I KNOW, I'M ONE OF THE FEW
PEOPLE AROUND WHO REMEMBERS WHO
MAY WEST WAS.
BUT IT'S WORTH YOUR RESEARCH.
CYBER SECURITY EXPERT, MORGAN
WRIGHT.
DO YOU KNOW WHO MAY WEST IS?
>> I DO.
AND I KNOW WHAT THEY NAMED A
LIFE VEST AFTER IN WORLD WAR II.
LET'S START WITH OUR OP-EDIN
"THE HILL" WHERE YOU FOCUS ON
WHAT THE RUSSIANS AND CHINESE
ARE DOING WITH THE PRESIDENT
REVERSING COURSE TO TRY TO DEAL
I GUESS WITH A BROADER ISSUE,
WE'LL SEE, BUT NONETHELESS, A
FIRM THAT HAS DONE BUSINESS WITH
IRAN AND NORTH KOREA BOTH
DESPITE U.S. SANCTIONS.
YOUR THOUGHTS FIRST OF ALL ABOUT
THE ROLE OF RUSSIA AND CHINA,
LOOK AT THE WORLD'S GREATEST
ECONOMY AND THE LARGEST THE
PRESIDENT HAS BEEN REMINDING
PEOPLE BY TWICE THE SIZE OF THE
NEXT ECONOMY, NAMELY THAT OF
CHINA.
>> IF YOU LOOK AT A LOT OF THE
TECHNOLOGICAL ADVANCEMENTS
HAPPENING IN RUSSIA AND CHINA
THEY ARE THE DIRECT RESULT OF
INTELLECTUAL THEFT OUR PROPERTY.
BUT CHINA HAS BEEN INSIDIOUS
ABOUT HOW THEY DO THAT.
AND I HAVE BEEN LOBBYING TO KEEP
THESE COMPANIES OUT OF OUR
BROADBAND NETWORK.
SO THIS HAS BEEN A PLOT FOR A
LONG TIME.
YOU TRY TO DO BUSINESS IN CHINA
AS AN AMERICAN COMPANY, IT'S
NEARLY IMPOSSIBLE UNLESS YOU
ACCESS TO YOUR R & D.
SEE HOW MANY BUSINESSES ARE
STILL IN BUSINESS IN CHINA THAT
HAVE GONE THAT ROUTE.
LOU: SUDDENLY ZTE THERE IS THE
PROSPECT OF REVERSING SEVERE
PENALTIES AS THERE SHOULD HAVE
BEEN FOR DEFYING U.S. LAW AND
U.S. SANCTIONS AGAINST KNOWN
SPONSORS OF TERRORISM.
THE OPTICS OF THIS ARE LOOKING
HORRIBLE FOR THE TRUMP
ADMINISTRATION.
>> ZTE DID NOBODY ANY GOOD WHEN
THEY SOLD THIS TECHNOLOGY TO
IRAN.
IRAN IS IDEOLOGICALLY ONE OF OUR
BIGGEST THREATS.
THEY ATTACKED US THROUGH CYBER
ATTACKS.
YOU OUGHT TO SEE WHAT IRAN IS UP
TO.
MAYBE NORTH KOREA WILL COME
AROUND BECAUSE OF WHAT'S GOING
ON.
MAKE NO MISTAKE.
WITH THE SIZE AND POWER ZTE AND
HUAWEI * HAVE.
WAIT UNTIL THEY ARE IN YOUR
NETWORK AND YOU HAVE GOT NO
PLACE TO GO BUT CHINA FOR YOUR
EQUIPMENT.
LOU: THE U.S. IS TRYING $SUGGEST
THEY ARE BUYING LOT OF PARTS
FROM U.S. COMPANIES FOR THE
FINISHED PRODUCT.
BUT IT'S THE FINISHED PRODUCT
WHERE THE POWER TO BE A NATIONAL
SECURITY THREAT RESTS.
>> I'LL TELL YOU, LOU, FOR A
LONG TIME THE STRATEGY HAS
BEEN -- I HAVE BEEN AT CISCO
WHEN HUAWEI * WAS TAKEN TO
COURT.
THEY STOLE EVERY BIT OF THE
TECHNOLOGY FOR ROUTERS.
THEY ARE GOING TO TAKE THIS OVER
ONE BITE AT A TIME IT IN ALIGNS
WITH THEIR EFFORTS TO CONTROL
THE INTEREST NETS AND
CYBERSPACE.
DO THEY WANT CONTROL OF ALL
DOMAIN.
SEA, LAND, AIR AND CYBERSPACE.
THEY WILL STOP ATING INTO GET
THERE.
LOU: THE SOUTH CHAIN TODAY SEA
WE ARE TALK ABOUT 40% OF THE
WORLD'S SHIPPING.
THE NATIONAL SECURITY ISSUES
LOOM LARGE HERE.
BUT THE LARGER ISSUE WITH
NATIONAL SECURITY IS THE ECONOMY
ITSELF.
WE HAVE SIMPLY AS YOU HAVE SAID,
OPENED OURSELVES UP TO THE THEFT
OF INTELLECTUAL PROPERTY TO
ACTUAL -- TO ALL SORTS OF
TECHNOLOGICAL SECRETS AND
DEVELOPMENTS.
WE ESTIMATE -- ESTIMATES RUN AS
HIGH AS $600 BILLION A YEAR.
OVER 3,000 FRONT COMPANIES.
I'M TALKING ABOUT INTELLIGENCE
COMPANIES OWNED AND OPERATED BY
THE CHINESE OPERATING IN THE
UNITED STATES.
>> SOME OF THESE PLACES
INCLUDING INSTITUTIONS ARE
TAKING MONEY.
THEY ARE GETTING SUBSIDIZED AND
THEY ARE LOOK THE OTHER X AND
THAT'S THE WRONG WAY TO HANDLE
OUR NATIONAL SECURITY.
THEY ARE NOT GOING TO INVADE US
WITH MILITARY.
THEY WILL INVADE US WITH MONEY
AND BUY STUFF.
THAT'S WHY QUALCOMM WAS TURNED
DOWN.
THAT'S WHY A LOT OF THESE
COMPANIES ARE BEING TURNED DOWN.
EVEN THOUGH IT TOOK THE MILITARY
YEARS TO KICK HUAWEI * AND ZTE
OFF THEIR BASES.
PRETTY SOON YOU THINK THERE IS
SOMETHING THERE WHEN IT GETS
TURNED DOWN THIS MANY TIMES.
THE LARGER ISSUE IS THE
PRESIDENT IS TRYING TO
DENUCLEARIZE THE KOREAN
PENINSULA AND BUILD A
RELATIONSHIP WITH PRESIDENT XI
WHEN THERE IS A CLEAR-CUT
NATIONAL SECURITY ISSUE IT'S ONE
IF WE AVERT OUR EYES IT COULD
RESULT IN UTTER DISASTER FOR THE
UNITED STATES.
>> THESE ARE FOLKS SELLING
SENSITIVE TECHNOLOGY AND HELP
SOMETHING OF OUR BIGGEST PEOPLE
KILLING AMERICAN SOLDIERS IN
SYRIA, IRAQ AND SAUDI ARAIN.
SO THAT'S JUST -- IF YOU WANT TO
SEND A MESSAGE, THIS IS THE
MESSAGE.
THEY OUGHT TO MAKE THE CHINESE
COME BEGGING TO US FOR A CHANGE
TO GET BACK IN BUSINESS.
LOU: THIS PRESIDENT IS ON THE
VERGE OF SUCCESS ON NEARLY EVERY
POLICY FRONT ON WHICH HE
EMBARKED SOLELY CREATED THESE
INITIATIVES.
THE AMERICA FIRST DOCTRINE.
PUTTING STRAIGHTFORWARDLY ALL
AMERICANS THEIR PROSPERITY HE
ASNIEWRD HIS ELECTION.
THIS WILL CREATE A EXTRAORDINARY
DIMINISHMENT OF PROSPERITY IF
NOT I AM
I T I AM DIMINISHMENT OF PROSPERITY IF
I --I AM
>> IF YOU GET ACCESS TO THEIR
I.P. AND RESEARCH AND
DEVELOPMENT?
WOW YOU WANT FAIR TRAIT TRADE,
HAVE THEIR RULES.
WE HAVE BEEN FIGHTING FAIR FOR
TOO LONG.
THIS IS A CHANCE FOR PRESIDENT
TRUMP TO STAND FIRM AND SAY NO
TO CHINA AND MAKE CHINA PAY.