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Little Prices, Big Smiles.

This is CBS Eye on the World. I'm John Batcher with my colleague, Colonel Jeff McCauzzon,

in our state's army retired CBS News.

The report from the Pacific is a puzzle to me because right now, Russia and China are conducting joint

C exercises in the Sea of Japan, deliberately provocative against South Korea or ally against

Japan or ally, deliberately so, following days of overflight of nuclear-capable bombers by China

and Russia in the Sea of Japan. Jeff, here's the quandary for me. China is an adversary.

At the same time, it's a trading partner. China so far is said to have stayed out of

the conflict in Ukraine and yet China is conducting threatening exercises against our allies

in the Pacific while claiming to be neutral in the Ukraine war.

That something about this doesn't add up, Jeff. China is a threat, correct?

And it and often presented as a bigger threat than Russia, correct?

Absolutely correct. I would say John because China is a threat to the United States, not only militarily,

and we see they're growing nuclear power in probably the next few years.

They may have a strategic nuclear capability that's parallel to ours, but they are also enormous

economic threat to the United States. Throughout the Cold War, I always point out to people,

we competed some degree with the Russians, the Soviets economically, but at its height,

the economy of the Soviet Union during the Cold War was about the size of Belgium.

And that's not true obviously with the second or at least first perhaps,

...