CONNELL: THERE IS SOMETHING OF A
CHARM OFFENSIVE IF YOU LOOK AT
THE CHINESE TELECOM GIANT HUAWEI
SPENDING MILLIONS OF DOLLARS IN
ADVERTISING AND LOBBYING EFFORTS
TRYING TO WIN THE HEARTS AND
MINDS AND MORE IMPORTANTLY,
PROBABLY THE 5G CONTRACTS, OF
COUNTRIES ALL AROUND EUROPE.
THIS COMES AS THE COMPANY IS
STILL FACING RESTRICTIONS IN
DOING BUSINESS HERE IN THE
UNITED STATES, WHERE IT'S SEEN
BY GOVERNMENT AS BEING A
NATIONAL SECURITY THREAT.
WE'RE JOINED BY ANDY PURDY,
HUAWEI'S CHIEF SECURITY OFFICER,
SO ANDY I WANT TO START ENOUGH,
SO MUCH BROADLY IN EUROPE, BUT
LET ME FOCUS A LITTLE BIT ON THE
UK AND THEN WE CAN BROADEN OUT
THE DISCUSSION A LITTLE BIT, AS
TO SAY EVERYBODY ALREADY KNOWS
HUAWEI FACING THE BLACK LIST
HERE IN THE UNITED STATES.
PRESIDENT TRUMP'S NATIONAL
SECURITY ADVISOR ROBERT O'BRIEN
WAS INTERVIEWED BY THE FINANCIAL
TIMES AND HE SPOKE ABOUT WHETHER
YOUR COMPANY WOULD DO BUSINESS
IN THE UNITED KINGDOM OR
CONTINUE TO, AND BASICALLY, HE
SAID IF THE UK DOESN'T BLACK
BITS HUAWEI THE SAME AS THE
UNITED STATES HAS HUAWEI COULD
COME IN AND STEAL STATE SECRETS
FROM THE BRITISH GOVERNMENT AND
THE BRITISH PEOPLE.
HOW CONCERNED ARE YOU THAT BORIS
JOHNSON WILL FOLLOW DONALD TRUMP
AND BLACKLIST HUAWEI?
>> WELL THE FACT IS THAT THE
UNITED STATES GOVERNMENT FOR THE
LAST 12 MONTHS HAS BEEN WORKING
HARD AND NUMEROUS AROUND THE
WORLD PARTICULARLY IN EUROPE TO
TRY TO GET THE EUROPEAN
COUNTRIES, AND A NUMBER OF
STATES IN THE EUROPEAN UNION
INCLUDED TO BAR HUAWEI FROM
PARTICIPATING AND THE UNITED
STATES GOVERNMENT HAS BEEN VERY
DISAPPOINTED THAT EUROPE AND THE
UK ARE TAKING AN APPROACH THAT
LOOKS AT REAL CYBERSECURITY RISK
AND HOW CAN YOU ADDRESS THAT
RISK WITH TRANSPARENCY.
CONNELL: AND YOU'RE STILL DOING
BUSINESS IN MANY OF THESE
COUNTRIES TO YOUR POINT AND YOU
EXPECT TO CONTINUE THAT?
WHAT ABOUT THE UK?
IS A BAN ON HUAWEI A POSSIBILITY
OR A CONCERN IN THE UK?
>> WELL WE HAVE OVER 62
CONTRACTS AROUND THE WORLD
MOSTLY IN EUROPE FOR 5G.
CONNELL: AND YOU EXPECT ALL OF
THOSE TO CONTINUE OR TO EVEN GO
UP?
>> THEY ARE RECENTLY SIGNED YES
AND WE EXPECT THEM TO CONTINUE
AND WE'RE WORKING CLOSELY WITH
THE UK GOVERNMENT TO ADDRESS
THEIR CONCERNS AND WE HAVE A
CLOSE WORKING RELATIONSHIP WITH
THEM, SO WE HOPE THAT WE'RE
GOING TO BE ABLE TO MEET THE
REQUIREMENTS SO THAT WE CAN HELP
MAKE THE --
CONNELL: WHAT ARE THE MAIN
CONCERNS YOU HEAR ARE THE SHAPE
AS THE U.S. THAT YOU ESSENTIALLY
POSE A THREAT TO NATIONAL
SECURITY THAT HUAWEI'S
TECHNOLOGY COULD BE USED TO SPY
AND WE KNOW THE STORY, WE HEARD
THE ALLEGATIONS HERE IN THE U.S.
, THAT THE GOVERNMENT COULD
COME IN AND SAY THAT WE NEED
ACCESS TO THIS DATA, SAME
CONCERNS FROM THE UK AND HOW DO
YOU ANSWER THOSE CONCERNS WHEN
THEY COME UP IN OTHER COUNTRIES
AND HOW DO YOU ESSENTIALLY PROVE
YOU'RE NOT A THREAT?
>> WELL THE CONCERNS ARE
EXPRESSED BY THE UNITED STATES
GOVERNMENT THROUGH VARIOUS
GOVERNMENTS.
THE UK GOVERNMENT HAD SOME
PARTICULAR CONCERNS BECAUSE THEY
HAVE A VERY STRICT REGIMEN OF
ANALYZING OUR PRODUCTS FOR THE
BENEFIT OF ALL OF THE TELECOM
OPERATORS SO WE ARE OPEN TO
HAVING INDEPENDENT TESTING OF
OUR PRODUCTS, SO THAT THAT CAN
GUARANTEE THERE ARE NO BACK DOOR
S AND GUARANTEE THAT OUR
EMPLOYEES ARE NOT DOING ANYTHING
IMPROPER ON BEHALF OF THE CHINA
OR ANY OTHER GOVERNMENT.
CONNELL: THE ISSUE ON THE BACK
DOOR AS ITS COME UP OVER AND
OVER AGAIN AND MANY TIMES YOU'RE
FIGHTING TO SOME EXTENT A
HYPOTHETICAL WHAT COULD HAPPEN
RATHER THAN WHAT HAS ALREADY
HAPPENED THERE IS SOME
EXCEPTIONS, THE VODAFONE CASE
TALKED ABOUT I SUPPOSE IN ITALY
BUT FOR THE MOST PART OTHER
ACTIONS THAT EMPLOYEES AT HUAWEI
HAVE TAKEN OVER THE YEARS,
WHETHER IT'S SOMETHING TO DEAL
WITH INTELLECTUAL PROPERTY THEFT
, HAVE BEEN RAISED OR MORE
RECENTLY WHAT I'VE HEARD AND ITS
COME UP I BELIEVE IN THE UK,
CONCERNS ABOUT HUMAN RIGHTS AND
I DO WANT TO ASK YOU
SPECIFICALLY ABOUT THAT, AND HOW
DOES THE COMPANY ANSWER THOSE
CONCERNS.
MOST PEOPLE IN FOLLOWING THE
NEWS IN CHINA KNOW ABOUT THE
SITUATION AND THERE'S A NEW
REPORT IN A GROUP OUT OF
AUSTRALIA THAT MENTIONS HUAWEI
AND IT'S THE AUSTRALIAN
STRATEGIC POLICY INSTITUTE AND
THEY SPECIFICALLY SAY THAT YOUR
COMPANY, HUAWEI, HAS WORKED
EXTENSIVELY, IN CHINA AND THAT
WORK HAS BEEN DIRECTLY WITH THE
CHINESE PUBLIC SECURITY BOROUGHS
SO THE QUESTION THERE IS HAS
HUAWEI EITHER CREATED OR HELPED
TO CREATE ANY OF THE
SURVEILLANCE TECHNOLOGY THAT'S
BEING USED TO OPPRESS THEM?
>> THERE ARE MULTIPLE QUESTIONS
EMBEDDED IN YOUR QUESTION AND I
HOPE SOME DAY I HAVE A CHANCE TO
ANSWER THEM ALL BUT STARTING
WITH THE LAST QUESTION YOU RAISE
ABOUT HUMAN RIGHTS WE SELL
TECHNOLOGIES TO PROVIDERS WHO
THEN SUPPLY SMART CITIES AND
OTHER SOLUTIONS, SO WE SELL THE
THIRD PARTIES WHO MAY ENGAGE 100
OR 200.
CONNELL: THEY SAY THERE'S DIRECT
INVOLVEMENT CAN YOU EXPLICITLY
SAY THAT HUAWEI IS NOT DIRECTLY
INVOLVED WITH THAT TECHNOLOGY?
>> I HAVE NEVER HEARD AN
ALLEGATION OR SEEN EVIDENCE THAT
HUAWEI DIRECTLY INVOLVED IN
HELPING GOVERNMENTS COMMUTE
HUMAN RIGHTS ABUSES.
CONNELL: THIS GROUP IN AUSTRALIA
SAYS HUAWEI HAS WORKED
EXTENSIVELY AND THAT WORK
INCLUDES WORKING DIRECTLY WITH
THE CHINESE GOVERNMENT'S PUBLIC
SECURITY BUREAU.
HAS THAT HAPPENED?
>> I HAVE NEVER HEARD THAT
ALLEGATION BEFORE AND CERTAINLY
SEEN NO EVIDENCE OF THAT AND
FRANKLY SOME OF THE THINGS THE
U.S. GOVERNMENT HAS BEEN SAYING
PUBLICLY THAT ARE FALSE, REALLY
RAISE SOME QUESTIONS ABOUT WHAT
WE'RE DOING IN THE PUBLIC SPACE.
CONNELL: THE OTHER ISSUE YOU'VE
HAD ISSUE WITH THIS WEEK IS THIS
WALL STREET JOURNAL REPORT,
RIGHT?
AND THE JOURNAL CAME OUT WITH A
STORY I BELIEVE IT WAS OUT THERE
ON CHRISTMAS DAY, AND IT
SAYS THAT HUAWEI'S RECEIVED AS
MUCH AS $75 BILLION FROM SUPPORT
IN THE CHAIN GOVERNMENT WHETHER
IT BE TAX BREAKS, FINANCING AND
CHEAP RESOURCES AND WHAT HAVE
YOU.
IT ALL ADDED UP TO THEY SAY
75 BILLION AND HUAWEI DISPUTED
THAT YOU'VE GIVEN US AND OTHERS
A STATEMENT DISPUTING THAT
NUMBER AND I WANT TO FOCUS ON
PART OF IT THE $46 BILLION THAT
THE JOURNAL REPORTS COMES FROM
LOANS, CREDIT LINES AND OTHER
SUPPORT FROM STATE BANKS, DIRECT
LENDING FROM STATE BANKS, WHERE
THE IMPLICATION, I SUPPOSE, IS
THAT YOU WOULD HAVE A
COMPETITIVE ADVANTAGE OVER
EUROPEAN COMPANIES AND/OR
AMERICAN COMPANIES THAT DON'T
RECEIVE THAT KIND OF SUPPORT IS
THAT NUMBER ACCURATE,
$46 BILLION LOANS CREDIT LINES
AND OTHER SUPPORT?
>> NO IT'S NOT.
CONNELL: WHAT'S THE REAL NUMBER?
>> THE REAL NUMBER IS ABOUT
40 BILLION LESS THAN THAT.
CONNELL: SO 6 BILLION.
THERE'S ABOUT 4 BILLION THAT ARE
LINES OF CREDIT THAT HAVE BEEN
PROVIDED TO OUR CUSTOMERS OVER A
PERIOD OF ABOUT 10 YEARS AND OF
THE ACTUAL LINES OF CREDIT AS I
SAID ONLY ABOUT 4 BILLION HAS
BEEN UTILIZED WHEN YOU'RE
TALKING ABOUT REVENUES OF
HUNDREDS OF BILLIONS OF DOLLARS.
CONNELL: HAS BEEN UTILIZED BUT
THE NUMBER SO WHERE DOES THE 46
COME FROM?
>> WELL THEY'RE CLAIMING AND OF
COURSE THEY WERE USING
INFORMATION PROVIDED BY THE U.S.
GOVERNMENT THAT WAS
ABSOLUTELY FALSE AND
SIGNIFICANTLY INFLATED, AND THE
FACT IS, I THINK THE U.S.
GOVERNMENT SHOULD TELL THE
TRUTH WHEN THEY ARE FILING THE
PAPERS WITH THE FISA COURT AND
MAKING PUBLIC COMMENTS OR
PROVIDING INFORMATION TO THE
WALL STREET JOURNAL.
THE FACT IS THEY KNOW AND SHOULD
KNOW THAT CREDIT LINES AVAILABLE
ARE DIFFERENT THAN CREDIT LINES
BEING UTILIZED AND THERE IS A
BIG DIFFERENCE.
CONNELL: SO THE MONEY, SO IF I'M
UNDERSTANDING IT RIGHT, THE
MONEY WAS AVAILABLE TO BE USED
THE CREDIT LINE COULD HAVE BEEN
DRAWN DOWN BUT IT WAS NOT YOU'LL
ITIZED?
>> THAT'S RIGHT SO THERE'S NO
UNFAIR FAVORTISM PROVIDED BY
CHINA-BACKED CLIENTS . CONNELL:
SO THE CONTEXT, THE JOURNAL
STANDS BY ITS REPORTING, BE
CLEAR ON THAT BUT THE CONTEXT OF
THIS IS THAT ESSENTIALLY YOU
WOULD HAVE A COMPETITIVE
ADVANTAGE AS I SAID EARLIER, AND
THAT'S ONE OF THE REASONS THAT
YOUR PRODUCTS WOULD BE PRICED
CHEAPER THAT YOU'D BE ABLE TO
COME IN WITH CHEAPER PRODUCTS
THAN ERIKSON OR SOME OTHER
COMPANIES YOU COMPETE WITH?
>> WELL THE CISCO FIGURE
CORRESPONDING TO OUR 75 BILLION
WAS 45 BILLION FOR CISCO SO IF
THE CREDIT LINES ARE NOT UTILIZ
ED THEN WE'RE NOT GETTING
UNFAIR ADVANTAGE, BECAUSE OF THE
FINANCE.
CONNELL: ALL RIGHT, ANDY IT'S
NICE TO HAVE YOU ON AND THE
FIRST TIME YOU'VE BEEN ON OUR
SHOW AND HUAWEI EXECUTIVES HAVE
BEEN ON AND WE'LL CONTINUE TO
HAVE THESE CONVERSATIONS INTO
2020 BUT YOU'RE CONFIDENT THE
BUSINESS IN THE UK IS GOING TO
WORK OUT IT SOUNDS LIKE?
>> I'M NOT MAKING PREDICTIONS.
WE ARE WORKING IN EARNEST WITH
THE UK GOVERNMENT AND THEY ARE
VERY SERIOUS TO MAKE SURE THAT
THE RISKS CAN BE ADDRESSED AND
THAT AS THE UK PARLIAMENTARY
COMMITTEE SAID THE