OPEN.
>> MARIA: CONNELL, THANK YOU.
CONNELL McSHANE IN
PENNSYLVANIA THIS MORNING.
LET'S GET BACK TO THE TOP STORY.
PRESIDENT TRUMP ISSUES AN ORDER
BLOCKING BROADCOM'S $117 BILLION
TAKE OVER OF QUALCOMM.
THE ORDER SAYS THE TAKEOVER
COULD RESULT IN, QUOTE, ACTION
THAT THREATENS TO IMPAIR THE
NATIONAL SECURITY OF THE UNITED
STATES.
I WANT TO BRING IN NATIONAL
SECURITY ADVISOR UNDER FORMER
PRESIDENT GEORGE W. BUSH STEVEN
HADLEY.
THANK YOU FOR JOINING US.
>> NICE TO BE HERE.
>> MARIA: HOW DO YOU VIEW THIS?
>>
?>
?IS THERE A NATIONAL SECURITY
RISK, IN YOUR VIEW?
>> THE CONCERN ABOUT THIS IS
THAT QUALCOMM IS AT THE CORNER
OF THE CHIP BUSINESS THAT IS
GOING TO LINK AND ENABLE A WHOLE
FAMILY OF DEVICES TO TALK TO ONE
ANOTHER.
IT'S CRITICAL TECHNOLOGY.
AND I THINK IT MAY BE LESS ABOUT
THE BROADCOM TAKEOVER AND MORE
ENSURING THAT QUALCOMM IS ABLE
TO MAKE THE INVESTMENTS SO THEY
CAN KEEP UP WITH HAUWEI WHICH IS
A CHINESE BASED COMPETITOR, A
FORMIDABLE COMPED TORE
FORMIDABLE COMPETITORE
FORMIDABLE COMPETITOR AND THE
UNITED STATES NEEDS A STRONG
ENTRY IN THIS BUSINESS.
>> MARIA: THE IDEA WAS BROADCOM
WOULD ACQUIRE QUALCOMM AND BREAK
IT UP.
IF IT WERE TO BREAK IT UP, IT
CAN'T COMPETE EFFECTIVELY WITH
WOULD
HAULD
HAUWD
HAUWEIIN CHINA.
>>
.>
.WE ALL WANT FREE MARKETS AND
THERE IS SOME CONCERN WHEN YOU
SEE THE GOVERNMENT BLOCKING A
DEAL AND THEN YOU SEE THE
TARIFFS COMING ON.
DO YOU WORRY ABOUT PROTECTIONISM
AND THE SIGNS OF NATIONALISTIC
TENDENCIES IN THE U.S.?
>> OF COURSE WE DO.
AND EVERYBODY SHOULD.
THE FUNDAMENTAL PROBLEM IS THAT
THERE IS AN ASYMMETRY BETWEEN
THE U.S. MARKET AND THE CHINESE
MARKET.
THE CHINESE MARKET IS
INCREASINGLY CLOSED, THROWING UP
BARRIERS TO U.S. COMPANIES AND
OF COURSE THE AMERICAN MARKET IS
QUITE OPEN TO CHINESE
INVESTMENT.
THAT ASYMMETRY CANNOT GO
FORWARD.
WHETHER IT WAS HILLARY CLINTON
ELECTED PRESIDENT OR DONALD
TRUMP, IT WAS GOING TO HAVE TO
BE ADDRESSED.
THE TRICK HERE IS TO GET THE
CHINESE TO OPEN THEIR MARKETS SO
WE CAN MOVE IN THE DIRECTIONS OF
OPEN MARKETS WITH SOME
PROTECTIONS OF NATIONAL SECURITY
ON BOTH SIDES, RATHER THAN
HAVING BOTH MARKETS CLOSE DOWN.
THAT'S THE TRICK HERE.
>> MARIA: THAT'S A BIG TRICK AND
I DON'T KNOW THAT IT'S GOING TO
HAPPEN.
THE CHINESE WON'T EVEN ALLOW A
FORD MOTOR TO GO OPEN A PLANT IN
CHINA TO SELL TO THE CHINESE
WITHOUT SAYING FIRST GIVE US ALL
THE TECH IN YOUR
THE TECHNIN YOUR
THE TECHNOL YOUR
THE TECHNOLOGOUR
THE TECHNOLOGYUR
THE TECHNOLOGY IN YOUR CAR, GIVE
US THE INFRASTRUCTURE AND THE
SECRETS, IF YOU WILL.
I'VE GOT A REPORT THAT SAYS
CHINA'S PARTICIPATION IN VENTURE
DEALS, FINANCING EARLY STAGE
TECHNOLOGY COMPANIES TO ASSESS
HOW LARGE THE OVERALL INVESTMENT
IS, THEY'VE CONTRIBUTED TO A
RECORD LEVEL 7% TO 10% OF ALL
VENTURE DEALS DONE.
SO WHAT SHOULD THE PRESIDENT BE
DOING NOW TO SLOW DOWN THE
AGGRESSIVENESS OF CHINA IN TERMS
OF ACQUIRING OUR INTELLECTUAL
PROPERTY IN SOME OF THE MOST
IMPORTANT INDUSTRIES OF
TOMORROW, A.I., ROBOTICS, ET
CETERA.
>> ABSOLUTELY.
HE SHOULD DO TWO THINGS.
ONE, WHAT HE IS DOING, PUT
THIS ISSUE FIRMLY ON THE TABLE,
DOCUMENT THE KIND OF PRACTICES
BY CHINA THAT ARE A PROBLEM,
MAKE SURE THIS IS CLEARLY ON THE
TABLE.
SECONDLY, CHALLENGE CHINA TO DO
SOMETHING ABOUT IT.
CHINA IS GOING TO ANNOUNCE SOON
MARCH OR APRIL A NEW WAVE OF
REFORM AND OPENING UP.
HOPEFULLY THAT REFORM AND
OPENING UP, WHICH INVOLVES
OPENING UP TO INTERNATIONAL
COMPANIES LIKE AMERICAN
COMPANIES, WILL INVOLVE SOME
MEASURES THAT WILL ADDRESS THESE
THINGS.
BUT WE'VE GOT TO GET THIS ISSUE
RESOLVED.
WE'VE GOT TO PUT THESE ISSUES ON
THE TABLE.
, THESE CHINESE
PRACTICES ON THE TABLE AND CHINA
NEEDS TO RESPOND.
>> MARIA: SOUNDS LIKE YOU AGREE,
THIS WAS THE RIGHT MOVE TO BLOCK
THE BROADCOM DEAL.
>> I DON'T KNOW ALL THE DETAILS
OF IT.
ONE OF THE THINGS THAT IS A
LITTLE TROUBLING IS THAT THE
PROCESS, THE INTERAGENCY PROCESS
HEADED BY TREASURY THAT LOOKS AT
THESE DEALS HAD NOT YET
COMPLETED ITS REPORT.
THE PRESIDENT APPARENTLY, PRESS
REPORTS SAY HE DECIDED TO ACT
ANYWAY.
I'M A LITTLE CONCERNED THAT THE
PROCESS HERE, YOU KNOW, THESE
ARE IMPORTANT TRANSACTIONS AND I
THINK THERE NEEDS TO BE A
DELIBERATENESS OF THIS PROCESS
SO PEOPLE UNDERSTAND IT'S DONE
ON THE MERITS, NOT FOR POLITICAL
REASONS.
>> MARIA: VERY GOOD POINT.
>> THAT BOTHERS ME A BIT.
>> MARIA: WE'LL CHECK OUT THAT
PROCESS AND WHY IT WASN'T
STANDARD.
LET ME TURN TO THE WALL,
BUILDING THE WALL, PRESIDENT
TRUMP IS HEADED TO CALIFORNIA
TODAY.
FIRST TRIP TO CALIFORNIA WHILE
HE'S PRESIDENT.
HE WANTS TO PERSONALLY ASSESS
EIGHT PROTOTYPES FOR THE BORDER
WALL.
WATCH THIS.
>> I THINK THAT THIS IS AN
IMPORTANT THING THAT THE
PRESIDENT HAS TALKED ABOUT, THE
SAFETY AND SECURITY OF THE
COUNTRY AND STRONGLY FEELS THAT
THE WALL IS A BIG PART OF THAT
AND HE'S GOING TO LOOK AT THOSE
PROTOTYPES.
>> MARIA: WHAT'S YOUR TAKE ON
THE BORDER WALL AT THIS POINT,
STEVEN?
>> I DON'T KNOW THE DETAILS OF
THE BORDER WALL.
PRESIDENT SOMETIMES HAS SAID
IT'S GOING TO BE A WALL,
SOMETIMES ESSAYED IT'S GOING TO
BE A COMBINATION OFFENSING AND
HIGH TECH THINGS.
>> MARIA: DEPENDING ON WHERE IT
IS, THAT'S RIGHT.
>> THE KEY THING IS, WE'VE GOT
TO TAKE CONTROL OF OUR BORDERS.
EVERYBODY HAS KNOWN REALLY SINCE
PRESIDENT BUSH TRIED TO GET
IMMIGRATION REFORM THAT IT'S GOT
TO START WITH SECURING THE
BORDER, GETTING A HANDLE ON
ILLEGAL IMMIGRATION.
ONCE YOU SATISFY THE AMERICAN
PEOPLE THAT WE'VE GOT A HANDLE
ON THAT, YOU CAN BEGIN TO
ADDRESS THE BROADER ISSUES OF
IMMIGRATION REFORM.
BUT IF WE CAN'T LOCK DOWN THE
BORDER, THEN WE'RE NOT GOING TO
GET THERE.
WE'RE GOING TO BE STRUGGLING
WITH THIS ISSUE FOR A LONG TIME
TO COME.
SO PEOPLE ARE GOING TO HAVE TO
WORK OUT WHETHER IT'S A WALL,
WHETHER IT'S A FENCE, HOW WE'RE
GOING TO PAY FOR IT.
BUT THE POINT IS, WE'VE GOT TO
GET CONTROL OF THE BORDER, GOT
TO GET CONTROL OF ILLEGAL
IMMIGRATION BEFORE WE CAN
ADDRESS THESE BROADER ISSUES.
>> MARIA: LET ME MOVE ON TO THE
WHITE HOUSE AND THIS MEETING.
IT ANNOUNCED IT EXPECTS THE
MEETING WITH KIM JONG UN AND
PRESIDENT TRUMP WILL HAPPEN.
WHAT DO YOU ANTICIPATE FROM THE
TALKS?
HOW SIGNIFICANT IS THIS?
>> IT'S VERY SIGNIFICANT.
I'VE BEEN SAYING THAT I
I'VE BEEN SAYING THAT THOUGHT
THE TRUMP ADMINISTRATION WAS
DOING A GOOD JOB OF SETTING THE
TABLE FOR NEGOTIATIONS.
WHAT DO I MEAN BY THAT?
MAKING IT VERY CLEAR THAT NORTH
KOREA'S NUCLEAR PROGRAM AND
BALLISTIC MISSILE PROGRAM IS A
PROBLEM, MAKING IT CLEAR TO
CHINA THAT IT NEEDS TO BE
ADDRESSED, THE STATUS QUO IS NOT
ACCEPTABLE, MAKING IT CLEAR TO
NORTH KOREA THAT THIS IS A
PROBLEM AND NEEDS TO BE
ADDRESSED.
HE'S DONE THAT.
THE NORTH KOREANS ARE PAUSED
THEIR PROGRAM.
THEY SAY THERE WILL BE NO MORE
TESTING OF MISSILES OR NUCLEAR
WEAPONS PENDING THESE
CONVERSATIONS.
IT'S AN OPPORTUNITY NOW TO BEGIN
A PROCESS.
BUT I THINK ONE SHOULDN'T PUT
TOO MUCH WEIGHT ON THIS INITIAL
MEETING THAT THE PRESIDENT WILL
HAVE WITH KIM JONG UN.
I THINK IT WILL PROBABLY BE A
CONVERSATION, NOT A NEGOTIATION.
THEY'LL PROBABLY TALK ABOUT A
COUPLE PRINCIPLES AND I THINK
WHAT THE PRESIDENT WILL DO IS
MAKE CLEAR THAT THERE IS GOOD
THINGS THERE FOR NORTH KOREA IN
TERMS OF NORMALIZATION AND MAYBE
NEGOTIATING AN END TO THE KOREAN
WAR AND POTENTIALLY RELATIONS
WITH THE UNITED STATES, GOOD
THINGS AVAILABLE TO NORTH KOREA
BUT ONLY IF IT DENUCLEARIZES.
I THINK THAT WILL PROBABLY BE
THE THEME.
IF THE PRESIDENT CAN MAKE THAT
POINT, THEN IT'S A MEETING WORTH
HAVING.
>> MARIA: BUT ARE THEY REALLY
GOING TO DENUCLEARIZE.
>> THAT IS A LOT OF QUESTION.
A LOT OF PEOPLE THINK AT THIS
POINT THEY WON'T.
THEY'VE PUT SO MUCH EFFORT INTO
IT.
WHAT WE HAVE TO DO IS TEST THE
PROPOSITION.
>> MARIA: IT FEELS LIKE THE
SANCTIONS HAVE BEEN EFFECTIVE SO