Huawei executive's arrest will not hinder trade talks with China, Kudlow says

Despite a strain in the relationship between Beijing and Washington following the arrest of an executive of Chinese electronics giant Huawei in Canada at the U.S.’ behest, one of President Trump’s top economic advisers doesn’t believe trade talks between the two superpowers will be affected.

White House Economic Adviser Larry Kudlow said on “Fox News Sunday” that while some issues still need to be sorted out between the U.S. and China, the trade talks between the countries are going well.

“China has finally issued some very positive statements,” Kudlow said. “They agree with the timetable. They agree with the deadlines."

Kudlow added: “There are a lot of good things out there.”

The major issue of contention between Washington and Beijing at the moment is the December 1 arrest of Meng Wanzhou in Vancouver trying to evade U.S. trade curbs on Iran.

Meng, the daughter of Huawei's founder, was detained at the request of the U.S. during a layover at the Vancouver airport on the same day that Trump and his Chinese counterpart, Xi Jinping, agreed over dinner to a 90-day cease-fire in a trade dispute that threatens to disrupt global commerce.

The U.S. alleges that Huawei used a Hong Kong shell company to sell equipment in Iran in violation of U.S. sanctions. It also says that Meng and Huawei misled American banks about its business dealings in Iran.

Huawei is the biggest global supplier of network gear for phone and Internet companies and has been the target of deepening U.S. security concerns over its ties to the Chinese government. The U.S. has pressured European countries and other allies to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.

Meng's arrest has threatened to increase U.S.-China trade tensions and shook stock markets globally last week. But U.S. Trade Representative Robert Lighthizer, speaking on CBS' "Face the Nation," downplayed the impact of the arrest on trade talks between the two countries aimed at defusing the tensions.

"It's my view that it shouldn't really have much of an impact," he said.

The surprise arrest raises doubts about whether the trade truce will hold and whether the world's two biggest economies can resolve the complicated issues that divide them.

The Associated Press contributed to this report.

Load more..