Technology, Foreign Policy and National Security (L4S)

China's Aggressive Behaviors and Economic Impact

• China's aggressive actions, including military activities in the South China Sea and economic aggression against the US, pose significant challenges.
• Tensions arise between business interests and national security concerns, as major US corporations view China as a lucrative market.

The Chinese Communist Party's Strategy

• The Chinese Communist Party (CCP) employs a strategy of "three Cs": coopt, coerce, and conceal, to gain advantages over other countries.

Mitigating Risks and Reducing Dependence on China

• The US should reduce its dependence on China and diversify supply chains to mitigate risks.
• Decoupling from China does not imply isolation, but rather reducing risks and maintaining positive contact with non-adversarial Chinese entities.
• Scrutinize Chinese outbound investments that may fund military capabilities that could be used against the US.
• Avoid assisting China in developing a differential technological advantage with military applications.
• Refrain from aiding China in perfecting its technologically enabled Orwellian police state or committing crimes against humanity.
• Prioritize long-term viability over short-term returns associated with Chinese entities or investments.

Engaging with Chinese People and Corporations

• Engage with Chinese people and corporations that are not arms of the Chinese government, recognizing the difficulty in distinguishing them.
• The private sector should conduct due diligence to minimize risks associated with Chinese entities or individuals, especially in sensitive research areas.
• Protect Chinese students in US universities from intimidation by the Chinese government and provide them with a positive experience.
• Find ways to circumvent the Chinese firewall and provide Chinese people with alternative sources of information beyond state-controlled media.

Collaboration and Cybersecurity

• Increase cooperation between the government and the private sector to identify and engage with legitimate Chinese entities while excluding those with malicious intent.
• Recognize the limitations of government action and the importance of private sector solutions, such as implementing robust cybersecurity measures and conducting thorough due diligence.
• Emphasize the significance of comprehensive cybersecurity measures to protect against evolving threats and the need for collaboration across industries to share best practices and information.

Addressing China's Economic Aggression

• International cooperation is crucial in addressing the weaponization of China's mercantilist model and various forms of economic aggression.
• Commend the Biden administration's application of economic statecraft, including export controls and tariffs, but recognize the need for a multinational approach, prioritizing cooperation with European countries, the UK, and Japan.

Supply Chain Resilience and Investment Risks

• Supply chains have become biased toward efficiency over resilience, and the government has a role in exposing risks and creating incentives for more resilient supply chains.
• China's lack of transparency and fundamental issues, such as genocide and forced labor, pose regulatory and reputational risks for investors and businesses.
• The Chinese economy resembles a Ponzi scheme, with concerns about its debt crisis, real estate crisis, and attempts to reduce transparency.
• Investors should be cautious and recognize the high risks associated with investments in China.
• Express concerns about investing in China due to increasing regulatory risks in various sectors, including tech, private education, and healthcare.
• Suggest looking for investment opportunities elsewhere, particularly in areas that can improve supply chain resilience and reduce reliance on China.

Countering China's Threats

• Propose offensive strategies, such as mobilizing private capital and leveraging America's entrepreneurialism, to maintain competitive advantages in critical technologies.
• Emphasize the importance of immigration reform and granting visas to international students and skilled individuals to attract and retain human capital in the United States.
• Cite the example of George H.W. Bush's decision in 1989 to grant green cards to Chinese students in the US, which resulted in many successful entrepreneurs and professionals.
• Believe that the US has untapped competitive advantages in human capital and should utilize them more effectively.