South Korea's Foreign Ministry and presidential office did not confirm Friday a report by the Chosun Ilbo newspaper that US officials want Seoul to block a local wireless carrier that uses Huawei equipment for its 5G services from unspecified "sensitive areas". The U.S. blames China for backing out on parts of the deal which were already agreed, while China blames the U.S. for escalating the trade war by announcing further tariffs. It also announced this week a new aid package of about $15 billion to help USA farmers, exceeding the up to $12 billion that was rolled out a year ago.
The dollar edged away from two-year highs set on Thursday after the weak US manufacturing activity data sparked worries that the trade conflict with China may hurt the world's largest economy and erode the currency's safe-haven status. The tariff money can be used, at least in theory, to benefit Americans.
Huawei has since indicated that it could roll out its own mobile operating system this year in China and internationally next year.
"It's not economics", Reinsch said.
American farmers, a key Trump constituency, have been among the hardest hit in the trade war. "Against such capriciousness and bullying, China simultaneously issued announcement about taking counter measures", said Zhang. It had been down 448 points earlier in the day. If Trump follows through on that threat, United States levies imposed since a year ago would cover essentially all imports from the Asian nation.
The USD saw a quick reversal yesterday late in the day as weak USA data pushed the dollar off its 2-year highs and reignited hopes of a rate cut by the Federal Reserve later this year.
According to the Peterson Institute for International Economics, China's retaliation so far has been selective and strategic, aiming at USA farmers and certain manufacturers. Wall Street tumbled Thursday, as investors expressed fears that the ongoing trade war between the world's two largest economies would stymie global economic growth.
Last week, the USA government issued a total ban of Huawei from working with American companies, thus forcing Google to briefly revoke Huaweis license to use Androids Google Play Services and blocking it from the Android Q beta program. There's no official discussions about a meeting between the two leaders, he said. There are no current plans for talks to occur before then.
When the USA and China eventually come to a trade deal, Huawei could still be a part of it, despite all the recent trauma the Chinese telecommunications company has suffered with the States.
His administration last week put Huawei, which it has called a threat to national security, on a blacklist that effectively barred USA firms from selling the Chinese company computer chips and other components without government approval. Huawei ban raises brand profile Huawei says it is aiming to be biggest smartphone brand by 2020.
Mr Lu said there was "deep sympathy" in China for USA farmers who have been hit by the trade war, saying that the two countries, for many years, had "friendly, mutually beneficial cooperation" in agriculture.
Turning his attention to farmers and their support Trump said, "They didn't say, 'Oh you shouldn't do this because we're going to have a bad year.' Because they've had 20 bad years if you really look".
The US economy is booming, the country is prospering and now is the time to insist on fair and reciprocal trade for US workers and farmers, he said.
Many farm groups welcomed the move, but called for a trade deal with China as soon as possible.
The direct payments will make up $14.5 billion of the $16 billion package and will be handed out on a county-by-county basis. He accused China of deliberately - and politically - targeting farmers, many of whom voted for the president, through its tariffs, and said: "most of those go to agriculture because agricultural has a surplus".