against huawei including conspiring to steal trace secrets we have from the need for caution in considering license applications the us continues to have major concerns about way this comes as america heightens its global campaign for its allies to ban wall was equipment into their next generation of 5 g. networks but just weeks ago in a blow to the united states u.k. dismissed terms claims and they said that it what allow always 5 g. into the country at least into its non-sensitive parts we clearly have the. people in this country that. they will. want you to whatever. you do not destroy. our ability. to get.

now despite the u.k.'s decision the trump administration is now moving on to warning germany u.s. ambassador to germany richard grinnell said president trump personally called him to make clear that any nations who chooses to use an untrustworthy 5 g. vendor will jeopardize u.s. intel sharing at the highest level of the move also comes just one week after u.s. officials accused wall way of spying for the chinese government using back doors designed for use by law enforcement although no evidence was provided on the access of the alleged back door u.s. officials said they have been aware of it for over a decade u.s. leadership is still issuing warnings saying choosing walk away is choosing a talker see over democracy. this is very dangerous this is that choosing to see over the sea when these nation. it's. putting the state police and every consumer in these countries because

of the chinese way. while we has repeatedly denied the allegations that it serves as a spy for the chinese government well to clear this all up and more we're now joined by always chief security officer andy purdy thank you so much for your time we're very excited to dig right in but i want to start with these latest allegations that while we install these backdoor is that the declassified the information so we welcome the opportunity to see what the evidence is but we really have to look at this in the broader context of the ongoing geo political dynamic between the u.s. and china the u.s. has some major issues with china and right now the u.s. wants to hurt china so badly that they're going to hurt america in trying to hurt while way and that's really a shame it is and right now the trumpet ministration is trying to move forward with these chip regulations to block shipments from the world's largest contract chip maker taiwan t.s.m. c. and that's always one of big always biggest chip suppliers so it's all even prepared for something like this to happen there we've been very working very hard

on the so-called plan b. i got back from some very intense meetings in china more than 2 weeks ago and saw the progress that we're making right now we're selling our 5 g. equipment around the world with no american components as you may know more than nearly 300 american companies want to sell the water we spent over 11000000000 dollars last year this can impact 40000 american jobs directly so these jobs are on the line if america decides for some unknown reason they're not going to allow american companies to sell the wall which would be a big mistake now i want to go back to these these back doors that we're looking at the u.s. accusing wall way of. i mean we've we've seen the united states ask a lot of these tech giants like apple and facebook for example to build these back doors they however have said no is this kind of the same thing that we're seeing then with wa is it is it true that we should just believe that every single private company has some sort of back doors to the government well you look back some years

ago when i brought snowden revealed information about the u.s. program prism and about the 5 year campaign of the u.s. government to spy on operation shop giant where they monitored all while why not work for 5 years and could not find any improper communications and in the prison program they found that the u.s. government used for example cisco equipment to spy around the world most recently the washington post crypto 8 g. a swiss company that turned out is controlled by the cia so they've been monitoring encrypted communications of all the countries in the world except for china and russia so the fact is it is important to recognize the role of the equipment vendors and the telecom and mobile operators all the countries in the world have laws that basically say to the telecom equipment. the telecom and mobile operators that when there is a lawful process they have to provide access we saw in the equipment we don't provide the access we just have the equipment that they can perplex there are equipment into to have that access we don't have access to that is there then

a back door there is a lawful backdoor by the telecom the mobile operators that is triggered by lawful action by governments such as the u.s. government of china government we don't have that access we don't control that data and that brings us back to that 2017 law china chinese companies are then required to work with the chinese government is that right well the fact is that's not right and it's really interesting where you hear 2 different points of view one is the u.s. government says that while way and other companies are required to put in back doors and are required to spy the law says no such thing the china government says the law does not apply but then the u.s. government says well the law doesn't matter because china is not a little rule of law a nation. china would force wall way to do whatever they want but we have protections in place in our partnership we're trusted around the world we can't send the china government or the u.s. government data that we don't have there are processes and technologies in place to make sure that we only access what we're given permission to and then every

keystroke is logged and recorded so the carriers the customers they can see what's been accessed and by whom what happened to it fully automobile so we can prove we're not subject to the young do influence of the china government in that respect now real quick while i have a few lawsuits against the us the latest was against arising for its plans arguing that rising needs to pay for the variety of technologies patented so what's the update to that well the fact is that litigation is pending but we have to remember when you look at things like patent protection why way has received about $1600000000.00 for the use of our patents we've spent $6000000000.00 over the last 5 years for multiple companies to be allowed to use their patent their intellectual property over 80 percent of those companies were american companies so right now we look at all these intellectual property lawsuits in the last 10 years apple had 596 lawsuits samsung had 526 we had 209 lawsuit this is common in that industry i want to ask you one thing before we go on to the next topic why do you think that

the united states and the media who has presented this whole information sometimes like you said even without evidence why is the media so strong and so aggressive toward weiwei what's your take well some of the media it looks like they want to get access to information on exclusives so that they can write a story and get attention of being the 1st story so we've seen some situations recently where the u.s. government apparently with a special relationship with the news media outlet puts a story out that is not based on facts and sometimes we get to respond sometimes we don't but the fact is we've got to use facts such as the u.k. government is used to make a. their decisions about what way now from what it looks like chua way is basically a private company that is unfortunate kind of caught in the middle of a spat between the u.s. and china and the u.s. kind of wants to make an example out of them the u.s. now spend millions of dollars and went on this entire 18 month long campaign around the world to ways awareness of the so-called dangers and threats that apparently

poses but that is where most recently humiliated when the u.k. refused to exclude from its 5 g. broadband network now make no mistake this is a total humiliation not only is the u.k. one of the strongest allies of the u.s. but also never in the course of all of america's history have so many said too much to so little effect so we spoke about all the allegations and accusations aimed directly at huawei but now let's move on to what perhaps a represents and why that might be the bigger threat that the u.s. perceives. it appears that the concerns around way are deeper than just these national security concerns it seems to be about what the company actually represents that it's a business house in a communist nation to rising to prominence power and influence across the world stage so really what is the real threat that huawei poses to america is that the technology or the employer the fact that it can influence away america's biggest ally the u.k.

and probably it makes it look like that it's losing its grip on the rest of the world where we are caught in the middle and after years of concern by the u.s. government about certain things that they believe the chinese government has done that's wrong going to run fair u.s. government is basically united and said the china enough so they've had these discussions about major issues of concern to the u.s. and we also see at the same time the rise of china economically and militarily the united states the u.s. is worried that china wants to take over the world so the u.s. is basically pushing back and part of this is related to the trade talks phase one so far but other phases perhaps will will come about so the u.s. is basically trying to hurt china in terms of the compared to. race rather than concentrating on how to help strengthen the u.s. which has the best technology the best innovation in the world but is not on a path to really drive forward and continue to increase so right now they're putting pressure on wall way and all of government approach to in effect carpet bomb wall way out of existence so they're trying to block our ability to sell to

the u.s. and the ability of 300 companies to sell the us i'm not looking at it dispassionately what's best for the united states in terms of these 2 issues what are the consequences if while we cannot sell the best technology to rural america what are the consequences of $300.00 american companies can't sell the wall but they're not going to have the strength to do the research and development they need they're not going to have the strength to support the u.s. defense industrial base so the consequences to the united states are going to be very great and because of this hostility toward china america is not thinking about this in the sense of based on facts what's best for the united states and that's a shame you talked a little bit earlier in the show about the geopolitics that comes with all this and a little bit about the u.s. china trade war now the phase one deal was signed off not too long ago where it included some wording on an i p intellectual property theft do you expect while we have been at the heart of this trade war for a while kind of since the beginning when people in the u.s.

didn't even know who i was until this trade war started i you one could argue but do you think the chinese government will vouch for awhile way do you think while we will be included in some sort of face to u.s. china trade deal no i think that's pretty unlikely and i'm not sure that it's very likely there will be a phase 2 i hope for the benefit of the global economy that the u.s. and china can reach some major agreements so the trade can be enhanced this idea of somebody does a tariff and somebody increases a tariff somebody does this and somebody escalates that doesn't help anybody we have to look at these issues and try to a to fix these issues without continuing to escalate because escalating is going to . hurt the citizens of both countries and in fact the global economy now exists outside of law where the us and actually most global regulators for that matter have all in recent years have somewhat been threatened by technology things that they don't understand or don't have control of our technology like wow way facebook google alibaba amazon comic cetera all of them have come under attack in recent

years as policy makers attempt to curb their rise to power because let's face it kind of in this new age the most powerful people in the world are now beholden to companies like google who indiscriminately collect data on them or facebook deciding what's news and what's fake controlling the narrative of this audience of over 2000000000 active users so while this is an obvious type who are now between the u.s. and china with ali caught in the middle do you think that there could be a sort of reorganization in the global hierarchy as tech leaders rise to power and influence and the old guard kind of becomes irrelevant well i certainly think there geopolitical consequences around the world i do think issues between the u.s. and china we have to remember the role of europe we have to remember that europe sees itself as a major competitor in the global marketplace and europe wants to be taken seriously and some of the recent geopolitical dynamics of the europe may feel like they're not being treated fairly well things we want to encourage is china has some advantages some ways china can make big investments and do big projects and clear

away obstacles and make things happen but of course they can make stupid mistakes and waste an awful lot of money in the process the u.s. for example needs a public private partnership to work together to figure out what's in the strategic interest of the united states how can the united states advance its innovation it's a technology how can we roll out that technology to benefit organizations benefit individuals we've talked about the force and just your revolution kind of a technology revolution so this technology can enable that job growth enable bringing computing power to the endpoint for the benefit of organizations and citizens in a lot of different ways so we've got to have those smart folks come together to develop for the u.s. . a technology industrial strategy as to what needs to happen how we can measure progress and what the most important things are in research and development but globally the public and private sector working together to create and strengthen uniform standards conformance programs and independent testing to make sure the telecom operators and mobile operators are doing what they need to do and they make

sure the equipment suppliers are doing what they need to do because cyber risk is really a shared responsibility and a party. technology stand by because we have more to discuss and just a few minutes. time now for a quick break but hang there because when we return and a pretty of wa a comes back to discuss the state of 5 g. around the world and what this ordeal has done to the company's business as we go to break here the closing numbers. is you'll be a reflection of reality. in

a world transformed. what will make you feel safe. isolation the whole community. are you going the right way or are you being that. what is true. is. in the world corrupted you need to descend. to join us in the death. or a major in the shallows. americans love. this was a fundamental part of how our political leadership and our country at large understood

the bargain you get a hope and then you know rebel right as the things you don't revolt if you have a stake in the system. dial it back and think about the longer deeper history housings men in the united states not just that question of the american dream but the bigger question of who the dream is for. welcome back now let's turn to 5 g. technology that's the new rapid speed internet well it seems that 5 g.

has been around for a long time 5 g. has only officially launched with some mobile networks including horizon 18 now while he has been at the heart of the race for 5 g. and it said that its technology is far more advanced than the competition and let's welcome back andy pretty chief security officer with weiwei technologies usa and the let's start with simplifying it for the average viewer 5 g. what is the difference between a walk away and its main competitors which are ericsson and nokia what they're for differentiates weiwei will the 3 major areas that 5 g. is bringing which is going to help bring computing power to the edge one has to do with the speed and the amount of data that can pass in a quick manner the other is latency so that the response time is short dramatically so when you look at autonomous driving you look at the the ability to stop the car based on the most current data rather than stopping in one meter maybe you'll stop in one centimeter terms of remote surgery the ability to have the really fine tune connections so there is there's really no pause the ability to have sensors and

machine the machine communication to make very important decisions on our vertical industries and finally the the multiple connections a particular area some of this can benefit in the consumer space for example so if you're at a sports stadium for example and you've got your mobile device and maybe there are 50 cameras around the stadium you'd be able to play back whichever of those videos you want to because there's so much connectivity it's going to be a very important thing so this is going to win a ball this 4th revolution bringing computing power to the end then it's going to make the lives of people that i was that different from your competitors nokia and ericsson so we can handle more speed more amounts of data in terms of the latest. we are at the front end of the of the latency of the shortening of the response time and in terms of multiple devices we can we can service a whole lot more devices and provides

a much smaller carbon footprint so the energy efficiency can be absolutely tremendous i actually recently said that isn't actually that far ahead in the space and that's what they say they it's that they are just as competitive so what do you have to say to the well let me say this in a couple respects last year the chief technology officer of british telecom one of the major telecom operators he said there is really only one provider in the world of telecom equipment talking about why and what i would say is rather than me saying we're better one of these we ought to encourage in the united states and around the world is let's have open competitions let's have opportunities to demonstrate the different aspects of the technology so people can see for themselves and similarly we ought to have some of the equipment like right now in mobile devices you know we open up our telecom mobile equipment to to white house hackers to see whether their vulnerabilities the telecom equipment vendors ought to do the same thing in a recognized alive networks but get the equipment to let white have hackers to look for the vulnerabilities let's encourage this kind of transparency this kind of

competition to help drive everybody to do better and give a little more of an objective basis for knowing where folks stand in the competition do you consider awhile way a capitalist company are you capitalists oh absolutely and in the sessions that we had in china recently as we were trying to adopt this plan b. of where we're going to have to find other technologies to support what we do around the world and we try to prioritize those things that are most important because if we'd have to find more sources we don't want to keep supporting products that aren't as good so this is going to enable us to have a refresh and i predicted in the next 2 or 3 years when you look at the manifestations of the kinds of briefings i receive you will see that in that period of time there's going to be a much greater recognition that while we as one of the. the most impressive companies in the world driven by an entrepreneurial spirit a spirit to meet our customer demands within the context of laws and regulations now are looking at 5 g. implementation let market currently hold. you know i'm not really sure what the

markets are as i'm thinking it's like 20 or 30 percent when we look at the market though i think we see you have to have a business case for the particular telecom operator who's going to be trying to advance of technology and 5 g. is going to be rolling out in stages over the years the 1st one is speed which is really the consumer devices but a number of the other ones are going to be over time and so the telecom operators they don't want to invest any more than they have to because they want to invest and get a recoupment of their investment so around the world as we look at the situation in individual countries so it's not just global you say well what do you stand on the spectrum that's necessary where do you stand on co-locating the poles getting rid of the regulations making sure you comply with the electronic the e.m.f. exposure to make sure everybody's going to be safe so it's every country in the world has to make those decisions and it makes it a fascinating situation around the world. now in light of the recent and diamonds

he is clearly trying to turn on the pressure for a while by painting a picture of a company that has reportedly misappropriated intellectual property but how much of that is actually true microsoft president and chief legal officer brad smith says that the way the u.s. government is treating huawei is quote un-american citing that u.s. regulators have failed to demonstrate to microsoft any concrete proof of wrongdoing so let's talk about the business of holloway how this giant mess has affected business and competition so and huawei has been on the u.s. black list for nearly a full year now how does this actually impacted business and always reputation now that need to spend so much time on p.r. and legal matters rather than focusing on are indeed it seems like a colossal waste of time money and resources well it's interesting when you look at our global revenue numbers year over year for 2019 rep about 18 percent you compare that to to our competitors there's no question that there was an impact on our ability to buy from the american companies our revenues would have been quite

a bit greater than that. and in fact as we move into 2020 it's going to be a challenging time the annual statement by rotating c.e.o. talked about the fact that the global environment there is concerned about that the business environment may be slowing around the world the environment of individual countries it depends on their situation in terms of their capability to buy the transition moving into that rollout of 5 g. is going to affect the speed and timing. of the realization of revenue was this strengthening then your position working around having to work around it well we think that in the next year or 2 our position re much stronger than it was but there's no question that this will be sort of a difficult year we expect to have an increase in revenue but compared to what it might have been it will not be as robust but as i said by the new things we're doing the efforts we're we're making both internally with other suppliers and increasing our research and development from 5. 1000000000 dollars last year to

$20000000000.00 we believe the pair forward is very bright now one idea of limiting always dominance summerfest recently again this idea that u.s. should take a controlling stake in nokia and ericsson or both even to battle hallways dominance in 5 g. so isn't this not hypocritical when one of the oldest accusations where the way has use these unproven chinese ties to the government with back door so wouldn't this actually be worse as the u.s. government would have a controlling stake with an undeniable backdoor will we encourage competition so if the united states' efforts whether it's investing in creating a new american company if it can create real competition i think it would be good for cyberspace right now nokia and ericsson great companies they're not really as strong as they need to be they can't really invest in the amount of research and development they need to be i just hope when the united states is going to make these decisions of whether and how and when to invest in what way that smart people come together to make determinations not just based on gut reaction to china what's

best for the united states what's best in terms of the technology what is possible what is necessary and one can actually come to fruition because if you're going to spend a whole lot of money and it's not going to come out till 60 that's a different calculation that if you can come out later this year or so i just hope people make informed decisions about what is possible and what can really benefit the united states and if they do that that's great well thank you so much andy purdy chief security officer at walt way technologies usa we've learned a lot today a hopefully we could that we've been able to tell the audience and the average viewer what wall is about and all those important questions and we'll see whether or not this chip manufacturing band moves forward because again the triumphal were unsure of trump will sign off sign off on it but we will keep up the development thank you so much and you're welcome thank you for having me well that's it by this time you can catch boom bust on demand on the brand a portable t.v. available on smartphones the google play. and the out watch star by searching

hardball t.v. party must hear t.v. by dialing the farm on t.v. ad on appletini and online apart on the t.v. pilot t.v. will be available on more devices very sad to see you next time. and i noticed that at 1st the usual. by the time australian version they go this route you have to. give me time should come to the nearest. one to fix you. the best of the site and studied to go to later introduces the change most late. night seems to me and says it could only be

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