This episode's headline: China Watch; Spillover; Megadeal; Poisonous Profits?. The guests include CALMAN COHEN, Emergency Committee for American Trade; A.M. ROSENTHAL, New York Times; PEI MINXIN, Princeton University; SIDNEY JONES, Human Rights Watch; GARY REICH, Wall Street Defense Analyst; GREGORY BISCHAK, Defense Conversion Economist; CORRESPONDENTS: LEE HOCHBERG; TOM BEARDEN. Byline: In New York: ROBERT MAC NEIL; In Washington: JAMES LEHRER