TwitterFacebookPinterestGoogle+

US charges against Huawei could inflame China trade talks

WASHINGTON (AP) — The Trump administration’s unveiling of criminal charges against the Chinese tech giant Huawei has complicated high-level talks set to begin Wednesday in Washington that are intended to defuse the trade war between the administration and Beijing.

The Justice Department charged Monday that Huawei had violated U.S. sanctions against sales to Iran and stolen trade secrets from T-Mobile, a U.S. partner. Those charges cut to the heart of some of the administration’s key complaints about China’s trade practices.

Analysts said the trade talks would likely proceed, but reaching any substantive agreement would probably be harder. And unless the two sides can forge some sort of accord by March 1, U.S. tariffs on $200 billion of Chinese imports are set to rise from 10 percent to 25 percent.

“The Chinese will keep talking,” said David Dollar, a senior fellow at the Brookings Institution and a former U.S. Treasury official. “They won’t be happy with the Justice Department action, but I think they would like to keep it separate from the trade talks.”

Representatives of U.S. business groups privately raised concerns that the administration’s actions could poison the atmosphere between the two sides. Any backlash in China against the indictment of Huawei, one of the country’s global powerhouses, could limit Beijing’s ability to agree to anything that might be seen as bowing too willingly to U.S. demands.

The Justice Department has also charged Huawei’s chief financial officer Meng Wanzhou. The United States is seeking to extradite Meng, who has been held in Canada since Dec. 1.

Sarah Sanders, the White House spokeswoman, was asked whether the criminal charges against Huawei were linked to the trade talks with China and amounted to a carrot-and-stick approach.

“No, those two things are not linked,” she said. “They are a totally separate process.”

This week’s negotiations were already facing low expectations.

“We are anticipating no big outcomes this week,” Erin Ennis, senior vice president at the U.S.-China Business Council, said Monday before the Huawei charges were announced.

The Trump administration, with support from U.S. businesses, wants China to make fundamental changes to its economy that China is reluctant to accept and that will be difficult to verify, analysts say. The administration has accused Beijing of deploying predatory trade tactics, ranging from requiring U.S. and other foreign companies to hand over technology in return for access to the vast Chinese market to outright cyber-theft.

Robert Lighthizer, the U.S. trade representative and lead negotiator in this week’s talks, wants China to toughen its protections of intellectual property and to stop unfairly subsidizing its state-owned enterprises.

“The scope of these talks will be the broadest and deepest in U.S.-China history,” Larry Kudlow, a top White House economic adviser, said Monday.

Yet reaching the kind of deal the United States wants could prove elusive if not impossible. Chinese officials deny that they force U.S. companies to transfer technology. And they regard the support of their state-owned companies and the acquisition of cutting-edge technology, much of it from abroad, as vital to China’s economic development.

U.S. companies in China say that forced technology transfers typically happen at the local level and stem from informal pressure by Chinese officials, which would make it difficult to verify whether Beijing has complied with any major agreement.

In previous rounds of talks, China has shown little inclination to yield to the administration’s demands.

“China has yet to show any indication that it is ready to address U.S. and global concerns about its structural issues,” said Scott Kennedy, a China specialist at the Center for Strategic and International Studies. “The two sides are pretty far apart.”

Beijing has previously offered to increase its purchases of U.S. products, notably soybeans and other agricultural goods as well as natural gas. This would help address Trump’s concern about the gaping U.S. trade deficit with China. Beijing could also open more industries to U.S. companies and pledge better protection for U.S. intellectual property. In return, China could press the U.S. to remove the tariffs that President Donald Trump imposed last year.

Derek Scissors, a China expert at the American Enterprise Institute, said that China would likely accept such a deal, if it were offered. Doing so would outweigh any concerns China has about Huawei.

“If they think they can get the deal that they want, they won’t cancel the talks over Huawei,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *

VIDEO NEWS

National Politics

2016 Orange County for Trump Chairman Keynotes “Tennessee Task Force 45” Rally in Memphis June 27th

MEMPHIS, Tn. (FNN NEWS) -  2016 Orange County for Trump Chairman and Florida National News…

U.S. Congresswoman Stephanie Murphy-Nominated High School Graduates Accepted to U.S. Service Academies

SANFORD, Fla. – U.S. Congresswoman Stephanie Murphy, a member of the U.S. Military Academy Board…

Rep. Soto’s Zika, Vector-Borne Diseases Prevention Bill Passes Congress, Heads to President’s Desk

Washington, D.C. – This week, Congress passed H.R. 345 the SMASH Act or “Strengthening Mosquito…

Governor Ron DeSantis Holds Roundtable on Timber Recovery with U.S. Secretary of Agriculture Sonny Perdue

TALLAHASSEE, Fla. – Today, Governor Ron DeSantis and United States Department of Agriculture (USDA) Secretary Sonny Perdue…

STATE & LOCAL POLITICS

Andrew Jeng Enters Florida House District 43 Race in Osceola County

KISSIMMEE, Fla. (FNN NEWS) - Former Kissimmee City Commission candidate and tech business owner Andrew Jeng…

FNN Politics and Power: Getting to Know Winter Park Mayor Steve Leary

WINTER PARK, Fla. (FNN NEWS) - Nestled in a treelined historic area just west of…

FAMU Announces Orlando Medical Marijuana Community Forum, June 11

TALLAHASSEE, Fla. – Florida A&M University (FAMU) ‘s Medical Marijuana Education and Research Initiative (MMERI)…

Governor Ron DeSantis Speaks at the 21st Annual Family Café in Orlando

ORLANDO, Fla. (FNN NEWS) -  Florida Governor Ron DeSantis spoke at the 21st Annual Family…

FNN SPORTS

  • TORONTO (AP) — Adam Silver reveals advice he’s given to Zion Williamson

MORE SPORTS NEWS

An error occured during creating the thumbnail.

U.S. Army Colonel Hal Kushner Named Honorary Pace Truck Driver for the Coke Zero Sugar 400

DAYTONA BEACH, Fla. – Retired U.S. Army Col. Hal Kushner, an area resident who served…

An error occured during creating the thumbnail.

Warriors beat Raptors 109-104 to even NBA Finals

TORONTO (AP) — The Golden State Warriors relied on a champion’s heart to overcome their…

An error occured during creating the thumbnail.

Analysis: Why the Raptors will win the NBA Finals

TORONTO (AP) — Last time Kawhi Leonard played Golden State in the playoffs, he was…

An error occured during creating the thumbnail.

Adam Silver reveals advice he’s given to Zion Williamson

TORONTO (AP) — NBA Commissioner Adam Silver says he has already offered presumed No. 1…

An error occured during creating the thumbnail.

New Hope for Kids Announce the Mascots for 26th Annual Mascot Games

ORLANDO, Fla. – New Hope for Kids has announced the Mascots that will compete in…

An error occured during creating the thumbnail.

Move Over, Kawhi and Drake: Toronto Superfan Nav Bhati Steals NBA Spotlight

TORONTO, Ca. (FNN SPORTS) - Now that the Toronto Raptors have clawed their way to…

BUSINESS NEWS

MORE BUSINESS NEWS

Trump Delays Imposing Tariffs on Auto Imports and Parts

WASHINGTON (AP) — Caught in a sprawling trade dispute with U.S. rival China, President Donald…

US to Add 30,000 Seasonal Worker Visas as Soon as This Week

WASHINGTON (AP) — The Trump administration plans to allow 30,000 more foreign workers temporarily into…

Shark Tank Star Daymond John, DWTS's Lindsay Arnold, Joey Fatone to Host Runway to Hope 2019 Gala

ORLANDO, Fla. (FNN NEWS) - Runway to Hope co-founder Attorney Mark NeJame announced on Facebook Wednesday…

Bank of America Raising Hourly Minimum Wage to $20

NEW YORK (AP) — Bank of America plans to raise its starting pay to $20…

Pinterest sets sites on $1.5B in first public share offering

NEW YORK (AP) — Pinterest, among a gaggle of tech companies planning to go public…

Gone in 6 minutes: an Ethiopian Airlines jet’s final journey

From nearly the moment they roared down the runway and took off in their new…

ENTERTAINMENT NEWS

  • “Once Upon a Time ... in Hollywood” star Brad Pitt is all smiles on the 2019 Cannes Film Festival red carpet for the film's premiere Tuesday, May 21. Photo: Patience Eding/Another Concept Magazine/Florida National News.
    CANNES, France (FNN NEWS) - [PHOTOS] 2019 Cannes Film Festival: ‘Once Upon a Time … in Hollywood’ Stars Electrify the Red Carpet (Photo: Patience Eding/Another Concept Magazine/Florida National News)

MORE ENTERTAINMENT NEWS

blink-182 and Lil Wayne Join Forces for Co-Headlining Summer Tour

LOS ANGELES, Ca. (LiveNation) — Multi-platinum, award winning artists blink-182 and Lil Wayne announced they’ll be hitting the road together…

Kevin Spacey appears at court for hearing in groping case

NANTUCKET, Mass. (AP) — Sporting a gray suit and glasses, Kevin Spacey appeared Monday at…

Taylor Swift asks Tennessee senator to support Equality Act

NASHVILLE, Tenn. (AP) — Taylor Swift says she’s kicking off Pride Month by asking Tennessee’s…

A diminished ‘Godzilla’ still bests ‘Rocketman,’ ‘Ma’

NEW YORK (AP) — The latest iteration of the Godzilla franchise took over the top…

Russians criticize heavily edited version of Elton John film

MOSCOW (AP) — Russian gay rights activists and cultural figures are criticizing the local distributor…

R. Kelly charged with 11 new sex-related crimes in Chicago

CHICAGO (AP) — Prosecutors charged R&B singer R. Kelly on Thursday with 11 new sex-related…

LIFESTYLE, TRAVEL & TOURISM

  • “Once Upon a Time ... in Hollywood” star Brad Pitt is all smiles on the 2019 Cannes Film Festival red carpet for the film's premiere Tuesday, May 21. Photo: Patience Eding/Another Concept Magazine/Florida National News.
    CANNES, France (FNN NEWS) - [PHOTOS] 2019 Cannes Film Festival: ‘Once Upon a Time … in Hollywood’ Stars Electrify the Red Carpet (Photo: Patience Eding/Another Concept Magazine/Florida National News)

MORE LIFESTYLE NEWS

Florida Republican Party Chairman, State Senator Joe Gruters to Keynote Orlando Republican Women Federated June Event

APOPKA, Fla. (FNN NEWS) - As the 2020 election season builds momentum, the Florida Republican…

Flagler County Republican Club Launches 2020 Election Season with Sweet Contest

PALM COAST, Fla. (FNN NEWS) - The Flagler County Republican Club's (FCRC) annual Blue Ribbon…

[PHOTOS] 2019 Cannes Film Festival: ‘Once Upon a Time ... in Hollywood’ Stars Electrify the Red Carpet

CANNES, France (FNN NEWS) - Quentin Tarantino's Once Upon a Time ... in Hollywood premiered…

[PHOTOS] 2019 Cannes Film Festival: Model Winnie Harlow Wows on the Red Carpet

CANNES, France (FNN NEWS) - Game-changing model Winnie Harlow, who rocked the world several years ago…

[PHOTOS] The Most Stunning Celebrity Looks from 2019 Cannes Film Festival’s Opening Night

CANNES, France (FNN NEWS) – Stunning celebrity fashion filled the red carpet on Opening Night…

Governor Ron DeSantis, Gary Sinise and Westgate Resorts Honor Thousands of Military Families

KISSIMMEE, Fla. (FNN NEWS) - Westgate Resorts, Gary Sinise and Florida Governor Ron DeSantis hosted thousands of military families in Kissimmee…