a security relationship that is
the strongest in decades, we need to match that with the
economic relationship. We of course, have a strong foundation
$7 trillion relationship between Europe and the United States,
right, almost 16 million jobs tied to the two economies.
There's a lot to build on. But you're right. We also have some
challenges ahead. As we look at policies in Brussels, whether
it's around the digital markets Act, or whether it's dealing
with Digital Service Act, or dealing with taxes or other
issues in the relationship. And of course, the Europeans have
their own issues. What we have to avoid is protectionism. On
both sides, we have strong coordination on the unprovoked
aggression of Russia into the Ukraine, we have increasing
cooperation coordination around China policy, we can build on
that. But we've got to look at supply chain resiliency, we got
to look at clean energy and clean security and technology
issues. And we've got to deal with the issues around data.
You speak about protectionism not being old being something
that you don't want either side to, to really be putting out
here, but one would look at something like the inflation
reduction act and think that that is aimed in some ways as
protectionism. If there isn't a resolution sort of fine found on
either side, the repercussions could still be quite damaging,
and for a long period of time, right? Well, look, I
think there are some problems with the, you know, Ira, no
question about it. But it has the goal of trying to put
America on the map in a real way on climate change. It also has
the issue around supply chain resiliency, how do we better
produce critical minerals? How do we do that with Europe? And I
think there's going to be a solution, frankly, on that
issue. We know that Japan and Korea and Europe have huge
investments in the auto industry and in clean tech in the United
States. And we want to protect and we want to support it. Let's
remember, it's only 1% Right here. It's a very small issue.
But it's become a bigger political issue. I think we're
gonna get it resolved. But let's also turn our attention to
what's going on in Brussels in terms of policy. We've got to
pursue opportunities, and not get caught up in the irritants
in the relationship.
Yeah, I mean, that's always the way with diplomacy, isn't it? I
feels like one of the themes that came out of the World
Economic Forum I was there myself a couple of weeks ago is
this theme of realignments, whether it was companies
rethinking their supply chains, whether they were thinking their
trading partners, that did emerge as one of the themes. I
think the pandemic really made companies reevaluate everything
from their ultimate sourcing to the final manufacturing of the
products that they end up selling. You see it across all
of these different types of discussions that we've been
having. But you know, when it comes to relationship between
the US and China, you are actually seeing a material
impact now on trade US imports from China have started
decreasing. So how does your desire to keep the world open
and and trading square up with the geopolitical tensions that
are at play between the US and China now and this desire more
broadly? Speaking of realignment,
your mana? There's a lot in that question. So let me just say
quickly, first, we have to make sure the United States is in the
trade game, right? We haven't announced a new trade agreement
in 10 years, there's been 100 trade deals inked in that period
of time. So first of all, we got to have a forward looking
policy, whether it's towards Europe, whether it's in the Asia
Pacific region, which is the fastest growing region in the
world, we've got to be advancing trade policy. So that's why we
have promoted a US UK Free Trade Agreement. It's why we want to
see more market access in the eye path context. But also
China's import. It's a $1 trillion relationship, you
right, CEOs that I talked to are thinking about mitigating risk,
right, the fallout, you've seen that already with investments in
Vietnam and Malaysia, in other parts of Southeast Asia, in
Mexico closer to home, that's going to continue, you need to
diversify your supply chains, but you're not moving out of the
market, China, in many sectors, it's still a very attractive
market. But economic origin coming out of China unfair trade
practices, a direction of Xi Jinping, that is harming
investment in that country, not just from the United States, but
from Europe. That's why the alignment we have shared values
with Europe. Okay, let's ignore the geographic differences.
Let's focus on the shared values and double down where we can
create more opportunities. We have a huge economic
partnership. Let's build on it. And I think that's the challenge
for Europe and the United States to work together on that front
to find the state of relations today between US and China. We
did have that meeting between Biden and she was that some
people said it was that was that formed the bottom of the
relationship since then, at least, there's been some
progress on the Deploy.
I've been at this game for 30 plus years. I was there in
Beijing when the deal was actually inked between the
United States and China to begin China's accession to the WTO due
to how long a history I have on this deal, I think it did set
the floor. The she by the meeting was very important. The
tensions have been rising. But we let's be honest, we have real
differences on the national security front, with respect to
Taiwan with respect to human rights and issues like that, the
same time, there's no way you can have China United States not
deal with global challenges. With this kind of evidence,
serial relationship, we've got to figure out a way to deal with
the climate challenge, the health challenges, and of
course, continue to have economic commerce, where it
makes sense. I think we have an opportunity. We've got a new
team under Xi Jinping, we'll see how that team we set the
policies up to the March Congress in Beijing. But the
bottom line, the burden is really on China to demonstrate
to the rest of us, not just the United States, that it wants to
abide by rules that are clearly establishing the international
system. How does
the gridlock and the US Congress complicate things?
Gridlock is a choice, we say, we can avoid that? Look, the
polarization our country is a problem. Right? It's certainly
preventing smart policies around immigration, there's work to be
done around worker shortages. We've got to deal with the debt
ceiling crisis, we've got to certainly deal with permitting
and more production in the United States. You can't do that
without bipartisanship. So both sides of the aisle, Republicans,
Democrats have got to work together. And they got to work
together to advance our economy at a time when there's a lot of
economic uncertainty. We're doing better on inflation. But
we still have uncertainty in our economy as we do in the world
economy. So we got to overcome gridlock. We think we can do
So first beat the gridlock is effectively the one plan on the
that.
other side, then the question is, Can you can you both
particularly with China as well, really get to an agreement that
doesn't allow either side to see their advantages? Because
that's, that's really the big thing here is China feels as
though that probably be seeing a lot of their advantage. It could
be the same on the US side of the conversation as well. Is
there a way to find a solution where both don't have to?
Well, I'm not sure economic model in China. It's working
right now. We see the lowest growth rates in China in a long
time. Covid policies had something to do with that. But
China's position the world has also struggled and suffered from
its position in the Russia Ukraine dispute, right? I think
China has to step up by now. It has to make a choice doesn't
want to be part of the market, the world markets in a way that
is seen as not economic course of policies. Right. And so I
think China has a choice. Does the United States and China have
to frame a better relationship? Sure. It's very difficult in
Washington, you want bipartisanship? Talk about
China. That's one area where both Democrats or Republicans
are lying, which is, you know, a pretty muscular position and,
and growing, obviously, concerns about the national security
challenge to China. We've got to find the right balance, but it's
difficult to find the right balance in China. If Beijing is
not acting responsibly in the international system.