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Speaker 1: The Biden administration appearing to declare victory on inflation.

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Speaker 2: We have seen some turnaround in sentiment in recent months.

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Speaker 2: The University of Michigan Consumer Sentiment Index has moved up

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Speaker 2: quite a lot. Inflation is now near term at close

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Speaker 2: to the lowest levels we've seen in that survey. So

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Speaker 2: I think Americans do believe inflations under control.

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Speaker 1: Secretary yead Of making the case for a self landing

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Speaker 1: as fourth quarter GDP tops estimates and inflation continues to call,

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Speaker 1: I'm pleased to say joining us this program exclusively the

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Speaker 1: US Deputy Treasury Secretary Wally at Amo, Deputy Treasury Secretary

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Speaker 1: Wander for to catch up with you against sir and

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Speaker 1: to have a longer conversation about the US economy. Was

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Speaker 1: that a declaration of victory on inflation yesterday?

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Speaker 3: So I was listening to the show before I came on,

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Speaker 3: and you talked about all the people who have changed

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Speaker 3: their mind. The truth is, Secretary Yellen, it's been consistent.

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Speaker 3: If you go back a year ago, she made very

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Speaker 3: clear that we could grow the economy, bring down inflation,

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Speaker 3: and keep a tight labor market. And that's exactly what

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Speaker 3: we're doing. What she was saying yesterday was that we

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Speaker 3: have seen progress made in terms of making sure that

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Speaker 3: the middle class has more money to spend at the

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Speaker 3: end of the month. Because gas prices are down a

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Speaker 3: dollar ninety. We know that there's more that we need

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Speaker 3: to do in terms of trying to make sure that

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Speaker 3: we put more pocket in the more money in the

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Speaker 3: pockets of the middle class in America. And that's exactly

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Speaker 3: what the President of the Secretary committed to doing. We're

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Speaker 3: not declaring victory. Rather, we're saying we've made progress and

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Speaker 3: we're going to continue to make that progress going forward.

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Speaker 4: Deputy Secretary, why do you think there is such a

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Speaker 4: huge gap between the sentiment and the economic indicators that

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Speaker 4: seem to be making a really positive case for the economy.

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Speaker 3: I think the most important thing we have to continue

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Speaker 3: to remember, and I just came back from a trip

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Speaker 3: literally around the world, is that people are still impacted

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Speaker 3: by the pandemic and the ways that it impacted their lives.

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Speaker 3: But the thing we have going for us in the

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Speaker 3: United States is that because of the work that our

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Speaker 3: businesses have done, the American people have done, we're better

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Speaker 3: positioned as an economy to deal with that. You think

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Speaker 3: about the investments we made in things like the Advanced

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Speaker 3: Child Tax Credit, which gave the American families tax relief

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Speaker 3: in the midst of the pandemic, and the relief that

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Speaker 3: we gave to small businesses. And today we've seen sixteen

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Speaker 3: million applications for new small businesses in America. We're seeing progress.

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Speaker 3: But what I know that has happened to the American people,

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Speaker 3: but people around the world, is that the pandemic had

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Speaker 3: an impact that has in lots of ways still continuing.

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Speaker 3: But our economy is better positioned today than any economy

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Speaker 3: of a major of major country around the world because

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Speaker 3: of the decisions and choices the President and the Secretary

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Speaker 3: have made and our goals to make sure that we

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Speaker 3: continue from that position of strength to invest in the

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Speaker 3: American economy.

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Speaker 4: Debut. Secretary, you're talking about getting more dollars in people's pockets,

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Speaker 4: and we heard Janet Yellen, a Treasure Secretary, yesterday, talking

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Speaker 4: about the potential for prolonging some of the tax cuts

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Speaker 4: for people making less than four hundred thousand dollars a year.

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Speaker 2: How concerned are.

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Speaker 4: You the getting additional dollars in people's pockets will just

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Speaker 4: fuel another round of inflation, which really gave people a

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Speaker 4: lot of the negativity to start with.

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Speaker 3: I think the most important thing that we should look

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Speaker 3: at is one of the biggest drivers of the inflationary

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Speaker 3: pressures we saw in our economy was on the supply side.

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Speaker 3: Supply chains were snarled, and you've seen in a huge

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Speaker 3: decrease in supply chain challenges in the economy. Energy is

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Speaker 3: a great place to start. Just look at what we've

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Speaker 3: seen in terms of the dollar nine dy reduction in

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Speaker 3: the cost of gas, but throughout our supply chains, we've

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Speaker 3: seen them improved to put us in a better position

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Speaker 3: to meet the demand in the economy. And it's important

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Speaker 3: to remember what the Secretary said for the middle class,

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Speaker 3: we're not going to increase their taxes. We're going to

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Speaker 3: look for ways to provide relief to families, but we're

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Speaker 3: also going to look to modestly increase taxes on the wealthy,

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Speaker 3: on large corporations, because the Secretary and the President believe

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Speaker 3: that over the medium term, we need to make sure

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Speaker 3: that we have a fiscally sustainable outlook, which is very

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Speaker 3: different than the last administration.

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Speaker 5: Well, you just got back from Japan, and I understand

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Speaker 5: that Cyphius is still under review for Japan's takeover of

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Speaker 5: US Steel. We have the Prime Minister of Japan joining

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Speaker 5: US for a state dinner upcoming in April. Will we

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Speaker 5: get a decision on this soon?

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Speaker 3: So, as you know, we don't talk about any syfious

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Speaker 3: cases if they exist or if they don't publicly, it's

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Speaker 3: a private it's a private matter. If there's a sitious case.

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Speaker 3: What I can say is that CIFIUS is a process

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Speaker 3: of been set up to look at national security risk

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Speaker 3: and make sure that we in the United States, as

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Speaker 3: we support foreign direct investment in the United States, we're

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Speaker 3: also very mindful of the national security risk that some

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Speaker 3: foreign direct investment presents. Stepping away from a specific case,

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Speaker 3: one of the things that we believe deeply in is

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Speaker 3: the importance of a yaw a strong US steel industry.

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Speaker 3: That's why we've made investments like the Inflation Reduction Act

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Speaker 3: and the investments that we've made in rebuilding our infrastructure.

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Speaker 3: And ultimately, what we want to see is more companies

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Speaker 3: like US Steel in the United States that have union

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Speaker 3: workers that are paid a good living wage. And that's

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Speaker 3: exactly why we're making the investments. We're making the US

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Speaker 3: economy today.

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Speaker 5: But I'm looking at your readout and it says the

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Speaker 5: Deputy Secretary thanked his government counterparts for Japan's leadership. How

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Speaker 5: is this the national security concern when it's one of

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Speaker 5: the United States strongest allies in the Asia Pacific.

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Speaker 3: So, as I said, I'm not able to talk about

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Speaker 3: whether there is a case or isn't their case when

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Speaker 3: it comes to the scipious process is one that will

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Speaker 3: work through and take some time, and I expect that

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Speaker 3: any Sofia's case that comes through will be treated in

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Speaker 3: a manner that's consistent with the law. And ultimately, Congress

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Speaker 3: passed the law that gave Sophius certain authorities, and we

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Speaker 3: plan to do our jobs in terms of reviewing the

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Speaker 3: national security risk of any transaction that comes a Forsyphius.

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Speaker 5: One of the policies you were discussing, of course, in Japan,

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Speaker 5: was the future of what is going on with Russia's

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Speaker 5: invasion of Ukraine. Where are you in the status of

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Speaker 5: talks with your partners about Russia's assets. Do you see

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Speaker 5: a legal path forward with Russia's stranded assets to give

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Speaker 5: them to Ukraine.

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Speaker 3: Samory, As you mentioned, one of the topics of conversation

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Speaker 3: amongst the G seven and our coalition more broadly, is

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Speaker 3: how we make sure that Russia compensates Ukraine for the

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Speaker 3: damage they've done to their economy. Our leaders at the

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Speaker 3: beginning of the war immobilized Russia's sovereign assets that were

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Speaker 3: held in our countries so Putin couldn't use them to

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Speaker 3: fund his illegal war. Now they've said very clearly that

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Speaker 3: Putin is not getting back those assets until he pays

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Speaker 3: for the damage that's been done in Ukraine. And they've

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Speaker 3: asked us experts amongst the G seven to think about

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Speaker 3: what we can do to try and compensate the Ukrainians

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Speaker 3: for the damage that's been done in Europe. They're talking

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Speaker 3: about things like windfall profit taxes for debating a number

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Speaker 3: of other ideas, with the idea being that ultimately we

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Speaker 3: need to make sure that Russia is the one that

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Speaker 3: pays to help rebuild Ukraine in order to make sure

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Speaker 3: they have a thriving economy as well as a thriving democracy.

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Speaker 1: Deputy Secretary, appreciate your time this morning. I just wanted

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Speaker 1: to squeeze in one further question actually about trade. The

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Speaker 1: former president is on the campaign trail talking at the

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Speaker 1: potential of a blanket ten percent tariffs on imports since

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Speaker 1: the United States this administration has maintained tariffs on China

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Speaker 1: from the previous administration. What is your position on that now?

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Speaker 3: So, I think the blanket ten percent tariff that isn't

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Speaker 3: well targeted would hurt the American people. And what we've

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Speaker 3: done instead of looking to simply do blanket tariffs is

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Speaker 3: try to work with our allies and partners to hold

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Speaker 3: China accountable for the things that they are doing that

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Speaker 3: violate trade rules going forward, because ultimately, what we know

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Speaker 3: is that the best way to make sure that China

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Speaker 3: lives by the rules of the road that we've all

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Speaker 3: set is by doing that with our allies and partners

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Speaker 3: rather than taking a go at loan approach. That's exactly

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Speaker 3: what the President's going to continue to do.

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Speaker 1: Do you think the US car manufacturers can compete with

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Speaker 1: Chinese automakers without those tariffs?

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Speaker 3: I think the US car manufacturers can compete with anyone

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Speaker 3: in the world if they're playing on a level playing field.

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Speaker 3: And the problem today for them is that in China

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Speaker 3: there are subsidies that are being given to not only

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Speaker 3: car company but throughout the ecosystem that are making the

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Speaker 3: possible to produce cars that are lost leaders. And ultimately

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Speaker 3: the reason that in the United States but also in

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Speaker 3: Europe people are concerned about Chinese vehicles flooding the market

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Speaker 3: is because they're being produced in ways that violate basic

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Speaker 3: trade rules, and it's why we're looking all at our

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Speaker 3: options here. But I know that Europe is also looking

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Speaker 3: at their options to ensure that we don't end up

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Speaker 3: in a place where Chinese over capacity floods our markets.

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Speaker 1: What did those options look like, sir, Well.

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Speaker 3: I'm not going to get into them with you here,

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Speaker 3: but we're having serious conversations with our allies and partners

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Speaker 3: to ensure that we're in a position to make sure

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Speaker 3: that our companies are able to compete on a level

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Speaker 3: playing field.

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Speaker 1: That's why we do those interviews, Wally, we try and

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Speaker 1: make it happen. Weally appreciate your time, Hemma that the

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Speaker 1: US Deputy Treasury Secretary