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00:00BILL LEE WOULD NOT BE A SOYBEAN IF IT HIT HIM OVER THE HEAD. BILL LEE, WHAT IS A TRADE WAR AND WHY ARE WE FINALLY IN ONE? > > EVERYONE IS GETTING SERIOUS BECAUSE THE RETALIATION IS THERE . TRUMP IS ADAMANT ABOUT NOT GIVING IN. CHINA IS NOT GIVING IN. THE UNCERTAINTY IS ABOUT HOW THIS WILL RESULT. WHERE DO WE GO TO GET THE REAL ISSUES ON THE TABLE? GETTING INTELLECTUAL PROPERTY AND MARKET ACCESS ONTO THE TABLE? TOM: INTELLECTUAL PROPERTY IS AN INTANGIBLE IDEA. THE FANCY SUITS AND TIES WITH THE FANCY DEGREES GO INTERNATIONAL RELATIONS ON ME. A PILE OF SOYBEANS IS A PILE OF SOYBEANS, AND THAT GETS POLITICIANS GOING. WHEN DO WE GET TO THAT POINT? > > WE ARE AT THAT POINT. CHINA IS NOT THE ONLY CUSTOMER. THERE ARE ONLY SO MANY SOYBEANS. THE CUSTOMERS BUYING FROM SOUTH AMERICA ARE BUYING FROM US. THERE IS A LIMITED SUPPLY. WHEN DEMAND IS EQUILIBRATED, WE SHIFT. SO SOYBEAN FARMERS ARE OK. THEY HAVE TO FIND NEW CUSTOMERS. THE REAL ISSUE IS GETTING THE NEW TRADE ORDER IN PLACE AND GETTING RID OF THE TRADE ORDER FROM WORLD WAR II. TOM: JACK, THIS IS DIFFERENT. BILL LEE IS ON THE EAST COAST. IT IS ALL ESOTERICA. > > RIGHT NOW MIDDLE AMERICA, MIDWESTERN STATES, ARE SUPPORTING THE PRESIDENT, ALTHOUGH MIDWEST STATES DID HAVE SLIPPAGE UNDER TRUMP WITH GOVERNORS. BY AND LARGE THE RURAL AREAS ARE STILL TRUMP -- TOM: IF WE GET A FURTHER PRICE THE CLIENT AND SOYBEANS, THAT IS TANGIBLE? > > THEY ARE NOT LOOKING FOR HANDOUTS. THEY WANT TRADE. LOOKING AT IT FROM CHINA ' S PERSPECTIVE, THEY ARE TRYING TO DELEVER. PART OF MY THINKING IS HE CAN USE THE TRUMP TRADE WAR AS AN EXCUSE IF WE SEE SLOWDOWN IN CHINA. MEANWHILE, THE YUAN IS CHEAPER AND THEY ARE OFFSETTING SOME OF IT THAT WAY. OUR MOST RECENT GDP, EXPORTS ARE DOWN A LOT. FRANCINE:

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U.S.-China Trade War: The Symbolism of Soybeans

William Lee, chief economist at Milken Institute, and Jack Ablin, chief investment officer and founding partner at Cresset Capital, discuss fallout from the deepening trade conflict between the United States and China. They speak with Bloomberg's Tom Keene on "Bloomberg Surveillance." (Source: Bloomberg)

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