Semafor’s inaugural World Economy Summit brought together top White House officials with foreign officials and executives for a day of discussion about the day’s headlines and the globe’s future amid an intensifying U.S.-China rivalry. There was news. There was sparring. There were zingers. Here are some of the highlights. White House National Economic Council Director Lael Brainard Brainard dismissed concerns that the financial system might suffer more shocks following the collapse of two large regional U.S. banks. “I think the banking system is very sound,” Brainard said at Semafor’s World Economy Summit on Wednesday. “It’s stable.” Brainard cast blame on Silicon Valley Bank and New York Signature Bank for taking “unacceptable risks” with their balance sheets. But she declined to speculate whether more banks were at risk of collapse later this year. She said that after taking “very targeted actions” against the collapsed banks, the government is studying other options to insure that depositors at all levels have their assets protected should another bank collapse in the future. “I think we do have the same playbook that works very well, but it is relevant for banks that fail,” she said, adding that regulators are studying if deposit insurance should be changed. Rep. Jake Auchincloss and Robert O’Brien Auchincloss, a Democrat who sits on the House Select Committee on China, said autocratic leaders in both China and Russia are “salivating at the prospect of President Trump re-entering the White House in 2025.” “January 6, 2021, was Xi Jinping’s best day in office because when the United States degrades its own democracy on the world stage for people all over to witness, it undermines the power of our example,” he said. Auchincloss briefly sparred with former Trump national security advisor Robert C. O’Brien over Trump’s indictment by Manhattan District Attorney Alvin Bragg, which O’Brien referred to as “the darkest day for political prisoners around the world.” “How do we go to a dictator and tell them to release the opposition leader that they just jailed or release the missionary or the reporter, when America just indicted the former president and leading opposition candidate?” he asked. Auchincloss shot back that “there is no journalist who thinks that Donald Trump is good for the freedom of the press” and accused Trump of “fan boying all over Vladimir Putin.” Sen. Mark Warner on TikTok Sen. Mark Warner, D-Va., pre-recorded an interview with Semafor’s Steve Clemons. He delved into bipartisan legislation he’s sponsored dubbed the RESTRICT Act, which could ultimately lead to a nationwide ban on TikTok. Warner tried to diffuse criticism (much of it from the right) of the bill, insisting it would not punish individual users for accessing TikTok using a VPN. He called it “misinformation.” “Nothing in this bill would ever go after any individual,” he said. “There is no expansion of government power.” Former Secretary of Commerce Penny Pritzker Pritzker warned against the US severing ties with China as tensions escalate between the two superpowers, saying that “decoupling” is “very scary.” “We need our governments talking to one another,” she said. “We stopped doing that in the last four or five years and that’s extremely dangerous.” Ukraine Ambassador Oksana Markarova Ukrainian Ambassador to the U.S. Oksana Markarova mocked Russian propaganda for its efforts to frame Ukraine as a failed state, saying that corruption is more prevalent in Moscow. “We have a fraction of Russian corruption always,” Markarova said at Semafor’s World Economy Summit on Wednesday. “And now we see in the army supplies how incapable their army is... God bless Russian corruption, of course, at this stage.” U.S. Trade Representative Katherine Tai Tai argued that trade was a critical lever for the Biden administration to tilt the American economy to benefit workers. “We’re looking for new approaches to help us navigate a very challenging economic time period right now,” Tai said. “And seizing the opportunity to try to set ourselves up for a more positive set of better outcomes from our trade policies working in tandem with our other economic policies.” She also said the U.S. was “affirmatively embracing the [World Trade Organization],” mentioning that the administration ratified a WTO deal on Tuesday to slash subsidies that caused overfishing harmful to marine environments. — Joseph Zeballos-Roig and Diego Mendoza |