According to Reuters, the lack of clarity on what US firms can supply to the world’s top producer of telecommunications equipment, Huawei technologies, as long as it’s on a so-called “entity list” is likely to cast a shadow over this week’s US-China trade negotiations in Shanghai.
William Reinsch, a former Commerce official said: “At this stage, there is mass confusion,” adding that the plan for case-by-case decisions “maximises the uncertainty.”
“By making the meeting public, the U.S. was trying to send a signal, ‘we’re moving on Huawei, we need you to move on agriculture’,” said Wendy Cutler, a former U.S. trade negotiator and Vice President of the Asia Society Policy Institute.
Despite looming uncertainty over the US-China trade talks, the risk sentiment remains upbeat, with the Asian equities and US equity futures trending higher alongside the Treasury yields.
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