Comments by the Chinese foreign ministry

The remark is in response to Pompeo's warning to European countries yesterday, as he cautions them against allowing Chinese companies to build 5G networks. Pompeo said that:

"With so much on the line, it's urgent that trustworthy companies build these 21st-century information arteries. Specifically, it's critical that European countries not give control of their critical infrastructure to Chinese tech giants like Huawei, or ZTE..

[Huawei] is implicated in espionage in the Czech Republic, Poland and the Netherlands, has allegedly stolen intellectual property from foreign competitors in Germany, Israel, the United Kingdom and the United States, and is accused of bribery and corrupt practices in countries like Algeria, Belgium and Sierra Leone."

Given how China has avoided trade in terms of retaliation against the HK bill, I reckon this here won't be a major impediment towards a "Phase One" deal (which in itself is somewhat meaningless in the first place). However, this does play into the bigger picture of the trade war that will last for many years to come between both countries.