Defeating China Inc

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The Hon. Keith J. Krach Chairman & Founder, Center for Technology Diplomacy at Purdue Former Undersecretary of State (unanimously confirmed) Chairman & CEO of DocuSign & Ariba Congressional U.S. China Working Group July 30, 2021 Defeating China Inc

Transcript of Defeating China Inc

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The Hon. Keith J. KrachChairman & Founder, Center for Technology Diplomacy at Purdue

Former Undersecretary of State (unanimously confirmed)

Chairman & CEO of DocuSign & Ariba

Congressional U.S. China Working GroupJuly 30, 2021

Defeating China Inc

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GLOBAL ECONOMIC SECURITY STRATEGY

October 11, 2019 Unclassified

Proactive Integrated Strategic Plan & Execution Mechanism

Keith Krach Under Secretary of State

Chief of Mission Conference

U.S. DEPARTMENT of STATE

FEBRU ARY 26 , 2020

Under Secretary Keith J. Krach

SENSITIVE BUT UNCLASSIFIED

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Senator Coons question on China Strategy

“ I would harness the 3 biggest areas of US competitive advantage by rallying our allies and partners, leveraging the innovation and resources of the private sector, and amplifying the moral high ground of democratic values.”

--Krach Senate Confirmation Hearing

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Mission

Develop and Operationalize a Global Economic Security Strategy

That Drives Economic Growth, Maximizes National Security and

Combats China’s Economic Aggression

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UNDER SECRETARYOF STATE

Keith Krach

EB Assistant Secretary Manisha

Singh

ENR Assistant Secretary

Francis Fannon

OES Acting Assistant Secretary Jonathan

Moore

Chief Economist

Sharon Brown-Hruska

ScienceAdvisor &

CTOMung

Chiang

Acting S/R for Strategic Partnerships

Thomas Debass

Chief Speechwriter

RobertNoel

Social Media SpecialistProtected

Staff AssistantYvette Jenkins

Staff AssistantJoyce Douglas

Chief of StaffKent Logsdon

Staff Assistant Fah Conn

Chief Econ. Field

OfficerProtected

Chief Operating

OfficerZara Larsen

Special Officer

Protected

Chief Strategy Officer

Paul Touw

Special Officer

Protected

Chief BankingOfficerFrank

Dunlevy

Special Officer

Protected

Chief Strategic Planning Officer

Jim Shinn

Chief BusinessOfficer

Hiro Rodriguez

Special Officer

Protected

Chief FinanceOfficer

Ed Kinsey

Special Officer

Protected

Chief IndustryOfficerMarc

Carlson

Special Officer

Protected

Chief Competition

OfficerProtected

Chief Business

Dev. OfficerDavid Fogel

Chief Marketing

OfficerLen

Khodorkovsky

Senior AdvisorJohn Duncan

Special Assistant Ryan Berger

Senior AdvisorAmbassador Bernicat

Chief PolicyOfficer

James Rockas

Private SectorCareer TeamSenate Confirmed

THE E-TEAMPlus The E-Family’s3,000 Field Officers,

Tech & Econ Specialists

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GLOBAL ECONOMIC SECURITY STRATEGY

October 11, 2019 Unclassified

Proactive Integrated Strategic Plan & Execution Mechanism

Keith Krach Under Secretary of State

3 PILLARS of GESS

➢ I. Turbo-Charge US Economic Competitiveness & Innovation

➢ II. Safeguard America’s Assets

➢ III. Build a Network of Trusted Partners

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PILLAR I

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PILLAR I

PILLAR I

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U.S. DIGITAL DOLLAR

U.S. Department of State, September 12, 2019

G L O B A L E C O N O M I C S E C U R I T Y S T R A T E G Y

Ramifications for the U.S. Dollar and

and the Future of Money

PILLAR II

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PILLAR II

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PILLAR II

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PILLAR III

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PILLAR III

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5

Objectives

1. Defeat CCP 5G Masterplan to Open the Market for US Entrants

2. Deliver an Enduring Model for Competing with China Inc.

3. Build an Alliance of Like-Minded Nations and Companies that

Operate by a Set of Democratic Trust Principles

4. Use 5G to Create a Platform for All Areas of Tech & Economic

Competition.

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Trust Principles

Respect for:

• Rule of Law

• Property

• Sovereignty of Nations

• Labor

• Human Rights

• The Planet

.

• Accountability

• Integrity

• Transparency

• Reciprocity

• Liberty

+ =

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Architectural Foundation for The Clean Network

Clean Network Playbook

Force Accelerate

U.S. Strategic Advantages

Leverage State’s China LOEs

Strategy

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Measurements Clean Competition Results Network Coalitions Total Clean

OKM Global GDP1 76% Nokia 5G contracts 196 EU Members 27 26

Clean Countries Global GDP2 67% Ericsson 5G contracts 131 NATO Allies 30 27

Clean Path Global GDP3 74% Huawei 5G contracts4 ?? Three Seas Nations 12 11

Clean Countries 60 Nokia market cap5 89% Quad Members 4 4

Clean Telcos 200+ Ericsson market cap5 65% Five Eyes Members 5 5

Clean Companies +++ Huawei market cap6 ?? G7 Members 7 7

OBJECTIVE 1 METRICS: REVERSE HUAWEI’S MOMENTUM & DEFEAT CCP 5G MASTERPLAN

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OBJECTIVE 2: DELIVER A VERIFIED ENDURING COMPETITIVE MODEL

10 Key Elements Results Verification +/-

1. EXECUTABILITY Perfected on countermeasures; bloodied on competitive battlefield +

2.MEASURABILITY Achieved tangible results; from metrics within timeframe +

3. PROVABILITY Defeated Huawei; demonstrated China Inc. is beatable +

4. AFFORDABILITY No new funds; no new manpower +

5. PRACTICALITY Not dependent on Congress, Exec Orders or company acquisitions. +

6. SCALABILITY Success on a global scale; easily configured to suit local needs +

7.REPEATABILITY Strategies, sequencing systematized; trust positioning works for all sectors +

8. VIRALITY Cumulative effect proven; tipping point reached in Europe +

9. MARKETABILITY Viable brand established; seized the moral high ground. +

10. APPLICABILITY Expanded to 5 tech areas + semi; infrastructure, minerals, labor, funds +

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1

#3,4: Network of Trusted Partners

Leve

rage

Global Strength

Operation Marlin Playbook

5G Clean Path/Clean Networks

The Clean Network (alliance)

Clean Digital Initiatives I*, II

Clean Infrastructure & Clean Currency

Clean Energy &Clean Investments

The Clean Network Growth Strategy

The Clean Network Tornado

Current Execution Phase is Here

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OBJECTIVE 3: USE 5G TO CREATE A PLATFORM FOR ALL AREAS TECHNO-ECONOMIC COMPETITION

Clean Lines Program Status Beachhead Model Work TD-10 Trust Level Field Engagement

Clean Path (5G) Advanced Yes working Yes Yes No 60 Countries

Clean Carrier Announced Yes Yes Yes Yes No Limited

Clean Store Announced Yes Yes Yes Yes No No Activity

Clean App Underway Yes Yes Yes Yes No Stalled

Clean Cable Underway Yes working Yes Yes No good Success

Clean Cloud Announced Yes Yes Yes Yes No T, A, B

Clean Things (IOT) Pre-announced Yes Yes Yes Yes No Limited

Clean Drones Pre-announced Yes Yes Yes Yes No Defensive

Clean Data Pre-announced Yes Yes Yes Yes No Limited

Clean Currency Pre-announced Yes ? Yes Yes No Studies Only

Clean Quantum --- No ? Yes Yes ? Limited

Clean AI Some Policy Yes Yes Yes Yes No Limited

Clean Cars --- ? ? Yes Yes No No Activity

Clean Semi Onshoring No Limited Yes Yes No success

Clean Energy Policy Yes Yes Yes Yes No Priority

Clean Minerals ERGI Yes working Yes Yes No 20 Countries

Clean Infrastructure Blue Dot Yes Stalled No Yes No 16 Countries

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OBJECTIVE 4: BUILD AN ALLIANCE OF COUNTRIES AND COMPANIES

::

➢ 60 Clean Countries

➢ 200+ Clean Telcos

➢ 26 of 27 EU Members

➢ 27 of 30 NATO Allies

➢ 31 of 37 OECD Members

➢ 11 of 12 Three Seas nations

➢ 67% of Global GDP

➢All Quad Members

➢All Five Eyes Members

➢ Powerful High-Tech Clean Companies

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What’s next:• Sept. 20 – Sept. 23, 2021: Concordia Annual Summit at the U.N.

General Assembly, in partnership with the Atlantic Council, with

Fortune 20 CEOs and policymakers.

• November 2021: Heartland Technology Jobs Summit… location

TBD…

• Research… polling… mission-oriented advocacy… an asset for

policymakers.

Keith J. Krach

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APPENDIX

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