An American in China; A Quiet Invasion | 60 Minutes Full Episodes

Summary

The 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

00:00

🇨🇳 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.

05:02

📉 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.

10:03

🌏 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.

15:05

🏢 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.

20:07

🏘️ 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.

25:09

⚔️ 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.

30:12

📰 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.

35:14

🇬🇪 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.

40:14

🇪🇺 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.

Keywords

💡US-China Relationship

The relationship between the United States and China is described as the most important, competitive, and dangerous in the world. It encompasses economic, political, and military dimensions, with significant implications for global stability. The script highlights issues such as trade tensions, intellectual property theft, and geopolitical conflicts, including China's activities in Taiwan and the South China Sea.

💡Economic Capital

Refers to the financial and commercial hubs of China, primarily cities like Beijing and Shanghai. These cities attract significant foreign investment due to their vast consumer markets. However, the script notes a recent decline in foreign investment due to economic uncertainties and restrictive government policies.

💡Intellectual Property Theft

The unauthorized use or theft of intellectual property, which includes patents, copyrights, and trade secrets. The video discusses how this issue has become a major concern for American businesses operating in China, contributing to the strained US-China economic relationship.

💡Espionage Law

China's expanded espionage laws are used to intimidate and control foreign businesses. These laws have been criticized for being vaguely worded, allowing the Chinese government to accuse foreign businesspeople of espionage for standard business practices, such as due diligence.

💡Economic Growth

China's rapid economic growth over the past four decades, lifting millions out of poverty, is now slowing down. The script attributes this slowdown to various factors, including government policies, high debt levels, and structural economic issues. The slowdown poses significant challenges for China's future development.

💡Foreign Investment

The investment of capital from foreign countries into China's economy. The video discusses how foreign investment is crucial for China's economic growth but has recently declined due to increased government crackdowns and economic uncertainties.

💡Zero-COVID Policy

China's strict public health policy aimed at completely eliminating COVID-19 within its borders through lockdowns and quarantines. The script details how this policy caused widespread disruption and trauma, ultimately leading to public protests and a significant economic impact.

💡Real Estate Crisis

A major economic issue in China, characterized by a housing bubble that has led to numerous empty and unfinished apartment buildings, also known as ghost cities. The script explains how this crisis has been exacerbated by government crackdowns on borrowing, leading to defaults by major developers and significant financial losses for many Chinese citizens.

💡Military Tensions

Ongoing conflicts and military activities involving China and other countries, particularly in the South China Sea and Taiwan. The script mentions increased Chinese air and naval activity aimed at intimidating Taiwan, as well as broader strategic competition with the United States.

💡Trade Partners

Countries that engage in significant trade with each other. The script highlights how China is a major trade partner for many countries around the world, including the United States, which has deep economic ties with China despite the competitive and contentious nature of their relationship.

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]