00:00It's very simple. He had said that he intended to meet with Xi in two weeks' time, now doesn't see a reason to do so.
00:07He threatened to massively increase tariffs on Chinese goods and says that China is becoming increasingly hostile.
00:13When you and I met in January, you opened our entire conversation with a forecast on where you felt the relationship between U.S. and China was going.
00:21Were you right?
00:23Yeah, I think so. I mean, the reality is that our interests are relatively divergent at this point.
00:29And that's particularly true when it comes to semiconductors, when it comes to Taiwan.
00:34And so Trump, I think what he's doing right now is he's playing the art of the deal.
00:39He's trying to get the best deal that he can.
00:42And I understand that he has to manage this reality that right now we are kind of dependent on China for a lot of things.
00:50But I think what we talked about last time is this is why we need to re-industrialize.
00:56This is why we need to have our own rare earth supply.
00:57This is why we need to be able to make our own chips and our own computers and our own products downstream, because it takes away leverage from China.
01:03They do have a lot of leverage right now.
01:05And so it's very hard to make deals with them.
01:09I think it's actually healthy for the U.S.-China relationship for it to not be so dependent on China.
01:15Right now, we don't have great solutions.
01:17Can you kind of quantify it?
01:19I mean, so you're so involved in Arsenal 1.
01:20We will talk about that.
01:22But right now, the weapons that Anderil makes and the autonomous systems, how dependent is that specific supply chain at this moment on China?
01:31Anderil's done a uniquely good job of getting away from China versus not just other defense companies, but also compared to most American companies in general.
01:38Remember that we are sanctioned by China.
01:41Remember that our executives are personally sanctioned by China.
01:45And so we have we can't we're not doing this for leverage or negotiating reasons.
01:51We have to get off of Chinese supply chain and not just things that are literally made in China, but even things that are dependent on China.
01:58So if it's dependent on Chinese precursor chemicals or Chinese equipment or machinery or processing, we have to make very aggressive moves to stay away from that and keep a U.S. and allied supply chain to the absolute greatest extent possible.
02:13So I would say Anderil is not even really what I'm concerned about.
02:16It's the broader economy and maybe some other defense companies.
02:20If you can believe it, there's lots of U.S. defense companies that haven't been sanctioned by China.
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