Huawei CFO Arrest is a ‘Declaration of War’ Says Editor of Global Times
invite response
2018 Dec 6, 3:43pm 2,609 views 15 comments
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1
RWSGFY
2018 Dec 6, 3:47pm
RWSGFY
2018 Dec 6, 3:47pm
WillPowers says
And? We don't have royalty in US: if Steve Jobs' son breaks the law - Chinese are welcome to lock him up. Provided all the legal procedures are followed, of course.
“This is like China arresting Steve Jobs’ son,” Art Cashin said on CNBC.
And? We don't have royalty in US: if Steve Jobs' son breaks the law - Chinese are welcome to lock him up. Provided all the legal procedures are followed, of course.
2
theoakman
2018 Dec 6, 4:27pm
WillPowers says
If China arrested Steve Job's son, nothing would happen. Jobs would probably claim it wasn't his son.
The arrest of a top Chinese technology executive by Canadian authorities acting at the behest of the United States is threatening to upend the Trump administration’s efforts to sustain a trade truce with China.
“This is like China arresting Steve Jobs’ son,” Art Cashin said on CNBC.
Meng is the daughter of the company’s founder, Ren Zhengfei, and has recently become his presumed successor. Ren is a former Chinese military official who founded the company more than 30 years ago. It has become China’s premier global brand and it central to its “Made in China 2025” plan to dominate high-tech manufacturing. The company has been making a push to become the world leader in 5G technology and met with strong resistance from U.S. officials.
https://www.breitbart.com/economy/2018/12/06/huawei-cfo-arrest-is-a-declaration-of-war-says-editor-of-global-times/
If China arrested Steve Job's son, nothing would happen. Jobs would probably claim it wasn't his son.
4
Strategist
2018 Dec 6, 5:33pm
Strategist
2018 Dec 6, 5:33pm
WillPowers says
Huawei sold American high tech products to Iran that was against the law. Must have made a fat commission check. If Chinese companies want high tech products from us, they shouldn't screw us by selling it to our enemies.
Huawei CFO Arrest is a ‘Declaration of War’ Says Editor of Global Times
Huawei sold American high tech products to Iran that was against the law. Must have made a fat commission check. If Chinese companies want high tech products from us, they shouldn't screw us by selling it to our enemies.
5
RWSGFY
2018 Dec 7, 12:57pm
RWSGFY
2018 Dec 7, 12:57pm
Huawei was built on stealing IP from US companies. They started with copying Cisco stuff verbatim and went from there. Fuck them.
6
anonymous
2019 Feb 19, 3:25am
How the US took more than a decade to build its case against Huawei.
•The indictment alleged Huawei’s long-running scheme to deceive the US and numerous global banks about its business in Iran
The United States has been investigating Huawei Technologies for possible violations of trade sanctions since at least 2007, when FBI agents questioned its founder in New York about the Chinese telecommunication equipment manufacturer’s business activities in Iran.
The founder, whose name was redacted in the indictment filed on Monday in the US, was identified in the documents as “Individual-1”. He said at the time that Huawei was compliant with US export laws and did not deal directly with any Iranian company, according to the 13-count indictment unsealed in federal court in Brooklyn, New York.
Shenzhen-based Huawei was founded in 1987 by Ren Zhengfei, who built a small vendor of telephone switches into the world’s largest telecoms equipment maker and second-biggest smartphone supplier that is forecast to earn US$125 billion in revenue this year.
“During the interview, amongst other things, Individual-1 falsely stated, in substance and in part, that Huawei did not conduct any activity in violation of US export laws and that Huawei operated in compliance with all US export laws,” the indictment said.
The FBI’s questioning of Huawei’s founder in July 2007 showed that American law enforcement authorities had suspected the company of illegal activities in Iran since at least the administration of US President George W Bush.
That interview also took place at least five years before the US House Intelligence Committee released a report in 2012, alleging that Chinese telecoms equipment makers Huawei and ZTE Corp posed a threat to national security and that their products could be used by the Chinese government to spy and steal data. Huawei has repeatedly denied the allegations made in the congressional report.
Apart from Huawei, the other defendants named in the 25-page indictment include affiliates Huawei Device USA and Skycom Tech Co, as well as Huawei chief financial officer Sabrina Meng Wanzhou, the daughter of company founder Ren.
These defendants face 13 counts of financial fraud, money laundering, conspiracy to defraud the US government, obstruction of justice and violations of the International Emergency Economic Powers Act, which cover trade sanctions, among other charges.
US authorities aim to charge other individuals who have not yet been apprehended and whose names were not made public at this time.
Huawei has denied all the allegations in the indictment.
US indictment against Huawei shows FBI interviewed founder in 2007, reviewed text from Meng Wanzhou’s electronic device
Following the FBI’s interview with the founder, Huawei employees repeatedly misrepresented the company’s relationship with Skycom, a Hong Kong-registered firm, which functioned as the telecoms gear maker’s Iran-based subsidiary, according to the indictment. That direct control was prohibited under the Iranian Transactions and Sanctions Regulations.
It said Huawei tried to conceal that relationship through a series of share transfers involving two undisclosed subsidiaries. That enabled Huawei to claim that Skycom was only a business partner in Iran.
Under the US trade sanctions, no goods, technology or services can be exported to Iran from the US or from a US person without a licence. The US contends that Skycom had hired at least one US citizen, identified as “Employee 1”, who provided telecommunication services to Iran between 2008 and 2014, without obtaining permission.
Huawei charges are US attempt to smear Chinese companies, Beijing says
Since 2010, Huawei also misled various financial institutions and banks in the US by hiding its true relationship with Skycom, according to the indictment. As a result, one of the banks, known as “US Subsidiary 1” (a subsidiary of “Financial Institution 1”) in the indictment, cleared over US$100 million in transactions for Skycom.
In September 2012, a Huawei senior vice-president testified to the US Congress that the company’s business did not violate any sanctions, and a Huawei treasurer days later told a principal of a US bank that the firm and its global affiliates were not in violation of any laws.
But months later, Reuters published a report that said Huawei owned and operated Skycom, which was trying to sell embargoed goods of US origin to Iran, which violated sanctions.
In response to the story, Huawei called Skycom one of its “major local partners” and emphasised again that “Huawei’s business in Iran is in full compliance with all applicable laws and regulations including those of the UN, US and EU”.
“This commitment has been carried out and followed strictly by our company,” Huawei said at the time. “Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations.”
The criminal indictment against Huawei and individual defendants including Meng, marks the culmination of at least a decade of investigation into the Chinese company. Last year, its cross-town rival ZTE was fined US$1 billion and banned from buying American parts and services for almost three months, for failing to discipline 35 employees involved in the illegal sale of telecoms equipment to Iran and North Korea.
That ban all but crippled the company, laying bare its dependence on US technology for survival. As part of the deal, ZTE now has a US-appointed special compliance coordinator with sweeping authority to monitor and assess compliance with US export control laws by the telecoms gear maker.
Back in 2012, reports at the time about Huawei’s alleged links to Iran came during a period of aggressive international expansion for the company, which included increasing investments in Europe, establishing a new research and development centre in Finland, and setting up local boards of directors and advisory boards in France and the UK, according to corporate milestones on Huawei’s website.
In January 2013, Reuters published a new report that linked Meng, who had been the CFO of Huawei since 2010, to Skycom. Once more, Huawei reaffirmed that it was in “full compliance” with all applicable laws.
Huawei listed Meng as CFO and one of the company’s executive directors in 2011, when it publicly disclosed its leadership. She is out on bail in Vancouver while awaiting the outcome of a hearing to decide whether she will be extradited to the US to face charges.
Months after the Reuters reports were first published in 2012, Meng requested an in-person meeting with an executive from “Financial Institution 1” – one of the victims involved in helping Skycom process millions of dollars in transactions.
In Meng’s meeting with the executive in August 2013, she used a PowerPoint presentation to explain that her participation on the board of Skycom between February 2008 and April 2009, was meant to help Huawei “better understand Skycom’s financial results and business performance, and to strengthen and monitor Skycom’s compliance”.
In early 2014, Meng made a trip to New York via John F Kennedy International Airport, where US authorities reviewed a file containing text from an electronic device belonging to her. The file, which may have been deleted, contained “talking points” about Iran and Skycom, according to the indictment. The airport was under the purview of the Eastern District of New York, which filed the criminal charges.
Around 2017, “Financial Institution 1” terminated its banking relationship with Huawei due to risk concerns, the US found. The financial institution emphasised to Huawei that the termination was its decision alone. Following that setback, Huawei attempted to strengthen its relationships with other banks, stating that it was the one who ended the relationship with “Financial Institution 1” because it was dissatisfied with its service.
Around the same time, the US alleged that Huawei became aware of the US criminal investigation against it, and purportedly moved witnesses with knowledge about its Iran business to mainland China, where they would be beyond the jurisdiction of the US. The company also sought to destroy and conceal evidence of its business.
https://www.scmp.com/tech/gear/article/2184160/how-us-took-more-decade-build-its-case-against-huawei
•The indictment alleged Huawei’s long-running scheme to deceive the US and numerous global banks about its business in Iran
The United States has been investigating Huawei Technologies for possible violations of trade sanctions since at least 2007, when FBI agents questioned its founder in New York about the Chinese telecommunication equipment manufacturer’s business activities in Iran.
The founder, whose name was redacted in the indictment filed on Monday in the US, was identified in the documents as “Individual-1”. He said at the time that Huawei was compliant with US export laws and did not deal directly with any Iranian company, according to the 13-count indictment unsealed in federal court in Brooklyn, New York.
Shenzhen-based Huawei was founded in 1987 by Ren Zhengfei, who built a small vendor of telephone switches into the world’s largest telecoms equipment maker and second-biggest smartphone supplier that is forecast to earn US$125 billion in revenue this year.
“During the interview, amongst other things, Individual-1 falsely stated, in substance and in part, that Huawei did not conduct any activity in violation of US export laws and that Huawei operated in compliance with all US export laws,” the indictment said.
The FBI’s questioning of Huawei’s founder in July 2007 showed that American law enforcement authorities had suspected the company of illegal activities in Iran since at least the administration of US President George W Bush.
That interview also took place at least five years before the US House Intelligence Committee released a report in 2012, alleging that Chinese telecoms equipment makers Huawei and ZTE Corp posed a threat to national security and that their products could be used by the Chinese government to spy and steal data. Huawei has repeatedly denied the allegations made in the congressional report.
Apart from Huawei, the other defendants named in the 25-page indictment include affiliates Huawei Device USA and Skycom Tech Co, as well as Huawei chief financial officer Sabrina Meng Wanzhou, the daughter of company founder Ren.
These defendants face 13 counts of financial fraud, money laundering, conspiracy to defraud the US government, obstruction of justice and violations of the International Emergency Economic Powers Act, which cover trade sanctions, among other charges.
US authorities aim to charge other individuals who have not yet been apprehended and whose names were not made public at this time.
Huawei has denied all the allegations in the indictment.
US indictment against Huawei shows FBI interviewed founder in 2007, reviewed text from Meng Wanzhou’s electronic device
Following the FBI’s interview with the founder, Huawei employees repeatedly misrepresented the company’s relationship with Skycom, a Hong Kong-registered firm, which functioned as the telecoms gear maker’s Iran-based subsidiary, according to the indictment. That direct control was prohibited under the Iranian Transactions and Sanctions Regulations.
It said Huawei tried to conceal that relationship through a series of share transfers involving two undisclosed subsidiaries. That enabled Huawei to claim that Skycom was only a business partner in Iran.
Under the US trade sanctions, no goods, technology or services can be exported to Iran from the US or from a US person without a licence. The US contends that Skycom had hired at least one US citizen, identified as “Employee 1”, who provided telecommunication services to Iran between 2008 and 2014, without obtaining permission.
Huawei charges are US attempt to smear Chinese companies, Beijing says
Since 2010, Huawei also misled various financial institutions and banks in the US by hiding its true relationship with Skycom, according to the indictment. As a result, one of the banks, known as “US Subsidiary 1” (a subsidiary of “Financial Institution 1”) in the indictment, cleared over US$100 million in transactions for Skycom.
In September 2012, a Huawei senior vice-president testified to the US Congress that the company’s business did not violate any sanctions, and a Huawei treasurer days later told a principal of a US bank that the firm and its global affiliates were not in violation of any laws.
But months later, Reuters published a report that said Huawei owned and operated Skycom, which was trying to sell embargoed goods of US origin to Iran, which violated sanctions.
In response to the story, Huawei called Skycom one of its “major local partners” and emphasised again that “Huawei’s business in Iran is in full compliance with all applicable laws and regulations including those of the UN, US and EU”.
“This commitment has been carried out and followed strictly by our company,” Huawei said at the time. “Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations.”
The criminal indictment against Huawei and individual defendants including Meng, marks the culmination of at least a decade of investigation into the Chinese company. Last year, its cross-town rival ZTE was fined US$1 billion and banned from buying American parts and services for almost three months, for failing to discipline 35 employees involved in the illegal sale of telecoms equipment to Iran and North Korea.
That ban all but crippled the company, laying bare its dependence on US technology for survival. As part of the deal, ZTE now has a US-appointed special compliance coordinator with sweeping authority to monitor and assess compliance with US export control laws by the telecoms gear maker.
Back in 2012, reports at the time about Huawei’s alleged links to Iran came during a period of aggressive international expansion for the company, which included increasing investments in Europe, establishing a new research and development centre in Finland, and setting up local boards of directors and advisory boards in France and the UK, according to corporate milestones on Huawei’s website.
In January 2013, Reuters published a new report that linked Meng, who had been the CFO of Huawei since 2010, to Skycom. Once more, Huawei reaffirmed that it was in “full compliance” with all applicable laws.
Huawei listed Meng as CFO and one of the company’s executive directors in 2011, when it publicly disclosed its leadership. She is out on bail in Vancouver while awaiting the outcome of a hearing to decide whether she will be extradited to the US to face charges.
Months after the Reuters reports were first published in 2012, Meng requested an in-person meeting with an executive from “Financial Institution 1” – one of the victims involved in helping Skycom process millions of dollars in transactions.
In Meng’s meeting with the executive in August 2013, she used a PowerPoint presentation to explain that her participation on the board of Skycom between February 2008 and April 2009, was meant to help Huawei “better understand Skycom’s financial results and business performance, and to strengthen and monitor Skycom’s compliance”.
In early 2014, Meng made a trip to New York via John F Kennedy International Airport, where US authorities reviewed a file containing text from an electronic device belonging to her. The file, which may have been deleted, contained “talking points” about Iran and Skycom, according to the indictment. The airport was under the purview of the Eastern District of New York, which filed the criminal charges.
Around 2017, “Financial Institution 1” terminated its banking relationship with Huawei due to risk concerns, the US found. The financial institution emphasised to Huawei that the termination was its decision alone. Following that setback, Huawei attempted to strengthen its relationships with other banks, stating that it was the one who ended the relationship with “Financial Institution 1” because it was dissatisfied with its service.
Around the same time, the US alleged that Huawei became aware of the US criminal investigation against it, and purportedly moved witnesses with knowledge about its Iran business to mainland China, where they would be beyond the jurisdiction of the US. The company also sought to destroy and conceal evidence of its business.
https://www.scmp.com/tech/gear/article/2184160/how-us-took-more-decade-build-its-case-against-huawei
7
Goran_K
2019 Feb 19, 7:07am
Goran_K
2019 Feb 19, 7:07am
Huawei is pretty much a spy arm of the Chinese government. She should do 25 years in Gitmo.
8
anonymous
2019 Feb 19, 7:22am
"Huawei is pretty much a spy arm of the Chinese government. She should do 25 years in Gitmo".
We have Google and the other big tech companies spying on Americans - what's the big deal other than they are way ahead of us in technology and we can't catch up.
Zuckfuck headed down to Gitmo soon now is he ? What about team Google ? Can we send some NSA members too ?
Bad bad bad Huawei - worse than Orange Man Bad. Penalize someone because they can do something better than we can, lets cover up our own ineptitude by going after another boogey man.
Speaking of Gitmo - when is the gang that invaded Iraq under false pretense going to take a multi-year visit to Gitmo ? Matter of fact there are several members of that club currently advising Potus as I type this.
We have Google and the other big tech companies spying on Americans - what's the big deal other than they are way ahead of us in technology and we can't catch up.
Zuckfuck headed down to Gitmo soon now is he ? What about team Google ? Can we send some NSA members too ?
Bad bad bad Huawei - worse than Orange Man Bad. Penalize someone because they can do something better than we can, lets cover up our own ineptitude by going after another boogey man.
Speaking of Gitmo - when is the gang that invaded Iraq under false pretense going to take a multi-year visit to Gitmo ? Matter of fact there are several members of that club currently advising Potus as I type this.
10
anonymous
2019 Feb 21, 8:37am
Trump hints at a softer stance (he is gonna cave - again) on Huawei in a bizarre '6G' tweet, as China trade talks resume
•The series of tweets rang as odd because 6G technology doesn't exist.
•The tweets come as the Trump administration resumes crucial trade talks with Chinese negotiators ahead of a March 1 deadline to reach a deal.
•Trump has reportedly been preparing an executive order to ban Huawei and ZTE from operating in the U.S.
President Donald Trump sent a pair of bizarre tweets Thursday morning mentioning a "6G" wireless network and seemingly hinting that he could take a softer stance on Chinese telecom company Huawei.
The tweets rang as odd because 6G technology doesn't exist. U.S. telecom companies are barely on the cusp of 5G wireless networks, and they're facing stiff competition to build it before Chinese companies.
Donald J. Trump
✔ @realDonaldTrump
I want 5G, and even 6G, technology in the United States as soon as possible. It is far more powerful, faster, and smarter than the current standard. American companies must step up their efforts, or get left behind. There is no reason that we should be lagging behind on.........
56.8K
8:55 AM - Feb 21, 2019
Donald J. Trump
✔ @realDonaldTrump
....something that is so obviously the future. I want the United States to win through competition, not by blocking out currently more advanced technologies. We must always be the leader in everything we do, especially when it comes to the very exciting world of technology!
50.1K
8:59 AM - Feb 21, 2019
Trump doesn't name China or Huawei, but that's likely what he's referencing. Chinese companies are at the forefront of 5G technology, and the Trump administration resumed trade talks with Chinese negotiators Thursday.
Both nations face a March 1 deadline to reach a deal, although Trump has indicated he could back off of it.
Meanwhile, Trump has reportedly been preparing an executive order to ban Huawei and ZTE from operating in the U.S., which would grant U.S. companies a little more cushion to build their own 5G networks. Now it seems Trump could be reconsidering a ban on Chinese telecoms.
It's unclear whether a potential ban on Huawei and ZTE would factor into negotiations, but such an executive order would likely invite some bad blood between the world's two largest economies.
The U.S. and other countries have long feared Huawei's equipment could be used for spying.
TPG Telecom dropped plans to use Huawei equipment in Australia, which banned the use of Huawei's equipment. New Zealand and Japan have similar bans in place. The UK hasn't made a decision either way, but The Royal United Services Institute warned earlier this month that allowing Huawei equipment could be "naive" and "irresponsible."
Germany has considered similar measures, but said earlier this month it isn't ready to ban Huawei and that it will allow all 5G equipment vendors in the country.
U.S. carriers including AT&T and Verizon are still activating fledgling 5G networks in select cities, and T-Mobile and Sprint plan to launch theirs later this year. Most experts think it will take until at least 2020 for 5G to become widespread.
Samsung just announced the first phone that will run on the faster network, but it won't launch until the second quarter of this year.
https://www.cnbc.com/2019/02/21/trump-sends-bizarre-6g-tweet-as-china-trade-talks-resume.html?forYou=true
Maybe one of you coder tech types can send a tweet to Potus explaining what 5G is lest he think it is something new on the McDonald's menu.
•The series of tweets rang as odd because 6G technology doesn't exist.
•The tweets come as the Trump administration resumes crucial trade talks with Chinese negotiators ahead of a March 1 deadline to reach a deal.
•Trump has reportedly been preparing an executive order to ban Huawei and ZTE from operating in the U.S.
President Donald Trump sent a pair of bizarre tweets Thursday morning mentioning a "6G" wireless network and seemingly hinting that he could take a softer stance on Chinese telecom company Huawei.
The tweets rang as odd because 6G technology doesn't exist. U.S. telecom companies are barely on the cusp of 5G wireless networks, and they're facing stiff competition to build it before Chinese companies.
Donald J. Trump
✔ @realDonaldTrump
I want 5G, and even 6G, technology in the United States as soon as possible. It is far more powerful, faster, and smarter than the current standard. American companies must step up their efforts, or get left behind. There is no reason that we should be lagging behind on.........
56.8K
8:55 AM - Feb 21, 2019
Donald J. Trump
✔ @realDonaldTrump
....something that is so obviously the future. I want the United States to win through competition, not by blocking out currently more advanced technologies. We must always be the leader in everything we do, especially when it comes to the very exciting world of technology!
50.1K
8:59 AM - Feb 21, 2019
Trump doesn't name China or Huawei, but that's likely what he's referencing. Chinese companies are at the forefront of 5G technology, and the Trump administration resumed trade talks with Chinese negotiators Thursday.
Both nations face a March 1 deadline to reach a deal, although Trump has indicated he could back off of it.
Meanwhile, Trump has reportedly been preparing an executive order to ban Huawei and ZTE from operating in the U.S., which would grant U.S. companies a little more cushion to build their own 5G networks. Now it seems Trump could be reconsidering a ban on Chinese telecoms.
It's unclear whether a potential ban on Huawei and ZTE would factor into negotiations, but such an executive order would likely invite some bad blood between the world's two largest economies.
The U.S. and other countries have long feared Huawei's equipment could be used for spying.
TPG Telecom dropped plans to use Huawei equipment in Australia, which banned the use of Huawei's equipment. New Zealand and Japan have similar bans in place. The UK hasn't made a decision either way, but The Royal United Services Institute warned earlier this month that allowing Huawei equipment could be "naive" and "irresponsible."
Germany has considered similar measures, but said earlier this month it isn't ready to ban Huawei and that it will allow all 5G equipment vendors in the country.
U.S. carriers including AT&T and Verizon are still activating fledgling 5G networks in select cities, and T-Mobile and Sprint plan to launch theirs later this year. Most experts think it will take until at least 2020 for 5G to become widespread.
Samsung just announced the first phone that will run on the faster network, but it won't launch until the second quarter of this year.
https://www.cnbc.com/2019/02/21/trump-sends-bizarre-6g-tweet-as-china-trade-talks-resume.html?forYou=true
Maybe one of you coder tech types can send a tweet to Potus explaining what 5G is lest he think it is something new on the McDonald's menu.
11
anonymous
2019 Feb 21, 8:43am
Trump says March 1 deadline for China trade talks not 'magical' date (translates to not going as well as we want, date is not going to be met and we will cave but somehow try to spin it to a positive)
U.S. President Donald Trump said on Tuesday that trade talks with China were going well and suggested he was open to pushing off the deadline to complete negotiations, saying March 1 was not a “magical” date.
“They are very complex talks. They’re going very well,” Trump told reporters in the Oval Office. “I can’t tell you exactly about timing, but the date is not a magical date. A lot of things can happen.”
Trump said the real question would be whether the United States would raise the tariffs as planned.
“I know that China would like not for that to happen, so I think they’re trying to move fast so that doesn’t happen.”
https://www.reuters.com/article/us-usa-trade-china-idUSKCN1Q804D
U.S. President Donald Trump said on Tuesday that trade talks with China were going well and suggested he was open to pushing off the deadline to complete negotiations, saying March 1 was not a “magical” date.
“They are very complex talks. They’re going very well,” Trump told reporters in the Oval Office. “I can’t tell you exactly about timing, but the date is not a magical date. A lot of things can happen.”
Trump said the real question would be whether the United States would raise the tariffs as planned.
“I know that China would like not for that to happen, so I think they’re trying to move fast so that doesn’t happen.”
https://www.reuters.com/article/us-usa-trade-china-idUSKCN1Q804D
12
anonymous
2019 Feb 28, 2:14am
Wall of soundbites could fuel Trade War II - The relationship between China and the US is unlikely to ‘return’ to the status quo
It was always going to be about interpretation. As China’s relationship with the United States enters a new phase, economists have been trying to pierce through the wall of soundbites emanating from Beijing and Washington.
Seventy-two hours after the talks were wrapped up in the US capital, details of a potential trade deal are still scant.
At first glance, last week’s intensive discussions appear to have laid the foundations of an agreement between the world’s two largest economies.
US President Donald Trump has even announced a projected mini-summit with China’s head of state Xi Jinping at his Florida resort in Mar-a-Lago, probably later next month.
He has also extended the March 1 deadline, which would have triggered another round of tariffs on Chinese imports worth up to US$250 billion.
But major question marks still remain about what exactly has been nailed down.
“It’s beginning to look like Trump will yield to the Chinese in America’s trade conflict,” Martin Feldstein, the professor of economics at Harvard University, wrote in a commentary, for Project Syndicate.
Part of his pessimism revolves around what he considers to be the core issues, including legally enforcing an agreement.
While progress has been made to reduce the record-breaking US trade deficit, which was a staggering a $323.32 billion last year, other sticking points remain.
A loose accord is also believed to include intellectual property protection, forced technology transfers and structural reforms. Washington has pushed hard on these demands. But how much ground Beijing has ceded is unclear.
Still, there was hardly a mention in the closing trade talks statement about allegations of cyber theft.
“The key issue is technology theft. Unless the Chinese agree to stop stealing technology, and the two sides devise a way to enforce that agreement, the US will not have achieved anything useful from Trump’s tariffs,” Feldstein said.
“Despite Trump’s upbeat [news] about progress in the talks, there is no suggestion that the Chinese will agree to stop stealing technology.”
The dynamics between the two countries have also changed following nearly a year of economic conflict.
Turning the clock back will prove nearly impossible.
Again, a future flashpoint would involve technology, according to Wang Tao, the head of Asia economics and chief China economist at UBS Investment Bank, as well as state-owned enterprises and the broader Chinese model of government subsidies.
She wrote on the Chinese media site Caixin:
“We do not see US-China trade relations returning to pre-trade war conditions. Most of all, the US will likely further restrict Chinese investment in the US, China’s access to technology and high-tech products in the coming years.
“We [also] think it is highly unlikely [China will] give up its ambition to move up the value chain and acquire advanced technology. While China may deepen reforms of state-owned enterprises, these reforms are likely to be designed to make SOEs more efficient and stronger, not to privatize or dismantle them.”
Failure to find a solution to that conundrum might simply plant the seeds of Trade War II.
Yet in the short term, even the American Chamber of Commerce in China has called for the Trump administration to push harder to create a level playing field for US businesses.
“There are mixed feelings about the tariffs, but a majority are in support of the tariffs continuing at the present time,” Tim Stratford, the organization’s chairman, told the media earlier this week.
“People don’t like tariffs, and that’s truly understandable. But they also think that maybe the tariffs have done some good in provoking very serious negotiations between the two sides.”
Now, all they have to do is come up with a “serious” solution. The jury is still out on that one.
https://www.asiatimes.com/2019/02/article/wall-of-soundbites-could-fuel-trade-war-ii/
It was always going to be about interpretation. As China’s relationship with the United States enters a new phase, economists have been trying to pierce through the wall of soundbites emanating from Beijing and Washington.
Seventy-two hours after the talks were wrapped up in the US capital, details of a potential trade deal are still scant.
At first glance, last week’s intensive discussions appear to have laid the foundations of an agreement between the world’s two largest economies.
US President Donald Trump has even announced a projected mini-summit with China’s head of state Xi Jinping at his Florida resort in Mar-a-Lago, probably later next month.
He has also extended the March 1 deadline, which would have triggered another round of tariffs on Chinese imports worth up to US$250 billion.
But major question marks still remain about what exactly has been nailed down.
“It’s beginning to look like Trump will yield to the Chinese in America’s trade conflict,” Martin Feldstein, the professor of economics at Harvard University, wrote in a commentary, for Project Syndicate.
Part of his pessimism revolves around what he considers to be the core issues, including legally enforcing an agreement.
While progress has been made to reduce the record-breaking US trade deficit, which was a staggering a $323.32 billion last year, other sticking points remain.
A loose accord is also believed to include intellectual property protection, forced technology transfers and structural reforms. Washington has pushed hard on these demands. But how much ground Beijing has ceded is unclear.
Still, there was hardly a mention in the closing trade talks statement about allegations of cyber theft.
“The key issue is technology theft. Unless the Chinese agree to stop stealing technology, and the two sides devise a way to enforce that agreement, the US will not have achieved anything useful from Trump’s tariffs,” Feldstein said.
“Despite Trump’s upbeat [news] about progress in the talks, there is no suggestion that the Chinese will agree to stop stealing technology.”
The dynamics between the two countries have also changed following nearly a year of economic conflict.
Turning the clock back will prove nearly impossible.
Again, a future flashpoint would involve technology, according to Wang Tao, the head of Asia economics and chief China economist at UBS Investment Bank, as well as state-owned enterprises and the broader Chinese model of government subsidies.
She wrote on the Chinese media site Caixin:
“We do not see US-China trade relations returning to pre-trade war conditions. Most of all, the US will likely further restrict Chinese investment in the US, China’s access to technology and high-tech products in the coming years.
“We [also] think it is highly unlikely [China will] give up its ambition to move up the value chain and acquire advanced technology. While China may deepen reforms of state-owned enterprises, these reforms are likely to be designed to make SOEs more efficient and stronger, not to privatize or dismantle them.”
Failure to find a solution to that conundrum might simply plant the seeds of Trade War II.
Yet in the short term, even the American Chamber of Commerce in China has called for the Trump administration to push harder to create a level playing field for US businesses.
“There are mixed feelings about the tariffs, but a majority are in support of the tariffs continuing at the present time,” Tim Stratford, the organization’s chairman, told the media earlier this week.
“People don’t like tariffs, and that’s truly understandable. But they also think that maybe the tariffs have done some good in provoking very serious negotiations between the two sides.”
Now, all they have to do is come up with a “serious” solution. The jury is still out on that one.
https://www.asiatimes.com/2019/02/article/wall-of-soundbites-could-fuel-trade-war-ii/
13
MisdemeanorRebel
2019 Feb 28, 5:46am
MisdemeanorRebel
2019 Feb 28, 5:46am
Kakistocracy says
Great! More jobs, development, IP kept at home rather than stolen abroad, bigger tax base.
Wall of soundbites could fuel Trade War II - The relationship between China and the US is unlikely to ‘return’ to the status quo
Great! More jobs, development, IP kept at home rather than stolen abroad, bigger tax base.
14
Tenpoundbass
2019 Feb 28, 5:50am
Tenpoundbass
2019 Feb 28, 5:50am
It was Obama's Deepstate undermining Trump when he was meeting with Xi.
I'm sure Trump has his reason for tolerating all of this cheap shit.
I'm sure Trump has his reason for tolerating all of this cheap shit.
15
anonymous
2019 Mar 1, 3:15am
Huawei invites US media to see for itself on spy claims
SHANGHAI: Chinese telecom giant Huawei has issued an unusual invitation to US media outlets to visit its facilities and meet staff as the company pushes back against global pressure arising from US accusations that it spies for Beijing.
Huawei purchased full page adverts in major US newspapers on Thursday (Feb 28) - including the Wall Street Journal, New York Times and Washington Post - for its "open letter to the US media".
Bearing the headline "Don't believe everything you hear", it was attributed to Huawei board director Catherine Chen.
"I am writing to you in the hopes that we can come to understand each other better," it said.
"In recent years, the US government has developed some misunderstandings about us. We would like to draw your attention to the facts."
US President Donald Trump's administration has in recent months ramped up efforts to block Huawei, the leader in 5G technology, by urging allies to avoid the Chinese powerhouse, claiming that national security interests are at stake.
Huawei has responded in recent weeks by coming out in public to state its case with a directness unusual for a major Chinese company.
Its 74-year-old founder Ren Zhengfei, who previously rarely spoke to foreign media, has granted repeated interviews since the start of the year to deny that Huawei is a mole for China's Communist government.
Other Huawei officials have hit back by highlighting US government eavesdropping that was exposed by former US National Security Agency contractor Edward Snowden.
Huawei's chairman Guo Ping forcefully pushed back at the US accusations this week in a keynote address at the mobile industry?s biggest annual global event in Barcelona.
"The US security accusation against our 5G has no evidence. Nothing," he said.
The issue has escalated with the arrest in Canada in December of Ren's daughter, Huawei Chief Financial Officer Meng Wanzhou, who is accused of violating US sanctions against Iran and faces an extradition hearing in Canada this month.
Two Huawei affiliates also have been charged in the United States with trade theft for stealing robotics technology from T-Mobile and offering financial rewards to staff who stole secrets from rivals.
The open letter avoided those issues, focusing instead on how the huge company's systems have contributed to global connectivity.
It invited media outlets to visit its facilities.
"On behalf of Huawei, I would like to invite members of the US media to visit our campuses and meet our employees," it said, providing an email address for arranging visits.
"Don't believe everything you hear. Come and see us. We look forward to meeting you."
https://www.channelnewsasia.com/news/asia/huawei-invites-us-media-to-see-for-itself-on-spy-claims-11302508
SHANGHAI: Chinese telecom giant Huawei has issued an unusual invitation to US media outlets to visit its facilities and meet staff as the company pushes back against global pressure arising from US accusations that it spies for Beijing.
Huawei purchased full page adverts in major US newspapers on Thursday (Feb 28) - including the Wall Street Journal, New York Times and Washington Post - for its "open letter to the US media".
Bearing the headline "Don't believe everything you hear", it was attributed to Huawei board director Catherine Chen.
"I am writing to you in the hopes that we can come to understand each other better," it said.
"In recent years, the US government has developed some misunderstandings about us. We would like to draw your attention to the facts."
US President Donald Trump's administration has in recent months ramped up efforts to block Huawei, the leader in 5G technology, by urging allies to avoid the Chinese powerhouse, claiming that national security interests are at stake.
Huawei has responded in recent weeks by coming out in public to state its case with a directness unusual for a major Chinese company.
Its 74-year-old founder Ren Zhengfei, who previously rarely spoke to foreign media, has granted repeated interviews since the start of the year to deny that Huawei is a mole for China's Communist government.
Other Huawei officials have hit back by highlighting US government eavesdropping that was exposed by former US National Security Agency contractor Edward Snowden.
Huawei's chairman Guo Ping forcefully pushed back at the US accusations this week in a keynote address at the mobile industry?s biggest annual global event in Barcelona.
"The US security accusation against our 5G has no evidence. Nothing," he said.
The issue has escalated with the arrest in Canada in December of Ren's daughter, Huawei Chief Financial Officer Meng Wanzhou, who is accused of violating US sanctions against Iran and faces an extradition hearing in Canada this month.
Two Huawei affiliates also have been charged in the United States with trade theft for stealing robotics technology from T-Mobile and offering financial rewards to staff who stole secrets from rivals.
The open letter avoided those issues, focusing instead on how the huge company's systems have contributed to global connectivity.
It invited media outlets to visit its facilities.
"On behalf of Huawei, I would like to invite members of the US media to visit our campuses and meet our employees," it said, providing an email address for arranging visits.
"Don't believe everything you hear. Come and see us. We look forward to meeting you."
https://www.channelnewsasia.com/news/asia/huawei-invites-us-media-to-see-for-itself-on-spy-claims-11302508
“This is like China arresting Steve Jobs’ son,” Art Cashin said on CNBC.
Meng is the daughter of the company’s founder, Ren Zhengfei, and has recently become his presumed successor. Ren is a former Chinese military official who founded the company more than 30 years ago. It has become China’s premier global brand and it central to its “Made in China 2025” plan to dominate high-tech manufacturing. The company has been making a push to become the world leader in 5G technology and met with strong resistance from U.S. officials.
https://www.breitbart.com/economy/2018/12/06/huawei-cfo-arrest-is-a-declaration-of-war-says-editor-of-global-times/