We had to rebuild the military didnt have a choice. Welcome to hudson wide big crowd in the middle of summer. But the topic is very interesting and i appreciate you being here. Today we will talk about the intersection of economics and National Security thinking about competition as you know across the domain and on the economic side of things. The ad jumped secret fellow and a former associate director for capability and the chief Technology OfficerNational Geospatial intelligence agency. In that capacity responsible for technology r d and the strategy of the Agency Overall responsible to bring ai into the agency and to adopt it more effectively and ceo of two technology startups. With the phd and we need more of anthony and the government of economics of National Security with his whole career and then i will open this up to the audience. Thank you so much and to discuss this topic today. And then to spend some time and what that means for the American Military and intelligence in this proposal i would like to talk about to improve and with that competition with china they refer to this as a new cold war is as much economic as military. To face a competitor nowhere near the economic power since the british or have that economic agility that we pride ourselves on. In this economic competition and with the defense of National Security and to surpass america measured by that purchasing power and to provide china with an advantage of National Security if we have more money which to develop and implement and more importantly in my view that you can china can orchestrate for geopolitical purposes because they recognize the divide between public and private. And it can use its control all over Government Agencies and the direct investment for security purposes this allows china to receive National Security competition and National Intelligence and that direct economic actors and you have those power plays on that initiative of commercial economic instances. Is much more willing than western democracies to use that Security Apparatus to support Economic Growth or quasi legal theft of foreign intellectual property. This creates a virtuous circle to help business expanded on the industry to expand government geopolitical power. The spectrum of competition has led to a real threat that chinese attempts translates directly to military intelligence capability and with teeeight and partner nations cause real concern for the intelligence advantage because china has access to privileged communication between the us and allied countries. Already China Ventures in us Startup Companies can take those off the table for use by the military Intelligence Community by making it impossible for those to have security clearances. Even my minority investment can still for some agencies create an impact for example. Such as de facto control with strategic advantage or any military clashes and a more strategic level to change the Global Alliance and finally into threaten the us Weapon System to neutralize the capabilities. These are real threats and something for us to be concerned about americans cannot adequately compete with china without first better understanding to act upon that definition of power to have arms races over Artificial Intelligence instead of michelle one Missile Systems that all has the same jockeying for the geopolitical advantage with the soviet union. However Economic Warfare is a much larger part. I would see this increasingly common understanding and take it a step further that in my view the Global Economy has an effect become a new war fighting domain air and space and cyberthe landscape upon which conflicts are executed understanding the usual concepts for fighting of command and control and importantly with the ability to with other demands. China is already thinking this way the recently released White Paper China National Defense in a new era to support the Sustainable Development of the country. So this kind of thinking so as with any domain the first step is to understand the topography and the threat itself but in that economic domain the National Security system is at a distinct disadvantage because we consider this to be a civilian domain. And to gain understanding of interNational Security for those economic threats the knowledge of any ability that system is simply not sufficient based on my experience in the Intelligence Community they are not even in the same league to make that much of a difference and that should concern all of us. Most economic alice analysis efforts for the finance networks when it comes to strategic threats in the economy. And even information is not widely shared generally due to concerns about the role of government so the state of affairs reminds me of secretary of state simpson said that gentlemen dont read each others mail. America just doesnt do economic espionage. Whether a gentlemanly thing or to have legitimate philosophical differences with the economy in the government that we are not doing it does present us with a real disadvantage but it is not too late when these threats have arisen in the past america has made a change to counter the threats and dust structure and then that was a change within to pursue the world war ii the National Security act with a new form of competition with the soviet union the creation of secretary of defense. These organizations were necessary where air power and intelligence were the key determinant of success in the new domains of war fighting. After 9 11 the department of Homeland Security the terrorism and Integration Center and the National Counterterrorism center to pursue the war on terror. Existing agencies the National Economic council is not well set up for National Security threats or cia and other intelligence agencies can perform Economic Analysis they dont have the necessary partnerships you would need with these economic threats the office of terrorist financing throughout the government focusing on threat finance and its not sufficient for strategic threats we require new capabilities to defend against economic threats. The counter economic threat begins the process to treat the Global Economy requires a National Defense center which would provide a place for the government to coordinate and accelerate the an economic threat analysis and response. The center would be parallel in many ways to the National Counterterrorism center and create a whole government approach or a whole nation approach to bring together multiple agencies and departments each with its own subject matter expertise with her own missions and authorities the Defense Center would maintain the equivalent Realtime Operations Center for the economy to monitor and share information from economic threats of china and competitors addressing responses to those threats and then exchange and compile analyze economic threat information connecting those spots that are not connected right now. The current authorities to defend against economic threats do the compartmentalization Law Enforcement versus intelligence is at the counterterrorism fight the ability to combine multiple authorities by having different agencies all at the same table in the same name that the economic Defense Center must bring all the players to the same room at the same table. Actions and counter threats would be coordinated with the Law Enforcement agencies and across National Security. Economic Defense Center would provide a single responsible party with developing policies to counter economic threats it would also accelerate our economic analytical capability with tools from private industry and as mentioned before we just dont have that kind of expertise in the government at the level that we needed we need a place where people can learn can do that and communicate and build up the capability having Government Employees can use the bloomberg terminal and use that Business Strategy and military history or the arabic language. We need a place where these experts can go and be trained and communicate seamlessly and develop themselves and it wont be easy to do this trying to bring Data Scientist and Similar Technology into the government there is a lot of competition out there for certain skill sets. The same for Economic Analysis and the Government Human Resources systems doesnt make it easy to bring new people in throughout these experiences. When you think about it how do we convince someone who makes over a Million Dollars a year in connecticut or new york city working in finance to move to Northern Virginia to make the gf 15 salary gs 15 salary. So no doubt we can convince people to come just purely out of patriotism and the feeling of with the need to do the mission but we do need to be more flexible figuring out ways. Finally and most importantly to renew the stigma of the economic intelligence to help counterterrorism experts that is a legitimate area of intelligence and analysis economic threats are real more than any other war fighting domain. And for such a center jointly between the office of National Development defense and department of treasury although i can imagine other scenarios. No matter what representative of the Intelligence Community would play such a major role and given the wide range of our economy from faa or fcc and all have representation economic Defense Center would require a true Publicprivate Partnership bringing people and expertise from commercial industry working together with government this would encompass information and threat sharing as well as actively defending us industry even potentially points of active action for some of these companies is only a matter of time before American Commercial Company realizes the biggest competitor is not just another company but their companies are backed by nationstates. Competing with then nationstate backed companies not the same as competing with other companies they have the potential for nationstate level financial and Security Resources and they are able to cheat in essence. Chinas perfectly willing to forgo profits and something we have already seen with the state owned companies and non state owned companies that something that they cannot do but in that scenario executives come to realize they will have a closer relationship with government just as they have for cybersecurity. So tpp should involve companies and banks of commercial institutions as well as academi academia. Economic defense something that will require a hold of nation approach and finally the Global Nature of economics for foreign allies immediately they should be invited into the center with many other allies joining. With that economic Defense Center in place the National Security center could respond to the economic threats presented by china and other countries contributing information and analysis under cvs for example providing integrated plans to direct foreign aid and after similar crimes and with those counters for the nationstate threat such as Strategic Technology investment backing communications and other information and other infrastructure projects. New threats require new defenses with a new cold war in america requires to be able to defend against them joining the Artificial Intelligence center in order to address one threat of the economic Defense Center it is a another that we can create to strengthen our Economic Security analysis for our approach and defense. Thank you. [applause] thank you anthony that was very interesting. There are a couple of things that we liked about your talk and to reemphasize the importance of National Security and Economic Security in the intertwined nature of the two and this administration has done well over the past two years and i think anthony pointed out both communities understand that especially on the con side of things National Security side as well second he brought up one of the most fundamental issues that we all need to think about, how do we create the fast operational models to compete in the world we find ourselves in cracks how does the market compete with the state market economy like china and other countries cracks what new models are needed or what new capabilities and what specific ideas are the points of discussion because a lot of times we describe the nature of the problem and described the landscape but we lack the recommendations so let that criticism there are probably issues related to the nature of sharing information with the private sector and government and other issues i like the specificity because its a great starting point of discussion. So with that i will ask two questions and then open it up so first is the thought are we really in a cold war cracks . What the conflict is today innocence medicine normal competition between two states and achievement of absolute gains, there is an attempt of gains between two countries that can be zerosum and can involve more than just the normal legal means of that kind of competition. Once you go outside the legal means and start to use espionage and strategic means you start to enter the world of the cold war. The question is, also moving to physical conflict and potentially a proxies and that was certainly circle like a cold war. Until then i think its essentially the best term that we have. Thank you. And im sure you and the audience have different ideas. Feel free to, if youd like. A second question essentially economy of the war fighting realistic . I like to think about for years we talk about Public Private sector to deal with 500 Cyber Threats and how difficult it is been by getting both sides to share the information necessary to improve our defenses in certain areas. Given the problem that we have had in that gentlemen, how do you see that necessary information sharing unfolding. Two issues, one is whether were fighting domain is really inappropriate way to refer to this. The reason i went so far to say that, i think domain captures the extent to which competition and conflict takes place. And where all away at the tactical level there are Economic Issues that would confront small units of soldiers for example. So you can imagine in a place like afghanistan where we have troops on the ground, Economic Issues are not typically something that come into play in peoples thinking but very relevant, so as the conflict goes and we begin to pull the way out of the country there is a possibility of china or other states coming in and using economic means to gain support and allies at the local level and eventually at a National Level and to use that were political and geopolitical purposes. All the sudden what is happening in the small village whether you leave behind with the functioning economy or not and whether there happily and able to take care of themselves have strategic level effects and you can go up to tactical and operational all the way to the president. Who has to think about things like paris and things like economic agreements, not just from the perspective of our usual economic thinking but a National Security. That connection all away from tactical strategic makes me think of domain and the tools themselves are spread across that domain and the actors are spread across within our government so it reminds me most of how we treat some of the other domains and thats why oppose the weight of returned in terms of Public Ownership and how to cooperate, this is probably the hardest part thinking about economic defense and economic threat. Because at the end of the day are capitalist of the economy we do have a separation between the government and the economic sector and commercial and industry sectors. I think fundamentally it is the capitalist system that is her greatest advantage, i think in the end itll be the thing that will ensure ultimate success across every domain. How do we make that balance of keeping that system in place and ensuring we hold true to it but also supporting it in the face of economic threat and going back to one of the things we said when you have a situation where company, a private company is having to compete not just with other companies but competing against nationstates, how do you do that effectively . So still maintaining that separation between a government and a company and ensuring those companies are treated fairly by the government and dont have any favoritism are able to compete in an open plainfield but also supporting that. And where can we do that. There are examples of this happening where we provide cybersecurity and other security information to defend them or preside undeorprovide services. In particularly, i would say in industries that are closer and to National Security means. And ensuring for example that investments from Foreign Companies in u. S. National Security Industries but industries we dont typically associate with National Securities, there may also be similar threats and as an example i would use Something Like executive search, and industry helping those people with the Security Industry but highly relevant and Technology Companies is the number one driver of success. Its in executive search was compromised in some way. Im unable to effectively move talent around, drop talent or information about talent. Being extracted from those companies for example that provides a threat to the Technology Industry and ultimately to National Security. It gives you an idea of how these industries, we dont typically associate with National Securities actually do have to be defended. Thank you. Another way of thinking about it, sometimes its hard to build coalition around that term or at the same competition. To remain the competitive advantages we need to see it as one of the sustained competition and that might cover more of an area. The nice thing about specific ideas if you continue to have these debates so we will open it up to questions, if possible please introduce yourself and where youre from. That is helpful. Well go to the gentleman in beige. [inaudible question] in military terms, a defense, a good offense is what is needed with the defense and you have economic Defense Center. But going on the offense, we can begin to see that there is a paradigm problem in the world, to competing paradigms, capitalism on the one hand and collectivism, con humans him and socialism. Now, the offense was developed back in 58 by someone who wrote a book, it was called the capitalist manifesto. But the word capitalist was not a good idea. That is because in capitalism, we dont have the kind of democracy that would be demented but the universal acclamation of human rights section 17 which says every person should have the right to be able to become an owner of a property personally as well as an association with others. Other people were saying the same thing, we have to enable and list the various in the books outline how to do that. And this became the basis for ownership starting with worker workers we need a question. Under president reagan we got a president ial task force of Economic Justice with weak wrote the loss. And he was very favorable. So anybody who is interested in the new paradigm, which is based on limited government, free markets, private property but it would add what no country in the world has outdone is a Monetary System and a tax system which would encourage universal access not only for people in one country, the United States could take the lead on this and i kno server we need a question. The question is, should we be seeking an offense based on universal citizen ownership beyond the vault to ownership. I would say a couple of things to answer. One, there is a clear ideological difference here. Its another one of the reasons why cold war is an appropriate way to refer to it between individual and collective view of society. And capitalism being natural Economic System as paramount. So at that level, there is a cold war over ideas in economics will be core to do that. And, the other thing i would say to your point, whether we need an offense, again i would think of this in the same way as any other were fighting domain or area competition and there will be offense in there will be defense but there will be, in essence rules of engagement and levels of the conflict and competition, i think it is in all countries interest to say the lowest possible level of competition for as long as possible. Which typically means the defensive nature. But i do think in systems like an economic Defense Center and other organizations when you think about these things, policymakers, National Security experts will have to make the call at any given time. The gentleman upfront. Good afternoon im chris current dod contractor former air force officer and former dhs. My time at dhs included three years of order protection. I inspect a lot of costco or go vessels with firsthand the economic work for china is engaging in. Last week at the Heritage Foundation we have an interesting panel talking about the 5d networks and how prc that have that states connection and how they pose a threat. One more thing the panelist mentioned, there is evidence that huawei mightve violated some of the sanctions in north korea which of true which show egregious intertwined of economic and military threats. Other than news reports, that a been out there, i dont know. I dont know either. One thing i would say, things like breaking economic tensions are already within the system that we have organizations in place and tracking monitors and prosecute them. I think what is lacking again is when they become more sophisticated than that. And strategic actions that dont quaintly break ascension to provide a threat and how do we ensure they were able to respond which often slip through the crooks because intelligence analysts and others who are charged dont realize they are able to put the pieces together. To anthonys point, what is in the toolkit of economic state, we often just think about sanctions. But this can work and much more detail thinking through those tools. Thank you. Marina department of commerce. Two questions, what you see as the next step toward establishing, do see protectable International Repercussions of declaring the war fighting domain . In terms of next steps, it could go to route through congress and to the president. I think bringing attention to the issue is really the next step in realizing there is a problem in the Current Organization and the government are not adequately equipped to respond to the threat similar in many ways to the background of the in tct. Once that is realized i think there will be other solutions and this is the one proposed and i think is the right way to do it but there may be other ways that can ultimately address the same problems which is separation of authorities and lack of economic political capability. In terms of designation as a war fighting domain and repercussions that can come from that. That is a question that should be addressed. In many ways i think it is already happened by default and is a defective situation. Where we have competitors that are treated as such and have similar offices and raise of acting. In many parts of the government here we are already starting to do that as well, bringing a name to something that is reality it does call attention to but at the end of the day is not changing something that is not already real. There would need to be a communication strategy behind the and i think as part of that it would be important to realize there are real harm, just like in any other domain when this competition happens. People are actually harmed and i suspect you could look at the health and wellbeing of people that are affected by economic threats that occur and you can probably even talk about things like that even though that is a little different of how we would normally consider economics. You can look at other homes in terms of National Security areas. Reminding people that this is a real thing, they are real threats, its real harm that is occurring in a state of affairs would be an important part. Some ways its sort of thinking when we talk about threats, through our Banking System in the discussions we have had about that, the possibility that they can bring down on Financial System and these are issues we have been talking about for several years. And Information Operation is another example that i think is generally considered to be an area ofhr