China slams US 'lies' about Huawei-government ties

Negotiations between the United States and China have soured dramatically since early May when Chinese officials sought major changes to the text of a proposed deal that the Trump administration says had been largely agreed

China slams US 'lies' about Huawei-government ties

Aimed at helping U.S. farmers mitigate the losses suffered as a result of the 10-month-long trade war with China, Trump said payments to farmers would be determined by where they farmed rather than by which crops they grew.

Chinese Foreign Ministry spokesman Lu Kang said U.S. politicians have spread rumors about Huawei without providing evidence.

Trump, meanwhile, unveiled a new $16 billion aid package to help farmers hit by tariffs. Trump himself used a similar approach a day earlier in saying Huawei could become part of an accord even as he called the company "dangerous".

The statement Friday comes amid allegations the company facilitates mass surveillance in China's northwestern region of Xinjiang and could be targeted by Washington in a trade war with China.

U.S trading partners have lashed back with retaliatory tariffs of their own, focusing on US agricultural products in a direct shot at the American heartland, where support for Trump runs high.

"What are people really up to under the pretext of national security?"

"It's not economics", Reinsch said.

Moreover, failure to resolve trade differences and a further escalation in other areas, such as the auto industry which will cover several countries, can further dent business and financial market sentiment, negatively impact emerging market bond spreads and currencies, and slow investment and trade.

Financial markets slumped Thursday on heightened tensions between the USA and China. If Trump follows through on that threat, U.S. levies imposed since previous year would cover essentially all imports from the Asian nation.

The report also showed orders were not as strong as previously thought in March and shipments were weak over the last two months, further evidence that manufacturing and the broader USA economy were slowing after a growth spurt in the first quarter driven by exports and a buildup of inventories.

The tariffs will instead be paid for by companies importing goods into the United States and are often passed on to USA consumers in the form of price hikes, a reality acknowledged by Trump's own top White House economic adviser Larry Kudlow. Wall Street tumbled Thursday, as investors expressed fears that the ongoing trade war between the world's two largest economies would stymie global economic growth.

On Friday, Beijing accused the U.S. of seeking to "colonise global business" with moves against Huawei and other Chinese technology companies.

In one month, leaders from the world's top economies will meet at the Group of 20 summit in Osaka, Japan, to discuss key issues in the global economy. There are no current plans for talks to occur before then.

Earlier this month, the US and China's 90-day truce collapsed without a deal. Huawei ban raises brand profile Huawei says it is aiming to be biggest smartphone brand by 2020. You look at what they've done from a security standpoint, from a military standpoint, it's very risky.

"Our farmers work hard, are the most productive in the world, and we aim to match their enthusiasm and patriotism as we support them, the secretary declared".

Ben Haber, a spokesman for Huawei, said the company had no comment on Trump's remark.

As part of the aid package, the Department of Agriculture will provide $14.5 billion in direct payments to producers. He accused China of deliberately - and politically - targeting farmers, many of whom voted for the president, through its tariffs, and said: "most of those go to agriculture because agricultural has a surplus".

China has raised tariffs on $110 billion of US products and has said it's prepared to do more to defend its national interest. "It's a good time to be a farmer, we're going to make sure of that". Dairy and hog farmers are also eligible. The aid for farmers will ultimately come from taxpayers, said one expert, ABC reports.

The aid offsets some of the losses. We want to get them back to the point where they would have had if they had a good year. "I don't think any kind of bailout package, even if it was permanent, would substitute for the loss markets", said Rufus Yerxa, president of the National Foreign Trade Council and a former USA trade official.

Later Trump said, "I think things probably are going to happen with China fast because I can't imagine that they can be thrilled with thousands of companies leaving their shores for other places".

In fact, tariffs are paid by American businesses and consumers, who will be the ultimate source of the bailout funds. "Do the Chinese pay some of the tariff?"

Trump's suggestion on Thursday provoked rebukes.

"The president feels that China is paying for this program through the tariffs", Perdue said. And Beijing announced on May 13 it would raise tariffs on $60 billion in US goods in retaliation.

Some of these tariffs have been passed on to U.S. consumers like those on washing machines, while others have been absorbed by importing firms through lower profit margins.

Latest News