 Good afternoon thank you very much for being here we'll get started straight away but I'll just do some introductions I'm Jerry Baker I'm the editor-in-chief of the Wall Street Journal it's a pleasure to be here with this distinguished panel to discuss the US in the world outlook I'm joined of course by Elaine Chow US Secretary of Transportation Kevin McCarthy majority leader of the US House of Representatives and Kristen Nils Kristen Nilsson the US Secretary of Homeland Security so let's get straight in it's obviously there's a very big as you may have noticed and you may have read about there's a big and prominent American delegation this year at the World Economic Forum annual meeting in Davos President Trump arrives tomorrow and addresses the the forum on Friday and there's high expectations I think it's fair to say and I think it's also fair to say that this is not the kind of crowd that President Trump normally addresses has addressed either on the campaign trail or since even since he's been president it's they have a probably a rather different global outlook but they've been very interested to hear what he's got to say if I can start with you Madam Secretary Secretary Chow what is the message what is what is what is the president seeking to achieve first by coming to Davos and then what is he going what do you expect him what do you expect his message to be and how is he going to engage with the with the with the world community represented here what Davos is a wonderful format it's a wonderful forum there are leaders and you know participants from throughout the world so I think it's quite a compliment to Davos that president is coming so everyone will have to stay tuned and listen I'm gonna get you to say a little more than that if I possibly can in the next 30 minutes on what but if I turn to you majority leader McCarthy what what do you what do you think the president of the United States who staked his presidential campaign on America first just a year ago we heard the inaugural speech America first make America great again it's about American doing what's right for America and apparently not being very keen on a lot of trade deals not being very keen on certain types of immigration what is the message then that he used you want to hear from him and you think the world is going to hear from him this week well I think you're gonna hear a couple different things one and if you watched in this short time of this presidency he's had a lot of very successful foreign travel he's got good relationships there and you got to understand what does America first mean okay so we wanted to focus on the economics of America we wanted the citizens to be safe that means home and abroad that means the perspective Americans are all around the world we want to help those allies that have the same type of values of deciding that protect their citizens and others but more importantly as I sat around classes dinner last night what's interesting is the number of countries who are now talking about their tax system and I do believe that with doing something as big as the tax change it took three decades for anybody to have this happen the economic of America rising helps the rest of the world and it also helps from a safety perspective around the world I think you'll hear quite about that but also the future plans from infrastructure from building one the greater relationships with other countries and Davos is a great place to have that happen so to Nelson for me you're the you're primarily responsible for protecting the American border for the responsibility for security at the border immigration is obviously an important part of that travel into the United States is important part of that in the last year we've seen the president continue to urge the building of a wall with Mexico we've seen a so-called travel ban has been imposed to apply to particular countries and talk of a more restrictive immigration policy we're still waiting to see obviously how that works out in Congress what's your view in terms of the message that America these all of these acts and all of these this debate in America is sending to the rest of the world about America's openness do you worry that sometimes this that the message at the rest of the world is getting is that you know what America's turning its back on the world well first of all thank you for having us appreciate the the opportunity you know what I would say is I think that's why we're all here we're all here to make it clear as a leader was saying that America first is not America alone that we're here to partner and whether it's on security or economics or trade or frankly any of the issues that we're all gathered here to talk about we need those partnerships so within my portfolio what I would tell you unfortunately with the evolving threats of today there's not one entity that has all the authorities capabilities and capacities to address it so we have to partner we have to partner with the private sector we have to partner with international entities and we have to partner within our own government within our own interagency to throw all we have at these problems today so to tell them I ask you again economic economic nationalism as it's been called make America great again America first the president has pulled the US out of TPP already he's just this week announced some sanctions on a number of companies you know you're responsible for transportation which I appreciate is a multi faceted portfolio but is this are the is the United States willing really to continue to engage on a trading basis with the rest of the world the president's talked about protecting American jobs I think you much it sounds like protectionism well the American economy is just booming we've had the lowest unemployment rate we've seen in decades the stock market is at an all-time high more jobs have been created in the last year than they have been in previous years America first is a continuation of the American the affirmation of American exceptionalism that America is very special it's a country where there's hope and opportunity and people from all over the world come to our country with nothing much of the time many of the times seeking only the opportunity to succeed I think those are part and parcel of the message about America as well and the America first message is also a reflection of what has happened in the previous eight years that there was a feeling in the previous eight years that America did not take a position which fully appreciated America's role abroad and I think that message from the president has to be taken against the context of the last eight years as well congressman Cathy you you were shaking your head there but what why is so far again pulling out of TPP threatening to pull out of NAFTA and for we know may well pull out of NAFTA imposing sanctions that we've seen this week possibility of more sanctions why that looks protectionist why is that not protectionist it's not and let's first start where was the first time you heard to make America great again president Ronald Reagan think about what the world looked like after Reagan was president of the United States secondly it is only right to modernize the NAFTA agreement NAFTA agreement was created before computers before technology where we are it's and there's nothing wrong with sitting there negotiating now look what just happened on solar panels and you tell me if this is protectionism of creating fair trade so the film that goes over the top of a solar panel is made by dal chemical I'll get the term wrong so I won't provide it China does not allow them to sell it who subsidized solar panels and who puts them into America is it only right and fair that you have a president who stands up and says wait a minute if we want to have trade let's have it fair if you deny American company from even selling the product or competing that's not protectionism that's creating more jobs so and then when you look to immigration we have one of the most liberal forms of immigration in America because we assimilate we love the process but there's not one person on any side that's going to tell you our current system is working well if you if you look within chain migration just if you want to bring a brother or sister it's a 30 year wait so why don't we create a system that works why don't we create a system also what the president talks about on merit does that really go to breaking the barriers down so I believe we're gonna come to an agreement and let's look back for one moment if president Trump is able to get tax reform he's able to get growth back to where America was before and even greater and get an immigration bill there are a lot of people who served in that office before who have tried and failed I think the world should take a step back and saying maybe you disagree with a word he says or something but what are the results and to give him a little credit around the world would North Korea be talking to South Korea and is that America first or is that making the rest of the world safe I think he's being successful well but you say you you know defend those decisions this week on solar panels and washing machines but those are tariffs which impose a cost on US consumers so they're gonna so it's gonna hurt US consumers significantly especially washing machines and especially in the end in that second category you're also going to be in terms of the producers you're actually going to be hurting countries that more more countries that the US is trying to is trying to use it out as allies rather than China which is the country at least from an economic competitive basis is supposed to be the the country that women that the US is most concerned about well how does how to how do tariffs really help so you look I'm a true I'm a big believer in fair trade free trade if you take a short-term approach how many American jobs are going to be lost the Dow chemical made it all that investment creates a product that is very successful but is denied the ability to even enter the market there may be a short-term view here but take a long- term approach what I think will happen is someone's gonna say whoa I'm gonna wake up what are you upset about how do we come to an agreement same thing that's probably gonna happen with NAFTA and at the end of the day Canada Mexico and America are going to be stronger for it I think it will be a win-win-win and you might not like the tactic that went about it but I think all three countries will be stronger for it there's like do you like the tactic you prove those tariffs you think it's well listen so your consumers in your your constituents in California you're gonna have to pay more for washing machines and that's but you think it's worth doing that to protect to protect a small a small for a washing machine in the next month or I'm more concerned about my community having jobs for the next decade because I think at the end of the day the other items that we tried to stop this before have not worked so I don't put it on the president for this I put it on the others who deny the ability to come to a common ground so you have to raise the temperature just as other presidents have done in the past just as Ronald Reagan has done when he comes to steal and others you get the debate going so he knows and I hope you're okay by the way so do you haven't I went to get a cough drop you haven't got the dreaded Davos Davos virus but I suppose part of the bigger picture here is what people are concerned about is American leadership I think we've come in the rest of the rest of the world has come to for the last since the second was the end of the Second World War to see America seeking to pursue American values and or universal values actually around the world values of freedom of democracy and and also in doing that as assumed global leadership the United States assumed global leadership and what we've started to see perhaps in President Trump's rhetoric and in the national security strategy that we saw outlined perhaps is a sense that the US no longer is willing to pay those burdens to bear those burdens of global leadership because it because there are burdens and some of them are having to put up with things that you don't like in order to move the world more generally in your direction is that true is the US becoming essentially just another nation competing with the rest of the world putting America first not putting the world's interest first yeah I would of course frame it a little bit differently I think what the leader was describing is this concept of making sure that we have an even playing field right so it's not about a or B or C or D it's allowing the economy to work as it can allowing in removing allowing it to work removing unnecessary restrictions or outdated restrictions when it comes to my portfolio what I would say is that the United States continues to be a leader that's our intent you've seen that this year with global aviation we've worked a lot with my colleagues at the Department of Transportation as well but what you've seen there is we built coalitions of the willing we've made the threat clear we've provided very specific direction with respect to protective measures and together as an international community we've raised the bar and aviation security so I think very much we we still are a leader we intend to stay there I don't think well I think this you know all these questions are why the president is coming and again I think Davos to feel very flattered that he has chosen this as a forum and so for those that don't want to listen to him you can they can leave you know this is part of what discourse and discussion is all about and so they're obviously is a gulf in perception and assumptions and so I think it's good that the president is coming and that he's explaining himself I might also add you know when we talk about America's rule in the around the globe it's not as if America is going to withdraw there are many people who feel that America has been the chump that you know we are part and we are certainly the key player in a global network that purports to secure peace and security throughout the world and yet America bears a disproportionate amount of the cost in fact we pay for everybody else so I think there is some voices that raise the question should America pay for everybody else's defense structure and infrastructure and how long should this continue and so those are some of the questions that are involved with this America you know a role overseas congressman if I could look at that question I would almost put it in reverse I think America has stepped back up on the stage I think we reaffirmed who our allies are throughout the Middle East that we do not think Iran should continue Iran did not end their nuclear program they just froze it for 10 years they're testing ballistic missiles there's no positive in that North Korea North Korea has a nuclear weapon and they have ICBMs the only thing they don't have yet is combining the two together and accurately sending it somewhere it is not America's interest only to change course and stop that that is a world perspective and it wasn't the president who went to go alone he's engaged China in a matter they haven't engaged in this process before so I think it's made me the prism of what people look through there's others who will say when I travel the globe thank God America is back on stage again so I think it's in the nature or maybe the philosophy or principles of what you want America to be I think part of the problem people have is is the rhetoric and the difference between possible difference between the rhetoric and the reality I think if people look at the policies that the U.S. has pursued in the last year engagement in the Middle East as it's continued to do engagement in Afghanistan taking a sometimes aggressive but certainly engaged approach with North Korea as well as a diplomatic approach doing you know pursuing straw you know economic policies at home which are which have been you know cutting taxes which have been very which have been good for business and I think people look at that and would say yes but they look at the language that comes out of the White House particularly this president and it worries them and let me obviously just particularly turn to a recent example of that so when the president of the United States and I know there's dispute about what was reported and what was said but when the president of United States is reported and it's not widely denied to have used a scatological obscenity to refer to an entire continent in case Africa I think people worry that what does this say about this diminished this president's instincts for all the and again what me what he may say here this week what is what is what is what does he really think about the rest and what is America what values is America presenting to the rest of the world secretary Nielsen yeah I what I can tell you is what he means I won't go into what other people like to put words in people's mouths what he means is let's look at the individual it's time to stop looking at immigration based on the country and look at the look at the individual what can the individual come and contribute to the United States how can an individual come and assimilate how can an individual come become American that's why we want them to come so this isn't about limiting legal immigration this is as the leader was describing before in my coughing attack how can we do it so that it helps both sides those who want to unify their families and the communities and the businesses who need workers who need skilled workers to come in and help our economy so it's not it's been falsely framed as a conversation about countries it's not about the country whether we're talking about security and illegal immigration or legal immigration we're trying to talk about the individual is the individual of threat I don't want them to come to the United States but you know that the president uses has used hard whatever he said in that what he said he uses harsh language at times and people hear that harsh language and they take things from it language has meaning after all it language does have meaning I would agree with that but I think he's been clear as to what the context was of that conversation the particular conversation was talking about how we do immigration should it be based on particular countries or should it be based on skills and the conversation was about let's move to an individual skill based system not sure there was much more interesting really happening in the meeting at the end of the day I mean that was the conversation Canada has it Australia has it New Zealand has it there's a reason why it works for those countries because it helps their economies let me ask you a broader question about again about global leadership last year at Davos president Xi Jinping came gave a very memorable address it was very well received and he was generally interpreted as trying to maybe seize the mantle of leadership at least of the international economic system he talked about the importance of an integrated global economy the importance of trade the importance of communications of economic communications and as you go around the world you do detect that the last year or so many more people around the world see China as stepping up into leadership roles particularly in Asia they worry and these are America's allies they worry that actually China is seizing the initiative in many of these places around the world and sees initiative and talking the language that that people want to hear is is is that a concern that actually with this tough talk about America first and this strong talk about economic nationalism and the need for the US to revisit all of its many of its international relations that China moves in and assumed and this actually helps China assume a bigger role Secretary Chao well I'm obviously an American of Chinese descent so I may see things a little bit differently but if you were to talk to any Chinese official they would ask in return why are you so afraid of us because we have it will take us 40 to 50 years to get to where you America is now the question overall is being who's why are they being scared is addressed to everyone but they use as a comparison that is still going to take them about 40 to 50 years to get to the level of the standard of living that we now see in the Western world so China has a complex history and they always talk about the 150 years of humiliation so from that depth they're building themselves up clearly they are now a number two country in terms of the economy they have greater assertiveness because they are now gaining confidence in themselves and it is a introducing a new relationship with all the countries in the world including America as well so as we go into this new relationship we're going to have to redefine what our various roles are and how we will react but America has been number one and it will continue to be number one. Would you characterize the likely relationship as more confrontational adversarial than it's been or are we going to have the same broadly strategic convergence that we've seen over the last 20 years or so? This is not really my field on the other hand because I do believe that I have a of my unique perspective of my cultural understanding and the historical understanding. I think the term that's been used a lot and the leader probably may agree as well it's called frenemy. There are issues that we can work with them on there are issues that we need their help on and we all know what those issues are and there will be other issues that we will be in competition natural resources for example so with this major player transforming itself it is creating tensions and we have to kind of readjust as to how we interact with one another. Let me take the premise of your question. You said the president gave the speech when President Trump was being inaugurated in America and President Xi was in Davos. Were we afraid of the growth of China? Would you say Trump created any of that or was the past administration allow the expansion of China? And I would leave it to the world if you had the choice to do business in America or China where would you pick? And I don't know how many discussions we'll have here on China as they expand they're very open they're a long-term approach it's good that we have relationships and trade but it has to be fair but when I look at their expansion to Africa and others I see with one mindset it's what benefits China for resources and others that's all well and good but from the same standpoint I've watched this president bring President Xi to Marlago I've watched him have discussions and I've watched him work closer together in dealing with North Korea and the one part that America or the world has that believe that only makes the relationship stronger and the trust stronger and then you then you have other countries moving up India and others I just believe it's helpful for the entire world to be together but I would not blame President Trump for something he wasn't even an office for and I know our allies were concerned about the islands and the others but I think President Trump has been very strong about that at the same time building a relationship. So can I ask you about just another country in the context of cyber threats which is another of your issues that you have to deal with very pressing issues you have to deal with and that is ask you as a range of cyber threats we know but let's let me ask about one in particular which is Russia and the threat from Russia organized threat from Russia the other day that just this week the you the British Army's chief of staffs and it Cohen said that Russia now represented the most complex and capable security challenge that we meaning we UK but also NATO have faced since the Cold War and he actually talked about the probability of essentially a massive attack from Russia what's obviously we we've all been through the issue of Russian interference in the US election and possibly in other elections what is what is the US doing to protect itself to strengthen itself from this what looks like quite significant quite ominous threat from Russia yeah I I don't know that we have enough time to tell you everything we're doing I mean I yeah I think it at a very high level we're working very closely with our states and localities Department of Homeland Security is to ensure the integrity of our election systems that's very important we're also working with companies and other countries to have the conversation about what is presented on the internet and the disinformation and whether there is hacking for the purpose of changing the integrity of our information we all rely on information if we can't rely on information then it's very hard to govern as a country so I think it's those two I would also suggest you know we we have seen attacks emanating from that country to critical infrastructure and that is of highest concern to the Department of Homeland Security so we're working very closely with the owners and operators everything from vulnerability assessments to best practices to giving them the indicators through automated means so they can quickly protect their systems but we need to have that conversation is an international community it's not a fair fight to have a nation against a company so we all need to figure out where our red lines are what we're comfortable what behavior is appropriate via the internet if these were happening the kinetic world we but nobody would be comfortable with them so we it's time for frameworks it's a time to align rules that's part of why I'm here I'm having a lot of cyber conversations why I'm here can get very detailed very quickly as you know but at a high level it's about roles and responsibilities and who's going to do what to protect what when and I think it's true to say that it's not a question of if it's just a question of how often so how do we innovate why we're being attacked how do we mitigate why we're being attacked how do we partner to get the information out quickly and I think that's what we're doing at the department thank you to one final question to all of you quite quickly there are a lot of as we've talked about some of them gap between the rhetoric and the reality there are a lot of I think misconceptions that people have about America generally it's about the most paradox of modern media that it's the most it's the most observed but often the most misunderstood country on earth I think and this administration certainly has had a fair amount of attention which has not been very favorable if I ask all of you what's the most important what's the most important misconception what are people as they as they look at America and we see these polls that show America the world many people in the world don't trust America they don't trust the Trump administration they're fearful they actually think it's threatening what what what what what what is the rest of the world getting wrong about this administration this Congress about what what the United States is looking to do in the world oh my goodness where do we start any of you I would say this America has the same fiber we are different than almost any other country because we're conceived in liberty and dedicate the proposition that all men and women are created equal we're one few countries in the world that will give the ultimate sacrifice of our own lives for other countries to have freedom we will never change from that when America is strong economically we can foster those values and those fibers around the world we were beginning a comeback we have not had in quite some time our economic growth brings so much more not just to America but to the world and we are free and willing to share that we like the idea of sharing ideas we want others to have that freedom and that is the fiber of who we are and we'll never change from that and we're willing to stand up and fight for it so somebody asked asked me what Tom what does an American look like it looks like you looks like this audience we are all of you we reflect the rest of the world and America is indeed that's why there is it is a country where there's so much opportunity and that's still true that America still wants to be a nation of immigrants and the nation of a country that that welcomes people from around the world and represents the best ideals absolutely absolutely and I think that is a common misperception and particularly in my portfolio with security somehow security is framed in a negative sense and in a restrictive sense and in a un-American sense to none of those things we have a responsibility as a country to know who's coming into our country and why and that's where we're focused and we're focused on that in partnership so we're working with other countries they have that same responsibility to their citizens but again if we're all safe we can all prosper so there are those who want to do us all harm let's work together to prohibit that harm that's what I'm trying to do the rest of the conversation I'm not really sure where it where it goes and how we get there but it's about partnering it's about protecting our own protecting our citizens protecting your citizens working together in partnership ladies and gentlemen we're out of time we've had a terrific panel to three very distinguished members of the United States government two members of the cabinet majority leader the House of Representatives please join me in thanking them for being here thank you very much