WEBVTT - Jordan Strauss on Chips (Audio)

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<v Speaker 1>All right, let's get over to our next guest, because

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<v Speaker 1>we're being told that the US is exploring the possibility

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<v Speaker 1>of new export controls that would limit China's access to

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<v Speaker 1>some of the most powerful emerging computing technologies. Were joined

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<v Speaker 1>them by Jordan Strauss, Kroll Managing Director and Kroll Institute Fellow. Jordan,

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<v Speaker 1>thank you for joining us. Let's just look at what

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<v Speaker 1>is perhaps the bigger picture here. This is about not

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<v Speaker 1>just semiconductors, which is a very very wide subject, but

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<v Speaker 1>also in technologies to do with AI and quantum computing.

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<v Speaker 1>Is it now really explicit that the wine House is

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<v Speaker 1>doubling down in its efforts to contain China. Hey, risch

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<v Speaker 1>It's nice to spend the morning with Hugh and Bloomberg.

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<v Speaker 1>Absolutely clear. We've seen that happen over the past few

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<v Speaker 1>weeks where the Biden administration has finally settled on and

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<v Speaker 1>really doubled down on a very aggressive strategy. You saw

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<v Speaker 1>that two weeks ago with the release of the new

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<v Speaker 1>National Security Strategy, which identifies China as primary geopolitical competitor

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<v Speaker 1>in the world with the United States, with the change

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<v Speaker 1>in UM verification for certain Chinese companies that are engaged

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<v Speaker 1>in advanced semiconductor research, and these rumors are are certainly

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<v Speaker 1>fitting with all of that. You know, it's clear that,

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<v Speaker 1>you know, the future of national security and national prosperity

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<v Speaker 1>as much as it's been energy for the last hundred years,

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<v Speaker 1>is high technology, is quantum AI and other chip enabled stuff.

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<v Speaker 1>So you know, the Biden administration is recognizing that the

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<v Speaker 1>chips are the new oil, and they're doing everything they

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<v Speaker 1>can to try to create a competitive advantage for America.

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<v Speaker 1>So in terms of timing, Jordan, do you think that

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<v Speaker 1>the horse has left the barn so to speak? I mean,

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<v Speaker 1>is there still time to contain China in this in

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<v Speaker 1>this way or have they already or the country at

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<v Speaker 1>large as it kind of advanced its own ambition to

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<v Speaker 1>the extent that they have done work in quantum computing

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<v Speaker 1>and AI. So there's been a lot of very healthy

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<v Speaker 1>competition between the current great powers in this space and

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<v Speaker 1>that will continue. You know, I think that the administration's

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<v Speaker 1>actions and the actions that other Western governments are considering um.

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<v Speaker 1>You know, in the United States, the passage of the

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<v Speaker 1>so called Chips act Um and the Western equivalents of

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<v Speaker 1>that that are likely about to pass in a few

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<v Speaker 1>European countries have made clear that everybody is trying to

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<v Speaker 1>bring this stuff closer to their shores to build a

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<v Speaker 1>domestic ability to conduct R and D and to conduct

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<v Speaker 1>fabrication of advanced technologies. I would say, by the way,

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<v Speaker 1>that that competition is good, and not just good long

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<v Speaker 1>term for companies that are engaged in this, but good

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

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<v Speaker 1>been so much tension for the last twenty years that

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<v Speaker 1>it I think short of a real diplomatic or scientific breakthrough, Um,

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<v Speaker 1>you know, the next the next year or two are

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<v Speaker 1>probably gonna be fairly difficult to navigate. UM. Jordan Mike

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<v Speaker 1>colleague in the studios, Brian Kurtz, and he's gonna doozy

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<v Speaker 1>if a question it's that would it make a difference

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

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<v Speaker 1>is it competition or is it politics? Um? So great,

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<v Speaker 1>great question, Brian. The you know, this is about the

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<v Speaker 1>most critical developing technologies in the national security space. So

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<v Speaker 1>these things can be used for everything from automated vehicles,

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<v Speaker 1>to automated drones, to missiles and to h very very

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<v Speaker 1>advanced cybersecurity challenges, particularly with cryptography. I think that the states,

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<v Speaker 1>regardless of their way of government, are competing as as

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

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<v Speaker 1>So we have Anthony blink In today, Secretary of State,

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<v Speaker 1>picking up on what I thought was kind of an

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<v Speaker 1>obvious conclusion based on the speech the other night from

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<v Speaker 1>President Chi that Taiwan has created a much faster timeline.

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<v Speaker 1>Are I'm sorry, Mainland China has created a much faster

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<v Speaker 1>timeline for its seizure of Taiwan. Is this How does

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<v Speaker 1>this enter into the conversation around advanced technologies? So Taiwan

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<v Speaker 1>is the source of depending on who you talked to,

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<v Speaker 1>between of the market to include fabrication for certain kinds

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<v Speaker 1>of next generation semiconductor technologies, you know, particularly the kinds

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<v Speaker 1>of things that you need to do really really powerful

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

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<v Speaker 1>there's also kind of a um a concentration of knowledge

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<v Speaker 1>there as far as the US and the West are concerned.

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<v Speaker 1>In addition to the other strategic priorities to keeping Taiwan

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<v Speaker 1>free UM, the loss of Taiwan would also represent you know,

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<v Speaker 1>perhaps not a crippling but a very serious setback in

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<v Speaker 1>terms of access to not just the kinds of semiconductors

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<v Speaker 1>that we need to power the technology today, but also

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<v Speaker 1>the problems of the future. And I know it by

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<v Speaker 1>the way that I suspect that's one of the reasons

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<v Speaker 1>that the US Chips Act received such why bipartisan support,

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<v Speaker 1>that there was an overwhelming recognition that the US and

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<v Speaker 1>the West dependence on on Asia and particularly on Taiwan

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<v Speaker 1>for advanced technology development was near total. Very interesting times,

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<v Speaker 1>great conversation, Jordan, Thank you so much for being with us.

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<v Speaker 1>Jordan Strauss there He is managing director at Kroll. He

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<v Speaker 1>is also a Kroll Institute Fellow