Trump's China stand threatens truce

Harvard saga, student visa cancellations imperil US' 'total reset' with Beijing. By Bloomberg

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Just weeks after US President Donald Trump declared a “total reset” with China following a trade truce in Geneva, tensions are rising again between the world’s biggest economies.

Mr Trump's administration on Wednesday announced it would start revoking Chinese student visas, while also introducing new restrictions on the sales of chip design software and reportedly some jet engine parts to China.

That came shortly after it sought to block Huawei Technologies Co from selling advanced AI chips anywhere in the world, prompting an angry rebuke from Beijing.

“Geneva was positive because both sides are officially talking to each other,” said Alfredo Montufar-Helu, senior adviser to the China Center at the Conference Board.

“But the negotiations didn’t really deal with the core issues that are driving competition between the two sides. Chief of them all — technological dominance.”

While US and Chinese negotiators brought down tariffs from eye-watering levels for 90 days, they still need to hammer out a deal to rebalance trade — that took years in Mr Trump's first term.

Both sides are also in disagreement over Beijing’s role in the illegal fentanyl trade, as well as rare earths and chip controls.

In a sign any larger deal is a way off, Mr Trump has yet to speak to his Chinese counterpart since returning to office, despite suggesting several times such a call was imminent.