China and the Trump regime resumed trade talks over the phone this week (not in person) but progress in those talks is at a standstill according to the Wall Street Journal. And Trump is to blame for it.
First, a little background.
When Trump delayed his decision to impose tariffs on over $300 billion in Chinese goods last month, Trump promised two things: he claimed that China would immediately resume large-scale purchases of American agricultural and he said he would ease restrictions on the Chinese-owned telecommunications giant Huawei.
China wasn't obligated to follow through on a pledge they never made -- they haven't resumed purchases of American farm goods and they never said they would -- but Trump has not followed through on the pledge he actually did make to roll back sanctions on Huawei.
You may recall that Chinese President Xi Jinping traveled to the G-20 summit in Japan with a demand of his own; a demand that Trump back away from Huawei. And Trump said he would do that, but he hasn't.
From CNBC:
Trade negotiations between the world's two largest economies are stalled over disagreements surrounding Chinese tech giant Huawei, The Wall Street Journal reported Wednesday.
Progress on resolving the trade war is stuck in limbo until the White House determines how to address China's demand to back off restrictions on Huawei, the Journal said, citing people familiar with the talks. [...]
The Commerce Department added Huawei, which relies on American suppliers for components and software in several of its products including smartphones, to a blacklist in May. That essentially bans American companies from doing business with the Chinese tech giant, unless they get special permission from the department. The White House declared a national emergency over the issue, citing national security threats.
Trade talks between China and the Trump regime had already hit an impasse even before Trump threw another monkey in the wrench by picking a fight over Huawei.
What couldn't be resolved before is still unresolved and, on top of that, there's now another obstacle that Trump asked for and received.
Trump wanted to use sanctions against Huawei as leverage in trade talks with China and, now that he has it, his advisers and cabinet members don't know what to do with it.
To make matters more complicated, Congress is responding to the White House's apocalyptic description of Huawei's threat to national security and legislation to sanction Huawei has been introduced by Republicans.
There is a maze of shit between here and an elusive trade deal with China.