China is demanding the Trump administration back down on its sanctions against tech company Huawei Technologies as part of an eventual trade deal between the two nations.
The demand comes right after reporting linking the company to China’s military.
Chinese President Xi Jinping will demand the White House lift its ban on technology sales to the telecommunications company, the Wall Street Journal reported Thursday, citing anonymous Chinese officials. Xi will also demand the U.S. drop all tariffs and demand China purchase additional U.S. goods.
Also on Thursday, Bloomberg reported that Huawei has worked on at least 10 research military projects with Beijing over the last 10 years, citing research from published papers by Chinese academics and industry experts regarding public-private partnerships in China. Huawei and the Chinese military have disputed report of collaboration.
President Trump is set to meet with Xi to discuss trade in Osaka, Japan, on Friday during the G-20 summit, a semiregular gathering of leaders from the world’s largest economies. It will be the first major talks between the countries since trade negotiations broke down last month.
Trump has said he will decide on whether to place $300 billion in additional tariffs on Chinese goods after the meeting. The rate for the tariffs was initially set to be 25%, but Trump said Wednesday it could be 10% instead. The U.S. has 25% tariffs on $250 billion worth of Chinese goods. Adding the $300 billion on top of that would effectively place all imports under tariffs. Trump has repeatedly said he is fine with having tariffs instead of a deal, arguing the revenue they bring in makes them a net win for the U.S.
The U.S. has labeled Huawei a national security threat, limited its ability to do business in the U.S., and pressured other countries to freeze it out as well. Administration officials, such as Treasury Secretary Stephen Mnuchin, have nevertheless characterized the case against Huawei as separate from the trade talks.
