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Andy Purdy

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2019-08-26
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2019-08-26
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  1. Exactly. One time we had the chairman of the FCC and we showed that the US was below Lithuania or some country. It was some country we should not have been lower than Namibia. I don't know. And the price was number one. It was fascinating. And we were saying, this is just, why do we have the most lagging? This is broadband in the days of broadband access. And it was really interesting to see what held it back at the time. It was something else, it wasn't security concerns. Thank you so much for coming on. I really appreciate it. It's a really interesting issue. I think it's gotten sort of sucked up into nine different issues. But what's critically important is, as you said, is testing the resilience of these systems and in terms of protecting risk analysis around them because that's what the most important part is to do this before you sort of get into these more broad debates about country versus country. But I appreciate it. Thank you so much, Anne, for coming on the show.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  2. It's like we don't have high speed trains. We don't know what we're missing. We don't have decent 5G or good 5G. We're not going to know what we're missing.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  3. It's like there's going to be something they call 5G. It's just not going to give the full performance and full capabilities. And so the job-creating aspects of it won't be...

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  4. Well, I think it will be deployed. I mean, it's not going to get out ahead of its rails. I think it will be deployed. It's kind of like the Comedy Central bit where Noah was talking about the AT&T phone that had 5GE on it.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  5. When these trade talks, I think most people feel the Huawei thing will go away when the trade talks end. When do you imagine Because the point is 5G rolling out properly to citizens to create entrepreneurial opportunities, create businesses, all kinds of things that fall off so many businesses do fall off this technology What do you think is at risk if it doesn't get deployed properly?

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  6. So it's a combination of the traditional kinds of perimeter defenses, but it's also things like encryption and making sure that you control the repository of whatever the data is. So you control it in motion and at rest both before it's transmitted and after it's transmitted. And then the question of, well, how do you bring it all together? So it's really a multi-layered kind of an aspect. And we've got to try to make sure that the people who make the decisions that we're going to do electronic voting don't just say, oh, I want to be able to say we're doing electronic voting so we'll get out ahead of our security measures because it's all about risk and we can manage risk effectively. And the question is, you need independent people. It's like financial audits. There's a reason that auditors come in. We need to have independent experts come in to evaluate the things that are most critical and elections are certainly one of them.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  7. Well, I think there's an awful lot of effort going into it. I know DHS, I know the multi-state ISAC, I know the state legislatures are putting a lot of time into it. And if you think about it in terms of, okay, you've got a voting machine starting from the smallest thing. Well, we can do a lot to secure a voting machine.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  8. Well, then, finishing up, how do you assess? You know, obviously, the biggest thing on people's minds is election security, whether it's the manipulation of Facebook or whether it's voting machines or all kinds of, a range of security issues around that. And it's a global issue going forward. How do you imagine that threat is seen? Because these legislations is not passing. A lot of this legislation is being held up in the Senate due to protiship. That's like a perfect example of something that's critically important at the same time hasn't been addressed correctly.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  9. The data that is most important on which our monetary system runs, we've got to make sure that that is inviolate, that we can get access to it, and it's going to be 100% accurate all the time. So I think the accuracy of data on which our systems rely for the functioning of what's most important to us in the world is the way to go. And I think DHS is doing the right thing by saying, okay, let's do a risk assessment of 5G, but let's identify those other things that are most important to us as a society and then make sure we put the adequate protections in place.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  10. That's a very difficult issue. One of the most important areas, of course, is our communication networks. But we have such diversity of suppliers in different parts of the country. It's like our power grid. Partly because of the flaws of it. You have segmented parts of the power grid, and our telecom operators are segmenting the networks. So if bad things happen, it only happens to a very small part. So I'd have to think about those things where the data, because we have ransomware attacks, which are a big problem. And so that...

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  11. And if you had to pick the three most important security issues, national security or otherwise across the globe, what do you imagine them to be? Aside from the fact that you work for a Chinese company, what would that, from your perspective be?

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  12. Well, and I think everybody should be suspect. I mean, that's the bottom line. And we have to remember, and we have to hold, I don't know if the Federal Communications Commission Chairman Pai, he suggested there be greater regulation of our telecom operators. I don't know about that. I think we've got really good telecom operators, and I trust them a lot more than I trust the government to say you should do this and that. But when we talk about fear from China or wherever, the telecom operators have an absolutely critical role. And so we need to make sure there are programs to make sure they are conforming to the kinds of measures that are best practiced. You have to have measures to make sure independent verification of all the products, to make sure bad guys haven't hacked into anybody's products. That's the kind of thing when you have an objective basis for trust that's going to help make us safer not only in our mind,

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  13. And when you think about how the company has been caught in it, if you had to, you know, I think most you're going to have a group of people that are going to think, no matter what, this is a company that is under the thumb of the Chinese government and the risks are there because they could at any time be turned on. And I think it sounds really crazy, but I call it the national freak out over FaceApp. Like Putin's got my pictures as an old person. It's the conceptual idea that in this age of violation of privacy and control of data and the idea that companies can have a hegemony over tech in a way that's very dangerous, it's like having the best nuclear weapons, I guess, that you're not going to ever not have Chinese, especially Chinese companies, not be suspect no matter what.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  14. Well, and hopefully in the long term, I think Huawei really takes a long-term view of its business and opportunities, you know, Huawei's going to be around.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  15. Well, what will happen is it looks like they will have a diversity of suppliers, probably Nokia Erickson and... Maybe Samsung might be the third in terms of the radio access networks. And what it will mean is it won't be as good or as efficient or as cost effective. The prices will be higher. And they'll move forward with something that they call 5G, and it will just take longer to get the full benefits of it.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  16. Absolutely. Well, I think, for example, I think Chancellor Merkel, the head of Germany, I think she remembers the fact that the U.S. was monitoring her phone calls. I think they sometimes feel the U.S. comes across as a bully.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  17. No, they don't It's also a long term, it's a mentality of long term, as Scott Callahoe do my pivot podcast with was talking about this idea of the Chinese government. You know, they'll move whole towns. They have a, you know, and if one American farmer gets a hangnail, it's like massive coverage and the political implications are high. And it's harder to move that way, to make industrial policy, essentially industrial policy, and make it stick. Absolutely. At the same time, in some of these areas, like 5G and whatever's coming next, you do need to have a coordinated thing which hasn't happened from our government in a long time. It is on some level. And I actually do think that Edward Stone thing did impact it, even though you can feel it from Silicon Valley people. They talk about it all the time.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  18. Some things where we really need the government to spend, and we've got to put up, we've got to put the money up. But the private sector needs to lead and say, how do we work together? You look back and say, why don't we have high-speed trains in America? Are we about to make a bigger mistake with 5G? We've got to have the leaders come together and say, let's develop a strategy because the Chinese don't have that problem. No, they don't. Although they run headlong into things, I'm not sure the Belt and Road Initiative is really working out for them. And, you know, they throw a lot of money away, but it's not always buying what they need.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  19. We're going to put in place measures to address the risk, and we'll apply the measures to all vendors. I think what you're talking about needs to be led by the private companies, because you're right. There are things like in the early days of the internet, there are probably some technologies that came out of the space race and other things. So, for example, in 2017, Samsung and Intel and the Securities Industry Association created a paper to recommend how the government and private sector should work together on exactly what we're talking about. How do we promote the creation of jobs in the various industries and the most likely places you can create jobs. So it's not the government picking winners and losers, but it's creating a level playing field, creating opportunities, taking regulations away. But smart people have to sit down and say, what do we think? and kick around ideas of what's most important. And sometimes there may have to be some things where the government spends are R&D, but it's a very few and far between things that they need to spend. But in the tragedy of the commons, if there are

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  20. And frankly, when you look at how our European allies, and we don't know how it's going to come out in the end, are pushing back on the U.S. pressure to block Huawei from 5G. They've basically saying, particularly the UK and Germany, you didn't give us any evidence that Huawei did anything wrong. So we're going to put in.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  21. That's what we need to promote. What is preventing that industrial policy? We had that for so many years. I mean, there was so much, I mean, one of the myths about Silicon Valley and a myth about a lot of things is that these things just happened by the sweat of their brows. They're just innovative and then it just happens. I'm getting paid this enormous amount of money, but it's because of my work. When in fact it's about policies and everything else that advantage certain people and don't advantage others, there's sort of mythology on Silicon Valley is that they did it all by themselves when in fact it was a government program. It was enabled by the government. I mean, the internet's excellent proof the government does sometimes work. How do you get to that idea that the government should work very closely with technology companies without seeming like you're doing what people think is happening in China where it's too close a relationship, which I think was broken by the Snowden revelations in many ways. And it's still healing.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  22. Well, I don't think it has to be a zero-sum game. And in fact, as we try to learn lessons from the current situation we're in, some people...

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  23. I like a world where 30% of all Huawei components come from American companies. I like a world where folks buy the best stuff everywhere in the world. We have comprehensive programs to address risk because that's fundamental. But we've got to be working together to have the competition for innovation and the sharing of information. We've been shut down at a bunch of universities in the U.S. where we pay them money to conduct research and publish it publicly. Shouldn't cut off our nose to spite our face. We shouldn't endanger 40,000 to 50,000 American jobs from American companies that sell the Huawei. When it's clearly no national security concern about the ability to sell those particular products, if you think anything that helps China or anything that helps Huawei helps China, then we're talking trade barriers.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  24. From other people. If we're forced to create our own alternative to the Android platform, for example, we might not come back.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  25. This government, and I still know a bunch of people in it, is not going to just say, Oh, a company can play a major role in American communication networks without very strict controls. We'll only be allowed to do business in this country if we're under controls at least as strict and Nokia and Erickson. And that's the way it should be. And someday we'll get to the point that the U.S. has a comprehensive program on how to determine whether a product's worthy of trust. And at that point, we'll be allowed to compete for that business. Hopefully it's in the next five or ten years. I think the big danger is, and I think we're really at a watershed, if, for example, on the $11 billion we buy from American companies, if we find our way and are forced to

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  26. So we have a complicated situation, and the trade talks appear to be very, very difficult with so many different factors going on. And I certainly don't think, and we don't suggest that the trade talks solve Huawei's problems, but it looks like if there's going to be a trade deal, there's going to be some kind of... Resolution of the Huawei situation, but people misunderstand that. People think, oh, well, that means it's political because you're going to negotiate away Huawei. No.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  27. What do you imagine then is the way out of this situation? Because it does change week to week, it's fascinating to watch that. And I know that I've talked to companies that are being impacted by this, the companies that work with Huawei, and they have similar worries is that they're not allowed to work with or sell to or work with companies that they need to be global citizens and being sort of pressured to do so because it's under national security concerns.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  28. China and other countries can hack into everybody's products around the world. They can hack into Nokia and Ericsson. So you would say you're only worried about China. That doesn't mean that you don't have to have a comprehensive program to evaluate all the products to make sure we're safe. And we see some great things that Department of Homeland Security is doing to try to raise the bar and increase our capabilities. It's just we see it in Australia, we see it in Germany. It's just that then they say, well, Block Huawei. Well, no, no, let's create capabilities that provide an objective and transparent basis for which products are worthy of trust. I don't mean which products were worthy of trust last week. I'm talking about today. Those are the capabilities that we have to all work together as a global society and make sure we have the standards and we have independent verification for everybody's products. And we're not going there yet.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  29. Well, the fact is that to the point we talked earlier about risk, Back when Edward Snowden released information about the PRISM program that was allowing the U.S. government to spile over the world, there was a situation where the U.S. government was using Cisco equipment to spy elsewhere in the world. There was a question, well, did Cisco let them or did the U.S. government hack into Cisco products? It doesn't matter

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  30. How do you operate in this environment? Because, in a lot of ways, they've just picked a company to be the example. They picked the correct company to do that to be made an example of that this is to bring to force the idea around security, because I think that's what's around it. And there's been a whole lot of coverage of the idea of what's secure, whether you allow Companies in. And even I was just at a security conference in Aspen, and the admiral there who was talking about the Pacific, he runs the Pacific Fleet and a bunch of other things, was talking about his nervousness is not over anybody but China, like in terms of technologically sophisticated surpassing of US technology.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  31. The competition helps promote reduced price innovation and better security. The UK government parliamentary committee just released a report saying the communication networks in the UK will be less secure if Huawei isn't part of it because having the resilience of multiple suppliers is critical to maintaining functioning

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  32. You'll have, even in the US, even though we're way ahead, you'll have at least three vendors. And that's why it's part of the competition that people don't realize. We can contribute certain things, but we have a fragile ecosystem of competition in telecommunications, which is why, for example, nobody ever talks about this. Why in China the race for 5G there, Nokia and Ericsson are allowed to compete against Huawei and Chinese companies. So, regardless of what you think of the Chinese government, they see the value in some aspects of a market-driven economy.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  33. And the concept is the idea that everything will be digitized, every part of the equation down to the cow, for example. And so that's why the security concerns are greater, because every single act will have a digital element to it, or presumably.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  34. So latency means you improve those kinds of abilities for it to serve. But really bringing computing power to the edge to serve citizens and organizations.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  35. 5G helps you bring the computing power to the edge, to the end user, so that people and organizations can serve society organizations better. So it's predicted to be probably the greatest Enabler of jobs in the history of mankind as we move into the enabling aspects of 5G. So it allows more data faster. It reduces latency, which is like a response time. So for autonomous driving, the communications will be that rather than a car, for example, at 70 miles an hour stopping in three or four feet, it'll stop in a centimeter.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  36. Well, 5G at a high level is going to enable technologies to help the digitization, creating digital vertical industries. The most commonly referenced one like autonomous driving remote surgery, but you'll have efficiency and energy, efficiency and manufacture. Farming, you'll have sensors out there. They're even now seeing sensors on cows. And sensors communicate with machines.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  37. Right. So the argument being that they can't really spy, like, there isn't really an ability because there's so many vendors and operators and distributors of all these different things and such like AT&T buying those things. I'm going to back up just a second. For people who don't know, 5G, give a quick explanation of what's coming. It's always coming. It's always about to be here. But 5G will do for the general listener.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  38. And so there's issues about whether or not, and we're only trying to sell into the radio access network or the RAM. Not sell into the core. So there's arguments that as 5G goes out and you have millions and billions of devices, that's going to blur the distinction between the core and the RAM. But the fact is. The experts have a roadmap for security standards that maintains the difference which is built on the old 4G measures of security, but there are enhanced security mechanisms for 5G And there are real benefits to the technology for why you would keep the radio access. Right.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  39. Example, Nokia has a joint venture with Shanghai Bill, a Chinese government owned company. They're allowed to do business in the US only because they've entered into, as has Ericsson, a government-monitored risk mitigation program. And that's what we would like to talk to the U.S. government about. We would like to enter into a government monitored risk mitigation agreement that despite Nokia and Erickson's deep ties to China, they're allowed to do business. So risk mitigation is the concept. Then fast forwarding to 5G. Just as I think there's kind of been a misemphasis on equipment vendors versus the role of telecom operators, because it really is a shared responsibility, is 5G is built on the 4G system. And I'm not a technical expert either, so I may dumb it down. Hopefully I'll be accurate when I do it. But one of the big debates is between the core where the most sensitive functioning is, the core of the network, and the radio access network.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  40. And there's, in fact, there's no pressure on them not to include us in 5G. Well, the reason is because they understand, the U.S. government understands, and AT&T is one of the best in the world, this is how we manage risk. This is what the telecom operators do. So whatever the theoretical risk is, AT&T can handle it. And in fact, the same goes for Nokia and Ericon. US doesn't have a comprehensive approach to these issues. They're trying to work on it. I think DHS is doing a lot of good. But Nokia and Ericsson that are deeply embedded in China.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  41. The fact is the telecom operators have a tremendous amount of authority and control. We sell them the equipment. They decide whether we will service the equipment, and if they do hire us to service equipment, when and how we do it. And they control the data, they control monitoring the data. So when you look at the security of our communication networks, as we think about 5G, that is a critically important part of it. And so, for example, when you look at Mexico, where we have a giant equipment sale to AT&T that runs major networks in Mexico, there is no pressure by the U.S. government, unlike in other countries. There's no pressure by the U.S. government to force AT&T to rip our equipment out of Mexico.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  42. Right, the on off switch or whatever. I think that would probably be the primary concern, although most of the attention is on the surveillance. Well, it's interesting because the context for the 5G discussion is really about security of communication networks. And the fact that there's all this focus about us, we're an equipment vendor.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  43. No, no, they're assuming the worst, presumably, that there are these, and especially with the rollout of 5G. Let's talk a little bit about that. 5G is being rolled out across the country, and Huawei is a big player in this area. I don't want to dumb anything down because it's super complex, but the argument is that if we let the Chinese outfit all this, we're in danger of letting them spy on everything, essentially. I think that's the dumb version of it.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  44. I think the track record that we have, and we made the point earlier about allegations that we've operated in over 170 countries and there have been no major cybersecurity incidents in those 170 countries, some would think that would at least buy us a conversation with the U.S. government that right now the U.S. government's not really willing to have with us. No.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  45. I'm not an expert in what happens in China, but there are certain government companies. There are companies that are publicly traded that are majority owned by the China government. And then there are companies that are privately owned, and we're the largest privately owned company in China. So they certainly know the difference between official government ownership and what have you. The allegation is that because of the way the China government operates as a government, different from the US and our allies, that they have the power to do things or force us to do things that would violate the concepts in a country that has what the US would call a rule of law. It's a very different kind of a context and a different situation. Our leadership has been quite active in maintaining distance from the Chinese government during the seven years I've been there.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  46. But it's something like that. Right. But behind this is the idea that Chinese companies, Chinese own companies, which are becoming more global, have not had as much from the consumer space recently we've had TikTok, I guess, but mostly it's not been Chinese companies have stayed there, some of the bigger ones that are there have remained in China and have been popular in China. I'm just talking about the consumer ones and have not moved globally. But China's strength in technology over the past couple, I guess the past decade or more has been significant and impressive in a lot of ways. People had thought of China as not an innovative place, but there's been a lot of fast forward movements by Chinese companies. And so the worries have grown that these companies are working hand in glove with the Chinese government. So talk a little bit about that concept, because I think that's really what's behind it rather than a lot of things.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  47. It's an alleged violation of export control laws. And it was allegedly some kind of conduct relative to banks that were helping to finance some transactions. I haven't studied it, but it's something like that.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  48. Right, and we'll get into that in a minute because I think that's been a big national freak out over something like FaceApp or whatever the technology is, is that the governments are working closely, too closely with the companies or the companies are under duress to work for the governments, which is a different style than is here in the United States, although I think our government does put a lot of pressure on tech companies that isn't as well known. But it's not as coordinated. People feel it's coordinated. When we get back, let's talk about that. I'm here with Andy Purdy. He's the chief security officer of Huawei Technologies USA. We're going to take a quick break now. We'll be back after this.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  49. No, I know that. And in fact, there are no allegations now. And some government officials have said there have been one or two government officials who I think have misstated what the evidence is. They believe it's more about the country than the company, more about China than Huawei. They're afraid that China could force us to do bad things. Not that they're allegations. So in a way, it's an allegation that we would do bad things for the China government.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT

  50. It's interesting when you look at the big investigation, which was the House Intelligence Committee investigation in 2012, if you look at what they reported, there were no allegations.

    2019-08-26 · Decoder with Nilay Patel · Recode Decode: Huawei's chief security officer in the US, Andy Purdy · IDENTIFIED FROM THE TRANSCRIPT