Episode summary
Raimondo on How European Industry Is Getting Crushed | Odd Lots
Odd Lots
· · 48 min · Hosts: Tracy Alloway, Joe Weisenthal · Guests: Gina Raimondo
Summary
Gina Raimondo argues that the U.S. should not treat fraying relations with Europe as a reason to abandon allied economic strategy. She says Washington cannot compete with China on technology and industrial policy without Europe, Southeast Asia, and other partners, and she warns that “pissing off all our allies” is the biggest mistake in the current China strategy. In her view, Europe is also making a serious error by getting closer to China, because Chinese subsidies and dumping are hollowing out industrial bases, especially in Germany’s chemicals and auto sectors.
She also makes the case that the CHIPS Act has largely worked because it was bipartisan and because the U.S. still needs a diversified supply chain rather than full self-sufficiency. Raimondo says America should make the most critical things at home while working with allies on the rest, since even advanced chip production still depends on packaging, substrates, and other inputs sourced abroad.
The other major theme is AI. Raimondo says she is optimistic that AI will create more jobs, new industries, and new small businesses, but she is worried about the transition: layoffs, weak unemployment insurance, and a lack of “transition insurance” could produce unrest and destabilize democracy. She urges new policies and incentives so companies, states, and the federal government help workers bridge the gap instead of waiting for a crisis.
Key takeaways
- Raimondo says the U.S. cannot compete with China economically or technologically without allies, and she calls alienating Europe the biggest mistake in the current China strategy.
- She argues Europe should not cozy up to China, because Chinese imports and subsidies are already crushing industrial competitors, especially in Germany.
- Raimondo says the CHIPS Act has mostly survived because it was bipartisan, and she points to TSMC’s Arizona expansion as evidence it is working.
- She believes AI will eventually create more jobs, but warns that the transition could bring mass layoffs, civil unrest, and even threats to democracy if policy lags.
- Raimondo says the U.S. should diversify critical supply chains rather than try to make everything domestically, especially in chips and advanced packaging.
Notable quotes
“my point to Europe is okay, your feelings are hurt, but China is not your friend”
“I would say pissing off all our allies. Why? It's just not a good idea”
“I firmly believe there will be there will be more jobs. I do, I think there'll be new industries, new companies, new products and services”
“We won't win civil unrest, political violence, 15% unemployment rate. That's not winning the AI race”
How the episode opens
Most Americans, when they hear AI, they get afraid. Right? The vast, vast majority of Americans AI equals anxiety.
I'm going to lose my job. I get that, you know, people are scared. I think it would be a huge mistake to, like, retard our AI progress with overregulation.
Just talked about China. I want to win the AI. Right?
I want America to lead the AI world. And I think when we get to the fifth or sixth inning of this AI revolution, whatever you want to call it, I firmly believe there will be there will be more jobs. I do, I think there'll be new industries, new companies, new products and services.
I'm an optimist. I am pretty worried about getting from the first inning to that inning. Hello and welcome to a live episode of the Odd Lots Podcast.
I'm Joe Weisenthal. And I'm Tracy Alloway. So for, I guess for listeners who are hearing guys here at CFR, I need to talk about truly do have the perfect guest with us.
We're going to be speaking with CFR Distinguished Fellow Gina Raimondo. Previously the Commerce secretary, previously governor of Rhode Island. So, Gina, looking forward to chatting.
Me too. Thank you for having me. There's so much.
There's so much to talk about. By the way, what's the day today? It's April 1st.
We always make a note of that. These days, you better. Add in the time.
Yet? What time? 11:45.
Because so much is liable to change by the time other people hear this episode. But I want to start. I saw a headline this morning.
President Trump who said to give a speech tonight, related to the war in Iran. And according to a report, I think it was a Reuters report.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us-europe relations
- nato tensions
- economic security
- china impact on industry
- ai unemployment
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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