U.S. business groups praise Trump for trade cease-fire with China

U.S. business groups praise Trump for trade cease-fire with China

The revelation came in a public address following talks with Chinese president Xi Jinping at the recent G20 summit in Osaka, Japan, and while no individual company was mentioned, Silicon Valley was, which is home to Google, Intel, Apple, Microsoft and many more tech giants.

White House economic adviser Larry Kudlow said Sunday resumption of trade talks between the USA and China "is a very big deal", but acknowledged there is no immediate prospect for an agreement between the world's two largest economies. Last year, the president announced he would reverse a seven-year ban on the company's purchases of US components and technology originally imposed by the Commerce Department amid accusations it violated sanctions on Iran and North Korea, tweeting that "Too many jobs in China lost".

"Business Roundtable is encouraged that President Trump and President Xi agreed to resume trade negotiations and suspend any further tariff escalation", the organization said in a statement on Saturday.

Trump's remarks apparently contradict the Commerce Department ban, and he refused to confirm that Huawei would be formally removed from the blacklist.

Trump said over the weekend that the meeting with Xi had been "excellent" and that the relationship with China was "right back on track".

"The company was forced to stop supplying products to HUAWEI, but two weeks ago the process was renewed after close investigation of the relevant laws".

Huawei's USA sales of network gear evaporated after a US congressional panel labelled the company a security threat in 2012 and told phone carriers to avoid it. "If President Trump backs off, as it appears he is doing, it will dramatically undercut our ability to change China's unfair trades practices".

USA stock futures jumped ahead of Monday's open as investors reacted to the progress between the US and China at the G20 as well as the historic meeting between President Trump and North Korean's leader Kim Jong Un. The latest World Trade Outlook Indicator reading of 96.3 remains at the weakest level since 2010, signaling continued falling trade growth in the first half of 2019, according to the World Trade Organization.

American officials accuse Huawei of facilitating Chinese spying, a charge the company denies, and see it as a growing competitive threat to US technology industries. China also agreed to hold back from imposing tariffs and will purchase more United States agricultural products. That's very complex, by the way.

Marketers are concerned with the implications that the Trade War can hold off.

Kudlow repeated an assessment made days before the talks broke down, that the USA and China are 90% done on a trade deal. The president shares the concerns of lawmakers about national security and plans to meet with "senators and others" to discuss the issue, Kudlow added.

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