The China Threat: Silicon Valley and the Great Uncoupling

Summary

In 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

00:00

🌐 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.

05:02

💥 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.

10:03

🇺🇸 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.

15:06

🇺🇸 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.

20:07

🤝 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.

25:08

🇺🇸 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.

Keywords

💡China threat

The central theme and concern discussed throughout the video is the potential security, economic, and ideological threat posed by China's growing influence and power. This refers to China's military buildup, especially in relation to Taiwan, as well as its technological advancements, economic policies, and the spread of its authoritarian ideology through platforms like TikTok. The congressmen warn that China's actions could lead to conflicts or undermine American values and global leadership.

💡Deterrence

Deterrence refers to the military and strategic posture adopted by the United States and its allies to discourage or prevent aggressive actions from adversaries like China. The congressmen express concerns that the current deterrence measures, particularly in the Indo-Pacific region, may not be sufficient to deter China from attempting to take Taiwan by force or engaging in other provocative actions. Strengthening deterrence through military investments and strategic positioning is seen as crucial.

💡Ideological warfare

Ideological warfare refers to the battle of ideas and values between the democratic, free-market ideology championed by the United States and the authoritarian, state-controlled ideology of China's Communist Party. The congressmen highlight the spread of Chinese propaganda and influence through platforms like TikTok as a form of ideological warfare, aiming to shape the worldview of younger generations in a way that runs counter to American values. Countering this ideological threat is seen as a priority.

💡Economic competition

The video discusses the economic rivalry and competition between the United States and China, particularly in areas like technology, manufacturing, and trade policies. The congressmen advocate for a more competitive stance towards China, including measures to restrict the flow of American capital and technology to Chinese companies, while also deepening economic partnerships with allies. Striking the right balance between competition and cooperation in the economic sphere is seen as crucial.

💡Semiconductors

Semiconductors, and the production of advanced chips, are highlighted as a critical area of strategic importance in the technological competition with China. The congressmen discuss the importance of onshoring semiconductor production, as well as the potential risks and consequences of Taiwan's role in the global semiconductor supply chain being disrupted by Chinese aggression. Securing semiconductor supply chains and maintaining a technological edge is seen as a national security priority.

💡Taiwan

Taiwan is a central focus in the discussion of the China threat, as the congressmen express grave concerns about the possibility of China attempting to take the island by force, either through an outright invasion or a blockade. Taiwan's status as a vibrant democracy and its strategic importance in the semiconductor industry make it a critical flashpoint in the broader U.S.-China rivalry. Defending Taiwan's sovereignty and preventing Chinese aggression towards the island is seen as a crucial test of American resolve and credibility.

💡Cybersecurity

Cybersecurity threats, particularly those emanating from state actors like China, are discussed as a major concern for critical infrastructure and national security. The congressmen highlight the need to harden targets like electoral systems, utilities, and public services against cyber attacks and data breaches. However, they express greater concern over the ideological influence of platforms like TikTok, which they view as a tool for China to shape the worldview of younger generations of Americans.

💡Immigration

While not the central focus, the congressmen touch upon the issue of immigration and its relationship to America's competitiveness and technological edge. They express support for streamlining legal immigration, particularly for high-skilled workers, as a means of attracting global talent and boosting America's innovative capabilities. However, they also acknowledge the politically divisive nature of immigration debates within the Republican Party, which has hindered policy reforms.

💡Bipartisanship

Despite their political differences, the congressmen acknowledge a broad bipartisan consensus on recognizing the threat posed by China and the need for a robust American response. However, they also highlight areas of disagreement, such as the prioritization of climate change issues, the prospect of high-level engagement with the Chinese Communist Party, and the specific tactics and policies to be adopted in the economic and technological spheres. Navigating these differences is seen as a challenge for effective policymaking.

💡Optimism

Amidst the grave concerns expressed about the China threat, the congressmen also inject notes of optimism and faith in America's ability to prevail in this great power competition. They point to the enduring strength of American values, the innovative spirit of the nation's youth, and the resilience of the American people as reasons for confidence. This optimism serves as a counterbalance to the dire warnings, reflecting a belief that the United States can overcome the challenges posed by China if it remains committed to its principles and takes decisive action.

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