Trump says that Huawei could be 'dangerous'; to include in U.-China trade deal

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WASHINGTON / BEIJING (Reuters) – President Donald Trump said, on Thursday, that complaints against Huawei Technologies Co Ltd could be resolved within U.-China's trade framework, while simultaneously calling the Chinese telecommunications giant "the very dangerous. ”

Last week effectively banned US businesses doing business with Huawei, the world's largest telecommunications appliance manufacturer, citing national security concerns.

“You look at what they have done from a security point of view, from a military point of view, it's very dangerous,” Trump said in statements at the White House. “If we dealt, I could imagine that Huawei could be included in some form or part of it.”

Trump predicted a rapid end to the trade war with China, although there were no scheduled high-level talks between the two countries since the final round of negotiations in Washington two weeks ago.

The components of S&P technology and industrial companies, the conductors of the trade spirit, fell by more than 2% on Thursday as the market collapsed in a sign that the conflict was not just about trade but about people regulating global technology.

Earlier on Thursday, US Secretary of State Mike Pompeo, chief executive of Huawei, Ren Zhengfei, pointed out that he had been persuaded by a lack of association with Beijing's government, which he said was a security risk.

“The company is heavily connected not only to China but to the Chinese Communist Party. And that connectivity, that links, puts American information at risk of crossing those networks, ”he said.

Huawei repeatedly denied that it is governed by Chinese government, military services or intelligence.

The Chief Financial Officer of Meng Wanzhou, who is Ren's daughter, was arrested in Canada in December and is facing extradition to the US on charges she was trying to defraud global banks about Huawei's relationship with a company that is operating in Iran. She and the company refuse the charges.

Tech companies around the world are coming with U.S curbs on the company. Japanese conglomerate Panasonic Corp said that it stopped shipments of several components Huawei, a day after British chip designer ARM did the same thing, a Chinese company might be applying new chips for making smart phones.

When asked if he believes that more businesses would work with Huawei, Pompeo told CNBC in a Thursday interview: “We do. We are working in the Department of State to ensure that everyone understands the risks. ”

U. CA. FOR TECHNICAL PERSONS, FARMERS

US legislators moved on Wednesday to provide around $ 700 million in grants to assist US telecommunications providers with the cost of removing Huawei equipment from their networks, and to prevent the use of equipment or equipment. services from Huawei and Chinese ZTE telecommunications firm in next generation 5G networks.

On Thursday, Chinese Ministry of Commerce went back.

“If the United States wants to continue trade talks, they should show seriousness and correct their wrong actions. Negotiations can only continue on the basis of equality and mutual respect, ”said Gao Feng spokesman with a weekly briefing.

“We will closely monitor relevant developments and prepare necessary responses,” he said, without adding to it.

Trump gave tariffs for $ 200 billion for Chinese goods on 10 May and threatened to charge tariffs up to 25% on an additional list of Chinese imports worth around $ 300 billion, encouraging China with its own levies.

Sources have said that trade talks stopped after China had deleted commitments from a draft agreement to change its laws to enact new policies on issues from the protection of intellectual property to mandatory technology transfers.

No resolution in sight, US Secretary of Agriculture, Sonny Perdue, announced Thursday, a $ 16 billion aid program to help US farmers injured in the conflict, to use some funds to open markets outside China. to U products. Farmers were among the most difficult farmers at the trade war.

Retailers, including Best Buy Co Inc and Walmart Inc, also warn that tariffs will rise to consumer prices. The latest round will cost $ 831 each year for a typical American family, according to Thursday's research from the New York Federal Reserve Bank.

Of a list of 20 companies compiled by Goldman Sachs which derive much of their sales from China, the average decline in stock prices from Trump's tweet on 5 May shows that tariff increases were approaching almost 15% compared to a fall of 4.5%. for the wider S&P 500 Index.

FLASHPOINTS

In Thursday's interview, Pompeo confirmed a New York Times report on Wednesday that China was using high-tech surveillance to try to establish invasive policing that could be used to its minorities, including ethnic Muslim Uighurs, who were t mitigation. t

The United States is considering sanctions such as Huawei's Chinese video surveillance firm Hikvision Digital Technology Co Ltd on the issue, said someone who was made aware of the issue.

Also interfering with tension, US military said that it launched two Naval ships through the Taiwan Straits on Wednesday, asking spokesman Lu Kang, Chinese Ministry of Foreign Affairs, to submit representations.

Taiwan is one of an increasing number of flash points in China-China relations, including China's increasingly muscular military posture in the South China Sea, where the United States patrol also makes freedom of navigation.

PHOTO FILE: Seen containers shipping at port in Lianyungang Province, Jiangsu, China September 8, 2018. REUTERS / Stringer

Trump took defensiveness as part of the “First First” work program which focused on rebalancing global trade.

It is expected that he will meet Chinese President Xi Jinping at the G20 summit in Japan from 28 to 29 June, about the time the next levies could be ready, according to calculations Secretary of State Steven Mnuchin.

Reporting by Doina Chiacu and Susan Heavey in Washington, and Stella Qiu and Kevin Yao in Beijing; Writing with Andrea Shalal and Sonya Hepinstall; Edited by Susan Thomas and Tom Brown

Our Standards:The principles of Thomson Reuters Trust.

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