Huawei Ban Explained

so I recently asked the following question on Twitter what is the first thing that comes to your mind when you think about Huawei and I got a lot of different response some people said they've never heard of it before some said it's a great phone some said espionage some said it's a terrible phone a few people thought it was a vacation spotlight they thought it was Hawaii but the real question is why is President Donald Trump signing an executive order calling Huawei a threat to national security why what's the big deal about them why is the director of NSA FBI CIA saying hey American users do not touch the device if it's Huawei don't even get close to it why are so many people around the world from the intelligence community worried about wow wait what is it is there something you and I don't know about it's that the tariffs again is it a trade war is it maybe a cyber war maybe somebody's spying on you and I what is it we're gonna get into that today before I get into it you may be asking is a pad why do I need to know about Huawei a few different reasons number one this could cause a market correction of 10 20 30 percent if it doesn't work out number two its cybersecurity privacy it's a big part of this so you kind of want to know what's going on here and last but not least conversation start in the world of business people gonna ask about huawei you not have an opinion about it having said that let's get into it first I'm going to talk about nine reasons why they were banned then we're gonna talk about their numbers then we're going to talk about 5g then timeline of what took place with Huawei from 1987 to today so having said that let's get into nine reasons number one espionage why espionage is China using Huawei to spy on US and other countries is that really what it is number two competition is this u.s. is way of protecting their golden child of Apple which is cost Tim Cook and Donald Trump to become texting terms today they're best friends because Tim Cook just met with Donald Trump on June 13th on Thursday and they're having conversations why because Apple's the golden child company a Steve Jobs Steve Wozniak everybody uses their phones I would much rather have Apple win then why we win could it be Iran violating the US sanctions because of what happened in China with the CFO we'll talk about that later on is that 5g is it first - is it who gets 5g first and how much is that worth - the GDP whichever country gets 5g first is it power worldwide domination it's its cyber war insurance policy because what if a cyber war happens this is our way of the CIA the NSA and the FBI preventing us of somebody else a major empire that went from being tapped into not being taught the second place and wants to be the most dominant Empire worldwide spying on America this is our way of saying hey you cannot come and find out what we're doing here stealing trade secrets similar going back to made in China 2025 plan which is any company that wants to do business in China they have to kind of give their trade secrets is this kind of part of that or last but not least is a terrorist what is it so before we get into some of these topics let's look at numbers here's numbers for you worldwide smartphone markets okay 2018 Samsung was number one worldwide they saw 292 million phones okay that's 20.8% of marketplace 2018 Apple sold two hundred and eight point eight million which is roughly fifteen percent of market share while we saw two hundred six million phones which is fourteen point seven percent Pat what's the big deal here here's what's the big deal two hundred and six million phones and many people watching this you've never heard a while way before maybe you have maybe you haven't but huawei's third place yes but here's what's important look at 2017 where they were at Samsung so three hundred and seventeen point seven million they were twenty one point seven percent of market share Apple so two hundred fifteen point eight million they were fourteen point seven Huawei was 154 million they were ten point five percent which means Samsung is down eight percent Apple is down three point two percent Huawei is up thirty three point six percent that is such a big number that's plus fifty million phones in one year when your competition is down three point two percent any competitions down eight percent when I looked at this I said okay two hundred six million phones they sold their up 50 million the US government bans any US companies of doing business with Huawei but what is their risk are they so much in u.s. that this gives them a hard time to do business or are they more in China so let's look at the numbers you have total smartphone sold in China 2018 here's what it looks like 2018 while we sold 105 million phones okay which made them 26.4% of all China market share an apple so thirty-six point three million they're nine percent and the year before Apple so forty-one million and the year before while we sold ninety point nine million look at this number you know this app was down 11% and Huawei is up about fifteen sixteen percent so so so let's take a look at this so if they sold a hundred and five million phones Huawei in China alone and total it's 206 what percentage is that fifty one percent which means fifty-one percent of their phone sales is strictly in China so I know the u.s. banned US companies of doing business with Huawei but 51% is in business they're doing is in China and 49 percent is outside of China very small in America if any is in America Europe other countries right now watch Apple here at Apple's two hundred and eight million phones 36 million was sold in China which is 17 percent so here's the scary thing US government banned US companies from doing business with Huawei what would happen if China said listen this whole tariff thing is getting a little control we are going to ban Chinese companies from doing business with Apple what would that do to them because iPhone users they are actively 900 million iPhone users worldwide according to Apple added a 900 million active 300 million is coming out of China let me say that one more time at a 900 million active iPhone users 300 million is coming from China that's 33% that's gonna be a very big hit if China decided to turn it around on them this is one of the reasons why Tim Cook and Trump are meeting together so regularly because if all of a sudden China makes a decision like that that's like a tariff on steroids against Apple and Apple is the biggest company they tanked the market tank so it's very fickle right now if this doesn't take place here and they figure out a resolution but let me continue these are the numbers we're looking at here while we in sales so in 2010 while we sold three million phones then they sold twenty billion next year 30 to 50 to 75 108 139 153 and in 2018 obviously they saw 206 million phones their total revenues in 2018 was 108 point five billion dollars that's up 21% from 2017 and if you look at the total numbers of phone sold it's 780 million phones sold during that eight-year run that they went out so now you look at this thing safe huh it's pretty impressive I mean this is good stuff but what did they do differently I mean isn't it just cell phones watch the amount of money they put into R&D research and development Intel in 2018 put thirteen point five billion in R&D Apple put fourteen point to Apple monstrosity put fourteen point to Microsoft trillion dollar company fourteen point seven huawei 108 billion revenues put fifteen point four billion and this is China labor we're talking about this is not us engineer cost this is China labor we're talking on let me put that in perspective for you added there one hundred and eighty eight thousand employees that they have 75 thousand of their employees strictly focused on rnd again 75 out of 188 is strictly R&D so after while we have Samsung sixteen point seven then alphabet 21 then Amazon at the top of 20 point eight billion into R&D so you look at all this stuff you know okay I mean I get it good products that they're constantly researching they're trying to get better they can't really do business in us right now so what is I'm still not getting a pad what is the big deal with these guys what is the worry here's what it is February of 2019 this is what President Trump tweeted I want 5g and even 6g technology in the United States as soon as possible it is far more powerful faster and smarter than the current standard American companies must step up their efforts or get left behind there is no reason that we should be lagging behind on something that is so obviously the future I want the United States to win through competition not by blocking out currently more advanced technologies we must always be the leader in everything we do especially when it comes to the very exciting world of technology let me read one sentence of this tweet again go back to I want the United States to win through competition not by blocking out currently more advanced technologies what does that mean I mean isn't it banning Huawei actually banning a better technology that's coming into u.s. is that a good thing or bad thing why are we doing that but he wants 5g and 6g and what's the big deal about 5g what is five G what wand you what was 2g here's what's the difference 1g was the brick phones back in the days that's what one she was to G was the old Nokia phones and a few other phones that were 2g 3G this is where the speed comes in if you wanted to download a two-hour movie on a 3G phone it would take you 26 hours if you wanted to download a two hour movie on a 4G phones it would take you six minutes but if you want to download a two hour movie on a 5g phone it'll take you three point six seconds boom you have the movie sitting there iPad 5g I want to watch this movie one two three boom you have the movie go watch it that's 5g and that's scary and by the way 5g is not about phones only five g's about a lot of different technologies gonna be using for surveillance cars GPS mapping technology internet faster internet also many different things they're gonna be using with this but again what's the big deal about this 5g here's the big deal about 5g when the race was taking place for 4G us got it and if I said oh my gosh u.s. won the race for 4G you know how much it made us one hundred billion dollars to add it to the GDP okay into the GDP let me tell you what the race for 5g is whoever wins it whoever wins the race to 5g it is three million jobs added to added to US economy and it's 500 billion dollars added to the top line revenue GDP that's the race of 5g so why everybody's after but there's a big problem right now here's a problem the race for 5g China is already testing their 5g technology and they are projecting that they will be done by 2020 there'll be the first country to be done with 5g 2020 okay everybody else u.s. Japan South Korea EU everybody else is projected to finish by 2025 this is a scary thought but if they finish by 2025 that's a long time for that to be taking place that is an advantage so if they win the contract for 5g they can go out and give it to 57 different countries and say we're not giving it to us but we're giving it to these other countries so China eventually can catch up by 2025 and pass us and be the dominant and power worldwide you don't think there's thinking about that that's a message they made when the Olympics was in China and they did the most amazing opening show they want to compete they want America to know we can compete with you we're not worried about you this is very very competitive right now right and by the way for some of you guys I use AT&T in US and you may say but my phone says 5ge that's AT&T just changing the name of LTE to 5ge it's a fraud it's not really a 5ge it's really a 4G but they just change the name to 5g for people to say I got a 5g phone you can go research and look it up for yourself which is brilliant by the way but it's not really brilliant because it's not 5g so now this is all the stuff we're looking at the 5g issue now let's look at the timeline let's look at the timeline how this whole thing took place and how we got here while we got started back in 1987 by the founder Ren Schenk PHA which by the way he's to be part of the Chinese military and he openly talks about the fact that he supports the Communist Party very open about it so in December of 2001 Indian intelligence accused Huawei of aiding Taliban we're talking 2001 that's 18 years ago they're already having issues with an intelligence community of India then you go to 2003 they decide to start selling phones okay fine 2003 Cisco decides to sue away for unlawfully copying intellectual property this is something they've been accused of many times but the first one goes back to 2003 then in October of 2007 Bush administration warned on huawei 3.com deal they didn't want this deal to be taking place so eventually after a couple years I think three comments up doing the deal with you will Packard but not Huawei okay this next one's a little bit weird and interesting at the same time October of 2010 former UK intelligence boss Andrew Hopkins joins Huawei we're talking former UK intelligence boss not just anybody this guy's got 40 years plus experience in intelligence worldwide you want to go work for Huawei why is why we're trying to recruit you why are you trying to get into the UK in formation what's the purpose beyond is it just because you got a fancy degree or maybe you got access to certain information that can help Huawei huh makes you think doughnut March 2012 Huawei banned from Australian National Broadband Network another one September of 2012 David camera brokers a 1.2 billion pound deal with Huawei I don't want to read too much into it maybe they're just doing something because they want the technology to be stronger and you came that could be it could be as simple as that but 1.2 billion UK after the head of intelligence it a bit weird there okay July of 2013 former CIA head Michael Hayden slams Huawei publicly slams Huawei saying this is not a company anybody should trust March 2017 WikiLeaks vault 7 release feature Huawei backdoors this is when people started seeing some things with CIA and wait a minute what is really going on with Huawei I mean it was a very big red flag maybe all these accusations that people are making is accurate February 2018 director of CIA NSA and FBI warned US citizens against using any Huawei products ok so now this is when it starts getting interesting April 2018 America alleges possible Iran sanctions violations from Huawei the guy I think something's going on here this is when you know when US has a sanction against Iran diamonds you can you cannot do business with Iran and do business with us but they were trying to kind of go around and figure out a different creative way of a subsidiary company to use which we'll get to here in a minute as well May 2018 pentagon bans Huawei ZTE devices from military base ok so now this is when things start getting ugly December of 2018 the CFO of Huawei mank wengie which is also the daughter of Wren the founder of Huawei gets arrested in Cameron why does she get arrested in Canada well because we're longer some US was trying to get her and she was evading us and finally u.s. calls on Canada see you got arrest her and she got arrested why does she get arrested because they were using potentially allegedly they were using a company called sky comm which is a subsidiary they say it's not but it's a subsidiary of Huawei that we're using sky come to do business with Iran so this causes the chairman of Huawei in January 2019 to say the following no market can keep us away is he insinuating that the 5g is going to be so strong that even US has to figure out a way to do business with us I don't know but he said no market can keep us away and may 15 2009 teen Trump signs the executive order banning any US company of doing business with Huawei and that's what brings us to where we are today so look you just had an information overload you've been given so much if and inform us you're sending you're saying holy moly I had no idea this was taking place with Huawei but let's talk about the spy part you know spying espionage you may say what Pat you mean to tell me people are spying on us you got simple questions to ask yourself would you rather have China spy on you or would you rather have us spy on you what do you mean if you use Huawei phones in u.s. maybe China has the ability to spy on you are you okay with China spying on you or if you use an Apple phone are you okay with Apple being able to spy on if somebody says there's no way in the world that can do that isn't that illegal let's just say it is illegal there's a reason why people put band-aids on their cameras of their computers you're not comfortable someone's watching me right or are we more receptive to being spied on today or is this a new thing it's been around for a while if you try to figure that part out you're gonna start watching conspiracy theory movies are gonna drive yourself nuts and all of a sudden you know start having nightmares that and I not sleeping sweating all night long right here's another question of our spine would you rather have a private corporation spy on you or government spy on you if a private corporation spies on you they do it all the time on Facebook how do they do it what is your buying patterns they're simply spying on you to get more money out of you that's what corporations do right but if a government spies on you what did they spy on you for your next moves controlling you seeing what you're doing I mean these smart phones that we have these fitbit's we put on isn't like a you know device to kind of track where we're going so the point I'm trying to make you is the following spying if you go to the rabbit hole of spying you're gonna go so into deep you're gonna get more scared about what could happen to you that's the spying part okay but let me talk to you about what I really thinks taking place and what I think the president the administration Tim Cook and these companies need to be focused on today and that is 5g because this is the biggest thing this 5g is the real issue let me explain why China gets 5g in 2020 and say they give it to 57 different countries and not us and we don't get it five years later and what if they say we don't want to do anything forget about it and all of a sudden other countries in Europe South America start contacting them to do business with Huawei because they got 5g and they broker deals like the Prime Minister David Cameron Cameron brokered a deal of 1.2 billion pounds with Huawei what if other countries start doing this what if all of a sudden everybody has 5g everybody has incredible technology and US has last five years what if they go to every one of these guys EU South Korea Japan and they do it with them but not with us so now watch what happens when you're raising money and you deal with investors here's what takes place you the entrepreneur the owner the shareholder the investor comes in you have 20 different markers to negotiate with I want this much money no problem we wants just much equity no I want fewer equity to give it to you no I want this much no ok I'll give you this equity less but I want to get dividends on the 20 million that I gave you it has too much difference because it adds up to this yes it does ok I want 3 board seats no way I'm giving you 3 but I'm gonna give it to so you go through the whole thing and you the investor or you the entrepreneur have to decide which one you want to give up u.s. is not in a power position with everything I know it may seem like it but they're not very simple and this this is the scariest part with the 5g so President Trump his administration with all the advisors Tim Cook they all have to sit down and figure out what they're willing to give up and what they're not willing to give up because if they just go and say I want all of it it may crack 2030 percent okay it may crack because they're gonna ask for something because they have something that US doesn't have and that's five geniune in a Europe that's massive so the tariffs you want to put 25 percent on this 25 percent on this I put 25 percent our soybeans you put two and we can go back and forth all we want but we got to sit in a room and lay all these things out and US has got to say to them here's what we're doing I'll cut the tariffs but you got to give me a hundred percent of the 5g license to us 2021 you get it we get it as well there's no way normal I'm giving you I wanted right off the bat when you get it I'm not doing it okay give it to me six months after you get it but you cannot do business with anybody else but you can get a head start in China just not anybody else we're not doing it that's that's the negotiation of getting 5g to five years because we don't have any u.s. quoc we're not ahead there's a lot of people that are a lot of companies that are doing it we're not ahead they got to figure out a way to get this technology that's how big it is it's five hundred billion dollars five hundred billion dollars to the GDP three million jobs to the GDP the battle is gonna be a big battle it's gonna be interesting who wins this battle but it's all about leverage and they have the leverage on 5g and they have the leverage on having a population of 1.5 billion people and us has got 330 million and they have a leverage of their smartphone it's not as expensive as the iPhone is we're Tim Cook is saying I'm gonna make the iPhone cheaper in China so I can compete with them there's a lot of leverage and I hope all the brains can come together and figure this part out because me I'm just an entrepreneur giving this information to you so having said that if you watch this video you want to go a little bit more into it and find out more about the US China trade where I made a video titled us-china trade what you're gonna enjoy watching this video it's gonna get very detailed into the tariffs if you haven't watched it click on this if anything we talked about today especially timeline you want to go more into it we're gonna put the links below and if you haven't subscribed to the channel please click on the subscribe button to sub to value tainment thanks for watching everybody love you

Channel: Valuetainment

Views: 518,662

Rating: 4.7775497 out of 5

Keywords: Entrepreneur, Entrepreneurs, Entrepreneurship, Entrepreneur Motivation, Entrepreneur Advice, Startup Entrepreneurs, valuetainment, patrick bet david

Id: iojQ153cai8

Length: 21min 13sec (1273 seconds)

Published: Tue Jun 25 2019