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Qatar: Technical Talks Between The U.S. And Iran Are Ongoing; Analysis: Strait of Hormuz Shutdown May Be A Net Win For China; Rescue Teams Still Searching For Survivors One Week On; Russian Drone Strikes Eastern Ukraine; BFMTV: Ukrainian Tycoon Target Of Assassination Attempt; Fears of Xenophobic Violence Sparks Mass Migrant Exodus in South Africa; Mexico Advance to Round of 16 After 2-0 Win Over Ecuador; USA to Face Bosnia-Herzegovina in Round of 32 on Wednesday; China Investing Billions in Robotics as Workforce Shrinks; Justices Uphold Birthright Citizenship for All Born in U.S.; NASA to Spend $30 Billion to Build a Moon BASE. Aired 2-3a ET

Aired July 01, 2026 - 02:00   ET

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

(COMMERCIAL BREAK)

[02:00:42]

KRISTIE LU STOUT, CNN ANCHOR: Hello, and welcome to CNN NEWSROOM. I'm Kristie Lu Stout in Hong Kong.

And ahead this hour, the U.S. and Iran are talking in Qatar, just not to each other, and differences still remain.

Hope of finding survivors fades as Venezuela marks one week since twin quakes ravaged the country.

And China's humanoid robots are captivating the world, but a rental market is exposing their limits.

ANNOUNCER: Live from Hong Kong, this is CNN NEWSROOM with Kristie Lu Stout.

STOUT: OK, it's 9:00 the morning in Doha, where delegations from the U.S. s and Iran are expected to participate separately in technical talks with mediators in the hours ahead. No high-level meetings between the U.S. and Iran are planned.

Now, this comes one day after Qatar's Prime Minister sat down with U.S. envoys Steve Witkoff and Jared Kushner to discuss U.S. and Iran talks and the ceasefire in Lebanon, the envoys did not meet with Iranian officials. Sources say Oman recently delivered a proposal to the U.S. and other allies on the future of the Strait of Hormuz. A regional diplomat says that the plan calls for shipping companies to pay service fees to use the Strait, but the source says disagreements remain.

Now, CNN's Kristen Holmes has more details from the White House.

(BEGIN VIDEOTAPE) KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Technical talks continue in Doha, but there are no high-level meetings scheduled between the U.S. and Iran. Currently, the two countries are dealing with negotiators in Qatar, Qatari diplomats. We did hear some details of what was discussed between U.S. Special Envoy Steve Witkoff and Jared Kushner and those Qatari diplomats. There was a discussion, particularly over the cease fire in Lebanon. There has been an ongoing point of contention, really causing major issues for the Iran deal. We know that last week there was an announcement that Israel would pull out some of its troops from areas of Lebanon, somewhat of a sign of good faith, and put the Lebanese military in those spaces. This is something that the Iranians have really been fixated on.

We've also learned that Iranian officials are going to be meeting with these Qatari diplomats. One of the key sticking points that they'll be talking about is those frozen assets. There's been an enormous amount of back and forth as to what exactly is happening with those billions in frozen assets. We know that the Iranians have said that that money has started to be released, or at least half of it, which is about $6 billion. The Americans have said none of it has been released, and when it is released, it's going to be used by the Iranian government to then purchase American goods to feed and give to Iranian civilians.

Unclear how all of that is going to work. Now, all of this is also coming at a time where we have learned from sources that Oman has given a new proposal over the Strait of Hormuz to the United States. This is in no way definite, but what's interesting about that is part of the proposal asks shipping companies to pay a service fee.

Now, that is very interesting in itself, given that we have heard over and over again that there will not be tolls that Iran charges in the Strait of Hormuz. So, the White House is pushing back on that, saying absolutely, under no circumstances will there be tolls. We have heard from other sources saying that Obama is not trying to get payment in the Strait of Hormuz, but clearly again the Strait of Hormuz is still quite a sticking point, and right now it is still unclear how much forward or more forward these talks are actually getting, because what we're hearing is a lot of conversation about the memorandum of understanding, but not necessarily about what is next for these negotiations.

Kristen Holmes, CNN, the White House.

(END VIDEOTAPE)

STOUT: Now, the war in Iran has left countries across the globe struggling to navigate higher fuel than other costs, but a new report just released finds that shutting down the Strait of Hormuz may be a net win for China. According to analysis by the Asia Group, they're based in Washington, D.C., China has been able to weather the storm by tapping into its vast oil and gas reserves by leaning on its clean energy resources and imposing restrictions on energy exports. Analysts warn that the longer the Iran crisis lasts, the greater the impact other nations will face.

[02:05:18] Joining us now is Kurt Campbell, chairman and co-founder of The Asia Group. He is also the former U.S. Assistant Secretary of State for East Asian and Pacific Affairs. Kurt, it's great to see you. Thank you for joining us.

In your new report, you say that China is a winner. China is emerging from the Hormuz crisis as a relative winner, at least for now. So, in macro terms, first, could you walk us through why?

KURT CAMPBELL, CHAIRMAN AND CO-FOUNDER, THE ASIA GROUP: Great. Well, first of all, it's wonderful to be with you tonight.

So, we took on this report in the Asia Group because we believe that the region perhaps affected the most from the Hormuz crisis was the Indo-Pacific, and as we looked at the key economies, Japan, South Korea, India, China, the United States, what we saw quite clearly was that China had taken the steps in advance to create buffers, to create diversification of variety of energy sources, and to create holdings of capacity that would potentially come in handy in a crisis, and that exact, that's exactly what's happened.

So, China has the resilience and the capacity to withstand even relatively substantial closures. What we also found, however, is that although for now China is a winner, if this continues, they, along with other countries in Asia, particularly Indonesia, the Philippines, South Korea, and Japan will be hurt as well.

So, I think China probably has some interests behind the scenes to try to encourage this conflict to come to a close.

STOUT: And let's now zero in on a couple affected industries, one by one, you know, one of course, petrochemical and plastics. There has been, across Asia, especially markets like South Korea, Japan, but also in China, a shortage of naphtha and that was the crude derivative used to make plastics. China sourced a lot of it through Hormuz. So, how did China manage that shortfall?

CAMPBELL: Well, look, you know, as you indicate, everyone thought in some respects that the Strait and the Gulf was a one company town, just petroleum and natural gas, but of course, what we've seen over time is that there are a number of capacities that come from the Persian Gulf that are quite significant to the global economy, helium, sulfur, and as you mentioned, naphtha.

Japan, for instance, had almost no reserves and is now, frankly, running on empty. China in almost every one of the key commodities that we are seeing shortages of on the global scene has stocks that they have been able to draw down over the course of the last several months.

Now, I must say, some of those supplies are growing short, and so even China is starting to feel some of the pressure now as this conflict heads into its fifth month.

STOUT: Interesting, you know, China's not immune to shortages of not just energy, but naphtha, also you mentioned helium just now, which is key for the semiconductor manufacturing industry, but China can work around that and secure supplies, it has, as you said, the capacity, it's also been diversifying its sourcing.

I want to ask you about green technology, because throughout this crisis, you know, during this war, China's clean tech manufacturing, its green economy, it continued to hum.

So, could you -- could you give us your thinking here, like how China's push for green energy and that strategy has shielded it from the war?

CAMPBELL: Exactly right, Kristie. You've just summarized it exactly the way this has played out, and I think what we are going to see after this crisis.

First of all, despite what anyone says in the United States or elsewhere, we are not returning to the situation in the Gulf before the conflict, things have fundamentally changed. There will likely be a toll or fees. There's likely to be higher tension for a considerable period.

What that means is that almost every country in the world is going to look to diversify other sources of petrochemicals and gas and diesel, but as importantly, more reliance on green energy and green technology.

STOUT: And Kurt, looking ahead, what are the political ramifications here, is China going to emerge from this crisis not just economically stable, relatively speaking, especially compared to its Asian neighbors, but also politically stronger, as it's seen as the "Reliable power" here in the region?

[02:10:13]

CAMPBELL: Yes, again, great question. I think what we're going to see first of all is other countries in Asia that are facing more pressure are going to rely on China for more support in the period following the crisis as the global economy rebounds.

But it is also the case that I think quietly behind the scenes Asian countries are careful to talk about it too directly, but I think they hold the United States responsible for launching a war without a very good idea of its end game.

China has played its hand very carefully behind the scenes, has encouraged negotiations, has been a careful interlocutor, I think they will likely emerge from this being seen as a more steady player. I don't think that's an American strategic interest, but I think that might be a rap reality that we will face.

STOUT: Yes, it's interesting, you know, many countries here in Asia had already begun hedging themselves closer to China, and as China plays its, as you said, steady hand during the Hormuz crisis, seems like that trend is just going to continue, or even grow.

Kurt Campbell, we're going to leave it at that. Thank you so much for joining us here on the program, and take care.

CAMPBELL: Thank you, Kristie, really appreciate it.

STOUT: Now, the U.N. refugee agency is warning of a, "Dramatic surge in relief needs in Venezuela as the country struggles to recover from two deadly earthquakes." A Wednesday marks one week since the quake struck back-to-back. The death toll it has climbed to more than 1900 people. The port in La Guaira, one of the hardest hit areas, has been turned into a makeshift morgue, where families are trying to identify their loved ones among hundreds of coffins.

The rescue efforts go on, aided by crews from around the world, and Venezuela's acting president shared this video of a rescue team from Jordan pulling a 3-year-old boy from the rubble of a collapsed building early on Tuesday, incredible.

Now, officials, they say nearly 16,000 people have been affected or displaced by this disaster. The government has opened dozens of temporary shelters, but some people are still staying out on the streets, simply too scared to go back into their homes.

And adding to this frustration, many Venezuelans have been forced to dig through the rubble with their bare hands, while heavy equipment that could be helping them sits nearby, going unused.

Our CNN's Isa Soares has more.

(BEGIN VIDEOTAPE)

ISA SOARES, CNN CORRESPONDENT (voice-over): With nothing more than borrowed tools, Davis Ramos (ph) digs through the rubble. The twin mattresses of his two little girls are within sight, and he anchors his strength in knowing that soon he will hold them close, even if it's a final goodbye.

DAVID RAMOS, VENEZUELAN RESIDENT (through translator): I can't think about crying right now. I can't bear the thought of it, it tears my soul apart because tears won't move a stone.

SOARES (voice-over): While we hear rescue team from North Carolina arrive looking for signs of life or death.

JACK THORPE, U.S. VOLUNTEER, RESOURCE RESCUE INTERNATIONAL: I know that we have still been finding people alive in these -- in these buildings, so I'm not ready to give up yet.

SOARES (voice-over): Almost a week since those fateful back-to-back earthquakes, hope of finding survivors is fading fast.

But in the midst of unimaginable grief, a moment of compassion and humanity between an American rescuer and a grieving Venezuelan father. The scene here in La Guaira is apocalyptic, with countless buildings pancaked by the ferocity of the quakes, and while families wait for answers, heavy machinery sits idle.

SOARES (through translator): Sir, why is the machine not on? UNIDENTIFIED MALE (through translator): I don't have fuel.

SOARES: He doesn't have petrol, he doesn't have fuel. I mean, tell that to the families.

SOARES (voice-over): A sorry sight for one of the world's largest oil reserves. Hassell Mendoza has seen this firsthand. She traveled from Tampa, Florida, to search for her loved ones.

HASSELL MENDOZA, FAMILY MISSING AFTER EARTHQUAKE: This guy, you know, work with their nails.

SOARES: Their hands.

MENDOZA: Yes, their hands, they try to do everything without nothing. They don't have, you know, shoes, they don't have machine-like drills, big drills that you need. They don't have sensors, they don't have anything.

SOARES (voice-over): We walk from building to building, the scale of destruction stretches for blocks, around every corner, a house of horrors.

[02:15:10]

Still, Venezuelans did with rickety tools, shovels, and buckets.

SOARES (voice-over): As we depart La Guaira, an arresting scene of casket after casket, and of overwhelming loss.

Isa Soares, CNN, La Guaira, Venezuela.

(END VIDEOTAPE)

STOUT: Search efforts continue across Venezuela, and charities are on the ground providing aid to those affected. For more information about how you can help the earthquake victims, please go to CNN.com/impact or scan the QR code on the screen.

Now, Moscow is feeling the sting as Kyiv strikes deep inside Russia, and still ahead here on CNN NEWSROOM, we have the latest on the Kremlin's growing fuel crisis after major Ukrainian drone attacks.

Plus, we'll go live to South Africa, where the so-called deadline for migrants to leave the country has now passed.

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[02:20:33]

STOUT: Welcome back. Now, Ukraine is increasingly trying to take the war on to Russian soil, ramping up large-scale drone attacks. In addition to targeting the Kremlin's oil refineries, Kyiv is again claiming it hit one of Russia's largest satellite communication centers near Moscow. Our CNN's Nick Paton Walsh has more on Ukraine's expanding drone assault inside Russia. (BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice-over): Hell is still nightly for Ukrainians.

Here are drones slamming into Zaporizhzhia, where strikes killed one, injured five. But again Monday night, while Ukraine was dragging its injured from the rubble, they fired about 250 more drones back at Russia than were fired at them.

Four hundred 419, 60 of them at Moscow, this video apparently showing the moment a drone impacted, near where Russian officials said a six- month-old baby was among the two Russian dead that night.

Very few images of the damage to Moscow emerged, where a space communications center was struck in Dubna. A lot of video actually came from Ukraine's president, flaunting the damage the Kremlin has instructed its law enforcement to hide, Russian city skies blighted more and more like Ukrainian cities, and scenes like this devastating attack on a Moscow oil refinery two weeks ago shattering the scents in the capital of Putin's war of choice being something far away that others fought, now forced to admit more times than he would ever like in the last month to the problems Russians already know about, like gas shortages.

PRESIDENT VLADIMIR PUTIN, RUSSIA (through translator): You are well aware that problems persist for both drivers and businesses. It's not always possible to find the required grade of fuel at present.

WALSH (voice-over): Ukraine released footage Tuesday of drone units who said they had targeted Moscow's specific anti-drone defenses, making the route to the capital easier.

But it is not just Moscow under pressure. The peninsula of Crimea battered hard. It's isolation, a key Ukrainian goal, achieved through blowing bridges, trains, roads, blackouts, and more gas queues.

The frontline, brutal battles remain, but the story has changed. Ukraine, less the victim, more the disruptor, hoping to keep Moscow off balance long enough until it falls.

Nick Paton Walsh, CNN, London.

(END VIDEOTAPE)

STOUT: A manhunt is underway across Monaco and France after a bomb exploded on Monday, injuring three people. A CNN affiliate BFMTV reports that officials believe this was an assassination attempt targeting a Ukrainian real estate tycoon. The attack it has shaken Monaco, a city state known as a playground for the rich. We have more now from CNN's Melissa Bell.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Police are now on the hunt for a man they say planted a parcel bomb outside this high-end residential building in Monaco. Police say his apparent target, 58-year-old Vadym Iermolaiev, a Ukrainian-born oligarch who renounced his Ukrainian citizenship in 2019 for tax reasons and moved to Monaco, according to French affiliate BFMTV.

The motive of the attempted assassination remains unclear. The Monaco prosecutor general has ruled out terrorism for now.

STEPHANE THIBAULT, MONACO PROSECUTOR GENERAL (through translator): We have not apprehended him, but in coordination with French authorities, we are pursuing him in order to identify and apprehend him. I hope rapidly, given the means that we are deploying, I hope this could happen quite quickly.

BELL: Details are emerging about Vadym Iermolaiev. He made his fortune mainly in real estate in the post-Soviet transition period, and then gave up his Ukrainian citizenship in 2019 telling the press that it was for tax reasons that he'd chosen to become a Cypriot national.

He was then sanctioned by Kyiv in 2023 over allegations that he'd done business in Russian-occupied Crimea, allegations that he denied.

BELL (voice-over): The small city state of Monaco itself is still in shock.

UNIDENTIFIED FEMALE (through translator): I went out onto the terrace, there were people screaming and running, then the ambulance arrived, and I didn't know what it was, because there was no smoke or fire, so I wasn't sure, but I knew there had been an explosion, because it was really loud. The whole building shook a bit, the windows, everything.

[02:25:03]

UNIDENTIFIED FEMALE (through translator): I went outside for some fresh air, and heard a sound like a clap of thunder. I didn't realize what it was. Yes, it's unsettling. Anywhere, it's unsettling, that's for sure. Especially since we aren't used to this sort of thing in Monaco.

BELL (voice-over): A city better known for its wealth than for its crime rate. Melissa Bell, CNN, Paris.

(END VIDEOTAPE)

STOUT: You're watching CNN NEWSROOM coming to you live from Hong Kong.

And still ahead, Mexican fans ready for a fiesta, the latest World Cup results, and a look ahead to the next big showdowns.

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[02:30:14]

KRISTIE LU STOUT, CNN ANCHOR OF "CNN NEWSROOM": Welcome back. Now, the leader of South Africa's anti-migrant movement says demonstrations will be held each week until the group's objectives are satisfied. Protesters, some draped in flags and wielding weapons, marched across cities on Tuesday to mark a deadline that they had set for undocumented migrants to leave.

Thousands of African nationals had already left the country ahead of the so-called deadline. At least several people have been killed and thousands of foreigners have been driven from their homes and have seen their businesses and their property vandalized.

Noma Masiko-Mpaka is a human rights activist and a South Africa researcher at Human Rights Watch and she joins us now live from Pretoria, South Africa.

Noma, thank you so much for joining us here on the program. As we have been reporting the last few days here on CNN and screening to our global audience, hostility and anger against migrants is rising in South Africa. Why is this happening? What are the leading factors behind this rising wave of xenophobia?

NOMA MASIKO-MPAKA, HUMAN RIGHTS ACTIVIST: So, I mean, there are a number of reasons. I think chief among them is the socioeconomic conditions in the country. We have rising inequality in the country, high unemployment that hovers around 40 percent, youth unemployment around 60 percent, issues around access to basic services, high criminality, high homicide rates and femicide rates.

So, all these factors contribute to the socioeconomic conditions of South Africans who then, unfortunately, scapegoat foreign nationals in the country for their material conditions, when in fact they should be targeting their anger and frustrations at their government for the government failures.

I think also what you're observing, of course, we're in election season in South Africa. We have elections that are scheduled for November this year. Migration often is a political tool that is used to score political points. And I suppose for ordinary South Africans as well, they can use to kind of express their frustrations because they know that political elites would pay attention because they would want to get votes.

LU STOUT: Got it. So, factors driving this are both economic and political. And we have now passed the so-called deadline for undocumented migrants to leave the country. So, what is the state of tension in South Africa today? And are we going to see more and more protests going forward?

MASIKO-MPAKA: So, I mean, thankfully, we're grateful that, you know, we didn't have this large-scale, widespread violence as a lot of us were concerned. But, of course, there were moments or isolated incidences across the various provinces where there was, you know, looting of shops or attempts to loot shops.

There was still kind of your intimidation and your harassment that we observed. There were clashes between police and migrants. I think, by and large, the police presence was quite wide and they were able to kind of stabilize things.

Unfortunately, there was one reported case of a death linked to the march that I believe the police are investigating. So, as days go by, I guess we'll be able to get more confirmation around that particular death because one death is too many. And I think what is also concerning for us as a human rights organization is that the vigilante group at the heart of these anti-immigrant protests, March and March, their leader announced yesterday that there will be marches every week on Thursday until every last undocumented migrant in South Africa has left.

So, again, we had, you know, the arbitrary day of June 30 as a sort of a warning. Now, again, we have every Thursday, effectively, there'll be these large-scale marches across the country. That leaves us, of course, with more concerns about what that will look like in terms of the ensuing humanitarian crisis that we're seeing of Malawian nationals and others, but also, of course, the human rights concerns such as intimidation, harassment when these marches take place.

So, that's of particular concern for us.

LU STOUT: Absolutely. You mentioned these vigilante movements, these groups that have emerged, organizing these nationwide protests, promising more protests. Could you tell us more, who is in these groups and how well mobilized are they?

MASIKO-MPAKA: So, I mean, a lot of them, they call themselves ordinary citizens who are, you know, calling for South Africa to put -- the South African government to put South Africans first. But this was announced just yesterday, interestingly, by the acting minister of police, that they believe that these groups are politically motivated.

[02:35:00]

And secondly, there are, of course, those ethnic mobilizations, because a lot of them are of the Zulu culture. And as we know, the KwaZulu-Natal area, where it is majority Zulu people, that has been the epicenter of these marches. So they're calling for ordinary South Africans to be prioritized for their socioeconomic conditions to improve.

But we believe that there are political motivations. And often, I think, what is xenophobia, they often, you know, label as activism or nationalism, when in fact it is vigilantism and xenophobia.

LU STOUT: Yeah. Noma Masiko-Mpaka of Human Rights Watch, thank you very much indeed for joining us and telling us about the many layers behind this xenophobic violence that we've seen grip South Africa. Noma, thank you. Take care.

MASIKO-MPAKA: Thank you.

LU STOUT: Mexico have booked their ticket to the men's World Cup Round of 16. The final whistle blew late on Tuesday. Mexico, which is co-hosting the tournament, defeated Ecuador 2-0 in Mexico City. In New Jersey, France breezed through to the Round of 16 after a 3-0 victory against Sweden. And Les Bleus are now one step closer to their third consecutive men's World Cup final.

A late goal from, well, who else? Erling Haaland. That was enough to see Norway through to the next round after a thrilling match against Ivory Coast. Now, Wednesday offers yet another stacked lineup of must- watch matches.

England's Three Lions take on the Leopards of the Democratic Republic of Congo. Belgium will be facing Senegal. And the U.S. men, they will try to advance past Bosnia and Herzegovina in a primetime showdown.

CNN's Coy Wire has got all the details.

COY WIRE, CNN SPORTS ANCHOR: The excitement around the U.S. men's national team ahead of their match with Bosnia and Herzegovina continues to build. We have seen sold-out stadiums. We've seen ticket prices exploding. Now we're about to see massive TV ratings. This will be the first knockout match that Americans have played ever in the primetime.

The story is no longer can America get out of the group. The story is now, will this become the summer America fell in love with its team? It's a big emotional narrative. Had a practice behind me a bit ago. A few players told me they're fully aware of the magnitude of this moment. It isn't just survive in advance. It's more like inspire in advance, embracing how America is rallying around them. And they know how tough this match with Bosnia and Herzegovina will be. Listen to this.

(BEGIN VIDEO CLIP)

SERGINO DEST, U.S. MEN'S NATIONAL TEAM: It's a knockout round. And if you want to win this trophy, the World Cup, you've got to beat everyone, you know, and be able to beat everyone. So if it's from Europe or Africa, it doesn't matter. We just -- we just want to win.

FOLARIN BALOGUN, U.S. MEN'S NATIONAL TEAM: We know we're going to need to be creative. We know we're going to need to be intense like we have been, you know, so far. And, you know, there's no doubts we can go out there and win.

GIO REYNA, U.S. MEN'S NATIONAL TEAM: You have very high expectation for ourselves for the rest of this tournament. And yeah, we don't want this to be over.

(END VIDEO CLIP)

WIRE: Now the U.S. hasn't beaten a European opponent since 2021. It's been 12 matches since they beat, guess who? Bosnia and Herzegovina in a friendly -- now, this is a huge coaching moment for Mauricio Pochettino. He's won big club matches. Can he now guide America deeper than anyone has in 24 years?

He got annoyed with a line of questioning about their loss to Turkey. They won their group and he's had to make some strategic decisions. Christian Pulisic, the engine that makes this American attack hum, coming off an injury. He played about 30 minutes on Thursday against Turkey. And now, Pulisic would probably play --

LU STOUT: All right. Unfortunately, we lost that report from Coy Wire there. Apologies for that. We'll give you the latest, of course, in the minutes and hours ahead here on CNN, including a hint of what's to come. After the break, we're going to look into how China's humanoid robots are now available to rent. We've got more now on the trend and how it's an indicator of China's humanoid boom. Next on "CNN Newsroom."

(COMMERCIAL BREAK)

[02:43:58]

LU STOUT: Welcome back. Now, China is pioneering a growing trend in technology, renting robots. Users on Chinese social media can use platforms to rent a robot, rent a robotic humanoid for just a few hundred bucks. Chinese state media reports that there are more than 153,000 businesses offering this as a service. But there are still a lot of factors keeping the trend from going truly global.

Now, most robots, they can't perform more than one specific task because they lack experience or physical world data. And the price of parts and having to keep them at such a small scale, they also limit the industry's growth. Now, let's talk more about this and also China's humanoid robots in general with Rueben Scriven.

He's a Research Manager at Interact Analysis. Rueben, thank you for joining us here on the program. As just mentioned and as reported by my colleagues, Fred He and John Liu on CNN.com, China's robot rental market is taking off. People are renting robots there. What do you make of this trend and what does it say about China's humanoid market?

[02:45:00]

RUEBEN SCRIVEN, RESEARCH MANAGER, INTERACT ANALYSIS: I think the humanoid market in general is an interesting one. It's a story of two halves. So there's growth outside of China and growth in China. In China, we're seeing phenomenal growth in the humanoid market and I think one aspect of this is that a lot of the deployments are actually in the entertainment space rather than in real world or kind of industrial applications.

So the kind of rental market is really tapping into this entertainment market. It's definitely, as you can see, quite hyped in social media. You can go on Jingdong or Alibaba and rent these robots. That being said, I think it's important to kind of base this in reality where there is only about, or was last year, about 20,000 robots produced.

So even though there might be 150,000 companies renting them, there are far fewer robots actually being produced than those who are renting them. So I think it's an interesting dynamic here for sure.

LU STOUT: Yeah. It's good to be realistic about the applications here. I mean, yes, there are serious robots being used, industrial applications in China and elsewhere. But in terms of humanoids, they're kind of being used for entertainment purposes in China, at CCTV gala shows, doing kung fu, participating in so-called marathons, et cetera. But when you look at the technology today, how do China's humanoids compare with those built by the United States or by companies in Europe, and which ones are superior?

SCRIVEN: So China definitely has an advantage here. Not only are they kind of developing their industrial base, but one thing the government is doing very well is subsidizing the training of the robots. So this is one of the biggest limitations in the humanoid space, and particularly around physical A.I., is the training data.

If you have a Large Language Model, like ChatGPT or whatever, you are able to train that on the internet. However, when it comes to robotics, you've got to train on real world data. And that's really the limiting factor here with these robotics. And what the government is doing in China, not only are they subsidizing the investments, but also the training of these robots by subsidizing the facilities used to mimic, say, household applications, industrial work, and then all of the cameras, et cetera, to capture that data that feeds into the models to produce them.

So I would say it's really that training data piece, and then the subsequent rental market that's collecting all of this real world data that's really giving the advantage to China, rather than kind of purely a hardware piece here.

LU STOUT: That's interesting. The Chinese government support as well as, as a result of that, having that real world training is giving China the edge. And yet, China does have some disadvantages when it comes to humanoid development as well. You know, there's also the issue of safety and regulatory concerns that government officials in China share with officials in the West.

But on that front, in regards to regulatory issues, how do you compare the East versus the West?

SCRIVEN: So I think one thing that China does very well is kind of stimulate demand and really have that national strategy around robotics, which kind of lacks in the West. And what we're seeing in the West is a much more stringent view from a regulatory standpoint.

Now, really, it's kind of the soft regulations that are going to be the biggest limiting factor in Europe and North America. So I think insurance companies, you see all these videos of the humanoids running around and potentially stepping on people's toes and walking into people. And whilst this is obviously very limited cases, it sends a message to some of those insurance companies.

So I think one of the biggest barriers in the West is not necessarily going to be the technology or the models, but the regulatory environment from which they're being deployed into. So that really, for us, is kind of the big stark contrast. Whereas in China, it certainly is the case that there will be regulatory challenges. We think it will be more relaxed than in Europe and North America.

LU STOUT: And outside looking in, why do you believe China is going all in on humanoid robots? As we've established, the industry has the full active backing of the Chinese government. So what's the long-term strategic goal here? Is this about high-tech competitiveness against the United States? Is this addressing demographic decline issues? What is China's end goal?

SCRIVEN: I think it's both. So obviously, there's the demographic issues which are resulting in more robotics being used in China. Already, China accounts for about 60 percent of industrial arm use, kind of the robot arms that you see. So China accounts for about 60 percent of that globally.

So a huge proportion of robots already sold in China. And certainly, as well, getting ahead of that technology, owning the supply chain, similar play to what we've seen in solar and battery technology as well.

LU STOUT: All right. Rueben Scriven, really appreciate your analysis. I hope we get a chance to talk again soon. Thank you so much and take care.

SCRIVEN: Thank you very much.

LU STOUT: All right. Keep it here (ph). You're watching "CNN Newsroom." And up next, NASA is on a mission to stop a space observatory from falling out of orbit.

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Coming up, we got a look at the space agency's plan to rocket the satellite to safety.

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LU STOUT: Welcome back. Now, President Trump and GOP leaders are calling on Congress to pass legislation that limits birthright citizenship. Now, this comes after the Supreme Court ruled that the Trump administration could not use executive power to end that status.

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REP. MIKE JOHNSON, (R-LA) HOUSE SPEAKER: It certainly is time for us to do everything that's possible. I think it's clearly an issue that merits the attention of Congress. I don't know what the remedy is, how to define it or the timeline. It would be premature for me to project that, but I will tell you that it's a big concern with the American people because it's been abused.

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LU STOUT: In a 6-3 decision, justices argued that under the Constitution, children born in the U.S. become citizens at birth even if their parents are not citizens. And despite the ruling, the Justice Department is directing all U.S. attorneys to prioritize investigations and prosecutions of so-called birth tourism schemes.

The president argues foreign nationals intentionally travel to the U.S. to give birth in order to secure their children's citizenship. Now, NASA will pay at least $0.5 billion to three companies as part of its plans to build a base on the moon. The agency has announced plans for missions to deliver landers, rovers, buggies and other cargo to the moon. Now, this is Phase I of a three-part plan to build a $30 billion permanent lunar settlement and NASA says it hopes astronauts will eventually live and work on the moon.

Now, NASA is teaming up with an American company to stop one of its oldest working spacecraft from re-entering Earth's atmosphere in flames. Our CNN Space and Science Writer, Ashley Strickland has more.

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ASHLEY STRICKLAND, CNN SPACE AND SCIENCE WRITER (voice-over): An American startup has partnered with NASA in a race against time to save one of NASA's oldest working spacecraft. More than 20 years ago, NASA launched The Neil Gehrels Swift Observatory containing multiple telescopes to study gamma ray bursts, the most powerful explosions in the universe.

After decades circling the earth, providing invaluable research, the observatory is now rapidly dropping altitude and is expected to sink into Earth's atmosphere later this year, unless it can be reversed.

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GHONHEE LEE, CHIEF EXECUTIVE OFFICER, KATALYST SPACE TECHNOLOGIES: From a technological perspective, we've finally gotten to this point where we don't just have to throw away a $500 million asset as it burns up. We've gotten to the point where we have robotics, maneuverability, autonomy, to where we can actually make different decisions that were not available even five years ago, say, hey, we would really like to keep this spacecraft, the Swift, alive for another few years. Let's see what we can do.

STRICKLAND (voice-over): LINK is a robotic servicing satellite created by Katalyst Space Technologies. This week, a Stargazer jet is set to fly over the Pacific Ocean and launch a Pegasus rocket carrying LINK and bring it closer to Swift. Over several months, the robotic spacecraft will grab Swift and bring it into a higher safer orbit.

But without any recent data or photos of the Swift spacecraft, the mission is extra tricky. Katalyst engineers have been using a testing area called "The Void" with a model of Swift and LINK along with a computer simulation of the mission to plan it out exactly.

CHANDLER CASEY, GUNS NAVIGATION CONTROL ENGINEER, KATALYST SPACE TECHNOLOGIES: The hardest part is just kind of that uncertainty there, especially as you get close. As you can imagine, this is a very difficult technical operation to be able to grab something so far away just through semi-autonomous cameras and robotic systems.

STRICKLAND (voice-over): NASA says they could have allowed Swift to burn up in the atmosphere, but saw this as an opportunity to demonstrate future space exploration capabilities and save Swift. LEE: Our goal is to have hundreds of robotic spacecraft, just like this one, up in orbit, that are constantly maneuvering between low earth orbit and the moon, building things moving things, and that's something that NASA as well as other parts of the government can take advantage of to buy things as a service rather than having to re- invent the wheel each time.

STRICKLAND (voice-over): Ashley Strickland CNN.

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LU STOUT: Now, sources have revealed to CNN the apparent location of Taylor Swift and Travis Kelce's highly anticipated wedding celebrations, and it is the world famous Madison Square Garden with preparations seemingly already underway. Our sources say the first event is a rehearsal this Thursday, but with the larger wedding celebration, that's planned for Friday, but you got to keep in mind this information could be a decoy meant to throw the media off the scent. And we're told approximately 1,000 guests are expected to attend the festivities. You heard it here.

Thank you for watching. I'm Kristie Lu Stout in Hong Kong. "CNN Newsroom" continues with Polo Sandoval, after the break.

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