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American companies are restricted from doing business with Chinese tech giant Huawei. Photo: AFP

Huawei ‘not a chess piece’ in US-China trade deal, US Treasury Secretary Steven Mnuchin says

  • Issue of Chinese telecoms firm’s access to US markets will be dealt with as a national security issue, he says
  • Huawei will not be part of phase one trade agreement, or any subsequent phase
Huawei

The US-China trade pact avoids dealing with issues over Huawei Technologies’ access to American markets and suppliers, according to the US Treasury Secretary.

“I don’t view Huawei as a chess piece,” Steven Mnuchin said in an interview with CNBC on Wednesday.

Questions about the Chinese telecoms firm’s access to US markets would be dealt with separately as a national security issue, he said, not in the first phase of an agreement with China that was signed in Washington on Wednesday – or in any subsequent phase.

“Our national security issues are our primary concern,” Mnuchin said. “So when it comes to our government networks, when it comes to sophisticated business networks, military networks, and networks of all of our allies we want to make sure those networks are fully secure.”

US President Donald Trump’s administration in May moved to restrict US companies from doing business with Huawei and another Chinese company, ZTE. The administration said Huawei gear could be used for spying – an allegation the company denied.

The US has been pressing allies, most prominently Britain, to prevent the Chinese company’s products from being used in 5G networks because of its perceived security risk.

The US has warned that intelligence sharing in future could be at risk if Britain does not ban the company.

Mnuchin said that those security concerns would not be addressed as part of the trade negotiations with China.

“Huawei is not part of the economic dialogue,” he said. “It is part of the national security dialogue, which is ongoing.”

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This article appeared in the South China Morning Post print edition as: Huawei ‘not chess piece’ in trade deal, Mnuchin says
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