Disability. 0 will. See. Its the worlds number one telecom gear supplier and number 2 smartphone vendor around the south koreas. While ways revenue grew almost 20 percent in 2018 so passing 100000000000. 00 for the 1st time but the Chinese Technology companies at the center of the trade war between china and the United States huawei is blacklisted by the white house while way is something thats very dangerous you look at what theyve done from a security standpoint from a military standpoint its a very dangerous. Area in doha why is huawei regarded as a Cyber Security threat by the United States and is it in independent company which is an arm of the Chinese Government we find out as well ways chief Security Officer in the United States and he purdy talks to aljazeera. And he pretty thank you so much for talking to aljazeera today you work for the number one telecoms provider in the world the number 2 smartphone provider in the world and yet in the research that i did for this interview i came across a podcast called whats so scary about huawei and i want to do ask you that or maybe i would rephrase it a little bit for you and i would say what is it that you think makes people quote unquote scared of huawei well i think right now we have a geo political battle between the u. S. And china the Largest Privately Owned Company in china and active in Telecommunications Market so 170 countries were kind of caught in the middle and a number of Government People have said its not really about the company its about the country china so i think the fact that were based in china raises some concerns and certainly the u. S. Government and some others rights of the common misconception is that. Huawei is in some way shape or form of the Chinese Government so how do you respond to people when they question that and im going to presume you get a lot but securely in the United States whats the response you give to them well its a couple things 1st of all the documentation that weve made available to experts to command to analyze the ownership of the company its pretty clear the records are i think are convincing and powerful evidence as a former prosecutor familiar with weighing evidence were privately owned company the next issue though is the u. S. Government is concerned that because were headquartered in china the Chinese Government can force us to do things that the so that becomes the 2nd question. Well the fact is no our founder mr rudd has indicated hed close the company before he would succumb to that kind of pressure we have not received that kind of pressure from any government anywhere in the world and we have measures in place and we can add additional measures in those places where its necessary to provide assurance and transparency that we are not subject to young to influence of the china government or any other government when you say one way is a privately owned company can you explain that a little because its not it is a little bit more of a technicality within it in the way that the shareholding is done to correct well we have 80 or 90000. 00 shareholders in china who have an equity interest in the company and they get the vote on the Governance Group that runs the company there is a structure of the Governance Group which is a Union Committee they call it which helps in the process of leading to the actual selection of the board of directors so some people are confused or concerned about this Union Committee well they would think a union in china and stating incorrectly that there is some connection between that committee and the china government or stating incorrectly that committee actually runs the company the company is run by the founders under the supervision of the board of directors frankly one of the reasons i was hired by what was 7 years ago is to help promote stronger Cyber SecurityPrivacy Protection the fact. Security and privacy is that increasingly important issue both here and around the world and so i have tried to promote the kinds of measures that are necessary to address Cyber Security risk and Privacy Protection in a way that provides assurance and transparency so theres a basis for knowing which products are worthy of trust the bad guys going to hack through everybodys products everybodys equipment so we as a Global Community need uniform standards and conformance programmes and independent product testing so we can have trust through verification Australia New Zealand the United States to a degree the u. K. And germany as well these are all countries who have in one way or another said no to what way and im talking about the 5 g. Networks wanting or not wanting in this case to have quite a way equipment involved in the 5 g. Rollout whenever it happens those are big countries theyre influential and they make a big noise about the sort of thing that and go to the point of banning you where are all these fields coming from been and how will you not managing to allay them is well 1st of all we are only banned in the United States in australia we lost a contract in new zealand we are not banned in new zealand and so you see around the world a. Multifaceted campaign by the u. S. Government to block wall way from participating Communication Networks the Us Government has been remarkably unsuccessful in doing that for example 2 weeks ago germany one of americas closest allies announced that theyve come up with a comprehensive program to address Cyber Security risks that will not be on wall way from the 5 g. Networks the European Union is working on a similar approach thats what we recommend is a comprehensive approach based on an internationally recognized standards with conformance programs thats how you address the risk particularly given that the sophisticated nation states can have through anybodies equipment so is that a model you can take to other countries and say look this is what were doing with germany this is how we can cooperate well thats a message weve been taking the Us Government started putting extreme pressure on wall way around the for. Of the year and we are seeing a remarkable pushback around the world about the idea that while it would be banned without a serious consideration for respect of geisha the kind of Risk Mitigation thats should apply to all all countries so we see a very good receptivity to the message of Cyber Security experts and the global Cyber SecurityAssurance Program that were implementing and the work we do with telecom and mobile operators around the world to help make sure that the shared responsibility in cyberspace is being taken seriously with transparency and providing adequate assurance lets go into the u. S. Spend a little bit more depth donald trump exact words. Something that is very dangerous look at what theyve done from a security standpoint from a military standpoint its very dangerous that is in many respects a typical broad generalization that President Trump likes to use but still its coming from the president and i think it speaks to the areas that are being put up in front of you well right now in the context of the u. S. China trade talks the kinds of conversations with the u. S. Government officials that we would have such as when i was in the government at the white house and department of Homeland Security years ago theyre not willing to talk to us. There is so that the context of the u. S. Trade talks is impacting everything and despite the strong message from the u. S. Government countries around the world are pushing back and saying we recognize Cyber Security privacy risk is important and were going to use a comprehensive program to address that risk and we think thats a very good thing so they just just feel that they the United States are just made up their mind already and hence dont want to talk to you well theres no question they arent talking to us and you know as i said in the normal context normal time who would have these conversations because take for example nokia and ericsson european based companies they have very deep connections to china so take nokia for example they have a a joint venture with shanghai bell which is owned by the Chinese Government dramatic deep research and Development Assembly and manufacturing in china there are allowed both companies are allowed to do business in United States because there are government monitored Risk Mitigation programs that theyre governed by we want to talk with the u. S. Government about a similar kind of approach because if it works for nokia and ericsson it should work for a while way youve become the bogeyman in in that respect to abuse my words carefully about the scary Chinese Company even though as youre pointing out and have got ties actually to a Chinese Governments company and you become almost a scapegoat well as i mentioned a number of Government Official said its not about the company its about the country the u. S. Is deeply concerned about china and the rise of china economically and militarily in the u. S. Like the world better when the u. S. Was so it alone as a powerhouse economically militarily so these issues about Market Access for example and tariffs those issues are very important and so we seem to be use being used as sort of a bargaining chip in a way as part of those china u. S. Trade talks and we dont want to be a bargaining chip because the china government doesnt speak for us and we dont want to speak through the Chinese Government so youve mentioned a trade war if i think that might have been in your very 1st down so id like to get your views on that sort of thing not. Necessarily just as a while way executive but as a business person watching this socalled trade war between the United States and china i say socalled because well wars they usually things which are won or lost and in this case i dont know if thats actually an accurate description of whats going on in fact both sides are possibly losing here well its like its like the race for 5 g. Its not a question of winners and losers so in terms of that the trade situation its really interesting when you look at why we situation in the u. S. It appears that was more important to the u. S. Than the u. S. Is to walk away given our global increase in revenues the 1st 3 quarters year over year over 24 percent whats at stake in the United States 130. 00 American Companies want to sell the 11000000000. 00 a year so over 40000. 00 in jobs so theyre putting a hold on the ability of American Companies to support 40000. 00 american jobs when those products have already cleared National Security concerns and we sell to the rural customers were not really making substantial money we want to support our suppliers we want to support our customers and so the kinds of concerns the u. S. Government has these can be addressed as they are with nokia and ericsson they can be addressed for a while way so the whole idea of the trade war in tariffs is do you think and certainly see commentary along these lines that its a fundamental misunderstanding of how tariffs actually work and that actually they can hurt your own people in this case the american tariffs hooting and hurting the American People will im im no expert and the terrorist arent directly impacting the ability of American Companies to sell the way but certainly this is part of the political dynamic that so bigger fish to fry than just walk away that hopefully that some of these issues between china and the u. S. Can be worked out because its going to affect american china can affect the whole world and we all need to make sure that we can have reasonable Economic Growth in the gulf and throughout the world something that did affect my weight directly was the issue with google and google products no longer being able to be installed and used on fines. I had people say that was when they went well this is actually something which does affect me you know id heard about these problems between china and the u. S. But if i cant access the Google Play Store on a while i phone and i cant use google parts on a i phone then that actually changes things how are you actually combating that are you making any headway then well google certainly an important supplier to us the android platform is is fundamentally open source we are going to try to find we are trying to find alternatives to that platform and the support we get from google would prefer to to work with google as the 2nd met number 2 manufacturer in the world behind Samsung Samsung and while we are major users of the enjoyed platform we think its a Good Platform we think it provides trust were not sure exactly how things are going to work out but weve sold weve shipped over 240000000. 00 smartphones this year about 26 percent over last year so while there may be an impact on our growth and revenues perhaps as much as a 10 1000000000. 00 reduction in growth were going to make more money and were going to do fine the question of whether the American Companies are going to do fine if they can no longer sell the waterway is another question how were you able to sell that many phones because i think most of the fanfare rightly or wrongly goes to a new apple phone launch or a new Samsung Phone which we didnt hear about the ones but its not seen almost on the same tier and yet as you say what was the number you just said 20240000000 this year are you doing that. We have very good products we have very good phones we have loyal customers and we have delivered on the innovation thats necessary the quality and the form factor of the artistic nature the phones the tremendous cameras these are things that resonate around the world i think our users will be able to download google apps directly onto the phones but we want a platform such as google where the apps are preloaded and that we can share with whoever the supplier is with the revenue so everybody benefits so you customers dont have a problem with weiwei clearly its governments that have a problem with you how do you reconcile the 2 things that you know i mean youre a huge success on one hand but battling very publicly on the other hand well but it shows that the pushback from countries around the world with the exceptions of the United States and australia demonstrate that its not all about the u. S. Wants something the u. S. Says this is the case the world saying we want to take stock ourselves you know were not looking for anybody to bully us we want to make sure that we get the best in technology and competition is critically important whether its in smartphones whether its i. T. Infrastructure whether its 5 g. I. O. T. Artificial intelligence so we believe that these kinds of things are resonating and we will find an alternative to the Google Android platform if we have to what we would rather stick with google him use the word bully there and said you dont want to be bullied fair enough but they have been incidents and bring up of course the founders daughter man one joe the c. F. O. Of your company being detained in canada for well that was technically violating sanctions against iran. I mean what sort of. Chil i guess does that seem through you and your colleagues thats why wait that you did thinking that you could be picked up at an International Airport like that well the that issue is certainly of great concern its very personal with with our founder and others that our chief Financial Officer were close to. But the fact is when you look at the larger issue about allegations or actually fear is that why we do bad things you look and you see the u. K. And germany both came out and said despite the best evidence the best shot the u. S. Government could give there was no evidence of significant wrongdoing by weiwei so theyre going to continue to consider doing business with us based on the actual technical merits and the Cyber Security measures in place its an update on what might happen to her i believe extradition is possibly happening in january of next year well as a long time lawyer now recovering lawyer one thing i do know is that the process for extradition and canada is is is she to judge very burdensome and very time consuming in the end we have confidence that the judicial systems in canada and if shes extradited to the Eastern District of new york we believe there will be fair conclusions on the Legal Proceedings and of course we hope theres a positive outcome the business youre in and in fact everything weve talked about and youve brought it up a lot its security its Online Security its everyday security that is your role it is your your your title chief Security Officer how do you balance the needs of customers and the security they want. All governments and avoiding through all the minefield that youve talked about and then also the fact that you are a business and youve obviously got your own Business Needs as well how are you finding the task of balancing all of that well its an exciting process and im just thrilled to death to be part of it every day i wake up looking forward to taking on the challenges its really about Risk Management thats the concept within cybersecurity identifying the threats the vulnerabilities in the systems and the consequences the potential impact if those are if the threats impact the vulnerabilities so its about managing the risk you cant nobody can eliminate all risk but we have to remember that the Telecom Operators have major responsibility were an equipment vendor people forget that the Telecom Operators have a critically Important Role theyve got their standards their best practices we in working with the Global Community have standards and best practices to address the risk so its about Risk Management we believe the world is moving toward a system of internationally recognized standards conformance programs and testing of the products of all equipment vendors so we can have a system of trust through verification we think thats the way that that citizens and governments can take advantage of the benefits of technology in a way where the risk is addressed im glad you used the word trust because that was going to be my next question and this is a broader question id like to ask you not necessarily about huawei itself but the fact that this is all about who we are its our data its our money its our personal details and it requires from us the consumers a lot of trust of you the creators of the of the technology the Telecom Companies there has to be a lot of trust these days and Peoples Trust gets shaken when you hear of the cambridge analytical scandals and things like Peoples Trust gets shot can. How do you again make sure that people trust you well thats why the following of the standards and best practices the specific requirements in individual countries or such as in europe with the European Union having the programs in place to provide as i said a open system that provides assurance and transparency so theres an objective basis theres an evidence basis to know whether the addressed the risk is being addressed whether its the telecom or mobile operators or the equipment vendors thats the message and thats why we work with governments all over the world to make sure that the requirements make sense to make sure there conformance programmes on the appropriate testing is in place in the end do you believe everything youve told me and what youve been telling other governments and you talk about the pushback from other governments that it can eventually get through to the United States i take your point that you dont make everything about the United States but its a big important market and they make a lot of noise about this topic as well do you feel that everything thats starting to work with other countries will eventually would well i certainly think at some point the United States is going to have the comprehensive program in place that they need that they dont have now to make sure they can address the risk from the Telecom Operators and the equipment vendors when the time comes i dont know how soon it will be will be allowed to compete but the fact is we are succeeding globally despite the fact that we make very little money from the United States it is the biggest market and we do want to participate and we hope that as a senior u. K. Intelligence official said there needs to be a clear eyed focus on National Security where there are objective requirements and conformance programs thats whats necessary for everybody to be able to have a level of comfort that they and a basis for trust so then how do you change the narrative i know youre not a p. R. Man youre a security man youre an executive at how do you change the narrative because that story which is pushed out by the United States as a state its loud and it overrides maybe i mean i was personally surprised to hear how many phones youre selling it gets the. Noise drones that well the voices of experts are coming out so the European Union just issued a major Risk Assessment for 55. 00 g. That goes through the kinds of analysis necessary to understand the risk to understand the threats and the vulnerabilities and create a system that the risk is managed and have appropriate standards for testing of the products and germany just came out with their program for a similar kind of approach so all im not saying trust wall im not saying trust china im saying dont trust anybody but lets put the measures in place so that there is an objective and transparent basis for trust and thats the kind of thing were working for and were seeing some pockets of places around the world that thats bearing fruit do you were with other Similar Companies to push the e. U. So youre trying to push in and an open Playing Field where everyone talks and all the information is out there you want to make it not a while way issue you get cooperation absolutely and its not led by us that said thats the beauty of it so for example the the 5 g. Standards that are going to create a platform thats going to be more secure than 3 g. And 4 g. So the 3 g. B. Piece standards its a coalition of 7 organizations and scores of companies and governments participate in creating those standards after doing threat modeling the other that the mobile operators and you could have vendors are working on is called the any s. A. s the Network Equipment security assurance b. S. I. In germany has studied that scheme the European Union is considering that scheme and thats a scheme to provide standards in the mobile industry and testing and certification so in that sense its not about huawei getting traction its moving toward a more secure cyber space that everyones going to benefit from and were moving in that direction you know were just throwing around the term 5 g. I think there might be viewers who dont necessarily understand what a step up it is if youre talking about 3 g. To 4 g. To 5 g. Its not just steps like that is it its more like that right and significantly the community is working together to make sure that more secure than 4 g. Developing these standards and conformance programs but 5 g. Is going to enable trillions of dollars in increases in Gross Domestic Product around the world as it not only does speed which people focus on not only about throughput the amount of data that connects but its also about latency the delay in the signal getting through so thats whats going to make Driverless Cars much safer thats whats going to make remote surgery the kind of thing that you can rely on and 3rd is multiple connections and lower power consumption devices that the carbon footprints going to be significantly reduced by by the the energy use for the base stations so that combination is going to help digitise vertical industries and its going to lead to tremendous job growth so 5 g. And a i that comes along as well will Service Platform for serving up humanity and creating additional jobs. So thats why people are so worried about it bring it back to way itself this is why people because there is so much potential there is so much in the future that is clearly going to rely on 5 g. And if they dont trust you and your components going to be used or not be used thats where the problem is coming from isnt well so for example we have an offering for 5 g. That is a 3rd Party Application to monitor the various security gate was in security mechanisms and to make sure that conformance can be demonstrated with assurance so a 3rd party provides the basis for trust in that case and of course in cooperation with Telecom Operators that kind of measure is what we need more of and were working toward that now you may have noticed in this interview ive got my pad and apple product and youll see i was recently photographed with an i pad as well i wonder what that says is that saying that executives want to know their competition that they respect the competition that i think the competition actually does a better job than them do you think now it means the company doesnt force even the family of a founder to have only one way of quitman so that the idea that we use bring your own device i can use a wall a phone i can use an apple phone i can use a Samsung Phone what do you use i use a wife on the p 30 pro which is probably the best phone on the planet actually but you would say that but then that was part of a partnership right you punt it up with leica which is known as you know that very strong camera brand and partnership for a while which is what its all about us not getting all the market share so if we get to compete in the u. S. We will be part of the Radio Access Network in the u. K. There are multiple providers to help provide resilience and to manage risk and weve got 26. 00 joint Innovation Centers around the world its about partnership its going to help the Global Community prosper i pad its considered an Industry Standard i think for tablets its become a bi would forward do you foresee a day when its a product when they seen at the same tier as as an i pad or an i phone or something some of the like that. And on the silly concern about being number one on a particular type of voice or or different kind of function we want to compete globally we want to partner globally we want to grow our revenues because as an employer while we believe the 2 things fundamentally we want to be part of something very special and we are and we want to really provide well for our families and were able to do that with wallet. So youre not concerned about the competition as such even though youve proven youre up there with them if you selling that many smartphones every year what do you want to do next then well i think were underestimating the importance of competition globally the importance of competition to drive innovation to drive greater security enhancements to provide more information on which to determine whether a product is worthy is trust why do you think the china government lets nokia and ericsson compete and win contracts in 5 g. In china against Chinese Company they obviously must believe and ive never spoken to them they obviously must believe that competition is critically important to help keep the prices down help keep the innovation up and they help provide additional security and resilience in the products and the chief Security Officer while usa thank you so much for talking to aljazeera we do appreciate it youre welcome. Counting the cost of health care special u. S. 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