let's turn to huawei now. telecoms giant is launching its latest top of the range smartphones at an event in germany later. the mate 30 devices are loaded with expensive features — from superfast chips to full hd displays to high—end leica cameras — as these leaked pictures show. but there will be one major thing missing — the google software and apps most of us use all the time. the trump administration has branded huawei a threat to national security, claiming its 56 technology could be used by the chinese government for spying. claims huawei has always denied. in may, the us placed huawei on a blacklist, restricting american companies from working with it. huawei hopes to keep using google's android operating system on its phones because it's ‘open source' — free for any company to use. but the mate 30 won't be licensed for key google apps including gmail, google maps, and youtube. huawei is offering to sell its 56 technology to a non—chinese firm as a way to address security fears. an idea its deputy chair

they launched in huawei connect. there will be a lot of new products so that will help huawei.r: talk to me about the significance of 5g. apple just released their new iphone 11 with no 5g. samsung phones and huawei phones have 5g give ability's. how much of that is a tailwind for the company's? jun: huawei will be really big next year especially in asian markets. south korea, they have launched service earlier this year. 5% consumers migrated to the 5g networks. china started to deploy 5g networks in the middle of this year. we believe china will be the largest 5g market next year. with 5g networks deployed and the coverage increased, a lot of consumers will migrate to 5g. with a 5g smartphone being launched in the coming quarters, i think especially the chinese $400, thattarget will help them grow the market share. especially in china, if you look at apple market share, they not only have market share in high end, but a lot of middle and consumers. we believe with a 5g launch, huawei and other oem's will gain share in the middle-end market from apple. you forn zhang, thank jo

has imposed on suppliers to huawei, they revolve around new products, so if it is huawei putting out phone, google will have trouble providing huawei with the system and the google apps like gmail and google maps that go with that. that is the small loophole that huawei is jumping through right now. the problem will come when they actually want to do a brand-new phone, which may come a little later this year. that one is likely to be shipping without android, the official google android and google apps. taylor: that was one of my key questions, is you have customers that might be ok for now with an updated software. how long until they become frustrated enough that they don't have the new software, that they start to switch away from huawei? alistair: i think that is a big risk for sure. we were looking at one note today from gene munster, who is a veteran apple watcher, and he was saying this actually might be good news for apple in europe. really, it will probably lead premium providers because huawei will struggle if they don't come with the official google android system when the

taylor: alistair, what is huawei 's long-term game plan? think when android comes out and apple comes out with the new phone, what does huawei do? what is there long-term solution? alistair: the long-term solution is to build an operating system of their own, which they are working on, so they don't need android. the problem comes when you are outside of china. people expect an android phone to have gmail, google maps, the google play store, which is the important one, where you can get all the other apps through the play store. huawei is going to have to build an app store itself, build an operating system itself. and the news that came earlier today about this other email service, proton mail, that is one of the examples where huawei is going to have to go out and provide an alternative to gmail and google maps and all these other google services. taylor: quickly, alistair, is that proton mail enough to satisfy huawei and customers in the short-term? alistair: proton mail is a very specific service to people really concerned. it charges a

can help huawei in making better products by providing more cost effective offerings and making huaweie competitive in the market. therefore we will continue to develop our own chips. >> if huawei remains on this u.s. blacklist for a long period of time, over the long-term, will we see huawei invest more money in some of these core technologies like semi-conductors? and will we also look into other components to begin to source them from elsewhere outside of the u.s. >> huawei welcomes u.s. companies and suppliers to continue providing their products and components to huawei but at the same time we support worldwide collaboration in the supply chain. we believe we can only achieve mutual win by collaborating. >> what if they can't supply huawei what do you do then? >> you can see what you suggest has already happened but against these circumstances, huawei's business remains robust and stable >>> the reality is this blacklisting is already effecting the company. huawei will push ahead with a lunch of their flagship smartphone the company subsequently confirmed that that will be without

military or our allies to use huawei. spyware into their hardware and whether it's their telling medications transmission equipment or their commercial items that are for consumers they are embedded with spyware and can track you and follow you. why is this dangerous? as we launch 5g and as we launch artificial intelligence, autonomous vehicles we do not want the chinese and huawei in china with their allies, russia and iran and north korea to know what we are doing so should we be blocking huawei? absolutely. we should not allow them at all, not one little bit into our telling medications system. they are setting up their foundation for cyber warfare which they fully believe is the way they will move to dominance. we are right to block them and to keep them out of our systems. steve: very clear. are we currently blocking them sufficiently. >> i don't think were blocking them sufficiently but i will tell you we don't need to have them have any gain anymore for tolls. we need to make certain that where there is huawei equi

matthew, these are obviously less than ideal circumstances for huawei?g for huawei to launch their flagship sg device which comes with a price tag of $1000 lacking the full version of the android system and crucially the app the android system and crucially the app store that consumers are so used to downloading apps from. i think it is their biggest challenge today without launch but it is interesting they are choosing to do that in europe. this is obviously a chinese company. they usually launch flagship devices within the home market but this time they are in germany. why do you think that is? what does it say about their ambition that they are starting with germany first then trying to roll out elsewhere? i think they are trying to convince the rest of europe that they are a force for good, they are here to stay, they can challenge some of the us companies like apple and korea's samsung by doing this here. i think they realise they have a very difficult fight to do in the us so they are trying to paint a more positive picture by saying, look, we can

huawei is a big customer for them.hat is not to say they haven't been supplying huawei in the interim. there was the initial shutdown, then they looked at the rules and regulations and found out, we can sell quite a lot of what we have regardless of this clampdown, but this would make the situation more stable. taylor: sarah, aren't these companies worried about ip theft? doesn't this get around that issue of protecting your data? >> what the chipmakers are arguing is the products they are selling to huawei or international security concerns. huawei is on this trade blacklist for these concerns. there's links potentially to the other activities like spying which the company denies. these companies are saying they are not caught up in these allegations. so i think for them it just doesn't make sense. according to this letter that they've written to secretary ross, the longer that they lose their links to huawei, their profits are lower, they have less money for research, and they lose some of their global dominance. it

huawei obviously a chinese brand. they are doing the right thing having 5g out of the gate and given how strong china is in 5g and how important the iphone is to china, i am surprised this year's model did not have 5g as well. huawei should get some credit for having a 5g model ready. taylor: how much of a tail wind is 5g to overcome the headwind of not having android software? mark: that is a very good question. the issue with google not being able to provide huawei with android is really an insurmountable hurdle, in my opinion. so much of using the device is the ecosystem of applications. we await accuracy -- ecosystem --huawei's ecosystem may be decent in china, but outside of china, you rely on access to google services like gmail, all the bells and whistles that having android provides and not being able to do that is a dealbreaker to many consumers, unless they are in china or huawei diehards. taylor: at what point is that phone outdated? >> right out of the gate, not having the android limits the app ecosystem,

huawei is not a member. you talked about the importance of working with our allies on a lot of these issues, but i think it's challenging because not a lot of our allies or not all of our allies in europe or other places are necessarily on the same page and would be willing to limit their own commercial interests in some of these issues. so how do we convince them, how do we work with them to push this agenda? >> down here in front and then this -- let's actually go here with this gentleman and then pass it over there. we'll do the three. >> thank you very much, senator warner. associate director of uacu in kiev, ukraine. i'd like to focus a little if you would expand on your thinking to u.s. education institutions and what could the u.s. government on a larger scale do to support u.s. higher education institutions so that they aren't so backed into a corner as you pointed out with foreign students and with a third of them coming from china. so much is based monetarily on the survivals in the case of the rop

companies to get special licenses to continue selling to huawei this is important because huawei relies on a lot of u.s. companies. micron is a chip company they do business together. losing a big customer like huawei impacts these businesses. the overall micron uncertainty as you can see having a bit of an impact on the european chip makers muted sentiment it has been a theme we've seen the semiconductor industry is continuously volatile when it comes to impact from trade any tensions we are seeing in the trade picture are going to have an impact on this sector. >> thank you do stay with us. european tech reporter here. if you have any views about what is going on in u.s./china trade war. get in touch or treat me directly we'll meet exclusively with the leader of google cloud and talk about why he says the trade war has not impacted his company you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. i had a few good tricks to help hide my bladder leak pad. like the old "tunic tug". but always discreet is less bulky. and it really protects. 'ca

accusing huawei of being a national threat. these are allegations huawei has repeatedly denied.wei is also sitting on a black list that restricts business with american companies. it holds over 50 commercial 5g contracts. it is not all doom and gloom back to you. >> thank you for bringing us that the huawei ceo will speak exclusively to cnbc reporter next week. don't miss it. >>> meanwhile, president trump pressures ukrainian president tore investigate joe biden and his son according to notes from the white house. the report says the president said, quote, do whatever you can to look into the bidens and even offered the help of his personal attorney how much support is there for fooe impeachment and does it matter if you've still got 53 republican senators? >> a great question. that slow burn has started to take off according to nbc news, our count shows the majority of house favors some act of impeachment our count is up to 220 that is 219 democrats and one independent, former republican we don't know at this point. republicans seem to be acting like this is no big deal to them

let's get more on huawei. ae u.s. american companies do business with the telecommunications giant. the washington crackdown is a major risk to the chinese telecom industry, a pillar of its growth. let's head to our china correspondent selina wang. right, paul.is we have top trade negotiators meeting next month. there is still doubt anything is going to be resolved in terms of the technology cold war. our next guest is going to tell us more about that. joining us from san francisco is rebecca fannin, media entrepreneur and author of the new book, tech titans of china. huawei is trying to convince customers that its gear is free of security loopholes. what this huawei say about the ability of chinese companies to gain global trust when it comes to privacy and security? rebecca: this is a big issue. if this is not renewed it is definitely going to escalate the u.s.-china tech and trade war. huawei is being pushed into a corner to develop its own technologies and become much more reliant on its own technologies, and less

also on the show chinese smartphone giant huawei unveils its 1st handheld device without google's android operating system take a look. and german companies set their sights on the huge agribusiness market in brazil critics say it's not about sustainable production but just about making money. it's time for business on the w m how you know to get us welcome to the program it's early in the week but this could already be a decisive one for the u.s. and its trading partners american and chinese negotiators are set to restart talks this week meanwhile the white house has said a deal with japan is also within reach but 1st some context into the trade imbalances that have irritated the white house here's a look at the biggest trade deficit between the u.s. and the countries that does business with we take a look at the china leads the pack with $379000000000.00 that's a big gap followed by mexico and germany japan comes in 4th with a $58000000000.00 deficit that's mostly down to the amount of japanese cars americans by some sizable differences to bridge there but back to the developments this

ashley: i want to talk to you about huawei. you obviously do business with huawei.what has this whole trade problem with them and the security sense, how has it affect your company? >> well, we have a small business in china, less than 5% of our business. so overall, not that large. that's -- we have a lot of customers in china, and some of those get service through and by huawei, and that's really where our relationship comes in place with them because customers say, hey, i want to get vmware value, and i want it on my huawei gear. so we have to together with them in satisfying them. ashley: do the blacklists affect you at all? did you have to apply for a waiver? >> yeah. we are in process with the waiver, and we've also had to find ways to continue to support those customers which are highly committed, a strong presence in china development wise supporting those customers and making sure that anybody who's using our software continues to get a great experience. but i think more importantly, ashley, is the 5g future. and that's really where all this discussion sort

with huawei. that will stop almost completely in a very short period of time and we'll see what happens with respect to china, but huawei has been not a player that we want to discuss, we want to talk about right now. we're not going to be doing business with huawei. we will do our own business. you know the old-fashioned way. we will do it from right within the united states which is what i have been saying for a long time. by the way, speaking of tariffs, there are no tariffs if you want to build or make these products in the united states. there are no tariffs whatsoever. and people are coming back now to the united states. in large numbers. reporter: the senators went to china to meet with vice premier liu he. did you approve that meeting? >> i approved it, my people approved it. china asked for the meeting. they have a lot of respect for senator daines and senator perdue. so do i, they're friends of mine and great senators, doing a fantastic job. i knew about the meeting. i approved of the me

to see some rip and replace on huawei technology that exists in this country. we know huawei does embed malware on their spyware. we know that they do that. we also know that they are trying to build their spy network using this. we also know that in china, you do not know where the commercial sector and the military sector begin and and. they are one and the same, and we do know that huawei is a state-owned company. that huawei, with their telecommunications transmission equipment and their consumer telecommunications equipment, are making enormous plays around the globe and trying to embed their equipment. and people will say, it is so affordable. of course it is going to be affordable. this is their spy network. it is one the u.s. military and our diplomatic missions have been very precise in saying, we cannot transmit to you over sensitive data, over a while way network. -- over a huawei network. >> a bipartisan group of your colleagues has been working on legislation on privacy. i you disappointed we haven't seen the federal -- are you disappointed we have

aile way -- huawei is not member. you talk about the importance of working with our allies, but i think it is challenging because not a lot of our allies or not areot all allies necessarily on the same page and would be willing to limit their own commercial interest in some of these issues. how do we convince them? how do we work with them to push this agenda? .> down here in front let's actually go here with this gentleman and pass it over there. >> thank you very much, senator warner. uacu ine director of kiev, ukraine. i would like if you could expand on your thinking with regard to u.s. higher education institutions and what could the u.s. government on a larger scale do to support u.s. higher education institutions so they are not so backed into a corner, as you pointed out, with foreign students and with 1/3 of them coming from china, so much is ofed on survival in the case rapid rising higher education costs in the united states, of those institutions needing to bank on those students because without it, our st

huawei stages a comeback in connectivity. modems while apple has to buy the cellular division. huawei edges on a assembly as apple outsources most of its production to china and while both companies lean heavily on taiwanese partners, huawei is going entirely diy for its smartest smartphones and high-tech production lines. so at the final whistle it is hard to call a winner at the moment and it will have to go to extra time to see if one of these can truly do it alone one day. mind the youngs to to song with or without you, can they live apart? that is a developing story we will continue to track the let's go back to the markets, looking at india futures four minutes from the open, up a half percent. we will go through the setup. we missed out on trade yesterday because of a holiday, so we will be taking in a combined move what you saw over the last few days. there are indications we have a --ghtly positive start of friday's session, monday's session was interesting because theaw the nifty rescaling crucial milestone of 11,00

they are one and the same, and we do know that huawei is a state owned company. we also know that huawei with both their telecommunication transmission equipment and their consumer telecommunications equipment are making enormous place all around the globe and trying to embed their equipment. people will say, well, but it is so affordable. of course it's going to be affordable. this is their spy network and it is why the u.s. military and our diplomatic missions have been very precise in saying we cannot transmit to you over sensitive data over a huawei network. >> host: final question. >> we spoke about privacy and in a bipartisan group of your colleagues have been working on privacy and the release has been delayed a couple of times. i wanted to know are you disappointed that we haven't seen that federal privacy bill released yet? what does the timeline for legislation look like from your perspective? >> guest: well, you know that i love it disappointed. peter, and i have talked about this for years. was seven years ago that i was leading the privacy working gr

ways your thought about huawei? it's a strange story.states considered an espionage threat, a major threat across the world to our allies, yet we are seeing a tepid at best response to that warning. >> absolutely. if we actually become reliant on huawei or critical telling like 5g were we are essentially letting in the ultimate trojan horse. it would be less of a a as trophy if we had sold at&t to the soviet union dural the cold war because then we would only be worried about telecommunication data. but they would be able to access every part of our daily lives because 5g is going to connect everything together. lou: why wasn't huawei removed from the global forum sooner, having a pivot all role in security? >> that's a wonderful question, and i wish i knew the answer to it. having huawei in that forum for cyber-security is like inviting a member of the kgb into a cia planning session it doesn't make a lot of sense. but huawei is obligated to support the chinese government. lou: it's been a reality for years. >> i don't know why they hav

and huawei? there is something missing, isn't there? >> thank you for having me. most critical thing is missing, and that is the full android operating system. this phone will be super behind out of the gate. this is honestly sort of a disaster scenario for huawei, ,hipping a new high-end phone the company getting a lot of its on the phone. it's possible if the trump administration chooses to allow google to give android support to huawei that you will be able to get android in november, but we do not know what decisions the trumpet ministration will make, and as of now, i don't see why anyone outside of china would buy this thing. we talk about how it compares to the iphone, i think it is interesting that .uawei has 5g capabilities that is a plus for this phone. >> 5g is huge. i will give you two reasons why this is so huge. this is a phone that will be primarily sold in china because they do not get google services in china anyway. china has the largest proliferation of 5g so far, so it makes sense it would have 5g support in a 5g country. the other thing and th

we've got to be tough on huawei, very tough on huawei. that's the best way to teach china that they can't sell whatever they want here in america and not let us sell in china. i have a concise and pointed request to the white house this morning. tell china forget about it. don't let china exclude our nation's security and huawei from the negotiations. let me remind president trump and his advisors that over the past several years china has endeavored to keep our blue-chip technology companies out of its markets. when it does allow american companies access, it makes the transfer of proprietary intellectual property and technology to chinese companies a precondition. when american companies don't play by the rules, sorry -- when american companies don't play by their rules, chinese companies steal the technology. president trump, you've been tougher on china than president bush or obama. i'll give you some credit for that. but it'll all come to naught unless we actually take action. don't let huawei sell here. don't let huawei get the comp

huawei says the u.s.open talks eventually if there is to be any chance of a trade deal. chief security officer andy purdy says he cannot imagine a situation where washington does not ultimately speak to huawei. the company is a focal point in u.s.-china tensions and is sometimes seen as a potential bargaining chip. washington banned huawei from u.s. tech and wants america's allies to blacklist the company. saidrump administration is to be considering an executive order to crack down on shipments of the opioid fentanyl. sources say the move aims to pressure china to help the u.s. to fight its ballooning prescription drug addiction. the draft order would target foreign shippers using the u.s. postal service, but not ups or fedex. president trump has criticized china for not doing enough to curb the flow of fentanyl. and the international monetary fund about trade have reached a peak and are almost 10 times the level seen in previous decades. it says those worries could shave .3% off global growth this year.

. >> host: congressman mcnerney, would you own a huawei phone? >> guest: absolutely not. >> host: why? >> guest: the thing about huawei and 5g, they're all connected, while what is the cheapest stuff out there but it's not secure. when you introduce a non-secured element into wi-fi, for example, you put the whole system at risk. i have a lot of concerned about huawei, about what relationship it has with the government of china, what is in that hardware and software. we may need to look at having a federal ban on using huawei in federal security or federal applications. we may have to actually put federal money together to smaller networks who can't afford to replace these inexpensive devices so that we have a more secure network. >> host: every caucus and we've asked the question of has given the same answer. does it concern you when you see our allies working with huawei, like germany, et cetera? >> guest: it does concern me. and again it's the same thing. they got to the market with the cheapest product first and i think hats off to china for t

china's tech giant huawei has been one of the most frequently name to mention names when it comes to the trade dispute between china and the u.s. washington accuses the company of spying and has prohibited american companies like google to cooperate with it while you are way denies the allegations it has understood that it will have to make things work without u.s. partners this week while we will introduce its new smartphone and munich the 1st one without google android. once upon a time it was a company little known outside of china now huawei is widely recognized as the tech giant on the frontlines of a dispute between the world's 2 largest economies consumers may see it primarily as a smartphone maker it's the 2nd largest in the world after some song but within the telecommunications sector the company is known primarily for its prowess in 5 g. the next generation of super speedy highly reactive mobile networking. it's 5 g. technology that's raised the company's profile internationally 45 of the world's 50 biggest phone carriers use its network equipment but many countries most n

meanwhile huawei sets present its latest smartphone the may 30 on september 19th in munich and unlike its other phones this one comes without google's android operating system and without apps like you tube or google maps that after washington banned google from making its technology available to huawei investors will be closely watching just how well the chinese tech giant can sell without a name brand operating system. and for more on this let's go to our financial correspondent only bods in frankfurt this must put huawei at quite a disadvantage actually to not have google's operating system what do you think yes i think that's a big there's advantage you're right because people want a high quality camera on a quick processor and a bright screen and all the comfort the way hardware offers them they've come a long way big competitor in the market they've gone a pill all the way but they also the consumers need the apps they need the conative of the the maps and they need g.-mail they've become used to that android is an android is a name and that allows them to be connected so i thin

huawei was right in the cross hairs of what we're talking about here, that's a good example. >> when it comes to your op-ed today, you talk about house democrats picking fights, running out the clock, using delay tactics, but you yourself talked about being the grim reaper for bad legislation on the house side, whether it is medicare for all or other things could you blame pelosi if she came out and said i will be a grim reaper myself >> i am talking about things we can agree on usmca is something we can agree on i don't expect her to take up measures that we think are important all by ourselves, meaning the republicans, nor will i be taking up this whole litany of leftwing proposals they have been passing in the house. that's not designed to make law. that's designed to take a position and they made it clear, today's democratic party is on the far left of virtually every issue. but we do have divided government when the american people elected divided government, they say why don't you look for things you can agree on and do those. usmca is right at the front of that list of things

stuart: you bring in huawei.e dispute with china as much about security as it is about trade. lots -- susan: leverage. stuart: precisely. we're tracking dorian. the latest from the national hurricane center, dorian is about 105 miles east-northeast of west palm beach, florida. we have a live report from florida coming up for you. >>> the mayor of london taking a shot at president trump over the storm. he is mocking mr. trump for canceling a trip to poland to deal with the hurricane dorian. then playing golf. we'll tell you more about what he had to say. ♪ devices are like doorways that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it'

and the fact that huawei and d.t.e. pose serious threats to the national security of the united states and its allies. the time there had been a lot of discussion about what was happening in europe and other places around the globe about whether or not huawei would be allowed to participate in networks of our allies and what that could mean for u.s. national security and our ability to continue to engage in national security conversations, intelligence operations, sharing of information, and the like. and so in that conversation, secretary pompeo had said -- and this is the entire group of the senate foreign relations committee, both republican and didn't members -- in that conversation secretary pompeo said what would help is to let congress' voice be heard when it comes to huawei and z.t.e. and we should send a strong message to our allies that our concern with huawei and d.t.e. is -- z.t.e. is not a republican or democrat issue, not just a one-term congress concern but an ongoing concern that we have with the secur

our financial correspondent leigh bods in frankfurt only what kind of disadvantage does this put huawei out it has to be a pretty significant one yes it does one comment in the german media today said that basically with the android while way you can say goodbye to the european market yes it has high quality hardware camera processors screen but it's really nothing without the kind of activity with the application and the apps that you can load and also the social media that you're connected to the mail system g. mail which comes with android so in all likelihood we don't know this but in all likelihood way is going to lose customers without the android and this is going to be a boon to the competition 1st and foremost probably sam's own perhaps less so so apple but it's also of course the disadvantage to the consumers who have one less company to choose from in this important market with android technology and with a while way hardware technology and only very briefly i want to ask you about this bread showdown today i would imagine investors are very interested in what's going on ther

plus, huawei sues the u.s. for the very thing the u.s. had accused huawei of doing. what facebook now doesn't like, and charlie breaks it on overstock's stubborn troubles after controversial ceo patrick byrne quits in a hail of glory or whatever you want to call it. we're less than an hour to closing bell. happy september. let's start "the claman countdown." ♪ ♪ liz: and we are just getting this dismal breaking news. the u.s. coast guard has just announced that it has called off the search efforts for survives after that boat packed with scuba divers caught fire near an island off the southern california coast early this morning. officials said 34 people died while 5 crew members jumped in the ocean and did manage to survive. while california copes with that tragedy, we will get to the markets and get you any breaking news on that story if it becomes available. in the meantime, this first trading day of the month of september starting on a decidedly negative note. right off session lows at the moment, down 328, the s&p down 26, the nasdaq lower by 105. but is what's

so huawei there are two sides to that. will consider, a hundred year bond at appropriate time. >> mr. secretary -- >> the effective negotiating strategy a set of -- delaying that. >> when you say continuously delay we have tariffs on we have tariffs on 550 billion of goods i wouldn't exactly call that a delay, and -- and -- and any negotiation first of all, there is no question the only reason why china is seriously negotiating with us is because of the tariffs. and this president is dealing with that issues should have been dealt with the last 20 or 30 years. so -- tariffs do work it is what brought them to the table. no different on that sanctions work. and the president, of course, is a negotiator this delay was a good will gesture nothing he more than that. >> -- >> spoke with chinese, can you guarantee the -- >> i spoke to the chinese i believe a week ago, there is a deputy level meeting that is set up i believe either next week or following week, they are coming here, we expect they will be active work done ambassado

frankly, there's over 24 million consumers in the areas that huawei covers.provide technology and capabilities for operators in these regions. because of our experience, many, many years of experience in rural china, building up the rural chinese technology -- or the communications networks. as we go forward, we are able to provide that expertise, both in the product solutions that we offer that are scalable, both to high levels to large customers, but also to the small customers. along with our services and support that we customize based on the needs of the customers. the rural customers are a small customer base themselves and are limited in their funding and capabilities and resources, so we help fill that gap. scarlet: a headline that crossed a couple minutes ago is that u.s. prosecutors are investigating huawei, potentially expanding their probe on criminal cases. caroline: this wraps into the issue of stealing intellectual property, which is the main accusation. i want to ask you, therefore, the new additional instances of alleged technology theft -- i

we can eject huawei. but it is going to take a lot of determination on our part and a little bit of money. lou: what i'm getting at is under the obama administration, china extraordinarily increased its influence in this region, in the western hemisphere. i understand the global aspect of their search for dominance as well as their quest to overcome the united states, but i'm talking about in this region, where there is no -- there's no ambiguity about it whatsoever. but there seems to be great ambivalence within our own government about how to deal with the exploitation of civilian initiatives, whether it's building a civilian port, deepwater port that could be used for as you point out the chinese navy, the fiber optic cable systems that are -- offer really just windows to the chinese intelligence agencies. this is mindlessness on the part of the administration of barack obama and what in the world are our agencies doing right now? >> yeah, you know, you go back to previous two administrations and actua

that probably means making token concessions around, for example, the restrictions on huawei that haveeen under way in the united states. and do you think angela merkel will be holding back, in terms of discussing issues in hong kong and xinjiang? europe likes to think of itself as a champion of human rights around the world, but it rarely follows these up with diplomatic sanctions. so with all of this at stake we are more likely to see a concession in terms of opening up see a concession in terms of opening up europe... 0r continuing to open up up europe... 0r continuing to open up europe... 0r continuing to open up europe for access, for example, for companies like huawei. and we should also bear in mind that germany isjust should also bear in mind that germany is just about to take a decision about who in the 5g space is going to be considered what they call a trustworthy vendor to supply to germany. diplomacy expert hosuk lee—makiyama joining us earlier. in other business news making headlines, h&m has stopped buying leather from brazil because of environmental concerns highlighted

mcnerney,gressman would you own a huawei phone? rep. mcnerny: absolutely not.he thing about while way -- the thing about huawei, it is the cheapest thing out there but they are not secure. when you introduce a nonsecure element into wi-fi for example, you put the whole system at risk. i have a lot of concerns about huawei, what relationship it has with the government of china, what is in that hardware and software, so we may need to look at having a federal ban on using security or inal federal applications. we may actually have to put federal money together to help smaller networks you can't afford to replace these inexpensive devices, so that we have a more secure network. peter: every congressman we have asked that question of has given the same answer. does it concern you when you see our allies working with huawei, like germany et cetera? rep. mcnerny: it does concern me. again, it is the same thing. they got to the market with the cheapest product first, and hats off to china for that. but they don't run by the same rules that we do. and when you have equ

we are not doing business with huawei. it will stop almost distinctly in a very short period of time. we will see what happens with respect to china. but huawei has not been a player we want to discuss. we want to talk about right now. we will not be doing business with huawei. we'll do our own business. you know, the old-fashioned way. we will do it right from within the united states, which is what i've wanted to do for a long time. speaking of tariffs, there are no tariffs if you want to build or make these products in the united states. there are none whatsoever. people are coming back now to the united states. in large numbers. >> reporter: the vice premier of china, did you approve that meeting connect was it helpful? >> president trump: i proved and my people approved it. china asked for the meeting. they have a lot of respect for senator daines and senator perdue. so do i, they're friends of mine. they are great senators doing a fantastic job. i knew about the meeting. i approved of the meeting. we really have bipa

prosecutors are investigating huawei, on new cases of technology theft.is according to people familiar with the matter potentially expanding their , probe on criminal cases. caroline: this wraps into the issue of stealing intellectual property, which is the main accusation. i want to ask you, therefore, the new additional instances of alleged technology theft -- is this something that is new to you? how are you responding to prosecutors? are you in day to day touch with prosecutors in the u.s. government? >> i cannot really comment on ongoing litigation. i believe that information is related to those investigations. what i can say is huawei is a leader in ip. we have over 90,000 patents globally. we have 20% of the global 5g essential patents, and we are a proponent of fair and equal licensing and so on. we license over $6 billion worth of ip from other companies, and we also sublicense our ipo to other countries and companies at about $1.4 billion annually. we are concerned about ip theft we are concerned about ip theft as much as anyone because we do ho

. >> host: emily birnbaum, huawei. what's the status of huawei in this country? >> it is, the word, a political football, you know, it is a deeply aboard by a lot of china hawks on capitol hill who say there's obviously a variety within that but mainly there's widespread distrust, skip the schism, widespread belief its equipment poses a real national security threat to the u.s. sometimes it can be difficult to distinguish what type and what is evidence-based. you know, we do know obviously while we have some ties to the chinese government. huawei the same right now it's sort of a a life or death momet because of all of these efforts to cut off its relationship with the u.s. i think as of right now it's still one of the most prominent instances of a chinese tech company that people are concerned about and talking about right now. >> and it's very indicative, the way it is been tossed back and forth like a political football like you were saying, i just how close our ties are with chinese companies here in u.s., and how hard it is to extricate ourselves. we got a 9