US secretary of state, Mike Pompeo, speaks to CNBC
- Says that he believes US companies will cut ties with Huawei
- Says Huawei is deeply tied to China and its Communist Party
- Says that Huawei is making false statements
- Believes that China is using high-tech surveillance to subdue minorities
Pompeo is saying that Huawei had “an enormous national security component to it”, adding that its connection with the Chinese government “puts American information at risk”. While I don’t doubt that, I reckon the whole situation could’ve been handled in a more cordial fashion had it not been for the trade dispute that has been going on.
Nonetheless, the fact that the US is defending their actions and China is drawing a hard line on their own stance means that the dispute here isn’t going to settle down any time soon. And that isn’t going to help the nervousness in markets today.