Published: Sat, August 10, 2019
Money | By Ethel Goodwin

Trump says U.S. will not do business with China's Huawei

Trump says U.S. will not do business with China's Huawei

He said China's action was not manipulation but rather a decision by the PBOC not to intervene.

TOKYO, Aug 9 ― Asian shares caught the tail of a Wall Street rally today, helped by China's better-than-expected export figures but fresh concerns about Sino-US trade ties are likely to limit gains in the region. Right now the talks are scheduled in September. When pressed by reporters on whether he would cancel, he said: "Maybe, we will see what happens".

President Donald Trump says that United States and China are still pursuing a trade agreement but he is not ready to make a deal.

Tensions escalated after Washington branded Beijing a currency manipulator and threatened to impose 10% tariffs on $300 billion in Chinese imports, starting on September 1.

The interim rule, which will preclude any USA federal agency from purchasing telecom or technology equipment from the firms, is part of a sweeping effort by Washington to restrict Huawei, which officials claim is linked to Chinese intelligence.

US officials said they will engage with the International Monetary Fund to eliminate China's "unfair competitive advantage", the US Treasury said in a statement.

I am a frequent writer and public speaker on doing business in Asia and I constantly travel between the United States and Asia.

"And I really made the decision. It's much simpler not to do any business with Huawei", he said.

"We don't have to - we have such a strong dollar", he said in response to FOX Business' Blake Burman asking whether the Trump administration had plans devalue the currency during a press gaggle at the White House on Friday. That would make Chinese goods less expensive overseas but the currency's 5% decline this year against the dollar is too small to completely offset USA tariffs of 25%. On Aug. 5, the Chinese renminbi weakened to its lowest level since 2008, slipping to more than 7 per dollar. China's purchases of US crude have dropped sharply from record levels previous year. In our view, the country also wants to be seen as a responsible stakeholder in the global economy and we believe a devaluation would ruin that immediately.

He pressed his relentless campaign against the United States central bank on Friday, but backed away from calls for a weaker exchange rate for the dollar.

By keeping its currency undervalued, China can boost its exports and build trade surpluses. "The cost of tariffs imposed by the United States should be borne by the U.S. market and consumers", the association said.

"At this WTI/Brent level no one should be buying US crude if they have a choice", one trade source said. "It makes it harder for our manufacturers". "The Fed is influenced by the same things and that will probably cause a further rate cut here".

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