Will add tar­iffs if Xi won’t talk, Trump de­clares

Meet­ing with China’s leader is goal amid dis­pute on trade


WASH­ING­TON — Pres­i­dent Don­ald Trump said Mon­day that if Chi­nese coun­ter­part Xi Jin­ping doesn’t meet with him this month at the Group of 20 sum­mit in Osaka, Ja­pan, then ad­di­tional tar­iffs of $300 bil­lion in Chi­nese im­ports will go into ef­fect.

But Trump said he ex­pects Xi to at­tend.

“I think he will go, and I think we’re sched­uled to have a meet­ing,” Trump said. “I think he’ll go, and I have a great re­la­tion­ship with him. He’s ac­tu­ally an in­cred­i­ble guy; he’s a great man. He’s very strong, very smart, but he’s for China and I’m for the United States.”

Trump made the threat dur­ing an in­ter­view on CNBC’s Squawk Box pro­gram Mon­day morn­ing. Trump ap­peared to have called in re­sponse to the U.S. Cham­ber of Com­merce, which had crit­i­cized Trump for us­ing the threat of tar­iffs to force Mex­ico to do more to halt the flow of mi­grants across the U.S.’ south­ern bor­der.

Trump said the cham­ber has its pri­or­i­ties wrong.

“They have to start rep­re­sent­ing the United States, not just the com­pa­nies that are mem­bers of the U.S. Cham­ber of Com­merce,” he said.

Trade talks with China hit an impasse last month after

the pres­i­dent ac­cused China of reneg­ing on pro­vi­sions of a ten­ta­tive agree­ment. The two coun­tries have since es­ca­lated their trade war.

“China is go­ing to make a deal be­cause they’re go­ing to have to make a deal,” Trump said Mon­day.

Trump again sug­gested that an even­tual trade deal could in­volve Huawei Tech­nolo­gies Co. The Trump ad­min­is­tra­tion is cam­paign­ing to block the com­pany from emerg­ing 5G telecom­mu­ni­ca­tions net­works around the world and has moved to cut off Huawei from U.S. sup­pli­ers, cit­ing na­tional se­cu­rity con­cerns.

“I do see it as a threat,” Trump said Mon­day. “At the same time, it could be very well that we do some­thing with re­spect to Huawei as part of our trade ne­go­ti­a­tion with China. China very much wants to make a deal. They want to make a deal much more than I do, but we’ll see what hap­pens.”

When asked whether ac­tions against Huawei could set the U.S. back on 5G, Trump said, “No.”

The U.S. is “ac­tu­ally go­ing to be lead­ing very shortly. You know, we’re lead­ing in ev­ery­thing,” he said.

Of China, he said: “As great as they are — and they are great — they don’t have near the ca­pa­bil­ity of our ge­niuses in Sil­i­con Val­ley that walk around in un­der­shirts and they’re worth $2 bil­lion.”

But by con­sis­tently link­ing the com­pany to trade talks, Trump has sug­gested his aim is to stunt China’s growth as an eco­nomic ri­val to the U.S.

“Huawei is very pow­er­ful, very strong,” he said in the in­ter­view. He said that he wants China to do well but that “I don’t want them to do as well as us.”

Trump has black­listed Huawei, cut­ting off the sup­ply of Amer­i­can com­po­nents that China’s largest tech­nol­ogy com­pany needs to make its smart­phones and net­work­ing gear. The U.S. ad­min­is­tra­tion is also press­ing al­lies in­clud­ing France and the U.K. to ex­clude Huawei from their 5G net­works.

By con­trast, Xi and Rus­sian Pres­i­dent Vladimir Putin over­saw the sign­ing last week of an ac­cord be­tween Huawei and the largest Rus­sian wire­less car­rier, Mo­bile TeleSys­tems PJSC, to

start 5G pi­lot zones in Rus­sia.

Rus­sia be­lieves that the Trump ad­min­is­tra­tion’s ef­fort against Huawei jus­ti­fies Moscow’s de­ci­sion to build a “sov­er­eign In­ter­net” to pro­tect its do­mes­tic net­work from ex­ter­nal threats, ac­cord­ing to Rus­sian Deputy Prime Min­is­ter Maxim Aki­mov.

“What the U.S. is do­ing now — they’re de­stroy­ing this world,” Aki­mov, who over­sees telecom­mu­ni­ca­tions, trans­port and dig­i­tal econ­omy in­fra­struc­ture, said in an in­ter­view last week at the St. Peters­burg In­ter­na­tional Eco­nomic Fo­rum. “But the shrap­nel will hurt ev­ery­one,” he said.

The U.S.’ moves against Huawei showed “one-sided un­friendly ac­tions of coun­tries can have fa­tal con­se­quences,” Aki­mov said. The sov­er­eign In­ter­net was about “pre­vent­ing chaos” if Rus­sia’s net­work is cut off from abroad, and not an at­tempt to iso­late the coun­try from the out­side world, he said.

On Mon­day, a Huawei ex­ec­u­tive de­fended the com­pany’s se­cu­rity prac­tices in the face of tough ques­tion­ing from mem­bers of the Bri­tish Par­lia­ment.

John Suf­folk, Huawei’s global cy­ber­se­cu­rity and pri­vacy of­fi­cer, ap­peared at a hear­ing in the House of Com­mons about the safety of Bri­tain’s telecom­mu­ni­ca­tions in­fra­struc­ture.

At the hear­ing, Suf­folk said Huawei was in­de­pen­dent and would never un­der­mine the safety of its equip­ment to sat­isfy de­mands from Bei­jing. “There are no laws in China that ob­li­gate us to work with the Chi­nese gov­ern­ment,” he said dur­ing ques­tion­ing.

Bri­tain is weigh­ing whether to al­low Huawei to play a role in its new 5G net­works. The com­pany’s equip­ment is al­ready be­ing used in the coun­try. The U.S. has threat­ened to re­strict the in­tel­li­gence it shares with coun­tries that al­low Huawei in its 5G net­works.

Over the past week, Chi­nese

au­thor­i­ties have sum­moned ma­jor in­ter­na­tional tech com­pa­nies to warn that they could face con­se­quences if they co­op­er­ate with the Trump ad­min­is­tra­tion’s ban on sales of key U.S. tech­nol­ogy to Chi­nese com­pa­nies.

A U.S. del­e­ga­tion left the week­end’s Group of 20 fi­nance min­is­ters meet­ing in Fukuoka, Ja­pan, with­out any sig­nif­i­cant break­through on China. But Trump’s re­ver­sal on a threat to im­pose new tar­iffs on Mex­ico over mi­gra­tion from Cen­tral Amer­ica lifted the mood at the meet­ing. In ad­di­tion to his talks with Xi, Trump is sched­uled to meet with Putin at the G-20 lead­ers sum­mit in Osaka.

Of the ten­ta­tive meet­ing with Xi, Trump said: “We’re ex­pected to meet, and if we do, that’s fine.”

Trump on Mon­day also promised to do “some­thing” about French wine, which he said is al­lowed into the U.S. vir­tu­ally tar­iff-free while France im­poses du­ties on U.S. wine. The pres­i­dent called the ar­range­ment un­fair.

“France charges us a lot for the wine. And yet we charge them very lit­tle for French wine,” Trump said in the in­ter­view with CNBC.

“So the winer­ies come to me and say, ‘Sir’ — the Cal­i­for­nia guys, they come — ‘Sir, we’re pay­ing a lot of money to put our prod­uct into France, and you’re let­ting’ — mean­ing, this coun­try is al­low­ing — ‘th­ese French wines, which are great wines, but we have great wines, too — al­low­ing it to come in for noth­ing. It’s not fair.”’

“And you know what?” Trump added. “It’s not fair. We’ll do some­thing about it.”

In­for­ma­tion for this ar­ti­cle was con­trib­uted by Mar­garet Talev, Kath­leen Hunter, Ilya Arkhipov, Stepan Kravchenko and Ter­rence Dopp of Bloomberg News; by Adam Satar­i­ano of the New York Times; and by staff mem­bers of The As­so­ci­ated Press.

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