Huawei, China and the Unites States of America

Huawei, China and the Unites States of America

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US President Donald Trump has said to reporters that Chinese telecommunications firm Huawei
could be part of a trade deal between the US and China. Despite labelling Huawei as “very
dangerous” for its equipment’s potential use by the Chinese military for surveillance purposes,
Trump did not close the door on doing business with the company, saying that he “could imagine
Huawei being possibly included in some or some part of it.”

Mr. Trump’s comments on Huawei come after his administration placed the firm on its “entity
list,” banning Huawei from acquiring technology from US companies without government
consent. This is of course related to the ongoing and escalating trade dispute between the US and
China dating back to last year, in which the US imposed tariffs on more than $250bn Chinese
goods with duties of 25%, to which the Chinese government responded by placing $110bn tariffs
on the US. Despite mutual talks, US-Chinese trade disputes seem unlikely to resolve imminently,
as Trump announced increased tariffs on $200bn worth of Chinese imports in May, and
additionally threatened to impose duties on another $300bn worth of Chinese goods.

Both US and international firms have said that the ongoing disputes have harmed their
businesses, and the IMF has warned both countries that their trade war would weaken the global
economy; however, this may not be the end of an East-West trade disagreement. Tory secretaries
Jeremy Hunt and Sajid Javid, both candidates to replace Theresa May as leader of the
Conservative Party, have now voiced their concern over Huawei involvement in the UK’s 5G
network. With the pro-Huawei Theresa May soon stepping down, a door is being left open for a

trade divide between Western countries and China that would harm businesses and consumers,
domestic and global.

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