Shapiro Opines on Trade Agreements, Electronics Ban, Paris Agreement at CES Asia

In response to our question on what he would like to see from the Trump administration on trade, Shapiro said, “We were very disappointed that he pulled out of the Trans-Pacific agreement,” saying the Trans-Pacific Partnership was a “zero-tariff deal among 20 countries.” The administration’s trade stance is “not as terrible as some of us had feared, but it’s not as good as it could be still -- especially with the importance of trade to our future,” Shapiro said.

Original concerns that President Donald Trump “would blow up” the North American Free Trade Agreement didn’t materialize and a lot of agreements are being made with Canada and with Mexico, whose currency is equivalent to what it was before Trump was elected, said Shapiro. “We’re seeing from the Trump administration that nothing terrible is happening yet in trade, other than some words, and the rhetoric has definitely been scaled back."

Shapiro hailed the “good relationship” Trump has with President Xi Jinping of China, which alleviated some concerns, and he expressed hope for a bilateral trade agreement with the U.K. as it exits the EU. CTA would like to see other bilateral agreements and “some re-creation or restructuring" of the NAFTA, "maybe even broadening it to include other countries -- essentially resurrecting the TPP,” Shapiro said.

Citing uncertainty in Washington over trade, Shapiro praised U.S. Trade Representative Robert Lighthizer as “highly qualified” and said there’s a desire in Congress to focus on free trade. On Trump's position on trade, he said the president is “figuring out that there’s three branches of government, each of which is exercising some control.” For now, he said, “I think we’re OK, and I would even be happy with the status quo for a while.”

We asked Shapiro about CTA’s concerns over the impact on the electronics industry if governments impose a ban on bringing electronics on airplanes an anti-terrorism measure, and he noted publicized intelligence involving the possibility of plastic explosives being placed in a tablet PC. Some countries, including the U.S., discussed banning passengers from bringing portable electronics larger than a smartphone on airplanes, he said, saying he isn’t privy to intelligence reports.

Shapiro cited the PanAm flight from London to New York in 1988 that exploded over Lockerbie, Scotland, after an explosive device was placed inside a radio cassette player. For a week or two after that event, all electronics were banned from airplanes, Shapiro recalled. “I actually went around and tried to convince government agencies that this is a terrible thing and it could have been put in a perfume bottle or a book.”

Shapiro said the electronics industry can help combat terrorism as sensing devices become better at providing voice, microfacial and biometric analysis. While those are contributions the tech industry can make, he said, “I am not one to question whether there’s actionable intelligence that requires a ban.” Most attendees at CES Asia reached Shanghai by air, “and we like to be safe when we fly,” he said. He added: “I can read a book or a magazine.”

On Trump’s decision to withdraw the U.S. from the Paris climate agreement, Shapiro said: “It is difficult to come here as a U.S. citizen and representative and recognize that the rest of the world is angry at you.” CTA on Monday said it has “not taken a position” on the Paris climate accord, nor on Trump’s decision withdrawing the U.S. from the agreement (see 1706050032). Shapiro cited a report saying Europe is being driven to China because of Trump’s decision to withdraw from the accord. “The Paris Agreement is a fine agreement in principle that we as mankind are gathering to be concerned about our children and grandchildren’s future and how we’re harming the environment,” he said. Even whether people disagree on whether climate change is occurring, “I guess you should err on the part of safety, so I think it’s a great thing that we’re part of,” he said.

Shapiro said the agreement puts a “very, very heavy burden on the United States” while placing “no burden” on developing countries, including China. “There’s only a requirement that by the year 2028 they can do whatever they want in terms of polluting the world without any restriction.” Beyond that period, developing countries are being asked to maintain whatever level of pollution there is, he said.

The U.S. has been cited in the media for causing most of the pollution in the world, “and that is true,” he said, “but the U.S. is no longer the world’s largest polluter." Pollution in the U.S. has gone down, he said, crediting fracking and natural gas production and solar and wind energy. Today, the U.S. is polluting less while other countries are polluting more, “and I think everyone should have obligations.”

Shapiro noted the electronics’ industry’s contribution to energy efficiency through the Energy Star program and via individual company efforts, including commitments to “act like they're part of the agreement.” That’s something “you may see more and more of,” he said. The industry as a whole has cut down “dramatically” on pollution through technology that offers alternatives to travel such as FaceTime and Skype communications, smartphones and computers. Events such as CES in the U.S. and Asia bring people together in one area and help reduce the industry's carbon footprint, he said: The average person who goes to CES has more than 14 meetings, “which means we’re saving people from having to travel tremendously.”

CE companies have an inherent incentive to come up with energy-saving designs in an effort to reduce heat, said Shapiro. He compared CRT TVs with today’s flat-panel digital TVs that compare to a nightlight in energy usage. An exception is that when new products launch, they often use more energy than older products because of new parts that are used, and “we’re always trying to make sure we don’t restrict innovation by limiting energy usage of brand new products.”

Shapiro stood by his goal at the first CES Asia two years ago (see 1506010040) to expand CES Asia to the size of the Las Vegas show, but he wouldn’t target a timeframe.

In response to an Indian journalist’s request to extend the duration of CES in the U.S. to accommodate foreign journalists who make the long trip to Las Vegas, Shapiro said it’s a “constant debate on whether four days is enough.” Planning is 20 years out for the U.S. show, so it will remain four days “for some time to come," he said.

CES Asia Notebook

Smart home company Oomi showed its array of devices and a controller before its scheduled July rollout, pushing ease of setup as its differentiator. The company raised $1.7 million “for marketing” in 2015, CEO Winston Cheng told us, and it stuffed its smart home kit -- with a touch-screen controller, plug, Wi-Fi camera and two smart bulbs -- into the swag bags given out to Emmy and Oscar awards guests to generate buzz. Cheng called Z-Wave-based Oomi the “easiest smart home solution” due to a “tap” setup process using near field communication to connect devices to the system. Modules on display included smart bulbs, light strips, motion sensors, wall switches and dimmers. A device called Air, for the Chinese market, measures fine particulate matter, a concern in China due to widespread construction, he said.

Onkyo showcased its Granbeat combination smartphone-high-res audio player. The 128 GB device, expandable by up to 256 GB via microSD, has a June 19 availability date at Amazon ($1,120) and will be available in the U.S., Europe and Hong Kong, a company spokesman told us. The player has dual Sabre digital-to-analog converters, a 3.5mm headphone jack and a 2.5mm balanced audio output. Physical music controls are on the side of the unit. The hybrid Android device, with a 5-inch screen, has a 16-megapixel front camera and 8-megapixel rear camera.

Social media plays a prominent role in Chinese consumers’ personal lives, but far less in their business activities, said a CTA study Thursday. Some 63 percent of consumers use messaging platforms to connect with personal contacts, 49 percent engage with social content by liking and commenting on posts daily or multiple times a week, said the report, but only 28 percent use social media in their professional lives. Smartphones are the preferred devices for interacting via social media because they’re “always at hand,” it said. Some 95 percent of Chinese consumers have an account with WeChat, the leading social networking site, said CTA, and 88 percent of Chinese consumers use their smartphones to shop online. Connectivity is shaping Chinese consumers’ lifestyles more dramatically than in other countries, said Steve Koenig, senior director-market research.