Negative on New Regulation Introduction
Huawei and Others Focus on 5G
State Department Tightens Regulations on Chinese State Media
[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Donald Trump suddenly expressed opposition to export restrictions on jet engines to China. Attention is focused on whether this signals that no additional trade restrictions against China will be pursued following the U.S.-China Phase One trade agreement.
On the 18th (local time), President Trump stated on Twitter, "I want China to buy our jet engines, which are the best in the world." He added, "I want to make it easy, not difficult, for them to do business with the U.S. Everyone in our administration has been instructed accordingly," expressing a negative stance toward new China-related regulations being discussed within the government.
President Trump also said, "I do not want to make it difficult for them to do business with us because that means orders will go elsewhere," and mentioned, "The U.S. is open for business."
This was a direct rebuttal by President Trump to recent U.S. media reports that the Trump administration was considering banning the export of aircraft engines produced by General Electric (GE) to China.
President Trump's remarks are interpreted as a barometer indicating the future direction of U.S. trade regulations against China. Although the U.S. continues to impose regulatory policies on Huawei, a leading Chinese 5G telecommunications equipment company, this may express a reluctance to expand restrictions into other areas.
Related meetings were also postponed. Initially, administration officials were scheduled to attend a meeting on the 28th to review the export of jet engines. This led to interpretations that President Trump's intentions were reflected. Consequently, U.S. technology regulations against China are expected to focus solely on 5G. Since Huawei, a Chinese technology company, is a key issue in the upcoming Phase Two U.S.-China trade negotiations, this signals an intention to block disputes in other sectors.
U.S. media reacted to President Trump's remarks as unusual. The Wall Street Journal (WSJ) introduced the U.S. business community's response that President Trump sent a message opposing new regulations on China. The New York Times (NYT) evaluated that President Trump's remarks showed a surprising reversal from the U.S. government's previous stance aimed at protecting U.S. technology and intellectual property (IP) to curb China's rise in technological leadership.
On the same day, the U.S. State Department designated five Chinese state-run media outlets, including Xinhua News Agency, as foreign missions required to disclose asset acquisitions, hiring, and firing information. A State Department official explained, "This is based on the judgment that Chinese President Xi Jinping is strengthening media control." This is an official criticism that the regulated media outlets operate according to the preferences of the top leader.
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