Arthur Kroeber

And so in my ideal world, you would have a lot more Chinese investment in the United States, but it would be very carefully regulated.

In the same way that China very carefully regulates the direct investments by foreign companies in its economy, they have very strict rules about data localization, et cetera, et cetera.

So I think that could be achieved.

I think it will be very, very difficult in the current political environment.

And then just in terms of sort of the grand bargain that you suggest is China is very interested in not being pigeonholed.

They didn't want to be pigeonholed in low-value-added manufacturing.

They wanted to do the high-tech stuff.

Now they're doing that.

They don't want to be pigeonholed in manufacturing.

They want all of technology, including AI.

So I don't think that any strategy –

which is premised on the idea that China should accept arbitrary limits on what it can do, is viable.

Because would we accept that?

Absolutely not.

And so why should we expect them to accept something that we would consider an absurd and completely unreasonable infringement on our sovereignty?

It just doesn't work that way.

So if you go back to the early 1990s,

China recognized that pretty much every other country that had gotten rich had done so in large part by building up an automotive industry that then served as a mechanism for creating innovations in other sectors.

You look at the U.S.,

You look at Germany, you look at Japan, you look even at Korea, which is very successful.