SCMP report

SCMP report

There are some fresh jitters about US-China trade and a warning that the truce could 'fail immediately' if the technology blockade on Huawei isn't lifted, according to a new report in the South China Morning Post.

As part of the deal to restart talks, the US agreed to lift restrictions blocking US firms selling technology to Huawei in exchange for purchases of soybeans.

A source in the report says there is confusion about what was agreed and now Beijing wants "first to see how - and if - the Trump administration would ease the supply ban on Huawei, as promised by Trump."

They're expecting an announcement "in the next couple days" on the conditions about selling tech to Huawei. If so, China will commit to buying the agricultural goods. However if there is a hiccup, talks could break down immediately.

Overall, this is a poor start to what the US hoped would be a breakthrough. It doesn't bode well

On the flipside, the reports says this:

Despite the difficulties, China remained cautiously optimistic that a deal would be reached, a source close to the Chinese government said.

"There will be a deal at a time before Trump's presidential election run, though the talks process will be painful," the Chinese source said.