Huawei and other Chinese technology companies will be severely restricted in the US, despite a future trade agreement, an economist told CNBC on Tuesday.
The two largest economies in the world disagreed about their trade relations for about 18 months. Their wage dispute escalated in May as the US took steps to ban Huawei from selling its technology to the US market.
"Even with a first phase trade deal or even a full trade deal, we are convinced" Tao Wang, chief economist for China at UBS, told CNBC Joumanna Bercetche that stricter US technology restraints will persist "show that the trade-front dispute has indeed spread to other areas such as technology."
In May, President Donald Trump signed an executive order stating that the US telecommunications sector is experiencing a "national emergency" , "Foreign opponents are increasingly creating and exploiting vulnerabilities in information and communications technology and services," Trump said in the ruling.
According to Wang, the national security argument makes it difficult for the US to change its position on Chinese technology.
"Once you mention that, I think it's very difficult for any politician to say that I do not care about national security." It's going to be difficult to actually reverse, "she said.
Last month, Trump said that the US and China have completed a" very substantial Phase 1
China could Grow by 5.7% in 2020.
China's 2020 growth is projected to grow at 5.7%, according to UBS, after the US government decided in October not to impose further tariff increases on Chinese goods. that the trade tensions between Beijing and Washington will not worsen.
At the same time, UBS has noted that the various tariff increases over the course of 2019 will increase investment in China Chinese business and manufacturing sectors. Property launches and investment are also expected to weaken slightly in 2020 due to trade uncertainty.
Wang told CNBC that the Chinese growth rate in 2020 will be entirely dependent on the trade war. She said if the final round of potential tariffs were removed, China would have a pretty good chance of achieving 6% (GDP 2020) in addition to September tariffs.
LIANYUNGANG, CHINA – NOVEMBER 9: Cars are parked prior to shipment in a harbor on November 9, 2019 in Lianyungang, Jiangsu Province, China.
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