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‘I don’t believe there will be a deal’ between US and China, says Republican senator

Author:
Valentin Lazarov
Investors

A U.S.-China trade deal is highly unlikely and there is “no way” Huawei will be allowed to sell into the U.S. market, a Republican Senator told CNBC Tuesday.

Markets rallied Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on the imposition of any fresh tariffs on each other’s products, following a meeting at the Group of Twenty (G-20) summit in Osaka over the weekend.

Trump also softened his stance on Chinese telecommunications giant Huawei, indicating that U.S. tech companies can go back to selling components and software to Huawei. Shares of chipmakers on both sides of the Atlantic rose sharply Monday morning on the news.

Trump then told reporters in the Oval Office on Monday that trade negotiations, which had stalled in May, have “already begun,” but claimed any potential deal would need to be somewhat tilted in Washington’s favour.

However Rick Scott, the Republican senator for Florida, told CNBC’s “Squawk Box Europe” that he did not believe there would be a deal at the end of the drawn out trade war between the two nations, and reiterated the contention that Huawei represents a threat to U.S. national security, a claim the company has vehemently denied.

“Think about this – they’re stealing technology, they negotiated a deal and then walked back – I mean how many times do you negotiate a deal, somebody walks back, and the deal ever closes?” Scott said.

“They’re stealing technology, they won’t open up their market, they’re militarizing the South China Sea, they’re involved in Venezuela where Maduro is killing his own citizens – he just killed a Navy captain – so I don’t believe there will be a deal, but clearly there is no way we are going to allow Huawei to sell into the American market from a national security standpoint.”

 

 

International Financial Markets Department

Euro-Finance Ltd.

forex@eurofinance.bg

www.eurofinance.bg 

*This material should not be considered as a recommendation for buying/selling securities.

Source:CNBC