CATASTROPHIC HUMANITARIAN CRISIS IS UNFOLDING IN GAZA. BUT ISRAEL HAS BARRED JOURNALISTS FROM INDEPENDENTLY
ACCESSING THE GAZA STRIP. >> WE HAVE MASS CASUALTIES COMING IN IN WAVES AT A HOSPITAL.
THAT'S HAPPENING AT LEAST THREE OR FOUR TIMES A NIGHT. >> IN ONE NIGHT? >> MM-HMM.
A REGULAR DAY FOR ME WAS SEEING CHILDREN WITH SHRAPNEL INJURIES I HAD NEVER IN MY LIFE HAPPENING BEFORE, DEATH HAPPENING IN A
FULLY TREATABLE SITUATION BECAUSE THE SUPPLIES ARE NOT AVAILABLE. >>> GETTING INTO CHINA IS ALL
BUT IMPOSSIBLE FOR MOST WESTERN JOURNALISTS. >> THIS IS THE FINANCIAL AND ECONOMIC CAPITAL OF CHINA.
>> BUT WHEN THE U.S. AMBASSADOR, NICOLAS 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. >> I'M LESLEY STAHL. >> I'M BILL WHITAKER.
>> I'M ANDERSON COOPER. >> I'M SHARYN ALFONSI. >> I'M JON WERTHEIM. >> I'M CECILIA VEGA.
>> I'M SCOTT PELLEY. THOSE STORIES AND MORE TONIGHT ON "60 MINUTES." >>> WHEN THE TERRORIST GROUP,
HAMAS, UNLEASHED ITS BARBARIC ATTACK INSIDE ISRAEL LAST OCTOBER, THE RESPONSE BY THE ISRAELI GOVERNMENT WAS SWIFT.
ISRAEL LAUNCHED THOUSANDS OF TROOPS, TANKS, AND MORE THAN 45,000 BOMBS INTO GAZA, DECIMATING ENTIRE CITIES.
THE HAMAS-RUN GAZA MINISTRY OF HEALTH SAYS MORE THAN 29,000 PEOPLE HAVE BEEN KILLED, AND NEARLY TWO MILLION DISPLACED.
NUMBERS MANY IN THE ISRAELI PRESS AND THE UNITED NATIONS ARE REPORTING. ISRAEL HAS BARRED JOURNALISTS
FROM INDEPENDENTLY ACCESSING THE GAZA STRIP, DEFYING THE LONG-STANDING PRECEDENT OF ALLOWING JOURNALISTS INTO WAR
ZONES. REPORTING ON IT HAS BEEN CHALLENGING. SO, WE ASK AID WORKERS,
INCLUDING TWO AMERICANS, TO SHARE THEIR VIEW FROM INSIDE GAZA OVER THE LAST 142 DAYS. A WARNING, IT IS DIFFICULT TO
WATCH. >> Reporter: THIS WAS THE SCENE AT NASSER HOSPITAL IN SOUTHERN GAZA IN LATE JANUARY.
[ SOUND OF ARTILLERY ] FOR WEEKS, THE HOSPITAL HAD BEEN SURROUNDED BY FIGHTING. [ SOUND OF ARTILLERY ]
BUT ANOTHER BATTLE PLAYED OUT INSIDE ITS CROWDED CORRIDORS. DOCTORS AND NURSES SHORT ON SUPPLIES AND BEDS KNELT ON THE
FLOOR, AS THEY TRIED TO SAVE BOMBING VICTIMS. DEEPER IN THE HOSPITAL, WE SAW DR. NARITA MED, A CRITICAL CARE
SPECIALIST FROM PENNSYLVANIA. OUR CBS PRODUCER, BASED IN GAZA, SHOT THIS VIDEO. >> HE HAS A SMALL AMOUNT OF FREE
FLUID. >> Reporter: AS DR. AHMED CHECKED ON THE YOUNG VICTIMS OF AN AIR STRIKE SHE TREATED THE
NIGHT BEFORE. THIS 13-YEAR-OLD BOY DID NOT SURVIVE. >> THE NURSES NOTICED HIS EYES,
PUPILS ARE FIXED AND DILATED, WHICH IS A SIGN OF BRAIN DEATH. >> Reporter: THE GAZA MINISTRY OF HEALTH ESTIMATES 12,000
CHILDREN HAVE DIED HERE SINCE THE BAR BEGAN. >> THERE'S NO ROOM FOR THAT. >> Reporter: WE MET DR. AHMED
DAYS AFTER SHE LEFT GAZA, EXHAUSTED AFTER WORKING A TWO-WEEK STRETCH AT NASSER. >> WE HAVE MASS CASUALTIES
COMING IN IN WAVES AT A HOSPITAL. THAT'S HAPPENING AT LEAST THREE OR FOUR TIMES A NIGHT.
>> IN ONE NIGHT? >> MM-HMM. A REGULAR DAY FOR ME WAS SEEING CHILDREN WITH SHRAPNEL INJURIES
I HAVE NEVER IN MY LIFE SEEN, WITH TRAUMATIC BRAIN INJURY, DEATH HAPPENING IN A FULLY TREATABLE SITUATION BECAUSE THE
SUPPLIES ARE NOT AVAILABLE. >> Reporter: DR. AHMED IS THE DOCTOR OF BANGLADESHI IMMIGRANTS.
SHE GREW UP IN PHILADELPHIA AND WORKS AT A HOSPITAL THERE. SHE'S ALSO THE MEDICAL DIRECTOR OF MED GLOBAL, A U.S.-BASED NGO
THAT TRAINS LOCAL HEALTH CARE WORKERS IN DISASTER AND CONFLICT ZONES. 39 YEARS OLD, SHE'S WORKED IN A
HALF DOZEN WAR ZONES, INCLUDING SIX TRIPS TO UKRAINE IN THE LAST TWO YEARS. SHE TOLD US SUPPLY AND MEDICINE
SHORTAGES HAVE DEEPENED THE SUFFERING IN GAZA. >> IT'S BASIC MEDICATIONS. IT'S PAIN MEDICATION.
THERE ARE PEOPLE GETTING LIMBS AMPUTATED WITHOUT ANY ANESTHESIA. THAT'S WHAT'S -- THAT'S WHAT
WE'RE SEEING ON A DAY-TO-DAY BASIS. AND I CAN TELL YOU THAT THINGS THAT WE HAVE PUT INTO THE
PIPELINE TO GET TO GAZA CAN OFTEN TAKE WEEKS TO MONTHS. >> WEEKS TO MONTHS? >> MM-HMM.
>> AND YOU NEED THEM YESTERDAY. >> YEAH. >> HOW DOES WHAT YOU'RE SEEING IN GAZA COMPARE TO WHAT YOU'VE
SEEN IN THESE OTHER WAR ZONES AND CONFLICTS? >> IT IS INCOMPARABLE, I WOULD SAY.
I DON'T THINK I'VE SEEN THIS MANY CHILDREN AFFECTED IN ANY OF THE OTHER WAR ZONES I'VE EVER BEEN SO.
I DON'T THINK I'VE SEEN THIS MANY PEOPLE SQUEEZED IN A SMALL AREA WITHOUT ANY ABILITY TO LEAVE.
I DON'T THINK I'VE BEEN THIS CLOSE TO THE SOUND OF MISSILE STRIKES, WITH THE HOUSE SHAKING OR THE HOSPITAL SHAKING, WHILE
I'M TRYING TO OPERATE IN THE ICU. >> SO, HOW DO YOU FUNCTION AND OPERATE WHEN YOU CAN HEAR
GUNFIRE AND EXPLOSIONS AT YOUR DOORSTEP? >> WE GO INTO, LIKE, MEDICAL MISSION MODE.
SO, BOMBS GOING OFF OR NOT, WE ARE ABSOLUTELY FOCUSED ON WHAT'S IN FRONT OF US. IS IT TERRIFYING?
YES, OF COURSE. DO WE THINK ABOUT IT AFTER THE FACT? ABSOLUTELY.
YOU KNOW, THERE ARE HOSPITALS THAT ARE UNDER SIEGE. THIS HAPPENED IF SHIFA HOSPITAL, JUST TO NAME A FEW.
>> Reporter: THE U.N. REPORTS MORE THAN 300 HEALTH CARE WORKERS HAVE BEEN KILLED SINCE THE WAR BEGAN.
IN LATE JANUARY, DR. AHMED AND FOUR OF HER COLLEAGUES EVACUATED NASSER. TEN DAYS AGO, ISRAELI TROOPS
STORMED THE HOSPITAL, CLAIMING HAMAS WAS HIDING INSIDE. PATIENTS, STAFF, AND THOUSANDS SHELTERED IN THE HOSPITAL
SPILLED ONTO THE STREET. >> THE IDF HAS ACCUSED HAMAS OF HIDING AND OPERATING IN THESE HOSPITALS.
DID YOU SEE THAT AT ALL? >> I CAN REALLY JUST TALK ABOUT WHAT I KNOW. AND WHAT I KNOW IS THAT THE
HEALTH CARE CATASTROPHE IN THESE HOSPITALS, THAT'S WHAT I SAW. >> Reporter: EVEN AS EXPLOSIONS SURROUNDED THE HOSPITAL LAST
WEEK, TEAMS FROM THE WORLD HEALTH ORGANIZATION MADE THEIR WAY IN. >> ONE, TWO, THREE.
>> Reporter: NEGOTIATING THROUGH THE DARK TO EVACUATE 32 CRITICAL PATIENTS, SOME OF THEM CHILDREN. AIDE WORKERS SAY THERE ARE STILL
PATIENTS AND STAFF INSIDE THE HOSPITAL WITH NO RUNNING WATER OR ELECTRICITY. >> THE INTERNATIONAL
HUMANITARIAN LAW IS CLEAR. HEALTH CARE WORKERS, HUMANITARIANS, AMBULANCES, AND HOSPITALS SHOULD BE RESPECTED
AND PROTECTED IN ALL SITUATIONS. BUT UNFORTUNATELY, THIS IS NOT THE CASE IN GAZA. >> NAVAL FARRIC IS THE
SPOKESPERSON FOR THE PALESTINIAN RED CRESCENT. IT'S PART OF THE INTERNATIONAL RED CROSS.
WE MET HER IN THIS CALL CENTER IN RAMALLAH. HERE, OPERATORS DISPATCH EMERGENCY WORKERS IN GAZA 50
MILES AWAY. >> HELLO? >> THIS IS A RECORDING OF ONE OF THE CALLS THE RED CRESCENT
RESPONDED TO THE WEEK WE WERE THERE. ON JANUARY 29, THE ISRAELI MILITARY ORDERED PARTS OF GAZA
CITY TO EVACUATE. SO, 15-YEAR-OLD LEANN HAMADA AND HER FAMILY PILED INTO THEIR CAR TO TRY AND GET TO SAFETY.
[ SPEAKING IN A GLOBAL LANGUAGE ] THEY'RE SHOOTING AT US, SHE TELLS THE OPERATOR.
THE TANK IS NEXT TO ME. ARE YOU HIDING? YES, IN THE CAR. WE'RE NEXT TO THE TANK.
[ SOUND OF GUNFIRE ] [ SCREAMING ] THEN -- [ SOUND OF GUNFIRE ]
THE LINE GOES DEAD. >> HELLO? >> WHEN THE OPERATOR CALLED BACK, A CHILD ANSWERS,
6-YEAR-OLD -- THE GIRL'S COUSIN. [ SPEAKING IN A GLOBAL LANGUAGE ] THE TANK IS NEXT TO ME, SHE
SAYS. I AM SO SCARED. PLEASE COME. PLEASE, CALL SOMEONE TO COME AND
TAKE ME. THE RED CRESCENT SAYS THIS IS THE AMBULANCE THEY SENT. IT WAS DISCOVERED ALONG WITH THE
BODIES OF TWO MEDICS 12 DAYS AFTER THEY WERE DISPATCHED, WHEN ISRAELI DEFENSE FORCES LEFT THE AREA.
HEN RAHJAB WAS ALSO KILLED. THE 6-YEAR-OLD'S BODY WAS FOUND INSIDE THIS CAR ALONGSIDE FIVE MEMBERS OF HER FAMILY.
THE IDF TOLD US THAT THE INCIDENT IS STILL UNDER REVIEW BUT HAS ACCUSED HAMAS IN THE PAST OF USING AMBULANCES TO
TRANSPORT ITS FIGHTERS. >> IT'S NOT THE ONLY STORY. IT'S ABSOLUTELY DOZENS OF CALLS WE'RE GETTING SINCE THE
BEGINNING OF WAR IN GAZA, WHERE WE FEEL HELPLESS BECAUSE WE ARE COMPLETELY DENIED ACCESS TO MANY AREAS IN GAZA TO ONLY PROVIDE
OUR EMERGENCY MEDICAL SERVICES. >> SO, WHAT YOU'RE DESCRIBING IS THESE PEOPLE CAN'T LEAVE. OITS
IT'S NOT SAFE FOR THEM TO LEAVE. AND YOU CAN'T GET TO THEM. >> EXACTLY. >> Reporter: THIS IS WHAT THEY
WERE TRYING TO ESCAPE. WE OBTAINED THIS VIDEO FROM A U.N. WORKER, WHO WAS WITH ONE OF THE FIRST TEAMS ALLOWED INTO
NORTHERN GAZA. ACROSS THIS APOCALYPTIC LANDSCAPE, IMAGES SHOW TWO-THIRDS OF GAZA HAS BEEN
FLATTENED. SATELLITE IMAGES REVEAL HOW DENSITY POPULATED THE 25-MILE STRIP WAS BEFORE THE WAR.
TODAY, MOST OF THE NEARLY TWO MILLION RESIDENTS DISPLACED FROM THEIR HOMES HAVE EVACUATED TO THE SOUTH.
HERE, 40 OR MORE PEOPLE WILL PACK INTO A ROOM AT A MAKESHIFT SHELTER. HUNDREDS SHARE ONE BATHROOM.
THOSE WHO CAN'T FIND SPACE IN THE SHELTER SETTLE IN THE SPRAWLING SAND PITS OF GAZA'S TENT CITY ON THE BORDER WITH
EGYPT. FOR GAZANS, THERE IS NO WAY OUT. WE'RE AT THE ARES BORDER CROSSING.
IF YOU WERE TRAVELING TO GAZA, YOU WOULD COME THROUGH THIS TERMINAL. ON OCTOBER 7th, HAMAS STORMED
THE TERMINAL. YOU CAN SEE THE DAMAGE AROUND US. THE TERMINAL HAS BEEN CLOSED
SINCE THEN. NOW THERE IS ONLY ONE BORDER CROSSING FROM ISRAEL INTO GAZA, AND THAT'S FOR HUMANITARIAN AID.
>> Reporter: THAT CROSSING IS KNOWN AS KEREM SHALOM. THE IDF WOULD NOT ALLOW US TO FILM THERE.
BEFORE THE WAR, MORE THAN 500 TRUCKS CARRYING GOODS CAME THROUGH THE CROSSING EVERY DAY. TODAY ON AVERAGE, ABOUT 85
TRUCKS OF AID GET THROUGH. >> WHAT ARE THE TOP THREE THINGS THAT YOU NEED? >> Reporter: SCOTT ANDERSON IS
TRYING TO GET ANY AID THAT DOES COME IN DISTRIBUTED. ANDERSON IS AN ARMY VET FROM IOWA WHO DID TWO TOURS IN
AFGHANISTAN. "60 MINUTES" FIRST MET HIM IN GAZA IN 2014, WHEN HE SERVED AS THE DEPUTY DIRECTOR OF
OPERATIONS FOR THE U.N. WORKS AND RELIEF AGENCY, KNOWN AS UNRWA. AFTER THE WAR BEGAN IN OCTOBER,
ANDERSON, WHO'D RETIRED, RETURNED TO THE JOB. >> AS YOU KNOW, AS AMERICAN JOURNALISTS, WE CAN'T GET IN
THERE. WHAT DO YOU SEE? WHAT IS IT LIKE EVERY DAY? >> WHAT YOU MOSTLY SEE FROM
PEOPLE EVERY DAY IS TRYING TO FIND FOOD, TRYING TO STAY WARM, AND TRYING TO FIND SOMEWHERE TO USE THE BATHROOM.
THAT'S WHAT PEOPLE'S LIVES CONSIST OF. IT'S VERY MUCH A PRESSURE COOKER ENVIRONMENT.
YOU CAN FEEL IN THE AIR, IT'S TENSE. >> Reporter: THERE IS NO COMMERCIAL FOOD AVAILABLE IN
GAZA, AND THE U.N. SAYS 70% OF PEOPLE DON'T HAVE ACCESS TO CLEAN WATER. SO, NEARLY 2 MILLION GAZANS ARE
DEPEND ON AID FOR ALL THEIR FOOD AND WATER. LAST WEEK, UNICEF REPORTED THAT ONE IN SIX CHILDREN UNDER THE
AGE OF TWO IN NORTHERN GAZA IS SEVERELY MALNOURISHED. >> EVERYBODY'S RELIANT ON THE INTERNATIONAL COMMUNITY, THE
INTERNATIONAL HUMANITARIAN COMMUNITY, TO PROVIDE THEIR BASIC NECESSITIES. IN AN IDEAL WORLD, THERE WOULD
BE 600 TRUCKS A DAY COMING INTO GAZA. >> YOU'RE NOWHERE CLOSE TO THAT NUMBER.
>> WE'RE NOWHERE CLOSE TO THAT NUMBER. >> WHAT'S THE PROBLEM, THE HOLDUP AND INSPECTION?
>> YOU HAVE TWO GOVERNMENTS AND THE U.N., A LOT OF PEOPLE INVOLVED. THERE ARE SECURITY INSPECTIONS
OF THE GOODS, WHICH I UNDERSTAND. >> THE ISRAELIS SAY THE PROBLEM IS ON THE U.N. SIDE.
>> I WOULD SAY THAT'S ENTIRELY NOT TRUE. IT'S NOT JUST THE INN. EVERY DAY THERE'S A COUPLE OF
HOURS WHERE NOTHING MOVES. THAT'S NOT US. THERE'S JUST NOTHING TO GET. >> FOR 70 YEARS, UNRWA HAS BEEN
THE LARGEST AID ORGANIZATION IN GAZA, PROVIDING FOOD, EDUCATION, AND MEDICAL CARE. BUT TO ITS CRITICS, INCLUDING
SOME ISRAELIS, THE AGENCY IS CORRUPT. LAST MONTH, ISRAEL ACCUSED 12 OF UNRWA'S 13,000 EMPLOYEES OF
HELPING TO PLAN AND CARRY OUT THE OCTOBER 7th ATTACKS. THE U.N. FIRED THOSE EMPLOYEES. BUT 16 COUNTRIES, INCLUDING THE
U.S. HAVE STOPPED FUNDING THE ORGANIZATION, WHILE INVESTIGATIONS ARE ONGOING. >> WE'RE SHOCKED THAT SOMEBODY
ASSOCIATED WITH THE U.N. COULD DO THAT. BUT UNFORTUNATELY THROUGHOUT HISTORY, MANY INDIVIDUALS HAVE
BETRAYED ORGANIZATIONS THAT THEY WORKED FOR, BETRAYED THE VALUES. WE DO UPHOLD U.N. VALUES, HUMANITARIAN PRINCIPLES.
AND WE ARE RESPONDING TO THE BEST OF OUR ABILITY IN GAZA RIGHT NOW. >> IF UNRWA COLLAPSES, WHO WOULD
DO THE WORK -- >> NOBODY. >> -- THAT YOU'RE DOING? >> THERE'S NOBODY THAT CAN DO
THE WORK THAT WE'RE DOING. UNRWA IS THE BACKBONE OF THE OPERATION. AND WITHOUT US, THE OPERATION
WILL COLLAPSE. >> ON THURSDAY, ISRAELI PRIME MINISTER BENJAMIN NETANYAHU SAID HE WANTS TO COMPLETELY SHUT DOWN
UNRWA. FOR THE FIRST TIME, NETANYAHU OUTLINED HIS PLAN FOR GAZA AFTER THE WAR, WHICH INCLUDED ALLOWING
THE ISRAELI MILITARY TO OPERATE IN GAZA INDEFINITELY. THE IDF HAS BEGUN AN INTERNAL REVIEW OF ITS SHORTCOMINGS
BEFORE AND DURING THE OCTOBER 7th ATTACKS. AMID ONGOING NEGOTIATIONS, A MEMBER OF ISRAEL'S WAR CABINET
ANNOUNCED THAT IF THE 134 HOSTAGES ARE NOT HOME IN TWO WEEKS, ISRAEL WILL LAUNCH A GROUND OFFENSIVE IN RAFAH, WHERE
MORE THAN A MILLION AND A HALF PEOPLE ARE SHELTERING. THE U.S. URGED ISRAEL TO REFRAIN, WARNING IT COULD WORSEN
AN ALREADY CATASTROPHIC SITUATION.
>>> 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 U.S. COMPANIES HAVE PRESSED A PAUSE BUTTON.
ON TOP OF THAT, THE U.S./CHINA RELATIONSHIP HAS BECOME CONTENTIOUS, DUE PARTLY TO BEIJING'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 THAT STORY IS ALL BUT IMPOSSIBLE FOR
MOST WESTERN JOURNALISTS. BUT WHEN THE U.S. AMBASSADOR, NICOLAS 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 THAN 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 ASKED 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 JAPANESE BUSINESSES HERE.
BUT ON THE OTHER HAND, THEY'VE RATED SIX OR SEVEN AMERICAN BUSINESSES SINCE LAST MARCH. >> RAIDED?
>> RAIDED. THEY'VE GONE INTO AMERICAN COMPANIES AND SHUT THEM DOWN AND MADE ACCUSATIONS WE BELIEVE ARE
VERY MUCH UNWARRANTED. >> THE AMERICAN COMPANIES INCLUDE BANE & COMPANY AND THE MINCE GROUP, A COMPANY THAT DOES
DUE DILIGENCE FOR OTHER COMPANIES WHO 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, CAP VISION, WAS
RAIDED. LESS THE MESSAGE WASN'T LOUD AND CLEAR, A REPORT ABOUT IT WAS PUT ON STATE RUN 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 -- >> YES.
THEY'VE PASSED AN AMENDMENT TO THEIR COUNTERESPIONAGE 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. SO, THAT, I THINK, IS AT THE
HEART OF THE PROBLEM. AND 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 U.S. COMPANIES BEGAN FLOCKING TO CHINA IN THE EARLY 1980s AFTER THE COUNTRY OPENED TO THE WEST UNDER
THEN-LEADER PING. AND NOW U.S. BANKS OPERATE HERE. WALMART HAS MORE THAN 300 STORES ACROSS THE COUNTRY.
SHOPPERS HERE IN SHANGHAI CAN BUY LEVI'S, BROWSE IN AN APPLE STORE, AND GET A CARAMEL FRAPPUCCINO.
>> STARBUCKS HAS 6,000 STORES IN CHINA, 1,000 STORES IN SHANGHAI, AND THEY WANT TO KEEP BUILDING. COFFEE -- THIS WAS A TEA CULTURE
FOR THOUSANDS OF YEARS. IT'S BECOMING -- AT LEAST FOR THE YOUNG CHINESE -- A COFFEE CULTURE.
>> AND THEY LOVE STARBUCKS? >> THEY LOVE STARBUCKS. I'LL BUY YOU A CAP CHEE NSNOW. >> I'LL TAKE ONE.
>> BOEING IS HERE. SO IS PFIZER, CHEVRON. MANY ARE WORRYING ABOUT THE BUSINESS CLIMATE UNDER PRESIDENT
XI JINPING. >> IF YOU TRACK CHINA FROM THE DEATH OF MAO 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 XI.
>> 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 RATES
IN RECORDED ECONOMIC HISTORY. 8, 9, 10, 11% BRGROWTH RATES. THEY'VE LIFTED 800 MILLION PEOPLE OUT OF POVERTY.
WHAT'S HAPPENING IS THAT GROWTH RATE IS SLOWING DOWN. MOST ECONOMISTS PROJECTING THEY'LL BE AT 2, 3, 4% GROWTH,
MAYBE LOWER. >> CAN THEY 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. >> 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 DOESN'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? >> Reporter: 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? >> THEY DON'T WANT TO LEAVE. >> THE MARKETS ARE IRRESISTIBLE
TO AMERICAN BUSINESS PEOPLE. IT'S GIGANTIC. >> 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 HEADED.
>> YET BECAUSE OF THE 1.4 BILLION POTENTIAL CONSUMERS, SOME COMPANIES, LIKE DISNEY, ARE INCREASING
INCREASING THEIR INVESTMENT. IT RECENTLY EXPANDED ITS SHANGHAI DISNEYLAND THAT THEY TOLD US IS THRIVING.
APTAR IS ANOTHER AMERICAN FIRM BUCKING THE TREND OF CAPITAL FLIGHT. PRESIDENT OF APTAR ASIA, A
CHINESE BORN U.S. CITIZEN, SHOWED US AROUND ONE OF THEIR FIVE MANUFACTURING SITES IN CHINA.
>> WE ARE MANUFACTURING FOR SOME OF THE LARGEST U.S. BRANDS, U.S. CONSUMER BRANDS. >> THIS FACTORY MAKES THE
PACKAGING AND DISPENSING DEVICES FOR FOOD, PHARMACEUTICAL, AND BEAUTY PRODUCTS SOLD IN ASIA. >> ALL OUR CUSTOMERS, LIKE PNG,
THEY'RE ALL HERE DOING BUSINESS. >> APTAR N CHINA FOR NEARLY 30 YEARS, RECENTLY INVESTED $60 MILLION IN A NEW FACTORY.
SHE 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, BECAUSE WE ARE HERE FOR THE LONG TERM AND WE BELIEVE IN THE CONSUMPTION POWER OF THE
RISING MIDDLE CLASS, IT'S 1.4 BILLION PEOPLE HERE. AND IMAGINE, FOR EXAMPLE, HEALTH CARE AND SIMILAR, COSMETIC AND
BEAUTY AND BEVERAGE, ALL THOSE SECTORS, PACKAGED FOODS. THESE ARE REALLY THE BIGGEST MARKETS.
SO, WE ARE VERY CONFIDENT ABOUT THE LONG TERM. >> WHAT DOES IT SAY ABOUT THE CONFIDENCE REALLY IN THE
U.S./CHINA RELATIONSHIP? IT SEEMS TO SAY YOU BELIEVE 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. >> Reporter: ACTUALLY, BURNS SAYS HE'S WARY OF THE FUTURE, AS THE FUNDAMENTAL RIVALRY AND
MISTRUST BETWEEN THE U.S. AND CHINA IS SHAKING THE CONFIDENCE OF THE BUSINESS WORLD AND HAS PUSHED OUR RELATIONSHIP TO ITS
LOWEST POINT IN HALF A CENTURY. 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, HAS THE GREATEST TENSION IN THE U.S./CHINA RELATIONSHIP. CHINA IS OUR MOST SIGNIFICANT
COMPETITOR. AND AT THE SAME TIME, CHINA IS OUR THIRD LARGEST TRADE PARTNER, 750,000 AMERICAN JOBS AT STAKE,
AGRICULTURE. CHINA IS THE LARGEST MARKET FOR U.S. AGRICULTURE. ONE-FIFTH 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 COMPLICATED. >> ALL THOSE 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. SO, THIS MAKES FOR AN EXTRAORDINARILY DIFFICULT BALANCING ACT IN MY JOB.
>> YOU'RE A -- BROTHER. >> I 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 U.S./CHINA
RELATIONSHIP. WE'RE GOING TO COMPETE. WE HAVE TO COMPETE RESPONSIBLY AND KEEP THE PEACE BETWEEN OUR
COUNTRIES BUCHLT 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 TOFIVE PEOPLE THE WORLD IS CHINESE. CHINA'S POPULATION IS FOUR TIMES THAT OF THE U.S., AND THE
COUNTRY IS VAST, 3.7 MILLION SQUARE MILES. IT OVERLOOKS THE TAIWAN STRAIT, 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 U.S. 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 BIRTHRATE THAT EXPERTS SAY IS IRREVERSIBLE, MEANING THE COUNTRY IS BOTH AGING AND
SHRINKING. AMBASSADOR NICOLAS BURNS TOOK US ON A TOUR STARTING IN BEIJING. THE AM BBASSADOR AND HIS WIFE,
LIBBY, LIKE TO TAKE EARLY MORNING WALKS THROUGH A PARK NEAR THEIR RESIDENCE. >> THIS IS A 600-YEAR-OLD MING
DYNASTY 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 PING PONG. [ SPEAKING IN A GLOBAL LANGUAGE ] YOU COULDN'T TELL FROM THESE
SCENES THAT CHINA, WHERE THE COVID PANDEMIC BEGAN, IS STILL EMERGING FROM THE OPPRESSIVE ZERO COVID POLICY.
BURNS, 68, A CAREER DIPLOMAT WHO HAS SERVED 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 THREE 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 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 COVID WORKED THE FOR A
WHILE. IN '20 AND '21 THEY HAD RELATIVELY LOW INFECTION RATES. BUT BY 2022, IT HAD REALLY
DIVIDED THE SOCIETY. >> Reporter: 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. >> Reporter: VOLATILITY IS SOMETHING THIS GERMAN BUSINESSMAN, WHO'S LIVED AND
WORKED IN CHINA FOR OVER 30 YEARS, HADN'T SEEN SINCE THE TIANANMEN SQUARE UPRISING IN 1199
1989. HE REPRESENTS BASF, THE WORLD'S LARGEST CHEMICAL PRODUCER. >> YOU HAD SAID THIS IS A POST
TRAUMATIC STRESS DISORDER COUNTRY. WHAT DO YOU MEAN? >> EVERYBODY HAS BEEN
TRAUMATIZED BY THE LOCKDOWNS THAT TOOK PLACE IN MANY CITIES IN CHINA AND THE KIND OF MESSAGING THAT CAME OUT OF THE
LEADERSHIP, IT'S FOR YOUR OWN SAFETY. THEN THE LOCKDOWN WAS LIFTED -- IT WAS MORE A CAPITULATION FROM
THE GOVERNMENT. THE LOCKDOWN BASICALLY LEFT -- >> WE WERE WRONG. >> THEY NEVER SAID THEY WERE
WRONG. THEY NEVER ADMIT THEY DID SOMETHING WRONG. AND BASICALLY LIKE A TSUNAMI WAS
ROLLING ACROSS THE COUNTRY. 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
CHANGES YOUR ATTITUDE TOWARD LIFE N. BUSINESS WE THOUGHT WE WERE GOING TO HAVE A COMEBACK STORY.
WE HAD A GOOD COUPLE OF WEEKS, AND THEN THE ECONOMY HAS BASICALLY BEEN FLAT SINCE. >> 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 COVID 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 TEN 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 UNFINISHED APARTMENTS, KNOWN AS GHOST CITIES. WHEN I WAS HERE TEN YEARS AGO, I
NEVER EXPECTED TO SEE THESE BUILDINGS STILL HERE. WHAT 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 ACROSS THE COUNTRY? >> ACROSS THE WHOLE OF GERMANY, WE HAVE 82 MILLION COULD MOVE IN
RIGHT AWAY. >> 80 TO 90 MILLION APARTMENTS ARE EMPTY? >> UNFINISHED.
>> OTHER THE YEARS, CHINESE BANKS READILY LOANED MONEY TO THE DEVELOPERS. 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, EVERGRANDE, 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 OWE THEIR CUSTOMERS TO MAGNITUDE OF 1 TRILLION U.S. DOLLARS.
>> IF I DID A DOWN PAYMENT ON ONE OF THESE APARTMENTS, WILL I EVER SEE THAT MONEY? >> NO, YOU WILL NOT SEE THAT
MONEY. >> IT'S GONE, IT'S VANISHED. >> IT'S GONE. IT'S REALLY DRAMATIC.
>> TEN 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? >> 66%, TWO-THIRDS OF A FAMILY HOUSEHOLD AVERAGE WEALTH IS IN
APARTMENTS. >> Reporter: THAT LOSS OF WEALTH HAS DEPRESSED CONSUMER SPENDING AND DRAGGED DOWN THE ECONOMY.
WE WONDERED IF PEOPLE BLAMED PRESIDENT XI FOR THAT OR FOR THE COVID DEATHS. BUT IT WAS IMPOSSIBLE FOR US TO
GUGE PUBLIC OPINION OR IF IT EVEN MATTERS. WHILE NO ONE FROM THE GOVERNMENT WOULD GIVE US AN INTERVIEW, WE
WERE ABLE TO LEARN, AS THIS WOMAN 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 MANUFACTURING BASE STILL.
>> THE BIG PART IS BETWEEN THE EARS OF THE PEOPLE. THE BRAIN. CHINA IS FANTASTIC IN
DEVELOPMENT, WORLD CHAMPION AT MAKING PRODUCTS BETTER, FASTER, AND CHEAPER. >> ARE THEY BETTER?
>> YES, THEY ARE IN SOME AREAS. CHINESE COMPETITORS ARE BREATHING DOWN OUR NECK AND DRIVE US OUT OF THE MARKET ZBLMT
FOR INSTANCE, CHINA NOW MAKES OVER 80% OF ALL THE SOLAR PANELS IN THE WORLD, DOMINATES THE WIND TURBINE MARKET, IS POISED TO
OVERTAKE JAPAN AS 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 --
>> THEY'RE THE LEADING TRADE PARTNER -- >> WITH OVER 60 COUNTRIES IN THE WORLD.
>> Reporter: AND NOW WITH HEAVY GOVERNMENT SUBSIDIES, IT IS FAST BECOMING THE LEADER IN ELECTRIC VEHICLES.
LAST QUARTER, THE CARMAKER, BYD, SURPASSED TESLA AS THE 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 620 MILES, MORE THAN 200 MILES FURTHER THAN TESLA'S TOP-END MODEL.
>> THIS IS OUR FLAGSHIP. >> WILLIAM LEE, THE CEO AND FOUNDER OF NIO SAYS ITS BATTERY SWAP TECHNOLOGY ALLOWS OWNERS TO
SWAP OUT THEIR DEPLETED BATTERY FOR A FULLY CHARGE ONE IN UNDER THREE MINUTES. >> TWO AND A HALF MINUTES.
>> TWO AND A HALF MINUTES? >> YES. READY INSTALLED. 200 SERVICE STATIONS.
>> Reporter: CHINA IS ALSO DEVELOPING A HUMANOID ROBOT INDUSTRY. >> LOOK AT THAT.
>> IT'S COMING TRUE. >> ALEX GU IS THE FOUNDER AND CEO OF -- INTELLIGENCE. LAST YEAR, HE LAUNCHED THE GR-1,
HIS FIRST GENERATION HUMANOID. >> WE CAN DO -- HE CAN SWING THE ARM. YEAH, YOU SEE.
>> OH, LOOK AT THE FINGER. OH, MY WORD. CAN HE PLAY THE PIANO? >> YEAH, FUTURE, DEFINITELY CAN.
>> ALSO IN THE FUTURE, HE SAYS, THE ROBOTS COULD PROVIDE HEALTH CARE FOR CHINA'S RAPIDLY AGING POPULATION.
>> MAYBE WE CAN, FOR EXAMPLE, REMOTE CONTROL SUCH KIND OF ROBOTS TO HELP MY GRANDPA, FOR EXAMPLE.
YEAH, I THINK. >> PRESIDENT XI, WHO VISITED THIS COMPANY LAST YEAR, HAS CALLED FOR THE MASS PRODUCTION
OF HUMANOIDS BY 2025. IN HIS ANNUAL NEW YEAR 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 A.I. 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 AND THE MOST IMPORTANT STRATEGIC PART OF THE WORLD, WHICH IS THE END PACIFIC?
>> PRESIDENTS BIDEN AND XI MET IN SAN FRANCISCO IN NOVEMBER IN HOPES OF RE-ESTABLISHING 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 -- NEAR TAIWAN, AND THE BUZZES OF U.S. MILITARY PLANES. >> DO YOU SEE A LOWERING OF THE TEMPERATURE IN THE SOUTH CHINA
SEA? >> NO. AND THAT'S A PROBLEM. >> YOU DON'T?
>> AND IN 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 INTIMIDATE. >> AND THAT HASN'T -- THEY
HAVEN'T PULLED BACK ON THAT? >> 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 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 INTERESTING. TO COMPARE THE OLD COLD WAR WITH
THIS TIME. WHAT DISTINGUISHES THIS TIME VERSUS THE OLD COLD WAR -- 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, '70s, 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. >>> SO OFTEN GET MARRIED -- >> LESLEY STAHL ON WITNESSING CHINA CHANGE WHILE REPORTING FOR
"60 MINUTES." >> THIS WAS DIFFERENT FROM THE OTHER TIMES I'VE BEEN THERE >>> THE LAST MINUTE OF "60
MINUTES" IS SPONSORED BY UNITED HEALTH CARE, THERE FOR WHAT MATTERS. >>> NOW, AN UPDATE ON OUR STORY
THIS MONTH ON THE SOUTHERN BORDER CALLED "A WHOLE IN THE SYSTEM." ABOUT AN HOUR EAST OF SAN DIEGO,
WE FOUND MIGRANTS ENTERING THE UNITED STATES ILLEGALLY. WHAT WAS REMARKABLE WAS WHERE MANY WERE COMING FROM, THROUGH A
GAP BETWEEN THE 30-FOOT STEEL BORDER FENCE AND ROCKS. WE WERE SURPRISED TO SEE THE NUMBER OF PEOPLE COMING THROUGH
FROM CHINA, NEARLY 7,000 MILES AWAY. >> CAREFUL. WATCH.
>> OUR CAMERAS, AND AT ONE POINT THIS ARMED BORDER PATROL AGENT STANDING 25 FEET AWAY, DID NOT DETER THEM.
BUT NOW "60 MINUTES" CAN REPORT THE MEXICAN GOVERNMENT HAS PLACED NEW OUTPOSTS NEAR THAT GAP, BLOCKING THE CHINESE AND
OTHER MIGRANTS.