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The Hon. Keith J. KrachChairman & Founder, Center for Technology Diplomacy at Purdue
Former Undersecretary of State (unanimously confirmed)
Chairman & CEO of DocuSign & Ariba
Congressional U.S. China Working GroupJuly 30, 2021
Defeating China Inc
1
GLOBAL ECONOMIC SECURITY STRATEGY
October 11, 2019 Unclassified
Proactive Integrated Strategic Plan & Execution Mechanism
Keith Krach Under Secretary of State
Chief of Mission Conference
U.S. DEPARTMENT of STATE
FEBRU ARY 26 , 2020
Under Secretary Keith J. Krach
SENSITIVE BUT UNCLASSIFIED
Senator Coons question on China Strategy
“ I would harness the 3 biggest areas of US competitive advantage by rallying our allies and partners, leveraging the innovation and resources of the private sector, and amplifying the moral high ground of democratic values.”
--Krach Senate Confirmation Hearing
4
Mission
Develop and Operationalize a Global Economic Security Strategy
That Drives Economic Growth, Maximizes National Security and
Combats China’s Economic Aggression
UNDER SECRETARYOF STATE
Keith Krach
EB Assistant Secretary Manisha
Singh
ENR Assistant Secretary
Francis Fannon
OES Acting Assistant Secretary Jonathan
Moore
Chief Economist
Sharon Brown-Hruska
ScienceAdvisor &
CTOMung
Chiang
Acting S/R for Strategic Partnerships
Thomas Debass
Chief Speechwriter
RobertNoel
Social Media SpecialistProtected
Staff AssistantYvette Jenkins
Staff AssistantJoyce Douglas
Chief of StaffKent Logsdon
Staff Assistant Fah Conn
Chief Econ. Field
OfficerProtected
Chief Operating
OfficerZara Larsen
Special Officer
Protected
Chief Strategy Officer
Paul Touw
Special Officer
Protected
Chief BankingOfficerFrank
Dunlevy
Special Officer
Protected
Chief Strategic Planning Officer
Jim Shinn
Chief BusinessOfficer
Hiro Rodriguez
Special Officer
Protected
Chief FinanceOfficer
Ed Kinsey
Special Officer
Protected
Chief IndustryOfficerMarc
Carlson
Special Officer
Protected
Chief Competition
OfficerProtected
Chief Business
Dev. OfficerDavid Fogel
Chief Marketing
OfficerLen
Khodorkovsky
Senior AdvisorJohn Duncan
Special Assistant Ryan Berger
Senior AdvisorAmbassador Bernicat
Chief PolicyOfficer
James Rockas
Private SectorCareer TeamSenate Confirmed
THE E-TEAMPlus The E-Family’s3,000 Field Officers,
Tech & Econ Specialists
1
GLOBAL ECONOMIC SECURITY STRATEGY
October 11, 2019 Unclassified
Proactive Integrated Strategic Plan & Execution Mechanism
Keith Krach Under Secretary of State
3 PILLARS of GESS
➢ I. Turbo-Charge US Economic Competitiveness & Innovation
➢ II. Safeguard America’s Assets
➢ III. Build a Network of Trusted Partners
PILLAR I
PILLAR I
PILLAR I
!1
U.S. DIGITAL DOLLAR
U.S. Department of State, September 12, 2019
G L O B A L E C O N O M I C S E C U R I T Y S T R A T E G Y
Ramifications for the U.S. Dollar and
and the Future of Money
PILLAR II
PILLAR II
PILLAR II
PILLAR III
PILLAR III
1
5
Objectives
1. Defeat CCP 5G Masterplan to Open the Market for US Entrants
2. Deliver an Enduring Model for Competing with China Inc.
3. Build an Alliance of Like-Minded Nations and Companies that
Operate by a Set of Democratic Trust Principles
4. Use 5G to Create a Platform for All Areas of Tech & Economic
Competition.
1
6
Trust Principles
Respect for:
• Rule of Law
• Property
• Sovereignty of Nations
• Labor
• Human Rights
• The Planet
.
• Accountability
• Integrity
• Transparency
• Reciprocity
• Liberty
+ =
Architectural Foundation for The Clean Network
Clean Network Playbook
Force Accelerate
U.S. Strategic Advantages
Leverage State’s China LOEs
Strategy
Measurements Clean Competition Results Network Coalitions Total Clean
OKM Global GDP1 76% Nokia 5G contracts 196 EU Members 27 26
Clean Countries Global GDP2 67% Ericsson 5G contracts 131 NATO Allies 30 27
Clean Path Global GDP3 74% Huawei 5G contracts4 ?? Three Seas Nations 12 11
Clean Countries 60 Nokia market cap5 89% Quad Members 4 4
Clean Telcos 200+ Ericsson market cap5 65% Five Eyes Members 5 5
Clean Companies +++ Huawei market cap6 ?? G7 Members 7 7
OBJECTIVE 1 METRICS: REVERSE HUAWEI’S MOMENTUM & DEFEAT CCP 5G MASTERPLAN
OBJECTIVE 2: DELIVER A VERIFIED ENDURING COMPETITIVE MODEL
10 Key Elements Results Verification +/-
1. EXECUTABILITY Perfected on countermeasures; bloodied on competitive battlefield +
2.MEASURABILITY Achieved tangible results; from metrics within timeframe +
3. PROVABILITY Defeated Huawei; demonstrated China Inc. is beatable +
4. AFFORDABILITY No new funds; no new manpower +
5. PRACTICALITY Not dependent on Congress, Exec Orders or company acquisitions. +
6. SCALABILITY Success on a global scale; easily configured to suit local needs +
7.REPEATABILITY Strategies, sequencing systematized; trust positioning works for all sectors +
8. VIRALITY Cumulative effect proven; tipping point reached in Europe +
9. MARKETABILITY Viable brand established; seized the moral high ground. +
10. APPLICABILITY Expanded to 5 tech areas + semi; infrastructure, minerals, labor, funds +
2
1
#3,4: Network of Trusted Partners
Leve
rage
Global Strength
Operation Marlin Playbook
5G Clean Path/Clean Networks
The Clean Network (alliance)
Clean Digital Initiatives I*, II
Clean Infrastructure & Clean Currency
Clean Energy &Clean Investments
The Clean Network Growth Strategy
The Clean Network Tornado
Current Execution Phase is Here
OBJECTIVE 3: USE 5G TO CREATE A PLATFORM FOR ALL AREAS TECHNO-ECONOMIC COMPETITION
Clean Lines Program Status Beachhead Model Work TD-10 Trust Level Field Engagement
Clean Path (5G) Advanced Yes working Yes Yes No 60 Countries
Clean Carrier Announced Yes Yes Yes Yes No Limited
Clean Store Announced Yes Yes Yes Yes No No Activity
Clean App Underway Yes Yes Yes Yes No Stalled
Clean Cable Underway Yes working Yes Yes No good Success
Clean Cloud Announced Yes Yes Yes Yes No T, A, B
Clean Things (IOT) Pre-announced Yes Yes Yes Yes No Limited
Clean Drones Pre-announced Yes Yes Yes Yes No Defensive
Clean Data Pre-announced Yes Yes Yes Yes No Limited
Clean Currency Pre-announced Yes ? Yes Yes No Studies Only
Clean Quantum --- No ? Yes Yes ? Limited
Clean AI Some Policy Yes Yes Yes Yes No Limited
Clean Cars --- ? ? Yes Yes No No Activity
Clean Semi Onshoring No Limited Yes Yes No success
Clean Energy Policy Yes Yes Yes Yes No Priority
Clean Minerals ERGI Yes working Yes Yes No 20 Countries
Clean Infrastructure Blue Dot Yes Stalled No Yes No 16 Countries
OBJECTIVE 4: BUILD AN ALLIANCE OF COUNTRIES AND COMPANIES
::
➢ 60 Clean Countries
➢ 200+ Clean Telcos
➢ 26 of 27 EU Members
➢ 27 of 30 NATO Allies
➢ 31 of 37 OECD Members
➢ 11 of 12 Three Seas nations
➢ 67% of Global GDP
➢All Quad Members
➢All Five Eyes Members
➢ Powerful High-Tech Clean Companies
What’s next:• Sept. 20 – Sept. 23, 2021: Concordia Annual Summit at the U.N.
General Assembly, in partnership with the Atlantic Council, with
Fortune 20 CEOs and policymakers.
• November 2021: Heartland Technology Jobs Summit… location
TBD…
• Research… polling… mission-oriented advocacy… an asset for
policymakers.
Keith J. Krach
APPENDIX