Published: Sat, June 29, 2019
Markets | By Otis Pena

Just in! Trump lifts Huawei ban, to resume trade talks with China

Just in! Trump lifts Huawei ban, to resume trade talks with China

Questions over the enforcement of any possible trade deal played a large role in collapsing talks in May, which resulted in both the US and China raising tariffs.

Xi Jinping told Trump that he hopes the United States can treat Chinese companies fairly, Xinhua reported.

Mr. Trump took questions from reporters for over an hour at a closing press conference.

Trump had threatened to extend existing tariffs to nearly all Chinese imports into the United States if the meeting brought no progress on wide-ranging US demands for reforms.

He said the Commerce Department would consider in the next few days whether Huawei will be removed from its "entity list".

The outcome was likely to be seen as a win, with experts cautioning ahead of the meeting that a full agreement was unlikely, but a truce that avoided a new tit-for-tat round of tariffs would be positive. Xi Jinping said that on issues of sovereignty and respect, China must safeguard its core interests.

"Cooperation and dialogue are better than friction and confrontation", he added.

"We won't be adding an additional tremendous amount, 350 billion dollars left which could be taxed, tariffed we are not doing that, we will work with China on where we left off.China is going to be buying a tremendous amount of food and agricultural product and they will start that very soon, nearly immediately".

The United States says China has been stealing USA intellectual property for years, forces US firms to share trade secrets as a condition for doing business in China, and subsidizes state-owned firms to dominate industries.

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Zhu Jianrong, a professor at Toyo Gakuen University of Japan, said the results of the meeting showed the inseparable relations between the United States and China, and they will benefit from cooperation and lose in confrontation.

Talks collapsed in May after Washington accused Beijing of reneging on reform pledges.

Tariffs that Mr. Trump already slapped on China will remain in place for now.

The final statement signed by the leaders flags the intensification of geopolitical and trade tensions but does not include any mention of growing protectionism, in the context of the growing trade tensions between the US, China and other countries. "We're talking about equipment where there's no great national security problem with it".

The United States has pressed its allies to shun Huawei in their fifth generation, or 5G, networks on security grounds, and has also suggested it could be a factor in a trade deal.

Mr Trump said the Huawei situation would be dealt with "at the very end" of trade talks between the United States and China.

It is possible a trade deal between the U.S. and China is needed to fully end the former's ban on Huawei.

The crunch talks on the damaging trade war between the world's top two economies came on the sidelines of a meeting of the G20 in Osaka in Japan, with all eyes on whether the pair would call a truce.

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