- Trump declares on Twitter that new regulations are ‘ridiculous’
- He is dismissive of ‘the national security excuse’ used to shut down trade with China, and vows that ‘America is open for business’
US President Donald Trump blasted his own administration's proposed restrictions on trade with China on Tuesday, saying that national security could not be used as an "excuse" to make it difficult for foreign countries to buy American products.
The series of four tweets " which was temporarily deleted but restored soon after " was an apparent reference to reports over the weekend that the US government is considering whether to block General Electric from continuing to supply engines for a new Chinese passenger jet.
The Trump administration was reported to be considering halting sales to China of an aircraft engine produced in part by GE. Washington is also weighing restrictions on other components for Chinese commercial aircraft, such as flight control systems made by Honeywell International.
The possible crackdown on the sale of US parts to China's aircraft industry is one element of a broader effort to limit the flow of technology to China that could help Beijing gain an economic and security edge over the US.
Trump's tweets on Tuesday departed from his usual tough stance on China and underscored the difficulty and the dilemma he now faces. While his administration has made it a priority to contain China's economic and military ambitions, the restrictions could cause further damage to an American economy that is deeply entwined with China.
….I have seen some of the regulations being circulated, including those being contemplated by Congress, and they are ridiculous. I want to make it EASY to do business with the United States, not difficult. Everyone in my Administration is being so instructed, with no excuses…
" Donald J. Trump (@realDonaldTrump) February 18, 2020
"The United States cannot, & will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave to remain competitive," Trump wrote on Twitter.
"We want to sell product and goods to China and other countries. That's what trade is all about. We don't want to make it impossible to do business with us. That will only mean that orders will go to someplace else. As an example, I want China to buy our jet engines, the best in the World.
"I have seen some of the regulations being circulated, including those being contemplated by Congress, and they are ridiculous. I want to make it EASY to do business with the United States, not difficult. Everyone in my Administration is being so instructed, with no excuses, THE UNITED STATES IS OPEN FOR BUSINESS!"
Trump did not identify the restrictions. A White House spokesman declined to comment.
China's Foreign Ministry spokesman Geng Shuang said at an online briefing on Tuesday that the report about blocking trade in the aircraft industry, if true, was "another example of the US using political means to undermine bilateral commercial cooperation and wantonly oppress China".
"The moves hurt not only the interests of Chinese businesses but also that of American companies," Geng said. "What's worse, it will severely disrupt bilateral and even global exchange and cooperation in science, technology and trade."
Trump's tweets underscore his interest in deal making came as administration officials reportedly plan to discuss aircraft parts trade with China at a cabinet-level meeting on February 28; at the same meeting, US lawmakers will also suggest imposing further sale restrictions on American tech products to China's telecommunications giant Huawei Technologies.
Washington has been engaged in a pressure campaign on Huawei, which has in recent years become a global leader in the next-generation cellular technology known as 5G. The US is concerned that Huawei's increasingly extensive involvement in the global 5G buildout will allow it to gain access to critical national security information.
The Trump administration and US lawmakers have contended that Huawei could be compelled to turn over information or data to the Chinese government, posing a threat to US national security. Huawei has repeatedly denied the allegations that its equipment could be used by Beijing for spying.
The planned cabinet meeting is to consider whether to move forward with a rule change that could expand the list of restricted US tech products. US suppliers may now continue to provide Huawei with products manufactured in overseas facilities: the proposed new rule would close that loophole by restricting sales of any devices made overseas that include at least 10 per cent American-made components, down from the current 25 per cent.
Some officials in the Defence Department had resisted those changes earlier, arguing that such restrictions could in the long run hurt American technological development by losing a source of revenue that the US industry relies on to finance its research and development divisions.
The United States has also been advocating for its global allies to exclude Chinese companies like Huawei from participating in their 5G infrastructure plans, citing similar concerns. However, the Trump administration has met with only mixed success: While Australia has banned Huawei, Britain has chosen to let Huawei into limited parts of its network, and Germany now seems poised to take a similar path.
Trump's tweet also came just days after new US regulations went into effect on Thursday extending the reach of the Committee on Foreign Investment in the United States (CFIUS), the inter-agency committee that reviews and can block foreign investments because of potential national security risks.
Also on Tuesday, a federal judge ruled against Huawei, saying it does not have grounds to sue the US government over a law restricting its ability to do business with federal agencies and their contractors.
Instead, District Judge Amos Mazzant determined that Congress had acted within its powers when it passed the 2019 National Defence Authorisation Act, including a provision that precludes agencies and contractors from buying certain equipment from Huawei and ZTE, another Chinese telecoms giant.
In its suit filed last year, Huawei had argued that the law was "unnecessarily punitive" and singled out individual companies in violation of their constitutional rights.
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