The next is a transcript of an interview with Commerce Secretary Gina Raimondo that aired Sunday, July 24, 2022, on "Face the Nation."
MARGARET BRENNAN: We now wish to flip to Commerce Secretary Gina Raimondo. Thanks for becoming a member of us.
COMMERCE SECRETARY GINA RAIMONDO: Thanks.
MARGARET BRENNAN: So you've gotten been making this huge push for this CHIPS invoice that will direct about 50 billion in the direction of the semiconductor business, these are these pc chips in telephones and dishwashers and weapons–
SECRETARY RAIMONDO: And every part.
MARGARET BRENNAN: –and principally every part. The invoice now additionally has about 200 billion in further spending, which I perceive you'll play a task in serving to to dole out indirectly. For folks at dwelling, why must you as taxpayers subsidize a worthwhile business?
SECRETARY RAIMONDO: Yeah, effectively, good morning, good to be with you. As a result of proper now, we're dangerously depending on different international locations, largely in Asia, for our provide of semiconductors. I consider it similar to what you see in Europe, Germany now's extremely depending on Russia for oil. And we're all saying to ourselves, How might that occur? Effectively, that is what's gonna occur to us, if we do not stimulate extra home manufacturing of CHIPS proper now. We do not make any forefront semiconductors in america. And people are the delicate chips that you simply want for navy tools and high-end computing. We purchase nearly all of them from Taiwan. It is actually gorgeous. If you concentrate on it, 90% we buy from Taiwan. So the fact is, we want corporations to broaden in America, and- and different international locations all around the globe are offering incentives. Proper? I wish- I want you did not have to do that, to be very sincere, however France, Germany, Singapore, Japan, all of those different international locations are offering incentives for CHIP corporations to construct there and we- frankly, we can't afford that we can't afford to be on this weak place. We want to have the ability to defend ourselves.
MARGARET BRENNAN: However, Intel CEO stated it is truly 30% cheaper for them to provide–
SECRETARY RAIMONDO: Completely.
MARGARET BRENNAN: –in a few of these different international locations due to these incentives. However- however would not rolling out state subsidies of personal business create a harmful precedent? Or are you arguing we're simply in a state of affairs the place we have to begin pondering of significant industries, as partially state funded or sponsored?
SECRETARY RAIMONDO: Yeah, what I am saying is, this can be a matter of nationwide safety. And I do not suppose we are able to put a price ticket on it, as a result of we're in a really weak spot. So when you speak to the navy specialists, or the nationwide protection contractors, you understand, they will let you know they want CHIPS, there's 250 chips in a javelin launching system and that is not as refined as a few of the new tools. Every thing we discuss these precision guided mi- missiles and such. They're precision guided due to CHIPS, which aren't made in America. They're made in Taiwan. So it is simply in- a nationwide safety crucial. And by the best way, we've to maneuver rapidly. That's the most important level right here–
MARGARET BRENNAN: You have stated first week of August, this invoice–
SECRETARY RAIMONDO: This could occur subsequent week. That is going to occur subsequent week.
MARGARET BRENNAN: There is a lengthy record of issues Congress must get executed in a really quick time frame–
SECRETARY RAIMONDO: I perceive that.
MARGARET BRENNAN: –Are you assured that the votes are literally there to get this handed subsequent week?
SECRETARY RAIMONDO: Sure, I'm. I'm. I- and I will spend, you understand, all weekend on the telephone or the remainder of the week on the telephone. Sure, there was an enormous bipartisan vote within the Senate final week.
MARGARET BRENNAN: 16 Republicans voted–
SECRETARY RAIMONDO: Yeah.
MARGARET BRENNAN: – to maneuver together with this–
SECRETARY RAIMONDO: 16 Republicans.
MARGARET BRENNAN: –however that is nonetheless not executed. And it is being tweaked right here. So I wish to ask you about a few of the issues which were proposed, you've gotten skeptics on each the suitable and the left for this, proper? Bernie Sanders has stated he would not prefer it, it is a clean test to worthwhile corporations. Rick Scott a Florida Republican has in contrast it to company welfare, a former labor secretary from the Clinton Administration known as pure extortion. That does not sound like that is really bipartisan, as you known as it. This appears like that is pretty controversial.
SECRETARY RAIMONDO: Uh I- no, I do not suppose so. I imply, it is clearly bipartisan. You do not get 64 votes within the Senate day-after-day–
MARGARET BRENNAN: However on this last invoice, you suppose regardless of these detractors–
SECRETARY RAIMONDO: This will likely be an enormous–
MARGARET BRENNAN: –it'll cross?
SECRETARY RAIMONDO: –bipartisan vote within the Home and the Senate. Sure, I imagine so. You realize, you see former Secretary Mike Pompeo right this moment, tweeting out in favor of it you are gonna see Republicans and Democrats coming collectively as a result of it is about nationwide protection it is about jobs. It will create a whole bunch of 1000s of jobs in America. Now additionally, I totally dispute Senator Sanders' characterization of this. It is not a clean test. There are lots of strings hooked up. Strings hooked up corporations cannot use this cash to construct services in different international locations, corporations who settle for this cash cannot then flip round and be constructing services in China for forefront know-how. There's a number of strings hooked up round you understand the standard of jobs that must be created working with small contractors and minority owned contractors there are labor protections. So to say it's a clean test is simply useless mistaken.
MARGARET BRENNAN: Are these ample although as a result of –
SECRETARY RAIMONDO: Sure
MARGARET BRENNAN: –as a result of you've gotten Marco Rubio of Florida popping out and arguing excessive tech CHIP manufacturing must be additional, kind of, restricted right here on the nationwide safety portion. He says that firms that obtained the funding can't broaden CHIP manufacturing in China, however there are some issues grandfathered in which are loopholes right here. I imply, are there different locations you want to tighten up? Stricter export restrictions, for instance?
SECRETARY RAIMONDO: Yeah, I do not suppose so. Let me say this. This invoice has been closely negotiated for months, the Senate handed its model a 12 months in the past. And so for a 12 months, it has been negotiated. And that is why you see this huge bipartisan vote, and you will see it subsequent week in the home. We–
MARGARET BRENNAN: It bought slimmed down after which it is increasing once more.
SECRETARY RAIMONDO: It slimmed down, expanded, you understand, the sausage making that all the time goes, the ups and the downs. We all the time must be taking a look at our export controls. So I might say I really feel very snug about this invoice. It protects nationwide safety and protects taxpayers. Additionally–
MARGARET BRENNAN: As written.
SECRETARY RAIMONDO: –as written. As written, there are- there are taxpayer protections, it's going to be a aggressive, clear course of. And there is clawback provisions. If we give the cash to corporations they usually do what they don't seem to be alleged to, we're gonna take the cash again. I really feel very assured across the taxpayer protections and the China guardrails. Having stated that, as we go ahead as a rustic, not on this invoice, we've to be on guard towards China always.
MARGARET BRENNAN: For different industries as effectively?
SECRETARY RAIMONDO: Completely. For all know-how, we've to do every part we are able to to guarantee that our forefront know-how, whether or not it is in CHIPS, or synthetic intelligence, or different areas, cannot get into the arms of the Chinese language.
MARGARET BRENNAN: So that you're open to additional export restrictions?
SECRETARY RAIMONDO: Sure.
MARGARET BRENNAN: Typically?
SECRETARY RAIMONDO: Sure, usually. Precisely.
MARGARET BRENNAN: On Taiwan, as a result of, you understand, embedded in that is the idea that Taiwan is in danger, probably of annexation by China.
SECRETARY RAIMONDO: Sure.
MARGARET BRENNAN: Is that your prediction? How assured are you if you get briefed by US intelligence, that that is an instantaneous risk?
SECRETARY RAIMONDO: We should be ready, you understand, you- you would be higher served speaking to nationwide safety adviser on the timeline and such and I do not suppose anybody thinks it is instant–
MARGARET BRENNAN: 2027 I feel is what Normal Milley stated.
SECRETARY RAIMONDO: Precisely. I haven't got a crystal ball. I really feel assured in saying it is not instant. And I really feel additionally assured in saying there isn't any crystal ball. However we should be ready. That is our job to guard the American folks.
MARGARET BRENNAN: Must you- on one other China associated challenge that impacts inflation, you've gotten favored probably lifting the tariffs off of some Chinese language made merchandise? Have you ever satisfied the president but?
SECRETARY RAIMONDO: President nonetheless fascinated with it. You realize, this can be a huge choice–
MARGARET BRENNAN: Why? This is likely one of the few issues he truly has a device to- to maneuver on unilaterally that might assist offset inflation.
SECRETARY RAIMONDO: True, however you understand, these are huge selections. There are potential labor implications. One factor about this President is he won't ever do something that he thinks will harm employees in America and- or harm union employees in America. And so he is being appropriately deliberative to guarantee that, sure, he needs to cut back inflation, and he needs to make it simpler for customers. However he needs to make certain that after we do it, or if we do it, it will not have any impression on American employees.
MARGARET BRENNAN: Has inflation peaked?
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SECRETARY RAIMONDO: Oh, you are asking all of the crystal ball questions.
MARGARET BRENNAN: Effectively, you speak to enterprise leaders I mean--
SECRETARY RAIMONDO: That- anybody who provides you a straight reply to that I am undecided it is telling you the reality. I feel in all probability. However look, if I had stated that a 12 months in the past, you understand, assuming one other battle would not escape, assuming we do not have one other COVID, assume- you understand, there's a lot out of our management. What inflation is being- inflation is a worldwide drawback. Europe is struggling greater than we're. It has been largely pushed by issues out of our management, you understand, COVID-related provide chains, battle in Ukraine. Here is what I will say, gasoline costs are down, down steadily from a month in the past. I feel they will be down additional a month from now. Provide chain kinks are working their manner out. So, I do suppose that we're on our manner, but it surely's nonetheless excessive and Individuals are nonetheless struggling.
MARGARET BRENNAN: I wish to ask you as effectively about local weather. NOAA is underneath your purview. So I perceive that that's in your wheelhouse. The local weather agenda for the administration is totally stalled. You had the Supreme Court docket rein in a few of the EPA talents to behave unilaterally right here. You may have the legislative agenda fully stalled proper now, the electrical car tax credit, clear vitality efforts. Is the truth that you've got been unable to unstick that local weather agenda however you've got moved this far with CHIPS. Does it sign to you that you want to make non-public business a associate on this? I imply, you had Intel lobbying with you on the CHIPS invoice. Do you want enterprise with you on local weather to really get it by way of?
SECRETARY RAIMONDO: You realize, it's extremely fascinating. I might say sure, however as a result of a lot of enterprise is on board. Like, let's be sincere with ourselves, local weather associated occasions are extra frequent, extra harmful, and costlier than they've ever been. Enterprise will get that. However each time there is a storm or wildfire or local weather occasion that prices enterprise some huge cash, and their prospects, and their communities. So do we have to do extra to get enterprise on board? Possibly. And it is, you understand, one thing we're all the time questioning, how can we get issues executed on this divided political atmosphere? However make no mistake about it, the local weather investments that the President proposed are good for the financial system and good for enterprise, and enterprise is aware of that.
MARGARET BRENNAN: Senator Joe Manchin will not be satisfied of that--
SECRETARY RAIMONDO: That, I perceive.
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MARGARET BRENNAN: That's stalled. So after we speak proper now about all the extreme warmth, so many Individuals and so many Europeans are experiencing, proper now, it comes again to that query of what's driving it? NOAA, which, as we talked about, you- you oversee, has stated that local weather change can intensify excessive warmth, there was $3 billion within the infrastructure invoice that was meant to assist defend the infrastructure towards a few of these local weather associated adjustments. Why is not that three billions environment friendly? And when will it truly be used?
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SECRETARY RAIMONDO: Yeah, nice questions. Proper now, we're placing that cash out the door, as we converse, fairly actually. It's- although- though after all we're disenchanted that we weren't capable of get extra by way of Congress, that $3 billion and the local weather investments within the infrastructure package deal are a few of the greatest local weather investments we have ever made as a rustic. And so we've to make use of it effectively. Division of Vitality, my Division, Division of Transportation, we're transferring out, proper now, investing in electrical car charging stations, battery know-how. What we're doing at NOAA relates largely to oceans and sea degree rise, habitat restoration, resiliency, and coastal communities like Rhode Island the place I am from. So we're working arduous to mitigate the consequences of local weather, once more, with NOAA, particularly for sea degree rise and sea temperature rising. However $3 billion is a drop within the bucket. I imply, this can be a world disaster. The reason being we- we want extra, arguably, there's nothing extra vital for us to be engaged on.
MARGARET BRENNAN: Earlier than you go, I wish to ask you, on politics, there's a number of hypothesis about your personal political future. And do you suppose if you hear that- you need to hear it- is that counterproductive for Democrats to be brazenly speaking about anybody apart from Joe Biden operating in 2024?
SECRETARY RAIMONDO: Sure, I feel it's. The President's an ideal president. He is doing an ideal job, he'll run, and he is the person for the job. So I do suppose it is unproductive.
MARGARET BRENNAN: And also you and your political future? What's it?
SECRETARY RAIMONDO: Doing an ideal job of the Commerce Division.
MARGARET BRENNAN: Effectively, there's hypothesis you may transfer to Treasury. There's hypothesis you may run for president.
SECRETARY RAIMONDO: I- you understand, by this time subsequent week, I'll have $52 billion of the Commerce Division to rebuild the semiconductor manufacturing business, and that's going to maintain me greater than busy.
MARGARET BRENNAN: All proper. Effectively, Madam Secretary, thanks very a lot for coming in and speaking to us right this moment. We'll be proper again.