CNN Lou Dobbs Tonight- Transcript

LOU DOBBS TONIGHT

DOBBS: Let's hope that the U.S. trade representative is sincere. Trade representative Rob Portman, in fact, will be joining us here next week. We'll be talking about this unbalanced trade relationship with communist China, so-called free trade, and our exploding trade deficit. That's next Wednesday. Please join us here on CNN for that.

And communist China tonight is firing back after we reported here that China set up 4,000 front companies to steal U.S. military technology -- that last night -- including cruise missiles and aircraft engines. The communist Chinese Foreign Ministry called the charges groundless. The ministry even claimed that China will never buy any military equipment illegally.

My next guest says the United States is the only force capable of confronting what he called China's "megalomaniacal goals." Congressman Dana Rohrabacher of California today held hearings on them anyway.

He says China is trying to influence U.S. foreign policy, joining us tonight from Capitol Hill. One of the surprising things, Congressman, that came out today is the influence of U.S. think tanks in advancing the Chinese interests.

REP. DANA ROHRABACHER (R), CALIFORNIA: Well, that doesn't surprise me because many the so-called think tanks, of course, have been set up by major corporations simply to lobby Congress and lobby the American people on behalf of old policy of get rich quick by dealing with slave labor in China. And so that didn't surprise me but it was an important point that we need to focus on.

DOBBS: Well, now you said slave labor, Congressman. The U.S. trade representative was talking about subsidized trade. Would slave labor qualify as a subsidy?

ROHRABACHER: Well, let me -- they have a low guy system in China in which, as you know, many of the products made in China and some of them exported here even, are made by people who were arrested because they were Christians or because they worship God in a certain way.

What we have in China is the world's worst human rights abuser and you have corporate America setting up these foundations and these think tanks that you're talking about, to try to convince us that in the long run it's going to turn out OK.

All we have to do is deal with them on a financial base. That's not the way you liberalize a country, by letting profit to be made by the dictator and by our big businessmen.

DOBBS: Congressman, I just want to point out something to our audience that the audience -- members of this audience may be a little shocked when they -- to focus on the fact that you are a Republican, Congressman, speaking in this way about the improper influence of U.S. corporations through think tanks on U.S. foreign policy and China.

ROHRABACHER: I will tell you that the U.S. corporate -- the record for U.S. corporations in China and dealing with other dictatorships, I might add, is a dismal record. And these people, you know, who run our corporations, it's their job to make a buck.

It's our job in government to try to make sure that what's happening is consistent with American principles, of our belief in treating people decently and honestly and consistent with the ideals of the American Revolution, of the rights of individuals.

DOBBS: My God, Congressman, a U.S. Congressman talking about the national interests, the interests of working men and women in this country and suggesting that corporate America should not be dominating our political system?

ROHRABACHER: Well, it's up to us as members of Congress not to let corporate America make the final decision.

DOBBS: Amen, brother.

ROHRABACHER: And that's what it's all about. We set the parameters but what we've had here in Washington -- and it's not just Bush. And by way, let me just note, during the Clinton years it was just as bad as it is right now.

DOBBS: I will stipulate that and I will tell you, I think the Democrats and the Republicans alike should hang their head in shame for what they're doing to this country, period.

ROHRABACHER: It is amazing. We have built up a monster that is, number one, taking -- stealing our technology -- not our defense technology, also the technology that we have in order to be competitive.

If they have slave or low-wage people working over there, the only way our people are going to survive is if our technological ideas are put in place and not stolen. We permitted the Chinese to steal this and build a competitive product overseas.

DOBBS: Congressman Rohrabacher, we thank you for being here. We hope that -- if I may, since we had George Lucas in one of our reports earlier, may the force be with you. We appreciate it. Thank you.

ROHRABACHER: Thank you.

DOBBS: Thank you. Congressman Dana Rohrabacher.

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