The Pacific Reset: Day 208 — an 'unreasonable crackdown' and 'smear' on Chinese companies - SupChina
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The Pacific Reset: Day 208 — an ‘unreasonable crackdown’ and ‘smear’ on Chinese companies

Since early July, we’ve been following the U.S.-China trade war with close attention, and have dated the official beginning of this tiff to $34 billion of tariffs on Chinese goods going into effect on July 6.

Well it’s now Day 208, and we’re going to begin calling it the Pacific Reset. Here’s the state of things:

Huawei CFO Mèng Wǎnzhōu 孟晚舟 is to appear in a Canadian court for bail review after Canada received a formal extradition request from the U.S., prompting a response from China via its foreign ministry spokesperson:

“We strongly urge the U.S. to stop its unreasonable crackdown on Chinese companies. For some time now, the United States has deployed its state power to smear and crack down on targeted Chinese companies in an attempt to kill their normal and legal business operations.”

The foreign ministry added that China will “firmly defend” its companies.

(See Xinhua report in Chinese for original vocabulary: unreasonable crackdown is 无理打压 wúlǐ dǎyā.)

Huawei has also released a statement, saying it “denies that it or its subsidiary or affiliate have committed any of the asserted violations of U.S. law set forth in each of the indictments.”

“Australia’s TPG Telecom Ltd yesterday said it has abandoned building its mobile telephone network because it relied on Huawei Technologies Co equipment that has been banned by Australia’s government on security grounds,” reports Reuters.

“The latest developments in the Huawei case are a major topic of discussion on Chinese social media, sparking anti-American sentiments, along with hundreds of netizens calling for the support of Huawei,” reports What’s on Weibo.

Paul Triolo weighed in on this matter earlier today:

It’s political: U.S. puts heat on China with Huawei indictment, extradition request

Aside from Huawei news, there are some small developments in trade talks between China and the U.S.:

  • U.S. Treasury Secretary Steve Mnuchin “said on Tuesday he expected to see significant progress in trade talks with Chinese officials this week and that U.S. charges against telecommunications giant Huawei were a separate issue,” reports Reuters.
  • The White House confirmed that it is preparing to receive a Chinese delegation for trade talks on January 30-31, and “negotiations will be led by Robert Lighthizer and include trade hawk Peter Navarro,” says CNBC.

Previously in SupChina’s trade war coverage:

Trade war, day 201: U.S. cancels lower-level trade talks ahead of Liu He visit

Jeremy Goldkorn

Jeremy Goldkorn worked in China for 20 years as an editor and entrepreneur. He is editor-in-chief of SupChina, and co-founder of the Sinica Podcast.

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