In this short clip, Patrick Bet-David, Roger Stone, Vincent Oshana and Kai Lode talk about whether India is going to be the next china.
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Roger let me ask you a question how how Do you view India The the DNA the DNA I'm not talking About like I'm talking the DNA of India Who is India to you I I can't even answer the question I Don't have an impression I've never been There I don't know I I guess what I'm Asking for like they just did they just Pass up China and total population I Think I just saw a report a couple weeks Ago either they're there or they're About to pass up China because the Average age in India right now is 27 the Average age in China is 20 38.4 years Old so China is getting older and India Is getting younger because India doesn't Have a you know one child family policy India is like keep making the babies Right and China is now realizing we made A big mistake we kind of need the Younger generation to lead an innovation So India apple is now moving a lot of its Manufacturing chips all of that to India Gradually without offending China Because China could fully disrupt uh Apple's business if they turn on Tim Cook so Tim Cook's I believe Tim Cook is Doing it very subtly And say no China we're still going to Make chips with you we're just moving 25 To India no no China we're going to make Ships with you we're just moving 50 if
China all of a sudden thinks that they Know he's going to move 100 away from China I think China is going to make a Disruptive move but here's where I'm Going with this The U.S companies are sitting there Saying where can we build the things That we need to build Biden's speech he Talked about how in U.S we used to make 40 percent of their chips now we make 10 Yep we saw a statistic a couple years Ago during covet that used car prices Doubled all of a sudden because China Was producing 80 percent of chips that One Asia was producing 80 percent of Chips I think it was China Indonesia I Think it was like a few countries that Were doing 80 if you remember that Statistic right we've all seen that So now the fear is If we go in bed with India what is the History with Indian and again I'm not Asking because you said I don't have a Thought on it I wonder what So so for example a carrier Insurance Carry eyes to do business with big Company you know who they are very big Company They approached us we signed a contract Okay we go to their City they invite us Down I meet all the executives all the C-suits it's a great experience we can Do a lot of business together Uh direct competitor of mine has a
Meeting in their meeting they tell them If you don't drop your contract with Them we won't do business with you those Guys were bigger than us okay The following Monday a big player come To what comes to us from that company The one that we signed a contract with They fly out with their lawyers And they said we need to meet with you With our lawyers the only time insurance Carriers come and meet with the CEO with Lawyers is because they're terminating The contract so I say no problem let's Go to my office so we go into my office I'm sitting there with my chief Compliance officer my and a couple other Guys and you see this guy Says we're here to terminate the Contract I said what's your cause We just don't think this relationship's Going anywhere I'm like very weird you Have to have like placement isn't good Or this isn't good in this case we've Had it where our placement wasn't good And we lost the contract in this one we Didn't have So I said but I want to hear a reason Now I know the reason because I know the CEO of the other company gave a speech And that speech a guy that was in the Room came to our company and he called Me and he says hey just so you know in a Recording in a speech this is what this Person said to you about you
So you don't have a reason no we just Don't think this relationship's going Anywhere no problem That guy who came and terminated the Contract is no longer with the company The guy above him his boss just reached Out this week he wants to have a meeting With me one-on-one we're gonna have a Conversation ticket and sit down and Talk I decide whether I want to do Business with this guy or not To protect the relationship in the way We write up the contract is to make sure You can't suddenly within a week Terminate my contract you got to give me A two-year uh what do you call it run Rate before you terminate right the only Concern I have is if America locks onto Another Nation to be our number one Provider for chips or technology or Resources We have to be careful to not strengthen India in such a way that years later They become the next China 2.0 and it's 2035. now India's bullion American we're Saying we created the next Monster So if you go back and you think about The deal that Nixon struck with China And what U.S has done with China the Last five decades how different approach Would we take with a country like India To make sure we don't turn them into a Another country that bullies us because They know they own us well I think it
Would require having a president who Says perhaps we shouldn't be making our Chips outside the United States perhaps We shouldn't be making our most Important pharmaceutical drugs outside The United States isn't the best way to Keep control of these industries and to Provide economic opportunities for Americans to build these things here so Why are we Outsourcing them always Because the labor there is cheaper yes But the National Security implications Are obvious uh add to that that Countries like China but specifically China are systematically buying up all The natural minerals like Cobalt things That we need to build chips and to build Other technology I think that this is Where the policy of America First and Returning these uh National Security Sensitive Industries back to the United States is absolutely key and so my short Answer is I wouldn't be making the chips In China or India I'd be making a mirror Well here's here's a challenge though With that who brought Toyota to America Who brought Toto to America Remember when we're like wow you know Competition America is only who a GM Against Chrysler against you know Obviously same thing versus Ford and This this that I was like no we should Let Toyota in So this is when if you remember Milton
Friedman's old videos when Toyota came Into America hey let's let him compete What a Toyota Force Ford and other Companies to do and make cheaper cars And improve because Toyota was producing A good car for Middle America So we helped Toyota blow up into what Toyota became because of U.S sells Toyota guess what other people sell it As well so we allowed BMW we allowed Mercedes we allowed all these other guys To compete against the other car makers Who won realistically the the U.S Citizens won because we forced Ford and A lot of other guys to compete to Produce a better car but we didn't stop Making Fords and Chevys in the United States exactly they wouldn't stop making Them but here's kind of where I'm going With that I agree today I have 10 Engineers in my office in Dallas but I Also have 10 in India okay You the engineers I pay here let's just Kind of throw a number out there if They're 150 here they're 50 in India So so what they'll do is these Technology consulting firms will come to You and they'll say we can do the same Work for you But you have to pay 150 with us you only Pay 100 Grand a year for these guys so They take the split between the the Salary they pay them which is a 50 50. They keep the 50. they have to deal with
The HR and they get the project done so Hey the next Sprint is going to require 293 hours for this upgrade it's going to Cost you this much the next spring Anyways we do the math with that So as long years Um labor is going to be cheaper in India In you know other places the capitalist Is going to find a way to save money by Using those resources because for at for Apple to build an iPhone chip in India Versus America Roger the numbers the person's gonna say Oh you want to buy an iPhone and build An America no problems 2500 bucks I Don't want to pay that's crazy exactly Because the labor is expensive here but The labor is cheap in India so it and Then the alternative is to say what well You can't build it in it's got to be in America Then the average American takes a hit I Can't afford to buy this so it's a very Much of a tight cyclical cycle that We're all need this is why China knows America needs China right now we can't Step away from them dramatically all I'm Saying is we're leaving China that Resignation from China is coming may Take five years may take 10 years may Take 15 years it's coming okay when it Does we have to deploy it elsewhere for 5 10 15 20 years one of those places is Going to be India how do we do that to
Make sure when we give all this business To India they don't all of a sudden Become the next enemy we're dealing with 10 20 years from now That's the question so I think I think Kind of to go back off of what Roger Mentioned earlier that Nixon wasn't Necessarily the one that that caused China to become China what it is I think There's a lot of mistakes along the Along the way and I think the biggest Thing that we've learned here is that China can take everything that we have But we can't send what we have to China So as long as India doesn't just close Off itself where it says okay we're Gonna now take your Facebook and we're Going to call it India Facebook we're Going to take you're this and we're Going to call it this then as long as You have some where there's a big open Where not only is America itself a Market for consumption but also we Produce and we sell things to Europe and All the other places where as where China is a they produce for themselves And then they produce for the rest of The world so as long as you're able to Have it go both ways then I don't think There's as much of worry of that as what We face with China where even if if you Invest in China you can take the money Out if you do all the limitations are on The way that's where I'm going yes and
That's where I'm going then I think the Structure on how we brokered that deal Needs to be in place before we deploy All this business to them let's let's Put a deal together yes here's what the Deal has so there's there's a really Interesting thing actually that they did In Norway was when in nineteen in uh December 23rd 1969 I'm pretty sure when They found oil in Norway uh what they Did was that American companies had gone Into a lot of other countries and Basically just done private bought the Land brokered a deal uh had the Resources and then funneled the money Out more or less right but in Norway What they did was they set up a Structure in terms of like you're saying A deal of who's responsible who gets What right so in this case there was a Lot of help and assistance from America Where obviously conica Phillips shell a Lot of these companies made a lot of Money Exxon you name it but at the same Time they also helped educate the Norwegian Engineers so that so that over Time they'd learn how to do it and the Deal deals and the licenses were set up In a way where Norway as a country also Benefited vastly from the resources as Well as the private companies that came In to develop and help essentially get The oil out of the ground so Pat what Would you put in a contract like that
What what you know about stuff like this What type of iron-clad stipulations Would you put in so something like a China doesn't come up come about where It says not it's not too aggressive on Our side but you know make sure that This doesn't happen Yeah I mean here's here's how I look at These things I don't know is the number One answer because I need to see the Deals but in if if I'm selling my Company to his private Equity Firm okay And they're coming in ore if I'm selling 20 to them 50 to them 55 to them or 100 To them right you're gonna have 20 Different uh deals that you're Negotiating okay 20 different markers You're negotiating Board seats he wants three out of five Hell no you get one out of five because If he's got three out of five they can Fire me okay well I don't care about Three out of five because he's buying Sixty percent anyway so who are you to Say no he can't have three out of five How about we make four out of seven I Get three you get four I still have Those three in there let's not make it Five let's send it to seven okay I don't Care I'm still fully in control all Right there's the price there's a dollar There's my commitment afterwards there's A non-compete how long do you want me to Not compete if I'm selling the company
To you do have a two year non-compete Five-year non-compete 10-year Non-compete there's 20 things that you Negotiate right the first thing I would Do is I would go to the guys that have Done the deals with all these other Countries and say what are the 20 points Let's put them all out and I'm gonna Tell me the history of the deals where We won the most Tell me the deals that we had where they Won the most and why so China won 90 to The point of us winning they won a lot And we gave them way too much control Covet exposed the hell out of how much U.S relied on China to even make the Shots the vaccine all this it would just Say very ridiculous thing that covet Exposed on how much I knew once you get Those things Then you sit there and say hey India Here's what we're willing to do if not Guess what you do well whether you do it Or not we're going to let Apple produce The stuff here really no problem Anything Apple sells that's made in India is going to be a 25 tax on an Apple go ahead so forget about putting It on you we're going to put it on Apple So they can't come to India or you can't Do that that's our number one customer No it's your number one customer But they're out of America so let's have This come okay okay America I understand
What you're saying of course you Understand what I'm saying let's do a Deal where long term you understand we Brought this business to you wait a Minute Pat who wrote your remarks was it Donald Trump I was gonna say I was gonna say Pat 2024 Yeah no but by the way that's what was Attractive about him doing the deals With the people that he did do you know Who speaks like that do you know who Speaks like that Who speaks like that operators A person who runs a company a person who Operates a military a person who Operates a team a person who's in it That's dirty ugly nasty not a politician They don't speak like that because Politicians like Yeah I got you a deal I got you deal Don't worry about it what he always used To say is that uh the other countries Send send Killers to the negotiating Table we send social workers yeah you're Right uh and you see this goes all the Way back to 1988 where he's saying wait A minute uh I'm I'm for free trade but I'm also for fair trade your markets Have to be open to our products as well As vice versa and this is also why he Opposed these one size fits-all trade Agreements uh in favor of doing an Individual deal with Germany and in Different individual deal with France
And an individual deal with any nation Which makes a lot more sense rather than This one size fits all TPP and so on so I think it's about reciprocal rights I Mean you would not want to put yourself In a situation visas we say India Where we're moving jobs and business There but their markets are closed to Our goods and services uh Roger Uh I've been in the financial business For 20 years there's insurance companies Will go to on their floors all the Engineers I'm not going to name them but I've been to most of them I say hey we got 300 Engineers here Really yeah what are you recruiting from MIT nope IIT IIT yeah what's IIT where's IIT based Out of India IIT is officially a better school at Producing Engineers than MIT I don't know if you've ever seen this Exercise they did it's pretty epic they Take a battery a wire and all these Basic things and they go to an MIT Institute graduate and they say hey here Put this together they're like oh I Don't know how to do this then they go And do the same thing at an IIT Institute graduate oh this is easy we'll Learn this in our first year and they Put it together and then they said as Good as MIT is IIT is passing these guys Up I spoke at their University in Mumbai
I don't know what year it was 5 000 People were in the audience and you can See the hunger in these guys's eyes and They're all about technology you know Innovation all of that so I think these Guys are going to be the next China They're a little bit more reasonable They're a little bit easier to deal with They also have a history of issues and Problems their enemy is Pakistan and a Few other guys neighboring people that They have uh I uh Anytime a company you would much rather Negotiate with a company when it's worth A billion dollars than when it's worth 100 billion dollars I think U.S has to Start negotiating now before It's too late and they say no we don't Want to negotiate with you that's all I'm saying so if you like this clip and You want to watch another one click Right here and if you want to watch the Entire podcast click right here [Music]
