The China Threat: Silicon Valley and the Great Uncoupling
Summary
TLDRIn this thought-provoking discussion, Congressmen Mike Gallagher and Jake Auchincloss delve into the multifaceted China threat, encompassing technological competition, economic decoupling, military deterrence, and ideological warfare. They highlight the urgency of strengthening American competitiveness through strategic investments, immigration reform, and deepening ties with allies. The conversation underscores the necessity of a robust approach to counter China's authoritarian influence while upholding democratic values and fostering American dynamism.
Takeaways
- ⚠️ The primary risk from China is the potential for war, including an attempt to take Taiwan by force, which could have catastrophic economic and geopolitical consequences.
- 🇺🇸 There is bipartisan agreement on the nature of the threat from China, but disagreements on issues like the prioritization of climate change and the prospect of high-level engagement with the CCP.
- 🇨🇳 TikTok is seen as a major threat, as it allows the Chinese government to influence and indoctrinate the next generation of Americans with an adversarial worldview.
- 💻 The US needs to attract high-skilled immigration and invest in STEM education to remain competitive with China in technology and innovation.
- 🔒 There is a need for tighter restrictions on the flow of US capital and technology to Chinese companies involved in military applications or human rights abuses.
- 🤝 Deepening economic and technological partnerships with allies like the UK and Australia through agreements like AUKUS is crucial to countering China's influence.
- 📡 Cyber threats from China, particularly against critical infrastructure, are a legitimate concern that requires hardening of targets and bolstering cybersecurity.
- 🇺🇸 Despite challenges, there is optimism about America's ability to out-compete China by leveraging its core values of individual liberty and free enterprise.
- 🌱 There is a need to inspire and empower the next generation of Americans to serve their country and uphold its ideals in the face of the China challenge.
- 🌍 Overall, a multifaceted approach is needed, combining military deterrence, economic decoupling, ideological resistance, and bolstering of domestic strengths to prevail in the long-term competition with China.
Q & A
What are the main threats and concerns regarding China discussed in the script?
-The main threats and concerns discussed include the risk of war, specifically China's potential attempt to take Taiwan by force, the erosion of the conventional military balance in the Indo-Pacific region, China's ideological warfare and influence through platforms like TikTok, and the broader economic and technological competition between the U.S. and China.
What is the significance of Taiwan in the context of the China threat?
-Taiwan is crucial for several reasons: its semiconductor production is vital to the global economy, its fall
Outlines
🌐 The China Threat: Scope and Concerns
Congressman Gallagher discusses the broad scope of the China threat, encompassing issues from apps like TikTok to Taiwan. He emphasizes that the primary risk from China is war, as autocratic systems like China's may engage in actions that seem irrational from a Western perspective but make sense to them for preserving the regime. Despite warnings, Gallagher argues that the U.S. has not fielded an adequate deterrence posture, risking being drawn into war on unfavorable terms that could be catastrophic.
💥 Economic and Ideological Competition with China
Congressman Khanna expresses confidence that America can outcompete China if it wants to, as the competition is one of conflicting worldviews – individual liberty versus state control. He cautions against nationalism on the right and rejection of Western values on the left, arguing that America should fight for its ideals of individual freedom and pursuit of aspirations. While there is bipartisan agreement on the China threat, there are disagreements within parties on prioritizing ideological warfare and trade policies.
🇺🇸 American Companies' Engagement with China
The discussion shifts to how American companies should engage with China. Gallagher urges companies to recognize the Chinese Communist Party's dismal record on environmental, social, and governance issues and act as American companies. Khanna argues for limiting U.S. capital flows to Chinese technology and military companies, tightening export controls, and deepening engagement with allies through free trade agreements and technology cooperation. Both emphasize the need for a more restrictive bilateral relationship with China while expanding partnerships with other countries.
🇺🇸 Immigration and Domestic Priorities
The conversation touches on immigration, with Khanna advocating for legal immigration reforms to meet economic needs and actively recruit high-skilled immigrants worldwide. Gallagher expresses frustration with the Republican party's lack of action on immigration reform despite rhetoric. They also discuss the need for the U.S. government to be a better customer for entrepreneurs and companies, investing in areas like housing, military, utilities, and energy to maintain American dynamism and technological leadership.
🤝 Hypothetical Presidential Approaches to China
When asked about their hypothetical presidential approaches to the China-U.S. technology relationship, Khanna proposes a more restrictive framework with China while deepening engagement with allies through free trade agreements and technology cooperation. Gallagher suggests being tougher on restricting U.S. capital flows to Chinese companies and closing regulatory loopholes, while maintaining a global commercial presence for U.S. companies in high-tech industries.
🇺🇸 Inspiring Optimism in the Face of Challenges
In response to a question about assuaging fears among Americans regarding the China threat, the Congressmen share heartwarming stories of young Americans' patriotism and commitment to service. Gallagher recounts a story of a young woman's appointment to the U.S. Naval Academy, while Khanna speaks of the inspiring conversations he has with service academy appointees. They express optimism in America's resilience and the decency of its people, urging their audience not to bet against the country's possibilities.
Mindmap
Keywords
💡China threat
💡Deterrence
💡Ideological warfare
💡Economic competition
💡Semiconductors
💡Taiwan
💡Cybersecurity
💡Immigration
💡Bipartisanship
💡Optimism
Highlights
I think to take your second question first, the risk in simplest terms from China is, is war right and we tend to Discount the, possibility that xiin ping could do, something as stupid as try to take, Taiwan by force because it does look, irrational from a West perspective but, if the collapse of deterrence in Ukraine, has taught us anything it's that, particularly when you're dealing with, autocratic systems who just don't have, robust feedback loops they could do, something that looks irrational from our, perspective that we think is deterred or, deter and yet from their perspective of, preserving the regime makes sense
Beyond all the talk about, decoupling and ideological Warfare and, Tik Tock if we don't get the hard power, side of the equation right we may, stumble into war on someone else's terms, and it's going to be horrific it will, look the current it will make the, current crises in the Middle East and, Ukraine look like child's playing, comparison other than that I'm an, optimist
China views, individuals as ponds of the state the, United States was founded upon the, Timeless ideal that individuals have, inherent worth and value, and those are mutually inconsistent ways, of approaching governance of approaching, economics of approaching diplomacy and, and uh great power competition and we, must win and we can if we want to
We're seeing on the on the, right this blood and soil nationalism, obviously articulated by Donald Trump, that is fundamentally about closing, America off and we see on the hard, left a rejection of Western society and, what it represents from the, enlightenment onwards and both of those, are wrong there is much for us to be, proud of in uh what western Society has, produced and much of it has been, crystallized in the US form of, government and we should fight for it
To allow a company uh, that is owned by bite dance which is, beholden to the Chinese Communist party, to be the dominant new platform for the, next generation of Americans I think I, think borders on on National Suicide
If Taiwan Falls it will make, our ability to fulfill our treaty, commitments with Japan and the, Philippines Impossible Las Vegas rules, do not apply what happens there will not, stay there and though we've had a brutal, and this is the third reason debate, about the nature and role of democracy, promotion in American foreign policy, there's something different in my mind, about fending an existing vibrant, democracy from an authoritarian threat, that if America doesn't stand for that, I'm just not sure what we stand for
I would I'm I'm persuaded that, cuttingedge semiconductors belong in, that Garden I have not been persuaded of, basically anything else I believe in in, markets that have Global access, particularly for high R&D High fixed, cost industries that are so important, for our future utilities biotech uh, semiconductors Etc and so um I really, I want to see the maintenance and, expansion of the US operating system as, a global commercial entity
I would cut off the flow of us Capital, both passive and active public and, private to a greater number of sectors I, think a sector specific set of guard, rails is actually much easier to, implement than the multi-list, whack-a-mole we currently play right now, which is a total shambles
I've, long argued for it we need a a gold, standard free trade agreement with the, UK post brexit that could have a docking, provision that other countries could, join when it comes to Aus I give the, Biden Administration a ton of credit for, Aus but in some ways the most important, part of aus is not the pillar one, nuclear sub thing which we could screw, that up we should not screw that up, that's a big deal we need to build more, subs 2.5 Virginia a year let's do that
I would adopt a more restrictive framework with, respect to China and our bilateral, relationship but in return and, simultaneously I would deepen our, engagement with other countries and, assume some intelligent risk in the rest, of the world
Don't be sending, Grandma Palmer I really shouldn't have I, regret it I sure 88y old an yeah I, shouldn't have done it I should have, done it Palmer since his, grandma
I we had a we had an event in my, district like six years ago I was a new, member of Congress we dedicated this, Fitness trail that a an army General who, passed away unexpectedly his widow, raised the money it's beautiful thing, this girl came up to me she was in, eighth grade at the time raised by her, grandparents Shauna Wisconsin rural area, and she's like you know what this event, has so inspired me and general con's, example inspired me like I want to go to, a service academy one day well on, Wednesday this week I'm going to get a, little choked up uh I'm not uh uh I got, to tell this young lady that she got an, appointment to the United States Naval, Academy just like incredible Young, American like man it's awesome
There's still humans like that in, America Patriots
You find talking, to the average American there's a deep, reservoir of Common Sense and decency, that in aggregate gives me great hope, that uh America is a land of, possibilities and don't bet against us
I think it all just comes down to human, beings right our biggest threats are, human threats a contractor doing, something they shouldn't do and our, successes will be a function of our, ability to get the best and the, brightest in cyber to work with DOD and, the federal government
Transcripts
the China threat um and this is an
audience that would know it well is a
very broad topic uh spanning from an app
that might be on some people's phones in
the room called Tik Tok to Taiwan um
what is the scope of the issue as you
see it and what should we be most
concerned about big question we'll start
with you Congressman Gallagher uh well
first of all thank you for having me
thanks uh uh to all of uh you for being
part of this I see a lot of friendly fa
I can't really see but I think I see
some friendly faces in the audence lot
friendly faces and some enemies too I
see a lot of enemies which is good it
means I'm doing something right um I
think to take your second question first
the risk in simplest terms from China is
is war right and we tend to Discount the
possibility that xiin ping could do
something as stupid as try to take
Taiwan by force because it does look
irrational from a West perspective but
if the collapse of deterrence in Ukraine
has taught us anything it's that
particularly when you're dealing with
autocratic systems who just don't have
robust feedback loops they could do
something that looks irrational from our
perspective that we think is deterred or
deter and yet from their perspective of
preserving the regime makes sense and so
my concern is that despite what's
happening in Ukraine despite the fact
that the system is blinking red across
the world despite the erosion of the
conventional balance of power
particularly the indopacific we are
still we still have not fielded a
deterrence by denile posture that makes
absolutely no sense and if you look at
what just happened in Jordan right this
is something that should have been
obvious to anybody that watched the
Iranian attack on the Saudi oil facility
a few years ago thecake oil facility the
Army can't do its one Jrock its one
joint function which is defense for our
expeditionary bases against missiles and
drones like this we're on the wrong side
of the cost curve look at all the SM
sixs we've expended in the Red Sea right
now we haven't moved to maximum
production rates of long range Precision
fire so beyond all the talk about
decoupling and ideological Warfare and
Tik Tock if we don't get the hard power
side of the equation right we may
stumble into war on someone else's terms
and it's going to be horrific it will
look the current it will make the
current crises in the Middle East and
Ukraine look like child's playing
comparison other than that I'm an
optimist Congressman aen class I'd love
to hear your take on it yeah I
appreciate the chance to be here and
it's good to be here with the chairman
of of the China select committee uh I
think America is going to out compete
China I think we're going to win this
contest if we want to and those are the
four words that I spend a lot of time
thinking about if we want to because the
competition between America and China is
a competition of worldviews China views
individuals as ponds of the state the
United States was founded upon the
Timeless ideal that individuals have
inherent worth and value
and those are mutually inconsistent ways
of approaching governance of approaching
economics of approaching diplomacy and
and uh great power competition and we
must win and we can if we want to and
the reason I am concerned about if we
want to is that we are seeing increasing
uh antibodies against the free and open
Society upon which the United States is
premised we're seeing on the on the
right this blood and soil nationalism
obviously articulated by Donald Trump
that is fundamentally about closing
America off and we see on the hard
left a rejection of Western society and
what it represents from the
enlightenment onwards and both of those
are wrong there is much for us to be
proud of in uh what western Society has
produced and much of it has been
crystallized in the US form of
government and we should fight for it uh
but we should also fight for it not as a
blood and soil idea but as the American
creed that
uh every
individual regardless of the
circumstances of their birth should be
free to pursue their aspirations in life
yeah so one thing from the outside
looking in it seems like there is
bipartisan support uh agreement around
how important this issue is I'm sure
there's some sparring internally it
would be great to understand where you
two are in alignment where where there's
consensus on the committee and then what
are the the major points of disagreement
yeah we're laughing because this morning
uh there's a little bit of fist to cuffs
on the committee I heard uh I'll let the
chairman start though it's all good uh
well I do think it gets to like maybe
something like we are trying to do our
committee's work amidst what is a very
fractious uh political environment right
and I I'm I have yet to meet sort of
like the person who's enthusiastic about
this Trump V Biden rematch and so there
is like a a big black hole that is the
2024 election sucking everything into to
its wake and that is a challenge it's a
challenge to get anything done in
Congress uh on a good day I do think in
the last year of our committee's work uh
proves this that there is Broad
agreement that on the nature of the
threat uh that we must do something
about it that we're not attacking it
with a sense of urgency when it comes to
um I think the sort of military aspect
of the competition I actually think
there's more agreement than disagreement
um on the
ideological uh aspect of the competition
there's disagreement within the
Republican party on to what what
priority do you give ideological Warfare
I give it a high priority largely
because xiin ping uh seems to think it's
important having studied the collapse of
the Soviet Union he concluded that the
main problem was insufficient commitment
to to ideology and part of the reason we
won the old cold Wars because Reagan was
quite good at ideological Warfare but on
the economic side I actually don't think
it's like it's a clear Republicans have
an approach Democrats have an approach
there's weird Bedell
uh and I think Jake and I would agree on
the fact and he's actually one of the
the loudest voices in his party for a
pro correct wrong a prot trade agenda
and though we had somewhat of a
disagreement about whether to revoke
permanent normal trade relations with
China I think yes Jake thinks no I think
we agree on the idea that as we adopt a
more competitive economic relationship
with China economically um we need to be
enhancing intensifying our economic and
Technologic Partnerships with the rest
of the world and assume some intelligent
risks and I do think the absence of a
trade agenda uh is a huge Grand
strategic gap for both parties right now
if that makes sense just one I think the
primary point of disagreement sometimes
is on the relative prioritization of
climate change in the relationship with
China uh as well as the prospect uh of
Engagement with the CCP at the highest
levels what that might yield I'm more
skeptical of that than some of my my my
Democratic uh friends I agree that it's
not always Democrat versus Republican
where there's disagreements and I think
the the sort of uh productive desent
that I try to add into the committee uh
is we spend a lot of time focusing
on uh competition with China that can be
Zero Sum it's about export controls it
is about restrictions on licensing it is
about tariffs obviously it is about uh
uh playing keep away with intellectual
property
and there is a place for that and it's
important but ultimately I think in the
Sino American competition 90% of the
questions that matter are about America
not about China China's got 1.4 billion
people they are a highly motivated
well-educated Workforce they're going to
create a bunch of impressive stuff and
the questions that I find most impactful
for our future are about are we
investing in basic research and
development are we in are we trying to
attract uh High skilled and frankly low
skilled immigration to the US economy
which keep Keeps Us Dynamic do we have
rule of law and contract enforcement are
we investing in quality infrastructure
like the boring stuff that we should be
focused on before Washington gets
distracted by like Quantum strategy and
my contention is we here in Washington
we're not doing a good enough job in the
boring stuff we should take care of that
we should be asking ourselves hey in the
latest pie of tests program for
international student assessment
American 15-year-olds went backwards on
math scores that is what should be
animating us cuz if American
15-year-olds can't do math we're not out
of competing anybody I don't care what
our what our semiconductor strategy is
yeah yeah yeah well speaking of
semiconductor strategy I mean that is
one thing that is top of mind for this
audience for our Founders chip
production you know it it is it is
something that if it is catastrophically
disrupted um I would love to hear how
you're thinking about worst case
scenario you know how how you even think
about how to respond if something like
that were to come to pass specifically
with Taiwan well I guess one of the
reasons though it's not the only reason
uh that Taiwan is important because if
there was even a blockade scenario that
played out it would be profoundly
disruptive to the global economy and
you're talking trillions of dollars lost
in even the low-end modeling for
something like this and then if they
were somehow able to take Taiwan which
admittedly is a very hard problem just
from a a pure like invading an island
and doing an amphibious assault is a
hard problem Jake's a marine I'm a
marine this is something that we are uh
we are we are raised to to understand
Zack Shore is a marine I think although
he was mostly drinking the entire time
with me we were roommates in Carl's Bad
luckily Facebook had just started so
none of it's online so just sneaked
under the radar
yeah good BL it's it's mutually assured
destruction bro so you launch your
missiles I'm launching mine um uh so uh
and I also think maybe the conceptual
mistake we made with the chips act uh
and I know there's disagreement about
the chips Act is that um we need by
onshoring onshoring production of
semiconductors to America would somehow
enhance deterrence but I wonder if the
opposite could be true right the more we
onshore the less relevant Taiwan is and
therefore the more attractive of a
Target is or just as a question of
investment would it have been better to
fund a ships act in order to make an
invasion uh impossible if not highly
unlikely because even if they don't
establish a logement in Invasion it's
going to massively muck up the entire
global economy but the economic reason
is not the only reason Taiwan is
important if Taiwan Falls it will make
our ability to fulfill our treaty
commitments with Japan and the
Philippines Impossible Las Vegas rules
do not apply what happens there will not
stay there and though we've had a brutal
and this is the third reason debate
about the nature and role of democracy
promotion in American foreign policy
there's something different in my mind
about fending an existing vibrant
democracy from an authoritarian threat
that if America doesn't stand for that
I'm just not sure what we stand for so
we should also stand for Ukraine agree
yeah yeah let's do
it tell your speaker I will stand right
now for you so one thing that's that's
also on the agenda for this week and I
know we're jumping around a lot but you
all cover such breth on the committee um
is you're holding the CCC cyber threat
um to the Homeland and National Security
um uh hearing tomorrow most citizens
when they think about cyber threats
until recently they didn't think about
attacks on critical infrastructure
things that could take out the power
grid by nation states what what you've
learned about these threats what how do
you assure the American people that
things are going to be all right or or
is it actually a a bad scenario that we
should be very concerned about as
Citizens uh it's a it's a legitimate
threat and we need to harden our targets
electoral systems public water supplies
um utilities they've made big strides in
the last five years and it's been a
bipartisan issue under under uh
cisa and Homeland Security to make
themselves harder targets a source of
good jobs for young people as well
Massachusetts has created a lot of good
cyber security certificates around this
area but actually the the sort of
digital threat I'm by far the most
concerned about is is Tik Tok we are
seeding the ideological ground to our
adversary to inculcate the next
generation of Americans into a worldview
that uh is really I think antithetical
to a lot of what we stand for and the
chairman has been articulate about this
and in the Free Press which I read your
essay on that oh wow thank you uh we
have I think I read all your stuff too I
think we've got to force a sail I just
don't think we would never have allowed
CBS ABC NBC to be owned by the Soviet
Union in the 1960s and that is I think
if anything understating the degree of
influence that we are seing right now
and that's not a speech issue you can
post whatever you want it's a question
of reach just because we honor and
respect the First Amendment does not
mean that we have to allow our biggest
adversary to control on a black Black
Box an algorithm that influences
hundreds of millions of people that is
not free speech that is the control over
reach yeah and go ahead I just want to
foot stomp that and say yes there's a
concern with Tik Tok that it can track
your location and uh your your browser
history that's a huge problem for Zach
in particular uh uh but that's not the
primary threat and Jake I think said it
well I mean to to allow a company uh
that is owned by bite dance which is
beholden to the Chinese Communist party
to be the dominant new platform for the
next generation of Americans I think I
think borders on on National Suicide and
by the way if you are invested in bite
dance I would assume you want Tik Tok to
go public in America uh that's not going
to happen under the current ownership
structure so it is in your interest for
there to be a complete separation where
none of the plumbing is connected and an
American company controls uh Tik Tock us
and Doan does Doan things and there's
control of the algorithm so and just one
final note on Cyber I do think having
cheered the cyber space salarium
commission beyond all the fancy things
we can do like giving siza the ability
to do threat hunting on dog networks I
think it all just comes down to human
beings right our biggest threats are
human threats a contractor doing
something they shouldn't do and our
successes will be a function of our
ability to get the best and the
brightest in cyber to work with DOD and
the federal government yeah now speaking
of Tik Tok I mean many are concerned
about the way that the Tech Community
engaged with China in previous decades
how it engages now what are your
thoughts about the right way that
technologists that company should be
engaging with China on on a host of
issues listen I I don't think anyone
expects you know andreon or some tech
company to be the state department but I
mean if if social justice or ESG is a
big deal for you and your employees I
just would ask you to recognize that
there's no worse ESG actor and no
greater offender of social justice
issues than the Chinese Communist party
they suck on the E the S and they really
suck on the G
uh the the G stands for anything it to
stand for genocide so speak up uh we're
asking American companies to act like
American
companies I mean listen Jake Jake
mentioned an issue that I I think you
think there's no agreement on
immigration and listen immigration
politics speaking of things that suck
they really suck uh but I wonder if our
framework is actually the same right
like make it difficult if not impossible
for people to come here illegally but
when it comes to Legal immigration
modernize the system where it could
scale up or down depending on the needs
of our economy and then when it comes to
high high skilled immigration and you
want all these smart people like we
should actively be on a recruiting
Mission around the world to scoop up the
best and the bright I'm going
to guys don't don't applaud that from
him because I'm going to throw a red
flag on that play because we do have a
republican talking about immigration
reform when so you get speaker Johnson I
mean well get speaker Johnson and MIT
conell saying the quiet pout are loud
here which is that they'd rather
campaign on on immigration than govern
on it and you know that's not you Mike
saying that but at a certain point the
Republican party is going to own the
fact that for 20 years they've been
telling the American people that
immigration is broken we have in good
faith a bill to start fixing it and the
speaker has said it's that on
arrival do we have the bill I'm actually
not this isn't like a rebuttal I don't I
and people keep asking me about the the
deal I just don't know what the deal is
I haven't seen I was on Fox news on
Saturday and as far as Fox News is
concerned it is anathema yeah and it's
because they CH says we can't vote on it
you got Senator McConnell killing it
you've got speaker Johnson killing it
damn you llin Murdoch we we we have we
have overlap on the policy but on the
politics I I just I do feel like one
side is serious about the other side has
not been as serious about it yeah well
moving to a more hopeful note um you
know 10 years ago 10 years ago um you
know when I first moved to Silicon
Valley no one was talking about China I
would actually say even 5 years ago no
one was talking about China I would love
to hear from your perspective you know
we we have a number of great Founders
where that is the focal point of their
business now it is top of mind for
engineers and for Founders in Silicon
Valley how have you experienced that
shift with Silicon Valley and do you
think it's making real progress in in
the eyes of what you're what you're
building towards as
well I'm might actually put that
question back on you I mean you're the
one running the American dynamism
portfolio and and I I would imagine that
the Spectre of China has galvanized some
of the entrepreneurs that you work with
to want to work with the United States
government which is not a particularly
fun customer to have to deal with but
they've said if we're serious about
being in the 21st century what we became
in the 20th 20th century the the the
guarantor of the Pax Americana and The
Shining Light uh we have to do housing
we have to do military we we got to do
utilities we got to do energy all the
stuff that I think in the
first uh boom out of Silicon Valley was
really overlooked uh so I think that's
inspiring and I would just encourage
everyone here to uh to keep pushing the
US government to be a better customer
and I say this all the time to the
Department of Defense we do not need the
Department of Defense to be a venture
capitalist we don't need it to be an
equities investor we need the Department
of Defense to be a good reliable
expeditious customer and until they get
that right I don't think we're going to
fully realize the the the possibilities
of your
portfolio yeah I'll just I'll just
quickly here I'm actually cautiously
optimistic here and it's not just cuz we
now have I've always wanted to do like a
time-lapse photo of the like the banner
of sponsors at the Reagan National
Defense Forum and I actually think it
tells like a good story about new and
interesting companies um who want to
work with DOD definely or at least want
to hang out with me for two days uh at
Reagan um uh we've had outspoken voices
obviously who I think are great like Dr
carpet palen here like Palmer lucky uh
who's bu he here is he wearing shoes uh
not this year it was here last year
Andre um but I think there's more people
that want to get in that game and want
to try and break down the barriers to
working with DOD and it is ultimately
however to Jake's Point going to take
Dodd actually making big bets on a few
companies that are non primes because we
just keep admiring the Valley of Death
problem and that that's the sort of the
less hopeful side of the equation if you
go to Reagan almost every year the
secretary comes it doesn't matter if it
was madis or now Austin it kind of gives
the same speech about we're GNA cross
the valley of death and this and that
and that's where we just need to
appropriate money to DOD right we're
talking about a supplemental right now
what are we supplementing we haven't
actually passed a DOD appropriation and
then we have to force DOD to make big
bets on things and then we in Congress
have to make sure that if some of those
bets don't work out which they all won't
that we won't just rake them over the
coals we need to celebrate original
mistakes while vilifying and demonizing
making the same mistakes over and over
again so this is a question
this is a question that's going to allow
our our audience to dream but if there
were a president aen classus or
president Gallagher how would that
Administration address the relationship
with China and Technology differently
would it be different what would you T
do tactically well Jake and I are here
today to
[Laughter]
announce I would love to be president of
an obscure liberal arts university
actually the politics of that would be
to be brutal no you would
yeah will you want to tackle that first
yeah uh if I if I were president how
would I tackle the US China
technological relation is there
something tactical you would do on day
one so and this is I think a a a point
of I think uh a genuine maybe
intellectual disagreement here Jake
Sullivan has talked about a a a small
garden with a high fence and this idea
that there are some things that we're
going to protect with all measures
available um I would be I would be a
little bit tougher on how he described
that Garden than I think uh the current
approach is because I worry that it
becomes really an excuse for uh for
lobbying frankly where every industry
comes and tells us how strategic they
are and ultimately it actually makes our
economy more sclerotic and less Dynamic
I would I'm I'm persuaded that
cuttingedge semiconductors belong in
that Garden I have not been persuaded of
basically anything else I believe in in
markets that have Global access
particularly for high R&D High fixed
cost industries that are so important
for our future utilities biotech uh
semiconductors Etc and so um I I really
I want to see the maintenance and
expansion of the US operating system as
a global commercial entity so I would
and I actually do think this is and I
Jake's uh descent on some of our our uh
econ recommendations was was productive
I I think it made the final product
better and I respect his position I
would cut off the flow of us Capital
both passive and active public and
private to a greater number of sectors I
think a sector specific set of guard
rails is actually much easier to
implement than the multi-list
whack-a-mole we currently play right now
which is a total shambles and so we have
Trill billions probably hundreds of
billions of dollars American dollars
that are flowing into Chinese technology
and Military companies that are building
things like aircraft carriers artillery
shells fighter jets things that are
designed to kill Americans in future
conflict and I think that's perverse I
think we should close the loopholes for
licensing exemptions like right now uh
Huawei is off the mat it's coming back
with smick semiconductors in part
because they still have access to us
technology right we're funding our own
destruction to me uh it's crazy I would
tighten up our cfus loopholes that
people can't buy land for example near
military bases or critical
infrastructure but and maybe this is
where we agree on the positive side I've
long argued for it we need a a gold
standard free trade agreement with the
UK post brexit that could have a docking
provision that other countries could
join when it comes to Aus I give the
Biden Administration a ton of credit for
Aus but in some ways the most important
part of aus is not the pillar one
nuclear sub thing which we could screw
that up we should not screw that up
that's a big deal we need to build more
subs 2.5 Virginia a year let's do that
uh pillar two on the technology side we
still have all these outdated barriers
to cooperation with the Aussies and the
Brits our closest allies who doesn't
love the Aussies and the Brits because
of itar regulation we can't share our
best technology and people that's a huge
own goal I would be for a digital Trade
Agreement like we have ipf which is our
only trade thing in indcom is not a real
thing and it's less of a real thing now
that they've neutered ipf and it was
neutered to start with so I think again
to get to the basic balance I would
adopt a more restrictive framework with
respect to China and our bilateral
relationship but in return and
simultaneously I would deepen our
engagement with other countries and
assume some intelligent risk in the rest
of the world yeah so I want to end with
a personal question from my 88-year-old
aunt in Chicago uh I sent her a couple
months ago I sent her a video of Palmer
lucky and she called me very upset said
Katie I didn't know that I needed to be
worried about China too and I think
that's something that a lot of Americans
feel the world feels like it's on fire
it feels like another thing that they
have to worry about the work you're
doing what can you tell my 88-year-old
aunt and other Americans that would
assuage their fears and make them feel
like we're on the right course on the
China threat well don't be sending
Grandma Palmer I really shouldn't have I
regret it I sure 88y old an yeah I
shouldn't have done it I should have
done it Palmer since his
grandma uh I'll give you a hopeful uh
story um that happened this week uh in
my district and I think it gets to sort
of the generational she's part of the
greatest Generation the Boomers screwed
it up they continue to screw it up there
should be no Boomers allowed to run for
president ever uh although Biden's not a
boomer he's so old he's not a boomer
silent he's a member of the greatest
Generation or the silent gener
generation yeah he's older than the
People's Republic of China if you can
believe it
uh uh true fact check me fact check uh
okay so I we had a we had an event in my
district like six years ago I was a new
member of Congress we dedicated this
Fitness trail that a an army General who
passed away unexpectedly his widow
raised the money it's beautiful thing
this girl came up to me she was in
eighth grade at the time raised by her
grandparents Shauna Wisconsin rural area
and she's like you know what this event
has so inspired me and general con's
example inspired me like I want to go to
a service academy one day well on
Wednesday this week I'm going to get a
little choked up uh I'm not uh uh I got
to tell this young lady that she got an
appointment to the United States Naval
Academy just like incredible Young
American like man it's awesome so
there's still humans like that in
America Patriots Yeah he stole my answer
I would tell her to join me on my phone
calls telling young people they got
appointed to the service you read those
resumés you look at their achievements
and then you talk to them about why they
want to why they want to serve and it is
restorative for your sense of optimism
um and to tell to come knock doors with
me in my district and you find talking
to the average American there's a deep
reservoir of Common Sense and decency
that in aggregate gives me great hope
that uh America is a land of
possibilities and don't bet against us
yeah Congressman aen classus Gallagher
this was a lot of fun
[Applause]
said
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