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00:00Today as we sit here I think you've been to China roughly one hundred and fifty times something like that a lot. So how did you happen to come to deal with China so much. Almost. David By accident I was in the Chicago office of Goldman Sachs working with clients in the Midwest and I wasn't looking to move to New York. So the firm asked me to do to be a co head of our investment banking division with a couple other individuals who were in New York. And we're looking at how we might divide things up where we had a big business in Europe and almost nothing in Asia. One of the guys said to me why don't you take a take Asia take China because it's closer to Chicago and New York. And and I was I wasn't overly curious but I was interested. And so I began going to to Asia. So I came back and I talked to my bosses Bob Rubin and Steve Friedman. And I said you know I get the feeling China's about to take off and I would like to do a deep dive and look at opportunities in China . And you know and and when I made the first trip there in in maybe it was in 1991 we had five people in the Hong Kong office. When I left to go to Treasury in 2006 I think we had fifteen hundred people in Greater China. So I put the pedal to the metal. Today we have two great economies that we're all China and the United States. In your view is there a clash between the two of them inhabitable leading to a actually a real war not a cold war. Well I begin by saying that that China is a strategic competitor and there are some compelling differences . When we look at our national security interests and there also are some some important shared interest in terms of global stability and things like climate change. But to get to your question I'm concerned are really very concerned about what I see as a militarization of the U.S. view toward U.S. China. And I'll tell you what I mean by that. I take national security very seriously but national security has bled into basically every aspect of the economic relationship. And I look at it and I say here our Cold War all the time. And there is no way this is a Soviet style Cold War. China is very integrated into the global economy. We're looking at the number one manufacturer the number one trader a big exporter of capital .

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Paulson Is Concerned About Militarization of U.S. View of China

Hank Paulson, chairman and founder of the Paulson Institute and former chief executive officer of Goldman Sachs Group Inc., talks about how he grew the bank's business in China and his views on current U.S.-China relations. He appears on "The David Rubenstein Show: Peer-to-Peer Conversations." The interview was recorded Oct. 2 in Washington. (Source: Bloomberg)

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