Three huge stories this week show a continued pattern of theft and corporate crime that have fueled tensions between the U.S. and China.
Marriott data breach
The NY Times reports that hackers working for the Chinese Ministry of State Security broke into Marriott databases and stole personal information using techniques that Chinese hackers have used before.
Since 2014, Chinese hackers have been building a database of U.S. executives and government workers with security clearances.
They can use this information to track locations and activities, including contacts with Chinese citizens.
the arrest of Meng Wanzhou
Meng Wanzhou is a top executive of the Chinese technology company Huawei, and the daughter of its founder, who was recently arrested in Vancouver when she was switching planes. Huawei is the pride of China, and at the center of its run to dominate 5G technology.
Meng is charged with allegedly selling U.S. technology to Iran in violation of U.S. sanctions.
She’s now released on a bail of 10 million Canadian dollars. The U.S. is trying to extradite her for trial.
Geek out on China’s retaliation to Meng’s arrest, and the reason Huawei smartphones are banned on US military bases.
trade talks with China
President Trump and Chinese President Xi Jinping negotiated a 90-day trade truce despite tension over the Meng arrest.
The U.S. will continue with existing tariffs on $200 billion of Chinese goods at 10 percent, instead of raising the rate to 25% as President Trump had threatened.
In return, the U.S. wants a resolution to intellectual property theft and forced technology transfer by the end of the 90-day truce.
If there no progress is made, after 90 days, the U.S. will raise tariffs to 25 percent.
China also agreed to increase purchases of agricultural and industrial goods to reduce its trade imbalance with the U.S..
Will the trade war end? Or will these additional tensions derail efforts to resolve trade disputes? Let’s take a look.