[Berman:] China is escalating the rhetoric in its dispute with the United States after American spy plane with a CNN crew aboard flew over disputed waters in the South China Sea. China has now lodged a formal complaint with Washington that vows to expand its military operations. So, how bad will this get with the two nations? CNN's David McKenzie with the latest this morning from Beijing. Dave, what's going on here?
[David Mckenzie, Cnn International Correspondent:] Well, John, you had that editorial in the tabloid "Global Times", that's a state-backed publications, saying the war between U.S. and China overt disputed South China Sea is inevitable. That's certainly worrying rhetoric as escalating tensions in that area is putting China and the U.S. potentially on a collision course. Now, it's also the fact that China has announced its new military strategy in the white paper. I have it right there, and it's saying it wants to have a more active military, a more robust military, using active defense, in particular, strengthening its navy in the region John.
[Berman:] So, how does this de-escalate? Is there any kind of off-ramp here for China?
[Mckenzie:] Well, that's a very good point. It's an off-ramp potentially for China and the U.S. because, you know, the relationship between the two countries is not just about this one issue. There's a huge trade between China and U.S., trade negotiations ongoing. There's cooperation on climate change. So, I don't think either side wants to escalate beyond a certain point. But because China claims these islands in the South China Sea and says it's a sovereign right to build military and civilian assets on those islands, and because the U.S. really wants to help its allies in the region, including the Philippines and others, you have this status quo which is very dangerous indeed. And some kind of accident or issue between the two sides accidentally is the biggest fear because, obviously, neither side wants to intentionally start any kind of conflict John.
[Berman:] Both sides making too much money in this relationship, to be blunt about it. But you do worry about some kind of mistake. David McKenzie, great to have you with us this morning. Thanks so much.
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