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New UK PM Truss To Unveil $172 Billion Energy Bailout; Former Informants Reveal How Russia Spies On Opposition; Drone Intrusions Denounced by Taiwan as "Grey-Zone Tactics"; Upgrades to iPhone 14 and Other Devices Unveiled by Apple; American Companies Moving Production Away from China; Donovan Lewis' Mother Speaks Out. Aired 2-3a ET

Aired September 08, 2022 - 02:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[02:00:00]

ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world. You are watching "CNN NEWSROOM" and I'm Rosemary Church.

(voiceover): Just ahead. Europe's energy crisis, the EU moves to cap Russian oil and gas prices as Moscow warns the West of a winter freeze. With part of the country still underwater, there is a growing sense of dread among survivors in Pakistan, as the water begins to recede thousands remain stranded with nowhere to go. And five speech therapists are convicted of sedition in Hong Kong over children's books. Why the court deem the publications anti-government?

ANNOUNCER: Live from CNN Center, this is "CNN NEWSROOM" with Rosemary Church.

CHURCH: Good to have you with us. Well, it may only be early September but winter is coming. And for Europe, that means freezing temperatures and sky-high energy prices. But the European Union is working on a plan to help consumers weather the storm. European Commission president Ursula von der Leyen is proposing a price cap on Russian gas imports and limits on electricity use during peak hours. Her plan also calls for a solidarity contribution from fossil fuel companies raking in record profits. EU members will discuss the measures at an emergency meeting on Friday.

(BEGIN VIDEO CLIP)

URSULA VON DER LEYEN, EUROPEAN COMMISSION PRESIDENT: We aim at lowering the costs of gas and therefore we will propose a price cap on Russian gas. Of course, the objective is to very clear. We must cut Russia's revenues which Putin uses to finance his atrocious war in Ukraine.

(END VIDEO CLIP)

CHURCH: Russian President Vladimir Putin says anyone who imposes price caps on Russian gas will get no Russian energy supplies at all. Europe typically imports about 40 percent of its gas and 30 percent of its oil from Russia. The new British Prime Minister will unveil her strategy to fight soaring energy costs in the coming hours. The Financial Times reports Liz Truss is preparing a $172 billion bailout for consumers and businesses.

(BEGIN VIDEO CLIP)

LIZ TRUSS, BRITISH PRIME MINISTER: Well, I understand that people across our country are struggling with the cost of living and they're struggling with their energy bills. And that is why I, as prime minister, will take immediate action to help people with the cost of their energy bills.

(END VIDEO CLIP)

CHURCH: There's been no real explanation of how she would pay for their pricey package. Although she ruled out a windfall tax on energy company's profits, the plan would freeze the average annual energy bill for UK households at around $2,800. That's up 27 percent from the current level, but well below the nearly $4,000. It would likely hit starting October. And CNN's Claire Sebastian joins us live now from London with more on this. So -- good to see you, Claire. So how does Liz Truss plan to pay for her massive $172 billion energy bailout? What are the expectations right now?

CLAIRE SEBASTIAN, CNN CORRESPONDENT: Yes, Rosemary, that is the critical question and one that separates her crucially from the UK as the opposition Labour Party. Liz Truss, a staunch conservative has said she does not plan to raise taxes, she does not want to extend the windfall tax already in place under Rishi Sunak, who was her close rival in his leadership race, the former chancellor brought in a windfall tax on oil and gas companies in May. She's not just said that she's going to cancel the windfall tax already in place, but she does not seem to want to extend it. So what that means is that it is likely the UK Government is going to have to borrow significantly more to pay for this huge package.

$172 billion, by the way, would dwarf any single COVID relief program that the UK Government put in place. It's almost double what the German government has already committed to spending to mitigate its own energy crisis. So it's a gigantic plan. And, of course, the risk of more borrowing is that that will lead to higher borrowing costs, which are already surging in the UK could lead to a further collapse in the pound higher inflation, and outside chance flagged by Deutsche Bank this week, but that could send the UK into a sort of 1970 style spiral and a balance of payments crisis. So the risks are high.

The risk, of course of practice -- of capping the price for consumers is that that's kind of like a blank check that the government is writing to the energy companies. They are taking on the risk of what happens to energy prices in the sense by meeting the difference between what consumers pay and what the companies pay. So that is the risk there. But I will say the Bank of England and other economists have said that they do think that capping the price that consumers pay for their energy bills will bring down inflation. And, of course, that is one of the key goals of the government and, of course, the Central Bank at this point. [02:05:13]

CHURCH: Yes, we'll see what the plan is here. Claire Sebastian, joining us live from London, many thanks.

Well, Britain's cost of living crisis means millions of people could be forced to choose between putting food on their table and heating their homes this winter. CNN's Isa Soares spoke with a mother struggling to make ends meet.

(BEGIN VIDEOTAPE)

BECKA, MOTHER: It's become so stressful, I can't sort of cope with it. So I've just been sort of burying my head in the sand and just trying to do it day by day by day.

ISA SORES, CNN CORRESPONDENT (voiceover): Becka is at breaking point. Months into a growing cost of living crisis that is only expected to get worse, she's struggling with mounting costs.

BECKA: Now I go shopping with my phone out. And everything that goes in, I add it up. And then I have to think and then we stop putting it to a certain amount. And then if we haven't got what we needed to put stuff back.

SOARES (on camera): How does that make you feel?

BECKA: Almost like a bit of a failure, right?

SOARES (voiceover): A burden no parent should ever feel. But as a single parent, Becka tells me she's doing her best for her nine-year- old daughter, juggling five jobs, keeping budgets on track, yet still struggling to put food on the table.

(on camera): OK, so this is everything you got from the Food Bank?

BECKA: Yes, it's all I got today.

SOARES: So what's in here?

BECKA: And so this is frozen chicken.

SOARES (voiceover): It's a harsh reality that sadly only going to get worse. Inflation is set to hit 13 percent by the end of the year at food, fuel, and soaring home energy costs, and it becomes unbearable.

BECKA: I used to plan out my meals every week because we could do that. But now I'm not doing it because who knows what I can afford, you know.

SOARES: But for families like Becka's this week has meant even more spending, kids are back to school and parents have tough decisions to make.

BECKA: For the shirts and for the summer dresses, I bought them like size 12, you know, ridiculously like as high up as I could think I can manage. This is in my shoes because it's more cost-effective if I just buy her boots, then she can be dry in the winter and just pull a sweater down in the summer.

SOARES: It's a dilemma that is felt across the UK, including here in London, where one head teacher tells me families have already started asking the school for support.

EMYR FAIRBURN, HEADTEACHER, KING'S CROSS ACADEMY: And really, what can they do when bills are going to go up so much, how are they going to afford for food, and unless that's what the parents are asking us? And the impact on children's learning could be as great as it was during the pandemic during a lockdown.

SOARES: There's no escaping the worst financial squeeze in 60 years but the poorest will bear the brunt of this crisis.

BECKA: Put down to our last thing of Pesto.

SOARES: The hunger, hardship, the mental anguish, and the stigma of poverty.

BECKA: It's really shocking how difficult it is just to have the very basics. I just want to be able to eat real food, heat my house, and wear good clothes. That's what I want to have, you know.

SOARES: Isa Soares, CNN, Norfolk, England.

(END VIDEOTAPE)

CHURCH: Well as Europe worries about the rising cost of living, Ukrainian troops are making gains on Russian forces near its second largest city. CNN has geo-located this video showing Ukrainian troops in a town about 70 kilometers southeast of Kharkiv until recently occupied by Russian forces. President Zelenskyy praised their success.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: Speaking in a foreign language.

UNIDENTIFIED MALE: This week, we have some good news from the Kharkiv region. You all have probably already seen the reports about the activity of the Ukrainian defenders. And I think every citizen is proud of our soldiers.

(END VIDEO CLIP)

CHURCH: Meanwhile, Ukraine's top general appears to suggest that Ukraine is behind last month's strikes on Russian targets in Crimea. In an article published in Ukrainian state media, he cites those strikes as an example of why Ukraine needs long-range weapons. Well, meantime, some former Russian opposition activists say they had only one choice, spy on co-workers or do time in prison. CNN tracked down two of those activists turned informants for the Russian security service, who later escaped Russia. CNN's Matthew Chance has their story. (BEGIN VIDEOTAPE)

MIKHAIL SOKOLOV, FORMER FSB INFORMANT: Speaking in a foreign language.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT (voiceover): This is where we sleep. This is how we live, Mikhail says. He's the Russian political activists turn FSB informant who shows us around the Dutch refugee center where he's now seeking asylum.

SOKOLOV: Speaking in a foreign language.

CHANCE: All I want for the future is a positive, normal life he says without any more of these adventures.

[02:10:02]

It was as a young opposition campaigner that Mikhail seen here at an anti-government protest in Russia caught the attention of the Kremlin security service, the FSB. His later work for Alexei Navalny, Russia's most prominent jailed opposition leader must have made him particularly valuable. But he was originally targeted to be turned, he told me with FSB threats.

SOKOLOV: Speaking in a foreign language.

UNIDENTIFIED MALE: They knew I was avoiding military service and gave me a simple choice either to cooperate with them or go to prison for years. Basically, I was threatened. And as a 19-year-old student, very frightened. There are so many stories, even videos of people being abused in prison. To even think about that is scary.

CHANCE (on camera): You were working with Navalny, there's pictures of you working quite closely with him. What kind of information did you get from the FSB about it?

SOKOLOV: Speaking in a foreign language.

UNIDENTIFIED MALE: I wasn't his close friend, so I couldn't give them information specifically about him. I was just working in a regional office. So they were more interested in when we were planning to hold meetings or protests, and, of course, what kind of investigations we were conducting. We even cooperated on some of these investigations. Following any media outcry, the FSB would either be in prison or protect a particular official.

CHANCE (on camera): But as well as keeping tabs on activists inside the country, the secretive Russian security services also appear to have been stepping up surveillance of Russians living abroad. Mikhail says the FSB pulled him out of Russia and sent him to the former Soviet Republic of Georgia to infiltrate the growing expatriate community. They're escaping repressions at home, alongside a network of other FSB informants already in place.

VSEVOLOD OSIPOV, FORMER FSB INFORMANT: Speaking in a foreign language.

CHANCE: Informants like Vsevolod, another young political activist, who says the FSB also threatened him with prison unless he sent detailed reports from Georgia on what Russian opposition figures they're thinking. Specifically on the Ukraine war, launched in February this year which forced many Kremlin critics into exile, and the FSB's informant operations he tells me into overdrive.

What does that say to you about what the fears are in Moscow about what could happen in the future? What are they frightened of?

OSIPOV: Speaking in a foreign language.

UNIDENTIFIED MALE: Special Services are very well aware of our history. When a huge Russian immigrant community emerges abroad where people speak freely to each other, work on projects together, help Ukrainian refugees, and basically create a mini Russia abroad, which is not under the control of the FSB, they are afraid that history will repeat itself. In 1917, Lenin came to Moscow and started a Russian Revolution, and they are terrified the regime will be threatened once again by war.

CHANCE: It was their opposition to the war, but Vsevolod and Mikhail say finally compelled them to turn their backs on their FSB handlers. Mikhail even appeared on Georgian television, berating the Russian regime, for which he had spied.

SOKOLOV: Speaking in a foreign language.

UNIDENTIFIED MALE: I texted the FSB guys and told them that they had started this war and that it was horrible. I saw all the images online and they turned my world upside down because I not only felt hatred towards the Russian government but towards myself for working for them for all these years.

CHANCE: It is self-hatred and a deep sense of guilt for the lies and betrayals, he says he was forced to make.

Matthew Chance, CNN, Amsterdam.

(END VIDEOTAPE)

CHURCH: Now to Brazil where the president tried to turn the country's Bicentennial into a massive campaign event ahead of next month's election. Jair Bolsonaro rode in a vintage Rolls Royce convertible at the start of a military parade for the Capitol.

(BEGIN VIDEO CLIP)

(END VIDEO CLIP)

CHURCH: And he rolled up on two wheels while waving to supporters in Rio de Janeiro's famous Copacabana. Mr. Bolsonaro is in a heated race for reelection. He claims polls that show him trailing former President Lula are a lie. Lula will hold a campaign event in Rio in the coming hours.

A police dragnet in Canada has ended a mass stabbing suspect, Myles Sanderson, was tracked down and taken into custody. Police say he died a short time later after going into medical distress. All this comes after a rampage on Sunday left 10 people dead and 18 others wounded. Myles's brother, Damian, who was also a suspect in the multiple stabbings was found dead on Monday.

[02:15:04]

Police arrested Myles Sanderson on Wednesday after forcing his vehicle off the highway in the province of Saskatchewan. A separate police force and an independent civilian-led organization will investigate the suspect's death. Police have not released a cause of death pending an autopsy.

Well, fear is growing in Pakistan as residents tried to escape floodwaters that are still rising. Some are terrified for their lives after the country's largest lake overflowed for a third time on Tuesday. Many have been forced into a temporary shelter, while others are completely trapped by the floods. Susannah George, The Washington Post Pakistan bureau chief, shows us how the area has been affected.

(BEGIN VIDEOTAPE)

SUSANNAH GEORGE, PAKISTAN BUREAU CHIEF, THE WASHINGTON POST: We're in Lal Bagh. This is one of the largest makeshift camps outside of seventh in Sindh province. As you can see, people here are living in tents that they built for themselves out of plastic tarps and sticks from nearby trees. Some people don't even have coverings over their heads. When we first arrived, families rushed towards us holding their children that they said are getting sicker by the day because of the lack of sanitation at this camp and because humanitarian aid or government assistance has not yet reached people here.

There are hundreds of tens and thousands of people, many of them children. This crisis has been particularly hard on children here in Sindh province. Many of these people have fled from incredibly poor rural villages, and their children were already malnourished before the floodwaters hit. When people arrived to camps like this with even less food to eat, their children's health deteriorated.

We spoke to a pregnant woman at this camp. She's in her eighth month of pregnancy and said she can't imagine delivering her child in conditions like this. She said that there isn't even clean water to drink. You need to walk two hours to the nearest town in order to get that water, and so she's been forced to drink from the floodwaters. And it's been making her and her children sick.

Floodwaters are continuing to rise in this area, cutting off roads leading in and out of the main town near here. And as that continues, it's going to be even more difficult for aid agencies and the government to get the help that people here need to them.

(END VIDEOTAPE)

CHURCH: And that was Susannah George of The Washington Post. Millions of people have been impacted by the devastating floods in Pakistan and to find out how you can help just go to cnn.com/impact. We are watching two dangerous hurricanes right now. In the eastern Pacific, warnings have been issued for parts of Baja California and other parts of Mexico. Hurricane Kay is expected to produce dangerous storm surges and coastal flooding. As it continues north, it's expected to start battering the coast in earnest in the hours ahead. And in the Atlantic, a hurricane watch has been issued for the island of Bermuda. Hurricane Earl is set to pass to the east of the island, and it's expected to become a major hurricane. So let's bring in CNN meteorologist Pedram Javaheri. Pedram, what's the latest on these two dangerous hurricanes?

PEDRAM JAVAHERI, CNN METEOROLOGIST: Now, Rosemary, folks who are taking this very seriously across the Baja region of Mexico. You'll notice the entirety of the Baja Peninsula underneath tropical system alerts here. Hurricane warnings were prompted just east of the system as it passes to the west of the Baja and notice it is a category one, it was a category two briefly in the past 24 or so hours. We do this -- we do expect the storm system to make a very close push towards the west central region of the Baja, the city of Guerrero Negro, this sparsely populated region of this region could be impacted with this tropical system.

But notice as it pushes up towards the north, it will gradually begin to lose its tropical characteristics but it gets uncomfortably close to areas of southern California. And, in fact, makes the closest run towards San Diego, California for any tropical system for a Category One hurricane in about 25 years' time. So hurricane Nora was within about 400 kilometers of San Diego back in 1997 when it pushed north of the Baja region. We have hurricane Kay approaching it within the same proximity sometime Thursday into Friday.

And notice again it gets uncomfortably close. I wouldn't be surprised if we see some hurricane conditions across the Channel Islands region there off the coast of California but tremendous rainfall and store Thursday Friday, and possibly into Saturday before conditions improve in this region. Notice rainfall amounts of the Baja maybe 200 to 300 millimeters, San Diego and points across the eastern area, the Mojave Desert could see about 50 millimeters of rainfall which will be enough here to not only provide some relief when it comes to the temperatures and fire weather conditions but also lead to some flooding as well, temps cooling off about 10 degrees over the next three or so days across that area of Southern California.

[02:20:04]

Now, on the Atlantic, here's how it's shaping up. A lot of activity is brewing, you have Hurricane Earl, this is kind of the most concerning storm at this hour, Category Two storm system is forecast to get Category Three, maybe even Category Four. And notice the closer on it makes here towards Bermuda over the next 24 to 36 hours. We do expect that to remain offshore. But again, indirect impacts could be felt on the island as far as tropical storm force winds and certainly storm surge threat as well near some of these eastern coastal regions.

But notice this, Rosemary, it gets up to a Category Four across the northern tier of the Atlantic, one of the rarest events here to see a tropical system attain that status. That far to the north speaks to how much fuel is in these oceans when it comes to the warmth of the water. But again at this point looks to remain over open waters.

CHURCH: Wow. A lot going on. Meteorologist Pedram Javaheri, Many thanks for bringing us up to date on the situation there. Appreciate it.

Well, the National Security Law imposed by Beijing on Hong Kong in 2020 is now being used to go after the publishers of children's books. A live report from Hong Kong, just ahead. Plus small drones from mainland China keep probing Taiwan's out of defenses but they're not from the Chinese military. We'll explain.

(COMMERCIAL BREAK)

CHURCH: Welcome back, everyone. We get another blow to civil liberties in Hong Kong with five speech therapists found guilty on Wednesday of conspiring to publish children's books -- children's books that the government considers seditious. CNN's Kristie Lu Stout is covering this for us in Hong Kong. She joins us now live. So, Kristie, five people found guilty of publishing these books, what was the offensive material exactly?

KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, you have five Hong Kong speech therapists convicted of sedition for publishing these children's books that depict cartoon sheep being menaced by wolves. Now, these three books that were released both online and available for free in a print version as well, according to the judge had referenced actual real events in Hong Kong history, including the 2019 Hong Kong protests, as well as the 12 pro-democracy protesters who had attempted to flee Hong Kong by speedboat to Taiwan but were captured by China's Marine Police.

Now, this is the first time that a sedition case for publications has gone to trial since the 2019 Hong Kong protests and since the imposition of the controversial National Security Law by Beijing, imposed on Hong Kong the following year in 2020. Now, in a written statement, the judge said this about the case, let's bring up the statement for you. "By identifying the PRC government as the wolves, the children will be led into the belief that the PRC government is coming to Hong Kong with the wicked intention of taking away their home and ruining their happy life with no right to do so at all."

[02:25:04]

The convictions use a colonial-era sedition offense that critics say has been applied alongside the National Security Law to increasingly crack down on dissent in Hong Kong. All the defendants had already pleaded not guilty. The sentencing is taking place this Saturday. They could receive up to two years each in jail and Amnesty International is urging for their immediate release. We have this statement from their China campaigner, Gwen Lee, who says this. "The Sedition convictions are an absurd example of the disintegration of human rights in the city. Writing books for children is not a crime, and attempting to educate children about recent events in Hong Kong history does not constitute an attempt to incite rebellion." Critics call these convictions part of a larger crackdown on dissent and on free speech in Hong Kong. Authorities say the prosecutions are based on evidence and say that the National Security Law has restored order and brought stability to the city. Back to you, Rosemary.

CHURCH: And, Kristie, walk us through the impact of this crackdown in Hong Kong.

LU STOUT: You know, it's -- we -- this is something that we have been reporting on over the years and the cumulative total is just mind- boggling to just take into account. As a result of the crackdown, the National Security Law Hong Kong is a fundamentally changed city. The scenes of mass protests that we had seen earlier, for example, in 2019 are no more. More than 180 people have been arrested under the National Security Law including a 90-year-old Catholic Cardinal. The political opposition has been virtually wiped out with many pro- democracy leaders either in jail or in exile. National Security Law Education is now in place and being rolled out in schools across the territory. Politically sensitive artworks have been removed, I can go on and up to 140,000 people have applied for the BNO visa to leave Hong Kong to go to the UK, many of them because of political reasons of a fundamentally transformed city, Rosemary.

CHURCH: All right, Kristie Lu Stout joining us live from Hong Kong, many thanks.

LU STOUT: Thank you.

CHURCH: A small group of Taiwanese islands off the coast of mainland China has emerged as the largest potential flashpoint between Beijing and Taipei. In recent weeks, civilian drones from the mainland have been intruding upon these defensive outposts, a provocation denounced by Taiwan as grey-zone tactics. CNN's Will Ripley has a report.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voiceover): The intruder hovers over a Taiwanese military outgrows, brazenly capturing images so what's supposed to be a secure area. Apparently taken by surprise soldiers respond by throwing rocks. Video of this bizarre encounter with an unidentified drone last month and other similar videos are going viral on Chinese social media. Comments mock Taiwan's military for unreadiness and incompetency.

The videos seem to expose a stunning vulnerability. Drones photographing restricted areas. Taiwanese soldiers have tried firing warning flares. Earlier this month, they shot one down. Taiwan's military confirms these mysterious intrusions are civilian drones from mainland China.

PAUL HUANG, RESEARCH FELLOW, TAIWANESE PUBLIC OPINION FOUNDATION: So we are only going to see more and more of these attempts and they wanted to provoke what the Taiwan's defense is on the other side.

RIPLEY: The drones are targeting Taiwan's outlying Kinmen islands, some 200 miles from the capital Taipei about six miles from mainland China. Kinmen is a crucial first line of defense from a Chinese attack.

(on camera): These anti-landing strips have been lining the beaches here for more than 70 years since the end of China's Civil War. These days, it's not tanks coming over from the Chinese city of Xiamen.

(voiceover): Its drones. This video appears to show the possible pilots hunched over a few tablets on a picnic table and remote controls in hand.

UNIDENTIFIED MALE: Speaking in a foreign language.

RIPLEY: I got a tank, one man says. CNN cannot verify the identities of these people. The Chinese government apparently unconcerned brushing off the provocation says no big deal. Taiwan's government, vowing to take tough measures to take down intruding drones. The military is speeding up deployment of air defense systems to outlying islands.

HUANG: It's not just civilian drone that we need to worry about.

TSAI ING-WEN, TAIWAN'S PRESIDENT: Speaking in a foreign language.

RIPLEY: Taiwan's President Tsai Ing-wen accuses China of grey-zone tactics, using drones and other methods to intimidate the self- governing democracy. Taipei says it's all part of Beijing's ongoing pressure campaign, including unprecedented military drills encircling Taiwan. Drone intrusions escalated last month after a controversial Taiwan visit, U.S. House Speaker Nancy Pelosi.

[02:30:00]

And now, a growing list of U.S. Lawmakers showing solidarity with a young democracy facing off against an old foe and apparently unexpected ways. Will Ripley, CNN, Taiwan.

(END VIDEOTAPE)

CHURCH: Some tech giants are looking outside China to manufacture their products. Just ahead here on CNN Newsroom, we will look at where we're moving production, back in just a moment.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN. More people get their news from CNN than any other news source.

CHURCH: Welcome back, everyone. Apple has just unveiled its new iPhone 14 models. They have upgraded cameras. They can send a call for help via satellite during an emergency. They used electronic sim cards and they can detect a car crash and call emergency services. Prices start at $799, the same as last year's model. Apple also showed off three new smartwatches with the highest aim model designed for extreme sports such as scuba diving.

Well, even as Apple launches new products, it started moving some products out of its manufacturing hub, China, and it's not alone. Tech giants Google and Microsoft are also looking to shift some work out of China to places like Vietnam and India. And while it would be complicated to decouple from China entirely, recent supply chain issues due to COVID lockdowns and geopolitical tensions have companies looking for alternatives.

Our Ryan Patel is a Senior Fellow at the Drucker School of Management at Claremont Graduate University. And he joins me now live from Los Angeles. Always good to have you with us.

RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT: Thanks, rosemary.

CHURCH: So, Apple's big launch of its new iPhone 14 got everyone's attention. But a change that many might not know about is some of the latest iPhones will be manufactured outside China, and other tech companies are making similar changes and choosing Vietnam and India instead.

What's behind this shift in remapping of the global supply chain? And how extensive could it eventually be, do you think?

PATEL: Yes, there's two parts to this. One, we've seen as this Apple for the last couple of years, including the trade war, I think many of these tech companies saw that they do not want to get caught into these geopolitical issues between China and the U.S. We've seen companies get hurt and get really behind the eight ball. So, they to come up with -- start to diversify because you can't just automatically flick your fingers and go, hey, we're going to start building here. It's going to take time. So, that's been starting.

[02:35:00]

Two, to really change market share for Apple and China, it has really been really going smoothly for them. So, they do want to, you know, they want to de-risk it, but they got to test it. I think one great example is India.

India and Apple, this is a test for them. Only Apples -- India plants around five to seven percent contributes to the company's global iPhone shipments. And as you mentioned, the iPhone 14, that's where they're going to start in India as well. And so, it's not Apple compared to India and China, but this market is going to go that way.

CHURCH: And how big a decision is it for a company like Apple or any other business to relocate manufacturing operations? Although, you know, this is just tiny steps right now.

PATEL: Yes, it is -- it's one of those things that you are going into the unknown. Do you want to keep continuing at something that's working or something that you're aware of? Versus trying to build in a new country, go to another infrastructure. We think about Vietnam, which is obviously one of the hot countries that people, you know, are going to. You know, they got to catch up as well in infrastructure spending. And I think that's where India has been a little lot further advanced when you talk about the money that's being spent, not only with their consumers but also, you're getting the supply chain out there.

And so, many of these other countries, especially in Southeast Asia, there is a capacity issue as well. So, many of these companies are putting plants in their (INAUDIBLE) who realize that.

CHURCH: And how much would China's market share be reduced in the end, by moves like this made by various companies? And how concerned would China be by these moves, even though as we must emphasize, they're not significant at this point?

PATEL: Yes, it's not as significant. I think when you think about China and Apple's market share of 60, 70, 80 percent or whatever you want to put the number around. I mean, China is not really worried.

Do I believe they'll lose some market share to India, to Vietnam, and others? Yes, I do. But I also think that China's not going to sit back and just lose market share. They're going to try to stay competitive as well. And I think that that's where you're going to see, even if they lose, let's say 10 percent, it's a battle, right?

In Vietnam for example, you know, it's not always cheap and cheap labor. Land prices are starting to increase because of more investment. So, there's this balance that comes through there. I think over time you're going to see market share potentially lost. But the pi just keeps getting bigger when you talk about more people, right, Rosemary?

CHURCH: And so how would labor costs in Vietnam and India compare to what these companies have been paying in China?

PATEL: That is one of the drivers, right? One of the drivers is that it's actually cheaper than these other countries as of right now. It's not as cheap as much as you think in China as they're raising -- as their wages have increased as well.

And so, part of this formula becomes, well, when you have more companies coming into places. It's creating jobs is creating momentum. It also -- potentially rise pricing in wage because you got to find workers in those areas. You got to train them. You got to find skilled workers to be able to do all these things.

So, you know, it's -- in a short period of time, you'll see a lot of benefit. Over the long period of time, you'll be very competitive.

CHURCH: Yes, fascinating, isn't it? We'll watch and see what happens here. Ryan Patel, many thanks as always for your analysis. Appreciate it.

PATEL: Thanks for having me.

CHURCH: Well, Saudi Arabia and its neighbors are threatening legal action against Netflix over content they say violates Islamic values. We will explain why after the break.

(COMMERCIAL BREAK)

[02:40:00]

CHURCH: Arab countries in the Persian Gulf are threatening legal action against Netflix if it doesn't remove content on its streaming service that they say violates Islamic and societal values. CNN's Scott McLean explains.

SCOTT MCLEANM CNN CORRESPONDENT: So, this all started with a joint statement aimed at Netflix from the Saudi Arabian government and the Gulf Cooperation Council, warning Netflix about content directed at children, that in its view, violated Islamic and societal values. Now, it didn't specifically identify the content in question. But a Saudi State TV report did. The show is called "Jurassic World Camp Cretaceous". This is an animated spin-off of the "Jurassic Park" films. And this is the scene in question.

(BEGIN VIDEO CLIP)

YASMINA, JURASSIC WORLD CAMP CRETACEOUS CAST: The truth is, Sammy, I've fallen for you, like, hard. Real hard.

SAMMY, JURASSIC WORLD CAMP CRETACEOUS CAST: I know. I heard you earlier. I just wanted to hear you say it again because I've been wanting to hear you say that since I don't even know when.

(END VIDEO CLIP)

MCLEAN: So, that Saudi State TV report blurred that kiss and said the show aimed at kids is calling for homosexual actions and moral corruption, in its words. Now, the statement from the Saudi government and the Gulf Cooperation Council called on Netflix to remove the contents. Saying in part, in the event that the violating content continues to be broadcast, the necessary legal measures will be taken.

Now, the Emirati government also put out a very similar statement and it seems like there has been some action taken. If you access Netflix from the Emirates right now, you will find this show has been completely removed from the children's section. You can still access it through an adult profile. Though it now carries the rating of 18 plus.

We have reached out to Netflix for comment, but so far, gotten no response. Of course, homosexuality is illegal in both the UAE and in Saudi Arabia. Earlier this year, the Saudis even started cracking down on rainbow-colored toys and clothing for the same reason that they're taking aim at this show.

Now, this is not the first time that Hollywood has been asked to censor itself. Earlier this year, the film "Lightyear", a spin-off of the "Toy Story" franchise was not shown in several Middle Eastern countries, because of a similar same-sex kissing scene.

In 2019, Netflix removed an episode of its show the "Patriot Act" which was critical of the Saudi government over the killing of Journalist Jamal Khashoggi. Streaming services are now having to adapt to the regions that they're operating in. Just last month, Disney Plus said that its contents should align with local regulatory requirements. So, censorship, it seems, more and more, is the price of doing business. Scott McLean, CNN, London.

CHURCH: And I'm Rosemary Church. I'll be back with more CNN Newsroom in about 15 minutes. World Sport is next.

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[02:45:00]

LEMON: Tonight, the mother of Donovan Lewis is speaking out for the first time since her son was shot and killed in his bed by an officer from the Columbus Police Department. And I have to warn you, this video is disturbing.

It happened when officers were preparing to serve a felony warrant for domestic violence, and assault, and improper handling of a firearm. Body camera video appeared to show Lewis with something in his hands. But it wasn't a weapon, it was apparently a vape pen.

So, joining me now is Rebecca Duran, Donovan Lewis's mother, and Rex Elliott, their family attorney. Thank you both so much for joining us. I really appreciate it.

REX ELLIOTT, ATTORNEY FOR FAMILY OF DONOVAN LEWIS: Thank you.

REBECCA DURAN, MOTHER OF DONOVAN LEWIS: Thank you. It's hard to hear, sorry.

LEMON: And Rebecca, listen, I know it's hard to hear and I know it's hard to see. But I know that you have seen this video before. I'm so sorry for your loss. How is your family doing?

DURAN: We're struggling. There's no other way to put it, we're struggling.

LEMON: I see you're wearing a shirt that was made by a family friend, correct?

DURAN: Yes.

LEMON: Yes. Donovan was killed during the 3rd police-involved shooting in Columbus in less than a week span. But this shooting was the only fatal one. Why do you think this keeps happening?

DURAN: Because they're not making real changes. They're talking a lot, but they're not actually doing anything.

LEMON: What do you want to see done?

DURAN: Actual change. Actual, independent investigations that don't involve other officers.

[02:50:00]

No matter what organization they're with, they're still officers at the, you know, fundamental level. I want the officer that shot him to be charged, indicted, and in jail ultimately. I don't want him in any capacity of police -- any police capacity ever again in his life.

I think that there needs to be major changes in how many aspects of that night took place. You know, late night warrants, a lot of things. I'm so sorry. I'm working on very little sleep still.

LEMON: Not at all. Listen, I'm always surprised by the strength of family members when they're able to come on a program like this when something like what happened to your son happens. And I just wonder if it's, you know, trying to get justice or attention? If that's what keeps you going because I imagine you're just going on adrenaline now.

DURAN: It's pure adrenaline, but it's for Donovan. I don't care about attention. I'm not good with attention. It is absolutely 100 percent for him. Justice for my son. He deserves that at the very least.

LEMON: Rex, that's why you're here, as an attorney, to try to get justice for the family. And speaking of, there's a motion that was passed yesterday directing a Columbus inspector general to investigate these three shootings. What do you hope comes out of this?

ELLIOTT: Well, we're -- and we're also conducting our own independent investigation. You know, Don, the reality is that investigation is very important here. But we do have body cam video. And the body cam video tells us pretty clearly what happened here.

And as Rebecca said a few minutes ago, there were so many things wrong with what happened the night of August 30th, starting with a middle of the night arrest warrant. There was no reason for this to be served in the middle of the night. There was no danger. No emergency. Served in the middle of the night. It created a chaotic atmosphere with a K-9 dog. They didn't need to have a K-9 dog there. They had multiple police officers.

As soon as the door was open, he fired his gun within a split second. He didn't even have an opportunity, really, to observe anything in that room. And all Donovan was doing was trying to get out of bed in accordance with the police commands. And then it went on from there. They cuffed him. They accused him of arresting -- resisting arrest when he couldn't even move. They dragged him out of the bed onto the floor, took him down the stairs, dropped him on the floor.

I mean, this is -- this whole scenario that night is just absolutely sickening. And what justice looks like for us, is to make sure that we find the flaw on the system so that no family like this good family has to go through something like this again.

LEMON: Are you OK to answer another question for me, Rebecca?

DURAN: Oh, I'll do whatever we have to do.

LEMON: Do you think justice is achievable?

DURAN: I believe it's achievable. It's going to take a lot of work to make it happen. There's still people fighting for justice long before Donovan and have not received it. So, we really -- we've got to get something -- I mean, I don't know what that something is, but something major has to change.

LEMON: This -- attorneys for the officer, Ricky Anderson, who police say shot Donovan, they released a statement sympathizing with your family and give this explanation. This is what they said. When we analyze police-involved shootings, we must look at the totality of the circumstances, and we are expressly forbidden from using 20-20 hindsight. Because unlike all of us, officers are not afforded the luxury of armchair reflection when they are faced with rapidly evolving volatile encounters and dangerous situations. Because of this, the law allows a reasonable officer to be mistaken just as the law allows us as nonpolice officers to be mistaken.

What's your response to that, ma'am? Because, of course, your son was holding a vape pen and not a weapon, but was shot anyway.

DURAN: Correction, he wasn't holding a vape pen. And if you look at the -- I'm sorry, I didn't -- I don't, you know, I don't mean to argue with you or anything.

LEMON: No, not at all. Go on, please.

DURAN: There's video, we slowed it down, there's nothing in his hands. He was literally pushing himself up to sit up. The vape pen wasn't seen until they were flipping his body around in the bed, instead of providing aid. So, yes, there was a vape pen in the room. It was not in his hand in a moment.

ELLIOTT: Yes, and Don, the reality is that the lawyer's statement about what the legal standard is is correct. But we're not judging this in hindsight. We are judging this based on what a clear video shows.

[02:55:00]

There was another police officer with a clear view into that room, who did not fire his weapon. And its crystal clear this was a reckless shoot. And so, nobody's judging the officer -- Officer Anderson's conduct based on hindsight.

DURAN: Might I add that they're trained for that, and we're not. And it's obvious that he couldn't see, like, he couldn't even see -- he couldn't have possibly identified who he even shot.

LEMON: Well, we appreciate you joining us and we want you to keep us informed as to what happened. Again, just you being able to come on is admirable. I don't know how you do it. Rex, thank you for joining us, and Rebecca as well. Be well. Thanks.

ELLIOTT: Thank you.

DURAN: Thank you as well.

LEMON: Thank you.

And thank you for watching, everyone. Our coverage continues.

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