Gina Raimondo on How European Industry Is Getting Crushed | Odd Lots

Gina Raimondo expresses concern that most Americans associate AI with job loss anxiety. She emphasizes the importance of winning the AI race against China and believes overregulation would hinder progress. Raimondo notes strained relations between the U.S. and Europe, saying their patience is wearing thin. She acknowledges President Trump's point about European countries not contributing enough to NATO but criticizes the execution of his approach. Raimondo stresses the necessity of allied cooperation, including Europe, to effectively compete with China economically and technologically, calling it a mistake to alienate allies.

Raimondo warns that China's economic strategy of subsidizing and dumping cheap products into global markets, particularly Europe and Africa, distorts prices and makes it impossible for others to compete. She notes a surge in Chinese imports to Europe, potentially crushing the German industrial base. She argues that a weak European economy and technology sector are detrimental to both Europe and the U.S., which needs strong allies. While military focus is important, the economic and supply chain vulnerabilities are being overlooked, similar to the U.S.'s past neglect of its own supply chains.

Raimondo defends trade with China as beneficial, creating jobs and enabling competition, with most trade unrelated to national security. She supports commercial and diplomatic engagement to reduce conflict risks. The concern arises when selling sophisticated chips or AI technology to China. The discussion addresses the use of Chinese open-source AI models like Quen by U.S. corporations, which is considered less concerning if data, privacy, and cyber controls are in place.

Raimondo discusses the transition to an AI-driven economy, emphasizing the need to address public anxiety about job losses. She warns against over-regulation that could hinder AI progress and advocates for investment to outpace China in core technologies. She stresses that winning the AI race requires more than just technological superiority; it also demands support systems and incentives to mitigate potential unemployment and social unrest. She calls for government, companies, and policymakers to collaborate on new policies and systems to ensure a successful transition.

Raimondo expresses concern that politicians are overwhelmed by fear regarding AI's potential domestic destabilization. She suggests incentivizing companies to invest AI gains into new job creation. She criticizes the current state of post-high school education, noting low completion rates and graduates burdened with debt. The discussion touches on the need for education reform to prepare individuals for the changing job market.

The conversation shifts to the CHIPS Act, with Raimondo confirming AI was a consideration when instituting controls. She notes that the CHIPS program has largely survived political transitions due to its bipartisan support. She contrasts this with the Inflation Reduction Act, which faced immediate challenges due to its partisan passage. Raimondo emphasizes the importance of bipartisan support for long-term policy continuity.

Raimondo responds to the concept of a "polyamorous global trading order" by advocating for practicality and balancing commerce, national security, and conflict avoidance. She recounts advocating for closer ties with countries like Indonesia and the Philippines for resources, despite concerns about labor and environmental standards. She emphasizes the need to "kiss and make up with Europe" and strengthen ties with democracies while acknowledging the need to work with other nations for mutual benefit and de-escalation.