Chinese
electric
vehicles up and get married Leslie stall
un witnessing China change while
reporting for 60 minutes this was
different from the other times I've been
there reporting at 60 Minutes
overtime.com sponsored by ntek ODT some
of the
retail the day Russia invaded one of its
neighbors waged a bloody war and seized
a fifth of that neighbor's territory
fear and shock rippled throughout the
region we're not talking about Russia's
invasion of Ukraine rather the small
country of Georgia that invasion was
more than 15 years ago Vladimir Putin's
Playbook hasn't changed much today
Georgia which shares a 556 mile border
with Russia is still trying to remove
the grip of the Kremlin days after
Russia invaded Ukraine Georgia submitted
an application to become part of the
European Union with hopes of gaining a
western insurance policy to protect it
last October we met with the president
of Georgia Salam zor bash the daughter
of Georgian refugees raised in Paris she
says that Vladimir Putin has launched a
invasion of Georgia in an attempt to
extend Russia's
reach the war in Ukraine is now moving
into its third year how is the war there
impacting life here it is of course a
reminder of everything that this country
has gone through uh and of the fact that
it's always uh an immediate uh danger
and threat it's uh already part of the
the reality that Russia is testing the
ground you think the Russians are
testing the ground right now in Georgia
right now how so here uh their way their
easy way uh is the hybrid
War a hybrid war that has included
online and televised disinformation
campaigns and anti-western propaganda
pumped into
Georgia a favorite tactic of the Kremlin
Georgians have seen it before in 2008
three weeks before Russia launched its
first air strike in Georgia Moscow hit
the country with a series of cyber
attacks the five-day bloody battle that
followed ended with Russia seizing 20%
of Georgia's land president zor bash
says the mostly muted International
reaction to that war laid the groundwork
for Russia's invasion of Ukraine and
Vladimir Putin's plan to bring former
Soviet republics back into the Russian
fold today a fifth of Georgia is
occupied by the Russian military and an
estimated 8,000 Russian troops are
inside the Georgian
border we traveled with Georgian
Security Forces 37 Mi outside the
capital of toi into the Tiny Village of
caletti today it is a rural No Man's
Land oh
my across a rickety Bridge we found an
abandoned stretch of Farmland choked off
by barbed wire warning sign to stay out
oh there she is and a defiant
87-year-old Valia Benes
V the Russians have told me this is our
land and I said no our land is in Russia
This Is Our Land not yours you have no
rights here how long have you been
surrounded by the barbed
wire for 15
years in 2008 her land was seized by
Russian troops the grandmother of four
still refuses to surrender her home
caught up from family she relies on
Outsiders and a stick to deliver food
and the medicine she needs she whispered
to us that the Russians were watching us
from over that Hill are you afraid of
the
Russians yes I'm afraid of
them what if they take me and detain me
nobody can help me I'm alone when it's
only a couple of them I can always
answer them and fight back but when it's
a lot of them there is nothing I can
do Georgia is bordered on the North by
Russia the east by azerbijan and the
South by Armenia and turkey the bridge
between the black and Caspian Sea an
important route for natural gas and oil
high up in the mountains of Georgia we
saw another reason the small country of
nearly 4 million is crucial to the
Kremlin a long line of Tri many of them
carrying European cargo across the
border into Russia United Nations data
shows that since the War Began
everything from Cars to chemicals have
rolled into Russia through Georgia some
in violation of Western sanctions a
Lifeline for Putin's regime there is
traffic coming into Georgia too
thousands of Russian Nationals entering
the country in cars and on foot
extending for miles and arriving in
waves first at the beginning of the
Ukraine war in 2022 and again later that
year when fighting age men fled Russia's
mandated military service but some
Georgians worry Putin loyalist could be
entering the country too laying the
groundwork for Russia's next
move When Vladimir Putin invaded Ukraine
in 2022 he said it was to among other
things protect the Russians living there
president zor bash fears Putin could
launch a similar campaign in Georgia
since the war Georgia has become home to
a 100,000 Russians it's very unnerving
when in your own country you have people
that are talking the language of the
enemy uh and that believe that they're
at home the Russians believe that they
are at home they're behaving and
believing that they are very much at
home uh so there's a fine line and that
line has to be kept so that we do not
have incidents in the future that would
allow uh Russia to use their favored
doctrine of protecting Russian speaking
citizens so why doesn't Georgia just say
no more Russians through our border a
question for the authorities aren't you
the authority no I don't have the
executive powers and
unfortunately the executive power to
control Georgia's border was squarely in
the hands of its prime minister Iraqi
gabish publicly he said that he
supported the country's bid to move away
from neighboring Russia and join the
European Union but his actions and
inactions told a different story since
the Ukraine Invasion prime minister gab
Bashi agreed to resume flights between
tii and Moscow for the first time in
almost 5 years he's also failed to adopt
strong sanctions against Russia critics
of the Prime Minister accuse him of
being in the pocket of a Georgian
oligarch binaa even vely a billionaire
who helped get him elected the
67-year-old oligarch made his fortune in
Russia and served a brief stin as
georg's prime minister his $50 million
home looms over to bisi a reminder of
his wealth and power in 2022 European
lawmakers called for sanctions against
the oligarch for his quote links to the
Kremlin a connection that could
undermine Georgia's EU bid we're going
in with um a government that's
completely corrupt a government that's
Pro Russian clearly anti-western um
clearly does not really care about what
the majority of the population wants and
needs anad and daim madad are members of
the shame movement a group with
thousands of young followers working
towards Georgia's entry into the
European
Union if Russia wins it means loss of
Freedom loss of everything that we
fought for in the past 30 years
basically it's a fight for values it's a
fight for where you want to stand in
this uh big fight for democracy as soon
as West in any form be it the US
partnership be it European Union is not
represented in this country Russia will
fill the void right away they say the
influx of Russians is already changing
the face of Georgia what are they doing
if we look at it they're buying
Apartments they're buying private
property they're opening up businesses
um their actions changed uh Georgian
economy the Russians are buying
Apartments here in every 33 minutes
they're purchasing a piece of land in
every 27 minutes and they're registering
a business in every 26 minutes so I
think we're on the brink of very
dangerous situation here in Georgia
according to public records Russians
have registered more than 20,000
businesses in Georgia over the last 2
years and launched five new Russian only
schools none of which are licensed by
Georgia's Department of Education
Russians have driven rent up nearly
130% prices for everything from food to
cars have gone up 7% over a 100,000
Georgians have left the country because
many of them can't afford to live here
anymore I've heard this described as a
quiet Invasion quiet Invasion yeah
there's a risk of the economic
Divergence there's a risk of military
intervention and there's a risk of
uh Georgia's statehood being
destroyed Emanuel LNF George smeno and
pel bakov don't look like much of a
threat all Russians in their 20s they
fled their country for fear of being
drafted or imprison for speaking out
against Putin they now live in Georgia
and work at this russian-owned comedy
club in
toi I TR said I'm against the war in
Russia uh was beaten and uh after that
go into prison uh three times so three
times you went to jail uh yes yes three
times I believe and I know that Russians
actually against the war you think that
most Russians are against the war yeah
just scared really scared have any of
you had any aggression towards you
because you're Russian actually I have a
big writing on the wall it is the
biggest thing I see from my window just
big Russians go home there is no
subtlety in spray paint anti-russian
graffiti blankets the city along with
support for Ukraine on crumbling walls
the Georgian flag is joined with those
of the European Union the US and NATO
over 80% of the Georgian public backs
entry into the EU as does Georgian
president zor bash but her position has
become increasingly ceremonial as the
country moves towards a parliamentary
government after she went to Europe to
try and pave the way for Georgia Zu bid
prime minister aroi gabashvili accused
her of violating the Constitution banned
her from traveling to Europe and tried
but failed to impeach her president zor
bash has defiantly continued to fly to
Europe to meet with leaders on her own
dime it doesn't seem like the prime
minister is interested in joining the EU
well that's a question that the whole
population is asking whether they really
want it or whe whether it's s service
this is a critical time do you feel like
the West particularly the US has been
responsive enough and supportive enough
of Georgia in this
moment I don't think so uh and I would
take one concrete example uh I've been a
president now for five years uh and I've
not managed to have any form of meeting
at my level which be be the president or
the vice
president uh even through a phone call I
understand that there are more urgent
issues but I think that some more public
recognition is needed recognition of of
the fact that the United States is
supporting our uh candidate status
within the European Union I know that
that is the language that the US has
with our European Partners but that
being repeated by at the highest level
uh would be uh meaningful for the uh
Georgian population the EU has laid out
a list of requirements for Georgia to
become a full member the conditions
include tackling corruption and
lessening the economic and political
influence of domestic oligarchs
membership is not guaranteed what
happens to Georgia if the EU denies the
bid it would be a big victory for
Russia a victory vanes refuses to give
them 87 years old she says she is
holding her ground for herself and for
Georgia that bid may be in further
Jeopardy this past February the Georgian
Parliament appointed a new prime
minister an anti-western member of the
Russian leading Georgian Dream party in
May his government passed a foreign
agents law which threatens to silence
media outlets and NOS inside Georgia and
just this past week his party proposed
legislation that would strip same-sex
couples of their rights both moves the
EU has said could seriously compromise
the country's chance for membership and
pull Georgia deeper into Russia's
orbit I'm Scott Pell we'll be back next
week with another edition of 60 minutes
[Music]
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