>> WE’RE NOT LOOKING TO SEE
CONFLICT WITH CHINA, WE’RE
SEEKING COMPETITION AND WE CAN
DO THAT STRATEGICALLY, WE CAN DO
THAT SAFELY AND WE COULD DO THAT
WITH OUR PARTNERS AND ALLIES IN
THE REGION AND ALL AROUND THE
WORLD.
MARIA: THAT WAS DEPUTY EXCEPT P
GONEPENTAGONPRESS SECRETARY SABR
EXPLAINING THE POLICY ON CHINA.
XI JINPING IS IN SAUDI ARABIA,
MEETING WITH THE CROWN PRINCE.
THEY’RE EXPECTED TO DISCUSS
ENERGY AND SIGN AGREEMENTS WORTH
$29 BILLION.
JOINING ME NOW IS STEPHENS INC.
EXECUTIVE VICE PRESIDENT, SENIOR
POLICY ADVISOR, FORMER SENIOR
ADVISOR TO SECRETARY OF STATE
MIKE POMPEO, MARY KISSEL IS
HERE.
THANK YOU FOR BEING HERE.
WHAT DO YOU MAKE OF XI JINPING
MAKING THE ROUNDS NOW IN SAUDI
ARABIA.
>> THIS THE IS A VERY
SIGNIFICANT VISIT.
IT’S NOT THE FIRST TIME THAT XI
JINPING HAS ATTEMPTED TO PUT A
WEDGE BETWEEN THE UNITED STATES
AND OUR ALLIES.
RECALL THAT HE RECENTLY WELCOMED
SOME TOP EU REP SENSE REPRESENTA
BEIJING.
HE WOULD LIKE TO PULL THE EU
AWAY FROM US.
SAME THING GOING ON IN SAUDI
ARABIA.
HE’S DEMONSTRATING SAUDI ARABIA
DOESN’T HAVE TO JUST SELL OIL TO
THE REST OF THE WORLD OR BUY
WEAPONS FROM THE UNITED STATES.
THEY CAN DO BUSINESS WITH CHINA,
THEY CAN BUY WEAPONS FROM US,
THEY CAN SELL OIL TO US AND IN
FACT THEY’RE A MAJOR TRADING
PARTNERS OF SAUDI ARABIA SO
YOU’LL SEE XI JINPING GOT A
WELCOME THAT WAS NOT AFFORDED TO
PRESIDENT BIDEN.
THE CHINESE AIRLINE LANDED WITH
GREAT FANFARE, HE WAS WELCOMED
AT THE AIRPORT WITH HIGH
REPRESENTATIVES FROM SAUDI
ARABIA SO THIS IS A SIGNIFICANT
STRATEGIC MOVE BY CHINA AND A
IT’S A REMINDER THAT IF WE SHUN
OUR ALLIES, IT WILL HAVE
CONSEQUENCES.
MARIA: AND YET WE DON’T HAVE
ANY POLICY PUSHING BACK ON THIS
AUTHORITARIANISM.
WHAT SHOULD THE UNITED STATES BE
DOING AND WHERE IS THIS GOING IN
TERMS OF THE U.S. AND CHINA’S
RELATIONS?
>> I THINK IT’S MORE THAN JUST
THE U.S. AND CHINA.
RIGHT?
THIS IS THE FREE WORLD VERSUS A
BLOCK OF NATIONS, COMMUNIST
CHINA, IRAN, RUSSIA, NORTH
KOREA, PAKISTAN, ET CETERA IT’S
NOT JUST THESE TWO BLOCKS. IT’S THESE NATIONS IN THE MIDDLE
IT’S THESE NATIONS IN THE MIDDLE
THAT ARE GOING TO BE BY TO BE BY
WE NEED TO PAY ATTENTION.
WE NEED TO COME UP WITH A
STRATEGY, INCENT THESE COMPANIES
TO BE N OF OUR SIDE AND THAT’S
THE KIND OF THINKING WE’RE NOT
QUITE DOING YET.
MARIA: I THINK YOU MAKE SUCH A
GREAT POINT, HE’S PUTTING A
WEDGE BETWEEN THE UNITED STATES
AND OUR OWN ALLIES AND THAT WAS
ON FULL DISPLAY WHEN JOE BIDEN
MET WITH XI JINPING THE OTHER
DAY AT THE G-20.
XI JINPING TOOK ONE STEP, BIDEN
HAD TO WALK YOU ACROSS THE
ENTIRE STAGE.
BASICALLY BOWING TO THE KING, XI
JINPING, AND THEY’VE GOT
SURVEILLANCE PERHAPS IN AMERICA,
A POLICE STATION HERE IN
AMERICA.
>> IT’S INTERESTING WHEN I TALK
TO OUR CLIENTS ABOUT THEIR
INVESTMENTS, NOT NECESSARILY
EVEN HAVING TO INVEST IN CHINA,
RIGHT.
THERE ARE A LOT OF AMERICAN
COMPANIES THAT HAVE A
SIGNIFICANT AMOUNT OF EXPOSURE
TO COMMUNIST CHINA AND THEY’RE
ASKING ME WHAT IS GOING ON, IS
THIS GOING TO STABILIZE?
YOU SAW MARKETS RALLY EVEN AT
THE HINT THAT CHINA MIGHT REOPEN
AND SO THEY’RE COMING TO ME AND
SAYING WELL, IS EVERYTHING OKAY,
DO I HAVE TO WORRY ABOUT THESE
INVESTMENTS ANYMORE AND OUR
ANSWER IS NO, YOU DO HAVE TO
WORRY BECAUSE THE NATURE OF THIS
REGIME IS NOT GOING TO CHANGE.
SO JOE BIDEN AND THIS
ADMINISTRATION MAY WANT
DIALOGUE, MARKETS MAY RALLY IN
THE SHORT-TERM BUT MEDIUM TO
LONG TERM THIS DYNAMIC IS NOT
CHANGING AND THE RISK PROFILE IS
ONLY GETTING MORE COMPLICATED
AND SIGNIFICANT OVER TIME AND WE
HAVE TO BE HONEST ABOUT THAT.
SO YOU’VE GOT PEOPLE LOOKING AT
DIFFERENT PLAYS, THEY’RE LOOKING
AT THE RESHORING TO MEXICO,
LOOKING AT COMPANIES THAT
FACILITATE THAT.
THEY’RE LOOKING AT ENERGY
COMPANIES THAT ARE GOING TO
SUPPLY EUROPE AS EUROPE GOES TO
LOOK FOR OTHER SOURCES OF ENERGY
THAT DON’T COME FROM RUSSIA BUT
I THINK THAT THE XI VISIT IS
QUITE SIGNIFICANT, MARIA.
I THINK IT’S A DYNAMIC AND SIGN
THAT WE’RE IN AN ERA THAT
THERE’S NO TURNING BACK FROM.
THEY THIS IS NOT THE 9/11 ERA.
THIS IS NOT THE COLD WAR MANY
THIS IS SOMETHING VERY
DIFFERENT.
MARIA: THIS IS INCREDIBLE.
THERE’S SURVEILLANCE ON AMERICAN
CITIZENS VIA TIKTOK.
THE NEGOTIATIONS BETWEEN TIKTOK
AND THE GOVERNMENT DELAYED OVER
NATIONAL SECURITY CONCERNS.
INDIANA, THE AG IN INDIANA SUING
TIKTOK ACCUSING THE COMPANY OF
TARGETING MINORS WITH ADULT
CONTENT AS WELL AS SURVEILLANCE
PROGRAMS IN PLACE.
STATE ATTORNEY GENERAL WRITES
THIS, TIKTOK IS ACTIVELY
EXPOSING OUR CHILDREN TO DRUG
USE, ALCOHOL ABUSE, PROFANITY
AND SEXUAL EXPLICIT MATERIAL AT
A YOUNGATA YOUNG AGE.
THAT’S PART OF THE SUIT.
GREG ABBOTT, TEXAS GOVERNOR,
BECAME THE FIFTH STATE TO BAN
TIKTOK ON GOVERNMENT ISSUED
DEVICES.
THIS IS GAINING STRENGTH ON
TIKTOK, YET WE DON’T HAVE A
DECISION ON A FEDERAL LEVEL.
>> I THINK IT’S ENCOURAGING
THAT FOLKS ON BOTH SIDES OF THE
AISLE ARE WAKING UP TO THIS.
IT’S NOT JUST A SURVEILLANCE
THREAT.
IT’S AN OFFENSIVE WEAPON YOU CAN
USE TO MANIPULATE PEOPLE WHO ARE
USING THE APP.
INDIA BANNED THIS APP IN
JUNE 2020 WHEN I WAS IN THE
ADMINISTRATION AND THEY DIDN’T
JUST BAN TIKTOK, EVENTUALLY THEY
BANNED ALMOST 60 APPS.
WE SHOULD FOLLOW THEIR LEAD WHY
AREN’T WE BANNING THINGS LIKE WE
CHAT WHICH MANY CHINESE
AMERICANS USE HERE IF HERE IN NE
AND GET PROP BEGAN PROPAGANDAIZE
GOVERNMENT.
IT’S THEIR ONLY SOURCE OF NEWS.
IT’S NOT JUST TIKTOK, IT’S A
SUITE OF APPS THAT WE NEED TO
LOOK CAREFULLY AT AND YOU KNOW
WHAT, I HOPE THIS ADMINISTRATION
WAKES UP BECAUSE THIS ISN’T A
PARTISAN ISSUE.
NATIONAL SECURITY IS NOT A
PARTISAN THING.
MARIA: THAT’S RIGHT.
>> WE NEED TO -- THE FIRST ROLE
OF GOVERNMENT IS THE SECURITY OF
ITS CITIZENS AND LOOKING AT
THINGS LIKE THIS WHERE ECONOMIC
INNOVATION IS NOW BECOMING A
MILITARY, NATIONAL
SECURITY ISSUE.
THAT’S SOMETHING THAT WE HAVE TO
GRAPPLE WITH AND RECOGNIZE.
MARIA: IF THAT WERE A PRIORITY
THE SOUTHERN BORDER WOULD NOT BE
WIDE OPEN BUT IT YOU IS NOT A
PRIORITY BUT REAL QUICK ON
THIS ISSUE, HUAWEI RECENTLY THE
FCC SAID THAT IT WAS GOING TO
BAN NEW ORDERS FROM HUAWEI.
BUT WHAT ABOUT ALL THE HUAWEI
EQUIPMENT THAT IS ALREADY IN
PLACE?
IT’S ALREADY AS SECRETARY POMPEO
SAYS INSIDE THE GATES OF AMERICA
SO WHATEVER THE FCC IS SAYING
ABOUT WHAT’S TO COME WITH
HUAWEI, I WANT TO KNOW WHAT
THEY’RE GOING TO DO WITH THE
HUAWEI EQUIPMENT THAT IS ALREADY
HERE AND IN SO MANY CORPORATIONS
AND SURVEILLANCE.
>> LOOK, IT’S A BIG PROBLEM AND
YOU’VE IDENTIFIED THE PROBLEM.
WHAT ABOUT THE SURVEILLANCE
CAMERAS IN MY APARTMENT BUILDING
WHICH ARE CHAIS NIECE MADE,
RIGHT -- CHINESE MADE, RIGHT.
THIS IS AN ISSUE THAT’S SO
COMPLEX AND DIFFICULT AND BACK
TO WHERE WE BEGAN, SAUDI ARABIA,
HUAWEI HAS BUILT A LOT OF THEIR
TELECOMMUNICATIONS
INFRASTRUCTURE, THAT HAPPENED
UNDER A REPUBLICAN
ADMINISTRATION THAT WAS FRIENDLY
TO SAUDI.
THIS IS A BIG CHALLENGE.
THE GOOD NEWS IS THAT WE ARE
WAKING UP.
OUR ALLIES AND FRIENDS IN PLACES
LIKE BRITAIN AND AUSTRALIA HAVE
WOKEN UP.
YOU’RE RIGHT, THE SCALE OF THIS
CHALLENGE IS IMMENSE AND I THINK
UNFORTUNATELY IT MAY TAKE A
MAJOR SHOCK, CHINA INVADING
ANOTHER COUNTRY IN A SIGNIFICANT
WAY OR WE HAVE A MASSIVE CYBER
ATTACK OR SOMETHING HAPPENING TO
REALLY GIVE OUR POLITICAL ACTORS
THE COURAGE TO DO WHAT’S RIGHT
BECAUSE ULTIMATELY IT TAKES AN
ENORMOUS AMOUNT OF POLITICAL
SOWRNLG TO STAND UP AND --
COURAGE TO STAND UP AND SAY I’M
GOING TO BAN AN A APP THAT
EVERYBODY IS USING, WHO WILL BE