The U.S. has escalated its attacks on China’s Huawei Technologies right before high-level talks on a broader trade dispute, risking muddying the waters as top commerce negotiator Liu He arrives in Washington.
Donald Trump’s administration will press Liu’s team to prove they can keep their promises in the talks focused on U.S. demands for structural changes to China’s economy and Beijing’s pledge to buy more American goods.
Indictments announced yesterday against Huawei – China’s biggest telecom company – could throw a wrench into the mood for the meetings. U.S. prosecutors accuse the company of stealing trade secrets and committing bank fraud. The case against Huawei contains a bigger message for world leaders considering whether to use its equipment in 5G networks: Don’t trust China.
The charges attack Huawei’s credibility at a time it is trying to convince the world it’s not an espionage tool for Beijing. Huawei denied the charges, and China called them “unreasonable.”
The stakes are extremely high, both for Huawei and the broader trade talks. It’s just a month until an agreed truce on trade ends. The U.S. might say the Huawei issue is unrelated, but Beijing is likely to see it differently.
