China is ‘ready to deal’ — or to retaliate
Ambassador to U.S. expresses desire to ‘work together’ but vows Beijing will act to protect interests. ‘We will do whatever’s necessary to protect the legitimate interests of our companies, of our people and of our country.’ — Cui Tiankai, Chinese ambassa
Beijing is committed to striking a trade deal with the U.S., but it’s ready to respond with more countermeasures, said Chinese envoy Cui Tiankai, as he called the blacklisting of Huawei by the United States an “unusual” act of state power against a company.
Cui said in an interview with Bloomberg TV on Friday that China wants to continue working toward a trade agreement that President Trump and Chinese President Xi Jinping can finalize. There are no official discussions underway about a meeting between the two leaders, said Cui, the Chinese ambassador to the U.S.
The two sides should engage in cooperation and collaboration, he said, adding that “trade is about mutual benefits, war is about mutual destruction. How can you put these two very different concepts in one term?”
Trade talks between Beijing and Washington stalled this month as Trump accused China of backing out of a deal that the U.S. said was almost completed. In response, Trump hiked the tariff rate on $200 billion in Chinese imports. The U.S. also released a list of about $300 billion in Chinese goods that could face additional tariffs, including clothing, toys and mobile phones.
If Trump follows through on that threat, U.S. levies imposed since last year would cover essentially all imports from the Asian nation.
There are signs the trade conflict is spilling over into other areas, especially technology. The Trump administration last week placed Huawei Technologies Co. on an export blacklist, choking off China’s biggest technology company from its U.S. suppliers. Huawei, according to the administration, poses an undue risk to U.S. national security.
Cui said the accusations against Huawei are a “groundless suspicion,” and he described the U.S. action as an “unusual” move that mobilizes “state power against a private company.”
Cui’s comments underscored China’s efforts to defend its rights and a national prize like Huawei while avoiding red lines that might shatter hopes for a truce. Trump himself used a similar approach a day earlier in suggesting that Huawei could become part of an accord even as he scorned the company as “dangerous.”
Asked about Chinese retaliation to the U.S. moves, Cui said, “We will do whatever’s necessary to protect the legitimate interests of our companies, of our people and of our country.
“If things are moving in the wrong direction, then you could see a response very soon,” he said about the timetable for a Huawei response. “But if we could work together to push in the right direction, then things will get better, of course.”
At the heart of Trump’s crackdown is the suspicion that Chinese firms help Beijing spy on foreign governments. Huawei’s chief financial officer was arrested in Canada last year, and the U.S. is seeking her extradition on charges she helped the company defraud banks by concealing business dealings with Iran in violation of U.S. sanctions. She denies the charges.
“What are people really up to under the pretext of national security? We don’t know,” Cui said Friday. “Can they really stop the technological progress? Can they really deprive people of the right to benefit from the technologies? I don’t think so. And do they really have the interests of the American people in mind? I don’t think so either.”
Trump said Thursday that Huawei could “be included in some kind of trade deal” with China, without offering any details. He added that “Huawei is something that’s very dangerous. You look at what they’ve done from a security standpoint, from a military standpoint, it’s very dangerous.”
The U.S. is also considering putting at least five Chinese surveillance equipment firms on the same blacklist as Huawei. In another move that could target China, the Commerce Department said Thursday it was considering a rule to put anti-subsidy tariffs on products from countries that undervalue their currencies.
China’s tone has become more belligerent since the U.S. escalated the trade war. The U.S. “continues to attack Chinese companies not because they have done anything wrong, but because they are too outstanding for the United States to accept,” the state-run Xinhua News Agency said in a commentary Friday.
“We still believe that talks, communication, consultations on equal footing is the only way out for any dispute between us and we are still committed to that,” Cui said Friday. “We are ready to deal with the current administration and President Trump.”
When asked about the potential for a meeting between Xi and Trump next month at a G-20 meeting in Osaka, Japan, he said, “So far there’s no official discussion about a possible meeting ... . But the possibility is always open.”