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Speaker 1: All right, let's get over to our next guest, because

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Speaker 1: we're being told that the US is exploring the possibility

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Speaker 1: of new export controls that would limit China's access to

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Speaker 1: some of the most powerful emerging computing technologies. Were joined

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Speaker 1: them by Jordan Strauss, Kroll Managing Director and Kroll Institute Fellow. Jordan,

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Speaker 1: thank you for joining us. Let's just look at what

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Speaker 1: is perhaps the bigger picture here. This is about not

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Speaker 1: just semiconductors, which is a very very wide subject, but

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Speaker 1: also in technologies to do with AI and quantum computing.

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Speaker 1: Is it now really explicit that the wine House is

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Speaker 1: doubling down in its efforts to contain China. Hey, risch

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Speaker 1: It's nice to spend the morning with Hugh and Bloomberg.

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Speaker 1: Absolutely clear. We've seen that happen over the past few

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Speaker 1: weeks where the Biden administration has finally settled on and

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Speaker 1: really doubled down on a very aggressive strategy. You saw

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Speaker 1: that two weeks ago with the release of the new

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Speaker 1: National Security Strategy, which identifies China as primary geopolitical competitor

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Speaker 1: in the world with the United States, with the change

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Speaker 1: in UM verification for certain Chinese companies that are engaged

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Speaker 1: in advanced semiconductor research, and these rumors are are certainly

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Speaker 1: fitting with all of that. You know, it's clear that,

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Speaker 1: you know, the future of national security and national prosperity

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Speaker 1: as much as it's been energy for the last hundred years,

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Speaker 1: is high technology, is quantum AI and other chip enabled stuff.

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Speaker 1: So you know, the Biden administration is recognizing that the

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Speaker 1: chips are the new oil, and they're doing everything they

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Speaker 1: can to try to create a competitive advantage for America.

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Speaker 1: So in terms of timing, Jordan, do you think that

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Speaker 1: the horse has left the barn so to speak? I mean,

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Speaker 1: is there still time to contain China in this in

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Speaker 1: this way or have they already or the country at

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Speaker 1: large as it kind of advanced its own ambition to

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Speaker 1: the extent that they have done work in quantum computing

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Speaker 1: and AI. So there's been a lot of very healthy

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Speaker 1: competition between the current great powers in this space and

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Speaker 1: that will continue. You know, I think that the administration's

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Speaker 1: actions and the actions that other Western governments are considering um.

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Speaker 1: You know, in the United States, the passage of the

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Speaker 1: so called Chips act Um and the Western equivalents of

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Speaker 1: that that are likely about to pass in a few

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Speaker 1: European countries have made clear that everybody is trying to

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Speaker 1: bring this stuff closer to their shores to build a

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Speaker 1: domestic ability to conduct R and D and to conduct

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Speaker 1: fabrication of advanced technologies. I would say, by the way,

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Speaker 1: that that competition is good, and not just good long

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Speaker 1: term for companies that are engaged in this, but good

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Speaker 1: for progress and innovation. On the US China front, there's

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Speaker 1: been so much tension for the last twenty years that

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Speaker 1: it I think short of a real diplomatic or scientific breakthrough, Um,

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Speaker 1: you know, the next the next year or two are

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Speaker 1: probably gonna be fairly difficult to navigate. UM. Jordan Mike

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Speaker 1: colleague in the studios, Brian Kurtz, and he's gonna doozy

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Speaker 1: if a question it's that would it make a difference

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Speaker 1: if China were a free country. I'm going on to say,

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Speaker 1: is it competition or is it politics? Um? So great,

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Speaker 1: great question, Brian. The you know, this is about the

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Speaker 1: most critical developing technologies in the national security space. So

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Speaker 1: these things can be used for everything from automated vehicles,

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Speaker 1: to automated drones, to missiles and to h very very

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Speaker 1: advanced cybersecurity challenges, particularly with cryptography. I think that the states,

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Speaker 1: regardless of their way of government, are competing as as

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Speaker 1: private actors are, and they're competing with all of their might.

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Speaker 1: So we have Anthony blink In today, Secretary of State,

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Speaker 1: picking up on what I thought was kind of an

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Speaker 1: obvious conclusion based on the speech the other night from

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Speaker 1: President Chi that Taiwan has created a much faster timeline.

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Speaker 1: Are I'm sorry, Mainland China has created a much faster

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Speaker 1: timeline for its seizure of Taiwan. Is this How does

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Speaker 1: this enter into the conversation around advanced technologies? So Taiwan

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Speaker 1: is the source of depending on who you talked to,

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Speaker 1: between of the market to include fabrication for certain kinds

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Speaker 1: of next generation semiconductor technologies, you know, particularly the kinds

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Speaker 1: of things that you need to do really really powerful

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Speaker 1: computational exercises. So there's a regional security issue, and then

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Speaker 1: there's also kind of a um a concentration of knowledge

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Speaker 1: there as far as the US and the West are concerned.

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Speaker 1: In addition to the other strategic priorities to keeping Taiwan

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Speaker 1: free UM, the loss of Taiwan would also represent you know,

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Speaker 1: perhaps not a crippling but a very serious setback in

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Speaker 1: terms of access to not just the kinds of semiconductors

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Speaker 1: that we need to power the technology today, but also

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Speaker 1: the problems of the future. And I know it by

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Speaker 1: the way that I suspect that's one of the reasons

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Speaker 1: that the US Chips Act received such why bipartisan support,

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Speaker 1: that there was an overwhelming recognition that the US and

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Speaker 1: the West dependence on on Asia and particularly on Taiwan

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Speaker 1: for advanced technology development was near total. Very interesting times,

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Speaker 1: great conversation, Jordan, Thank you so much for being with us.

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Speaker 1: Jordan Strauss there He is managing director at Kroll. He

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Speaker 1: is also a Kroll Institute Fellow