Valuetainment - Episode 348： US China Trade War Explained -Who Needs Who？

00:00:00.880 30 seconds. One time for the underdog. Ignition sequence start.

00:00:07.000 Let me see you put them up. Reach the sky, touch the stars up above.

00:00:11.120 Cause it's one time for the underdog. One time for the underdog.

00:00:17.320 I'm Patrick Bedevi, host of ITIM, and today we're going to talk about the Huawei ban,

00:00:20.860 that cell phone company from China that sold 206 million phones,

00:00:24.700 where Trump all of a sudden banned any U.S. companies from working with them,

00:00:28.740 and their CFO Ming, who happens to be the daughter of the CEO, got arrested in Canada.

00:00:33.340 Why so much controversy over a simple smartphone? We're going to talk about that today.

00:00:38.400 First, I'm going to talk about nine reasons why they were banned.

00:00:41.680 Then we're going to talk about their numbers. Then we're going to talk about 5G.

00:00:45.520 Then timeline of what took place with Huawei from 1987 to today.

00:00:49.380 So having said that, let's get into nine reasons.

00:00:51.700 Number one, espionage. Why espionage?

00:00:54.360 Is China using Huawei to spy on U.S. and other countries?

00:00:58.740 Is that really what it is?

00:01:00.080 Number two, competition.

00:01:01.940 Is this U.S.'s way of protecting their golden child of Apple,

00:01:06.880 which has caused Tim Cook and Donald Trump to become texting terms today?

00:01:11.560 They're best friends because Tim Cook just met with Donald Trump on June 13th, on Thursday,

00:01:16.560 and they're having conversations. Why?

00:01:18.220 Because Apple's the golden child company.

00:01:20.480 Steve Jobs, Steve Wozniak, everybody uses their phones.

00:01:23.140 I would much rather have Apple win than Huawei win.

00:01:26.820 Could it be Iran violating the U.S. sanctions because of what happened in China with the CFO?

00:01:31.060 We'll talk about that later on.

00:01:32.320 Is it 5G? Is it first? Is it who gets 5G first?

00:01:35.840 And how much is that worth to the GDP?

00:01:38.100 Whichever country gets 5G first.

00:01:40.060 Is it power? Worldwide domination?

00:01:42.520 Is it cyber war insurance policy?

00:01:44.360 Because what if a cyber war happens?

00:01:46.240 This is our way of the CIA, the NSA, and the FBI preventing us of somebody else,

00:01:51.660 a major empire that went from being top 10 to now being top in the second place

00:01:56.060 and wants to be the most dominant empire worldwide.

00:01:58.660 Spying on America.

00:01:59.600 This is our way of saying, hey, you cannot come and find out what we're doing here.

00:02:02.520 Stealing trade secrets, similar to going back to Made in China 2025 plan,

00:02:06.140 which is any company that wants to do business in China,

00:02:09.020 they have to kind of give their trade secrets.

00:02:10.560 Is this kind of part of that?

00:02:11.660 Or last but not least, is it terrorists?

00:02:12.980 What is it?

00:02:13.560 So before we get into some of these topics, let's look at numbers.

00:02:16.760 Here's numbers for you.

00:02:18.500 Worldwide smartphone market, okay?

00:02:22.000 2018, Samsung was number one worldwide.

00:02:24.660 They sold 292 million phones, okay?

00:02:27.660 That's 20.8% of marketplace.

00:02:30.480 2018, Apple sold 208.8 million, which is roughly 15% of market share.

00:02:36.160 Huawei sold 206 million phones, which is 14.7%.

00:02:39.400 Pat, what's the big deal here?

00:02:41.120 Here's what's the big deal.

00:02:41.980 206 million phones.

00:02:44.400 And many people watching this, you've never heard of Huawei before.

00:02:47.360 Maybe you have, maybe you haven't.

00:02:48.460 But Huawei's third place?

00:02:50.180 Yes.

00:02:50.900 But here's what's important.

00:02:52.400 Look at 2017 where they were at.

00:02:54.580 Samsung sold 317.7 million.

00:02:58.100 They were 21.7% of market share.

00:03:00.940 Apple sold 215.8 million.

00:03:03.040 They were 14.7.

00:03:04.600 Huawei was 154 million.

00:03:06.640 They were 10.5%.

00:03:08.500 Which means Samsung is down 8%.

00:03:11.300 Apple is down 3.2%.

00:03:13.640 Huawei is up 33.6%.

00:03:16.860 That is such a big number.

00:03:18.700 That's plus 50 million phones in one year.

00:03:21.320 When your competition is down 3.2% and your competition is down 8%.

00:03:25.580 So when I looked at this, I said, okay, 206 million phones they sold.

00:03:29.380 They're up 50 million.

00:03:30.980 The U.S. government bans any U.S. companies of doing business with Huawei.

00:03:35.700 But what is their risk?

00:03:37.060 Are they so much in U.S. that this gives them a hard time to do business?

00:03:41.940 Or are they more in China?

00:03:43.580 So let's look at the numbers here.

00:03:44.720 Total smartphones sold in China 2018.

00:03:47.400 Here's what it looks like.

00:03:48.720 2018, Huawei sold 105 million phones.

00:03:51.220 Okay?

00:03:51.740 Which made them 26.4% of all China market share.

00:03:55.940 And Apple sold 36.3 million.

00:03:57.780 They're 9%.

00:03:58.620 And the year before, Apple sold 41 million.

00:04:01.280 And the year before, Huawei sold 90.9 million.

00:04:04.080 Look at this number.

00:04:04.720 You notice Apple's down 11% and Huawei's up about 15, 16%.

00:04:08.600 So let's take a look at this.

00:04:10.160 So if they sold 105 million phones, Huawei, in China alone, and total is 206, what percentage

00:04:16.480 is that?

00:04:17.600 51%.

00:04:18.080 Which means 51% of their phone sales is strictly in China.

00:04:23.660 So I know the U.S. banned, U.S. companies of doing business with Huawei, but 51% is in

00:04:29.420 business they're doing is in China and 49% is outside of China.

00:04:32.920 Very small in America, if any, is in America.

00:04:36.120 Europe, other countries, right?

00:04:37.460 Now watch Apple here.

00:04:39.240 Out of Apple's 208 million phones, 36 million was sold in China, which is 17%.

00:04:44.620 So here's the scary thing.

00:04:47.580 U.S. government banned U.S. companies from doing business with Huawei.

00:04:51.520 Huawei, what would happen if China said, listen, this whole tariff thing is getting a little

00:04:56.320 out of control.

00:04:57.400 We are going to ban Chinese companies from doing business with Apple.

00:05:02.380 What would that do to them?

00:05:03.580 Because iPhone users, there are actively 900 million iPhone users worldwide, according

00:05:09.260 to Apple.

00:05:10.240 Out of the 900 million active, 300 million is coming out of China.

00:05:14.320 Let me say that one more time.

00:05:15.560 Out of 900 million active iPhone users, 300 million is coming from China.

00:05:19.200 That's 33%.

00:05:20.300 That's going to be a very big hit if China decided to turn it around on them.

00:05:25.740 This is one of the reasons why Tim Cook and Trump are meeting together so regularly, because

00:05:29.720 if all of a sudden China makes a decision like that, that's like a tariff on steroids against

00:05:35.020 Apple.

00:05:36.120 And Apple's the biggest company.

00:05:37.560 They tank the market tank. 0.88

00:05:38.820 So it's very fickle right now if this doesn't take place here, and they figure out a resolution.

00:05:43.900 But let me continue.

00:05:44.640 These are the numbers we're looking at here.

00:05:46.140 Huawei and sales.

00:05:47.000 So in 2010, Huawei sold 3 million phones.

00:05:49.820 Then they sold 20 million next year.

00:05:51.220 32, 50, 275, 108, 139, 153.

00:05:54.560 And in 2018, obviously, they sold 206 million phones.

00:05:57.480 Their total revenues in 2018 was $108.5 billion.

00:06:01.800 That's up 21% from 2017.

00:06:04.700 And if you look at the total numbers of phones sold, it's 780 million phones sold during that

00:06:10.660 eight-year run that they went out.

00:06:11.840 So now you look at this and say, wow, it's pretty impressive.

00:06:14.040 I mean, this is good stuff, but what do they do differently?

00:06:16.600 I mean, isn't it just cell phones?

00:06:18.020 Watch the amount of money they put into R&D, research and development.

00:06:22.300 Intel in 2018 put $13.5 billion in R&D.

00:06:25.960 Apple put $14.2.

00:06:27.300 Apple, monstrosity, put $14.2.

00:06:30.180 Microsoft, trillion-dollar company, $14.7.

00:06:33.260 Huawei, $108 billion revenues, put $15.4 billion.

00:06:38.700 And this is China labor we're talking about.

00:06:41.260 This is not U.S. engineer cost.

00:06:43.720 This is China labor we're talking about.

00:06:45.320 Let me put that in perspective for you.

00:06:47.140 Out of their 188,000 employees that they have, 75,000 of their employees strictly focus on R&D.

00:06:54.060 Again, 75 out of 188 is strictly R&D.

00:06:57.940 So after a while, we have Samsung 16.7, then Alphabet 21, then Amazon at the top with $28.8 billion into R&D.

00:07:04.900 So you look at all this stuff, you know, okay, I mean, I get it, good products.

00:07:09.100 They're constantly researching.

00:07:10.640 They're trying to get better.

00:07:11.960 They can't really do business in the U.S. right now.

00:07:14.160 So what, I'm still not getting it, Pat.

00:07:16.180 What is the big deal with these guys?

00:07:18.080 What is the worry?

00:07:19.520 Here's what it is.

00:07:21.060 February of 2019, this is what President Trump tweeted.

00:07:25.940 I want 5G and even 6G technology in the United States as soon as possible.

00:07:30.580 It is far more powerful, faster, and smarter than the current standard.

00:07:34.280 Here, American companies must step up their efforts or get left behind.

00:07:38.160 There is no reason that we should be lagging behind on something that is so obviously the future.

00:07:43.140 I want the United States to win through competition, not by blocking out currently more advanced technologies.

00:07:48.380 We must always be the leader in everything we do, especially when it comes to the very exciting world of technology.

00:07:55.480 Let me read one sentence of this tweet again.

00:07:57.700 Go back to, I want the United States to win through competition, not by blocking out currently more advanced technologies.

00:08:05.840 What does that mean?

00:08:06.720 I mean, isn't it banning Huawei actually banning a better technology that's coming into the U.S.?

00:08:12.160 Is that a good thing or a bad thing?

00:08:13.360 Why are we doing that?

00:08:14.640 But he wants 5G and 6G.

00:08:16.520 And what's the big deal about 5G?

00:08:18.340 What is 5G?

00:08:19.340 What was 1G?

00:08:20.260 What was 2G?

00:08:21.060 Here's what's the difference.

00:08:22.580 1G was the brick phones back in the days.

00:08:24.540 That's what 1G was.

00:08:25.980 2G was the old Nokia phones and a few other phones that were 2G.

00:08:29.480 3G, this is where the speed comes in.

00:08:31.660 If you wanted to download a 2-hour movie on a 3G phone, it would take you 26 hours.

00:08:36.040 If you wanted to download a 2-hour movie on a 4G phone, it would take you 6 minutes.

00:08:41.340 But if you want to download a 2-hour movie on a 5G phone, it'll take you 3.6 seconds.

00:08:46.240 Boom! 0.99

00:08:46.760 You have the movie.

00:08:47.680 Sitting there, iPad, 5G.

00:08:50.140 I want to watch this movie.

00:08:51.560 1, 2, 3.

00:08:53.820 Boom! 0.99

00:08:54.340 You have the movie.

00:08:55.060 Go watch it.

00:08:55.720 That's 5G.

00:08:56.860 And that's scary.

00:08:57.740 And by the way, 5G is not about phones only.

00:09:00.440 5G is about a lot of different technology they're going to be using for.

00:09:03.480 Surveillance, cars, GPS, mapping, technology, internet, faster internet.

00:09:10.340 Oh, so many different things they're going to be using with this.

00:09:13.780 But again, what's the big deal about this 5G?

00:09:16.340 Here's the big deal about 5G.

00:09:17.600 When the race was taking place for 4G, U.S. got it.

00:09:21.920 And everybody said, oh my gosh, U.S. won the race for 4G.

00:09:25.320 You know how much it made U.S.?

00:09:26.640 $100 billion to add it to the GDP.

00:09:29.760 Okay, add it to the GDP.

00:09:31.380 Let me tell you what the race for 5G is, whoever wins it.

00:09:34.380 Whoever wins the race to 5G, it is 3 million jobs added to U.S. economy.

00:09:39.460 And it's $500 billion added to the top-line revenue, GDP.

00:09:45.480 That's the race of 5G. 0.97

00:09:47.280 That's why everybody's after it.

00:09:48.520 But there's a big problem right now.

00:09:49.940 Here's a problem.

00:09:51.580 The race for 5G, China is already testing their 5G technology.

00:09:56.820 And they are projecting that they will be done by 2020.

00:10:01.040 They'll be the first country to be done with 5G.

00:10:02.680 2020, okay?

00:10:04.520 Everybody else, U.S., Japan, South Korea, EU, everybody else is projected to finish by 2025.

00:10:12.520 This is a scary thought, by the way, if they finish by 2025.

00:10:15.440 That's a long time for that to be taking place.

00:10:17.880 That is an advantage.

00:10:18.720 So if they win the contract for 5G, they can go out there and give it to 57 different countries

00:10:23.680 and say, we're not giving it to U.S., but we're giving it to these other countries.

00:10:26.620 So China eventually can catch up by 2025 and pass U.S. and be the dominant empire worldwide. 0.68

00:10:33.080 You don't think they're thinking about that?

00:10:34.620 That's a message they made when the Olympics was in China and they did the most amazing opening show.

00:10:39.400 They want to compete.

00:10:41.880 They want America to know we can compete with you.

00:10:44.220 We're not worried about you.

00:10:45.140 This is very, very competitive right now, right?

00:10:47.400 And by the way, for some of you guys that use AT&T in the U.S., you may say,

00:10:50.000 but my phone says 5GE, that's AT&T, just changing the name of LTE to 5GE.

00:10:57.840 It's a fraud.

00:10:58.520 It's not really a 5GE.

00:10:59.940 It's really a 4G, but they just changed the name to 5G for people to say,

00:11:03.560 I got a 5GE phone.

00:11:04.520 You can go research and look it up for yourself, which is brilliant, by the way,

00:11:08.100 but it's not really brilliant because it's not 5G.

00:11:10.160 So now, this is all the stuff we're looking at, the 5G issue.

00:11:13.200 Now let's look at the timeline.

00:11:14.760 Let's look at the timeline of how this whole thing took place and how we got here.

00:11:17.660 Huawei got started back in 1987 by the founder, Ren Zhengfei,

00:11:22.160 which, by the way, he used to be part of the Chinese military,

00:11:24.540 and he openly talks about the fact that he supports the Communist Party.

00:11:28.520 Very open about it.

00:11:29.840 So in December of 2001, Indian intelligence accused Huawei of aiding Taliban.

00:11:35.020 We're talking 2001.

00:11:36.600 That's 18 years ago.

00:11:37.440 They're already having issues with an intelligence community of India.

00:11:41.700 Then you go to 2003.

00:11:42.880 They decided to start selling phones.

00:11:44.280 Okay, fine.

00:11:44.860 In 2003, Cisco decides to sue Huawei for unlawfully copying intellectual property.

00:11:50.500 This is something they've been accused of many times, but the first one goes back to 2003.

00:11:55.260 Then in October of 2007, Bush administration warned on Huawei 3Com deal.

00:12:00.840 They didn't want this deal to be taking place.

00:12:02.240 So eventually, after a couple years, I think 3Com ends up doing the deal with Hewlett Packard,

00:12:06.320 but not Huawei.

00:12:07.440 Okay, this next one's a little bit weird and interesting at the same time.

00:12:10.360 October of 2010, former UK intelligence boss Andrew Hopkins joins Huawei.

00:12:17.020 We're talking former UK intelligence boss.

00:12:19.380 Not just anybody.

00:12:20.320 This guy's got 40 years plus experience in intelligence worldwide.

00:12:24.340 You want to go work for Huawei.

00:12:25.780 Why is Huawei trying to recruit you?

00:12:27.780 Why are they trying to get into the UK information?

00:12:30.380 What's the purpose behind it?

00:12:31.400 Is it just because you got a fancy degree?

00:12:33.300 Or maybe you got access to certain information that can help Huawei.

00:12:36.740 Huh.

00:12:37.200 Makes you think, don't it?

00:12:38.140 March 2012, Huawei banned from Australian National Broadband Network.

00:12:43.000 Another one.

00:12:43.720 September of 2012, David Cameron brokers a 1.2 billion pound deal with Huawei.

00:12:50.820 I don't want to read too much into it.

00:12:52.200 Maybe they're just doing something because they want the technology to be stronger in the UK.

00:12:55.220 It could be as simple as that.

00:12:56.500 But 1.2 billion UK after the head of intelligence.

00:13:01.280 A little bit weird there.

00:13:02.960 Okay.

00:13:03.120 July of 2013, former CIA head, Michael Hayden, slams Huawei publicly.

00:13:10.060 Slams Huawei.

00:13:11.040 Saying this is not a company anybody should trust.

00:13:13.420 March 2017, WikiLeaks Vault 7 release feature Huawei backdoors.

00:13:18.640 This is when people started seeing some things with CIA and saying, wait a minute.

00:13:22.640 What is really going on with Huawei?

00:13:24.740 I mean, it was a very big red flag.

00:13:26.540 Maybe all these accusations that people are making is accurate. 1.00

00:13:29.240 February 2018, director of CIA, NSA, and FBI warned U.S. citizens against using any Huawei products.

00:13:37.920 Okay, so now this is when it starts getting interesting.

00:13:39.960 April 2018, America alleges possible Iran sanction violation from Huawei.

00:13:45.680 I think something's going on here.

00:13:47.600 This is when, you know, when U.S. has a sanction against Iran.

00:13:50.180 That means you cannot do business with Iran and do business with U.S. 0.99

00:13:53.040 But they were trying to kind of go around and figure out a different creative way of a subsidiary company to use,

00:13:59.820 which we'll get to here in a minute as well.

00:14:01.300 May 2018, Pentagon bans Huawei ZTE devices from military base.

00:14:06.380 Okay, so now this is when things start getting ugly.

00:14:08.240 December of 2018, the CFO of Huawei, Meng Wenjou, which is also the daughter of Ren, the founder of Huawei,

00:14:14.880 gets arrested in Canada.

00:14:16.500 Why does she get arrested in Canada? 1.00

00:14:17.940 Well, because for the longest time, U.S. was trying to get her.

00:14:20.000 And she was evading U.S.

00:14:21.540 And finally, U.S. calls on Canada and says, you've got to arrest her. 0.95

00:14:24.460 And she got arrested.

00:14:25.760 Why did she get arrested? 0.99

00:14:27.160 Because they were using, potentially, allegedly, they were using a company called Skycom,

00:14:33.540 which is a subsidiary.

00:14:35.060 They say it's not, but it's a subsidiary of Huawei.

00:14:38.080 They were using Skycom to do business with Iran.

00:14:40.740 So this causes the chairman of Huawei in January 2019 to say the following.

00:14:46.760 No market can keep us away.

00:14:49.240 Is he insinuating that the 5G is going to be so strong that even U.S. has to figure out a way to do business with us?

00:14:55.700 I don't know.

00:14:56.360 But he said, no market can keep us away.

00:14:58.840 And in May 15, 2019, Trump signs the executive order banning any U.S. company of doing business with Huawei.

00:15:05.580 And that's what brings us to where we are today.

00:15:07.500 So look, you just had an information overload.

00:15:09.100 You've been given so much different information.

00:15:10.580 You're sitting here saying, holy moly, I had no idea this was taking place with Huawei.

00:15:13.820 But let's talk about the spy part.

00:15:15.740 You know, spying, espionage.

00:15:18.480 You may say, well, Pat, you mean to tell me people are spying on us?

00:15:21.300 You've got simple questions to ask yourself.

00:15:23.100 Would you rather have China spy on you or would you rather have U.S. spy on you?

00:15:26.880 What do you mean?

00:15:27.620 If you use Huawei phones in U.S., maybe China has the ability to spy on you.

00:15:32.920 Are you okay with China spying on you?

00:15:34.940 Or if you use an Apple phone, are you okay with Apple being able to spy on you?

00:15:38.340 Somebody says, there's no way in the world that can do that.

00:15:40.980 Isn't that illegal?

00:15:42.180 Let's just say it is illegal.

00:15:43.360 There's a reason why people put Band-Aids on their cameras of their computers.

00:15:46.740 They're not comfortable.

00:15:47.440 Someone's watching me, right?

00:15:48.740 Or are we more receptive to being spied on today?

00:15:51.340 Or is this a new thing?

00:15:52.360 It's been around for a while.

00:15:53.240 If you try to figure that part out, you're going to start watching conspiracy theory movies.

00:15:56.800 You're going to drive yourself nuts.

00:15:57.760 And all of a sudden, you know, start having nightmares that night.

00:16:00.120 Not sleeping and sweating all night long, right?

00:16:01.920 Here's another question about spying.

00:16:03.120 Would you rather have a private corporation spy on you or a government spy on you?

00:16:08.200 If a private corporation spies on you, they do it all the time on Facebook, how do they

00:16:11.440 do it?

00:16:12.180 What is your buying patterns?

00:16:13.440 They're simply spying on you to get more money out of you.

00:16:16.060 That's what corporations do, right?

00:16:18.080 But if a government spies on you, what do they spy on you for?

00:16:20.540 Your next moves?

00:16:21.840 Controlling you?

00:16:22.640 Seeing what you're doing?

00:16:23.860 I mean, these smartphones that we have, these Fitbits we put on, isn't it like a device

00:16:28.160 to kind of track where we're going?

00:16:29.460 So the point I'm trying to make to you is the following.

00:16:31.400 Spying, if you go to the rabbit hole of spying, you're going to go so in too deep, you're

00:16:36.080 going to get more scared about what could happen to you.

00:16:37.900 That's the spying part, okay?

00:16:39.560 But let me talk to you about what I really think is taking place and what I think the

00:16:43.560 president, the administration, Tim Cook, and these companies need to be focused on today,

00:16:47.120 and that is 5G.

00:16:47.840 Because this is the biggest thing.

00:16:49.580 This 5G is the real issue.

00:16:50.880 Let me explain why.

00:16:51.500 China gets 5G in 2020, and say they give it to 57 different countries and not U.S., and

00:16:58.360 we don't get it five years later.

00:16:59.580 And what if they say, we don't want to do anything.

00:17:01.880 Forget about it.

00:17:03.080 And all of a sudden, other countries in Europe, South America, start contacting them to do

00:17:08.640 business with Huawei because they got 5G and they brokered deals, kind of like the Prime

00:17:13.020 Minister, David Cameron, brokered a deal of 1.2 billion pounds with Huawei.

00:17:19.260 What if other countries start doing this?

00:17:21.560 What if all of a sudden, everybody has 5G, everybody has incredible technology, and U.S.'s

00:17:26.600 last five years?

00:17:27.820 What if they go to every one of these guys, EU, South Korea, Japan, and they do it with

00:17:33.560 them, but not with U.S.?

00:17:35.080 So now, watch what happens.

00:17:37.440 When you're raising money and you deal with investors, here's what takes place.

00:17:41.300 You, the entrepreneur, the owner, the shareholder, the investor comes in, you have 20 different

00:17:46.860 markers to negotiate with.

00:17:48.820 I want this much money.

00:17:50.200 No problem.

00:17:50.800 We want this much equity.

00:17:51.800 No, I want fewer equity to give it to you.

00:17:54.720 No, I want this much.

00:17:56.280 No, okay, I'll give you this equity less, but I want to get dividends on the 20 million

00:17:59.820 that I gave you.

00:18:00.840 That's too much dividends because it adds up to this.

00:18:02.580 Yes, it does.

00:18:03.220 Okay.

00:18:03.440 I want three board seats.

00:18:05.240 No way I'm giving you three boards.

00:18:06.240 I'm going to give you two.

00:18:06.980 So you go through the whole thing.

00:18:08.280 And you, the investor, or you, the entrepreneur, have to decide which one you want to give up.

00:18:15.420 U.S. is not in a power position with everything.

00:18:18.340 I know it may seem like it, but they're not.

00:18:20.680 Very simple.

00:18:22.000 And this is the scariest part with the 5G.

00:18:25.080 So President Trump, his administration, with all the advisors, Tim Cook, they all have to

00:18:29.640 sit down and figure out what they're willing to give up and what they're not willing to

00:18:32.980 give up.

00:18:33.680 Because if they just go and say, I want all of it, it may crack 20, 30%.

00:18:39.320 Okay?

00:18:40.100 It may crack.

00:18:41.200 Because they're going to ask for something.

00:18:42.900 Because they have something that U.S. doesn't have.

00:18:45.400 And that's 5G in a year.

00:18:48.120 That's massive.

00:18:49.400 So the tariffs, you want to put 25% on this, 25% on this.

00:18:53.720 I put 25% on soybeans.

00:18:55.200 You put 20%.

00:18:55.640 We can go back and forth all we want.

00:18:57.640 But we've got to sit in a room and lay all these things out.

00:19:00.700 And U.S. has got to say to them, here's what we're doing.

00:19:03.300 I'll cut the tariffs, but you've got to give me 100% of the 5G license to U.S.

00:19:07.800 2020.

00:19:08.280 When you get it, we get it as well.

00:19:09.460 There's no in the world I'm giving you.

00:19:11.060 I want it right off the bat when you get it.

00:19:12.880 I'm not doing it.

00:19:13.860 Okay?

00:19:14.700 Give it to me six months after you get it.

00:19:17.460 But you cannot do business with anybody else.

00:19:20.100 But you can get a head start in China.

00:19:21.740 Just not anybody else.

00:19:23.100 We're not doing it.

00:19:24.940 That's the negotiation of getting 5G to five years.

00:19:27.520 Because we don't have it in U.S.

00:19:28.420 Qualcomm.

00:19:28.820 We're not ahead.

00:19:29.580 There's a lot of companies that are doing it.

00:19:31.720 We're not ahead.

00:19:33.000 They've got to figure out a way to get this technology.

00:19:35.020 That's how big it is.

00:19:35.780 It's $500 billion.

00:19:38.600 $500 billion to the GDP.

00:19:39.960 3 million jobs to the GDP.

00:19:41.940 The battle is going to be a big battle.

00:19:43.380 It's going to be interesting who wins this battle.

00:19:45.240 But it's all about leverage.

00:19:47.120 And they have the leverage on 5G.

00:19:49.020 And they have the leverage on having a population of 1.5 billion people.

00:19:52.480 And U.S. has got 330 million.

00:19:54.200 And they have a leverage of their smartphone.

00:19:56.060 It's not as expensive as the iPhone is.

00:19:57.860 Where Tim Cook is saying, I'm going to make the iPhone cheaper in China so I can compete with them. 0.95

00:20:01.400 There's a lot of leverage.

00:20:02.520 And I hope all the brains can come together and figure this part out.

00:20:06.480 Thanks, everybody, for listening.

00:20:08.120 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.

00:20:12.660 Give us a five-star.

00:20:14.120 Write a review if you haven't already.

00:20:15.560 And if you have any questions for me that you may have, you can always find me on Snapchat, Instagram, Facebook, or YouTube.

00:20:21.600 Just search my name, Patrick David.

00:20:23.160 And I actually do respond back when you snap me or send me a message on Instagram.

00:20:28.500 With that being said, have a great day today.

00:20:30.240 Take care, everybody.

00:20:30.960 Bye-bye.

Valuetainment - July 29, 2019

Episode 348： US China Trade War Explained -Who Needs Who？

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