FIRST AIRED: December 17, 2016

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Transcript

00:00:01
>> China seizing an American underwater drone in the South China Sea in a dramatic escalation of U.S. China tensions over the disputed area. I'm Andy Sullivan in Washington, where sources telling my colleague Phil Stewart, China grabbed the drone on Thursday near the Philippines, just as a US Navy ship was about to pick it up.
00:00:20
That's sure to aggravate the tensions between the two countries over China's growing military presence in the South China Sea. United States firing off a formal protest through diplomatic channels, demanding that the drone be returned. China had no immediate response to the incident. This doesn't seem to be a matter of top secret technology.
00:00:40
Pentagon saying that the drone used commercially available parts and sold for about $150,000. Still the Pentagon is taking this seriously because China has effectively stolen US military property. Now this is after contentious comments from incoming President Donald Trump on Taiwan and the long-standing One China policy. President-elect Trump seeming to wanna put China on notice.
00:01:03
President Obama not addressing the drone incident during a Friday afternoon press conference, but he did call out China on another source of tension, cyber attacks.>> Just as I told Russia to stop it and indicated there will be consequences when they do it, I had to have the same conversation with President Xi.
00:01:20
>> All of this comes just one day after China admitting it had installed weapons on seven artificial islands in the South China Sea. A US think tank reporting satellite images showed that it had installed anti-aircraft and anti-missile weapons in an area that also is claimed by Vietnam, the Philippines, and Malaysia.