Bloomberg Audio Studios, podcasts, radio news.

Bloomberg Audio Studios, podcasts, radio news.

We all know what happened in San Francisco with APEC, and there seemed to be a thaw. She didn ping and Joe Biden obviously met. There was some perceived deliverables on fentanyl on Milton Mill dialogue, but at least they met face to face.

We all know what happened in San Francisco with APEC, and there seemed to be a thaw. She didn ping and Joe Biden obviously met. There was some perceived deliverables on fentanyl on Milton Mill dialogue, but at least they met face to face.

Where are we four months after that? Is the thaw sustainable?

Where are we four months after that? Is the thaw sustainable?

You know, we think that San Francisco was an important and concrete meeting and productive meeting because it served to in a relative sense, stabilize the relationship. Before San Francisco, we didn't have the deep connections at at the cabinet level that we certainly do now, and we've achieved some specific gains, first on fentanyl leading cause of death in the United States Americans eighteen to forty five. We've seen the Chinese help us, the government here, help our drug enforcement agency.

You know, we think that San Francisco was an important and concrete meeting and productive meeting because it served to in a relative sense, stabilize the relationship. Before San Francisco, we didn't have the deep connections at at the cabinet level that we certainly do now, and we've achieved some specific gains, first on fentanyl leading cause of death in the United States Americans eighteen to forty five. We've seen the Chinese help us, the government here, help our drug enforcement agency.

So it has happened. You had a working group meeting already.

So it has happened. You had a working group meeting already.

Oh, yes, we've had many meetings and we've been at to have been trying to work with the Chinese to cut down the flow of precursor chemicals from black market firms here to the drug cartels.

Oh, yes, we've had many meetings and we've been at to have been trying to work with the Chinese to cut down the flow of precursor chemicals from black market firms here to the drug cartels.

But they've never acknowledged that that was coming from here. Have they acknowledged that?

But they've never acknowledged that that was coming from here. Have they acknowledged that?

Well, you know, we had an important White House led delegation here at the end of January. We spent a lot of time with the Minister of Public Security Wong shi Ohang. Secretary Alejandro Mayorkas had a meeting in Vienna. So we are working on fentanyl and trying to reduce the threat of fentanyl by cooperating with China.

Well, you know, we had an important White House led delegation here at the end of January. We spent a lot of time with the Minister of Public Security Wong shi Ohang. Secretary Alejandro Mayorkas had a meeting in Vienna. So we are working on fentanyl and trying to reduce the threat of fentanyl by cooperating with China.

Number one. Number two.

Number one. Number two.

You know, we didn't have any significant communication between our two militaries for a year and a half. After the visit of Speaker Nancy Pelosi to Taiwan, we're beginning.

You know, we didn't have any significant communication between our two militaries for a year and a half. After the visit of Speaker Nancy Pelosi to Taiwan, we're beginning.

To have those contacts now. We've got to do a lot more.

To have those contacts now. We've got to do a lot more.

Third, the President and President Chijinping agreed that we should have the beginnings of a dialogue between the two governments on the risks associated with artificial intelligence. We're going to do that. It's ahead of us, but it's very important. And the fourth agreement I think is really fundamental. COVID separated are two people's students, tourists, business people. We need to get our people meeting again.

Third, the President and President Chijinping agreed that we should have the beginnings of a dialogue between the two governments on the risks associated with artificial intelligence. We're going to do that. It's ahead of us, but it's very important. And the fourth agreement I think is really fundamental. COVID separated are two people's students, tourists, business people. We need to get our people meeting again.

Well, aside from the moral hazards of ai there's more pressing issues with AI, and that's the curbs on advanced semiconductors, quantum computing and others that seems to be at least from Commerce Department and other sources that we've heard from Washington, potentially is going to get a the list is going to get longer on the number of items that are going to be under the export controls. We heard from Wange, the Foreign minister here, he was quite angry, I guess you could say at the National People's Congress on the sidelines of that essentially saying they were bewildering level of trade curbs, unfathomable, absurdity.

Well, aside from the moral hazards of ai there's more pressing issues with AI, and that's the curbs on advanced semiconductors, quantum computing and others that seems to be at least from Commerce Department and other sources that we've heard from Washington, potentially is going to get a the list is going to get longer on the number of items that are going to be under the export controls. We heard from Wange, the Foreign minister here, he was quite angry, I guess you could say at the National People's Congress on the sidelines of that essentially saying they were bewildering level of trade curbs, unfathomable, absurdity.

What's your response to Wangy?

What's your response to Wangy?

My response is this, every country has a duty and responsibility to protect its national security, and what the President has done over the last year and a half is to make it impossible for sensitive American technology, advanced semiconductors for AI purposes, to be sold to China because we know it will happen. We know that with the PLA, the People's Liberation Army will take advantage of that technology to strengthen itself at the expense of the American military. We're not going to do that. We're not going to compromise on national security, and we're not going to negotiate.

My response is this, every country has a duty and responsibility to protect its national security, and what the President has done over the last year and a half is to make it impossible for sensitive American technology, advanced semiconductors for AI purposes, to be sold to China because we know it will happen. We know that with the PLA, the People's Liberation Army will take advantage of that technology to strengthen itself at the expense of the American military. We're not going to do that. We're not going to compromise on national security, and we're not going to negotiate.

And you can.

And you can.

Bet that the government here in Beijing is taking similar measures. They have not allowed for most of the last twenty years the export of core sensitive national security applied Chinese technology to the United States. And so every government, and certainly our government, has a right to take these decisive steps, and that's.

Bet that the government here in Beijing is taking similar measures. They have not allowed for most of the last twenty years the export of core sensitive national security applied Chinese technology to the United States. And so every government, and certainly our government, has a right to take these decisive steps, and that's.

What we're doing.

What we're doing.

We've heard the terminology that essentially these are high walls but small garden as far as the number of products that are on the export curb list, but again it seems to be widening. If these are the industries of the future, potentially it's going to widen and broaden. We're also hearing that the Biden administration wants to and is exerting pressure on allies like the Netherlands, like Japan, like Germany, like South Korea to further the curbs of other products into China. How does that not expand that pressure and actually bifurcate the relationship further.

We've heard the terminology that essentially these are high walls but small garden as far as the number of products that are on the export curb list, but again it seems to be widening. If these are the industries of the future, potentially it's going to widen and broaden. We're also hearing that the Biden administration wants to and is exerting pressure on allies like the Netherlands, like Japan, like Germany, like South Korea to further the curbs of other products into China. How does that not expand that pressure and actually bifurcate the relationship further.

We've been very clear that we adhere to a small yard high fence scenario, meaning these are targeted actions. We have the prohibition on the sale of advanced semiconductors we have the President's Executive Order of August two thousand and three that regulates a investment by American companies in the AI sector. Here, these are common sense actions by the United States. Any American government would have to take this action given the competition we have underway in the military sphere between the People's Liberation Army and the United States. And I don't think there's an American alive who would say that we should sell advanced technology to the PLA.

We've been very clear that we adhere to a small yard high fence scenario, meaning these are targeted actions. We have the prohibition on the sale of advanced semiconductors we have the President's Executive Order of August two thousand and three that regulates a investment by American companies in the AI sector. Here, these are common sense actions by the United States. Any American government would have to take this action given the competition we have underway in the military sphere between the People's Liberation Army and the United States. And I don't think there's an American alive who would say that we should sell advanced technology to the PLA.

So the President's Actor of.

So the President's Actor of.

The National Defense here, and as I say, we're not going to nego shade or a compromise on this. And these are the actions that a government has to take to protect in the twenty first century, in an age when technology is at the heart of international politics, some of it has to be regulated.

The National Defense here, and as I say, we're not going to nego shade or a compromise on this. And these are the actions that a government has to take to protect in the twenty first century, in an age when technology is at the heart of international politics, some of it has to be regulated.

How much of a national security thread is TikTok?

How much of a national security thread is TikTok?

Well, you know, I think you know, the White House has spoken to this, The President has spoken to it, and I think Jake Sullivan asked the right questions when he spoke to it this week at the White House. He said, do we want an American company or a Chinese company to own this very important technology TikTok? Do we want an American company to have access to the data of millions of Americans or a Chinese company.

Well, you know, I think you know, the White House has spoken to this, The President has spoken to it, and I think Jake Sullivan asked the right questions when he spoke to it this week at the White House. He said, do we want an American company or a Chinese company to own this very important technology TikTok? Do we want an American company to have access to the data of millions of Americans or a Chinese company.

But where do we draw the line?

But where do we draw the line?

And the answers to both questions are obvious when it comes to TikTok, But where.

And the answers to both questions are obvious when it comes to TikTok, But where.

Do you draw the line?

Do you draw the line?

Because it could extend to evs, it could extend to any other potential app that would come into the US market.

Because it could extend to evs, it could extend to any other potential app that would come into the US market.

I can tell you that over the last several years, we have kept to a narrow band restricting a narrow band of ten technologies that are at the heart of our national security, that are critical of the national security. And we believe that what we call de risking is a sensible in fact, it's a necessary policy of the United States. One of the lessons of the pandemic is that we have to alter our supply chain on certain critical materials and critical minerals so that we control them back home or they're close to home. We don't want to be overly dependent on China for technologies that we must have to defend our borders and defend our country.

I can tell you that over the last several years, we have kept to a narrow band restricting a narrow band of ten technologies that are at the heart of our national security, that are critical of the national security. And we believe that what we call de risking is a sensible in fact, it's a necessary policy of the United States. One of the lessons of the pandemic is that we have to alter our supply chain on certain critical materials and critical minerals so that we control them back home or they're close to home. We don't want to be overly dependent on China for technologies that we must have to defend our borders and defend our country.

How worried or concern should the United States be about what we heard again and again and again in the National People's Congress, and that is the unleashing of new productive forces. Obviously, they need to do that to build out their own AI capabilities, their own advanced chips, and they're going to throw a lot of money, state back money to this.

How worried or concern should the United States be about what we heard again and again and again in the National People's Congress, and that is the unleashing of new productive forces. Obviously, they need to do that to build out their own AI capabilities, their own advanced chips, and they're going to throw a lot of money, state back money to this.

How much of a concern will that ultimately be.

How much of a concern will that ultimately be.

No, I think there's a growing concern around the world that if part of what the govern here tries to do to deal with its own internal economic problems is to ramp up manufacturing and export that excess production at artificially low prices or dumping to the rest of the world, whether it's Europe on EVS, whether it's the United States, whether it's Japan and South Korea. That's going to royal and disturb and complicate global trade. And we have been very clear about this. I gave a speech just two weeks ago warning about the problems of excess capacity. Our Treasury Department has worn about the same problem.

No, I think there's a growing concern around the world that if part of what the govern here tries to do to deal with its own internal economic problems is to ramp up manufacturing and export that excess production at artificially low prices or dumping to the rest of the world, whether it's Europe on EVS, whether it's the United States, whether it's Japan and South Korea. That's going to royal and disturb and complicate global trade. And we have been very clear about this. I gave a speech just two weeks ago warning about the problems of excess capacity. Our Treasury Department has worn about the same problem.

You get out and about how bad is the Chinese economy from your perspective.

You get out and about how bad is the Chinese economy from your perspective.

Well, I think it's clear that if you look at the official reports of the government and you look at the some of the projections for economic performance over the next couple of years, most economists would say that the economy here will slow down at some point that the era, a four decade era of high single digit growth is over.

Well, I think it's clear that if you look at the official reports of the government and you look at the some of the projections for economic performance over the next couple of years, most economists would say that the economy here will slow down at some point that the era, a four decade era of high single digit growth is over.

The number of structural problems they've got to deal with.

The number of structural problems they've got to deal with.

These aren't for the United States to decide. They're for the government of China to decide. But that was obviously the key issue at the double session of the parliamentally long way that took place here in Beishing over the last two weeks.

These aren't for the United States to decide. They're for the government of China to decide. But that was obviously the key issue at the double session of the parliamentally long way that took place here in Beishing over the last two weeks.

Yeah, I was definitely there. I also talked to a lot of businesses.

Yeah, I was definitely there. I also talked to a lot of businesses.

And we all know about the FDI numbers, foreign direct investment down to the lowest gain since nineteen ninety three. There is hesitation not only because of the economy is weak, but also because of the myriad of different national security and the opacity of such policy. Especially coming out of the National People's Congress. We didn't get a lot of clarity on policy. We do know, and you were in that sixty minutes interview where you did talk about US companies such as Bain and Company, Mints and others who have seen raids and they've seen arrests of US citizens. Can you elaborate on the threat and the pall that has been cast over the investment community and doing business Americans doing business in China at this time.

And we all know about the FDI numbers, foreign direct investment down to the lowest gain since nineteen ninety three. There is hesitation not only because of the economy is weak, but also because of the myriad of different national security and the opacity of such policy. Especially coming out of the National People's Congress. We didn't get a lot of clarity on policy. We do know, and you were in that sixty minutes interview where you did talk about US companies such as Bain and Company, Mints and others who have seen raids and they've seen arrests of US citizens. Can you elaborate on the threat and the pall that has been cast over the investment community and doing business Americans doing business in China at this time.

I think this is a question central to the US China relationship for the next year and the year beyond. We have a five hundred and seventy five billion dollars two way trade relationship. China's the third largest trade partner of the United States. There are thousands of American companies doing business here. Here's the problem. They're hearing conflicting signals. Some senior Chinese government officials say private sector investment is welcome in China.

I think this is a question central to the US China relationship for the next year and the year beyond. We have a five hundred and seventy five billion dollars two way trade relationship. China's the third largest trade partner of the United States. There are thousands of American companies doing business here. Here's the problem. They're hearing conflicting signals. Some senior Chinese government officials say private sector investment is welcome in China.

Your investment will be protected.

Your investment will be protected.

But then these companies are also hearing a different message, whether it's the raids against American companies of last March in April, whether it is the opacity of the kind of espionage law where espionage is defined in such a general way that normal activities in any other country of the world, the collection of data could be construed as espionage. And so we see American firms backing away or at least being very cautious about investing a lot of money here because they're not sure where the lines are. And I think the voices that they're hearing from the government here in China about national security they're the strongest and loudest voices right now.

But then these companies are also hearing a different message, whether it's the raids against American companies of last March in April, whether it is the opacity of the kind of espionage law where espionage is defined in such a general way that normal activities in any other country of the world, the collection of data could be construed as espionage. And so we see American firms backing away or at least being very cautious about investing a lot of money here because they're not sure where the lines are. And I think the voices that they're hearing from the government here in China about national security they're the strongest and loudest voices right now.

Is it more than just the due diligence companies, the consultancies that have been rated, Other industries also in jeopardy.

Is it more than just the due diligence companies, the consultancies that have been rated, Other industries also in jeopardy.

I think so, I mean, I think it does go beyond those firms that were rated a year ago. It gets to the fact that a lot of companies don't know what the direction of the economy is here and where policy guidelines and parameters will be, and so they're not quite sure if they make a major investment whether that's going to be a rational decision. So a lot of people are sitting on their money. Very few companies are leaving this market at such a big market, an important market.

I think so, I mean, I think it does go beyond those firms that were rated a year ago. It gets to the fact that a lot of companies don't know what the direction of the economy is here and where policy guidelines and parameters will be, and so they're not quite sure if they make a major investment whether that's going to be a rational decision. So a lot of people are sitting on their money. Very few companies are leaving this market at such a big market, an important market.

But a lot of companies have plan b's as well.

But a lot of companies have plan b's as well.

Revenues down for companies like Apple, But there are two sides to that. One also Tesla, we've heard that government agencies have been instructed to not potentially buy Apple iPhones or even China here in China, right, So that also casts a paul too on the appetite to invest in particular two large bellwethers like.

Revenues down for companies like Apple, But there are two sides to that. One also Tesla, we've heard that government agencies have been instructed to not potentially buy Apple iPhones or even China here in China, right, So that also casts a paul too on the appetite to invest in particular two large bellwethers like.

Tesla and Apple.

Tesla and Apple.

You know, we've been very consistent in our government saying we do not want to see a decoupling of these two economies. We're the two the US and China, the two largest economies in the world. We're critical for each other's success given the trade relationship. We're fundamental to the health of the global economy. So we've been very consistent in saying that's not what we're after, but we are de risking. We are shutting down advanced technology transfers sales to China because for national security reasons.

You know, we've been very consistent in our government saying we do not want to see a decoupling of these two economies. We're the two the US and China, the two largest economies in the world. We're critical for each other's success given the trade relationship. We're fundamental to the health of the global economy. So we've been very consistent in saying that's not what we're after, but we are de risking. We are shutting down advanced technology transfers sales to China because for national security reasons.

You mentioned about the PLA, the People's Liberation Army. We do know at the National People's Congress China increase the military budget by seven point two percent, the biggest increase in five years. First of all, are you concerned by that or how should we read that?

You mentioned about the PLA, the People's Liberation Army. We do know at the National People's Congress China increase the military budget by seven point two percent, the biggest increase in five years. First of all, are you concerned by that or how should we read that?

Well, we're concerned about is the fact that the PLA is not transparent about how the money is being spent. You know, in the issue of China's nuclear weapons build up, they're not transparent with the rest of the world, and that's a problem. And of course, you know, the United States has been a principal military actor in the Indo Pacific since the close of the Second World War. What we've been doing and President Biden has had a lot of successiveness is to build up our alliances with Japan, the Republic of Korea, the Philippines, Thailand, Australia.

Well, we're concerned about is the fact that the PLA is not transparent about how the money is being spent. You know, in the issue of China's nuclear weapons build up, they're not transparent with the rest of the world, and that's a problem. And of course, you know, the United States has been a principal military actor in the Indo Pacific since the close of the Second World War. What we've been doing and President Biden has had a lot of successiveness is to build up our alliances with Japan, the Republic of Korea, the Philippines, Thailand, Australia.

We've created Aucus, and.

We've created Aucus, and.

Of course we have the Quad with India, all designed to protect the democratic countries of this region and protect international law in places like the Taiwan Strait and the South China Sea.

Of course we have the Quad with India, all designed to protect the democratic countries of this region and protect international law in places like the Taiwan Strait and the South China Sea.

How much potentially is the Philippine and China trouble right now of flashpoint? I know Anthony Blincoln will be in Manila next week with the Japanese counterpart. We also will be talking to President Marcos next week. Seems to be a very critical time over the difficulties over the tewod Thomas shol and it seems to be an amplified tension between Manila and Beijing.

How much potentially is the Philippine and China trouble right now of flashpoint? I know Anthony Blincoln will be in Manila next week with the Japanese counterpart. We also will be talking to President Marcos next week. Seems to be a very critical time over the difficulties over the tewod Thomas shol and it seems to be an amplified tension between Manila and Beijing.

Deusy it that way, We're.

Deusy it that way, We're.

Concerned about the activities of the Chinese Navy, the PRC Navy and the Coastguard in the South China Sea, particularly at tewond Timas Shoal at Scarborough Shoal.

Concerned about the activities of the Chinese Navy, the PRC Navy and the Coastguard in the South China Sea, particularly at tewond Timas Shoal at Scarborough Shoal.

The PRC has had.

The PRC has had.

An extravagant legal claim that is not supported international law. The International Court of Justice decided in July twenty sixteen in favor of the Philippines against the People's Republic of China, and Beijing has completely ignored that. So the Philippines has law, international law on its side and the strong support of the United States.

An extravagant legal claim that is not supported international law. The International Court of Justice decided in July twenty sixteen in favor of the Philippines against the People's Republic of China, and Beijing has completely ignored that. So the Philippines has law, international law on its side and the strong support of the United States.

The last time you and I talked in October, you said, obviously you want to see it more from China as far as using their influence either in Tehran to also essentially not support Hamas or some of these issues. Obviously that is happening in Gaza. A lot has happened since then as well.

The last time you and I talked in October, you said, obviously you want to see it more from China as far as using their influence either in Tehran to also essentially not support Hamas or some of these issues. Obviously that is happening in Gaza. A lot has happened since then as well.

We have the Red Sea shipping issues.

We have the Red Sea shipping issues.

The war in Ukraine as well has gone into a third year. Now, what do you want to see more from Beijing on a diplomatic front to end potentially broker some peace in Ukraine, in the Red Sea as well as in Gaza.

The war in Ukraine as well has gone into a third year. Now, what do you want to see more from Beijing on a diplomatic front to end potentially broker some peace in Ukraine, in the Red Sea as well as in Gaza.

We've been concerned for two years now by the support of Beijing for Russia's illegal, barbaric war in Ukraine. We've recently sanctioned seventeen Chinese companies that we believe are assisting in the defense industrial base of Russia for the prosecution of.

We've been concerned for two years now by the support of Beijing for Russia's illegal, barbaric war in Ukraine. We've recently sanctioned seventeen Chinese companies that we believe are assisting in the defense industrial base of Russia for the prosecution of.

That illegal war in Ukraine.

That illegal war in Ukraine.

And we're very much concerned by what the government here is not doing to arrest some of the more nefarious activities of Iran and around back militia or Anian back militia and throughout the Middle East. So we have a disagreement on these issues. We've been very vocal about it. So they're not doing enough.

And we're very much concerned by what the government here is not doing to arrest some of the more nefarious activities of Iran and around back militia or Anian back militia and throughout the Middle East. So we have a disagreement on these issues. We've been very vocal about it. So they're not doing enough.

We don't believe they're doing enough.

We don't believe they're doing enough.

They just sent their Ukrainian envoy Lehuey to Kiev. Any progress there that you would say is measurable progress.

They just sent their Ukrainian envoy Lehuey to Kiev. Any progress there that you would say is measurable progress.

It doesn't seem to be much progress that's come out of that trip, not that far the week, not as much as we can see.

It doesn't seem to be much progress that's come out of that trip, not that far the week, not as much as we can see.

Yeah, mill to mill dialogue. Has there been any progress there? It was cut off essentially by the China after Nancy Pelosi's visit. Has there been any measurable progress there?

Yeah, mill to mill dialogue. Has there been any progress there? It was cut off essentially by the China after Nancy Pelosi's visit. Has there been any measurable progress there?

Well?

Well?

The two presidents, President Biden and President She agreed in San Francisco that we would begin again serious high level communication between our militaries. This is hasn't happened. It's beginning to happen. And it's critical because our two militaries are operating in very close proximity to each other in the Spratleys and Paracels and the Sincakus and the Taiwan Strait. And so Chairman our new Chairman of the Joint Chiefs. Chairman Brown has had a discussion with his Chinese counterpart, and we hope very much, as Secretary Austin, we'll be able to talk to his counterpart in the coming weeks or months, and then we hope there'll be even conversations at a more tactical level.

The two presidents, President Biden and President She agreed in San Francisco that we would begin again serious high level communication between our militaries. This is hasn't happened. It's beginning to happen. And it's critical because our two militaries are operating in very close proximity to each other in the Spratleys and Paracels and the Sincakus and the Taiwan Strait. And so Chairman our new Chairman of the Joint Chiefs. Chairman Brown has had a discussion with his Chinese counterpart, and we hope very much, as Secretary Austin, we'll be able to talk to his counterpart in the coming weeks or months, and then we hope there'll be even conversations at a more tactical level.

Between our militaries.

Between our militaries.

This is common sense because you want to drive down the possibility of any kind of accident or misunderstanding between our air forces or our name.

This is common sense because you want to drive down the possibility of any kind of accident or misunderstanding between our air forces or our name.

How important are the next seven months ahead of the election. I don't want to get you to speculat on whether Donald Trump is elected again as the president, but he has talked about issues with NATO and the like. Even Wange has talked about what this administration is doing in the Indo Pacific is akin to a NATO for East Asi or the Indo Pacific. Do you think this election, if Donald Trump were elected, your work is going to be diminished.

How important are the next seven months ahead of the election. I don't want to get you to speculat on whether Donald Trump is elected again as the president, but he has talked about issues with NATO and the like. Even Wange has talked about what this administration is doing in the Indo Pacific is akin to a NATO for East Asi or the Indo Pacific. Do you think this election, if Donald Trump were elected, your work is going to be diminished.

I'm not going to answer that question with all due respect. I'm going to focus on my job here, which is to represent President Biden.

I'm not going to answer that question with all due respect. I'm going to focus on my job here, which is to represent President Biden.

In the United States.

In the United States.

I don't think it's helpful for me or anybody else in our mission to be talking about our election. So what we've got to do is continue the progress from the San Francisco meaning to continue to stabilize the relationship.

I don't think it's helpful for me or anybody else in our mission to be talking about our election. So what we've got to do is continue the progress from the San Francisco meaning to continue to stabilize the relationship.

What that could mean.

What that could mean.

In the next few months is that we continue to work on climate change together. John Podesta is our new climate negotiator. That we work on food security, that we work in promoting American agriculture here. One fifth of our exports in the United States go to China, and that we also compete with China on issues like technology, the TikTok issue. On this security and military issues we've talked about and unleveling the playing field for American companies here because it's not level with IP intellectual property violations, force technology transfer.

In the next few months is that we continue to work on climate change together. John Podesta is our new climate negotiator. That we work on food security, that we work in promoting American agriculture here. One fifth of our exports in the United States go to China, and that we also compete with China on issues like technology, the TikTok issue. On this security and military issues we've talked about and unleveling the playing field for American companies here because it's not level with IP intellectual property violations, force technology transfer.

So we've got a job to do. That's what we're focused now.

So we've got a job to do. That's what we're focused now.

I know Hong Kong is not your remit directly, but you were just there. There's no secret that you were there at a time. As well, the fast tracking of Article twenty three Security Bill, which we'll add on top of the China led National Security Law from twenty twenty. What did you see here and want to find out about? You know, how this will potentially I'm not saying this is going to happen but diminish the role Hong Kong has played as an international financial center and the transparency that is needed for that to do be sustaining.

I know Hong Kong is not your remit directly, but you were just there. There's no secret that you were there at a time. As well, the fast tracking of Article twenty three Security Bill, which we'll add on top of the China led National Security Law from twenty twenty. What did you see here and want to find out about? You know, how this will potentially I'm not saying this is going to happen but diminish the role Hong Kong has played as an international financial center and the transparency that is needed for that to do be sustaining.

Right, You're right, Steve, Hong Kong is a unique place.

Right, You're right, Steve, Hong Kong is a unique place.

We've had a concert there for one hundred and eighty one years, and it's an independent conscept that it doesn't come under my purview.

We've had a concert there for one hundred and eighty one years, and it's an independent conscept that it doesn't come under my purview.

But I went at the invitation of.

But I went at the invitation of.

My colleague and friend, Greg May, the US Consul General in Hong Kong. We had a lot of internal meetings. I met with the American business community. I went over to the University of Chicago and met Chinese and American students. So I wanted to get a good look at what's happening there, and it was good to be there.

My colleague and friend, Greg May, the US Consul General in Hong Kong. We had a lot of internal meetings. I met with the American business community. I went over to the University of Chicago and met Chinese and American students. So I wanted to get a good look at what's happening there, and it was good to be there.

I hadn't been there in five years.

I hadn't been there in five years.

As you know, we have serious concerns about the Article twenty three legislation. We'll see what happens and the coming weeks as to whether or not that moves forward. But the concerns are about the right of people to dissent, freedom of speech, freedom of assembly, and the State Department's been very clear about that concern that we have over the last several weeks.

As you know, we have serious concerns about the Article twenty three legislation. We'll see what happens and the coming weeks as to whether or not that moves forward. But the concerns are about the right of people to dissent, freedom of speech, freedom of assembly, and the State Department's been very clear about that concern that we have over the last several weeks.

Yeah, did you hear directly from businesses there in.

Yeah, did you hear directly from businesses there in.

Hong Kong, a lot of American businesses. Yes.

Hong Kong, a lot of American businesses. Yes.

Yeah, we even had a suggestion that, no disrespect to you as ambassador, that perhaps Taylor Swift could be a cultural ambassador.

Yeah, we even had a suggestion that, no disrespect to you as ambassador, that perhaps Taylor Swift could be a cultural ambassador.

Are you trying to get her to come to China?

Are you trying to get her to come to China?

So what role would that be, Steve, my three daughters and my granddaughter with never forgive me if we didn't try to get Taylor Swift.

So what role would that be, Steve, my three daughters and my granddaughter with never forgive me if we didn't try to get Taylor Swift.

To come to China.

To come to China.

You know, Chinese people need to see American culture and American life and all of its manifestations.

You know, Chinese people need to see American culture and American life and all of its manifestations.

And she's a brilliant artist.

And she's a brilliant artist.

So how prevalent are these exit bands and how is this limiting and preventing Americans from potentially running the risk of coming here?

So how prevalent are these exit bands and how is this limiting and preventing Americans from potentially running the risk of coming here?

Unfortunately, there are a great number of Americans who are subject to exit bands in China, and that means they can't leave the country. Either their passport's taken away or they go to the airport and they're not allowed to leave.

Unfortunately, there are a great number of Americans who are subject to exit bands in China, and that means they can't leave the country. Either their passport's taken away or they go to the airport and they're not allowed to leave.

And we fundamentally object to that.

And we fundamentally object to that.

I know the TikTok ban or potential ban is a legislative issue, but does it not set the stage for other potential actions that will further bifurcate the US China relationship.

I know the TikTok ban or potential ban is a legislative issue, but does it not set the stage for other potential actions that will further bifurcate the US China relationship.

Steve, the bill is with the Senate. I don't want to get ahead of the Senate, but I will say this for a number of complaints from the government here in Beijing this week about the American debate on TikTok, I find it supremely ironic because government officials here are using the X platform to criticize the United States. They don't give their own citizens the right to use X, to use Instagram, to use Facebook, to have access to Google, and so it is ironic, indeed that the government here is complaining about a process when they shut down access for one point four billion Chinese to all these platforms.

Steve, the bill is with the Senate. I don't want to get ahead of the Senate, but I will say this for a number of complaints from the government here in Beijing this week about the American debate on TikTok, I find it supremely ironic because government officials here are using the X platform to criticize the United States. They don't give their own citizens the right to use X, to use Instagram, to use Facebook, to have access to Google, and so it is ironic, indeed that the government here is complaining about a process when they shut down access for one point four billion Chinese to all these platforms.

With the TikTok issue, obviously, this is something that came up in the previous administration. China's had time now to come up with a rebuttal or some sort of defense. Do you feel that this is an escalation not only on the US front coming from Congress, but also China's.

With the TikTok issue, obviously, this is something that came up in the previous administration. China's had time now to come up with a rebuttal or some sort of defense. Do you feel that this is an escalation not only on the US front coming from Congress, but also China's.

Ability to fight back.

Ability to fight back.

We see it this way.

We see it this way.

Technology is in many ways now at the heart of the competition between the United States and China, whether it's commercial technology TikTok, for instance, or whether it's technology that can be transformed into military technology used to compete against US, and President Biden and our administration have been very clear we're not going to allow the export of American technology to China that would compromise our national security.

Technology is in many ways now at the heart of the competition between the United States and China, whether it's commercial technology TikTok, for instance, or whether it's technology that can be transformed into military technology used to compete against US, and President Biden and our administration have been very clear we're not going to allow the export of American technology to China that would compromise our national security.

A year ago, so we had the spy balloon. Obviously that derailed any kind of progress. We've had an amping up of these export curves and restrictions potentially on more products. Does that run the risk that that thought we saw in San Francisco could be kibosh.

A year ago, so we had the spy balloon. Obviously that derailed any kind of progress. We've had an amping up of these export curves and restrictions potentially on more products. Does that run the risk that that thought we saw in San Francisco could be kibosh.

It is in the interest of both China and the United States to proceed on military to military communication, a discussion of artificial intelligence, and certainly unfentanyl in the interests of both countries, but we know that we're competing at the same time. San Francisco did not resolve all the problems between the two governments and on military, on technology, on human rights. We have profound differences with China and will continue to talk about those

It is in the interest of both China and the United States to proceed on military to military communication, a discussion of artificial intelligence, and certainly unfentanyl in the interests of both countries, but we know that we're competing at the same time. San Francisco did not resolve all the problems between the two governments and on military, on technology, on human rights. We have profound differences with China and will continue to talk about those