Taiwan braces for potential INVASION from China: ‘REALLY SERIOUS’

JACKIE: WELCOME BACK. AS MARITIME TRAFFIC REMAINS ON. HIGH ALERT IN THE STRAIT OF. HORMUZ, ANOTHER OF THE WORLD'S. VITAL WATERWAYS IS FACING. INCREASED TENSION, THE SOUTH. CHINA SEA. ON FRIDAY CHINA SLAMMED TAIWAN'S. ANNUAL MILITARY EXERCISES AS A, QUOTE, WASTEFUL CHARADE CLAIMING. TAIPEI IS STOKING PANIC. TAIWAN SPENT TEN DAYS CARRYING. OUT ITS LARGEST MILITARY DRILLS. EVER SIMULATING WHAT A POSSIBLE.

ATTACK FROM CHINA WOULD LOOK. LIKE. JOINING ME NOW WITH ANALYSIS IS. FORMER DEPUTY NATIONAL SECURITY. ADVISER, VICTORIA COATES. THANK YOU FOR BEING HERE THIS. MORNING, AND THIS IS ALL COMING. IN THE BACKDROP OF PRESIDENT XI. COMING TO MEET WITH PRESIDENT. TRUMP SEPTEMBER 24TH. I IMAGINE THIS WILL BE ON THE. LIST OF THINGS TO TALK ABOUT AS. WELL, AND I'M WONDERING IF CHINA. SEES THIS WINDOW RIGHT NOW WHERE. THE IRAN CONFLICT CONTINUES AS. MAYBE A POTENTIAL POCKET OF. WEAKNESS TO COCOME AT PRESIDENT. TRUMP?

I MEAN, TAIWAN IS OBVIOUSLY. EXERCISING THESE DRILLS FOR SOME. REASON. >> WELL, GOOD MORNING, JACKIE, GOOD TO BE WITH YOU. AND, YES, I THINK THE SUMMIT ON. SEPTEMBER 24TH IS GOING TO BE A. VERY PACKED AGENDA. LOTS TO DISCUSS WITH CHAIRMAN XI. AND PRESIDENT TRUMP. BUT I ACTUALLY THINK PRESIDENT. TRUMP IS COMING IN IN A POSITION. OF STRENGTH BECAUSE AS XI LOOKS. AT THE THINGS THAT HE'S. ACCOMPLISHED IN THE LAST SIX. MONTHS, BOTH THE OPERATION EPIC. FURY AND THE OPERATION AGAINST. NICOLAS MADURO IN VENEZUELA,

CHINA DOESN'T HAVE THAT KIND OF. FORCE PROJECTION CAPABILITY YET. SO I THINK THAT WE ARE IN A. STRONG POSITION, BUT THIS IS WHY. IT'S IS IMPORTANT THE SENATE. ACTS AND PASSES THE NDAA, FUNDS. OUR MILITARY, AGREES TO THE. PRESIDENT'S HISTORIC $1.5. TRILLION BUDGET REQUEST FOR OUR. MILITARY. WE JUST CAN'T PLAY GAMES WITH. THIS ANYMORE BECAUSE IT IS. REALLY SERIOUS. JACKIE: YEAH. YOU'RE BRINGING UP A REALLY. IMPORTANT POINT. ANOTHER THING I THINK THEY'LL. TALK ABOUT IS ARTIFICIAL. INTELLIGENCE. OBVIOUSLY, WE ARE MANY A HUGE.

RACE WITH CHINA -- IN A HUGE. RACE WITH CHINA, AND PRESIDENT. TRUMP HAS BEEN A PROPONENT OF. A.I. HERE IN THE UNITED STATES. HE WANTS IT TO MOVE FORWARD, AND. HE WANTS US TO WIN. BUT THAT DOES NOT MEAN THAT THE. CHINESE ARE SITTING BACK IN ANY. WAY. THEY'RE TRYING TO INNOVATE AS. QUICKLY AS POSSIBLE. WE'RE DEALING WITH A LITTLE. PUSH-PULL HERE ON REGULATION. SHOULD WE BE REGULATING OUR OWN. INDUSTRY WHEN OTHER NATIONS ARE. NOT? WE'RE LOOKING AT SOME OF THE. RISKS AND TRYING TO BALANCE ALL. THAT. BUT AT THE SAME TIME, OUR. COMPETITION DOESN'T HAVE THOSE. KIND OF GUARDRAILS.

>> NO. AND THIS IS GOING TO BE, I. THINK, REALLY THE DEFINING ISSUE. OF THE SECOND HALF OF PRESIDENT. TRUMP'S SECOND TERM. YOU KNOW, HOW ARE WE GOING TO. MANAGE A.I. BECAUSE THERE'S GOING TO BE A. CHINESE PLATFORM, THERE'S GOING. TO BE AN AMERICAN PLATFORM. WE NEED TO ESTABLISH THE GOLD. STANDARD IN TERMS OF BOTH. CAPABILITY AND SAFETY. BECAUSE CHINA WON'T. THEY'RE JUST GOING TO TRY TO. EXPLOIT IT. AND WE ALSO NEED TO MAKE SURE WE. ARE FOSTERING OUR INNOVATION. BASE. WE ARE MUCH, MUCH, MUCH MORE. INNOVATOR THAN THEY ARE.

THAT'S WHY THEY ALL WANT TO COME. TO UNIVERSITY HERE, BECAUSE. WE'RE THE ONES THAT ARE. INVENTING THINGS. THIS IS OUR CRITICAL EDGE. WE CALL IT THE CALL TATE THIVE. TECH -- QUALITATATIVE. TECHNOLOGICAL EDGE. AND THAT'S WHAT WE CAN OFFER. PARTNERS AND ALLIES. IT'S ONE OF THE REASONS, I. THINK, YOU'RE SEEING SO MANY. CUPS, EVEN FORMER ENEMIES LIKE. VIETNAM, START TO PULL CLOSER TO. THE UNITED STATES BECAUSE THEY. KNOW WE'RE GOING TO BE THE. PARTNER OF CHOICE. BUT WE HAVE TO MAKE SURE WE'RE. KEEPING OUR STRERENGTH UP AND.

INVESTIGATION WHERE WE NEED TO. JACKIE: YEAH. AND THE PRESIDENT SEEMS TO BE. DOING THAT. I'VE JUST GOT 30 SECONDS FOR. YOUR FINAL WORD, VICTORIA. >> RIGHT. I THINK THIS IS AMERICA'S. PROMISE FOR THE FUTURE. IT GOES HAND IN HAND WITH OUR. ENERGY RESOURCES WHICH ARE GOING. TO FUEL THE WORLD. WE'RE PROBABLY GOING TO GET MORE. SANCTIONS ON IRAN COMING THIS. WEEK. THEY PROBABLY ARE GOING TO BE. CHINA-RELATED, MORE FOR THAT. AGENDA IN SEPTEMBER IS. BUT I THINK WE'RE GOING TO HAVE, YOU KNOW, WE'RE GOING TO COME. OUT ON TOP ON THIS ONE. JACKIE: AND THE SANCTIONS HAVE. BEEN VERY POWERFUL.

STARVE THEIR ECONOMIC STREAM AND. ALL THEIR POWER ERODES. THANK YOU SO MUCH. FORMER DEPUTY NATIONAL SECURITY. ADVISER VICTOR.