Which is just outside of shenzhen. We had a sitdown interview with a key executive. I would say that there is a huge misunderstanding about the type of company that huawei is. Huawei is privatelyowned company. There is no real connection to the state in china. We are part of that thriving private business. That is probably the fundamentally the biggest misunderstanding. Connell there is no connection between huawei and the Chinese Government, no direct connection. There is no direct connection. There is no ownership. Connell take it straight to todays panel, joined by adam lashinsky, fortune executive editor. Fox business contributor. Steve moore with us, economist at heritage, senior mick advisor to the trump campaign. Good to see you from main Mainland China this evening or early tuesday morning. Adam, start with the huawei question. It was interesting for lack of a better word to get this tour of the companys facilities today, but we certainly heard from the founder that huawei is hurting, right . We know that it is hurting. The question, i guess from a practical standpoint, can huawei survive this in your view . You know a lot about Technology Companies, this being a crackdown by the u. S. Government is it. Huawei can survive. The question is how bad it will be depending how strictly the u. S. Enforces some of the sanctions that it already is enforcing. Is huawei without certain component will be crippled but eventually they can get those component and they can sell them in china which is a very large market. But that is very different from what their plans had been only a few months ago. Connell theyre certainly scaling back. It was obvious from founder had to say today that they are scaling back. I guess the question from the american perspective, whether or not americans should be rooting for huaweis demise or survival . A lot of American Companies, chipmakers, have a lot on the line here. Is there rooting interest . I dont believe one minute from the ceo told you from huawei theyre not being attached to the government. I mean i think theyre attached at the hip. I think that more and more these Chinese Companies are acting in concert with the government and in ways that are hurting the American Economy and hurting american security. So i think that this idea that they are somehow wholly separate from the government decisions in beijing i think is completely wrong. Do i want that company to fail . No. But i do think that this puts more pressure on beijing to start making some of the concessions need to be made in the end will benefit both countries when we get a trade deal done. Melissa you know it, steve, i want to pick up on that question right there, when we were talking about who owns huawei. Adam, let me ask you, im looking at some of the other reports about who actually owns the company. They say they have never sold a share of the company. That it is owned solely by its employees which sounds a little communist in its the way they sort of explain that. They also have a law that requires Technology Companies to help assist with the countrys intelligence gathering. That says a lot, right . Now, melissa, youre getting to the heart of the matter. There is more nuance to than the way steve was describing it. What huawei says about its employees owning every share of the company, very well may be true but it is beside the point, right. Exactly. The point is what you were getting at at the end what Chinese Companies are required to do by chinese law. That is the heart of the dispute that were having, what we need to work out if were going to move forward. Melissa yeah. Steve, what strikes me, i heard art laffer talking this morning about the tremendous distance china has come in opening things up and in terms of, just the economic advances and advances to the people. Do you think that the lens through which were looking at it today were either being too judgmental, we kind of compare it to totally open economy, open system or maybe, have we been blinded by advances they made . You know what im saying . Melissa are you asking me to contradict Arthur Laffer . Melissa no. Arthur is my mentor. I love the guy. Were having a big party for him on wednesday when he wins the medal of freedom. Melissa yeah. Look, i disagree with arthur just a little. There is no question from the late 1970s through, you know, up to five or six years ago what happen to china, one of the great economic miracles of all time as they moved away from communism to more free enterprise, free market system. What worries me, where i differ a little bit in laffer, the last six or seven years they moved back in the wrong direction. Day after day with respect to our security, building up the military or cybersecurity issues or the hacking into our Computer Systems or i would argue they have moved more towards Central Planning and state ownership. I agree entirely what you all were just saying. It is not a question who owns the company. It is who is directing its operations and that relationship between government and the company. Melissa all right. Well leave it there, guys. Both of you good stuff. Connells full interview with Andrew Williamson will air later this hour. You dont want to miss that im on the edge of my seat. Thats for sure. Connell. Connell interesting, melissa, we get into some issues about the governments role and application of intelligence laws in that interview. That is later in the hour. Meantime major retailers in the u. S. Testifying to the u. S. Trade rep today on the impact of potential tariff increases. Lets get to hillary vaughn, live at the International Trade commission with the latest on that story. Hillary. Reporter hey, connell, we talked to several retailers from apparel to shoe manufacturers who tell us they have already put in their shipment for back to school and Holiday Season of the kenneth cole ceo told me their orders are already on the boat headed from china here to the u. S. If there is surprise tariff when they arrive they will be forced to eat that cost because they have already negotiated prices with stores and distributors. No one is writing us a check for these tariffs. China is not writing as you check for these tariffs. We will absorb the tariffs or deal with the tariffs. Basically i see it as a tax on american consumers. Reporter we also talked with the Toy Association who represents Companies Like hasbro and mattel. They say tariffs would be devastating to their industry continue to struggle since toys r us closed last year. We talked with the American Apparel and Footwear Association that represents big brand retailers from bloomingdales, to macys, they say the tariffs could wipe out small companies, midpriced companies if they dont pass on the price to consumers because they are not big enough to absorb it. Parents can certainly expect to see more expensive toys this Holiday Shopping season. It is an extinction event. Makes sure companies will not be in business or passing prices along. Reporter we did talk to some people here today who actually are supportive of the tariffs, manufacturers looking to bring business back here to the u. S. , for clothing to be made here in the u. S. They tell us they believe these tariffs would help level the Playing Field to be more competitive with china. Ive been in the textile business 40 years. Ive seen china go into the wto. Ive seen their blatant, illegal practices. Im here today to support the administrations 301 tariffs against chinese textile imports because it starts a somewhat level Playing Field. It hopefully shift some manufacturing back into the western hemisphere. Reporter the companies we talked to talked about moving operations to vietnam. None of them said they would move operations back to the u. S. Connell. Connell we heard some of that here. Good reporting. Hillary vaughn live in d. C. Melissa. Melissa boeing executives saying sorry today. Lets go to Jackie Deangelis on the floor of the new york stock exchange. Go ahead, jackie. There was a lot there. Reporter good afternoon, melissa. A lot of news coming out of the paris airshow. Boeings Dennis Muilenburg said he criticized the company for inconsistent communication not only with regulators but also with the customers. He said that was unacceptable. Meantime the faa could be begin to file a new boeing 737 software to correct the problem in as early as a week. The boeing commercial airlines ceo, he said this bit all. We are very sorry. The loss of lives as a result of the tragic accidents of both ethiopia 302 and lion air 610. Our thoughts and prayers are with loved ones who lost their lives. Reporter emotional sentiment. A new call by wall street journal and nbc news, 25 of u. S. Flyers would think twice before they get on a 737 melissa. Back to you. Melissa i would too, jackie, thank you. Congresswoman alexandria ocasiocortez slamming Ceo Jeff Bezos for paying his workers quote, starvation wages. Now the ecommerce giant is fighting back with a war of words could mean for efforts to crack down on big tech. Well talk to Dan Henninger of the wall street journal. That is coming up. Weighing action against iran. Why secretary of state mike pompeo says the u. S. Is considering a full range of options against the country. Were live in china as well. Connell . Connell we have much more coming up here, melissa, as we continue here, live from shenzhen in china. Years ago it was a small fishing village but now it is dubbed the Silicon Valley of china, home to some of the countrys largest Technology Companies really at the center of this trade war with the United States. So as we continue, much more from huawei and much more on the dispute that the people of china fear could have longterm effects. More live from china, coming up next. Work for Different Companies but we still have things in common. The only reason we have conflicts because we dont understand each other. To your goals and needs. Some only call when they have something to sell. Fisher calls regularly so you stay informed. And while some advisors are happy to earn commissions whether you do well or not. Fisher investments fees are structured so we do better when you do better. Maybe thats why most of our clients come from other money managers. 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This sprawl city of 12 1 2 Million People was a tiny fishing village 40 years ago. Now it is home to some of chinas largest Technology Companies. Tencent, zte, and huawei are all headquartered here. It is known as the Silicon Valley in china. Perhaps as more than any city in the world, shenzhen is at the center of the trade war with the United States. Not only trade war but technology wars. It profoundly affects our generation. Connell how profound the impact will be seems to depend more than anything what happens to huawei. The United States government has been cracking down on the tech giant, blacklisting a company it seize as a National Security risk. Here in Shenzhen Huawei is the citys largest employer, which is top of mind when we spoke with the vice mayor. How has the trade war impacted shenzhen and are you concerned at all about the future. Shenzhen is a major exporting city in china 2018. Our International Trade volume stood at actually over 430 billion u. S. Dollars. Therefore shenzhen will inevitably phase negative impacts brought about by trade frictions. Among the 250 billion u. S. Dollars worth of goods, that is the u. S. Is going to slap tariff, extra tariffs on about 20 billion u. S. Dollars of worth of goods that are from shenzhen. However these impacts are generally under control from january to may, we saw an increase in the International Trade volume of shenzhen, especially the export of shenzhen rose by 4. 8 , a growth rate 1. 5 higher than from january to april. Connell one of the keys it seems to me about the future for this city is what will happen to huawei since it has been targeted by the United States government. The most recent statistics that i saw from 2016 said that huawei itself accounted for 7 of the shenzhens gdp. So the question becomes, what happens to shenzhen as a city if huawei doesnt survive . Huawei is an important business in shenzhen. As the governments of shenzhen which is home to the headquarters of huawei, we pay much attention to the issues surrounding huawei. The current problems have caused certain degree of impacts to huawei but we believe that the company will overcome these impacts. We strongly oppose the extreme political crackdown on huawei by the u. S. Government without any concrete evidence. Connell our special coverage will continue from here in shenzhen on after the bell. So dont go away. Much more is coming. Were taking you behind the corporate headquarters, behind the scenes at headquarters of huawei. One of the executives shared his side of the ongoing trade war from there, the dispute with the United States. There is lot more of that coming up later in the hour. Melissa. Melissa looking forward to that. Setting the stage for 2020. The President Trump trailing democratic competition in a new matchup poll. Why critics say trade tensions could hurt the president in the white house race. 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This is according to the latest fox news poll. The president is preparing to kick off his Reelection Campaign tomorrow in orlando. Here now is Dan Henninger from the wall street journal he is also a fox news contributor. So what do you make of this poll . I mean it would, one thing to be trailing joe biden. It is another thing when they have him trailing somebody like Kamala Harris who doesnt seem to have a lot of support out there in general versus the other democrats . Well, it is early days but i think one thing to keep in mind about polls like this is, it is a sort of a snapshot of the general electorate from left to right and we know that democrats are massively opposed to donald trump. There are a lot of them in a poll like this. Republicans tend to support him. So those numbers i think are being determined by a couple of groups. Independents in the center and mainly by women, melissa. In other polls trump is trailing joe biden by 20 point among women voters. Theyre the ones who in midterm elections put a lot of democrats, allowed a lot of democrat to defeat incumbent republicans. So i think trump has a lot of work to do with women if he is going to start moving those numbers,