“I believe there is a sensible reply to that for my part, which is intergovernmental agreements that put in place efficient safety and transparency ensures round {hardware}, mannequin weight and know-how, and that is what we have been working by way of in our memorandum of understanding [memorandum of understanding] with the UAE and I imagine that it is a sustainable mannequin for a powerful know-how partnership with this nation in addition to with different international locations that offers the US a sequence of financial and strategic benefits the place the choice is for them to enter the Chinese language know-how orbit, which we don’t want .”
On the forms of commerce agreements Asian nations need:
“I believe what international locations are searching for is turning into extra bespoke. It’s not nearly one type of broad market entry. These are the precise wants of a rustic that is considering its financial mannequin for the long run. And so the financial dialogues we have had with these international locations and the attractiveness of america is about way more than simply: Can we decrease limitations to market entry?’
“So let me offer you some examples. With Japan, they actually needed the Vital Minerals MoU in order that they’d have a path to IRA advantages [Inflation Reduction Act]. That was their primary difficulty, much more vital to them than any broader commerce deal. It’s fairly related with Indonesia. That is what Indonesia is searching for. Primarily, they wish to work out an vital minerals settlement with excessive requirements in order that there could be a movement of Indonesian nickel into American manufacturing of electrical autos, batteries and so forth with different international locations.
On whether or not American staff and industries benefited from earlier free commerce agreements:
“So the place do staff match into this? Now you possibly can say, effectively, staff match into that. They may get items at a lower cost and that is good for them and to some extent it’s, so I am not in opposition to free commerce. However there needs to be some ingredient of principle about how the US industrial base is maintained, the capability to construct right here, and so I really suppose issues just like the IRA [Inflation Reduction Act] and a vital minerals settlement with Japan are a extra rational approach to consider free commerce sooner or later.
On what Mr. Sullivan realized from his conferences with Mr. Xi and Mr. Wang:
“The largest factor that stands proud to me comes from the assembly with Xi — and it was strengthened within the assembly that President Biden had with Xi, in addition to rather a lot within the conferences with Wang Yi, however interrupted — which is my view that when got here into workplace, the Chinese language view was: If you are going to compete with us, then we’re not going to cooperate with you, and we’re not going to have strains of communication. You’ll be able to’t have it each methods. You must select. And we’re simply sticking to our principle, which is managed competitors: We’ll compete, we will compete vigorously, however that does not imply we should not discover areas to work collectively the place it is in our mutual curiosity on the identical time that we compete. And to compete responsibly, we will need to have communication in any respect ranges, together with sustaining military-to-military communication.”
“As we go away, PRC [People’s Republic of China] has adopted, at the very least for now, not in the way in which they speak, however in the way in which relationships are carried out, a managed competitors. We discovered areas to work collectively: counter-narcotics, AI, nuclear danger and local weather. We’ve sustained communication, together with military-to-military communication, and we compete, clearly we compete vigorously, however nonetheless the connection has a component of stability, so we’re not on the verge of a downward spiral proper now. This can be a important evolution over 4 years in the way in which the connection is managed by either side, and is according to our relationship administration principle, which the PRC already displays.”
