Trump and Xi Talk as Brews of the United States and China Tech Fight
Trump and Xi Talk as Brews of the United States and China Tech Fight
President Trump said he had a "very good conversation" with President Xi Jinping of China that marked progress in the nations' trade dispute, hours before federal prosecutors filed charges against a Chinese technology firm for allegedly stealing trade secrets.
The president's optimistic assessment came as a stalemate in trade threatened to undermine a planned meeting between Messrs. Trump and Xi at the summit of the Group of 20 leaders in Buenos Aires later this month.
Mr. Trump said the two leaders discussed many issues by telephone on Thursday, including the trade dispute that has generated value-added tariffs on hundreds of billions of dollars worth of goods flowing between the two countries, worrying businesses and American investors.
"Those discussions are going quite well with the meetings scheduled at the G-20 in Argentina," he wrote on Twitter, encouraging the stock market.
The president's chief economic adviser, Larry Kudlow, echoed the president's optimism and said that in an interview the call represented "a thaw" in relations.
However, there was no sign that the United States would give in to its refusal to resume trade talks with China until Beijing presents a concrete proposal to address Washington's broader economic grievances.
The administration followed Mr. Trump's optimistic comments with a characteristic shot at China's bow, a reminder of the technological rivalry that has caused significant tensions between the two largest economies in the world.
The Department of Justice of the United States accused the Chinese state company Fujian Jinhua Integrated Circuit Co., its Taiwanese partner
United microelectronics
Corp.
and three Taiwanese citizens stealing trade secrets from the largest US memory chip maker. US, Micron Technology Inc., in an indictment before a grand jury that was revealed on Thursday.
The measure came days after the Department of Commerce took over. a potentially fatal blow to Jinhua by banning exports and technology transfers of US origin to the company, which depends on technology to produce its own chips. Jinhua, an emerging company backed by $ 5.7 billion in Chinese state funds, is central to China's plan to build a world-class semiconductor industry and stop relying on foreign technology.
Attorney General Jeff Sessions also criticized China on Thursday, saying recent activity showed it was violating an agreement reached with the Obama administration under which both governments agreed not to support cyberattacks to steal corporate secrets from each other.
"In 2015, China publicly pledged not to target US companies for economic gain," Sessions said. "Obviously, that commitment has not been maintained."
The representatives of Jinhua and the Chinese embassy in Washington did not comment. A lawyer for United Microelectronics declined to comment.
Also on Thursday, Mr. Sessions announced a new "China initiative" to better combat the theft of trade secrets, bribes, illegal foreign lobbying and trade agreements that could give foreign investors access to critical technology from the United States.
Mr. Sessions said that a new working group of Justice Department officials, including the top federal prosecutors in the districts of California, Texas and other states, would increase the commitment of security forces to American universities, where the Department Justice argues that the initiatives of the Chinese Communist Party point to technology. and threaten academic freedom.
Tensions with China have been a sensitive point in many rural communities in the US. UU After the Trump government imposed tariffs of $ 250 billion on Chinese imports, Beijing responded with retaliatory tariffs on US agricultural exports. UU To China, harming agricultural communities, many of which are counted among Mr. Trump's supporters. Voters have raised the issue of tariffs at election rallies before midterm elections in the United States.
Mr. Kudlow, however, denied that politics was behind the conversation. "It is a serious international diplomacy," he said.
In their conversation, Mr. Xi told Mr. Trump that the economic and commercial disputes could harm both countries, according to the Chinese state broadcaster China Central Television.
CCTV also reported that Mr. Trump had initiated the phone call and said that Mr. Xi was willing to meet with the president at the G-20 summit to "exchange in-depth views on China-US relations and others." important issues. "A Trump administration official confirmed that the US requested the call.
USA UU He wants China to present a specific negotiating agenda before the two sides resume preliminary talks to advance the negotiations. But Beijing said it will not provide specific points until the two sides meet to make a proposal.
"We have not had a satisfactory response" from China, Mr. Kudlow said. "We were waiting."
Mr. Kudlow also sought to alleviate concerns that the Trump administration's trade struggle with China would have a significant impact on the growth of the United States or the profits of US companies.
"I will not deny that there could be a very modest effect" on the economy of the United States, he said at a conference on small businesses organized by the Washington Post. But he added: "We are doing it right now without China ... our small businesses are shooting up."
Mr. Kudlow said that national security adviser John Bolton will take the initiative in planning this month's bilateral meeting with Mr. Xi and his delegation, which may include a lunch or dinner. Officials from the National Security Council, the Treasury Department and the Office of the United States Trade Representative participate in the planning.
Business lobbyists in Washington expected the meeting in Argentina to be like a meeting that Mr. Trump had with the President of the European Commission, Jean-Claude Juncker, in July, which helped put an end to a trade struggle between the European Union and the United States.
But Mr. Kudlow urged caution when drawing such conclusions. "It's not like the visit to the EU," he said.
"If they do not make a satisfactory offer, then the president will continue aggressively pursuing his agenda and I think he has the right to do so, I say it as a free trader," Kudlow said earlier in the day. "The main culprit is China."
A business official closely following talks between the United States and China says the Treasury, which plays an important role in the meetings of the Group of 20, has been pushing to seize the opportunity for the two sides to agree on a broad agenda. of negotiations, including bilateral trade Deficit, transfer of technology and practices of state enterprises.
But the United States trade representative, Robert Lighthizer, some US officials say, has argued that the time for negotiations has not yet come because China has not yet felt completely affected by US tariffs. UU
-Bob Davis and Dustin Volz contributed to this article.
Write to Vivian Salama in vivian.salama@wsj.com, Aruna Viswanatha in Aruna.Viswanatha@wsj.com and Kate O'Keeffe in kathryn.okeeffe@wsj.com
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