US President Donald Trump has hinted for the first time that Huawei could be included in a trade resolution deal, as negotiators from Washington and Beijing, continue to battle it out for trade supremacy in a row that may well threaten the global economy.
Huawei has been blocked from the US market and other American companies have been prohibited from working with them. The draconian measures that have been imposed by the US, has put the Chinese vendor in a precarious situation, although its founder has defiantly declared that it is well prepared for the US assault.
Trump was scathing in his assessment of Huawei and described the telecommunications behemoth as ‘dangerous’. The campaign against Huawei is one issue that has actually drawn bipartisan support in the US House of Representatives, with Democrats and Republicans believing Huawei, who has established itself as a leader in 5G could become a Trojan horse if allowed into its 5G networks.
Trump told reporters at the White House, “Huawei is something that is very dangerous. You look at what they've done from a security standpoint, a military standpoint. It’s very dangerous."
However, despite this Trump claimed that there is a ‘good possibility’ Washington will reach an agreement with Beijing in order to defuse and resolve the escalating trade conflict between the two global economic superpowers. He added that it was also possible Huawei would be included in a trade deal.
The US firmly believes that Huawei represents a severe threat to national security, but Huawei has vehemently denied the accusations and has defended its security recording, citing that the US has proved no evidence whatsoever to back up its lurid claims.
However, Trump’s comments directly contradicted those of US Secretary Mike Pompeo who had earlier declared that Huawei and the trade dispute were no linked.
According to Pompeo there were two separate elements involved in the ongoing row with China, one being the national security element and the other creating a fair reciprocal balanced trade relationship between the two countries.
Pompeo told CNBC, “I hope that we can keep those issues in their own place. We have an imperative to protect American national security. We have a need to make sure we get these trade rules right.”
The US Secretary of State was dismissive of Huawei’s comments on its relationship with the Chinese government and said that any data touched by the Chinese vendor run the risk of falling into the wrong hands. Pompeo added, “To say that they don't work with the Chinese government is a false statement. Huawei is deeply tied not only to China but to the Chinese communist party."
Chinese Foreign Minister Wang Yi weighed into the debate last week and warned that Beijing was fully prepared to "fight to the very end" in its trade war with Washington.
"The US use of state power to arbitrarily exert pressure on a private Chinese company like Huawei is typical economic bullying," Wang said.