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Biden admin concedes Chinese investments in federal retirement fund are 'unfitting' - YouTube
Channel: Fox Business
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meanwhile the biden administration is
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now saying that the federal thrift fund
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should not invest in chinese-owned
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companies we've been reporting this for
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now a year it's after several warnings
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from republican lawmakers the federal
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retirement thrift investment board
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writing a letter to the gop senators
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quote we agree it is unfitting for
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americans to invest in companies from
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china or elsewhere that undermine u.s
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national security
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joining me right now is gatestone
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institute senior fellow and author of
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the coming collapse of china and the
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great u.s china tech war gordon chang
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gordon it's great to have you thanks
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very much for being here this morning
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we've talked about this thrift savings
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plan this is a defined contribution plan
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for u.s civil service employees and
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retirees as well as members of the
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uniformed services so you've got
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government employees investing uh their
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401k money in
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this mutual fund window that it opened
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in june that will allow them to invest
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in chinese companies tied to the chinese
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communist party and gordon i know you
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share
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my concern about this i've said this
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many times
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how in earth would we allow government
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employees including the very military
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men and women who may very well have to
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go to combat against ccp
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invest in the very companies that could
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be those companies leading the effort to
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replace the united states as the number
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one superpower your thoughts on this
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yeah that was hideous and you know for a
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time there were companies on the
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commerce department's entity list which
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americans couldn't invest in but which
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the world's largest pension fund which
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is what you just referred to the thrift
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savings plan is part of it they could
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invest in those companies there's
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another issue maria though because there
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are other chinese companies that are not
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designated by the commerce department
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and
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these are in mutual funds they're in
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index funds and the question is whether
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the united states will allow investment
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into those other chinese companies and
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those other chinese companies although
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they may not be designated do support
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the chinese military so there's this
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additional issue here
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yeah that's absolutely right there are
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35 chinese companies already in
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international funds that is the msci
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index the eafe index uh and and some of
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these companies have already been
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sanctioned
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but larry fink and the globalists out
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there want to be able to invest in these
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companies despite the fact that the ccp
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wants to overtake the united states as
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the number one superpower i'll just
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point out this these companies
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should be excluded by law
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but we don't have legislation that's
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going to do that so we have this letter
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to these senators do you think this is
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going to result in any change in the
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federal thrift fund and what it can
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invest in
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um
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there will be some change but certainly
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not enough change
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china has this doctrine of civil
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military fusion which means that the
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chinese military has access to whatever
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any civilian company has so if it's a
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tech company clearly the chinese
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military are going to use that tech
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which means americans can invest in
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those chinese tech companies and the
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military in china can take advantage of
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it so there needs to be a further
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prohibition of investment into any
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chinese company not companies not just
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companies that are on the commerce
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department's entity list
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yeah one source tells me all they only
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want to expel the ofac sanctioned
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companies what about the 490 entity list
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companies and other sanctions
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lists treasury keeps offec lists to only
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69 companies when it should be actually
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hundreds of companies who are tied to
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the ccp we're going to keep a spotlight
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on this issue it's important and
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investors need to understand these
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companies don't even follow the auditing
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rules of the united states some of them
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are already sanctioned and there may
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very well be in your portfolio let me
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get your take on amazon and apple
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they're the latest american technology
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giants pulling back operations in china
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gordon amazon announced plans to close
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its kindle bookstore in china halting
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sales of kindle devices to retailers in
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the country and apple says it will move
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some of its ipad production to vietnam
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after the supply chain disruption caused
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by china's coveted lockdowns gordon i
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know that china represents this huge
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growth story for so many people in
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corporate america but do you think
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little by little some of these companies
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are getting it that the ccp operates uh
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with bad behavior and uh are also
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committing human rights abuses
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well companies are getting it um but
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slowly um this decision by amazon
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follows decisions by microsoft's
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linkedin airbnb and yahoo to pull some
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of their operations out of china but the
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more significant development is the
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apple one and the reason is that apple
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is thought to be the company with the
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most difficult to move supply chain and
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and apple uh you know despite all of
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that has moved it even though the
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lockdowns in shanghai and beijing are
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easing and that really means that apple
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has made a decision that for long-term
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reasons not just the short-term ones
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this year but for the long-term reasons
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china is not a good place to manufacture
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so there's some progress here but
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obviously a lot more needs to be done
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because a number of companies are still
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in china when they shouldn't be for
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various reasons including the ones you
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just mentioned in that first segment
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which is uh look we're supporting a
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chinese military there
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well i'm told that from the start of
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this administration
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the ccp wanted two things they wanted
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the biden administration to
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overturn the china initiative where the
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u.s government the doj was investigating
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intellectual property theft and they
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wanted the tariffs removed joe biden has
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already rolled over on the chinese
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initiative the china initiative is gone
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we are no longer investigating what is
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in plain sight intellectual property
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theft and now the deputy u.s trade
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representative is saying that all
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options remain on the table on the
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administration's china tariff review
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saying that the agency is looking to
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address long-term challenges from china
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and quote getting a tariff structure
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that really makes sense the president
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says he's considering removing some of
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the tariffs imposed on beijing
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which were imposed during the trump
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administration gordon are we going to
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see the further rolling over for the ccp
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by joe biden and removing those china
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tariffs and he'll do so saying that he's
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trying to make a difference on inflation
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yeah i think that that's the drift of
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what we're seeing from administration
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officials the story here is those
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tariffs were imposed under section 301
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as a remedy for the theft of u.s
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intellectual property china has not
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stopped that theft in fact it's ramped
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up theft of usip which means that we
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need a tariff structure which is like a
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thousand percent tariffs if we're going
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to stop the chinese from stealing
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hundreds of billions of dollars of u.s
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future and this means somewhere like 600
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billion dollars perhaps of ip theft
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every single year so this situation is
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unsustainable the tariffs are not as
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high as they should be but biden's going
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to roll them back from all indications
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we've seen
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yeah well corporate america knows all
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about it they have settled a number of
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cases with chinese companies
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and then you're not supposed to discuss
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it gordon thanks very much we will keep
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following all of that great to get your
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insights as always gordon thank you
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gordon chang joining us this morning
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