The China Threat: Silicon Valley and the Great Uncoupling

a16z
4 Mar 202426:30

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

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.

Mindmap

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

play00:09

the China threat um and this is an

play00:11

audience that would know it well is a

play00:12

very broad topic uh spanning from an app

play00:14

that might be on some people's phones in

play00:16

the room called Tik Tok to Taiwan um

play00:19

what is the scope of the issue as you

play00:21

see it and what should we be most

play00:23

concerned about big question we'll start

play00:25

with you Congressman Gallagher uh well

play00:26

first of all thank you for having me

play00:27

thanks uh uh to all of uh you for being

play00:31

part of this I see a lot of friendly fa

play00:33

I can't really see but I think I see

play00:34

some friendly faces in the audence lot

play00:35

friendly faces and some enemies too I

play00:37

see a lot of enemies which is good it

play00:39

means I'm doing something right um I

play00:41

think to take your second question first

play00:43

the risk in simplest terms from China is

play00:48

is war right and we tend to Discount the

play00:51

possibility that xiin ping could do

play00:53

something as stupid as try to take

play00:56

Taiwan by force because it does look

play00:58

irrational from a West perspective but

play01:01

if the collapse of deterrence in Ukraine

play01:03

has taught us anything it's that

play01:04

particularly when you're dealing with

play01:05

autocratic systems who just don't have

play01:07

robust feedback loops they could do

play01:09

something that looks irrational from our

play01:11

perspective that we think is deterred or

play01:13

deter and yet from their perspective of

play01:15

preserving the regime makes sense and so

play01:19

my concern is that despite what's

play01:22

happening in Ukraine despite the fact

play01:24

that the system is blinking red across

play01:26

the world despite the erosion of the

play01:28

conventional balance of power

play01:29

particularly the indopacific we are

play01:32

still we still have not fielded a

play01:34

deterrence by denile posture that makes

play01:36

absolutely no sense and if you look at

play01:38

what just happened in Jordan right this

play01:40

is something that should have been

play01:41

obvious to anybody that watched the

play01:42

Iranian attack on the Saudi oil facility

play01:44

a few years ago thecake oil facility the

play01:47

Army can't do its one Jrock its one

play01:49

joint function which is defense for our

play01:52

expeditionary bases against missiles and

play01:54

drones like this we're on the wrong side

play01:56

of the cost curve look at all the SM

play01:58

sixs we've expended in the Red Sea right

play02:00

now we haven't moved to maximum

play02:02

production rates of long range Precision

play02:05

fire so beyond all the talk about

play02:07

decoupling and ideological Warfare and

play02:09

Tik Tock if we don't get the hard power

play02:12

side of the equation right we may

play02:14

stumble into war on someone else's terms

play02:16

and it's going to be horrific it will

play02:18

look the current it will make the

play02:20

current crises in the Middle East and

play02:22

Ukraine look like child's playing

play02:24

comparison other than that I'm an

play02:27

optimist Congressman aen class I'd love

play02:29

to hear your take on it yeah I

play02:30

appreciate the chance to be here and

play02:32

it's good to be here with the chairman

play02:33

of of the China select committee uh I

play02:36

think America is going to out compete

play02:38

China I think we're going to win this

play02:40

contest if we want to and those are the

play02:43

four words that I spend a lot of time

play02:45

thinking about if we want to because the

play02:48

competition between America and China is

play02:50

a competition of worldviews China views

play02:52

individuals as ponds of the state the

play02:55

United States was founded upon the

play02:56

Timeless ideal that individuals have

play02:58

inherent worth and value

play03:00

and those are mutually inconsistent ways

play03:03

of approaching governance of approaching

play03:04

economics of approaching diplomacy and

play03:07

and uh great power competition and we

play03:09

must win and we can if we want to and

play03:13

the reason I am concerned about if we

play03:14

want to is that we are seeing increasing

play03:17

uh antibodies against the free and open

play03:20

Society upon which the United States is

play03:22

premised we're seeing on the on the

play03:24

right this blood and soil nationalism

play03:26

obviously articulated by Donald Trump

play03:29

that is fundamentally about closing

play03:31

America off and we see on the hard

play03:35

left a rejection of Western society and

play03:39

what it represents from the

play03:40

enlightenment onwards and both of those

play03:43

are wrong there is much for us to be

play03:45

proud of in uh what western Society has

play03:48

produced and much of it has been

play03:50

crystallized in the US form of

play03:51

government and we should fight for it uh

play03:54

but we should also fight for it not as a

play03:56

blood and soil idea but as the American

play03:58

creed that

play04:00

uh every

play04:01

individual regardless of the

play04:02

circumstances of their birth should be

play04:04

free to pursue their aspirations in life

play04:07

yeah so one thing from the outside

play04:08

looking in it seems like there is

play04:10

bipartisan support uh agreement around

play04:13

how important this issue is I'm sure

play04:15

there's some sparring internally it

play04:16

would be great to understand where you

play04:18

two are in alignment where where there's

play04:20

consensus on the committee and then what

play04:21

are the the major points of disagreement

play04:26

yeah we're laughing because this morning

play04:29

uh there's a little bit of fist to cuffs

play04:30

on the committee I heard uh I'll let the

play04:33

chairman start though it's all good uh

play04:36

well I do think it gets to like maybe

play04:37

something like we are trying to do our

play04:40

committee's work amidst what is a very

play04:43

fractious uh political environment right

play04:45

and I I'm I have yet to meet sort of

play04:48

like the person who's enthusiastic about

play04:50

this Trump V Biden rematch and so there

play04:53

is like a a big black hole that is the

play04:56

2024 election sucking everything into to

play04:59

its wake and that is a challenge it's a

play05:01

challenge to get anything done in

play05:02

Congress uh on a good day I do think in

play05:06

the last year of our committee's work uh

play05:08

proves this that there is Broad

play05:11

agreement that on the nature of the

play05:13

threat uh that we must do something

play05:15

about it that we're not attacking it

play05:17

with a sense of urgency when it comes to

play05:20

um I think the sort of military aspect

play05:22

of the competition I actually think

play05:23

there's more agreement than disagreement

play05:26

um on the

play05:28

ideological uh aspect of the competition

play05:30

there's disagreement within the

play05:31

Republican party on to what what

play05:34

priority do you give ideological Warfare

play05:36

I give it a high priority largely

play05:38

because xiin ping uh seems to think it's

play05:40

important having studied the collapse of

play05:41

the Soviet Union he concluded that the

play05:43

main problem was insufficient commitment

play05:45

to to ideology and part of the reason we

play05:46

won the old cold Wars because Reagan was

play05:48

quite good at ideological Warfare but on

play05:50

the economic side I actually don't think

play05:52

it's like it's a clear Republicans have

play05:55

an approach Democrats have an approach

play05:58

there's weird Bedell

play06:00

uh and I think Jake and I would agree on

play06:02

the fact and he's actually one of the

play06:04

the loudest voices in his party for a

play06:06

pro correct wrong a prot trade agenda

play06:10

and though we had somewhat of a

play06:11

disagreement about whether to revoke

play06:13

permanent normal trade relations with

play06:15

China I think yes Jake thinks no I think

play06:18

we agree on the idea that as we adopt a

play06:20

more competitive economic relationship

play06:22

with China economically um we need to be

play06:26

enhancing intensifying our economic and

play06:28

Technologic Partnerships with the rest

play06:31

of the world and assume some intelligent

play06:32

risks and I do think the absence of a

play06:34

trade agenda uh is a huge Grand

play06:37

strategic gap for both parties right now

play06:40

if that makes sense just one I think the

play06:41

primary point of disagreement sometimes

play06:43

is on the relative prioritization of

play06:46

climate change in the relationship with

play06:47

China uh as well as the prospect uh of

play06:51

Engagement with the CCP at the highest

play06:53

levels what that might yield I'm more

play06:55

skeptical of that than some of my my my

play06:57

Democratic uh friends I agree that it's

play07:00

not always Democrat versus Republican

play07:02

where there's disagreements and I think

play07:04

the the sort of uh productive desent

play07:07

that I try to add into the committee uh

play07:10

is we spend a lot of time focusing

play07:13

on uh competition with China that can be

play07:17

Zero Sum it's about export controls it

play07:19

is about restrictions on licensing it is

play07:22

about tariffs obviously it is about uh

play07:26

uh playing keep away with intellectual

play07:28

property

play07:29

and there is a place for that and it's

play07:31

important but ultimately I think in the

play07:33

Sino American competition 90% of the

play07:36

questions that matter are about America

play07:37

not about China China's got 1.4 billion

play07:40

people they are a highly motivated

play07:44

well-educated Workforce they're going to

play07:45

create a bunch of impressive stuff and

play07:47

the questions that I find most impactful

play07:49

for our future are about are we

play07:51

investing in basic research and

play07:53

development are we in are we trying to

play07:55

attract uh High skilled and frankly low

play07:57

skilled immigration to the US economy

play07:59

which keep Keeps Us Dynamic do we have

play08:01

rule of law and contract enforcement are

play08:03

we investing in quality infrastructure

play08:05

like the boring stuff that we should be

play08:07

focused on before Washington gets

play08:08

distracted by like Quantum strategy and

play08:11

my contention is we here in Washington

play08:13

we're not doing a good enough job in the

play08:15

boring stuff we should take care of that

play08:16

we should be asking ourselves hey in the

play08:20

latest pie of tests program for

play08:22

international student assessment

play08:23

American 15-year-olds went backwards on

play08:25

math scores that is what should be

play08:28

animating us cuz if American

play08:29

15-year-olds can't do math we're not out

play08:31

of competing anybody I don't care what

play08:33

our what our semiconductor strategy is

play08:36

yeah yeah yeah well speaking of

play08:37

semiconductor strategy I mean that is

play08:38

one thing that is top of mind for this

play08:40

audience for our Founders chip

play08:41

production you know it it is it is

play08:43

something that if it is catastrophically

play08:44

disrupted um I would love to hear how

play08:46

you're thinking about worst case

play08:48

scenario you know how how you even think

play08:50

about how to respond if something like

play08:52

that were to come to pass specifically

play08:54

with Taiwan well I guess one of the

play08:56

reasons though it's not the only reason

play08:58

uh that Taiwan is important because if

play09:01

there was even a blockade scenario that

play09:02

played out it would be profoundly

play09:04

disruptive to the global economy and

play09:05

you're talking trillions of dollars lost

play09:08

in even the low-end modeling for

play09:09

something like this and then if they

play09:10

were somehow able to take Taiwan which

play09:12

admittedly is a very hard problem just

play09:14

from a a pure like invading an island

play09:17

and doing an amphibious assault is a

play09:19

hard problem Jake's a marine I'm a

play09:21

marine this is something that we are uh

play09:23

we are we are raised to to understand

play09:26

Zack Shore is a marine I think although

play09:28

he was mostly drinking the entire time

play09:31

with me we were roommates in Carl's Bad

play09:33

luckily Facebook had just started so

play09:36

none of it's online so just sneaked

play09:38

under the radar

play09:40

yeah good BL it's it's mutually assured

play09:42

destruction bro so you launch your

play09:44

missiles I'm launching mine um uh so uh

play09:50

and I also think maybe the conceptual

play09:52

mistake we made with the chips act uh

play09:55

and I know there's disagreement about

play09:56

the chips Act is that um we need by

play10:00

onshoring onshoring production of

play10:03

semiconductors to America would somehow

play10:05

enhance deterrence but I wonder if the

play10:07

opposite could be true right the more we

play10:09

onshore the less relevant Taiwan is and

play10:11

therefore the more attractive of a

play10:13

Target is or just as a question of

play10:15

investment would it have been better to

play10:17

fund a ships act in order to make an

play10:20

invasion uh impossible if not highly

play10:23

unlikely because even if they don't

play10:25

establish a logement in Invasion it's

play10:28

going to massively muck up the entire

play10:29

global economy but the economic reason

play10:31

is not the only reason Taiwan is

play10:33

important if Taiwan Falls it will make

play10:35

our ability to fulfill our treaty

play10:36

commitments with Japan and the

play10:37

Philippines Impossible Las Vegas rules

play10:40

do not apply what happens there will not

play10:42

stay there and though we've had a brutal

play10:43

and this is the third reason debate

play10:45

about the nature and role of democracy

play10:48

promotion in American foreign policy

play10:50

there's something different in my mind

play10:51

about fending an existing vibrant

play10:54

democracy from an authoritarian threat

play10:57

that if America doesn't stand for that

play10:59

I'm just not sure what we stand for so

play11:01

we should also stand for Ukraine agree

play11:04

yeah yeah let's do

play11:08

it tell your speaker I will stand right

play11:11

now for you so one thing that's that's

play11:14

also on the agenda for this week and I

play11:16

know we're jumping around a lot but you

play11:17

all cover such breth on the committee um

play11:19

is you're holding the CCC cyber threat

play11:21

um to the Homeland and National Security

play11:24

um uh hearing tomorrow most citizens

play11:27

when they think about cyber threats

play11:28

until recently they didn't think about

play11:29

attacks on critical infrastructure

play11:31

things that could take out the power

play11:32

grid by nation states what what you've

play11:35

learned about these threats what how do

play11:37

you assure the American people that

play11:39

things are going to be all right or or

play11:40

is it actually a a bad scenario that we

play11:42

should be very concerned about as

play11:44

Citizens uh it's a it's a legitimate

play11:47

threat and we need to harden our targets

play11:49

electoral systems public water supplies

play11:52

um utilities they've made big strides in

play11:55

the last five years and it's been a

play11:56

bipartisan issue under under uh

play11:59

cisa and Homeland Security to make

play12:01

themselves harder targets a source of

play12:03

good jobs for young people as well

play12:04

Massachusetts has created a lot of good

play12:05

cyber security certificates around this

play12:07

area but actually the the sort of

play12:10

digital threat I'm by far the most

play12:12

concerned about is is Tik Tok we are

play12:14

seeding the ideological ground to our

play12:17

adversary to inculcate the next

play12:19

generation of Americans into a worldview

play12:21

that uh is really I think antithetical

play12:24

to a lot of what we stand for and the

play12:26

chairman has been articulate about this

play12:28

and in the Free Press which I read your

play12:30

essay on that oh wow thank you uh we

play12:32

have I think I read all your stuff too I

play12:35

think we've got to force a sail I just

play12:36

don't think we would never have allowed

play12:38

CBS ABC NBC to be owned by the Soviet

play12:40

Union in the 1960s and that is I think

play12:44

if anything understating the degree of

play12:45

influence that we are seing right now

play12:47

and that's not a speech issue you can

play12:49

post whatever you want it's a question

play12:51

of reach just because we honor and

play12:53

respect the First Amendment does not

play12:54

mean that we have to allow our biggest

play12:56

adversary to control on a black Black

play12:59

Box an algorithm that influences

play13:01

hundreds of millions of people that is

play13:02

not free speech that is the control over

play13:05

reach yeah and go ahead I just want to

play13:07

foot stomp that and say yes there's a

play13:09

concern with Tik Tok that it can track

play13:11

your location and uh your your browser

play13:14

history that's a huge problem for Zach

play13:15

in particular uh uh but that's not the

play13:19

primary threat and Jake I think said it

play13:22

well I mean to to allow a company uh

play13:24

that is owned by bite dance which is

play13:26

beholden to the Chinese Communist party

play13:27

to be the dominant new platform for the

play13:30

next generation of Americans I think I

play13:32

think borders on on National Suicide and

play13:34

by the way if you are invested in bite

play13:36

dance I would assume you want Tik Tok to

play13:37

go public in America uh that's not going

play13:40

to happen under the current ownership

play13:41

structure so it is in your interest for

play13:43

there to be a complete separation where

play13:46

none of the plumbing is connected and an

play13:47

American company controls uh Tik Tock us

play13:51

and Doan does Doan things and there's

play13:53

control of the algorithm so and just one

play13:56

final note on Cyber I do think having

play13:58

cheered the cyber space salarium

play13:59

commission beyond all the fancy things

play14:01

we can do like giving siza the ability

play14:03

to do threat hunting on dog networks I

play14:05

think it all just comes down to human

play14:07

beings right our biggest threats are

play14:09

human threats a contractor doing

play14:10

something they shouldn't do and our

play14:11

successes will be a function of our

play14:14

ability to get the best and the

play14:15

brightest in cyber to work with DOD and

play14:19

the federal government yeah now speaking

play14:21

of Tik Tok I mean many are concerned

play14:23

about the way that the Tech Community

play14:24

engaged with China in previous decades

play14:27

how it engages now what are your

play14:28

thoughts about the right way that

play14:30

technologists that company should be

play14:31

engaging with China on on a host of

play14:33

issues listen I I don't think anyone

play14:35

expects you know andreon or some tech

play14:38

company to be the state department but I

play14:41

mean if if social justice or ESG is a

play14:44

big deal for you and your employees I

play14:46

just would ask you to recognize that

play14:47

there's no worse ESG actor and no

play14:51

greater offender of social justice

play14:53

issues than the Chinese Communist party

play14:55

they suck on the E the S and they really

play14:57

suck on the G

play14:59

uh the the G stands for anything it to

play15:02

stand for genocide so speak up uh we're

play15:06

asking American companies to act like

play15:07

American

play15:11

companies I mean listen Jake Jake

play15:13

mentioned an issue that I I think you

play15:15

think there's no agreement on

play15:16

immigration and listen immigration

play15:18

politics speaking of things that suck

play15:19

they really suck uh but I wonder if our

play15:22

framework is actually the same right

play15:24

like make it difficult if not impossible

play15:26

for people to come here illegally but

play15:28

when it comes to Legal immigration

play15:29

modernize the system where it could

play15:31

scale up or down depending on the needs

play15:33

of our economy and then when it comes to

play15:34

high high skilled immigration and you

play15:37

want all these smart people like we

play15:38

should actively be on a recruiting

play15:40

Mission around the world to scoop up the

play15:42

best and the bright I'm going

play15:44

to guys don't don't applaud that from

play15:47

him because I'm going to throw a red

play15:49

flag on that play because we do have a

play15:51

republican talking about immigration

play15:53

reform when so you get speaker Johnson I

play15:56

mean well get speaker Johnson and MIT

play15:58

conell saying the quiet pout are loud

play16:00

here which is that they'd rather

play16:01

campaign on on immigration than govern

play16:02

on it and you know that's not you Mike

play16:05

saying that but at a certain point the

play16:06

Republican party is going to own the

play16:08

fact that for 20 years they've been

play16:10

telling the American people that

play16:11

immigration is broken we have in good

play16:13

faith a bill to start fixing it and the

play16:16

speaker has said it's that on

play16:18

arrival do we have the bill I'm actually

play16:21

not this isn't like a rebuttal I don't I

play16:23

and people keep asking me about the the

play16:25

deal I just don't know what the deal is

play16:26

I haven't seen I was on Fox news on

play16:27

Saturday and as far as Fox News is

play16:29

concerned it is anathema yeah and it's

play16:32

because they CH says we can't vote on it

play16:35

you got Senator McConnell killing it

play16:37

you've got speaker Johnson killing it

play16:39

damn you llin Murdoch we we we have we

play16:42

have overlap on the policy but on the

play16:44

politics I I just I do feel like one

play16:46

side is serious about the other side has

play16:47

not been as serious about it yeah well

play16:48

moving to a more hopeful note um you

play16:50

know 10 years ago 10 years ago um you

play16:54

know when I first moved to Silicon

play16:55

Valley no one was talking about China I

play16:58

would actually say even 5 years ago no

play16:59

one was talking about China I would love

play17:01

to hear from your perspective you know

play17:02

we we have a number of great Founders

play17:04

where that is the focal point of their

play17:05

business now it is top of mind for

play17:07

engineers and for Founders in Silicon

play17:09

Valley how have you experienced that

play17:11

shift with Silicon Valley and do you

play17:12

think it's making real progress in in

play17:13

the eyes of what you're what you're

play17:14

building towards as

play17:16

well I'm might actually put that

play17:18

question back on you I mean you're the

play17:19

one running the American dynamism

play17:21

portfolio and and I I would imagine that

play17:25

the Spectre of China has galvanized some

play17:27

of the entrepreneurs that you work with

play17:28

to want to work with the United States

play17:30

government which is not a particularly

play17:32

fun customer to have to deal with but

play17:33

they've said if we're serious about

play17:35

being in the 21st century what we became

play17:38

in the 20th 20th century the the the

play17:41

guarantor of the Pax Americana and The

play17:43

Shining Light uh we have to do housing

play17:45

we have to do military we we got to do

play17:47

utilities we got to do energy all the

play17:49

stuff that I think in the

play17:51

first uh boom out of Silicon Valley was

play17:54

really overlooked uh so I think that's

play17:57

inspiring and I would just encourage

play17:58

everyone here to uh to keep pushing the

play18:01

US government to be a better customer

play18:03

and I say this all the time to the

play18:05

Department of Defense we do not need the

play18:07

Department of Defense to be a venture

play18:09

capitalist we don't need it to be an

play18:11

equities investor we need the Department

play18:12

of Defense to be a good reliable

play18:15

expeditious customer and until they get

play18:17

that right I don't think we're going to

play18:18

fully realize the the the possibilities

play18:20

of your

play18:24

portfolio yeah I'll just I'll just

play18:26

quickly here I'm actually cautiously

play18:27

optimistic here and it's not just cuz we

play18:28

now have I've always wanted to do like a

play18:30

time-lapse photo of the like the banner

play18:33

of sponsors at the Reagan National

play18:34

Defense Forum and I actually think it

play18:36

tells like a good story about new and

play18:38

interesting companies um who want to

play18:40

work with DOD definely or at least want

play18:42

to hang out with me for two days uh at

play18:44

Reagan um uh we've had outspoken voices

play18:47

obviously who I think are great like Dr

play18:49

carpet palen here like Palmer lucky uh

play18:52

who's bu he here is he wearing shoes uh

play18:54

not this year it was here last year

play18:56

Andre um but I think there's more people

play18:58

that want to get in that game and want

play18:59

to try and break down the barriers to

play19:01

working with DOD and it is ultimately

play19:03

however to Jake's Point going to take

play19:05

Dodd actually making big bets on a few

play19:09

companies that are non primes because we

play19:11

just keep admiring the Valley of Death

play19:13

problem and that that's the sort of the

play19:16

less hopeful side of the equation if you

play19:18

go to Reagan almost every year the

play19:20

secretary comes it doesn't matter if it

play19:22

was madis or now Austin it kind of gives

play19:24

the same speech about we're GNA cross

play19:26

the valley of death and this and that

play19:27

and that's where we just need to

play19:29

appropriate money to DOD right we're

play19:32

talking about a supplemental right now

play19:33

what are we supplementing we haven't

play19:34

actually passed a DOD appropriation and

play19:37

then we have to force DOD to make big

play19:39

bets on things and then we in Congress

play19:42

have to make sure that if some of those

play19:43

bets don't work out which they all won't

play19:46

that we won't just rake them over the

play19:48

coals we need to celebrate original

play19:51

mistakes while vilifying and demonizing

play19:54

making the same mistakes over and over

play19:55

again so this is a question

play20:00

this is a question that's going to allow

play20:01

our our audience to dream but if there

play20:03

were a president aen classus or

play20:05

president Gallagher how would that

play20:07

Administration address the relationship

play20:08

with China and Technology differently

play20:10

would it be different what would you T

play20:11

do tactically well Jake and I are here

play20:13

today to

play20:14

[Laughter]

play20:19

announce I would love to be president of

play20:22

an obscure liberal arts university

play20:25

actually the politics of that would be

play20:27

to be brutal no you would

play20:29

yeah will you want to tackle that first

play20:31

yeah uh if I if I were president how

play20:33

would I tackle the US China

play20:34

technological relation is there

play20:35

something tactical you would do on day

play20:37

one so and this is I think a a a point

play20:41

of I think uh a genuine maybe

play20:43

intellectual disagreement here Jake

play20:45

Sullivan has talked about a a a small

play20:48

garden with a high fence and this idea

play20:49

that there are some things that we're

play20:50

going to protect with all measures

play20:53

available um I would be I would be a

play20:56

little bit tougher on how he described

play20:58

that Garden than I think uh the current

play21:00

approach is because I worry that it

play21:02

becomes really an excuse for uh for

play21:07

lobbying frankly where every industry

play21:08

comes and tells us how strategic they

play21:10

are and ultimately it actually makes our

play21:13

economy more sclerotic and less Dynamic

play21:16

I would I'm I'm persuaded that

play21:18

cuttingedge semiconductors belong in

play21:20

that Garden I have not been persuaded of

play21:22

basically anything else I believe in in

play21:26

markets that have Global access

play21:28

particularly for high R&D High fixed

play21:30

cost industries that are so important

play21:31

for our future utilities biotech uh

play21:34

semiconductors Etc and so um I I really

play21:38

I want to see the maintenance and

play21:40

expansion of the US operating system as

play21:43

a global commercial entity so I would

play21:46

and I actually do think this is and I

play21:47

Jake's uh descent on some of our our uh

play21:51

econ recommendations was was productive

play21:53

I I think it made the final product

play21:55

better and I respect his position I

play21:57

would cut off the flow of us Capital

play22:00

both passive and active public and

play22:01

private to a greater number of sectors I

play22:04

think a sector specific set of guard

play22:06

rails is actually much easier to

play22:08

implement than the multi-list

play22:10

whack-a-mole we currently play right now

play22:13

which is a total shambles and so we have

play22:15

Trill billions probably hundreds of

play22:16

billions of dollars American dollars

play22:19

that are flowing into Chinese technology

play22:21

and Military companies that are building

play22:23

things like aircraft carriers artillery

play22:24

shells fighter jets things that are

play22:26

designed to kill Americans in future

play22:28

conflict and I think that's perverse I

play22:30

think we should close the loopholes for

play22:31

licensing exemptions like right now uh

play22:34

Huawei is off the mat it's coming back

play22:36

with smick semiconductors in part

play22:38

because they still have access to us

play22:40

technology right we're funding our own

play22:42

destruction to me uh it's crazy I would

play22:45

tighten up our cfus loopholes that

play22:46

people can't buy land for example near

play22:48

military bases or critical

play22:49

infrastructure but and maybe this is

play22:51

where we agree on the positive side I've

play22:54

long argued for it we need a a gold

play22:56

standard free trade agreement with the

play22:57

UK post brexit that could have a docking

play22:59

provision that other countries could

play23:01

join when it comes to Aus I give the

play23:03

Biden Administration a ton of credit for

play23:04

Aus but in some ways the most important

play23:07

part of aus is not the pillar one

play23:08

nuclear sub thing which we could screw

play23:10

that up we should not screw that up

play23:12

that's a big deal we need to build more

play23:13

subs 2.5 Virginia a year let's do that

play23:16

uh pillar two on the technology side we

play23:18

still have all these outdated barriers

play23:20

to cooperation with the Aussies and the

play23:22

Brits our closest allies who doesn't

play23:25

love the Aussies and the Brits because

play23:27

of itar regulation we can't share our

play23:30

best technology and people that's a huge

play23:32

own goal I would be for a digital Trade

play23:34

Agreement like we have ipf which is our

play23:37

only trade thing in indcom is not a real

play23:40

thing and it's less of a real thing now

play23:42

that they've neutered ipf and it was

play23:43

neutered to start with so I think again

play23:45

to get to the basic balance I would

play23:47

adopt a more restrictive framework with

play23:49

respect to China and our bilateral

play23:50

relationship but in return and

play23:52

simultaneously I would deepen our

play23:54

engagement with other countries and

play23:55

assume some intelligent risk in the rest

play23:57

of the world yeah so I want to end with

play23:59

a personal question from my 88-year-old

play24:01

aunt in Chicago uh I sent her a couple

play24:04

months ago I sent her a video of Palmer

play24:06

lucky and she called me very upset said

play24:09

Katie I didn't know that I needed to be

play24:11

worried about China too and I think

play24:14

that's something that a lot of Americans

play24:15

feel the world feels like it's on fire

play24:17

it feels like another thing that they

play24:18

have to worry about the work you're

play24:20

doing what can you tell my 88-year-old

play24:21

aunt and other Americans that would

play24:23

assuage their fears and make them feel

play24:25

like we're on the right course on the

play24:26

China threat well don't be sending

play24:27

Grandma Palmer I really shouldn't have I

play24:29

regret it I sure 88y old an yeah I

play24:32

shouldn't have done it I should have

play24:33

done it Palmer since his

play24:36

grandma uh I'll give you a hopeful uh

play24:38

story um that happened this week uh in

play24:41

my district and I think it gets to sort

play24:42

of the generational she's part of the

play24:44

greatest Generation the Boomers screwed

play24:46

it up they continue to screw it up there

play24:47

should be no Boomers allowed to run for

play24:49

president ever uh although Biden's not a

play24:51

boomer he's so old he's not a boomer

play24:54

silent he's a member of the greatest

play24:56

Generation or the silent gener

play24:57

generation yeah he's older than the

play24:59

People's Republic of China if you can

play25:00

believe it

play25:01

uh uh true fact check me fact check uh

play25:07

okay so I we had a we had an event in my

play25:09

district like six years ago I was a new

play25:11

member of Congress we dedicated this

play25:12

Fitness trail that a an army General who

play25:15

passed away unexpectedly his widow

play25:16

raised the money it's beautiful thing

play25:17

this girl came up to me she was in

play25:18

eighth grade at the time raised by her

play25:20

grandparents Shauna Wisconsin rural area

play25:23

and she's like you know what this event

play25:25

has so inspired me and general con's

play25:27

example inspired me like I want to go to

play25:28

a service academy one day well on

play25:30

Wednesday this week I'm going to get a

play25:31

little choked up uh I'm not uh uh I got

play25:34

to tell this young lady that she got an

play25:36

appointment to the United States Naval

play25:37

Academy just like incredible Young

play25:40

American like man it's awesome so

play25:44

there's still humans like that in

play25:46

America Patriots Yeah he stole my answer

play25:48

I would tell her to join me on my phone

play25:50

calls telling young people they got

play25:51

appointed to the service you read those

play25:54

resumés you look at their achievements

play25:56

and then you talk to them about why they

play25:58

want to why they want to serve and it is

play25:59

restorative for your sense of optimism

play26:02

um and to tell to come knock doors with

play26:04

me in my district and you find talking

play26:06

to the average American there's a deep

play26:09

reservoir of Common Sense and decency

play26:11

that in aggregate gives me great hope

play26:14

that uh America is a land of

play26:15

possibilities and don't bet against us

play26:17

yeah Congressman aen classus Gallagher

play26:19

this was a lot of fun

play26:21

[Applause]

play26:26

said

Rate This

5.0 / 5 (0 votes)

Related Tags
China ThreatNational SecurityTechnology RivalryIdeological WarfareInternational RelationsTrade PolicyGeopoliticsBipartisan DiscourseGlobalizationStrategic Competition