Tech talent to other countries like india. We will dive into how the country might be the benefits. First, to our lead. This week, President Trump hosted president xi jinping in florida. Trump blame china for stealing jobs and intellectual capital. But the countries remain very reliant on one another. Nearly half of imports come from china, and multinationals have 228 billion in investment at stake if trade war breaks out. We got the latest from Ramy Inocencio in florida. It strikes me as interesting that this billionaire businessman and novice politician is meeting someone who is quite the opposite, a very seasoned politician pushing back against luxury in china. What ties them together is money. One of the big issues is jobs. Donald trump has been saying china has been stealing american jobs and taking them to china. Another interesting topic is currency manipulation. China has been trying to figure out where it stands in terms of a basket of currencies and the dollar. President trump says it is potentially a currency manipulator. One final topic is the u. S. Trade deficit, or the chinese trade surplus. 347 billion dollars in 2016 was the amount of money in terms of deficit. Donald trump has been saying that has been very unfair and said he will do something about it. We will be looking at jobs, the currency, and trade. Caroline thank you very much. Great to have you on the show. Our next guests says the diplomatic relationship between president xi jinping and President Trump is considered to be one of the most important in the world. This will be the biggest test so far for the president. Thank you for your time today. It is amazing the significance of the relationship. Im going to the bloomberg terminal, looking at a particular graph at the moment that shows u. S. Total trade in china, 17 of all world trade is coming from china. This is crucial. How worrying isnt that trump has talked so tough on trade how worrying is it . What is interesting is that you have heard tough rhetoric around trade, but there does appear to be two different camps in the Trump Administration right now. You have certain folks in the administration, in particular his soninlaw jared kushner, perhaps rex tillerson, who have a business background and probably have a much more pragmatic, businessoriented approach. How can we create jobs, build the economy . They recognize that involves doing trade and doing business with china. , whatis a different camp you saw on the campaign trail, including peter navarro, who has been clear trade with china is unfair for america and ripping jobs away. It will be interesting to see if the Trump Administration is able to find a middle ground. Are they veering more toward one of the other . Do they have a more coherent approach on what their economic and trade strategy will be with regards to china. Caroline im going to check in the significance on trade, 17 reliance on china. It is amazing when you are thinking of certain technology industries, state backed chip industries is one that wilbur ross has commented on. Other nontech industries are set to benefit in this meeting. Do you think there will be concessions on both sides of the meeting here . Im not sure how much you will see real deliverables out of this meeting. I think more than anything you , will see both leaders try to lay the foundation, set the baseline, make clear what their priorities are, which industries they care about, where they would like to see things done, and from the Trump Administration where they would like to see china set a level playing field. I think what they are aiming for is to lay a foundation and we will see what comes out of that in the months ahead. Caroline Asian Infrastructure investment bank, potentially an invitation to join that coming from china. Do you think that could benefit the relationship with the u. S. , including other hubs in the area, singapore, vietnam, taiwan . Infrastructure is a huge priority. There are tremendous needs. I think there is a recognition the this president has talked about his desire to see Infrastructure Investment in the United States, so perhaps infrastructure is an area where this administration can find common cause in Common Ground with administrations in the region. I think there would be great interest at looking at how the United States can play a greater role cooperatively in infrastructure. Whether that means the United States joins the aib, that gets into broader strategic issues, but there will be an ask and push and they will consider it. Cory may be quid pro quo is you come into the aiib, and maybe tentatively china might be able to invest more in u. S. Infrastructure. We are seeing chinese money flow into startups in the United States. Lyft, snapchat, how important is the flow and how much is it at risk . It is tremendously important. What will be interesting to watch in the coming months and years is that there will be a closer eye in some camps on these investments in industry that some people in the own and in the United States consider sensitive, where china is investing, and no doubt that is getting into u. S. Technology, so that will be a doubleedged sword. On one hand, companies are reaping the benefits of widespread Chinese Investment and money they cant get elsewhere. On the other hand, there will be greater sensitivity to where and how the chinese are investing. Caroline now to germany, where chancellor Angela Merkels legislation is backing legislation threatening facebook. It could find Tech Companies if they fail to remove content. If passed, they would be the toughest regulations facebook would face in any country where they operate. Coming up, increased scrutiny when applying for jobs in the u. S. And later, a chinese conglomerate with grand plans to be the next tesla, netflix, and apple allinone, but it is facing a serious cash crunch. This is bloomberg. Caroline the annual lottery process that Companies Use to bring Foreign Technology workers to the u. S. Has open. H1b visas are used to secure the best and brightest talent from around the world, but critics of the program say the visas allow companies to bring in lower paid workers. The u. S. Citizenship and Immigration Services introduced new guidelines late last week that require new information for programmers applying. Last month, the department suspended a program that fast tracked these of programming for certain applicants. We spoke with the author of driver in the driverless car. He has written extensively on h1b visas. They are doing the same stupid thing they did with the muslim ban. Now they are haphazardly lastminute applying it. It doesnt make sense. It means my students can no longer get jobs here. Why do we want to lose these brilliant kids . It will hurt us. It will benefit the rest of the world. Caroline the average his salary for these high demand h1b visas is 72,000. Maybe this is what many believe needs to be driven up higher . Would you agree the h1b could be changed . How would you advocate a change . The problem is the green card. When people apply for permanent resident visas, they are stuck in the h1b visa loop. The issue about declining salaries is too untethered the visa from a company. If they get someone offering a higher salary, they can leave and continue over there. That would fix the problem in one fell swoop. Why dont we do that . This way there is no cheap labor anymore. Caroline it is more about the green card that needs to be fixed. You have written extensively about this. That was at the heart of this, the fact people come to the United States, educate themselves, and then are driven back home. Where is benefiting from the potential brain drain going on . One way to measure this is look at the number of unicorns. These billiondollar companies we get excited about. Years, the only ones that existed were in america, more or less. Now you have about 100 of them in china and india. We have 80 in the United States. Basically, we are losing our advantage, our ability to build Innovative Companies because we are losing the talent. It is a braindead strategy frankly. Caroline have you done the research to show those being built in china and and india are ring built by educated talent. Perhaps they see what Silicon Valley has built and they want to do it too. Practically every company has returnees on their management team. We educated them, trained them and told them to go byebye and they compete with us. China has more Innovative Technology companies than the u. S. Does. Baidus building Better Technology than apple does. Apple is copying the designs of some of the social media apps in china, phones in china, because china is innovating beyond what even apple can do. Apple is considered to be our most innovative company. It has to steal from china. Caroline sad, changeable, how can we see tech talent fostered in the United States for those who indeed grew up from the beginning in the United States . Us immigrants want to come to america. We love america. This is the place to be. They would make americans compete, but as long as there is not a salary disadvantage, competition is good for the country. The problem was when you have cheap labor, indentured servitude, when people are tethered to their companies that , is when the problems occur. Fix the problem and we fix the entire range of problems. Caroline it is not cheap labor that many people fuel has undone manufacturing. A lot of people feel it is automation. This is something you have written an awful lot about and put a lot of thought into. What about the answers to that . Educating to ensure everyone can have a utopian view of the world rather than a dystopian view . That is why i discuss extensively that Amazing Things are becoming possible. Technology is allowing us to solve the grand challenges of humanity. The fact is we could benefit from this if we led the innovation and now start training our workforce. We have to train americans in using robotics, because manufacturing is coming back to the United States, highly Automated Robotic manufacturing. We should the implementing them, and for that you need the best and brightest in the world. Caroline you said policymakers, educators, and Corporate Leaders need to listen to this. Are they . Corporate leaders get it. They see the need for immigrants and new technology. Policy makers getting dumber by the day. It is sad to see what has happened to america. The iq level of capitol hill is decreasing every election it seems. This is a loss for the United States. The people get it. There is a big gap between the haves and the havenots, not only money, but knowledge and education, experience in social values. We are building two americas. People who are left out and are getting angry and people who are now participating in the innovation. Your viewers are tech savvy. They get it. Maralago, this has become trump territory and people dont want to listen. They are feeling left out and disenfranchised. We need to figure out how to equalize and offer the same technologies to everyone to educate, inspire, and motivate them to be part of this whole thing. Then we want to make sure that we balance the dangers of technology with the good things they can do. With robots, it is good. When they take our jobs away, thats bad. This is what we have to learn. Caroline do you advocate things such as universal basic income, taxing robots, to provide a safety net for those who do not want to be retrained . The universal basic income is a critical ingredient. Taxing robots does not make sense. They are going to tax my dish washer . We need to have enlightened policies. The jobless future is coming. Whether we are ready or not, jobs will be eliminated. Caroline the Entertainment Industry is getting in on the vr craze. We take you to china, where one of the countrys biggest filmmakers has plans for the technology. Add cash crunch to economic pain, the chinese conglomerates long list of problems. This is bloomberg. Caroline Virtual Reality is catching on in china, so much so the country is opening its first vr theme park. Stephen engle geared up or an exclusive firsthand experience from beijing. Watch your back all the time. It is virtually impossible not to see the potential for Virtual Reality. It is like a combination of a movie and a game. All you are really doing is Walking Around a barren, foam padded basement. This is freaky. The so real vr venture is cofounded by one of chinas most innovative film engineers who may transform some of his iconic Silver Screen work into the are into vr. For me, as a movie director, this technology is significant. It is not flat. You can see color and 360 degrees. You can interact with it. It opens up a whole new world. So real wants to open up a vr theme park around china. This shopping all is a Pilot Project to a larger impart to be built this year. So real wants to become the Universal Studios of china. Why Universal Studios . It is backed by a wealth of intellectual property. Units says chinese vr should multiply sixfold this year, surpassing the u. S. By 2019 as many chinese smartphone makers roll out their own devices. This year is pivotal. Venture capital ships to content providers away from the initial equipment makers. Wow. That is a whole other world, down the rabbit hole. A beijing startup is developing its own games and plans to have 10,000 the are 10,000 vr arcades across china. The big challenge is we dont have good enough content to get repeat customers. People play our games for 1020 minute tops. Vr right now is best suited for b2b applications for companies that can afford it. When this Technology Becomes more mature and there are a lot of applications out there. The vr industry is ready for a breakthrough, but those who left because of the bottlenecks will all swarm back. Unless the virtual space zombies get them first. Caroline a cash crunch at leeco continues. According to people familiar with the matter, month, the latest sign the billionaire may have over reached his plan to create a u. S. Foothold for the internetmediate empire. Selina wang was the first report the story. This is a fascinating company to track. I attended their grand unveiling just in october about their huge u. S. Strategy. They bought this enormous plot of land in Silicon Valley and said they would hire 10,000 employees. We have seen a cash crunch, suppliers alleged they miss payments, stripped of broadcast rights. This is the story of a company that went too far too fast and sources have been telling me this has stoked frustrations with u. S. Employees. There were a lot of promises that were not actually given, and delaying payrolls is a bad sign. Though the company told employees this was due to troubles getting money out of china, a lot of sources say they believe there are other issues involved as well. Caroline the company has responded, saying the payment wasnt missed, but you know differently. What therefore do we think in terms of the higher level employees they have managed to lure over . Now they seem to be looking for the exit. Definitely. They hired a number of high profile executives from qualcomm and samsung. He has this other division, another big venture in electric vehicles, and that company has seen significant turnover, especially their u. S. Finance team. Most left at the end of last year. They started to rehire some folks to that team, but sources tell me it was frustrating because they told the ceo that we cant keep spending and spending. He said keep on going, the money will keep on coming, and obviously it didnt. That stoked frustration and caused turnovers. Caroline still ahead, details on the technology being used to build the hyperloop. We will hear from rob lloyd. And a reminder that all episodes of Bloomberg Technology are Live Streaming on twitter. Check us out at bloombergtechtv. This is bloomberg. Caroline welcome back to the best of Bloomberg Technology. Hyperloop one was in washington hoping to win support from policymakers. This is one of two companies trying to create the future trends of system. The Company Revealed routes across 35 cities, joining 24 proposals around the world. The ceo spoke to us about his companys plans in the u. S. This is americanmade technology. Our reputation innovating has been world leading, but inground transportation and highspeed rail, there is no real american technology. It is an labased company that has grown from a garage to 260 employees in less than 27 months. We are demonstrating we can build something new, something different, by bringing the greatest minds together. We can do this in the United States if we collaborate and get support from regulators so we can dovetail with existing transportation programs and write a few new rules for hyperloop. Those of the conversations we are having on capitol hill. Caroline three winners, what happens to those projects . You said you want to aim to have hyperloop a reality by 2021. We have 35 semi finalists, 11 from the United States. We will bring that to a dozen, then we hav