Through a number of judges. I am going to be a little bit limited in that. I have to give my presentation and not go through the questionandanswer, and i almost would have rather flipped that because the question. Question period is more important. I appreciate this opportunity to speak and i hope to continue the dialogue because the issue is the issue of our time. I will talk about u. S. China relations and maintaining the United States competitive edge. There is a widespread understanding that addressing a rising china is the great Foreign Policy challenge of our time, so this could not be a more important time or more important conversation. I believe we can and must retain our leadership and Global Competitive advantage by erasing those defining characteristics raising those defining characteristics that have made america the leader of the world. Rights, diversity, human , and ultimately the rights of an individual, especially when those rights come in conflict with the government. Foundations are the i dont think we focus on this enough but those basic American Values have been the foundation of our International Success and in most ways, the foundation of our strongest alliances. But today, china is offering a different model to the world. Lets acknowledge, it has a risee achieved a meteor by rejecting core values that have made america and the west strong. I want to make one thing clear. My beef is with president xi jinping and the communist party thehina, not by any means great contributions of chineseamericans or the chinese people. It is important that we whether a business or in politics, stand with the people of hong kong as they struggle for their freedoms. I fear the Chinese Communist partys intent on reshaping the norms and values that have underwritten the decades of global stability, security, and prosperity. Recently, you say i was part of that conventional wisdom which told us the United States and china would rise together, intertwined in partnerships in trade, business, and education. Like many, i hoped and i remember leading a trade delegation to china as governor, i hoped that chinas greater global integration would lead to a more open, prosperous, and potentially more democratic china, and a rising china would be good for the world. Today, i believe it is clear xit the aims of president and the communist party do not align with that vision. The party is making a play for dominance in all of the advanced 20th century technological advantage areas 5g, robotics, biotech. They are doing this not under Traditional Market based fair playing field. The party, instead, is exploiting all elements of state power to strengthen chinas position globally, using Cyber Attacks to steal economic and military secrets, modernizing and expanding its own military presence, and waging influence campaigns, some open, with many covert, to shape perceptions of china while undermining human rights, dignity, and free speech. Acts in an it interventionist and unilateral so inontinuing and more the last fever years, to reject Core Principles around transparency, reciprocity, rule of law, and the free market. Exploits and depending on where it positions iself, tries to say market china is a marketbased system and tries to exploit the opportunities while at the same time increasing barriers to Foreign Companies coming in, and subsidizing its own chinese champions on the international market. What it cant out innovate, the ccp has no reservations about stealing, cyber theft, and espionage. Foreign competitors have often unwittingly, although more so with certain other actions maybe not so unwittingly, assisted beijing in these efforts. It has become common for the ccp to force Foreign Companies into joint ventures with Chinese Companies or require them to share source codes and other ip in order to get into the chinese market. Sacrifices that companies would not make to gain access to any other marketplace in the world. Once that ip and source code is in china, that is often taken, stolen, and used by the Chinese State to modernize Chinese Military under a state directed civil that they call military fusion. The government continues to view waster and universities Western University and government labs as a fertile background for the transfer of Sensitive Research back to china and spreading false narratives favorable to the communist party. What is particularly alarming, and we have seen enormous evidence of this, it is these chinese expats, especially students and academics, as essential assets in those state run efforts. Let me be clear, 363,000 Chinese Students all paying full tuition , most of them great students. My concern is not with the vast majority of the students who come here with the opportunity to learn, and also benefit our country and the world at large. My concern is what has changed in the last three years, five years with the students, america is not by any means as open and immigrant friendly as it used to be. China is a much more attractive place to go back to for students , but the third and most damaging and potentially devastating is that chinese spies Services Increasingly are threatening families of students who are doing advanced research in america and the west, threatening their families, their sons and daughters if they do not come home and bring a ip. B drive full of this is a challenge to all nations committed to democracy and the rule of law. What do we do . We need a comprehensive global strategy focusing on competing with china in the 21st century. I am not here to advocate that we go back to some kind of bilateral cold war approach where we try to break the world into two halves. Given chinas size, its integration into the economic and world order, two thirds of all nations in the world, their top trading partner is already china, and Global Threats we face from Climate Change to regional threats like north korea, there are going to have to be areas where we continue to cooperate, but we should do that with eyes wide open. What do we do . Defensive. We should take actions to protect ourselves. The u. S. Government must increase efforts to protect our critical supply chains. The increased exports controls of technologies to limit chinese investments insensitive and critical technologies, and to ensure that the Chinese Government and other bad actors cannot continue to hide those investments in Anonymous Shell Companies with Beneficial Ownership reform. From my and i hear this role on the intelligence committee, china is using on a regular basis dark money to buy influence in australia, taiwan, increasingly other nations asia. Making sure we have financial transparency in this country is critical. The federal government cannot tackle this challenge alone. For example, the last year and a half i got so frustrated with the intel briefings, it changed my views and frankly uniform into the Obama Administration and throughout the Trump Administration that laid out in an absolutely unanimous way the threat and challenge that china poses on a whole host of friends. I got frustrated with the Intel Community saying terrorizing 15 members of the Intelligence Community is not sufficient if we cannot get this information into the academic and business world, and other parts of our society. I have basically been doing a roadshow over the last year and a half always with the ofublican card, the director national intelligence, fbi, dhs, and others, where we give those outside governments in a classified setting an inside view in terms of what we see in these challenges. We have more to do of these socalled roadshows. When we both walk out with shared awareness, and i hope for the folks who come from academia , telcom, many sectors, we have done these around the country with the exception of private equity who has been unwilling to hear the story, we have walked out with a shared awareness and increased sense of urgency that companies and universities need to fortify their own systems against Cyber Threats and insider threats. We need to do a better job protecting our research and development, especially the critical work at United States universities and research labs. Universities should and must double down on security and compliance. Requirements that exist that have been ignored for too many years on faculty members disclosing additional sources of income or affiliations with Foreign Military in intelligence organizations, to better address potential conflicts of interest, and we have seen continually the number of faculty members who zy, i wondered why x, y, professors were always being goered all expense trips to to china and lecture for a while. If that is not a flashing red sign, at least have conversations about what they are getting into. These measures must be enforced pragmatically and transparently so they do not discriminate against the people they seek to protect. The goal here is not only to protect our research, but to help students and researchers, chinese and otherwise, avoid being preyed upon by the communist party. I have to acknowledge i have become increasingly disturbed that United States businesses and academic communities have deepened their partnerships with china for shortterm gain, while failing to take into account longterm costs. If i hear one more business leader, particularly fortune 500 Business Leaders say, i get this problem but we cannot miss the chinese markets, and i only say at what cost . We have seen american investors pour money into state backed Chinese Companies that advance chinas military capabilities. We have seen United States companies, some of our most prominent, develop technologies that directly enable the Chinese Communist partys censorship, surveillance, and social control efforts in a way, in a system that is the most orwellian in nature. What is worse is that this ability for china to develop these surveillance technologies which are currently focused on their own people, but they have taken this as another tool they can export to other authoritarian regimes where china can offer not only their version of a better topdown marketbased system but a notion of saying, you want to control your dissonance . We can offer you a technologybased system that can rock your socks. Inhumanele is ccps treatment of the population. I recently joined senator cornyn in placing export controls on technologies that provide the critical capability for the communist party to monitor tweeters in western china or protesters in hong kong. We have looked at additional restrictions on technology around facial Recognition Software which is being used to increase mass surveillance efforts. , before i gotdy into politics, we need to get serious very quickly because we are behind in securing our Telecommunications Networks when it comes to 5g. For those of you who are not telcom nerds, 5g is the equivalent of moving from radio to television. It will have that much of a transformative effect on our economy and virtually all of the internet of things devices arrive on a 5g network. So far, the United States has failed to find that consensus with our International Colleagues and allies on how we deal with a company like huawei that is beholden to the communist party of china rather than its shareholders, management, or board. For too long, we tried to point out, friendly nations around the world say show me the back door. That is not the issue. The issue is if you become solent upon a chinese competitor that offers a full stack solution in 5g, in a system that will increasingly be software driven, at any point in the future the communist party can make sure that now where it comes into your system could have devastating effects in terms of people being spied upon. There is increasingly not an Intelligence Agency around the western world but does not acknowledge that it is increasingly so we have got to have this 5g strategy. I am joined by a number of my colleagues and have pressed the administration, and they are getting their act together on this so we can build an International Coalition of companies around the world. Huawei will get close to half the market with us starting this far behind on the leading edge of technology. However, defensive measures only go so far. We have to make sure we out innovate china on an ongoing basis. Let me go back to 5g. We cannot simply say we are going to try to keep 5g we can keep while way out of u. S. Networks, but it will not be kept out of other networks. If i miss this boat, i want to make sure i get these comments in. The thing here, and this is an important point and i will try to speeded up, generally in the past and this group knows more than most we have always thought even if it is not invented in america, by the size of our market, if we can out innovate we win the longterm battle. In the case of 5g we are seeing the first example of what may be the new model in the 21st century, where china has good technology, whether they acquired it, stole it, or developed it, back a national champion, and go out to the marketplace, and if we expect to have a marketbased solution against the company that is sponsored by china, this 5g market over the next five years, 70 billion in equipment to be purchased, china has put up a 100 billion fund to back huawei. The notion that any company and we do not have an american competitor can go against that enterprise on price when while way can cut their price and offer 140 financing, that is a challenge that we cannot solve on our own. One thing i believe we need to look at our how we start inking about International Technology alliances. 5g being the starting point, but whatever we do, and there will be needs for a level of government involvement and support unlike anything we have seen in modern times. This country will have to think about terms like industrial policy in ways we have not thought about in 30 years. There is broadbased consensus that this may be the time and issue that brings us together. There is a growing recognition and a lot of this was driven initially by japan, korea, australia as they saw these chinese influences across the west that have to have some level of International Cooperation to take on this challenge. Whatever we do in 5g where we are behind, we need to be careful how we think about it because we will see a face the same level of competition in artificial intelligence, quantum computing, biotech, posing a level of threat and level of need for solutions we have not seen before. Issuently suggested if we some new spectrum, we ought to take the lead in america to make sure we push toward what would 5gthe next iteration beyond where the west would be more competitive because we would be towards a more softwarebased solution, hopefully a solution set. We proposed if there is additional spectrum auctioned off, we need to make sure that we put aside some of those andic funds to promote oran if we have to take out the while way equipment on our smaller telco carriers which by the way if you looked at the map with where while way sold equipment and where icbms are located, you will see almost an overlap. We need to make sure we build toward the next generation solution. This notion of a Tech Alliance or alliance of the willing may have to be a new framework that we have thought about in a military sense, an economic sense, and increasingly in a technology sense. That goes across r d, supply chain issues, and how we make sure the technology of the 21st century that will drive the economy are based in the values that i think builds our country in the first place and allowed our economy to prosper in so many ways postworld war ii. Recognizewill have to that our public level of investment, if we are going to make this happen, will have to go dramatically up. At the end of world war ii, the United States funded 60 of the r d in the world. 28 ande fund about nondifferential. That is not a Business Plan for country, in china that has laid out their 2025 plan the technologies they believe they will dominate in which will lead to economic and additional dominance if they are able to carry that out. It is extraordinarily important that we get this right. I had a lot of other important things to say, but no rest for the weary in terms of a voting schedule, i will leave it at that. I hope to the council folks that i get invited back so that hopefully i have provoked you a bit and i agree with this. I do think this is the issue of our time. The way i see my day job right now seeming so divided in our country on partisan and other bases, i want to leave you in a sense with what may be a good news piece. I have found from the Business Community and Academic Community , and from the political world, this is a world where there is a growing huge consensus. What we have not had is that plan on how we get it right. To get it right we will need you , policymakers, academia, and have to do it on not just an american based opportunity but with opportunities around the world. I hope i can be part of that solution set. Thank you very much. [applause] ladies and gentlemen, please make your way to the adjoining room. Cspans washington journal live every day with news and policy issues that impact you. We will talk about efforts to raise the minimum wage with the National Employment law project, and a discussion of the skills gap and the future of work. Cspans washington journal at 7 00 a. M. Eastern this morning. Join the discussion. Next, a conversation with the managing director of the International Monetary fund who spoke at the annual wall street journal ceo council. Larry gave us a good primer on the u. S. Economy, began talking about the international economy. Lets take that a step further and ask Kristalina Georgieva to join us. She is the new magaging director to the new chief of the imf. Lets see what her prognosis is for your markets outside of the United States. [applause] hello. Welcome. So happy to have you here. So, lets get right into it. We just heard a very upbeat view of the u. S. Economy and complaints about the global economy. Lets start with the u. S