THANK YOU SO MUCH. WE ARE ZEROING IN ON COUNTERING CHINA RIGHT NOW. THE SENATE PASSED THE INNOVATION AND COMPETITION ACT YESTERDAY. IT FOCUSES ON TECHNOLOGY, INNOVATION AND RESEARCH IN ORDER TO COUNTER THE THREAT FROM CHINA. IT NOW HEADS TO THE HOUSE. EVEN MORE IMPORTANT THAN THIS IS PRESIDENT BIDEN'S EXECUTIVE ORDER LAST WEEK CONCERNING THE SO-CALLED BLACK LIST OF COMPANIES INVESTING IN CHINESE COMPANIES. JOINING ME RIGHT NOW TO DISCUSS ALL OF THIS IS FORMER SENIOR DIRECTOR OF INTERNATIONAL ECONOMIC AFFAIRS AT THE REAGAN NATIONAL SECURITY COUNCIL, HE IS THE FORMER CHAIRMAN OF OF THE SECURITY REVIEW COMMISSION, ROGER ROBINSON, JUNIOR. ROGER, IT'S GREAT TO HAVE YOU BACK. THANKS VERY MUCH FOR BEING HERE THIS MORNING. I'VE GOT PRESIDENT BIDEN'S EXECUTIVE ORDER HERE FROM LAST THURSDAY AND I WANT TO GET YOUR TAKE ON THIS. DOES IT HAVE TEETH? FIRST, ASSESS HOW IMPORTANT THIS TOOL IS FOR THE U.S. IN TERMS OF ITS PUSHBACK ON BAD BEHAVIOR FROM COMMUNIST CHINA. WE HAVE THE WHEREWITHAL IN THIS COUNTRY TO EITHER APPROVE OR NOT INVESTING IN CHINESE COMPANIES THAT ARE TIED TO THE CHINESE MILITARY. YOUR THOUGHTS ON THAT TOOL? >> WELL, I THINK, MARIA, THAT THIS IS ARGUABLY THE MOST POWERFUL AND FEARSOME POLICY TOOL IN AMERICA'S NONMILITARY ARSENAL. THIS IS A WORST NIGHTMARE FOR CHINA IN THE SENSE THAT IT'S ESCAPED FOR TWO DECADES NOW ANY HE FOCUS ON THE MONEY. TRADE, YES. TECHNOLOGY, CERTAINLY. WHERE HAS BEEN THE FACT THAT OVER THAT 20 YEARS THERE'S BEEN A MULTI TRILLION DOLLAR FLOW, A KIND OF FREE LUNCH PROGRAM THAT'S DEFIED REGULATION AND DILIGENCE AND SCREEN. WE DIDN'T EVEN KNOW WHO WAS IN OUR MARKETS AND FOUND TO OUR CHAGRIN THERE WERE A NUMBER OF CORPORATE NATIONAL SECURITY AND HUMAN RIGHTS ABRUIS -- ABUSERS, MANY SANCTIONED BY THE UNITED STATES THAT ARE IN THE PORTFOLIOS OF WELL OVER 100 MILLION UNWITTING RETAIL INVESTORS TODAY. WE HAVE NOW AN IMMENSE NEW SOURCE OF LEVERAGE. AND IT'S SOMETHING THAT NEEDS TO BE USED AND I THINK THAT ALL TO THE GOOD THAT WE FINALLY ARRIVED. MARIA: WELL, THIS IS REALLY IMPORTANT BECAUSE WHEN YOU INVEST IN COMPANIES THAT ARE TIED TO THE CHINESE MILITARY, YOU ARE FUNDING THE EXPANSION OF THE CHINESE MILITARY. AND ITS PLANS TO OVERTAKE THE UNITED STATES. YOU HEARD PRESIDENT BIDEN THE OTHER DAY SAY CHINA BELIEVES IT'S GOING TO OVERTAKE THE U.S. WITHIN 15 YEARS. DO WE WANT TO BE PAYING AND FUNDING FOR THAT EXPANSION OF THE CHINESE MILITARY? PRESIDENT TRUMP TRIED TO PUT THE LAW DOWN THAT YOU COULD NOT INVEST IN ANY CHINESE COMPANIES TIED TO THE CHINESE MILITARY WITH THIS BLACKLIST. ASSESS WHAT PRESIDENT BIDEN DID LAST WEEK. HE EXPANDED THIS BLACKLIST ON U.S. INVESTMENT IN CHINESE COMPANIES, A POLICY ORIGINALLY STARTED UNDER PRESIDENT TRUMP, 59 COMPANIES WITH TIES TO CHINESE MILITARY OR ITS SURVEILLANCE INDUSTRY WILL BE BANNED FROM AMERICAN INVESTMENTS BEGINNING IN AUGUST 2nd. BUT THERE ARE SOME LOOPHOLES HERE AND I WANT TO GO THROUGH THEM. EVERYBODY KNOWS I'M VERY SKEPTICAL OF THE CCP. ASSESS WHAT WE'RE TALKING ABOUT HERE WITH THIS EXECUTIVE ORDER. >> WELL, WHAT YOU JUST MENTIONED IN TERMS OF THE ADDITION OF SURVEILLANCE TECHNOLOGY SECTOR AS ONE OF THE CRITERIA TO APPEAR ON THE LIST IS A BIG DEAL BECAUSE THAT ADVANCES TREMENDOUSLY OUR HUMAN RIGHTS POLICY IN CHINA AND ELSEWHERE AROUND THE WORLD PRESIDENTIALLY. SO I JUST WANT TO UNDERSCORE THAT THAT WAS A PART OF I THINK A NET STRENGTHENING THAT TOOK PLACE HERE, OBVIOUSLY THE CAPITAL MARKET SANCTIONS OF PRESIDENT TRUMP WERE PRESERVED BUT ALSO EXPANDED. NOW, IT'S NOT TO SAY THAT THIS IS GOING TO BE AN EASY HAUL OR A PERFECT PICTURE. FOR EXAMPLE, THE PENTAGON HAS BEEN BASICALLY EXCISED FROM THE PROCESS, THE SO-CALLED PENTAGON PLA LIST I USED TO CALL IT, SECTION 1237, HAS GONE AWAY IN TERMS OF BEING ABLE TO TRIGGER CAPITAL MARKET SANCTIONS SO NOW IT'S JUST THE TREASURY OFFICE OF FOREIGN ASSET CONTROL. THAT IS A VERY POTENT SANCTION AND LIST AS IT WERE. IT'S PROBABLY THE MOST FEARED. BUT AT THE SAME TIME, IT IS RUN BY THE TREASURY DEPARTMENT AND THEY THEY HAVE IN THE PAST AT LEAST TENDED TO BE TOO ALERT AND RESPONSIVE TO WALL STREET'S CONCERNS HERE ON LOOPHOLES AND VARIOUS FINE PRINT, SHALL WE SAY. I THINK THAT IN THIS ADMINISTRATION, I GET TIM PRESS THAT -- GET THE IMPRESSION THAT THAT WALL STREET GRIP ON TREASURY, HOWEVER, HAS WEAKENED CONSIDERABLY AND I THINK IT'S PROVEN IN THE NATURE OF THE ANNOUNCEMENT LAST THURSDAY. MARIA: RIGHT. WELL WE KNOW THAT THERE ARE MANY WALL STREETERS THAT ARE TRYING TO PUSH OTHER CHINESE COMPANIES TO INVEST IN -- I'M TALKING ABOUT PEOPLE LIKE BLACKROCK, LARRY FINK, BRIDGEWATER, RAY DALIO, ALL THE BIG INVESTORS WHO WANT TO INVEST IN CHINA, GOLDMAN SACHS, WHO WANT TO INVEST IN THESE COMPANIES AND I'M WONDER WHACK YOUR THOUGHTS ARE ABOUT -- WONDERING WHAT YOUR THOUGHTS ARE ABOUT NUMBER ONE THE TREASURY IN CHARGE OF THIS LIST, THE TREASURY GETTING BULLIED BY SOME OF THESE WALL STREET FIRMS AND ALSO THERE'S THIS OLD EXECUTIVE -- THE OLD EXECUTIVE ORDER FROM TRUMP AUTOMATICALLY HAD 50% OR MORE OWNED SUBSIDIARIES THAT APEERED ON THE PENTAGON LIST AND I ALSO SEE THAT THERE IS ONE ISSUE THAT I WANT TO TALK TO YOU ABOUT, THE FACT THAT THERE WERE FIVE COMPANIES THAT WERE ON THE INITIAL LIST DID NOT MAKE IT ON THIS NEW LIST. ARE THERE WAYS TO GET AROUND THIS, THE SUBSIDIARIES OF THESE LARGE COMPANIES, CAN INVESTORS INVEST THERE? ARE THERE WAYS THAT WALL STREET IS GOING TO KEEP THEIR CLAWS IN THESE COMPANIES AND KEEP THEIR INVESTORS INVESTED IN COMPANIES IN CHINA THAT ARE TIED TO THE MILITARY, IN YOUR VIEW, ROGER? >> WELL, THAT'S A MULTIFACETED QUESTION BUT LET ME START WITH TREASURY AND THEN MOVE TO THE SUBSIDIARIES. BECAUSE YOU'VE HIT ON SOMETHING TERRIBLY IMPORTANT THERE. AS FAR AS THE TREASURY DEPARTMENT, THEY'VE HAD TO LOOK TO THEMSELVES TO THINK ABOUT WHAT IS THE ALTERNATIVE TO THE FAITHFUL IMPOSITION OF ROBUST CAPITAL MARKET SANCTIONS AGAINST CHINESE CORPORATE NATIONAL SECURITY AND HUMAN RIGHTS ABUSERS, I MEAN, PROTECTING WALL STREET FEES AND CCP'S INTEREST AS OPPOSED TO OUR NATIONAL SECURITY FUNDAMENTAL VALUES AND SCORES OF MILLIONS OF AT-RISK AMERICAN RETAIL INVESTORS. IT'S NOT A VERY APPETIZING CHOICE. I THINK IT'S VERY STARK. I THINK THEY WOKE UP AND SMELLED THE PROVERBIAL COFFEE HERE AND I THINK THAT THAT'S WHY WE HAD A BETTER THAN EXPECTED ANNOUNCEMENT LAST THURSDAY. AS FAR AS THE SUBSIDIARIES ARE CONCERNED, YOU'RE QUITE RIGHT THAT IN THE PREVIOUS EXECUTIVE ORDER, 13959 OF THE PREVIOUS ADMINISTRATION, YOU HAVE AUTOMATICITY IN THE FACT THAT 50% OWNED SUBSIDIARIES OF LISTED COMPANIES THAT WERE AUTOMATICALLY ADDED TO THE LIST. THAT'S NOT THE CASE NOW. THE PROVISION WAS DELETED. NOW YOU HAVE TO HAVE THE SUBSIDIARIES PLACED INDIVIDUALLY ON THE LIST. NOW, THAT OPENS THE DOOR TO CONCERNS BECAUSE A NUMBER OF THESE CORPORATE BAD ACTORS IN CHINA, THE HOLDING COMPANIES, THE PARENT COMPANIES, AREN'T PUBLICLY TRADED. I MOON, THE WAY THEY FUND -- I MEAN, THE WAY THEY FUND THEMSELVES IS THROUGH PUBLIC SUBSIDIARIES. IF YOU PLAY FAST AND LOOSE WITH SUBSIDIARIES YOU COULD BE UNDERMINING FUNDAMENTALLY THIS ENTIRE EXERCISE AND THAT'S A GREAT CONCERN. IT'S GOING TO REQUIRE REAL VIGILANCE ON THE PART OF THE OUTSIDE FOLKS, LIKE MYSELF AND OTHERS, WHO ARE GOING TO MAKE BOOK ON THIS ROUTINELY. MARIA: AND ROGER, WHY WERE FIVE COMPANIES DROPPED FROM THE LIST? YOU ARE ALSO WONDERING THIS. SOME OF THE COMPANIES WERE DROPPED AND THEY WERE ALSO ON THE ENTITIES LIST. SO IS ANYBODY PLAYING FAST AND LOOSE WITH THIS BY DROPPING CERTAIN COMPANIES OFF THAT LIST SO THEY DON'T FACE SANCTIONS? >> WELL, WE DON'T KNOW YET, MARIA. THIS IS STILL A VERY NEW THING. I WILL SAY THAT THE ADMINISTRATION HAS CLAIMED THEY'RE GOING TO START ADDING TO THE LIST VERY SOON. I THINK THE PROOF IS IN THE PROVER
Focus on defeating wall street corruption. That in itself will defeat the CCP. Buy American products. Just saying....