U.S. Secretary of Commerce Gina Raimondo joins the Live Show to discuss the SelectUSA Investment Summit, the debt ceiling debate, the threat from China, TikTok, AI, the CHIPS Act, and how business leaders around the world are reacting to these topics.

Video Transcript

- Commerce Secretary Gina Raimondo taking part in the SelectUSA summit this week focusing on foreign investment in the United States. I sat down with Secretary Raimondo and got her take on the threat from China, the debt ceiling debate, and artificial intelligence. I first asked Secretary Raimondo about how business leaders from around the world are feeling in this environment.

GINA RAIMONDO: Amazing. It's the buzz here. This is my third time as secretary hosting this foreign direct investment event. And I've never seen a buzz and enthusiasm and excitement like there is here today. Countries have sent their biggest delegations. We've broken all kinds of records. And I think, Seana, a lot of it is because they want to invest in America now to take advantage of the CHIPS Act, the Inflation Reduction Act, the infrastructure investments that are being made under President Biden's leadership.

- And, Secretary, when it comes to some of the issues facing the economy today, we have certainly seen increased turmoil within the banking sector this week. Also, concerns rising about the standoff surrounding the debt ceiling. What are some of those implications for businesses and what business leaders need to keep in mind at a time like this?

GINA RAIMONDO: Yes. Here at this conference, which is non-US companies looking to make investments in the US, I haven't heard that. What I have heard is the Inflation Reduction Act is amazing and we want to bring our battery facility to the United States, we want to make electric vehicles in the United States, et cetera.

I will say, though, when I talk to US CEOs, there's a lot of anxiety about the debt ceiling and a view that it's not time to play politics. It's time to do the right thing. Every business pays their bills. This is to pay bills we've already incurred. And so I do hear a lot of anxiety that Congress needs to do its job because the last thing that markets need and the economy needs is that kind of a disruption right now.

- And, Secretary, another issue that certainly has Congress's attention is the rising tension here between the US and China. I'm sure that that is something that has come up at the summit this week. What's your message to executives, to investors who are navigating this rift here between the US and China?

GINA RAIMONDO: It's interesting. We have a very large delegation here from China, almost 100 companies as compared to, say, 40 companies just a couple of years ago. So these Chinese businesses realize what we know, which is America is the best place to do business, the best place to start a business. And we welcome that. What we don't want to do is allow our cutting-edge technology and critical technology where we're ahead of China, we can't allow that to be sold to China and used in China's military.

And so we're going to protect that and ferociously. But the truth of it is they're still one of our biggest trading partners. We still need to trade and do it in a way that creates jobs for Americans, but, of course, never interferes with our national security.

- And, Secretary, speaking of national security, of course, with the tensions rising with China, TikTok has been front and center. And the push to ban TikTok has been growing louder inside Washington. I know that you have been vocal in the past about how a ban might not be the best way to go. You've also discussed some of the risk there of potentially losing younger voters. How do we then address those national security concerns without an outright ban?

GINA RAIMONDO: Yes. So I think it's never really a great idea to make policy around a single company. Instead, we should say, what are the risks posed to Americans, Americans' privacy, Americans' safety, Americans' mental health and national security because of technology or because of connected apps and then to legislate and regulate for that category.

And there's a bill now weaving its way through Congress with bipartisan support called the Restrict Act, which I support. I think it's a smart and thoughtful way to look at these very real risks but to do it in a way that's comprehensive and not just after one particular company. We have to get out of the whack-a-mole business because once you put a lid on one company, something else will pop up. And so I think we have to be more comprehensive and thoughtful about our policy making.

- Turning to another subject that I know is top of mind for you this week, you are going to be meeting with a number of top tech executives tomorrow on AI. And this comes at a time when Elon Musk, Bill Gates among some of the biggest names here within the tech sector that have warned about the risks surrounding AI. My question to you is, should development be paused until regulations within the sector are put in place?

GINA RAIMONDO: When social media and such was being developed, there was this mantra of move fast and break things. We can't allow that to happen here, which is to say AI is exciting. It brings about incredible opportunities for advances in business, health care, education. However, with those opportunities come substantial risk, risk that we may not even understand fully today.

And so tomorrow's meeting is one of many meetings which we are having with a broad group of stakeholders to say, what's the right balance? How do we move forward, innovating at pace, leading the world in AI, not slowing down because we don't want to get behind the rest of the world, but-- but, but-- in a way that is safe and protects us, protects our privacy, protects us from cyber risks, protects us from deepfakes and misinformation? And so this is complicated, probably the most complicated tech policy discussion possibly that we've ever had. And the administration wants to be very serious and thoughtful about it.

- And one of the concerns out there when it comes to AI is the impact that it is going to have on jobs. And we've already seen some companies, including IBM this week, saying that they are going to pause or potentially adjust hiring plans because of AI. What do you say to Americans who are concerned about their jobs?

GINA RAIMONDO: I say that that is one of the things we're looking at as we think about how to create policies for AI to make sure Americans don't get hurt. I mean, look, there is no question that AI will change the way we work. And in many ways, that will be a good thing. It will make our jobs easier. It will make us more effective. It will make us more productive. But it's also true that it's a brand new technology that's very powerful. And that's why we have to be thoughtful to make sure people don't get hurt.

- Talk about focus here on the US, investing in the US. Let's talk a little bit more about the CHIPS Act, which you mentioned earlier. About 200 companies here, your department has said, are interested in the funding. I know that there has been some pushback among some companies as well as some lawmakers on some of the conditions that are included for funding. And that includes child care, also encouraging the use of union labor. And then, of course, restrictions around investing in China. Is there any potential, do you think, for this pushback to at all challenge the program's success?

GINA RAIMONDO: No, not at all. And, in fact, I think the facts suggest that that's not happening because in a matter of a few weeks when we put out the application, we've received over 200 statements of interest from companies in America and all over the world saying that they would like to participate. I mean, we are vastly oversubscribed. Obviously, not everybody who wants money will be able to receive it.

I will say I have heard from certain politicians and pundits that the conditions are a problem. I have not heard that from industry. Not at all. Quite the opposite. What I hear from industry leaders is child care is a good idea because they're struggling to fill their open positions and they need to have more creative ways to attract and retain women. I hear from them that they want workforce plans. And they want us to help them to develop these workforce plans. So the conditions that we've imposed are all designed to make these projects more effective, more efficient, more productive. I haven't gotten pushback from the companies. And as I say, already over 200 have said they want to participate.

- All right. Thanks right there to Secretary Gina Raimondo.