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CARL AZUZ: Hi, I'm Carl Azuz,
and welcome to "CNN 10."

After today's broadcast, we
have two weeks left in our 2019

winter-spring season.
After that, we'll be off the
air until Monday, August 12.

First story.
An executive order from
US President Donald Trump

that will stop
American companies

from using certain
telecommunications equipment.

The president says
anything that could

be a risk to US national
security is off limits.

There's this company
in China named Huawei.

It's the largest provider of
telecom equipment in the world.

The US government is concerned
that the Chinese government

could use Huawei's equipment
to spy on other countries.

And though the White House did
not say it was specifically

targeting China and Huawei
with the new executive order,

the US Commerce Department
later added Huawei

to the list of
companies that could be

undermining American interests.
So there's no doubt
that Huawei is covered

by this executive order.
Dozens of small and rural
wireless carriers in the US

currently use Huawei
equipment, so they're

trying to find out how this
will affect them going forward.

The Chinese company says the
order will put an obstacle

in the rollout of 5G wireless
technology in America

and that it would hurt American
businesses and consumers.

But trade experts say this could
hurt China, too, because Huawei

gets a lot of the parts it
uses from American companies

like Qualcomm and Intel, and
this order could make it harder

for Huawei to get those parts.
So the impact on
5G could be felt

on both sides of the Pacific.
This is happening as the US and
China face off in an escalating

trade dispute, and
it's seen as a way

for the American government to
pressure the Chinese government

over that.
The White House says
the executive order

is part of President
Trump's commitment

to keep American networks safe.
But China says the
US actions are wrong.

MATT RIVERS: A counterattack
from Chinese tech giant Huawei.

Its billionaire founder
and CEO, Ren Zhengfei,

sat down with CNN
for a rare interview

with a clear message--
Huawei is not the national
security threat the Trump

administration says it is.

tactics are wrong.

If he intimidates a country
today, threatens a company

tomorrow, or wantonly
arrests someone,

then no one would
dare invest in the US.

MATT RIVERS: Huawei, China's
largest telecom company,

is facing an all-out assault
by the US and in Europe.

Federal prosecutors
have accused it

of stealing trade
secrets from T-Mobile

and violating sanctions
on Iran, which all led

to the arrest of Ren's daughter,
Huawei CFO Meng Wanzhou,

in Canada.
But chief among US
concerns, that Beijing

could use Huawei to harm US
national and economic security.

The prosperity that

drives our economic security
is inherently linked

to our national security.
And the immense influence that
the Chinese government holds

over Chinese
corporations like Huawei

represents a threat to both.
says they've obtained emails

revealing that Huawei offered
bonuses to employees based

on the value of information
they stole from other companies

around the world.
The US has banned
Huawei products

from use in federal
agencies and 5G networks.

Ren says that's

Huawei is suing the US
government over the ban.

But if the United States clearly
feels that Huawei products are

a national security
threat, does the United

States not have a
legitimate right

to protect its own interests?

have to have evidence.

Everybody in the world is
talking about cybersecurity,

and they are
singling out Huawei.

What about Ericsson?
What about Cisco?
Don't they have
cybersecurity issues?

Why is Huawei being singled out?
There is no Huawei equipment
in the US networks.

Has that made the US
networks totally safe?

If not, how can they tell other
countries that your networks

would be safe without Huawei?
MATT RIVERS: To date, the US
hasn't produced public evidence

of Huawei spying
on China's behalf,

but says it could easily happen.
If Beijing demanded access
to Huawei equipment,

the US says the company
couldn't say no.

Ren says, not true.

shut down the company.

In our 30-year history, we have
never received such requests.

If there are future requests,
I'm making it clear today,

I'll firmly reject them.
hasn't stopped the US

from lobbying governments to
shun Huawei, a huge player

in building up 5G, the next
generation of mobile networks

The US told Germany that if
it uses Huawei 5G equipment,

it would limit intelligence
sharing between the countries.

CARL AZUZ: 10-second trivia.
Which of these US cities
was founded in 1776?

Dover, Delaware;
Philadelphia, Pennsylvania;

New Orleans, Louisiana; or
San Francisco, California?

The mission of San
Francisco of Assisi

was founded on June 29, 1776,
shortly before the Declaration

of Independence was made.
Despite being one of the most
technologically savvy cities

in America, San
Francisco is banning

its government from using
facial recognition technology.

It's the first city
in the US to do that.

Facial recognition systems are
becoming more and more popular.

They're used at police
departments, concert venues,

homes, stores, and schools.
They're even used
on some smartphones.

The technology allows computers
to compare facial features

caught on camera with the
features of faces stored

in a database, and
those may include mug

shots of suspects or criminals.
People who support the
use of this technology

say it can help prevent crime
and make communities safer.

People who oppose it say
it's not always accurate

and that it could be
abused to track people

when they're out in public.
San Francisco's police
department doesn't currently

use facial recognition

but the new rule will
forbid that in the future.

And as far as the surveillance
technology that's already

in place goes, police will have
to get permission from the city

before they can use that.
There are exceptions
to the new law.

The technology will
be allowed at San

Francisco International
Airport and at the Port

of San Francisco.
And businesses and homes
that have cameras installed

will still be
allowed to use those.

In fact, police could
still use information

from these private cameras
in a criminal investigation.

For 10 out of 10
today, a bar has

been raised in the art world.
- You have it, sir. $80 million.
80, with a zero,

and it works out to
more than $91 million

once you add the fees.
That is the most money that
a living artist's work has

ever sold for at an auction.
And this is the work--
a stainless-steel bunny

inspired by a balloon toy.
There were actually
a few of these made.

This was the last one
that was held privately.

The others are in museums.
The name of Jeff
Koons' sculpture--

(RAPPING) And that's
not bunny money,

it's a sum with more merit.
And you'd think that for that
fee, it would be 24 karat.

It doesn't eat.
It doesn't hop.
Its ears ain't soft
and they ain't floppy.

And it has no cotton tail or
coat or triplet sister Mopsy.

Even certain multibillionaires
would hop away

and never drop the
price of a new island

on a metal hasenpfeffer.
But if you dare care for a
hare enough to spend like that,

must be magic pulling money
like a rabbit from a hat.

I'm Carl Azuz for "CNN 10,"
and Fridays are awesome.



[CNN 10] May 17, 2019

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