Investors Watch as US, China Tensions Renew

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00:00Are we expecting a detente? Are we expecting a pullback from the brink? Because Friday it felt

00:05very much alive and well when it comes to anxiety. Well, I think what we're seeing is that this type

00:11of volatility is just the cost of doing business with a totalitarian state. And as long as it

00:16involves China, volatility and uncertainty in the market is really going to be a fact rather

00:22than a problem. And so I'd say there's two really important things here for business leaders to

00:26understand as we watch these negotiations continue. First is that every time that there's a 90-day

00:33extension here, it's not really a pause. We're just entering another inning of negotiations. And so

00:39this type of posturing is going to continue to happen. And markets need to bake that in. So

00:45it's like make a note for February because if we get to November and then we get another extension,

00:51then this is all going to happen again. So it's piece number one. Second, and even more importantly,

00:56is even when we have an agreement, we are doing business with a totalitarian state in the Chinese

01:03Communist Party. So we still can't relax because they aren't in the business of honoring agreements

01:09up until the point that it becomes inconvenient for them. And so real stability here in the long

01:16term isn't going to happen until not just when there's another agreement, but real stability is

01:21going to come from when there's total American dominance in the next generation of industries.

01:26So China becomes a non-issue. Well, let's talk about rare earths, for example. We had the CTO of

01:31Palantir, Michelle, on the show on Friday. And really, Shamsankar was saying he thinks the leverage

01:37is being exerted by China right here, right now because of the independence starting to be shown

01:41with MP materials in the state being built there. The idea that the U.S. has got the memo that they need

01:47to be more dependent on themselves for rare earths. Is that the reality here? And how quickly can that

01:51unfold? Yeah, I think all of this is going to be a tit for tat and a grinding incremental struggle

01:57until the United States pulls away. And, you know, you mentioned Palantir. I know you were also

02:01talking to Palmer Luckey at Anderol last week. When you think about total American dominance in the

02:08next generation of industries, that's going to come from the private sector. And so what we're watching on a

02:12day-by-day basis is the governments go back and forth. And our government in the United States

02:17plays a really important role when it comes to defense, export controls, leveling the playing

02:22field like with tariffs. But when it comes to offense, that is going to be a private sector role.

02:27We have to build new technologies. We have to manufacture them here at home. We have to create

02:32new categories. We have to regain control over materials, over all of our supply chains. And we have

02:37to move really fast. And so you mentioned the investment at J.P. Morgan now, pumping billions.

02:42Or a trillion and a half dollars into really important national security industries.

02:46You talked about Palantir, Anderol. I was in Austin last week with the team at Ceronic doing

02:51really amazing things with the next generation of autonomous vessels, building them here at home

02:55with speed and scale. That is what victory looks like. The J.P. Morgan event and, well, signaling

03:02is $500 billion more than perhaps would have been anticipated, one and a half trillion. What really can

03:07they do in terms of funneling, channeling money to these sorts of key industries? Because many would

03:13say, look, this is just the right sort of lip service you need to pay to the current administration.

03:19Well, I think when they're pumping capital into really important businesses and industries, what

03:23they're allowing them to do is go faster. And I think that's been the name of the game here. China has a

03:27competitive edge because they can move fast since they're a very top-down totalitarian state. Here in

03:33the United States, speed has to be our next weapon. And so pumping capital into these really important

03:40industries is just going to enable us to move faster, to build, to rebuild, and to dominate

03:45these important sectors in order for us to lead the 21st century.

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