Palantir's Head Of Defense Says 'Xi Jinping Is Decoupling From Us' — Warns America Risks Losing Leverage If China Tech Shift Goes Unchecked - Palantir Technologies (NASDAQ:PLTR)

Mike Gallagher, Head of Defense at Palantir Technologies Inc. PLTR, warned that Chinese President Xi Jinping is actively decoupling from the United States and that America risks losing negotiating leverage by ignoring this strategic shift.

What Happened: “Xi Jinping is decoupling from us. If we ignore it, our own attempts at selective decoupling will happen on much less favorable terms,” Gallagher wrote on X Wednesday.

Gallagher, who represented Wisconsin’s Eighth District from 2017 to 2024 before joining Palantir, made the comments during an interview with popular Palantir investor Amit Kukreja. He emphasized that China has never adhered to promised trade rules since Xi’s rise to power in 2013, particularly regarding the “Made in China 2025” initiative.

The former congressman cited China’s $300 billion annual effort to steal critical technology as evidence of systematic decoupling. He advocated for a strategic U.S. response through selective decoupling coordinated with allies, particularly Japan.

Gallagher referenced former Japanese Prime Minister Shinzo Abe‘s vision of “free flow data with trust” as a framework for enhanced digital trade agreements that could strengthen U.S.-allied relationships while challenging China’s technological ambitions.

Why It Matters: The warning comes amid renewed U.S.-China trade tensions. President Donald Trump recently described Xi as “very tough” and “extremely hard to make a deal with” on Truth Social, though he maintains personal rapport with the Chinese leader.

Commerce Secretary Howard Lutnick announced this month that both nations reached a framework to implement the Geneva consensus following Trump-Xi discussions in London. The agreement includes a 90-day tariff pause and addresses rare-earth exports and advanced technology restrictions.

Palantir shares have surged 448% over 12 months, reaching new all-time highs. The company secured over $113 million in new federal contracts since Trump’s inauguration, including a $795 million Defense Department agreement.

Gallagher previously authored legislation forcing TikTok‘s divestment from Chinese ownership and investigated Chinese Communist Party involvement in the fentanyl crisis while serving in Congress.

According to Benzinga’s Edge Stock Rankings, Palantir shows strong Short-, Medium-, and Long-Term Price Trends. Here’s how the stock performs across other key metrics.