AN AWARENESS.
JOINING ME RIGHT NOW THE WALL
STREET JOURNAL'S GLOBAL
ECONOMICS EDITOR, JOHN
HILSENRATH.
HERE YOU GO, TALKING ABOUT THE
THREAT OF HUAWEI TELECOM
EQUIPMENT THROUGHOUT EUROPEAN
COUNTRIES AND HERE'S THE
SECRETARY OF STATE SAYING LOOK,
IF THEY USE THIS TELECOM, WE
MIGHT HAVE TO HOLD BACK ON
INFORMATION.
>> RIGHT.
AND THEN WE KIND OF HAVE THESE
PARALLEL UNIVERSES GOING RIGHT
NOW.
AT THE SAME TIME THE PRESIDENT
IS TALKING TO CHINA'S TOP
ECONOMIC ENVOY THIS MARCH 1st
DEADLINE APPROACHES AND IT LOOKS
LIKE THEY'RE COMING UP WITH SOME
KIND OF AGREEMENT OR AT LEAST A
TRUCE THAT'S GOING TO PREVENT
THE U.S. FROM RAMPING UP TARIFFS
ON THE CHINESE WITHIN THE NEXT
COUPLE OF WEEKS.
SO
THERE SEEMS TO BE A TWO-TRACK
POLICY MINDSET GOING ON RIGHT
NOW, DO A DEAL BUT KEEP CRACKING
DOWN ON HUAWEI.
MARIA: THAT'S EXACTLY RIGHT.
WHAT DO YOU THINK ABOUT A DEAL?
WE HEARD YESTERDAY THERE WAS AN
ACTUAL MEMORANDUM OF
UNDERSTANDING WHERE THEY WERE
HIGHLIGHTING SOME OF THE
IMPORTANT ISSUES LIKE
INTELLECTUAL PROPERTY THEFT.
DO YOU THINK THEY'LL MOVE THE
NEEDLE ON SOME OF THE BIGGER
ISSUES, AWAY FROM TARIFFS AND
TRADE?
>> WELL, YOU KNOW, I THINK THE
BIG THING THAT THE CHINESE ARE
GOING TO BE GIVING UP HERE FROM
THEIR PERSPECTIVE IS BUY MORE
U.S. GOODS, BUYING MORE
LIQUEFIED NATURAL GAS,
PETROLEUM, SOYBEANS, YOU KNOW,
TRYING TO SCRATCH THE ITCH THAT
THE PRESIDENT HAS ABOUT THE
TRADE DEFICIT AND IMPORTING MORE
U.S. GOODS.
I DON'T THINK THE CHINESE -- I
THINK THE CHINESE ARE FIGHTING
VERY HARD TO AVOID THE RADICAL
TRANSFORMATION OF THEIR ECONOMY
THAT IN PARTICULAR AMBASSADOR
LIGHTHIZER IS LOOKING AT,
SUBSIDIES TO STATE OWNED FIRMS,
CHAMPION FIRMS LIKE HUAWEI THAT
THE CHINESE ARE OUT THERE
PUSHING WITH STATE HELP.
I DON'T THINK THERE'S A LOT OF
PROGRESS HAPPENING ON THAT
FRONT.
THERE MIGHT BE SOME EFFORTS TO
OPEN SOME MARKETS LIKE FINANCIAL
SERVICES MORE TO U.S. FIRMS,
MAYBE SOME TWEAKS TO J.V.
AGREEMENTS SO AMERICAN COMPANIES
HAVE MORE CONTROL OF THEIR JOINT
VENTURES.
I DON'T SEE THE FUNDAMENTAL
TRANSFORMATION OF THE CHINESE
ECONOMY THAT THE U.S. SET OUT TO
CREATE.
MARIA: THAT'S GOING TO BE
AN ISSUE.
IF THEY'RE JUST TALKING ABOUT
THE CHINESE BUYING MORE SOYBEAN
AND LIQUEFIED NATURAL GAS AND
MAYBE OPENING UP THEIR MARKETS
TO FINANCIAL SERVICES COMPANIES,
HE DOESN'T ADDRESS THE BIGGER
ISSUES LIKE I.P. THEFT, FORCED
TRANSFER OF TECHNOLOGY, EVEN
ESPIONAGE.
HOW ABOUT THIS ARTICLE IN THE
JOURNAL THIS MORNING, TITLED
U.S. CAMPAIGN AGAINST HUAWEI
RUNS AGROUND IN EXPLODING TECH
MARKET, THIS IS FOCUSING ON
INDIA'S POTENTIAL DECISION TO
USE HUAWEI IN DEVELOPING THE 5G
NETWORK, JOHN.
LET'S TALK ABOUT THAT.
DO THESE ISSUES BECOME THAT MUCH
BIGGER, THAT MUCH MORE
COMPLICATED WITH THE ONSET OF 5G
TECHNOLOGY?
>> YOU KNOW, WHAT I THINK IT'S A
SIGNAL OF IS WHILE THERE MIGHT
BE AN AGREEMENT BETWEEN THE U.S.
AND CHINA TO PREVENT THE U.S.
FROM RAMPING UP OUR TARIFFS,
THAT THESE ISSUES BETWEEN THE
TWO COUNTRIES ARE NOT GOING
AWAY.
THERE'S GOING TO BE CONTINUAL
SOURCES OF TENSIONS,
PARTICULARLY WITH HIGH TECH
STATE OWNED CHAMPIONS LIKE
HUAWEI, AND WE'VE ENTERED SOME
KIND OF NEW COLD WAR WHICH ISN'T
GOING TO END ON MARCH 1st.
WE'RE JUST GOING TO BE FIGHTING
DIFFERENT BATTLEGROUNDS.
INDIA AND HUAWEI ARE ONE EXAMPLE
OF THAT.
MARIA: JOHN, REAL QUICK, BEFORE
YOU GO, WHAT DRIVES MARKETS THE
NEXT WEEK?
ARE YOU LOOKING AT EARNINGS?
THE FED?
OR ECONOMIC DATA TO REALLY
ACTUALLY MOVE THINGS IN TERMS OF
VOLUME AND PRICE PERFORMANCE
THIS UPCOMING WEEK?
>> I THINK YOU HAVE TO LOOK AT
ALL OF THAT.
ONE AREA THAT I'M GOING TO BE
LOOKING AT PRETTY CLOSELY IS
JEROME POWELL, THE FED CHAIRMAN
IS GOING TO BE TESTIFYING ON CAP
L
CAPITOL HILL FOR TWO DAYS NEXT
WEEK.
WE'LL GET A CHANCE -- AT THE
SAME TIME, THE GOVERNMENT IS
GOING TO BE PUTTING OUT GDP
NUMBERS SO WE'RE GOING TO BE
GETTING A CHANCE TO SEE HOW MUCH
THE ECONOMY IS SLOWING AND HOW
RETRAINED THE FED IS GOING TO
BE.
MARIA: WE'LL WATCH JAY POWELL