Palantir Technologies Inc. (NASDAQ:PLTR) CEO Alex Karp drew a sharp line on U.S.-China relations this week, warning that Beijing is actively exploiting American vulnerabilities through fentanyl, technology platforms, and influence campaigns, and arguing that America's greatest defense lies in strengthening itself from within.
Karp Says US Must Counter China's Tai Chi Strategy With Internal Strength
Speaking on the All-In Podcast Tuesday, Karp was asked by Venture capitalist Chamath Palihapitiya about China's role in supplying precursors for fentanyl that Mexican cartels traffic into the U.S.
"Obviously, Palantir and I are wildly skeptical of the CCP," Karp said, invoking his background as a longtime Tai Chi practitioner.
"The way you engage with China is by making sure the internal dynamics of this country are very strong. Magically, the external dynamics over there will shift."
Palantir CEO Calls Cartels Narco-Terrorists Behind Fentanyl Crisis
Karp agreed that China seeks to destabilize the U.S. through fentanyl and TikTok but stressed responsibility lies at home.
"It's their job to destabilize us. It's our job to be stable," he said. "If you're strong, there is no fight. If there's a fight, you've already lost something."
When pressed on whether cartels should be treated as terrorists, Karp backed the idea. "These [groups] are killing 50,000 to 100,000 of our people.
The fact that they think they can get away with this is a real problem," he said, warning that weak responses risk either collapse or a slide into authoritarianism.
US-China Trade Slump Raises Alarm Over China's Economic Growth
On Sunday, Economist Mohamed El-Erian warned of "significant challenges" for Xi Jinping's growth model after U.S.-China trade data showed a sharp decline.
Chinese exports to the U.S. fell 33% year-over-year in August, while imports from the U.S. dropped 16%, pushing overall export growth to a six-month low of 4.4%. El-Erian said the numbers highlighted the need for stronger government efforts to reform China's economy.
Nearly half of U.S. companies in China urged President Donald Trump to remove all tariffs, according to the American Chamber of Commerce in Shanghai. The survey found 48% of companies sought the full elimination of tariffs and nontariff barriers.
Trade tensions, sparked by Trump's April "reciprocal" tariffs and China's retaliation, had caused major disruptions. Although temporary reductions were agreed upon in May, tariffs remained 30% higher than January levels.
Chinese shipments to the U.S. fell 33.1% and U.S. imports to China dropped 16%, creating "immense uncertainty for foreign companies," the AmCham report said.
Price Action: Palantir shares rose 4.01% to finish Tuesday at $162.36 and were up 1.95% in premarket trading on Wednesday at the time of writing, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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