Trump Accuses China of Election Interference | The China Show | 7/17/2026

>> WELCOME TO THE CHINA SHOW. LIVE PICTURES OF THE WHITE HOUSE WHERE PRESIDENT TRUMP IS SET TO DELIVER HIS PRIMETIME ADDRESS. DAVID: TAIWAN COMING ONLINE. TSMC DROPPED OVERNIGHT. EARNINGS WERE OUT. JAPAN IS SET FOR A CORRECTION. TSMC. SEPARATELY TO THAT OVER THE NEXT WE DID GET STATE MEDIA IN CHINA CONFIRMING THE CHINESE PRESIDENT IS SET TO SPEAK AT THE WORLD AI CONFERENCE. YVONNE: THE TWO PRESIDENTS WILL BE ON. IT'S ONE TO WATCH. LET'S GO TO WASHINGTON AND BRING IN OUR BLOOMBERG COANCHOR ON WHAT TO EXPECT FROM PRESIDENT TRUMP. >> FOR ALEXION INTERFERENCE ACCORDING TO SOME REPORTS. THIS IS TYPICALLY A QUIET MOMENT IN THE WHITE HOUSE. TECHNICAL CREW REVEALING DETAILS , MAKING SURE THE PROMPTER IS LOADED WITH THE SCRIPT. THE PRESIDENT WILL BE SPEAKING FROM THE EAST ROOM OF THE WHITE HOUSE. HE WILL TALK FOR 20 TO 25 MINUTES. HE WILL SEIZE ON THE ACTUAL OF ALEXION SECURITY CHALLENGING THE RESULTS OF THE 2020 ELECTION. WE WILL BRING YOU NOW LIVE TO THE WHITE HOUSE TO HEAR THE SPEECH UNFILTERED WITH THE PRESIDENT OF THE UNITED STATES LIVE NOW ON BLOOMBERG TV AND RADIO. >> GOOD EVENING. I'M PROUD TO REPORT THAT OUR COUNTRY IS SAFER, STRONGER, FAR WEALTHIER THAN IT HAS EVER BEEN BEFORE. WE INHERITED AN ECONOMIC AND SOCIAL DISASTER AFTER THE WORST INFLATION OF 48 YEARS. THE WIDE OPEN BORDERS WITH MILLIONS OF PEOPLE POURING IN FROM ALL OVER THE WORLD INCLUDING CRIMINALS OF ALL TYPES. 11,888 MURDERERS. MANY OF WHOM KILLED MORE THAN ONE PERSON. WE HAD TRANSGENDER FOR EVERYBODY. MEN IN WOMEN'S SPORTS. CRIME RAVAGING OUR CITIES. THE WHOLE WORLD WAS LAUGHING AT US AS A NATION. BUT NOT ANYMORE. TWO YEARS AGO, OUR COUNTRY WAS DEAD. NOW WE ARE THE HOTTEST COUNTRY ANYWHERE IN THE WORLD. AMERICA IS RESPECTED LIKE WE HAVE NEVER BEEN RESPECTED BEFORE. WE HAVE MORE MONEY BEING INVESTED IN THE UNITED STATES THAN ANY TIME IN THE HISTORY OF OUR COUNTRY. MORE AMERICANS ARE WORKING TODAY THAN EVER BEFORE. THIS WEEK IT WAS ANNOUNCED THAT INFLATION SOARED -- THE LARGEST MONTHLY DECLINE IN MORE THAN SIX YEARS. JUST HAPPENED. WAS JUST GIVEN OUT. THE MEDIA REPORTED IT. WE ACCEPT IT. THE BEST IN SIX YEARS. THE TAX CUTS AND ARE GREAT BIG BEAUTIFUL BILL ARE SAVING HARD-WORKING FAMILIES THOUSANDS AND THOUSANDS OF DOLLARS. LIKE WITH THE PROVISIONS, NO TAX ON TIPS, NO TAX ON OVERTIME, AND NO TAX ON SOCIAL SECURITY FOR OUR GREAT SENIORS ALONG WITH THE INTEREST DEDUCTION ON THE LOAN USED TO PURCHASE A CAR. BUT ONLY IF THAT CAR IS MADE IN AMERICA AND 100% EXPENSING FOR JOB CREATING BUSINESSES. OUR STOCK MARKETS ARE AT THEIR HIGHEST POINT IN MANY YEARS. BUT WE CAN ACTUALLY SAY OF ALL TIME. YOUR 401(K) PENSIONS AND RETIREMENT ACCOUNTS ARE SETTING RECORDS EVERY SINGLE DAY. THE HIGHEST IN HISTORY. FOR YEARS WE PAID THE HIGHEST PRICE FOR PRESCRIPTION DRUGS ANYWHERE IN THE WORLD. NOW WE PAY THE LOWEST PRICE UNDER MY MOST FAVORITE NATION'S POLICY. I WAS ABLE TO GET THE REST OF THE WORLD AND THE PHARMACEUTICAL COMPANIES TO ACT RESPONSIBLY. DRUG PRICES ARE COMING DOWN BY 70, 80, 90%. TRUMP RX. THIS WILL ULTIMATELY REDUCE THE COST OF HEALTH CARE. YOU HAVE TO GO TO TRUMP RX TO TAKE ADVANTAGE OF IT. THE COURSE OF HEALTH CARE IS COMING DOWN BECAUSE WHAT WE'VE DONE WITH PRESCRIPTION DRUGS. WITH TRUMP ACCOUNTS, EVERY CHILD HAS ACCESS TO A TAX-FREE INVESTMENT ACCOUNT TO SAVE FOR THEIR FUTURE. BILLIONS OF DOLLARS BEING INVESTED, PUT IN BY COMPANIES AND INDIVIDUALS TO TAKE CARE OF OUR CHILDREN SO THAT AT AGE 18 THEY WILL HAVE POTENTIALLY HUNDREDS OF THOUSANDS OF DOLLARS IN THEIR ACCOUNT AND THEY WILL GET OFF TO A GREAT START IN LIFE. FOR THAT, GO TO TRUMP ACCOUNTS & UP YOUR CHILD OR ANY CHILD WHO WOULD LIKE TO SIGN UP. OUR PREVIOUSLY WIDE OPEN BORDERS HAVE BEEN TRANSFORMED INTO THE MOST SECURE BORDERS IN THE HISTORY OF OUR COUNTRY WITH ZERO ILLEGAL ALIENS BEING ADMITTED TO THE UNITED STATES IN THE PAST 14 MONTHS. THAT IS ZERO. NOBODY THOUGHT IT WAS POSSIBLE. WE HAD THE WORST BORDER IN THE HISTORY OF OUR COUNTRY AND NOW WE HAVE THE BEST. CRIME IS PLUMMETING NATIONWIDE WITH THE MURDER RATE AT ITS LOWEST LEVEL SINCE 1900. MORE THAN 125 YEARS AGO. WE ARE MAKING A RECORD INVESTMENT IN OUR ARMED FORCES AND WE HAVE THE STRONGEST AND MOST POWERFUL MILITARY BY FAR ANYWHERE IN THE WORLD. I BUILT IT DURING MY FIRST TERM. UNFORTUNATELY, WE WERE FORCED TO USE IT NOW. WE WON IN VENEZUELA WHICH IS NOW WORKING WITH US TO PRODUCE MILLIONS AND MILLIONS OF BARRELS OF OIL. WE ARE LIKEWISE WINNING BIG IN IRAN. YOU WILL SEE THE FRUITS OF THAT LABOR VERY SHORTLY. AMERICA IS BACK AND DOING REALLY WELL. BUT WE STILL HAVE A MAJOR CHALLENGE THAT MUST BE URGENTLY ADDRESSED. BECAUSE NO COUNTRY CAN BE GREAT WITHOUT FAIR AND HONEST ELECTIONS. YOU HAVE TO TRUST YOUR COUNTRY BECAUSE IF THERE CAN BE NO TRUST , THERE CAN BE NO GREATNESS. THAT'S VERY SIMPLE. NO TRUST, NO GREATNESS. FOR MANY YEARS I HAVE CALLED FOR BOLD, SWIFT, DECISIVE ACTION TO PROTECT THE INTEGRITY OF AMERICA'S ELECTIONS. EVERY AMERICAN DESERVES TO KNOW THAT WHEN THEY CAST THEIR VOTE, THAT VOTE WILL BE COUNTED ACCURATELY IN A SYSTEM AND THAT IS TO MAKE THE SYSTEM SECURE. ONE WHERE CHEATING AND INTERFERENCE ARE NOT JUST DIFFICULT BUT VIRTUALLY IMPOSSIBLE. UNFORTUNATELY THE SYSTEM WE HAVE TODAY FALLS CATASTROPHICALLY SHORT OF THAT STANDARD. TONIGHT I'M ANNOUNCING THE IMMEDIATE DECLASSIFICATION AND RELEASE OF CRITICAL INTELLIGENCE REVEALING SHOCKING VULNERABILITIES IN OUR ALEXION INFRASTRUCTURE. THIS EVIDENCE SHOWS THAT THE ALEXION SECTION -- ELECTION SYSTEM DANGEROUSLY EXPOSES LEVELS NEVER THOUGHT POSSIBLE. HACKING, EXPLOITATION, AND FOREIGN INTERFERENCE. JUST AS DISTURBINGLY, THIS VITAL INFORMATION HAS BEEN COVERED UP AND HIDDEN FROM YOU, THE AMERICAN PEOPLE, OUR BEAUTIFUL GREAT AMERICAN PEOPLE. BUT THAT ALL CHANGES RIGHT NOW. THE DOCUMENTS WE WILL RELEASE STARTING TONIGHT HAVE BEEN GATHERED BY THE WHITE HOUSE GOVERNMENT TRANSPARENCY TASK FORCE. A GREAT GROUP OF PEOPLE TO GET ALONG WITH THE STAFF OF THE PRESIDENT'S INTELLIGENCE ADVISORY BOARD. SUPPORTED BY OUR TOP INTELLIGENCE AGENCY CHIEFS WHO HAVE ALL PERSONALLY REVIEWED THE FINDINGS. WE ARE PRESENTING THIS EVENING AND FULLY CONFIRMED THEIR AUTHENTICITY. YOU CAN SEE THESE DOCUMENTS FOR YOURSELF AT WHITEHOUSE.GOV. GO CHECK IT OUT. OUR PURPOSE IN DISCLOSING THIS INFORMATION IS NOT TO WEAKEN CONFIDENCE IN ELECTIONS BUTTER AND THAT CONFIDENCE BY CONFRONTING VULNERABILITIES AND CORRECTING THEM VERY QUICKLY. THAT'S WHAT WERE DOING. THE DOCUMENTS COVER FIVE MAJOR AREAS OF CONCERN. FIRST, THEY SHOW THAT OVER YEARS STARTING DURING THE 2020 ELECTION CYCLE, THE PEOPLE'S REPUBLIC OF CHINA CARRIED OUT WHAT IS BELIEVED TO BE THE LARGEST COMPROMISE OF ELECTION DATA IN HISTORY. RESULTING IN CHINA'S ILLICIT ACQUISITION OF 220 MILLION U.S. VOTER FILES. THAT INFORMATION INCLUDES NAMES, ADDRESSES, PHONE NUMBERS, POLITICAL PARTY PREFERENCES AND OTHER SENSITIVE DATA THAT WOULD BE NEEDED TO REGISTER TO VOTE AND ENGAGE IN OTHER NEFARIOUS ACTIVITIES WHICH IS EXACTLY WHAT WAS HAPPENING. THIS DATA LOSS PRESENTS AN UNPRECEDENTED ALEXION SECURITY NIGHTMARE. THE INTELLIGENCE EVEN SHOWS THAT CHINA SIGNED A DATA X TOY TATIAN UNIT SPECIFICALLY THIS NEW PROJECT. COMPOUNDING THE TRAVESTY, THE SECOND SET OF DOCUMENTS WE ARE RELEASING REVEALS THAT MEMBERS OF THE DEEP STATE, VERY FAMOUS GROUP OF PEOPLE IN MANY CASES, IN OUR INTELLIGENCE AGENCY WORKED TO ACTIVELY SUPPRESS AND DOWNPLAY INFORMATION ABOUT THE EXTENT OF CHINA'S SINISTER ELECTION MEDDLING. COVERING IT UP FROM BOTH THE PRESIDENT AND THE AMERICAN PEOPLE LIKE NOBODY THOUGHT WAS POSSIBLE. U.S. SPY AGENCIES BUT LEARNING ABOUT THE COMPROMISE OF VOTER REGISTRATION FILES IN 2020 WHEN THEY DISCOVERED THAT TENS OF MILLIONS OF VOTER DATA. THINK OF THAT. TENS OF MILLIONS OF VOTERS DATA IN 18 STATES HAVE BEEN BOUGHT, STOLEN, OR HACKED BY CHINA. YET THOSE RESPONSIBLE FOR SOUNDING THE ALARM INSTEAD CAP THE INFORMATION SECRET AND. -- HIDDEN. THEY DID NOT DISCLOSE TO ANYONE ELSE TO THE BEST OF OUR KNOWLEDGE. THEY DID NOT INFORM CONGRESS. IN FACT, ALL THEY KEPT SAYING IS , THIS IS THE MOST SECURE ELECTION IN THE HISTORY OF OUR COUNTRY. A STANDARD LINE THAT WAS DIVVIED OUT TO SAY. THE COVER-UP OF THIS COLOSSAL SECURITY BREACH IS EVEN MORE DISTURBING IN LIGHT OF THE ADDITIONAL INFORMATION SHOWING THAT CHINA ENGAGED IN OTHER ALEXION RELATED ACTIVITIES TO UNDERMINE MY FIRST ADMINISTRATION IN OUR 2020 CAMPAIGN. AS THE DOCUMENTS WE ARE RELEASING SHOW, CIA, REPORTING EXPLICITLY STATED, IN MID 2018 THE CHINESE COMMUNIST PARTY'S POLICY WAS TO LEVERAGE REDUCING THE U.S. PRESIDENTS VOTES AND MAKE HIM RESIGN OR PRESENT -- PREVENT HIS REELECTION. ISN'T THAT NICE? ALSO IN MID-2018, CHINA WAS WORKING TO INFLUENCE THE RESULTS OF THE U.S. MIDTERM ELECTIONS AND LATER THE RESULTS OF THE 2020 PRESIDENTIAL ELECTION ITSELF. SEPARATELY IN MID 2019, THE CHINESE GOVERNMENT STRATEGY AGAINST THE UNITED STATES WAS FOCUSED ON UNDERMINING DOMESTIC CONFIDENCE IN THE U.S. PRESIDENT. THEY WANTED TO MAKE YOU SOUND LIKE YOU'RE PRESIDENT WASN'T SO HOT. WHEN ACTUALLY, YOUR PRESIDENT HAS DONE A GREAT JOB. THEY DID EVERYTHING POSSIBLE TO DO EXACTLY THAT. GOING ON, THIS DOCUMENT SAYS, THIS IS BY THE CIA, THE STRATEGY INCLUDED EFFORTS TO USE CHINESE CONTACTS WITH BIG U.S. COMPANIES TO INFLUENCE U.S. BUSINESS LEADERS TO TURN AGAINST THE PRESIDENT OF THE UNITED STATES OF AMERICA. THE CHINESE GOVERNMENT SOUGHT TO IDENTIFY U.S. JOURNALISTS WHO HAD REPORTED NEGATIVELY ON THE U.S. PRESIDENT AND PAY THEM LARGE TONS OF MONEY TO WRITE MORE NEGATIVE ARTICLES ABOUT HIM . AS MANY AS THEY COULD. THEY DIDN'T CARE WHAT THEY SAID. THE CHINESE GOVERNMENT WANTED U.S. PRESIDENT TO NEW -- TO LOSE THE NEXT ELECTION. THE REASON THEY WANTED ME TO LOSES BECAUSE THEY KNEW I WAS WISE TO THEM. CHARGING BILLIONS AND BILLIONS OF DOLLARS WORTH OF TARIFFS AND BUILT THE STRONGEST MILITARY ANYWHERE IN THE WORLD. WE HAVE THE STRONGEST MILITARY ANYWHERE IN THE WORLD. THESE ARE EXACT QUOTES FROM THE CIA REPORTING. THE NAME OF THE PERSON DOING THE QUOTE IS NOW UNDER REVIEW. BUT IT GETS EVEN WORSE. RAW INTELLIGENCE OBTAINED BY THE FBI IN 2020 STATED THAT CHINA'S ACTIVITIES, EVEN INCLUDED IN AN ATTEMPT TO MANUFACTURE LEGAL BOUT -- ILLEGAL BALLOTS FOR JOE BIDEN. DOCUMENTS SHOW THAT DOZENS OF SIGNIFICANT CIA AND NSA REPORTS ABOUT CHINA'S ALEXION TARGETING WERE KEPT OUT OF THE PRESIDENTIAL BRIEFING. THESE WERE BRIEFINGS THAT I WOULD GET ALMOST EVERY DAY. EVERYTHING WAS KEPT OUT. THAT WAS OF IMPORTANCE. ONE EMAIL AMONG INTELLIGENCE ANALYSTS ADMITTED THAT HE HAD DELIBERATELY MASSAGED THE PRESIDENTIAL DAILY BRIEFING TO WITHHOLD CHINESE ACTIVITIES RELATED TO THE ELECTION. ANOTHER OFFICIAL WROTE THAT SHE WAS RUNNING A SHADOW GOVERNMENT TO KEEP INTELLIGENCE ABOUT CHINA’'S ELECTION MEDDLING FROM BECOMING KNOWN AND TO KEEP IT AWAY FROM THE HONORABLE PROCESS. OTHER OFFICIALS WHO WITNESS SUCH EFFORTS PERCEIVE THE MOTIVATIONS TO BE BLATANTLY POLITICAL. RECENTLY WE FOUND SIGNIFICANT NUMBERS OF BURN BAGS AND THIS IS A GREAT GROUP OF BANKS THAT WERE USED TO DESTROY INFORMATION , GIVEN TO PRESIDENT BARACK HUSSEIN OBAMA. IT WAS MEANT TO BE BURNED. THESE BAGS WERE SUPPOSED TO BE AT A DIFFERENT LEVEL BY DIFFERENT PEOPLE INCINERATED AND CHECKED BUT IT NEVER HAPPENED. MAYBE WE GOT LUCKY. WE BELIEVE THIS WAS NOT DONE ON PURPOSE BUT RATHER THROUGH GROSS INCOMPETENCE OF THE PEOPLE THAT WERE SUPPOSED TO BRING THE BAGS. BUT THE FINDINGS ARE STUNNING. TODAY I'M ASKING THE OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE, THE DEPARTMENT OF JUSTICE, THE FBI, AND THE CIA TO INVESTIGATE WHY SUCH CRUCIAL INVESTIGATION WAS IN, TO FIRE THOSE INVOLVED IN THE COVER-UP, AND TO FILE CRIMINAL CHARGES AGAINST THESE PEOPLE. YET CONCEALING CHINA'S MEDDLING WAS ONLY THE BEGINNING. THE THIRD SET OF DOCUMENTS WE ARE RELEASING PROOFS THAT FOR MANY YEARS, AMERICANS WERE BLATANTLY LIED TO ABOUT THE SECURITY INCLUDING ELECTRONIC VOTING MACHINES AND BALLOT COUNTING SYSTEMS. DISHONEST, ALMOST ALL. THEY ARE VULNERABLE AND EASILY COMPROMISED. PEOPLE WITHIN OUR GOVERNMENT KNEW THAT. TONIGHT WE ARE PUBLISHING A SERIES OF PREVIOUSLY CLASSIFIED U.S. INTELLIGENCE COMMUNITY AND ASSESSMENTS AND OTHER REPORTS PROVING THAT OUR GOVERNMENT HAS LONG KNOWN THESE MACHINES ARE EXTREMELY EXPOSED TO ATTACK. AS ONE ASSESSMENT STATES, WE JUDGE THAT THE UNITED STATES ADVERSARIES INCLUDING A MINIMUM RUSSIA, CHINA, IRAN, NORTH KOREA AS WELL AS NONSTATE GROUPS HAVE THE CAPABILITY TO COMPROMISE U.S. ELECTION INFRASTRUCTURE. THAT IS SOME STATEMENT, ISN'T IT? MADE BY SUPPOSEDLY GREAT PATRIOTS OF OUR COUNTRY. THE DOCUMENT GOES ON TO FURTHER STATE THAT, WE ASSESS THAT CENTRALIZED ELECTION-RELATED DATA REPOSITORIES SUCH AS VOTER REGISTRATION DATABASES, AND OTHER OFFICIAL ELECTION WEBSITES ARE MOST VULNERABLE TO EXPLOITATION AND ADVERSARIES. USING ACCESS TO THE SYSTEMS TO DISRUPT ELECTION PROCESSES WITHIN THE UNITED STATES OF AMERICA. WE ARE RELEASING THOSE FINDINGS SPANNING FROM JANUARY 2022 JUNE 2026. THIS IS A CYBER THREAT AIMED AT THE VERY HEART OF OUR DEMOCRACY. MANY PEOPLE HAVE QUESTIONED WHETHER IT COULD ACTUALLY BE POSSIBLE TO ELECTRONICALLY MANIPULATE VOTE TOTALS OR CHANGE ELECTION RESULTS ON THESE TERRIBLE MACHINES. TODAY WE ARE RELEASING DOCUMENTS THAT SHOW THE CIA OBTAINED REPORTING OF A SPECIFIC PLOT TO DO A BIG NUMBER IN FAVOR OF THE CORRUPT MADURO REGIME IN VENEZUELA. THAT'S EXACTLY WHAT HAPPENED, CONSPIRING TO DIGITALLY RIG THEIR OWN COUNTRY'S ELECTIONS IN 2020. THAT'S WHAT THEY DID. THIS REPORTING INCLUDED PRECISE DETAIL -- DETAILS ABOUT METHODS TO DIGITALLY ALTER VOTE TOTALS IN WAYS THAT COULD NOT BE DETECTED EVEN WITH AN AUDIT, NO MATTER HOW DEEP THEY WENT. THIS INTELLIGENCE UNDERSCORES WHY WE MUST TAKE URGENT ACTION TO ENSURE THAT OUR OWN SYSTEM CAN NEVER, EVER BE HACKED OR COMPROMISED LIKE IT WAS IN THE PAST. THE FOURTH SET OF DOCUMENTS THAT REVEALS EVEN WHEN SIGNIFICANT EVIDENCE OF FRAUD HAS BEEN DETECTED, IT HAS BEEN BURIED AND COVERED UP. AMONG THE DISCLOSURES TONIGHT ARE FBI FILES DETAILING EVIDENCE OF ALLEGED FRAUD BY A LARGE-SCALE VOTER REGISTRATION OPERATION IN MICHIGAN. MICHIGAN STATE POLICE RAIDED A DEMOCRAT GET OUT THE VOTE ORGANIZATION, CORRUPT GROUP IN MUSKEGON. WE WERE SO CONCERNED BY WHAT THEY FOUND. THEY WERE JUST SO CONCERNED, THEY COULDN'T BELIEVE IT ACTUALLY. THEY CONTACTED THE FBI IN DETROIT. THE DOCUMENTS STATE THAT SOME CANVASSERS ADMITTED TO FBI AGENTS THAT THEY SIGNED VOTER REGISTRATION FORMS IN OTHER PEOPLES NAMES. SUBMITTED FRAUDULENT REST TO STRENGTHEN -- REGISTRATION FOR PEOPLE WHO DID NOT EXIST AND RECEIVED GIFT CARDS TIED TO THEIR NUMBER OF APPLICATIONS THAT THEY PRODUCED. IN OTHER WORDS, IT WAS PAYING, PLAY, CHEAT. THE FBI AGENT'S WORKING ON THE CASE BELIEVE THAT CRIMES WERE COMMITTED. THE BIDEN DEPARTMENT OF JUSTICE SLOW WALKED THE INVESTIGATION AND KILLED IT. TONIGHT I MASKING THE FBI DIRECTOR TO ENSURE THAT THE MATTER IS FULLY INVESTIGATED AND TO WORK WITH THE DEPARTMENT OF JUSTICE TO PROSECUTE THOSE RESPONSIBLE FOR ANY CRIMES. FINALLY, TO REVEAL JUST HOW VULNERABLE OUR ELECTIONS CONTINUE TO BE, WE ARE RELEASING THE RESULTS OF THIS INVESTIGATION. DAVID: WE ARE COMING OUT OF THIS LIVE PRIMETIME ADDRESS OF THE U.S. PRESIDENT. IN CASE YOU ARE JOINING US RIGHT NOW, SOME ASTOUNDING HEADLINES COMING THROUGH HERE FROM THE WHITE HOUSE. ACCORDING TO THE U.S. PRESIDENT, CHINA ATTEMPTED TO MANUFACTURE BALLOTS FOR JOE BIDEN. HE SAID THE CHINA METALS IN THE U.S. ELECTIONS AND THEY HAD RELEASED DOCUMENTS. IT'S ON THE WHITE HOUSE WEBSITE. OUR TEAM IS READY TO UNPACK SO FAR WHAT WE KNOW SO FAR. JOE MATHIEU WAS WITH US. JOINING US AS OUR MANAGING EDITOR FOR INTERNATIONAL SECURITY. LET ME START WITH YOU. YOU HAVE BEEN LISTENING IN TO WHAT THE PRESIDENT HAS SAID. QUITE RID THAT HE DOES THIS. PRIMETIME LIVE ADDRESS AT THIS TIME OF THE DAY. SUFFICE TO SAY SOMETHING DID STAND OUT TO US. YOUR KEY TAKEAWAYS HERE? >> WE DIDN'T KNOW EXACTLY WHAT POSTURE THE PRESIDENT WAS GOING TO TAKE. BUT THIS IS A REMARKABLE SERIES OF STATEMENTS FROM THE PRESIDENT OF THE UNITED STATES TO DENIGRATE THE ELECTION SYSTEM IN THIS COUNTRY AS ANYTHING LESS THAN SECURE. ANNOUNCING THE IMMEDIATE DECLASSIFICATION OF MATERIALS HE SAYS ARE FROM THE UNITED STATES INTELLIGENCE COMMUNITY PROVING VULNERABILITIES IN OUR ELECTION INFRASTRUCTURE. AS YOU MENTIONED, CHINA'S ALLEGED INVOLVEMENT IN THE 2020 ELECTION. HE SAID CHINA ACQUIRED 220 MILLION U.S. VOTER FILES. THAT FAMOUS GROUPS OF PEOPLE, IN MANY CASES HE SAID THEY WERE TO ACTIVELY SUPPRESS AND DOWNPLAY INFORMATION ABOUT THE EXTENT OF CHINA'S INVOLVEMENT. HE EVEN SAID THAT JOURNALISTS WERE PAID LARGE SUMS OF MONEY TO WRITE NEGATIVE STORIES ABOUT HIM . HE REFERRED TO LONG -- RAW INTELLIGENCE OBTAINED BY THE FBI IN 2020 SAYING CHINA'S ACTIVITIES INCLUDED AN ATTEMPT TO MANUFACTURE BALLOTS FOR JOE BIDEN. THIS IS WHAT I WANT TO MENTION QUICKLY. THERE WAS CONCERN THAT THE PRESIDENT WOULD REACH FOR RAW INTELLIGENCE THAT HAD NOT BEEN CORROBORATED AND THEREFORE NOT RELEASED BY THE INTELLIGENCE COMMUNITY. THIS IS SOMETHING THAT JIM HIMES FROM CONNECTICUT, WHO SERVES ON THE HOUSE INTELLIGENCE COMMITTEE, TALKED ABOUT. HE SAID THEY COULD DECLASSIFY UNSUBSTANTIATED REPORTS FROM A HUMAN SOURCE ABOUT RIGGED ELECTIONS. THE REALITY IS, RAW INTELLIGENCE COLLECTION IS FULL OF THINGS THAT ARE NOT TRUE. AS THE PRESIDENT CONTINUES TO TALK ABOUT THIS, WE WILL HAVE TO SPEND TIME FOLLOWING UP ON THE ALLEGATIONS THAT HE PUT FORTH. >> YEAH. MAYBE YOU COULD CHIME IN ON SOME OF THESE ALLEGATIONS. DEMOCRATS, THIS IS A MISSED OPPORTUNITY FOR PRESIDENT TRUMP TO USE A PRIME PRIME ADDRESS TO BRING UP PAST GRIEVANCES. TO DIRECTLY ACCUSE CHINA OF MEDDLING IN ELECTIONS FROM A FEW YEARS BACK. THIS IS QUITE RARE. >> IT IS GET OUT THE SAME TIME, IT SHOULD BE NOTED THAT THERE ARE CONTRADICTIONS HERE. WE WILL HAVE TO SORT THROUGH THE INFORMATION ON THE WHITE HOUSE WEBSITE. A LOT OF OFFICIALS INCLUDING SOME DEMOCRATS ON THE HILL AND THE SENATE INTELLIGENCE COMMITTEE HAVE SAID THAT IT'S LONG BEEN KNOWN THAT CHINA GAINED ACCESS TO SOME VOTER INFORMATION IN SOME STATES. IN FACT, THAT INFORMATION CHINA WAS ABLE TO GET BECAUSE IT WAS PUBLICLY AVAILABLE ON THE WEBSITE AND YOU CAN BUY IT DIRECTLY FROM THE STATES. SOME CONCERN ABOUT WHAT HE'S ACTUALLY TALKING ABOUT THEIR. THERE WAS AN INTELLIGENCE REPORT RELEASED BY THE DIRECTOR OF NATIONAL INTELLIGENCE JOHN RATCLIFFE WHO IS NOW THE CIA DIRECTOR. IN 2020 HE ISSUED A REPORT ESSENTIALLY SAYING THAT THEY FOUND NO INDICATION THAT CHINA REALLY TRY TO INTERFERE IN THE ELECTION PROCESS. THERE WAS A DISSENT THERE INCLUDED IN THE REPORT WITH SOME INTELLIGENCE ANALYSTS DISAGREEING AND SAYING THAT THEY FELT CHINA HAD PLAYED MORE OF A ROLE THAN THE INTELLIGENCE COMMUNITY ASSESSED. BUT THIS WAS A DEBATE THAT WAS VERY MUCH AT THE TIME AND WAS PUT FORWARD BY TRUMP'S OWN INTELLIGENCE COMMUNITY. WHEN HE SAYS THAT HE WILL FIRE PEOPLE WHO ALLEGEDLY MISLED AND MISGUIDED HIM ABOUT THE EXTENT OF CHINESE INVOLVEMENT, HE'S GOING TO BE POINTING FINGERS AT HIS OWN APPOINTEES FROM HIS FIRST TERM. DAVID: LET ME BRING YOU BACK IN. IT'S IMPORTANT TO KNOW, AS YOU HAVE ALREADY SHOWED, THERE'S A LOT OF WORK THAT NEEDS TO BE DONE TO GO THROUGH THESE DOCUMENTS. FOR THE SAKE OF ARGUMENT, LET'S TAKE THEM AT FACE VALUE. HELP US UNDERSTAND THE TIMING. WHY IS THE PRESIDENT DOING THIS NOW? TWO MONTHS FROM NOW, HE IS SCHEDULED TO MEET THE CHINESE PRESIDENT IN WASHINGTON. THE MIDTERMS ARE COMING UP AFTER THAT. DOES THE TIMING HAVE ANYTHING TO DO WITH THE CONTENT OF WHAT HE SAYING? >> HIS CRITICS WOULD SAY SO. PRESIDENT TRUMP WOULD AS WELL. HE'S TALKING ABOUT THE MIDTERM ELECTION CYCLE. WE DO KNOW THAT HISTORY HAS THE DECK STACKED AGAINST REPUBLICANS IN AN OFF ELECTION CYCLE IS REPUBLICANS ARE THE WHITE HOUSE IN BOTH CHAMBERS OF CONGRESS. WE'VE TALKED A LOT ABOUT THIS. THIS HAS BEEN AN ELECTION CYCLE THAT HAS LED MANY TO BELIEVE REPUBLICANS COULD LOSE THE HOUSE IF NOT THE SENATE. WE CAN GO INTO THE REASONS WHY. ACCORDING TO THE PRESIDENT'S CRITICS, HE'S TRYING TO LAY DOWN A SMOKESCREEN TO BE ABLE TO QUESTION THE RESULTS ONCE WE GET TO NOVEMBER. ALSO TO ADDRESS HIS OWN LEGACY. HE HAS LONG SAID THAT HE BELIEVES HE WON THE 2020 ELECTION. HE'S TRYING TO SHORE THIS UP WITH THE HELP OF BILL PULTE, HIS DIRECTOR OF NATIONAL INTELLIGENCE ON AN ACTING LEVEL. HAS BEEN A PERSONAL LOYALIST TO PRESIDENT TRUMP AND WAS FEARED BY MANY IN WASHINGTON THAT HE MIGHT START TO DIG UP INFORMATION LIKE THIS. AS NICK SAID THOUGH, WE WILL HAVE TO PUT TIME INTO THE DOCUMENTS. THEY HAVE BEEN POSTED PUBLICLY HERE. BUT THE TIMING IS ALSO PECULIAR. THE PRESIDENT IS TRYING TO SELL THE SAVE AMERICA ACT WHICH WOULD REQUIRE VOTER ID AND IS A PET BECAUSE OF HIS. THERE'S NOT THE VOTES FOR IT IN WASHINGTON. SOME THINK HE'S TRYING TO MAKE THE GROUNDWORK TO PASS THAT BILL. YVONNE: YOU'VE COVERED CHINA FOR MANY YEARS. I'M WONDERING, HOW DO YOU THINK BEIJING IS REACTING TO THESE HEADLINES THAT ARE CROSSING? WE ARE TWO MONTHS AWAY FROM THE TRIP THAT XI IS SUPPOSED TO MAKE TO D.C. >> WE'VE BEEN TALKING TO OFFICIALS WHO SAY THAT CHINESE OFFICIALS MAY BE GETTING SOME CONCERN AND COLD FEET HEADING INTO THAT VISIT PRECISELY BECAUSE OF THIS ISSUE. IN SOME WAYS IT MAY CONFIRM SOME OF THEIR FEARS . IT WOULD RATCHET UP THE CHINA PRESSURE HEADING INTO THE MIDTERM ELECTION AND THAT IS NOT SOMETHING THAT XI JINPING WOULD WANT TO WADE INTO SO QUICKLY. IT REALLY IS A FASCINATING DICHOTOMY. ON THE ONE HAND YOU HAVE PRESIDENT TRUMP OPENLY EXPRESSING HIS ADMIRATION FOR PRESIDENT XI. HE SAID SO MANY TIMES YOU GET HE HERALDED THE VISIT TO CHINA AS A HUGE SUCCESS. TALKED ABOUT TRYING TO EXTEND THEIR TRADE TRUCE. THAT'S OBVIOUSLY BEEN VERY ROCKY. BUT THEN TRYING TO PAINT HIMSELF AS THE VICTIM OF A GROUND -- GRAND ELECTION CONSPIRACY. IT'S NOT CLEAR TO ME THAT HE IS ABLE TO RECONCILE THOSE THINGS HIMSELF. YOU CAN BE SURE THAT THIS IS SOMETHING THAT CHINA IS NOT GOING TO WANT TO SEE ITSELF IN THE MIDDLE OF. I WOULD SUSPECT MAY BE ASSERTIVE AN ATTEMPT TO DOWNPLAY IT BECAUSE THEY WANT TO FOCUS ON A TRADE TRUCE AND POTENTIALLY MAKE THE XI VISIT A SUCCESS. THERE'S NO WAY THAT XI JINPING WILL COME TO THE UNITED STATES IF HE FEELS LIKE HE IS WALKING INTO AN ANTI-CHINA MAELSTROM. DAVID: THE DATES FOR THAT, LATE SEPTEMBER. COINCIDENTAL ALSO THAT THE CHINESE PRESIDENT IS SCHEDULED TO MAKE US PEACE -- A SPEECH AT THE WORLD AI CONFERENCE, SOMEPLACE OVER THE NEXT FEW HOURS. WE WILL BE WATCHING FOR THAT CLOSELY. IT'S WORTH POINTING OUT IT WASN'T JUST CHINA THAT WAS BROUGHT UP. RUSSIA, NORTH KOREA. MY FOLLOW-UP IS, WHAT DO WE NEED TO BE WATCHING AS FAR AS CHANGES TO FOREIGN POLICY IS CONCERNED SHORT-TERM? >> I MEAN, I THINK YOU WILL SEE A LOT OF THE ANTI-CHINA SENTIMENT STEP UP IN THE UNITED STATES. IN SOME WAYS, IT'S HARD TO SEE IF WE CAN GET I THE ONE ISSUE OF COURSES THAT CHINA HAS SO MANY LEVERS TO PULL AGAINST THE UNITED STATES ECONOMICALLY IN TERMS OF RARE-EARTH'S, AND THERE ARE SOME HE THINKS HE COULD DO TO DISRUPT THE SUPPLY CHAIN, AND THE CONTRAST IS REALLY INTERESTING. YOU HAVE PRESIDENT TRUMP LOOKING BACKWARDS ESSENTIALLY THE 2020, RAISING THESE CONCERNS AND ESSENTIALLY POINTING THE FINGER AT HIS OWN OFFICIALS FOR ALLEGEDLY KEEPING THE TRUTH FROM HIM. AND XI JINPING TALKING ABOUT THE FUTURE OF AI, THERE ARE A LOT OF PEOPLE IN THE UNITED STATES WHO WANT PRESIDENT TRUMP TO BE THINKING ABOUT THE FUTURE OF AI AND SETTING THE AGENDA THERE AND NOT LETTING XI JINPING'S AT THAT AGENDA. SO I THINK YOU WILL SEE SOME OF PRESIDENT TRUMP'S ADVISORS TRY TO PUSH HIM OFF THIS, HEADING INTO THE MIDTERMS COME IN TO TALK ABOUT THE ECONOMY, IRAN, AND OTHER ISSUES. BUT THERE AGAIN IS HIS VERY STRONG ANTI-CHINA FACTION THAT WILL PUSH THE PRESIDENT VERY HARD AND IN SOME WAYS THIS IS JUST EVIDENCE OF THAT. I DO EXPECT CHINA'S RESPONSE TO BE RELATIVELY MUTED PUBLICLY BUT THERE ARE A LOT OF MEMBERS THAT COULD MAKE TRUMP FEEL ECONOMIC PAIN. DAVID: WHAT ARE FRIDAY MORNING IT IS SHAPING UP TO BE, WHO WOULD HAVE EXPECTED THIS? JOE MATHIEU THERE, AND ART MANAGING EDITOR FROM INTERNATIONAL SECURITY AND ECONOMICS. WE JUST HEARD THAT SPEECH, REALLY QUITE ASTOUNDING ACCUSATIONS COMING THROUGHOUT OF THE WHITE HOUSE. NUMBER TWO, THE CHINESE PRESIDENT IS SET TO SPEAK AT THE WORLD AI CONFERENCE THIS FRIDAY. AND AT SOME POINT OVER THE NEXT HOUR OR SO, NUMBER THREE IS THE SELLOFF WE ARE SEEN ACROSS EQUITY MARKETS RELATED TO WHAT IS HAPPENING IN CHIPS. IT'S WORTH POINTING OUT THAT AS PRESIDENT TRUMP SPOKE, COULD BE RELATED TO WHAT HE SAID, U.S. EQUITY FUTURES ARE AT SESSION LOW'S. VIX FUTURES SLIGHTLY HIGHER BY A FEW DEGREES OVER THE LAST 15 MINUTES OR SO. SO THE MARKETS ARE REALLY FEELING IT AS WE SPEAK. YVONNE: YOU HAVE TO WONDER, THIS IS KOREA SHUT FOR THE HOLIDAY, SO WHO KNOWS WHAT WOULD HAPPEN IF SOUL WAS TO OPEN RIGHT NOW. THIS IS ONE THING YOU'RE WATCHING OUT FOR HERE, IN SOME WAYS THERE'S THIS WHOLE FEAR OF A CHINA 3.0, THIS PROSPECT OF THE SEE XMT, WITH THE CHIP SPACE IN GENERAL. STILL A LOT OF QUESTIONS ABOUT WHETHER WE'VE TRIMMED ENOUGH OF THE FROTH RIGHT NOW. TSMC, THOSE EARNINGS WERE ACTUALLY SOLID, BUT IT WAS THE HIGHER SPENDING THAN PREVIOUS FORECAST THAT DID SPOOK INVESTORS OUT THERE THAT PERHAPS THERE ARE LINGERING QUESTIONS ABOUT THE DURABILITY OF THIS AI TRADE, BUT THAT'S WHY YOU ARE SEEING THE TAIEX WITH SUBSTANTIAL LOSSES FOLLOWING WHAT WE ARE SEEING IN JAPAN. CHIPS THAT ARE BASICALLY AT HALF THEIR MARKET VALUE. NOT AS BAD IN TERMS OF PAIN BUT WE ARE STILL SEEING LOSSES OF ONE POINT WHEN 5%, FEELING THE PAIN AND SHIN JEN, AND IT'S A CHIPS, NO SURPRISE, LOWER BY MORE THAN 3% RIGHT NOW. SHANGHAI CRUDE IS STILL QUITE ELEVATED. IT'S A MORE THAN 10% FOR DEBBIE TI AND BRETT THIS WEEK, GIVEN SOME OF THE NEW FRESH STRIKES U.S. HAS LAUNCHED AGAINST IRAN. CERTAINLY THAT CONTINUES TO BE ONE STORY RIGHT NOW. YOU ARE STILL SEEING THE CONSUMER SPACE STILL LOOKS OK, WHEN IT COMES TO GUIDANCE COMING THROUGH IN TERMS OF EARNINGS AND REVENUE PICTURE, THIS IS WHAT WE ARE DOING HERE. PRE-LIM FIRST-HALF NET INCOME WAS UP 64%-81%. PERHAPS THAT'S WHY IT IS BUCKING THE TREND HERE TODAY IN TERMS OF WHAT WERE SEEING REPORTS UP .6%. MONTAGE TECH IS HEADING IN THE OPPOSITE DIRECTION AS WELL. WERE SEEING THAT DIVERSIONS WHEN IT COMES TO HONG KONG. WHEN IT COMES TO OFFSHORE CHINA, THIS OUTPERFORMANCE, MSCI CHINA IS SET FOR THE BEST WEEK AGAINST GLOBAL PEERS IN MORE THAN A YEAR. SO THAT OUTPERFORMANCE STREAK IS SET TO EXTEND FOR A THIRD WEEK. HSTECH IS ON OFFER HERE TODAY, LED BY THE LIKES OF TENCENT, MEITUAN, AND BAIDU, INTERESTING MOVES WE SAW YESTERDAY. XIAOMI IS UP, INTERESTING ENOUGH. DOLLAR CHINA AT KEY LEVELS, THE PROPERTY SPACE SEEMS TO BE DOING OK. WE ARE WATCHING CLOSELY THESE AI P OR PLACE. CSI 300 FALLING THROUGH THAT 200 DAY MOVING AVERAGES WELL. IT SEEMS LIKE OFFSHORE IS DOING BETTER BUT MODERATELY HIGHER ON THE HANG SENG, 25,000 THERE RIGHT NOW. DAVID: BOTTOM OF THE SCREEN, TECHNICAL DOWN OVER 1%. 200 DAY MOVING AVERAGE IS A LEVEL WE WERE TESTING OVER A FEW RECENT SESSIONS AND WE NOW HAVE, AS I SPEAK, WE COULD END TODAY HIGHER, ABOVE THAT LEVEL. WE ARE BELOW THE 200 DAY MOVING AVERAGE, WE HAVE TESTED IT SEVERAL TIMES OVER THE PAST COUPLE OF MONTHS AND SINCE THEN HAVE MANAGED TO BREAK BACK ABOVE IT. SOMETHING TO WATCH ON THE TECHNICAL SIDE OF THINGS. LET'S A GOOD THE AGENDA TODAY COME APART FROM TECHNICALS, KEY DATA COMING THROUGH TODAY. THE TECHNICALS, THE 100 DAY MOVING AVERAGE ON THE HANG SENG TECH TO THE UPSIDE AND PERHAPS NOT AS CONSEQUENTIAL GIVEN THE NEWS OVER THE LAST COUPLE OF MINUTES OR SO. JOBLESS NUMBERS ARE COMING THROUGH IN MACAU. YVONNE: AND THE SPEECH FROM PRESIDENT TRUMP HE HAS ACCUSED CHINA OF TRYING TO INTERFERE WITH THE 2020 U.S. PRESIDENTIAL ELECTION TO ASSIST THE WIN OF JOE BIDEN. DOES THAT ADD A LITTLE MORE HEADWINDS TO THIS MARKET WITH TAIWAN TECH SELLING OFF AND MAYBE SIGNS OF FRESH TENSION BETWEEN THE U.S. AND CHINA. THAT COMES BACK IN A BIGGER WAY AS WE COUNT DOWN TO PRESIDENT XI HEADING TO D.C., AND HAVE TO WONDER IF THAT IS IN QUESTION NOW AFTER THE PRESIDENT'S ADDRESS IF HE IS STILL LOOKING TO GO TO D.C. THE TARIFF STILL REMAIN IN PLACE BETWEEN THE U.S. AND CHINA SO IT'S STILL QUITE UNEASY WHERE WE ARE IN THIS RELATIONSHIP. THE WORLD AI CONFERENCE, HSTECH RALLY COUNT -- SOME MACAU VISITOR ARRIVALS COMING THROUGH AS WELL. DAVID: I WOULD IMAGINE, BACK TO THE CONVERSATION TODAY, GIVEN WHAT THE U.S. PRESIDENT JUST SAID A FEW MINUTES AGO. MINMIN LOW COME OUR CHINA CORRESPONDENT IS IN SHANGHAI FOR US FOR OUR COVERAGE FOR THE WORLD AI CONFERENCE. SET THE STAGE FOR US HERE. MINMIN: YOU REALLY FEEL LIKE YOU'RE IN THE MIDDLE OF SOMETHING IMPORTANT, BECAUSE PRESIDENT XI IS IN TOWN AND FOR THE FIRST TIME IN NINE YEARS, PRESIDENT XI IS GRACING THE WORLD AI CONFERENCE. IN THE LAST TWO YEARS IT WAS PREMIER LEAGUE WHO ATTENDED. IT SHOWS THE PRIORITY OF AI DEVELOPMENT AND THEY WANT TO USE THIS CONFERENCE AS A GLOBAL BENCHMARK TO REALLY SET THE TONE FOR GLOBAL AI TRENDS. SO THERE ARE THOUSANDS OF PEOPLE ATTENDING 19 FROM INDUSTRY REPRESENTATIVES TO VENTURE CAPITALISTS AND EVEN GOVERNMENT OFFICIALS AS WELL. YOU HAVE THE CAMBODIAN PRIME MINISTER, THE THAI PRIME MINISTER ALSO ATTENDING THE CONFERENCE IN LAST NIGHT, SOME 29 COUNTRIES HAD SIGNED ON TO BE PART OF THIS WORLD AI COOPERATION AND IS ASIAN AND THAT GIVES CHINA YET ANOTHER PLATFORM TO INFLUENCE RULE SETTING WHEN IT COMES TO GLOBAL AI. YVONNE: IT WILL BE INTERESTING TO HEAR WHAT HE HAS TO SAY. TELL US ABOUT THE NEW TECH, WHAT IS BEING SHOWCASED THIS YEAR AND WHAT REALLY STOOD OUT TO YOU? MINMIN: I WENT TO THE VENUE YESTERDAY, IT WAS NOT YET OPEN TO THE PUBLIC SO PARTICIPANTS ARE THE COMPANIES WERE STILL SETTING THINGS UP. BUT IT WAS INTERESTING, THERE WERE AT LEAST 300 MOBILE PRODUCT DEBUTS THAT WILL BE TAKING PLACE , SO JUST TO GIVE YOU A TEASER, THERE IS EXPECTED TO BE REVEALED A THIRD-GENERATION OF THE AI MODEL, HUAWEI EXPECTED TO REVEAL A NEW COMPUTING PLATFORM AND JOINING ME IS A MEDICAL CEO WHO WILL BE UNVEILING A NEW PRODUCT. I KNEW YOU WILL BE UNVEILING A NEW PRODUCT. TELL US MORE ABOUT THAT. >> THIS YEAR, BASED ON OUR OWN MODEL, WE RELEASED A NEW VERSION FOR SPECIAL INTELLIGENCE, WE ARE GOING TO BENEFIT , WE ALSO HAVE A NEW MODEL LIKE REAL ESTATE AND SOMETHING ELSE. ALSO ROBOTIC TRAINING, AND WE HOPE THE NEW MODEL CAN BENEFIT MORE AND MORE INDUSTRY. >> SO THIS OPENS UP NEW REVENUE DRIVERS FOR YOU, GOING INTO VIDEO GENERATION THAT CAN BENEFIT THE FILM INDUSTRY. IT IS QUITE DIFFERENT FROM YOUR ORIGINAL IDEA WHICH WAS THIS VIDEO'S FACIAL RECOGNITION TECHNOLOGY THAT WAS TARGETING INTERIOR DESIGNERS, PROPERTY DEVELOPERS. HOW MUCH IS WITH THE ORIGINAL SOFTWARE GIVEN THE PROPERTY SLUMP WE ARE SEEING? >> IT IMPROVES OUR NEW AI MODEL, THIS MODEL IS BASED ON TRADING DATA THAT WILL BE ACCUMULATED AND THIS KIND OF DATA CAN GENERATE SPACE. IT CAN BENEFIT DIFFERENT AREAS LIKE FILMING, ROBOTIC TRAINING, EVERYTHING START FROM DATA AND GOING TO THE MODEL TO AGENT. SO NOW THE AGENT CAN BENEFIT MANY DIFFERENT DOMAINS. SO WE CAN BUILD MORE AND MORE DOMAINS. EVERYTHING IS STICKING WITH OUR ORIGINAL PRODUCT. >> TELL ME ABOUT SOME OF THE NEW DOMAINS YOU ARE PURSUING WHEN IT COMES TO PHYSICAL AI ROBOTICS TRAINING. WHICH COMPANIES AND MANUFACTURERS ARE YOU WORKING WITH? >> WE WORK WITH MANY CUSTOMERS, WE USE THEM TO COLLECT MORE DATA IN OUR SPACE FOR TRAINING AND WE WE HAVE CUSTOMERS LIKE HYUNDAI WHO USE OUR DATA MODELS, AND TO HELP FILMMAKERS BEFORE THEY USE THE PHYSICAL VIRTUAL FILMING, NOW THEY CAN SCAN THE WHOLE PLACE AND PUT IT IN THE VIRTUAL WORLD. AND THEY CAN GENERATE THE FILM MUCH EASIER THAN BEFORE. >> DO EXPECT THESE NEW DOMAINS TO EVENTUALLY SURPASS YOUR ORIGINAL PRODUCT WHICH WAS MEANT FOR PROPERTY DEVELOPERS AND INTERIOR DESIGNERS? >> DEFINITELY. WE BELIEVE IT'S A FRAMEWORK FOR DATA GENERATION, AND THE DATA GENERATION CAN BENEFIT 3D SPACE GENERATION MODELS. THAT IS A PRODUCT FOR THE NEXT GENERATION, TO HELP US GENERATE THE SPACE AND PEOPLE USE THE TOOLS TO GENERATE 3D SPACE. SO WE CAN BENEFIT MORE AND MORE DOMAINS. BEFORE THE DESIGNER USED A LOT OF TIME DRAWING THE IMAGINE SPACE. NOWADAYS AND IN THE FUTURE IT'S CREATED GENERALLY BY AI AND IT IS MORE AND MORE CLOSE TO OUR PHYSICAL WORLD. BEFORE, NO MATTER HOW HARD YOU WORK, IT'S STILL A LITTLE DIFFERENT FROM THE REAL WORLD. NOW AFTER YOU HAVE MORE MORE REAL-LIFE DATA, IT'S CLOSER AND CLOSER TO THE PHYSICAL WORLD. MINMIN: THANKS SO MUCH, VERY EXCITING NEW TECHNOLOGY THAT CAN MIMIC THE CREATION OF VIRTUAL WORLDS THAT RESEMBLE REALITY. THAT WAS A COFOUNDER AND CHAIRMAN OF MANTICORE TECH. DAVID: FANTASTIC, MINMIN LOW OUR CHINA CORRESPONDENT THERE IN SHANGHAI. ON THAT NOTE, WE ARE WAITING FOR THE CHINESE PRESIDENT XI JINPING TO DELIVER A KEYNOTE ADDRESS AT THE OPENING CEREMONY OF THE WORLD AI CONFERENCE IN SHANGHAI. YOU ARE LOOKING AT LIVE PICTURES RIGHT NOW. WE WILL BRING THAT SPEECH TO YOU ONCE IT BEGINS IN A COUPLE OF MINUTES. CERTAINLY THE PLOT LINES AROUND THE GEOPOLITICAL PARADIGM HAVE SHIFTED SUBSTANTIALLY IN THE LAST 40 MINUTES, GIVEN THE ACCUSATIONS COMING THROUGHOUT OF THE WHITE HOUSE. WE HAVE LOTS MORE AHEAD ON BOTH THOSE TWO STORIES. THIS IS "THE CHINA SHOW." ♪ >> THE PEOPLE'S REPUBLIC OF CHINA CARRIED OUT WHAT IS TO BELIEVE -- BELIEVED TO BE THE LARGEST COMPROMISE OF ELECTION DATA IN HISTORY, RESULTING IN CHINA'S ACQUISITION OF 220 MILLION U.S. VOTER FILES. THAT INFORMATION INCLUDES NAMES, ADDRESSES, PHONE NUMBERS, POLITICAL PARTY PREFERENCES, AND OTHER SENSITIVE DATA THAT WOULD BE NEEDED TO REGISTER TO VOTE. DAVID: THAT WAS PRESIDENT TRUMP SPEAKING AT THE WHITE HOUSE, ACCUSING CHINA OF MEDDLING IN THE 20 ELECTIONS. HE ANNOUNCED THE IMMEDIATE DECLASSIFICATION AND RELEASE OF CRITICAL INTELLIGENCE REVEALING SOME SHOCKING VULNERABILITIES IN ALEXION INFRASTRUCTURE. HE SAYS DOCUMENTS WILL SHOW THAT OVER YEARS STARTING DURING THE 2020 ELECTIONS, CHINA CARRIED OUT WHAT IS BELIEVED TO BE THE LARGEST COMPROMISE OF ELECTION DATA IN HISTORY, RESULTING IN CHINA'S ACQUISITION OF 220 MILLION U.S. VOTER FILES ACCORDING TO THE U.S. PRESIDENT. LET'S BRING IN THE FOUNDER AND PRESIDENT OF THE CENTER FOR CHINA AND GLOBALIZATION. HE JOINS US NOW. WE ARE STARTING TO PIECE TOGETHER THE STORY WHICH IS DEVELOPING AS WE SPEAK. YOUR INITIAL REACTION? >> WELL, I THINK THAT PRESIDENT TRUMP IS LARGELY PUSHING FOR HIS BILL. HE WANTS HIS NEW BILL TO BE PASSED. HE'S REALLY DIGGING FILES AND FINDING OLD STORIES. BUT I THINK THAT FIRST OF ALL, I THINK THAT CHINA MEDDLING IN THE 2020 ELECTION, THAT IS ALREADY A FACT. ALREADY PAST SIX YEARS AGO. THE 2021 U.S. GOVERNMENT AGENCY SAID CHINA WAS UNINVOLVED IN ANY MEDDLING. THAT'S NUMBER ONE. NUMBER TWO, I DON'T THINK THERE IS AN INCENTIVE FOR CHINA TO DO THAT. THERE'S NO CLEAR CANDIDATE THAT IS PRO-CHINA, THAT WANTS TO HAVE A DIFFERENT ANGLE. YOU SEE ALL THE CANDIDATES FROM THE U.S. ELECTIONS, THERE'S NOBODY THAT'S REALLY SHOWN A BIG PREFERENCE FOR CHINA THAT CHINA WANTS TO SUPPORT. THERE'S NO INCENTIVE FOR CHINA TO DO THAT. NUMBER THREE, I THINK THAT CHINA PRACTICED ON THAT INTERVENTION ON THE DOMESTIC ISSUES. CHINA DOESN'T MEDDLE IN OTHER COUNTRIES ISSUES AS WELL. I UNDERSTAND. CHINA AND THE U.S. ARE NOW IN A DELICATE AND IMPORTANT MOMENT. PRESIDENT TRUMP IS EXPECTING PRESIDENT XI TO VISIT THE U.S. IN SEPTEMBER. BOTH SIDES SHOULD AVOID THIS. YVONNE: TO WHAT EXTENT DO YOU THINK THAT THIS DOES CHANGE WHAT YOU SAID IS A SHAKY RELATIONSHIP NOW BETWEEN THE U.S. AND CHINA . HENRY: CERTAINLY DOESN'T HELP THE BILATERAL RELATIONS. WE SHOULD REFRAIN FROM ATTACKING EACH OTHER AND TEASING EACH OTHER. I KNOW CHINA HAS BEEN REALLY DOING RELATIVELY WELL. RECENTLY COME OUT U.S. POLLS SHOWING THAT CHINA IS MORE FAVORABLE IN MANY COUNTRIES NOW COMPARED WITH U.S. CHINA AT THIS MOMENT IS HAVING A WORLD AI SUMMIT. THEY ESTABLISHED THE WORLD ARTIFICIAL INTELLIGENCE COOPERATES ASIAN -- COOPERATION ORGANIZATION. PRESIDENT TRUMP'S SPEECH GETTING ATTENTION AS WELL. I THINK PRESIDENT TRUMP, I UNDERSTAND HE WANTS TO PASS THIS BILL. IT'S VERY IMPORTANT FOR HIM AND FOR HIS REPUBLICAN EXPERIENCE. THAT HE HAS LONG BLAMED THE REGISTRATION FOR THE ELECTIONS. NAMES AND FAKE NAMES AND ALL THOSE ISSUES. SO HE WANTS TO USE NATIONAL TELEVISION ADDRESS REALLY TO PUSH HIS BILL THROUGH. THE HOUSE IN CONGRESS. SO I UNDERSTAND THAT. THE REAL ISSUE IS SCAPEGOATING CHINA. FOR THOSE UNSUBSTANTIATED RESULTS. WE HOPE TO SEE IF THERE'S ANY HARD EVIDENCE OR ANYTHING LIKE THAT. I DO THINK, GIVEN THAT U.S. AND CHINA IS SO IMPORTANT, WE JUST HAD PRESIDENT TRUMP VISIT CHINA AND TWO MONTHS AGO. WE ARE INSPECTING PRESIDENT XI TO VISIT WASHINGTON IN SEPTEMBER AND WELCOME TRUMP AGAIN IN NOVEMBER. FOR THE APEC SUMMIT. ALSO ATTENDING THE G 20 SUMMIT IN MIAMI IN DECEMBER. REALLY BUILDS UP THE GOODWILL MOMENTUM THAT WE ARE STARTING TO ACCUSE EACH OTHER. PARTICULARLY AT THIS TIME. I THINK IT'S NOT NICE TO DO THAT. YVONNE: YEAH. DAVID: TRIGGER POINT, THERE COULD BE A DOMESTIC AGENDA. THE ADDRESS WAS ADDRESSED TO A DOMESTIC AUDIENCE. DO YOU THINK CHINA WILL IN FACT NOT RESPOND TO THIS? WHAT EXPECTATION SHOULD WE HAVE IN TERMS OF WAITING FOR A CHINESE RESPONSE? HENRY: I'M NOT A GOVERNMENT OFFICIAL. I THINK THERE IS SOME ACCUSATION FROM THE PAST. THE CHINESE SPOKESPERSON HAS RESPONDED ALREADY. SO THERE'S ALSO THE RESPONSE IN THE PAST. I'M SURE THERE COULD BE ANOTHER RESPONSE FROM AUTHORITIES IN CHINA AGAIN. BASICALLY WHAT I WANT TO SAY AS AN OBSERVER OF CHINA U.S. RELATIONS, ALSO AGAIN FOR THE PERSON WHO CARES ABOUT THE CHINA U.S. RELATIONS, I THINK WE HAD THIS VERY GOOD MOMENTUM. SINCE PRESIDENT TRUMP'S VISIT RECENTLY. AND WE ARE EXPECTING A HIGH LEVEL VISIT THIS YEAR. SO I UNDERSTAND, TRUMP SWORE IN IRAN AND MANY OTHER THINGS. THERE'S A LOT OF THINGS HAPPENING. U.S. AND CHINA SHOULD WORK TOGETHER FOR THOSE BIGGER ISSUES , GLOBAL ISSUES LIKE IRAN WAR, UKRAINE MORE, AND MANY OTHER ISSUES. WE SHOULD HAVE A BIG INTEREST, RATHER THAN POINT AT EACH OTHER. YVONNE: WE WILL LEAVE IT THERE. THANK YOU SO MUCH. IN TERMS OF MARKETS, WE CONTINUE TO TRACK THE SELLOFF. AI PLAYS ARE SEEING A BIT OF PRESSURE. LOWER BY CLOSE THAN -- TO 13%. MINIMAX DOWN SEVEN. THE SELLOFF IN ASIA CONTINUES AS THE FRESH WAVE OF CHIP SELLING THAT WE SAW OVERNIGHT. THE INDEX DOWN. THE TSMC RESULTS WERE NOT ENOUGH TO SATISFY INVESTORS DESPITE DECENT RESULTS THERE. SK HYNIX ADR FELL 14%. I BELIEVE THIS IS SHANGHAI. ABOUT TO HEAR POSSIBLY FROM THE PRESIDENT. DAVID: AS WE AWAIT THE CHINESE PRESIDENT XI JINPING. LOCAL MEDIA CONFIRMED AND SAID HE IS SET TO SPEAK AT THE AI SUMMIT TAKING PLACE IN SHANGHAI. JUST TO GET YOU GUYS UPDATED. THIS HAS TAKEN PLACE AGAINST THE BACKDROP OF THAT. SECOND OF COURSE, THE NEW PLOT TWIST COMING OUT OF THE WHITE HOUSE IN THE LAST HOUR OR SO. WHETHER OR NOT THE LATTER WILL BE ADDRESSED AT THE SPEECH IS YET TO BE SEEN. THE AGENDA OF THE SPEECH AND CONFERENCE ITSELF IS REALLY AI TECHNOLOGY AND EVERYTHING IN BETWEEN. MORE COMING THROUGH. THE FOREIGN MINISTER ALREADY ENVISIONED IT. STAY WITH US. ♪ YVONNE: WELCOME BACK, HERE'S A LOOK AT THE CSI 300, IT'S AN INTERESTING CHINA SHOW TODAY. QUITE RARELY WE HAVE TWO PRESIDENT SPEAKING WITHIN HOURS. WE JUST HEARD FROM PRESIDENT TRUMP IN THAT PRIME TIME ADDRESS. IT WAS QUITE AN ASTOUNDING SPEECH, ACCUSING CHINA OF MEDDLING IN THE 2020 U.S. ELECTIONS. NOW , PRESIDENTXI SPEAKING IN SHANGHAI. DAVID: IT'S WORTH POINTING OUT, THERE HE IS, THE CHINESE PRESIDENT IS SAID TO COME OUT ON STAGE TO DELIVER THE SPEECH. IT'S WORTH POINTING OUT THAT THIS IS NOT SCHEDULED IN RESPONSE OF COURSE TO WHAT THE U.S. PRESIDENT JUST DID, WHETHER THAT IS ADDRESSED DIRECTLY OR INDIRECTLY IS TO BE SEEN, BUT IT'S A SEPARATE AGENDA AS FAR AS AI IS CONCERNED. IT JUST COMPLICATES WHAT COULD BE THE TONE AND TEXTURE OF THAT SPEECH, BUT RELATED TO THIS IS THE AI MARKETS AGAINST THE BACKDROP OF A CHIP SELLOFF, GAINING A LOT OF MOMENTUM. WE SAW 4% DRAWDOWN WITH THE PHILLY INDEX OVERNIGHT. WE ARE CLOSING IN ON A TECHNICAL BEAR MARKET BUT WE WERE DOWN CLOSE TO 20%, JAPAN IS SET FOR A CORRECTION, SOME STOCKS DOWN OVER 50% FROM THE RECENT PEAK. IF CAREER WAS OPEN THAT WOULD'VE ADDED TO THE MIX TODAY. YVONNE: YESTERDAY THEY ALSO TALKED ABOUT HALTING THE NEW LISTINGS OF THE SINGLE STOCK LEVERAGED BTP'S THAT CURB MARKET VOLATILITY. TIGHTER RESTRICTIONS IN SOME WAYS TO -- THE RETAIL SECTOR CERTAINLY HAS GONE FROM A ROLLER COASTER OF EMOTIONS LAST COUPLE OF WEEKS, JUST GIVEN THE MOMENTUM STORY BEHIND US FOR ASIA, GIVEN THERE'S A LOT OF LINGERING QUESTIONS. TSMC IN TERMS OF THOSE EARNINGS TO DELIVER. THERE WAS NOT ENOUGH TO BOOST SENTIMENT SO CERTAINLY THAT IS ONE TELLING SIGN OF WHERE WE GO FROM HERE. DAVID: LET'S HAVE A LOOK AT WHERE WE ARE, TRACKING THE ADRS, DOUBLE-DIGIT DECLINES ACROSS SOME OF THE OTHER AI PLACE AS WELL. OIL PRICES VERY MUCH IN FOCUS STILL, GIVEN THE MONTH WE'VE HAD AS FAR AS OIL IS CONCERNED. WE HAD BEEN HOVERING AROUND 84 OR 85 IN THE LAST 72 HOURS, CLOSER TO 85-90 THAN WE ARE TO 70 JUST THREE WEEKS AGO. THIS IS ADDING TO THE PREMIUM BEING BUILT INTO THE MARKETS AND RISK APPETITE BEING SEEN FROM IT. I BELIEVE WERE JUST WAITING FOR THE CHINESE PRESIDENT TO BEGIN HIS SPEECH IN SHANGHAI. LET'S LISTEN INTO THE CHINESE PRESIDENT, LIVE IN SHANGHAI. >> DISTINGUISHED COLLEAGUES, LADIES AND GENTLEMEN, FRIENDS. 70 YEARS AGO, A GROUP OF YOUNG SCHOLARS PROPOSED A CONCEPT OF ARTIFICIAL INTELLIGENCE FOR THE FIRST TIME. AT THE DARTMOUTH WORKSHOP IN NEW HAMPSHIRE OF THE UNITED STATES. IN THE SUBSEQUENT 70 YEARS, AI SCIENTISTS FROM AROUND THE WORLD VENTURED INTO THIS UNKNOWN TERRITORY, FORGED AHEAD THROUGH TWISTS AND TURNS, AND MADE BREAKTHROUGHS WITH PRECISION AND HARD WORK. SEVEN DECADES LATER, TODAY, AMID THE NEW WAVE OF AI DEVELOPMENT, WE ARE GATHERING TO DISCUSS HOW TO PROMOTE AI GLOBALLY FOR THE POSITIVE, FOR GOOD, AND FOR HUMANITY. ALL THIS MAKES OUR MEETING HIGHLY IMPORTANT. ON BEHALF OF THE CHINESE GOVERNMENT AND PEOPLE, I WOULD LIKE TO EXTEND A WARM WELCOME TO YOU ALL. IN THE COURSE OF HISTORY, THE INVENTION OF THE STEAM ENGINE ERODED INDUSTRIAL CIVILIZATION. THE RIDE SPREAD ACCESS TO ELECTRICITY BRIGHTENED UP MODERN SOCIETY. AND THE BIRTH OF THE INTERNET BROUGHT THE ENTIRE WORLD TOGETHER. EACH OF THESE TECHNOLOGICAL REVOLUTIONS HAS PROFOUNDLY RESHAPED OUR WAY OF WORK AND LIFE. AND ENABLED A GIANT LEAP IN ECONOMIC AND SOCIAL DEVELOPMENT. TODAY, MAJOR CHANGES ARE ACCELERATING ACROSS THE WORLD. THE NEW ROUND OF TECHNOLOGICAL REVOLUTION AND TRANSFORMATION IS ADVANCING AT A PAST -- FASTER PACE, AND THE WORLD HAS ENTERED AN UNPRECEDENTED PERIOD OF ACTIVE INNOVATION ON AI TECHNOLOGIES. INTELLIGENT CONNECTIVITY, HUMAN-MACHINE COLLABORATION, CROSS SECTOR INTEGRATION, JOINT CREATION AND OTHER INTELLIGENCE ACTIVITIES ARE UNLEASHING IN NORMA'S POWER. ALL THIS CARRIES WITH IT GREAT OPPORTUNITIES AS WELL AS CHALLENGES TO GOVERNANCE. WE HUMAN BEINGS MUST ANSWER THE QUESTIONS POSED BY OUR TIMES. HOW TO GET ALONG WITH THINKING MACHINES. HOW TO ENSURE SECURITY WHEN ALGORITHM IS PART OF DECISION-MAKING. HOW TO TACKLED ETHICAL CHALLENGES BY TECHNOLOGIES THROUGH ADAPTIVE CURRENTS. HOW TO REALIZE AI WHEN THE DIVIDE KEEPS WIDENING. THESE QUESTIONS DEMAND SERIOUS CONSIDERATION AND REAL ANSWERS FROM THE HOLE IN THE NATIONAL COMMUNITY. IN CHINA'S VIEW, ALL COUNTRIES SHOULD TAKE AN APPROACH TO DEVELOP AI TO ENSURE THAT AI IS AN IMPORTANT DRIVER FOR SHARED PROSPERITY. WE SHOULD JOIN HANDS TO BUILD A JUST AND EQUITABLE SYSTEM FOR AI GOVERNANCE. SO TO THIS END, I WISH TO SHARE FOUR OBSERVATIONS. FIRST, WE SHOULD ADHERE TO THE PRINCIPLE OF OPENNESS , IS A NEW ENGINE EXPLODING IN GROWTH AND ACCELERATING THE SHIFT OF GROWTH DRIVERS, AI IS MOVING FROM THE DIGITAL WORLD INTO THE PHYSICAL WORLD. WE SHOULD SEIZE THIS RARE HISTORIC OPPORTUNITY TO ENCOURAGE OPEN SOURCE, OPENNESS, COLLABORATION AND SHARING. WE SHOULD FACILITATE TECHNOLOGICAL INNOVATION, INDUSTRIAL DEVELOPMENT, AND SCENARIO-BASED APPLICATION OF AI. WE SHOULD MAKE COORDINATED ADVANCES IN THE TRANSFORMATION OF TRADITIONAL INDUSTRIES THROUGH CULTIVATION AND GROWTH OF EMERGING MARKETS, AND FORWARD-LOOKING PLANNING FOR THE FUTURE, SO THAT ALL SECTORS AND BUSINESSES CAN BENEFIT FROM AI. SECOND, WE SHOULD STRENGTHEN RISK AWARENESS AND ENSURE THAT AI IS SECURE AND CONTROLLABLE. AI SHOULD BE A TRUSTED TOOL FOR HUMANITY. WE SHOULD TAKE SERIOUSLY THE VARIOUS TYPES OF INHERENT AND SECONDARY RISKS THAT AI MAY TRIGGER . WE SHOULD PUT IN PLACE FLOORS AND REGULATIONS, TECHNOLOGICAL MONITORING, EARLY WARNING AND EMERGENCY RESPONSE SYSTEMS. IN ORDER TO STRENGTHEN SECURITY, PREVENT ABUSES, AND ENSURE THAT AI IS ALWAYS UNDER HUMAN CONTROL. IN THE MEANTIME, WE SHOULD JOINTLY OPPOSE OVERSTRETCHING THE NATIONAL SECURITY CONCEPT IN VIEW OF AI. OR PLACING SECURITY OVER THAT OF OTHERS. THIRD, WE SHOULD ENCOURAGE INCLUSIVENESS AND PROMOTE MUTUAL LEARNING BETWEEN CIVILIZATIONS. AI DEVELOPMENT SHOULD NOT ERODE OR UNDERLINE THE DIVERSITY OF CIVILIZATIONS ARE THE UNIQUENESS OF CULTURES OF DIFFERENT COUNTRIES. WE MUST SHAPE THE VALUES OF AI WITH HUMANITIES COMMON VALUES AND MAKE GOOD USE OF AI TECHNOLOGIES TO INCREASE UNDERSTANDING, TOLERANCE, EXCHANGES AND SHARING AMONG ALL CIVILIZATIONS. WE SHOULD TEND TO THESE CIVILIZATIONS WITH GREAT CARE TO ENSURE THE BEAUTY OF EACH CIVILIZATION IS APPRECIATED AND SHARED. FOURTH, WE SHOULD ADVOCATE SOLIDARITY AND BLUE -- IMPROVED GLOBAL GOVERNANCE. AI IS SURE TO BE A VALUABLE ASSET WITH THE PRACTICE THROUGH MULTILATERALISM TO RECOGNIZE IMPORTANT ROLE OF THE UNITED NATIONS. WE SHOULD ENHANCE ALIGNMENT AND COORDINATION OF AI DEVELOPMENT STRATEGIES, GOVERNANCE, RULES, AND TECHNICAL ADVANCES, TO FORM A CONSENSUS BASED GLOBAL COMPETENCY FRAMEWORK AT AN EARLY DATE, TO MAKE THIS FRONTIER TECHNOLOGY BETTER BENEFIT HUMANITY. WE MUST CARRY OUT EXTENSIVE INTERNATIONAL COOPERATION AND HELP GLOBAL SOUTH COUNTRIES WITH CAPACITY TO BRIDGE THE AIN DIGITAL DIVIDES FOR BOTH SUSTAINABLE DEVELOPMENT AND PREVENT CREATING HISTORICAL INJUSTICE IN AI. LADIES AND GENTLEMEN, FRIENDS, THIS YEAR MARKS THE START OF CHINA'S 50TH FIVE-YEAR PLAN. TO CHINA'S ECONOMIC AND SOCIAL DEVELOPMENT FOR THE NEXT FIVE YEARS, TO PROVIDE IMMENSE OPPORTUNITIES FOR THE INTERNATIONAL COMMUNITY. IN RECENT YEARS, CHINA HAS EMBRACED AI WITH OPEN ARMS. WE HAVE PROMOTED INTERACTION BETWEEN AN EFFICIENT MARKET AND A WELL FUNCTIONING GOVERNMENT, STRENGTHENED AI REGULATION, ACTIVELY ADVANCED AI TASK INITIATIVE, AND BUILT A HEALTHY ECOSYSTEM FOR ALL ENTITIES TO THRIVE IN TOGETHER. THE SMART ECONOMY IS WORTH AT LEAST ONE TRILLION RENMINBI. SMART DEVICES TRULY IMPROVE PEOPLE'S LIVELIHOOD. INTELLIGENCE MANUFACTURING IN CHINA HAS BECOME ANOTHER SHINING HALLMARK OF CHINESE MODERNIZATION. AT THE SAME TIME, CHINA LAYS GREAT EMPHASIS ON SAFETY AND SECURITY IN AI. WITH A DEEP UNDERSTANDING OF THE TRENDS IN AI DEVELOPMENT, WE ARE CONTINUOUSLY IMPROVING LAWS AND REGULATIONS, POLICIES, APPLICATION NORMS TO MAKE SURE THAT AI IS SAFE, SECURE, CONTROLLABLE AND THAT THE SPEED OF AI GALLOPS WITH SPEED AND STABILITY. AS A RESPONSIBLE MAJOR COUNTRY, CHINA IS ALWAYS COMMITTED TO PROVIDING INTERNATIONAL PUBLIC GOODS RELATING TO AI. SINCE I PROPOSED THE GLOBAL AI GOVERNANCE INITIATIVE, CHINA HAS PROMOTED THE ADOPTION OF THE GENERAL ASSEMBLY RESOLUTION ON ENHANCING INTERNATIONAL COOPERATION ON CAPACITY BUILDING OF ARTIFICIAL INTELLIGENCE CONSENSUS. PUBLISHED THE AI CAPACITY BUILDING ACTION PLAN FOR GOOD FOR ALL. ANNOUNCED THE AI INTERNATIONAL COOPERATION INITIATIVE AND ADVOCATED FOR ESTABLISHING THE WORLD'S ARTIFICIAL INTELLIGENCE ORGANIZATION. CHINA HAS BEEN CONTRIBUTING STEADILY TO THE GLOBAL AI GOVERNANCE. WE OFTEN SAY IN CHINA, A SINGLE STRING CANNOT MAKEMUSIC AND A SINGLE TREE DOES NOT MAKE A FOREST. AI DEVELOPMENT SHOULD NOT BE A SOLO PERFORMANCE BY A SINGLE COUNTRY BUT A SYMPHONY OF INTERNATIONAL COOPERATION. THANKS TO OUR JOINT EFFORTS , IT HAS COME INTO BEING IN SHANGHAI. OUR VISION FROM ONE YEAR AGO IS NOW A REALITY. THIS IS A MAJOR MOVE BY CHINA TO ONSET THE CALL OF THE GLOBAL SOUTH AND UNITE THE INTERNATIONAL COMMUNITY TOGETHER TO PROMOTE VIGOROUSLY AI DEVELOPMENT. IT WILL BE AN IMPORTANT MILESTONE IN THE HISTORY OF AI DEVELOPMENT. TO FURTHER SUPPORT GLOBAL AI DEVELOPMENT AND TO ADVANCE GLOBAL AI CAPACITY BUILDING, I HEREBY ANNOUNCE THAT IN THE NEXT FIVE YEARS, CHINA WILL PROVIDE DEVELOPING COUNTRIES WITH 5000 OPPORTUNITIES IN AI TRAINING AND SEMINAR PROGRAMS. CHINA WILL DEVELOP INTERNATIONAL AI APPLICATION COOPERATION CENTERS WITH ASEAN, THE LEAGUE OF ARAB STATES, THE AFRICAN UNION, COMMUNITY OF LATIN AMERICA, CARIBBEAN STATES, THE SHANGHAI COOPERATION, AND BRICKS. AND WE WILL ENABLE 30 COUNTRIES TO USE THE AI POWERED NATURAL LOGICAL SYSTEM TO SAFEGUARD HOMES AROUND THE WORLD. LADIES AND GENTLEMEN, FRIENDS. AS ANCIENT CHINESE OBSERVED, A MAN OF WISDOM ADAPT TO CHANGES. A MAN OF KNOWLEDGE AXON CIRCUMSTANCES. WITH AI ADVANCING AT A STAGGERING SPEED, WE MUST ENSURE ITS DEVELOPMENT IS FOR THE POSITIVE, FOR GOOD, AND FOR HUMANITY. THEY MUST MAKE OVERSIGHT ON GOVERNANCE, PRECISE AND EFFECTIVE. CONSTANTLY REFINING MEASURES TO FORESTALL LOSS OF CONTROL. WE SHOULD ALWAYS GUIDE AI DEVELOPMENT WITH HUMAN WISDOM AND INTERNATIONAL CONSENSUS. AI CAN TRULY BECOME ALIVE FORCE THAT INCREASES THE WELL-BEING OF HUMANITY AND ADVANCES HUMAN CIVILIZATION. CHINA IS READY TO BE MORE OPEN, TAKE MORE PRACTICAL ACTIONS AND RESUME A MORE VISIONARY PERSPECTIVE. WE ARE READY TO WORK WITH ALL PARTIES TO SEIZE THE OPPORTUNITIES OF AI DEVELOPMENT AND MEET THE CHALLENGES AND JOIN HANDS TO CREATE A BRIGHTER FUTURE FOR HUMANITY. THANK YOU. YVONNE: THAT WAS THE CHINESE PRESIDENT SPEAKING IN SHANGHAI AT THE WORLD AI CONFERENCE. CERTAINLY DID SPEAK FOR 15 MINUTES OR SO. REALLY JUST HIGHLIGHTING THIS PLATFORM TO TALK ABOUT THE OPENNESS THAT HE WANTS TO SEE WHEN IT COMES TO AI AND ITS ADOPTIONS AND THE RISE OF CHINA'S AI MODELS. REALLY GIVING SOME BRAGGING RICE FOR CHINA HERE. JUST THE INNOVATION THAT HAS COME THROUGH HERE. OVERNIGHT, THEY WERE REPORTING ABOUT MOONSHOT AND ITS NEW LAUNCH OF ITS KIDNEY MODEL AND THE LIKE. TALKING ABOUT THE CSM T LISTING SET TO DEBUT SOON AS WELL. CERTAINLY TALKING MORE ABOUT THE OPENNESS OF THIS AS WELL. SINGING THAT AI DEVELOPMENT STUDENT BE A SOLO SHOW BY ANY SINGLE NATION. ALSO TALKING ABOUT, WHEN IT COMES TO REACHING A CONSENSUS ON A GLOBAL AI GOVERNANCE FRAMEWORK. THIS IS WHAT HE WAS TRYING TO DO HERE AT THIS SUMMIT. TO CREATE THIS WORLD AI COOPERATION ORGANIZATION WITH 30 OTHER COUNTRIES. I WANT TO BRING MINMIN LOW IN FOR US IN SHANGHAI. JUST GIVE US A RECAP ON WHAT WE HEARD FROM THE PRESIDENT JUST NOW. >> HE TOOK FOR 15 MINUTES. HE COVERED AI GOVERNANCE. AS AI CONTINUES TO DEVELOPMENT, HE SAYS THERE ARE KEY QUESTIONS THAT WE NEED TO CONSIDER. HOW DO HUMANS GET ALONG WITH MACHINES? HOW DO YOU SAFEGUARD SECURITY WHEN ALGORITHMS ARE MAKING THE DECISIONS? CHINA IS ADVOCATING FOR A MULTILATERAL APPROACH TO AI GOVERNMENTS HERE. PUTTING FORWARD THIS GLOBAL AI INITIATIVE. HEAVILY PROMOTING THAT AND TALKING ABOUT HOW THE FRUITS OF AI NEEDS TO BE SHARED WITH THE REST OF THE WORLD. THE WORLD NEEDS TO REACH THE DIGITAL DIVIDE AND AI SHOULD NOT BECOME A TECH MONOPOLY. THIS IS PUSHING AGAINST THE IDEA OF THOSE ASK MORE CONTROLS FROM THE U.S.. THE U.S. ALSO URGING AIRLINES AND FRIENDS LIKE JAPAN AND THE NETHERLANDS TO MATCH THE U.S. EXPORT CONTROLS. CHINA IS ADVOCATING THIS IDEA THAT THERE SHOULD NOT BE IN AI IRON CURTAIN. SOME 30 COUNTRIES SIGNED ON TO BE PART OF THIS GLOBAL AI COOPERATION ORGANIZATION. HE MADE SOME KEY ANNOUNCEMENTS THAT CHINA WILL LEAD THE WAY TO ALLOW SOME 30 COUNTRIES TO TAP INTO THIS AI POWERED WARNING SYSTEM TO SAFEGUARD THEIR HOMES. THEY WILL PROVIDE 5000 OPPORTUNITIES FOR TRAINING OF AI TALENTS FROM MANY OF THESE DEVELOPING NATIONS AND COUNTRIES THAT BELONG TO THE SHANGHAI COOPERATION. THE BRICKS NATIONS, SOUTHEAST ASIA, LATIN AMERICA, CARIBBEAN COUNTRIES FOR EXAMPLE IN ALL. TAKING THE LEAD HERE TO ADVANCE THE AI CAPABILITIES OF THE GLOBAL SOUTH. DAVID: JUST QUICKLY. THIS WAS THE OPENING SPEECH, OPENING REMARKS. TELL US WHAT WILL GO ON IN THE NEXT FEW DAYS. MINMIN: YES. IT'S AN EXCITING EVENT. 100,000 SQUARE METERS OF SPACE. IT'S A RECORD. I'M GETTING READY TO TOP MY 10,000 STEPS TODAY. IT WILL BE OVERWHELMING. ONE IN 1000 COMPANIES ARE PARTICIPATING. MORE THAN 300 GLOBAL PRODUCT DEBUTS. JUST TO GIVE YOU A TEASER. WE HAD THE CHINA SHOW EARLIER TALKING ABOUT SOME OF THE NEW PRODUCTS THERE PIG AND MINIMAX IS GOING TO UNVEIL A NEW GENERATION OF THE MULTIMODAL MODEL. HUAWEI AS WELL. A NEW COMPUTING CLUSTER AT A TIME WHEN GPU IS AN IMMENSE SHORTAGE HERE IN CHINA. THE MEDICAL CO-FOUNDER WAS TELLING ME YOU HAVE TO WAIT TWO MONTHS TO GET YOUR HANDS ON GPU UNLESS YOU PAY A 20% PREMIUM. THAT IS A SUPPLY CONSTRAINT AS WE LOOK AHEAD TO WHAT WILL BE ON DISPLAY. WHETHER YOU ARE TALKING ABOUT THE HARD WAY FOR -- HARDWARE FRONT OR THE FOUNDATIONAL AI MODELS OR ROBOTICS. THERE'S AN ENTIRE FLOOR DEDICATED TO THAT. I WAS WALKING INTO THE ENTIRE AREA, JUST HANGING OUT AND DOING THEIR THING, SHOWCASING CAPABILITIES. YVONNE: I LOVE IT. DAVID: REALLY DISTINGUISHING THE ROBOT FROM THE BORING PEOPLE TO ME. SOMETIMES THERE'S A CHALLENGE THERE. GOOD LUCK. GET YOUR STEPS IN. A VERY BUSY DOCKET. SPEAKING OF TECHNOLOGY. SUFFICE TO SAY, THE PRESIDENT APPEARS AND GIVES KEYNOTE SPEECH. SUFFICE TO SAY THAT IT'S A POLICY PRIORITY WHEN IT COMES TO CHINA. JOINING US ON SET IS THE CHIEF CHINA EQUITIES STRATEGIST AT MORGAN STANLEY. THEY HAVE AN OVERWEIGHT ON TECH AS A SECTOR. THIS IS AS GOOD AS IT GETS IN TERMS OF POLICY SUPPORT. AS CLEAR AS THEY CAN GET. >> IT HAS BEEN A SIGNIFICANT POLICY PRIORITY EVER SINCE PUBLISHING OF THE FIVE YEAR GROWTH PLAN FOR THE NEXT FIVE YEARS STARTING FROM 2026. -- THOUGH THE MACRO CONDITION MAY NOT BE IMPROVING. ONCE INVESTORS SEE THAT, THEY WILL BELIEVE IT. THE SECOND REASON IS THAT I WAS LISTENING TO THE EARLIER REMARKS ABOUT THE AI CONFERENCE AND THE NEW POTENTIAL MODEL LAUNCHES, ETC.. THIS IS EXACTLY WHAT WE HAVE BEEN EXPECTING STARTING FROM JULY, THAT HYPER-SCALERS, THE LARGE LANGUAGE MODEL COMPANIES IN CHINA WILL START TO MORE EMPHASIZE THE PROGRESS THEY HAVE MADE ON THE AI FRONT. THIS IS NOT THE YEAR THAT GLOBAL INVESTORS APPRECIATE THE HUMAN -- HUMONGOUS AMOUNT OF EXPANSION WITHOUT SHOWING WHERE THE MONEY IS SPENT. BUT NOW'S A TIME FOR THESE COMPANIES TO LAUNCH NEW MODELS TO SHOW BETTER PERFORMANCE AND TO START TO INTRODUCE ASIAN FUNCTIONS IN THEIR ECOSYSTEM. AGAIN INVESTORS WILL REALLY APPRECIATE THAT. THE LAST WEEK OF JULY IS A VERY BUSY MONTH, AS WE DIGEST SUCH PRESSURE, THINK THE LIQUIDITY, THE FUNDAMENTALS AND INVESTOR SENTIMENT ARE ALL STARTING TO IMPROVE AND ALIGN FOR A RECOVERY IN HONG KONG. DAVID: WHAT ABOUT THE HARDWARE SIDE? >> WE LIKE IT. WE LIKE SEMIS, WE LIKE HARDWARE, AND THE ON A MULTITUDE -- MULTIYEAR BASIS, THESE ARE GOOD POSITION BUT WE NEED TO BEAR IN MIND THAT THE SUPER CYCLE IN CHINA'S EQUITY SPACE IS HIGHLY CORRELATED WITH THE GLOBAL AI SUPER CYCLE. AS FOR GOING THROUGH SOME OF THIS VOLATILITY IN THE U.S. MARKET AND NEIGHBORING MARKETS LIKE KOREA, TAIWAN AND JAPAN, THE SECTORS WILL BE ACTUALLY HAVING SOME NEGATIVE IMPACT FROM THAT AS WELL. ON THE LONGER-TERM BASIS, FOR EXAMPLE FOR GPU AND CHIPS COME WE THINK THE FUNDAMENTALS ARE EXTREMELY STRONG. THING FOR SOME OF THE SECTORS SUCH AS OPTICAL TRANSCEIVERS, THE VALUATION MIGHT BE A LITTLE STRETCH. SO WE NEED TO BE MORE SELECTIVE GOING FORWARD INSTEAD OF TURNING BEARISH ON THE SECTOR. YVONNE: SEE SMT IS THE BIG ONE TO WATCH, GIVEN THE SIZE OF IT, THE SECOND LARGEST IPO EVER. SOME SAY THAT WOULD RACE SOME WARNING FLAGS AND POSSIBLY A MARKET PEAK. HOW DO YOU SEE IT? >> THAT'S A GOOD QUESTION AND WE GOT ASKED THAT A LOT RECENTLY. IN GENERAL, OUR VIEW IS THAT IT WILL BE A NET POSITIVE FOR THE A SHARE MARKET FOR INVESTMENT IN THE TECHNOLOGY, THE REASON FOR US TO SAY THIS IS BECAUSE EVEN THOUGH THE ASIAN MARKET HAS DONE RELATIVELY WELL COMPARED TO HONG KONG AND PARTICULARLY THE TECH STOCKS, IF YOU LOOK AT THE DIVERGENCE OF THAT PERFORMANCE AND PARTICIPATION BY DIFFERENT TYPES OF INVESTORS, ONE THING WE REALIZE IS THAT RETAIL INVESTORS PARTICULARLY HAVE NOT YET BENEFITED SO MUCH FROM THE AI SUPER CYCLE IN THE A SHARE MARKET. THIS IS BECAUSE WHAT -- THE KNOWLEDGE NEEDED TO INVEST IN THE SECTORS MUCH HIGHER. YOU NEED TO BE SOPHISTICATED WITH THE TECHNICAL TERMS TO UNDERSTAND EXACTLY WHAT THE COMPANIES ARE DOING TO BE ABLE TO INVEST IN THESE SECTORS. WE WOULD RATHER LOOK AT THE MEGA IPO'S IS A GOOD OPPORTUNITY FOR INVESTOR EDUCATION TO ACTUALLY BRING MORE ATTENTION TO THE SECTOR AND EVENTUALLY MORE MONEY INTO THE MARKET. DAVID: THAT'S IMPORTANT, ALL THE NEW TECHNOLOGY THAT'S GOING ON, AND NEIGHBORING MARKETS INCLUDING HONG KONG, SOME OF THE SINGLE NAME LEVERAGED ETF'S ARE CAUSING TROUBLE AMONG THE RETAIL SPACE. REASON I FRAME IT THAT WAY IS, WHAT OBSERVATIONS HAVE YOU NOTED AS FAR AS CORRELATION BETWEEN REGIONAL MARKETS COMPARED TO OFFSHORE SUCH AS HONG KONG? >> CHINA'S CORRELATION WITH THE GLOBAL MARKET HAS ALWAYS BEEN MUCH LESS COMPARED TO SOME OF THE OTHER NEIGHBORING MARKETS, PARTICULARLY ASIA'S CORRELATION HAS BEEN VERY LOW. THIS TIME IS SLIGHTLY DIFFERENT BECAUSE WHAT HAD DONE WELL IN THE ASIAN MARKET IS EXACTLY WHAT IS DONE WELL IN THE GLOBAL MARKET. IS THE POWER SUPER CYCLE SUPER CYCLE BENEFICIARIES. AS I SAID, WHEN THE GLOBAL MARKET STARTS TO EXPERIENCE SOME VOLATILITY, SOME OF THOSE SUMMER DUE TO THE CONCENTRATED POSITIONS AND SOME ARE MORE DUE TO CONCERNS ABOUT FED POLICY, THE NEW CHAIR AND THE SUMMER BREAK AND POTENTIALLY MIDTERM ELECTION, BUT THEN THE CHINA MARKET WILL CORRELATE WITH THAT. BUT IN HONG KONG'S CASE, I THINK THAT SOMEWHAT DIFFERENT THIS TIME, THE DEVELOPMENTS WE HIGHLIGHT FOR HONG KONG'S RECOVERY, THOSE ARE ALL INTRINSIC. THEY ARE NOT DEPENDENT ON EXTERNAL DEVELOPMENT. THE IMPROVED EARNINGS, AND DEVELOPMENT AND THE DIGESTION OF THE PRESSURE ARE SPECIFIC TO HONG KONG AND WILL ONLY BENEFIT HONG KONG VERSUS THE OTHER MARKETS. YVONNE: WHAT ABOUT THE UNLOCK SECTORS, I DARESAY WE GO TO CONSUMPTION OR PROPERTY. BUT THE RETAIL SALES PICTURED THIS JUNE WAS SURPRISINGLY POSITIVE. I'M JUST WONDERING IS THERE ROOM FOR ANY? ? SORT OF RECOVERY IN THESE SECTORS? >> NOT AT THE MOMENT. AT LEAST IS NOT WHAT WE RECOMMEND INVESTORS TO FOCUS ON BECAUSE THE MACRO DATA OVERALL IS NOT PARTICULARLY ENCOURAGING AND WE SEE DECLINING GROWTH OF CREDIT DATA WHICH SHOWS CONFIDENCE IN INVESTMENT AND SUBSEQUENTLY CONSUMER CONFIDENCE AND SPENDING THEY NOT EXPERIENCE A MAJOR PICKUP IN THE COMING MONTHS. SO WERE NOT ADVISING INVESTORS TO PUT MONEY IN CONSUMPTION OR PROPERTY AT THIS MOMENT AND WE ARE NOT EXPECTING MAJOR STIMULUS STEP UP IN THESE DIRECTIONS EITHER. BUT TO TALK ABOUT SECTORS WHERE WE CAN INVEST IN OTHER THAN INTERNET OR TECH OR SOME OF THESE SECTORS WITH HIGH-GROWTH CERTAINTY, WE ALWAYS LIKE INSURANCE, WE THINK INSURANCE OFFERS DECENT DIVIDEND YIELD AND HAS UPPER GROWTH POTENTIAL THAT CORRELATES WITH THE MACRO STORY BUT PARTICULARLY THE WEALTH MANAGEMENT DEMAND FROM THE CHINESE POPULATION. WE RECENTLY ALSO ADDED BACK SOME TRADITIONAL ENERGY NAMES INTO OUR FOCUS LIST, THOSE ACTUALLY COME IN VERY HANDY WITH FOR EXAMPLE COAL CHEMICALS, WITH OIL PRICE PACESETTER RELATIVELY ELEVATED LEVEL AND THEY OFFER A DECENT MEAL. DAVID: A FINAL QUESTION, YOU MENTIONED EARNINGS, WHICH AREA OR SECTOR DO YOU THINK WE CAN SEE HIGHER REVISIONS AND EARNINGS EXPECTATIONS AFTER WE HEAR THE GUIDANCE? >> I THINK THAT'S ONE AREA WE ARE SEEING A LOT OF POSITIVE GUIDANCE, AND INTERNET IS ANOTHER SECTOR WHERE WE SEE POSITIVE DEVELOPMENT VERSUS THE PREVIOUS QUARTERS. THEN THERE ARE OTHER PLACES COME UP FOR EXAMPLE HIGH-END MANUFACTURING WHERE WE ARE SEEING UPWARD MOMENTUM. BUT TO OUR EARLIER DISCUSSION POINT, CONSUMER IS THE ONE AREA WHERE WE ARE SEEING MIXED SIGNALS INSTEAD OF VERY STRONG DIRECTIONAL TRENDS. YVONNE: GREAT TO HAVE YOU WITH US, CHIEF CHINA EQUITY STRATEGIST AT MORGAN STANLEY JOINING US RIGHT NOW. WE CONTINUE TO SEE SELLING PRESSURE WHEN IT COMES ON FOR EQUITIES HERE TODAY. THE CSI 300 IS DOWN 2%. HSTECH NOW LEADS THE CHARGE LOWER AND OTHER HANG SENG HAS TURNED NEGATIVE IN THE LAST 30 MINUTES OR SO AS WELL. TAKE A LOOK AT THE HSTECH SPACE, OVERSEEING MASSIVE LOSSES WHEN IT COMES TO SOME THESE AI P OR PLACE. I'M NOT SURE WHAT IS REALLY SPARKING, I GUESS IS JUST OVERALL THE SELLOFF THAT WE ARE SEEING OVERNIGHT IN THE CHIP SPACE. DAVID: IT'S QUITE SUBSTANTIAL, JUST A HEADWINDS FROM OVERNIGHT. YOU DON'T HAVE CASH TRADING IN KOREA TODAY, IMAGINE IF THAT WAS TRADING, BUT GOING INTO THE JAPANESE LUNCH BREAK, SOME OF THE BIG PROVIDERS, TSMC FOLLOWING A DECENT SET OF RESULTS IN CAPEX NUMBERS, MARKETS ARE BUYING INTO THAT AS WELL. I WE ARE OFF SUBSTANTIALLY, JAPAN AND TAIWAN DOWN OVER 4%. LOTS MORE AHEAD. THIS IS BLOOMBERG. DAVID: QUITE A DRAW DOWN ACROSS THE BENCHMARKS TODAY AND SOME MARKETS ARE ALSO GETTING SUBSTANTIAL VOLUMES COMING THROUGH AMIDST A SELLOFF. WE'LL GET INTO THE POLITICS A LITTLE LATER ON BUT IT'S ALSO BEEN VERY BUSY AS FAR SOME THE ANNOUNCEMENTS WERE CONCERN COMING OUT OF THE WHITE HOUSE THERE. WERE DOWN ABOUT 2% ON THE HANG SENG CHINA BENCHMARK, AND SOME OF THE BIG NAMES ON YOUR SCREEN, WAITING FOR A DIP TO BUY, PERHAPS LOOK AT WHAT IS HAPPENING ACROSS THESE MARKETS. YOU DO YOU WITH THAT INFORMATION. YVONNE: THAT'S WHAT I ALWAYS TELL PEOPLE WHEN THEY ASKED ME WHAT SHOULD I BUY. I ASKED THE QUESTION, I DON'T DO THE RESEARCH. WE JUST FACILITATE THE CONVERSATIONS. LET'S TALK ABOUT AI, THE CEO OF A CHINESE APP FIRMS TO GEOPOLITICS HAS FORCED IT TO BECOME MORE SELF-RELIANT AS IT ADAPTS TO U.S. TECHNOLOGY RESTRICTIONS AND SHIPS THE GLOBAL AI LANDSCAPE. THEY ARE BETTING ON WHAT THEY CALL NATIVE ALL TO MODAL AI AS THE NEXT FRONTIER IN THE TECHNOLOGY. >> SINCE THAT'S WE'VE BEEN PONDERING THE CORE CONNECTION -- THE CORE CAST -- THE CORE QUESTION. OUR ANSWER LIES IN HOW TO EFFECTIVELY NEUTRALIZE ACROSS CONNECTIONS BETWEEN VISUAL INFORMATION, WHAT THE EYES CAN SEE, AND TEXTURAL INFORMATION AND HOW TO USE CLOUD CONNECTIONS TO FORM A PARADIGM WE CALL NATIVE MULTIMODAL. SO IN RECENT YEARS ACTUALLY MOVE FROM VISUAL WHAT WE CALL NATIVE MULTIMODAL APPLICATIONS. >> HE TALKED ABOUT YOUR CORE MODEL, IF I WERE JUST TO GO OUT ON THE STREET AND AS PEOPLE WHAT MODEL THEY ARE FAMILIAR WITH, PEOPLE PROBABLY TALK ABOUT ALIBABA OR OTHERS. HOW DO YOU DIFFERENTIATE YOURSELF FROM ALL THE OTHER BIG PLAYERS OUT THERE NOW? >> I THINK A CRUCIAL POINT HERE IS THE CHOICE OF PATH. OUR UNDERSTANDING HAS ALWAYS BEEN THAT IF YOU CAN USE THE BATTERIES BETWEEN LANGUAGE AND TEXT, THE CONNECTIONS BETWEEN LANGUAGE AND VISION, IMAGES AND VIDEOS TO IMPROVE OUR MODELS CAPABILITIES, THEN IT WILL REACH A NEW UPPER LIMIT. SINCE TIME IS COMMITTED TO COMMITTING -- USING OUR STRENGTHS AND VISION TO RAISE THE UPPER LIMIT OF OUR MODELS CAPABILITIES IN THE NEXT STAGE. THEREFORE I HOPE THAT OUR -- WE CAN ACHIEVE SOME BREAKTHROUGHS WITHIN THE UPPER LIMIT OF INTELLIGENCE. >> WHAT IS YOUR PROFITABILITY LOOKING LIKE BASED ON YOUR CURRENT PRICING MODEL? >> BECAUSE THE CURRENT SCARCITY OF COMPUTING RESOURCES AND THE NEED FOR OPTIMIZATION, THE CURRENT PRICING AND PROFIT MARGINS ARE VERY HIGH. THEREFORE IT CAN STILL BE CONSIDERED A VERY PROFITABLE SOFTWARE BUSINESS. >> YOU TALK ABOUT THE STRENGTH OF YOUR COMPETITION CAPABILITIES. I KNOW WHEN YOU STARTED BACK IN 2014I BELIEVE, THE EXPORT CONTROLS ARE NOT IN PLACE AND YOU WERE RELYING ON INVIDIOUS CHIPS. SO SINCE THE EXPORT CONTROLS, HOW HAVE YOU DIVERSIFIED THIS PROJECT? ARE YOU STILL RELYING ON THE VARIOUS CHIPS RIGHT NOW? >> WE HAVE LONG KNOWN HOW TO BETTER CONNECT LARGER CLUSTERS TO SOLVE THESE PROBLEMS. WITH THE CHANGING GEOPOLITICAL LANDSCAPE AND A LOT OF PROMOTION OF THIS HYBRID BUSINESS MODEL, WE HAVE MANY DOMESTIC GPU PARTNERS WE HAVE ACCOMPANIED THEM ON THEIR DEVELOPMENT JOURNEY. EXPORTING HOW TO COMPENSATE WITH BETTER SOFTWARE. >> WHAT IS THE AVAILABILITY OF THESE TO MISTY GP IS NOW? DO YOU HAVE TO -- DOMESTIC GPU'S NOW? >> TO A CERTAIN EXTENT, SOME CHIPS TO HAVE SUPPLY CYCLES BUT BECAUSE THAT MANY PARTNERS WE HAVE, THE OVERALL INDUSTRY DEVELOPMENT REMAINS RELATIVELY HEALTHY. >> I WANT TO ASK ABOUT THE GEOPOLITICAL RISK YOU BEEN FACING BECAUSE YOU BEEN BASED ON THE COMMERCE DEPARTMENT LIST, HAVE YOU BEEN ABLE TO NAVIGATE THAT AND WHAT HAS THE JOURNEY BEEN LIKE SINCE THEN? >> MANY YEARS AGO, AXEL CLOSED OUR OFFICES IN THE U.S., FIRSTLY WE FELT THAT GEOGRAPHICAL FACTORS WERE UNAVOIDABLE. FOR OUR COMPANY, THE KEY IS TO DO WHAT WE CAN DO BEST. WE DO BELIEVE THAT MAKING SUCH DIFFERENTIATION BETWEEN TECH COMPANIES FACE ON GEOGRAPHICAL PROXIMITY IS A BIASED APPROACH AND NOT A VERY CORRECT PATH TO TAKE. BUT FOR US, WE WILL FOCUS ON DOING WHAT WE ARE CAPABLE OF. DAVID: THAT WAS THE COFOUNDER, CHAIRMAN AND CEO SPEAKING WITH OUR CHINA CORRESPONDENT MINMIN LOW THERE ON SOME OF THEIR FRESH ENDEAVORS. WE ARE AT SESSION LOWS COME DOWN ABOUT 1%, NASDAQ FUTURES. COMING UP ON A 4% DECLINE IN CHIP STOCKS OVERNIGHT, IT'S WORSE THAN THAT IN SOME OTHER PARTS OF THE ASIAN EQUITY MARKET. JAPAN FUTURES MIGHT SHOW YOU THAT TAIWAN IS ALL 4%, THE LAST WE CHECKED. IF KOREA WAS TRADING TODAY IT WOULD PROBABLY BE DOING ABOUT THE SAME, IF NOT MORE. MORE ON THE SOUTH KOREA STORY. YVONNE: WHAT CAME THROUGH FROM THAT F4 MEETING, SOUTH KOREA IS NOW TEMPORARILY HALTING SINGLE STOCK LEVERAGED ETF'S TO CURB MARKET VOLATILITY. IT FOLLOWS A SURGE IN THE POPULARITY OF THESE FUNDS, OR EDPS TOP TO THE LIKES OF SAMSUNG AND SK HYNIX. REBECCA JOINS US NOW. IS IT GOING TO HELP, THESE MEASURES? >> THE SHORT ANSWER IS NO. WHEN WE LOOK AT WHAT OTHER MARKETS HAVE DONE, WHEN WE LOOK AT CHINA FOR EXAMPLE, IT HAS A QUALIFIED INVESTOR, QUALIFIED DOMESTIC INVESTOR AND A FEW YEARS BACK WHEN THEY LAUNCHED ETF'S, THEY HAD RESTRICTED OTHER PEOPLE FROM WATCHING IT. WHAT THIS DID WAS AMPLIFY THE PROBLEM, HE CREATED A BOTTLENECK WHERE A LOT OF INVESTORS ONE OF THE PRODUCT BUT NOT ENOUGH DEMAND. WHAT ENDED UP HAPPENING IS IT ENDED UP TURNING UP AT A MASSIVE PREMIUM. WHEN THEY PUT RESTRICTIONS THAT CAPPED OR LIMITED INFLOWS, THE ETF ENDS UP TRADING AT A MASSIVE PREMIUM, OFTENTIMES A SIZE 50%. IN THIS CASE WE CAN SIMILAR THAT, THERE ARE NOT ENOUGH PRODUCTS AND PEOPLE WANT IT EVEN MORE. DAVID: WHAT ABOUT TWEAKING THE CRITERIA? INVESTOR EDUCATION? REBECCA: THEY REDUCED THE MINIMUM THRESHOLD TO $30,000 BUT WE FOUND THIS WAS NOT ENOUGH. MY COLLEAGUE CAME UP WITH A PHRASE, ANT ARMY, INVESTORS LIKE THAT, JUST PILING ON. IF WE NORMALIZE 37,000 DOLLARS, CHINA DID FIVE X AND KOREA DID .6 X, SO SIGNIFICANTLY LOWER. IF THEY WANT I LIKE FOR LIKE EXAMPLE, IT'S ROUGHLY $185,000. THEY HAVE TO INCREASE SIGNIFICANTLY MORE TO HAVE A SIGNIFICANT IMPACT. YVONNE: WALK US THROUGH SOME OF THESE FLOWS AROUND SK HYNIX. REBECCA: THEY ARE PILING IN LIKE NO TOMORROW. ALMOST EVERYONE HAS BEEN BUYING THE DIP. THEY LAUNCHED 80 OTHERS -- ADRS. THE FLOWS INTO THAT IN THE U.S. ALONE IN THE PAST FEW DAYS HAS AMASSED $183 MILLION. IF WE LOOK GLOBALLY, EVEN THOUGH THE MARKET HAS CONTINUED TO GO DOWN, FLOWS EVERY WEEK HAVE BEEN POSITIVE. THE PAST MONTH, 6 BILLION, AND SIX MONTHS, 11 BILLION. IT'S DROPPED TO 15 .6 BILLION -- 6.1 5 BILLION. INVESTORS ARE TALKING ABOUT HAS THE AI BUBBLE BURST, HAS IT BECOME A TIPPING POINT? INVESTORS ARE SAYING NO, I'M BUYING IT BECAUSE IT'S CHEAPER THAN YESTERDAY. YVONNE: OK, THIS WHOLE 24 HOUR FEEDBACK LOOP WE TALK ABOUT WHEN IT COMES TO SK HYNIX. NEWS WE ARE TRACKING, CXMT, DRAWING INTENSE INTEREST FROM RETAIL INVESTORS, OFFERING 212 TIMES OVERSUBSCRIBED. INDIVIDUAL INVESTORS PLACED 9.4 MILLION ORDERS DESPITE A CALLBACK MECHANISM. THEY ARE SEEKING TO RAISE AS MUCH AS 9.8 BILLION DOLLARS. CONDUCT IS ENDING SALES OF EV'S IN THE U.S., CITING WEEK DEMAND. THEY'VE TOLD DEALERS THAT PRODUCTION OF THE PROLOGUE SUV DEVELOPED WITH GENERAL MOTORS WILL END LATER THIS YEAR. HONDA SAYS THEY WILL FOCUS ON HYBRID AND GASOLINE POWERED MODELS IN THE U.S. WHILE CONTINUING TO SELL EV'S AND OTHER MARKETS BUT LEFT THE DOOR OPEN TO A FUTURE RETURN. NETFLIX SHARES FELL AFTER A SECOND STRAIGHT QUARTER OF REVENUE GROWTH. SALES ARE EXPECTED TO REACH $12.9 BILLION, SLIGHTLY BELOW WALL STREET ESTIMATES. THE STREAMING GIANT IS BETTING ON NEW OFFERINGS LIKE LIVE SPORTS AND VIDEO PODCASTS AND ALSO USING GENERATIVE AI TO CUT COSTS AND SPEED UP CONTENT PRODUCTION. THIS IS BLOOMBERG. ♪ >> WE SHOULD STRENGTHEN RISK AWARENESS AND ENSURE AI IS SECURE AND CONTROLLABLE. AI SHOULD BE A TRUSTED TOOL FOR HUMANITY. IN THE MEANTIME, WE SHOULD OPPOSE OVERSTRETCHING THE NATIONAL SECURITY CONCEPT IN THE FIELD OF AI OR PLACING SECURITY OVER THAT OF OTHERS. YVONNE: THE CHINESE PRESIDENT SPEAKING EARLIER, SHOWING THE OPENNESS OF AI AND WANTING THE WORLD TO ADOPT THEIR MODELS IN SOME WAYS AND I THINK EVEN STATE MEDIA WAS TALKING ABOUT, IT SHOULDN'T BE LIKE THIS OIL MINDSET WHERE YOU ARE HOARDING DATA AND COMPUTE, IT SHOULD BE FREE FOR THE PUBLIC LIKE WATER OR AIR. IT'S AN INTERESTING DICHOTOMY GIVEN YOU'VE SEEN THIS RACE BETWEEN THE U.S. AND CHINA WHEN IT COMES TO AI. EVEN U.S. COMPANIES ARE STARTING TO USE SOME CHINESE MODELS. BUT THE PRESIDENT HIGHLIGHTING WHY CAN'T WE JUST SHARE IT? DAVID: IT'S THE PATH THEY'VE TAKEN ON THE OPEN SOURCE. WHEN YOU LOOK AT SOME OF THE LABS AND FOCUS AND SOME OF THE MODELS EXPECTED TO BE RELEASED, HOW CAN THEY BECOME PROFITABLE DESPITE BEING OPEN-SOURCE? NOT A MUTUALLY EXCLUSIVE REALITY. AND THE JUXTAPOSITION OF PRESIDENT XI TALKING ABOUT THE OPEN-SOURCE MODEL OF POLITICS AND JUXTAPOSE THAT WITH THE OTHER NEWS IN THE SHOW TODAY, PRESIDENT TRUMP RELEASING INTELLIGENCE AND A LOT OF DOCUMENTS AND MEDDLING. YOU LOOK AT THE DIFFERENT STRATEGIES THEY ARE TAKING AND KEEP IN MIND, TWO MONTHS FROM NOW THEY SHOULD BE MEETING IN WASHINGTON. LET'S LISTEN IN TO WHAT PRESIDENT TRUMP HAD TO SAY AT THE START OF OUR SHOW. >> OVER A PERIOD OF YEARS OF STARTING DURING THE 2020 ELECTION CYCLE, THE PEOPLE'S REPUBLIC OF CHINA CARRIED OUT WHAT IS BELIEVED TO BE THE LARGEST COMPROMISE OF ELECTION DATA IN HISTORY, RESULTING IN CHINA'S ILLICIT ACQUISITION OF 220 MILLION U.S. VOTER FILES. THAT INFORMATION INCLUDES NAMES, ADDRESSES, PHONE NUMBERS, LITTLE COAL PARTY -- POLITICAL PARTY PREFERENCES AND OTHER DATA NEEDED TO REGISTER TO VOTE. DAVID: BEFORE WE WRAP UP THE SHOW, A LOOK AT DAMAGE ACROSS MARKETS. THIS ONE IS A POLITICAL IF WE LOOK AT THE DAMAGE ACROSS THE BOARD. LET'S START OFF WITH SOME TECHNIQUES AND HONG KONG. YVONNE: IT'S LOOKING UGLY, MAYBE A SENSE OF PANIC. I THINK THE TSMC EARNINGS IS WHAT WAS SPARKED OVERNIGHT IN ITS FILTER THROUGH INTO THE ASIA SESSION. WE ARE TRACKING SOME OF THE CHINA MOVERS, THEY ARE UNDERPERFORMING RIGHT NOW AND THEY SEEM TO BE THE FAVORITES WE'VE BEEN TALKING ABOUT. DOWN DOUBLE DIGITS, 11% DROPS. THE OPTICAL TRADE. SOME OF THESE AI NAMES ARE GETTING TO STRETCHED. THEY ARE LOOKING AT AUGUST AS A GOOD TIMEFRAME FOR MORE RECOVERY IN THE HONG KONG MARKET IN PARTICULAR. DAVID: THAT'S WHAT THE ADVICE IS. RISK REWARD SEEMS TO BE MORE FAVORABLE. YVONNE: E-COMMERCE IN PARTICULAR IF WE SEE SIGNS OF PRICE WARS FADING. THE REST OF THE REGION LOOKING LIKE THIS, ON TRACK FOR ABOUT A WEEK IN EQUITY MARKETS, DOWN ABOUT 3.3% ON THE BENCHMARK. JAPAN IS SET TO ENTER A TECHNICAL CORRECTION. ON A POSITIVE NOTE, WE WILL SEE YOU ON MONDAY. HAVE A GOOD WEEKEND. ♪