Tech stocks rise on 'relief rally', says international economics expert



we're seeing right now it's really a relief rally we are far away from the endgame here the big shock coming out of Osaka was the president making unilateral concessions to China both in scaling back the Huawei embargo and suspending the next round of tariffs which was scheduled to be 25% on three hundred billion dollars worth of Chinese goods so it's a relief rally but we are far from the endgame I can't reduce its dependence while we can't reduce its dependence on US policy but go ahead president Trump did say that he had some commitments from President Xi to pick up purchases of u.s. goods in particular farm goods but chinese state media is absolutely denying it and we've yet to hear anyone from the administration provide evidence that China's really made any commitments here James you've seen thanks just to speak so I'll let you do so but answer a question for me did we give up a lot on Huawei and get very little and return in your opinion so far we haven't given up anything and it's not clear what relief while we will get the chip companies some of the big companies like Google that do the Android software they're probably happy but what would have gone out of business within a year or we stay wouldn't have been able to make the same quality products they depend on the US so this wasn't lifeline I think it's also holding Huawei hostage to progress in the trade talks if it doesn't look like it's going the right way the president can always put controls back on so think of it more as a ploy to get progress in the trade talks rather than a reprieve so how do you reconcile what we've heard the rhetoric we've heard over the past months but really years about Huawei being a national security concern how can it be a bargaining chip and a national Security's concern at the same time and we're already hearing people wha makers like senator Rubio speak out so where do you go from here well this is the big problem I mean the President on the one and has said that Huawei is a national security threat on the other hand he said in the run-up to the summit that he anticipates Huawei being part of a final deal so the administration has yet to reconcile this dilemma whether we're going to treat Huawei purely as a national security concern or whether it's a bargaining chip to get a trade deal with China James on that topic as well do you think that the president is going to be able to use Huawei as a bargaining chip especially since we're already seeing this push back and many including himself have sat at the national security concern it's a national security concern only when people buy huawei products so Huawei itself isn't the problem it's when you install Huawei equipment on your networks particularly if you're in NATO country so you can pursue both policies at once keeping Huawei afloat so they can sell the places like Africa and encouraging our European friends not to buy from them so it's a little complicated but it's the technology that will determine whether or not Huawei is this success so he has them on a choke leash you

Author Since: Mar 11, 2019

  1. Benn Steil is completely correct. Trump gave to China, and China gave nothing back. US=lost. It's good that some senators have spoken out about the hypocrisy of saying Huawei is a threat yet American should continue to support Huawei's rise to power and crush America. James Lewis is in denial.

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