Beijing - The United States and China had a heated exchange on Thursday, with U.S. Secretary of State Mike Pompeo accusing Chinese telecom giant Huawei Technologies of lying about its ties to the government and Beijing saying Washington must end its “wrong actions” if it wanted trade talks to continue.
U.S. tech stocks were the hardest hit in an overall sharp global market drop on Thursday in signs the conflict between the world’s two biggest economies was being seen as a battle not just over trade but also about who controls global technology.
Citing national security concerns, Washington last week effectively banned U.S. firms from doing business with Huawei, the world’s largest telecoms network gear maker, taking the stakes to a different level days after negotiators appeared to be making headway on trade. Tech companies around the world fell in line.
Japanese conglomerate Panasonic Corp said it had stopped shipments of some Huawei components, a day after British chip designer ARM did the same, potentially crippling the Chinese company’s ability to make new chips for smartphones. Asked if he believed more firms would stop working with Huawei, Pompeo told CNBC in an interview on Thursday: “We do. We’ve been working at the State Department to make sure that everyone understands the risks.”