The way the United States is treating Chinese tech giant Huawei, is “extremely unfair”, according to one senior executive of another Chinese tech giant Alibaba. The executive opined that the strict action taken by the US to prevent Huawei from accessing the US market was “very politically motivated”.
The US was using the trade war in an attempt to curb China’s rise, said Joe Tsai, the e-commerce giant’s executive vice-chairman.
While expressing great confidence and optimism about the prospects of the Chinese economy and said that despite the slowdown the Chinese economy was fundamentally strong, he believed that it is necessary to implement stimulus such as tax cuts to boost the Chinese as it tries to ward off the negative impact of the trade war with the US.
In addition to the slapping of very high rates of import tariffs on Chinese products into the US, the administration of President Donald Trump has also increased scrutiny of investments form, China in the country and has even stopped a number of deal from taking place because of national security concerns.
This attitude of the US government towards China and Chinese companies has seen Huawei getting entangled with allegations against it that the equipment supplied by Huawei, the largest telecommunication equipment manufacturer in the world, could be used for spying by Chinese agencies.
All of such allegations have been repeatedly denied by Huawei.
“I think what the American government and together with the Five Eyes Alliance – what they’re trying to do with Huawei – is a bit unfair, there’s definitely a political agenda behind it,” Tsai said at a Reuters BreakingViews event in Hong Kong.
While Huawei has been denied across to the markets of the United States and its allies, including Australia and New Zealand, by the respective governments, considerations are being made about restricting access to the company by Canadian and United Kingdom governments.
A diplomatic war has been sparked between Canada and China after the arrest of Huawei’s finance chief Meng Wanzhou in Canada last month at the behest of the US which wants to hold her in trial over allegations that she had tried to aid a company that allegedly had violated US sanctions on Iran.
He hoped the relationship between Canada and China would improve, said Tsai, who is also a Canadian passport holder,
“I love Canadians, they’re great,” Tsai joked when asked about Meng’s arrest.
Amid a tit-for-tat escalation in tariffs, there has been a souring of relations between Washington and Beijing at a very fast pace. The trade war has also jolted financial markets and has raised serious concerns about its effect on global supply chains and investment plans.
“President Trump may have started it focusing on the trade deficit itself … but over the course of the last nine months it was blown into a bigger anti-China problem,” Tsai said, adding the trade war has spurred anti-China sentiment.
(Adapted from Reuters.com)