Mr. Trump told members of the G7 Chinese Officials called him because they are ready to make a deal. But Chinese officials didn’t call Mr. Trump. Trump put on that performance to keep stock prices up. China won’t come back to the negotiating table if the new rounds of tariffs go into effect September 1st.
China is ready to go the distance with Mr. Trump. But American companies want Trump to end his tariff war. Tech companies continue to take a beating in China, and the new round of tariffs will take a toll on their U.S. revenue as well, according to the Times. Apple, Google, Microsoft, and other tech companies, want Trump to work with Huawei permanently, but Trump only gave them a 90-day permit. Mr. Trump thinks China will sign a trade deal quicker if he bans Huawei from doing business in the United States.
CEO Ren Zhengfei told the press the ban will only cost his company $10 billion in revenue instead of the $30 billion he thought the company would lose when the ban went into effect. The company’s global business is on fire, according to Zhengfei. Huawei will build 5G platforms for more than 50 countries, according to the New York Times. American tech companies know China is ahead in the 5G race. But Trump continues to use Huawei as the poster boy for what’s wrong with doing business with the Chinese.
Huawei spies for the Chinese government, according to Mr. Trump. T-Mobile and Motorola claim China stole intellectual property, but the allegations of spying didn’t stop those companies from doing business with Huawei before Trump instituted the ban.
U.S. prosecutors from the Eastern District of New York are out to prove Huawei spies for China’s government. Prosecutors also want to prove Huawei stole employees from American tech companies, according to Fox Business.
The trade war with China is not about getting the Chinese to buy more farm products. The war with China is about global tech dominance, according to the New York Times. Mr. Trump wants to slow down China GDP growth. and banning China’s tech industry helps achieve that goal.
But China’s tech companies won’t change their business model to appease Mr. Trump, according to the Chinese news agency. Huawei signed a 5G deal with Russia, recently. The company also has a solid presence in North Korea and Iran as well as in Europe. Huawei will survive Trump’s attempt to destroy them, according to Zhengfei. Ren said his company will still do more than $100 billion in revenue in 2019.
Dil Bole Oberoi
