Published: Wed, November 06, 2019
Worldwide | By Lisa Hogan

US 'optimistic' for phase 1 trade deal with China

US 'optimistic' for phase 1 trade deal with China

Trump has said the agreement will be completed in the U.S. He did not specifically mention Huawei, though, but things seem to be improving. He also said licenses will be coming "very shortly" for US firms to sell components to China's Huawei Technologies Co. Despite the ban, Huawei still hopes to ship 270 million handsets this year, up 31% from the 206 million it delivered in 2018.

Ross also defended the US's engagement in Asia after Trump skipped the Asean meetings for the second straight year.

Chinese Premier Li Keqiang on Monday met a U.S. delegation that included National Security Adviser Robert O'Brien and U.S. Commerce Secretary Wilbur Ross at a regional summit in Bangkok. Huawei, for its part, has argued that the company does not have close ties to the Chinese government.

The longer Huawei is without Google's services, the worse the situation will become. But that reprieve was to last for 90 days and it ended in August. He said his office has gotten 260 solicitations for licenses.

US Commerce Secretary Wilbur Ross on Tuesday said he was "optimistic" of a phase one deal in trade negotiations with China to calm global jitters over the ongoing dispute between Washington and Beijing. During the interview, Ross said that the licenses "will be forthcoming very shortly".

Licenses for the sale of components to Huawei Technologies Co. will be available to United States companies "soon". Putting national champion Huawei in existential danger via the entity list is just too convenient a negotiating chip for its to be plausible that the two issues are unrelated.

And while that could be considered good news for Huawei, some even better news might be coming.

The US has already signed trade deals with Japan and South Korea that appeared likely to stave off auto tariffs, but its talks with the European Union have been moving forward more slowly. -China trade agreement could be signed this month.

He noted that the first phase of negotiations covered only items like soya beans - which the U.S. wants China to buy more of - and not what he called "structural" issues like intellectual property rights, forced technology transfer and equal market access - the reasons Washington began imposing tariffs on Chinese products past year. Thus Huawei removed one important issue from its list.

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