China lodges solemn representations with U.S. over Huawei

A pedestrian walks past a Huawei product stand at an EE telecommunications shop in central London

A pedestrian walks past a Huawei product stand at an EE telecommunications shop in central London

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Trade talks between Beijing and Washington stalled this month as Trump accused China of backing out of a deal that was taking shape.

US Secretary of State Mike Pompeo claimed in an interview that Huawei is not truthful about its relationship with China´s government and that this means any data touched by the company is "at risk" of falling into the wrong hands.

"The Chinese government is confident and able to protect the legal interests of Chinese firms", Gao said.

Pompeo said the chief executive of China's Huawei Technologies was lying about his company's lack of ties to the Beijing government, which he said represented a security risk. "The Huawei CEO on that at least isn't telling the American people the truth, nor the world". -China trade deal, while at the same time calling the Chinese telecommunications giant "very risky".

A U.S. State Department official recently met a Korean Foreign Ministry official and pointed out that LG Uplus uses Huawei-manufactured equipment, and said the telecom's mobile services must be restricted in "sensitive areas" within Korea, presumably where there are U.S. military installations.

"Regarding the relevant United States measures, China has lodged solemn representations", Commerce Ministry spokesman Gao Feng said at a weekly briefing in Beijing.

Washington last week effectively banned USA firms from doing business with Huawei, the world's largest telecoms network gear maker, citing national security concerns.

Companies around the world were scrambling to comply with the USA blacklist, which would prevent them from supplying American technology components or software to Huawei.

Japan´s Panasonic was the latest to announce it would suspend transactions with Huawei. "If we made a deal, I could imagine Huawei being possibly included in some form or some part of it". Cui Tiankai, China's ambassador to the United States, said, "It's quite clear it is the usa side that a few times changed its mind overnight and broke the tentative deal already reached".

"When farmers can't make sales, they can't earn income".

He then more than doubled tariffs on 200 billion USA dollars in Chinese goods and threatened to hit the remaining 300 billion US dollars in products imported each year with 25 percent tariffs.

Washington earlier banned Huawei network equipment from the USA, citing concerns that the company had installed backdoors on it to spy on United States citizens. But he said that China is "indirectly" paying for the aid.

Still, Beijing signalled some willingness to work with Washington to solve their trade dispute.

The funds will ultimately come from the taxpayers because it is federal money that is being used for the bailouts, said Bill Reinsch, the Scholl Chair and senior adviser at the Center for Strategic International Studies.

"While Huawei might have been able to bypass Qualcomm and make its own processors and modems, it can not sell smartphones with unlicensed IP outside China".

Vodafone soon followed suit, announcing a temporary suspension of pre-orders for Huawei handsets.

The ARM announcement "is really a death knell for Huawei´s device business", said Avi Greengart of the consultancy Techsponential.

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