ARM cuts ties with Huawei, threatening future chip designs

• Washington will not impose new tariffs ‘for the time being’ and China will ‘immediately’ be given a list of goods the US wants to sell to reduce deficit
• American companies will meanwhile be allowed to sell to Chinese tech firm again as long as it does not involve parts that could threaten national security

China and the United States reached a trade truce after a high-stakes leaders’ summit on Saturday, with Washington agreeing to put on hold new tariffs on Chinese products and ease restrictions for American companies to sell to telecoms giant Huawei Technologies.

During talks on the sidelines of the

Please, Log in or Register to view URLs content!

gathering in Osaka, Chinese President Xi Jinping and his US counterpart Donald Trump also agreed to resume trade talks. Trump said the US would not impose new tariffs on US$300 billion worth of Chinese products “at least for the time being” – as the South China Morning Post and POLITICO

Please, Log in or Register to view URLs content!

.

In return, China would buy a “tremendous” amount of US goods to reduce the trade deficit, Trump said. Washington would “immediately” give China a list of the goods it wants to sell, the US president said at a press conference later in the day.

The biggest surprise was his statement that US companies would be allowed to sell to Chinese telecoms equipment maker Huawei again, as long as the business did not involve parts that could threaten America’s national security.

That could

Please, Log in or Register to view URLs content!

announced in May on American firms selling to Huawei. The Chinese company relies heavily on its American partners to supply key components for its smartphones and other products. But Huawei products will still be banned from the US market.

Trump said the decision on whether to remove Huawei from the US Commerce Department’s entities list would be left to a later date, adding he would have a meeting on Tuesday on the subject.

“We are leaving Huawei towards the end. We are seeing what goes with the trade agreement,” he said, suggesting that a full lifting of the ban would depend on a deal being reached to end the trade war.

But the two leaders did not discuss the case of Sabrina Meng Wanzhou, the Huawei executive who is in Canada awaiting a hearing to decide whether she will be extradited to the US on charges of bank fraud and violations of US sanctions on Iran.

Meanwhile, the issue of Hong Kong’s extradition bill with mainland China, which has prompted mass protests in the city, was apparently not raised, after Beijing warned on Monday that it

Please, Log in or Register to view URLs content!

at the summit.

A Chinese official said Beijing welcomed Trump’s promise to ease the ban on Huawei, but hoped that he would “walk his talk”.

“If the US side is able to achieve what it said it would do, of course we would welcome it,” said Wang Xiaolong, the Chinese foreign ministry’s special envoy on G20 affairs.

“Huawei is a private company, and it has world-leading telecommunications technology. No matter where it invests, develops or operates in [Huawei] would help the local telecoms industry, and banning it would only be a lose-lose scenario.”

Wang also said the trade war truce would benefit the world economy.

“It is not unusual for China and the US, one as a developed economy and another as a developing country, to have differences. But our mutual interests far outweigh our differences,” he said. “We both want the world economy to have sustainable and stable growth, and to have an open, equal and rules-based environment for economic development.”

Wang said the two sides had also reached consensus on World Trade Organisation reforms, and that they would continue to uphold its “core values and basic principles”.

Trade talks collapsed in the middle of May, with the US blaming China for backtracking on previously agreed commitments, while Beijing accused Washington of making unacceptable demands that hurt its sovereignty.

“China is sincere in continuing its negotiations with the US to manage differences, but the negotiations should be based on equality and mutual respect, and address each other’s legitimate concerns,” Xi was quoted by state news agency Xinhua as saying. “On issues regarding China’s sovereignty and dignity, China has to safeguard its own core interests,” Xi said.

Trump said in the press conference that China and the US should become “strategic partners” – a sharp turnaround from the “strategic competitors” identified in various US government documents during his presidency.

“I think we are going to be strategic partners. I think we can help each other,” Trump said. “If the right deal is structured, we can be great for each other”.

During the meeting, Trump said the US took seriously Beijing’s concerns on Taiwan and pledged to continue the “one China” policy, according to Xinhua. Xi meanwhile said China was willing to play a “constructive” role to support the efforts of Trump and North Korean leader Kim Jong-un to keep their communication open.

Xi told Trump he hoped the US would treat Chinese companies and students fairly, and Trump said he “always” welcomed Chinese students.

It is unclear whether there will be a deadline for talks to conclude a trade deal. Despite the friendly tone, uncertainties remain as to how the two sides can narrow the gap in talks that follow amid their increasing rivalry in areas ranging from the economy to technology and security.

Claire Reade, a former assistant US trade representative for China affairs in the Barack Obama administration, said China faced many economic challenges and would benefit from cooling down the conflict, noting that some of the changes Washington had asked for would help its development.

“In addition, the trade war does not just create economic pain and challenge Xi’s ability to show he has the US relationship under control. The US aggressive and persistent emphasis on the problems Chinese industrial policies create for the global trading system also exposes China to criticism from other trading partners, broadening China’s international challenges,” Reade said.

“All that said, it seems clear that the US is now much more sceptical of China’s goals in the international system and is going to continue to take active steps to protect itself against what it sees as damaging Chinese practices, even if a trade deal is reached,” she said.

“China for its part seems increasingly sceptical of US intentions, so even a trade truce will not take us back to the optimistic days when Chinese economic reforms seemed to signal economic convergence.”

Myron Brilliant, executive vice-president and head of international affairs at the US Chamber of Commerce, said the latest talks were encouraging.

“We hope each side is now prepared to go the last mile to achieve a high-standard, comprehensive, enforceable agreement. China must commit to addressing long-standing unfair trade practices and industrial policies that prevent a level playing field for US companies,” Brilliant said.

“Opening markets, increasing IPR protection and promoting fair and reciprocal opportunities in trade are in China’s own interest as it works to build a stronger and more innovative economy. If China makes the necessary commitments, the administration should take the necessary steps to lift tariffs that are harming US manufacturers, farmers and consumers.”

Click to expand...

The National Security Council has been examining ways of narrowing the restrictions on Huawei so they focus on sales of U.S. technology used in “chokepoints,” where Huawei technology could control wireless networks, people familiar with the discussions said.

Mr. Trump was clearly making Huawei a part of any trade settlement, although his top advisers, including Treasury Secretary Steven Mnuchin, have said the administration was keeping Huawei separate from trade talks.

“We’re talking about equipment where there’s not a great national-emergency problem with it,” Mr. Trump said.

Click to expand...

styx said:

at this point i think that Trump is more intelligent than many of his "advisers" like Navarro o Bolton.

Click to expand...

antiterror13 said:

probably now his daughter and son in law who are more intelligent than navarro or bolton or pomp

I did not expect Trump to give in so much. The best I thought he would only give a 24 hours notice to China so that he could keep China and Huawei on edge (so that they do not know what he is going to do next). Now he is giving them some live line.

Click to expand...

localizer said:

Please, Log in or Register to view URLs content!

So it seems like they're gonna narrow it down to 5g and spare the consumer stuff.

Click to expand...