I WONDER IF IT MAKES HOUSE
CALLS.
MARIA: JACKIE, THANK YOU.
THE COMMERCE DEPARTMENT IS
ANNOUNCING NEW PROHIBITIONS ON
THE CHINESE-OWNED APPS, TIC TAC
AND WECHAT, THE NEW RULES WOULD
PROHIBIT BEING SOLD IN APP
STORES AS WELL AS BANNING MONEY
TRANSFERS THROUGH WECHAT IN THE
UNITED STATES.
JOINING ME RIGHT NOW IN AN
EXCLUSIVE INTERVIEW THE COMMERCE
SECRETARY WILBUR ROSS.
MR. SECRETARY, GOOD TO SEE YOU,
THANK YOU VERY MUCH FOR JOINING
US.
SECRETARY: THANK YOU, MARIA,
GOOD TO BE ON WITH YOU.
MARIA: SO, OF COURSE, WE ARE
WAITING ON THE PRESIDENT AND THE
GOVERNMENT’S DECISION ON A
POTENTIAL DEAL WITH TIKTOK BUT
WALK US THROUGH THIS COMMERCE
DEPARTMENT RULING HERE, THESE
ARE SEPARATE FROM THE ONGOING
NEGOTIATIONS BETWEEN ORACLE AND
TIKTOK, CORRECT?
SECRETARY: YES, THE ONGOING
NEGOTIATIONS BETWEEN TIKTOK AND
SIFIA WHICH COMMERCE IS APART.
THESE RULES ARE PUT OUT IN
CONNECTION WITH EXECUTIVE
ORDERS, 13942 AND 13943 DEALING
RESPECTIVELY WITH TIKTOK AND
WECHAT.
MARIA: SO YOU ARE -- THE
COMMERCE DEPARTMENT IS GOING TO
BE BANNING TRANSACTIONS RELATING
TO THE MOBILE APPLICATIONS.
TELL ME WHAT THIS MEANS AS FAR
AS TIKTOK AND WECHAT.
COULD THIS BE TURNED OR
OVERTURNED ONCE WE GET DETAILS
ON A PLAN WITH ORACLE AND
WAL-MART BECAUSE THIS LATEST
PLAN HAS ORACLE AND WAL-MART
ALONG WITH EXISTING AMERICAN
INVESTORS TAKING OWNERSHIP OF THE APP’S U.S. OPERATION, CEO
THE APP’S U.S. OPERATION, CEO
DOUG MCMILLAN WOULD GET A SEAT
ON THE BOARD?
SECRETARY: RIGHT, SEPARATE
SITUATIONS.
THEY ARE BOTH ARE A PROBLEM IN
TAKING DATA TO THE AMERICAN
PUBLIC AND SENDING IT TO CHINA
IS OUR FEAR.
WHERE THEY DIFFER IS THAT WECHAT
IS ESSENTIALLY A FUND’S TRANSFER
AND PAYMENT PROCESSING
MECHANISM.
FOR ALL PRACTICAL PURPOSES, IT
WILL BE SHUT DOWN IN THE U.S.
BUT ONLY IN THE U.S. AS OF
MIDNIGHT ON MONDAY BY THE
COMMERCE DEPARTMENT RULING.
TIKTOK IS MORE COMPLICATED
BECAUSE IN EFFECT THERE ARE TWO
ALTERNATIVES THERE.
ONE IS THE RULES THAT WE WILL BE
ANNOUNCING RIGHT NOW AND THE
OTHER IS IF THERE’S A
TRANSACTION COMPLETED BY
NOVEMBER 12TH.
THE ORIGINAL ORDERS REQUIRED
COMMERCE DEPARTMENT TO
PROMULGATE THESE RULES IN THE
FEDERAL REGISTER BY
SEPTEMBER 20TH.
THE 20TH IS SUNDAY.
FEDERAL REGISTER DOESN’T PUBLISH
ON SUNDAY, DOESN’T PUBLISH ON
SATURDAY.
THAT’S WHY WE ARE PUBLISHING
THEM TODAY.
SO AS TO TIKTOK, THE ONLY REAL
CHANGE AS OF SUNDAY NIGHT WILL
BE WON’T HAVE ACCESS TO IMPROVED
APPS, UPDATED APPS, UPGRADED
APPS OR MAINTENANCE.
SO IF THAT WERE TO CONTINUE OVER
A LONG PERIOD OF TIME, THERE
MIGHT BE A GRADUAL DEGRADATION
OF SERVICES BUT THE BASIC TIKTOK
WOULD STAY INTACT UNTIL
NOVEMBER 12TH.
IF THERE’S NO DEAL BY
NOVEMBER 12TH UNDER THE
PROVISIONS OF THE OLD ORDER,
THEN TIKTOK WOULD BE FOR ALL
PRACTICAL PURPOSES SHUT DOWN.
MARIA: I SEE.
SO YOU ARE MAKING THIS IN
RESPONSE OBVIOUSLY TO THE
PRESIDENT’S EXECUTIVE ORDER BUT
ALSO THE FACT THAT AS YOU JUST
SAID, THE WORRY IS THAT THE CCP
IS STEALING DATA.
TELL US WHAT THEY’RE DOING
EXACTLY, WILBUR.
PEOPLE LOOK AT SOCIAL MEDIA APPS
AND SAY HOW CAN THIS BE
DANGEROUS BUT THERE’S ACTUALLY A
LOT OF DANGERS RELATED TO IT.
CAN YOU WALK US THROUGH IT?
SECRETARY: WELL, SURELY, WHAT
THEY COLLECT IS DATA ON
LOCALITY, DATA ON WHAT YOU’RE
STREAMING TOWARD, WHAT YOUR
PREFERENCES ARE, WHAT YOU’RE
REFERENCING.
EVERY BIT OF BEHAVIOR THAT THE
AMERICAN SIDE IS INDULGING IN
BECOMES AVAILABLE TO WHOEVER IS
WATCHING ON THE OTHER SIDE.
AND AS YOU KNOW, CHINA HAS BEEN
TAKING ALL KINDS OF DATA FROM ALL SORTS OF INTERNET ACTIVITIES
ALL SORTS OF INTERNET ACTIVITIES
AND THAT’S WHAT WE ARE TRYING TO
SCROLL --
MARIA: HOW DOES IT CHANGE WITH
AN ORACLE PARTNERSHIP, IF YOU’RE
LOOKING AT CCP TRYING TO TAKE
SWATHS OF INFORMATION, WOULDN’T
THAT CONTINUE REGARDLESS, WE
HAVE SEEN THE CHINESE COMMUNIST
PARTY IDENTIFY PEOPLE ON THE
OTHER SIDE, WHETHER IT’S
ACADEMICS, HOUSTON CONSULATE,
IDENTIFY PEOPLE ON THE INSIDE OF
THESE COMPANIES AND -- AND RELAY
INFORMATION BACK TO THE CCP, HOW
WOULD THAT END IF TIKTOK
EMPLOYEES ARE WORKING FOR ORACLE
SECRETARY: WELL, THERE’S NO WAY
A RULE AS SUCH CAN PROHIBIT BAD
BEHAVIOR IN THE PART OF
INDIVIDUALS.
THAT’S A QUESTION OF MANAGEMENT,
THAT’S A QUESTION OF
SUPERVISION, THAT’S A QUESTION
OF ENFORCEMENT.
ALLALL THE RULES CAN DO IS LIMIT
THE DATA TO WHICH THEY HAVE
ACCESS AND THAT’S THE PURPOSE OF
WHAT’S GOING ON HERE.
THERE’S ALSO A VERY BIG
DIFFERENCE IN SIZE BETWEEN
TIKTOK AND WECHAT.
WECHAT IS MAINLY USED BY
AMERICAN COMPANIES AS A PAYMENT
MECHANISM IN CHINA AND
ELSEWHERE.
THAT’S NOT BEING DISTURBED AT
ALL AND THAT’S THE BIG FUNCTION,
THAT’S THE BIG MONEY-MAKER FOR
WECHAT.
TIKTOK IS THE ONE THAT’S MUCH
MORE INTO THE SOCIAL MEDIA, THE
LITTLE PLAY -- THE KIDS
EXCHANGING DATA AND ALL THAT,
AND SO IT’S A MUCH MORE
COMPLICATED THING AND I THINK
THAT’S PART OF THE REASON THAT
THE DEALS ARE POTENTIALLY MORE
COMPLICATED.
IT’S BOTH BIGGER AND MORE
COMPLEX INTERPHASE WITH THE
AMERICAN PUBLIC.
MARIA: SO I WANT TO ASK YOU
ABOUT THE AIRLINE CEO’S BUT ONE
MORE QUESTION.
ONE MORE QUESTION, THE U.S. WILL
BE BLOCKING WECHAT AND TIKTOK
DOWNLOADS ON SUNDAY, ARE YOU
EXPECTING RETALIATION FROM
CHINA?
SECRETARY: WELL, REMEMBER, IT’S
NOT DOING THE SAME THING.
OUR RULE IS NOT DOING THE SAME
THING TO TIKTOK AS TO WECHAT.
WECHAT U.S. FOR ALL PRACTICAL
PURPOSES WILL BE SHUT DOWN.
AS TO TIKTOK, IT’S JUST
UPGRADES, MAINTENANCE, THINGS
LIKE THAT THAT WOULD BE SHUT
DOWN.
AT THIS STAGE THE REAL SHUT DOWN
WOULD COME AFTER NOVEMBER 12TH
IN THE EVENT THAT THERE’S NOT
ANOTHER TRANSACTION, SO IT’S
VERY DIFFERENT THE WAY THE TWO
WERE BEING HANDLED AND THAT
REFLECTS THE QUANTITATIVE AND
QUALITATIVE DIFFERENCES BETWEEN
THE TWO APPS.
MARIA: RIGHT, YEAH.
I UNDERSTAND.
YOU THINK THE CCP IS GOING TO
RETALIATE.
YEAH.
SECRETARY: WELL, THAT’S UP TO
THEM, BUT AS TO THE AIRLINE
QUESTION THAT YOU ALSO ASKED,
RIGHT NOW --
MARIA: YEAH, THE CEO’S WILL BE
MEETING WITH WHITE HOUSE -- THEY
MET WITH WHITE HOUSE CHIEF OF
STAFF MARK MEADOWS YESTERDAY AND
WANT ADDITIONAL AID TO HELP THEM
AVOID LAYOFFS BEFORE THE
SEPTEMBER 30TH DEADLINE, MEADOWS
SAID THE WHITE HOUSE CAN BE OPEN
TO STAND-ALONE DEAL FOR THE
SECTOR.
WHAT ARE THE OPPORTUNITIES HERE
SECRETARY?
SECRETARY: WELL, THE ISSUE WITH
TRYING TO DEAL WITH IS THAT AS
OF OCTOBER 1ST, THE AIRLINES AND
THE 25 BILLION WOULD BE FREE TO
LAY OFF 35,000 PEOPLE.
WE DON’T WANT THAT TO HAPPEN FOR
OBVIOUS REASONS.
AIRLINE TRAFFIC IS RUNNING 30%
OF WHAT IT HAD BEEN A YEAR
EARLIER AND IT’S REALLY NO FAULT
OF THEHE AIRLINE.
IT’S THE FAULT OF THE
CORONAVIRUS, SO THE REASON WHITE
HOUSE MIGHT BE RECEPTIVE TO A
STAND-ALONE DEAL IS THAT IT’S
NOT RIGHT TO PUNISH THE AIRLINES
DIFFERENTIALLY BECAUSE OF
CORONAVIRUS.
WE THINK CORONAVIRUS IS SOON
GOING TO HAVE VACCINES IN ANY
EVENT BUT GOT TO BRIDGE THE
AIRLINES AND BRIDGE THE
EMPLOYEES IF WE CAN THROUGH THAT
PERIOD SO THAT WOULD BE THE
PURPOSE OF THE ADDITIONAL
25 BILLION.
MARIA: UNDERSTOOD, WHAT ABOUT
THE FARMERS, SECRETARY?
THE PRESIDENT ANNOUNCED NEW AID
FOR FARMERS DURING RALLY IN
WISCONSIN YESTERDAY.
HERE IS WHAT HE SAID.
>> STARTING NEXT WEEK MY
ADMINISTRATION IS COMMITTING AN
ADDITIONAL, YOU’VE BEEN ASKING
FOR THIS FOR A LONG TIME,
$13 BILLION IN RELIEF TO HELP
FARMERS RECOVER FROM THE CHINA VIRUS INCLUDING WISCONSIN’S
VIRUS INCLUDING WISCONSIN’S
INCREDIBLE DAIRY, CRANBERRY AND
GINSENG FARMERS WHO GOT HURT FOR
A LONG TIME.
MARIA: SECRETARY, THE FARMERS AS
WELL GETTING AID HERE.
A LOT OF PEOPLE SAYING, LOOK,
WHAT OTHER INDUSTRIES ARE THERE
POISED TO NEED MONEY.
THERE ARE A LOT OF THEM.
WHY THE FARMERS MORE MONEY THERE
AS WELL?
SECRETARY: WELL, THE FARMERS
REALLY DESERVE IT FOR THE SAME
REASON AS THE AIRLINES MAY.
THIS IS NOT A PROBLEM OF THEIR
MAKING.
THIS IS A PROBLEM CREATED BY THE
EXPORT FROM CHINA OF THE
CORONAVIRUS TO THE U.S. AND
EARLIER SOME OF THE CONSTRAINTS
THAT CHINA HAD PUT ON
AGRICULTURAL TRADE.
NOW LATELY CHINA HAS BEEN BUYING
A LOT MORE AGRICULTURE FROM US,
BUT STILL THERE’S A LAG AND IT’S
STILL NECESSARY TO GIVE THE
FARMERS A HELPING HAND THROUGH
THIS TEMPORARY PERIOD.
THE FARMERS REALLY DON’T WANT
AID AND WHAT THEY WANT IS TRADE
AND WE HOPE AS WE COME OUT UNDER
FROM THE CORONAVIRUS AND IF
CHINA CONTINUES TO HONOR ITS
PHASE 1 AGREEMENT, WE HOPE THEY
WILL GET TRADE INSTEAD OF AID.
MARIA: RIGHT, BUT THERE ARE
OTHER INDUSTRIES THAT COULD SAY
THE SAME THING, RIGHT?
IT WASN’T THE RESTAURANT’S FAULT
THAT THEY HAD TO SHUT DOWN.
WOULD THE GOVERNMENT BE GIVING
THE RESTAURANT INDUSTRY MONEY?
SECRETARY: WELL, THE RESTAURANTS
AS YOU KNOW GOT PROTECTED IN A
DIFFERENT WAY.
MOST OF THEM ARE IN THE CATEGORY
OF EMPLOYING FEWER THAN THE 500
PEOPLE AND, THEREFORE, THERE
WERE SEPARATE PROGRAMS THAT
WHILE THEY WEREN’T JUST CALLED
RESTAURANT PROGRAMS EFFECTIVELY
IN THE RESTAURANT INDUSTRY.