Published: Tue, July 02, 2019
Markets | By Erika Turner

Kudlow Says Huawei Reversal by Trump Isn’t ‘General Amnesty’

Kudlow Says Huawei Reversal by Trump Isn’t ‘General Amnesty’

The first wave of prohibitions was misleading for many suppliers of HUAWEI because at that point they were not well-aware of USA trade controls, and the transportation of products was suspended on this basis. Its significance is thus too great to miss.

The leaders met in private on the sidelines of the G20 summit in Osaka, Japan. Since then, negotiating teams on both sides have held seven rounds of consultations in search for an early settlement.

"Even though Washington agreed to postpone levying additional tariffs on Chinese goods to make way for negotiations, and Trump even hinted at putting off decisions on Huawei until the end of negotiations, things are still very much up in the air", the Chinese Daily editorial published late Saturday said. By agreeing to purchase us agriculture goods, China enabled Trump to "back down from his hollow threat to impose tariffs on Chinese consumer goods", Shepherdson said in his recent note. It has always been committed to settling trade frictions via dialogue and consultation and safeguarding its legitimate and sovereign rights at the same time.

The administration paid more than $8.5 billion in cash to farmers and ranchers to cushion the impact of trade war on their 2018 production.

The president has repeatedly insisted that China bears the cost of the tariffs he's imposed on its exports to the USA, rejecting the consensus of economists that the taxes are paid by American companies and consumers in the form of higher prices. "Consequently, the relationship and partnership between the two parties are above politics".

"U.S. companies can sell their equipment to Huawei", Trump said at a files convention.

'We've said it before - communication and friction between China and the United States is a long-term, hard and complex thing.

Trump says "unfair" defence treaty with Japan needs to be changed
Trump said he would not preview his response should Iran top that limit, but said, "We can not let Iran have a nuclear weapon". He has lobbied United States allies to keep Huawei out of next-generation 5G telecommunications infrastructure.

Kudlow repeated an assessment made days before the talks broke down, that the USA and China are 90% done on a trade deal. Such cheap tactics to bring China down to its knees with pressure will get nowhere.

US microchip firms in particular "are selling products that are widely available from other countries".

No deadline was set for progress on a deal, and the world's two largest economies remain at odds over significant parts of an agreement.

Stock markets around the world have rallied sharply as hopes of a peace deal in the US-China trade war rise.

Trade wars produce no victor.

"If President Trump has agreed to reverse recent sanctions against #Huawei he has made a catastrophic mistake", Senator Marco Rubio, a Florida Republican, said in a tweet. Under these circumstances, global companies would most likely respond by continuing to pull their supply chains out of China. But when they fight each other, all are poised to lose. The United States has imposed 25% import taxes on $250 billion in Chinese products and threatened to target $300 billion more a move that would extend the tariffs to virtually everything China ships to the United States.

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