Because Huawei comes from China, it must make even more security efforts than other companies, Chen says. Its technologies are validated by third-party companies.
Blumenstein asks if Chen can guarantee that the Chinese government doesn't have access to Huawei equipment. Chen says that the company has a philosophy of "Trust no one." Companies should test its equipment for themselves.
Blumenstein asks if Chen is confident that Huawei will be able to sell telecommunications equipment to the U.S. "Of course," Chen says, but it will take longer than in places such as Europe.
Blumenstein notes that Huawei has 80,000 engineers and spends $6 billion on R&D. Why does it have a reputation for being less innovative than U.S. companies. Chen says that China's talent pool is large and as its economy grows it will get more and more competitive. The U.S. is great at innovation, but China is making progress. "You will see a huge improvement."
Blumenstein remarks on Mark Zuckerberg learning Mandarin and giving a speech in China. Will Facebook have a shot at being allowed in China? Chen says that it should try. Blumenstein notes that it only can if the government permits it. And that's the end of the interview.
Sue Desmond-Hellman of the Gates Foundation and Sam Altman of Y Combinator are onstage to talk about technology and health, interviewed by Dennis Berman of the Journal.
Desmond-Hellman says that the Gates Foundation practices "impatient optimism." It wants people like Sam of Y Combinator to be excited about tackling the world's big, important problems, and to be willing to try things which might fail.
Desmond-Hellman is talking about things a good doctor can do which computers can't. She says that a doctor can notice signs of potential Parkinson's from someone's walk or the way his or her face looks.
"If you have cancer, you don't want to talk to a computer."--Sam Altman
Rupert Murdoch (who owns this conference) and Mexican gazillionaire Carlos Slim Helu are on stage to be interviewed by Journal editor Gerard Baker about "Bests Won and Lost."
Murdoch is talking about a big bet which paid off: Sky, with which he competed with BBC to do TV in the UK. It lost a lot of money and agreed to merge with a competitor. Murdoch took over and it's now a $25 billion company which Fox owns 47 percent of.
In the U.S., the best deal he did was buying 20th Century Fox, he said. "In television, content is king. We've really got to be where it's made." News Corp. bought it for $300 million, "and everything grew out of that."
Slim is talking about investing in Apple a little before Steve Jobs came back and getting out too quickly--and staying in the CompUSA PC retail chain, which he took over, too long.
Murdoch on MySpace: "We just messed it up. The buck stops with me. We just didn't know--it was growing like crazy...it was a series of expensive lost opportunities, but we learned from it."
Murdoch says that buying Time Warner wasn't particularly his idea and Fox decided to bow out after thinking about all the debt. "Maybe I'm getting old."
Murdoch is addressing (obliquely) the phone-hacking scandals at his UK papers. He says it was a few wayward individuals and he can't talk about it because legal proceedings are going on. "On the whole, I'm proud of my enemies."
Newspapers used to live on classified ads, a business which has vanished, Murdoch says. "Frankly, all of us were asleep." Fox is buying Move.com, an online realty site, to be involved in classifieds' online equivalent.
Murdoch says the industry needs a serious competitor to Netflix and Amazon. People have access to 160 cable channels, but no longer think in terms of favorite channels. Just shows. Football is the one area where cable is vibrant.
In answer to an audience question, Murdoch says that HBO offering a streaming service is a good idea, and he would have done the same if Fox had bought Time Warner. But it's a tough business, since they'll charge the same as they do on cable, and will have promotion costs. "I think they'll do fine," but it won't be incredible.
This WSJ.D session involves a scan of tech columnist Geoffrey Fowley's brain, which was done with a special EG cap. They created a 3D model of his brain which can be navigated in the Unity game engine.
The technology can be used for medical purposes--a doctor can fly through a brain--but also for games in which you explore your own brain. There's also an Oculus Rift virtual-reality version.
I'm going to cover two more sessions here: James Cameron (at 2:30pm ET) and Steve Ballmer (3pm ET). And then the conference, which has been a good one, is over.
James Cameron is onstage, being interviewed by Evelyn Rusli. He says the last thing he did in Silicon Valley was to rent a building and blow it up for Terminator 2.
Rusli asks Cameron about Oculus Rift. He says that he made Avatar in VR--he directed the actors in the Avatar world. Rift "is to me, a yawn," he says.
But he's excited about VR camera capture technology. It's Oculus as a display device that he doesn't find exciting.
"Most of what a filmmaker does is narrow your field of view to show you just what you're supposed to see," Cameron says, regarding VR experiences like Rift. "The second you put someone in an immersive viewspace, you take all of this away." Unless filmmakers embrace the idea of the viewer having a role in deciding what gets seen.
Cameron says that Rift VR "could be a zero billion dollar business."
Cameron says that with upcoming Avatar movies, the scriptwriting and the design are going on at the same time, so they influence each other. He's aiming to create a sense of wonder. "When I write I try to isolate myself from the outside world and live in the world of the movie."
With the first Avatar, the system for motion capture and the virtual world were powerful, but not user-friendly. With the new Avatar, "I expect to step into a dragster." And "the term filmmaking" is now outdated, since most of the film is synthetically generated.
Adults assume Avatar was filmed in the Amazon and that the characters are wearing makeup. "It's the highest compliment you can get."
Rusli asks about 3D. Cameron: "It's a good news/bad news deal." It's accepted in the movie business and makes money, but it didn't make the leap to broadcast TV. "Nobody wants to put the glasses on."
Cameron says that glasses-free TV technology exists and is beautiful, but the broadcast industry has lost interest. "I think we'll see another round of it, and it'll stick...It could happen any time, but it'll require leadership." Maybe a 3D iPad will do it. "I'm done prognosticating on 3D. I know it's part of movies, and that's what I care about the most."
(I'm not sure which great glasses-free technology Cameron is referring to, although I've been impressed by some Dolby demos.)
Rusli asks, on behalf of Rupert Murdoch, what the budget will be for the next Avatar movie. Cameron says that he's shooting three Avatars at once in a "conjoined" production to get economies of scale.
Cameron says that the big movies these days are superhero action movies. He doesn't want to do that. He wants to deliver a "clutterbuster" that delivers visual spectacle. And he wants people to want to watch them in theaters, not on an iPhone. "It's going to be expensive."
Cameron says he's transparent with the studio about costs, and when things go wrong re: costs, he explains them so it's "not a constant meltdown."
Rusli asks: Could a movie like Titanic, which can't have a sequel, be made today? Cameron says people said it couldn't be made when it was made. But it would be even harder today.
Question from audience: What's the future of IMAX? Cameron says he needs a briefing from the company about that. He doesn't see any dip in the demand for the basic idea. People want a special experience, which pleases him, because he wants to make movies which live up to the technology. People deserve more than footage of the Grand Canyon.
"I think IMAX and other large formats and anyone who's working to improve that viewing experience in the theater is on good ground."
Last WSJ.D session is starting: Steve Ballmer. Interviewer Monica Langley says he's now a small business owner. (Ballmer says the Clippers have 140 employees.)