Valuetainment - July 29, 2019


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


Episode Stats

Length

20 minutes

Words per Minute

195.22417

Word Count

4,006

Sentence Count

449

Misogynist Sentences

6

Hate Speech Sentences

5


Summary

Trump has banned any U.S. companies from working with Huawei, and their CFO, who happens to be the daughter of the CEO, got arrested in Canada. Why so much controversy over a simple smartphone? We re going to talk about that today.


Transcript

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.
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!
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!
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.
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.
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.
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.
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?
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.
00:14:24.460 And she got arrested.
00:14:25.760 Why did she get arrested?
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.
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.
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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.
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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.