FAST FIVE: China Prepares Retaliation To Huawei CFO Arrest
“The Huawei arrest gives China's leaders a huge gift,' said Barry Naughton, a professor at the University of California in San Diego who studies China.
In the worst case of a 25 percent duty on all Chinese goods, 2019 economic growth could slump about 1.5 percentage points to 5 percent, down from 6.6 forecast for this year, according to Bloomberg Economics.
Meng's arrest threatens to make China's leadership look powerless in securing the release of not only a citizen, but a senior executive and daughter of one of China's business icons,” said Michael Hirson, Asia director at Eurasia Group and a former US Treasury Department official.
“Nationalist sentiment will thus make it harder for Beijing to offer major concessions to Trump.” Publicly, at least, China is keeping the issues separate.
The upshot: If the US tries to use Whenzhou's arrest as leverage, they could wind up killing a promising deal.