China has demanded that the sanctions imposed on the Chinese tech company Huawei by the United States should removed with immediate effect. This demand was made by a spokesman for the country’s commerce ministry on June 27 even as US president Donald Trump is set to meet Chinese counterpart Xi Jinping in a day or two.

Ministry spokesman Gao Feng said that US’s abuse of export controls is opposed by China. Feng also urged the US to be more cooperative in its attitude.

It was possible to strike a trade deal with China during his meeting this week with Xi, Trump had said on June 26. At the same time, Trump said that he would not be averse of imposing tariffs on practically all products imported into eth US from China in case no agreement was arrived at.

Trump has also suggested that Huawei could be part of a deal.

According to a report published by Wall Street Journal, the terms and conditions of ending the trade war between the two largest economies of the world would be presented to Trump by Xi which would include the condition of removal of the ban on Huawei of not being able to access US technology. Among the other considerations to be presented to Trump by Xi, according to the report, the more important ones include lifting of all punitive tariffs on Chinese goods by the US and not forcing China to pledge purchasing more goods from the US than it had agreed to earlier.

Huawie has been black listed by the US Commerce Department by placing it on its ‘Entity List’ which is a list of companies that are perceived to be a threat to the national security of the country. The ban prevents all American companies from doing any goods or technology based transactions with Huawei without getting prior approval from the US government.

All allegations against it have been denied by Huawei repeatedly.

“We urge the United States to cancel immediately sanctions on Chinese companies including Huawei to push for the healthy and stable development in Sino-US ties,” Gao said, while replying to a question of whether a deal could be reached between the two sides about the US bans on Huawei and some other Chinese tech companies.

Gao reminded of the comments from Xi to Trump during a phone call between the two last week of meting out fair treatment to Chinese companies. That phone call had triggered new hopes among markets about a possible trade agreement between the two parties and put an end the trade war between them that has bene going on for more than a year now.

China was accused by the US of going back on promises that it had made to bring in reforms in its economy which lead to a stalemate in the trade negotiations between the two countries.

Announcement of adding more Chinese companies as well as government owned organizai9otn that is engaged in super computing with military applications to its blacklist was announced by the US Commerce Department last week. The implications of the blacklisting are similar to that for Huawei.

(Adapted from MoneyControl.com)

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