Huawei, Russia Gas Pipeline on U.S. Agenda at Munich Conference

Feb.15 — Professor James Davis of the University of St. Gallen discusses President Donald Trump’s possible ban on Chinese companies like Huawei Technologies Co. from building 5G wireless networks in the U.S. He also discusses plans for a major Russian gas pipeline into Germany and NATO contributions. He speaks in Munich with Bloomberg’s Matt Miller on “Bloomberg Markets: European Open.”

Let me first ask what your what your take is on the huawei show down here what kind of um what kind of a clash do you expect between the u.s delegation and there’s a big one in munich the biggest i think since the conference began in 1969 and

The germans who need some of this technology right well we’ve got 55 american members of congress the vice president coming and there’s going to be a full court press on this question of of building the next generation the networks here in europe huawei is the issue the americans think this is a

Security threat not only for state secrets but also technology so they’re going to be pressing hard to try and keep the germans from going in that direction the europeans from going in that direction of course the chinese are here as well bringing a high-powered delegation and they’re going to be

Making the the argument that this is all about free trade and why shouldn’t chinese companies compete with the americans and if they’re better if they’re cheaper their technologies should win out so that’s going to be that’s going to be a big fight here uh whether it’s in front

Of the cameras or behind the scenes that’s the interesting question on the other hand the germans have or on another uh in another issue the germans also have built up a reliance on natural gas that they cannot cut themselves off of and as a result it seems at least from

President trump’s perspective that they’re willing to ignore any atrocity by the russian leaders in in order to get their gas with the nordstrom 2 pipeline do you expect that to be an issue or has that subsided no the north stream uh pipeline is still a major bone of

Contention between the germans and the americans i think it’s too hard to say that the germans would uh ignore any atrocity the germans are really out on fr in front on sanctions against putin on the on the ukraine issue so they’ve been they’ve been tough on on putin but the the word you’re

Going to get from the germans i think is diversity diversification they’re going to say we’re going to build the pipeline but we’re going to build liquid natural gas facilities on the shore so that we can buy american uh fracking gas so they’re going to they’re going to press diversity and

Suggest that that’s the way forward for them keeps them able to to keep up a hard line against putin if necessary right they have said they’ll build two just a couple days ago said they’ll build two lng um ports here in germany to get to buy u.s gas what about the issue of

A contribution to nato that’s been a topic here for many years already but it’s starting to become more and more stark uh the fact that europe needs to have its own military force yeah no i mean i think the europeans have come to realize that they cannot take american support for granted you

Know if you think back the obama administration was already with its pivot to asia pulling some of its troops out of europe pulling some of the traditional american support for europe defense back a bit asking the europeans to do more trump has only accelerated that so the europeans have got that message whether

This two percent debate which i think is becoming rather stale it’s it’s just a bunch of a refrain that we all keep uh saying whether the two two percent debate really is the way to move forward i don’t know i think the europeans though are trying to to to to to go

Forward a bit you’ll see last week a major announcement by the the french and the german sun and the next generation uh fighter aircraft a multi-billion dollar project uh so there’s some movement here but expect members of congress to ask ask the europeans to do more i think that’s the message that

They’ll be bringing will we still see such a large u.s pres presence here it’s been announced um but they were saying a lot of people including nancy pelosi’s office it’s dependent on whether or not there’s a shutdown now it looks like that will be averted do you think we’re going to

Have a slew of important congressional and military leaders here the word i got this morning about six o’clock uh in a in an sms the text message message was that they were on their way but they were going to be late they were i guess uh busy passing the budget resolution

Last night uh so i think that the the codel is coming it’s going to be a big group and we’ll see what they what they bring for a message