Huawei can bear cost of broken US promises

By Hu Weijia Source:Global Times Published: 2019/7/30 21:53:40

As face-to-face trade talks between China and the US resumed this week in Shanghai, US actions to fulfill its commitment involving Chinese telecom company Huawei will help advance consultations that could result in a deal.

After a recent stalemate, the two sides are unlikely to reach a transformative deal this week to end the trade war. Several main differences remain in the negotiations, including the removal of all additional tariffs on Chinese exports. The consultations need to be advanced step-by-step with patience, leaving ample time for the two countries to work out their differences. 

The hard line stance taken by the US means the trade talks will probably take a long time.

Since negotiations collapsed in May, a lack of mutual trust has disturbed both sides. US President Donald Trump's fickle temperament may add uncertainty to the consultations. 

Greater efforts should be made to rebuild trust before the two countries can work out their trade differences.

Ahead of the resumption of trade talks, China and the US made goodwill gestures to each other. Trump said in June that he would ease restrictions on Huawei, while China considered new purchases of US farm products. 

The US has shipped millions of tons of soybeans to China since the two countries' leaders met in June in Osaka, Japan, the Xinhua News Agency reported on Sunday.

China has showed sincerity, but, according to media reports, the US has done little to clarify what sales would be permitted after it pledged to allow US-based companies to resume providing equipment and software to Huawei. This is likely to cast a shadow over this week's trade consultations.

China's new purchases of US agriculture products can be suspended at any time. If the US does not fulfill its promises regarding Huawei, then Washington will get nothing of substance from China, even if some agreements are reached amid the consultations. China is paying close attention to whether Trump's words about Huawei are just empty talk.

With Washington's crackdown, Huawei's smartphone shipments reached 118 million units in the first half of 2019, up 24 percent year-on-year. The company is projected to be on a steady uphill path. 

Even if Trump breaks his promise to the Chinese company, Huawei can bear the economic losses, but the US will have to bear the consequences of its bad faith. We advise the US to fulfill its promises regarding Huawei as soon as possible.

The author is a reporter with the Global Times.


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