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Li Keqiang says decoupling from US ‘not realistic’, denies China would ask tech firms to spy

  • Premier refutes spying suggestion, saying it is ‘not how China behaves’ and that Beijing would never require Chinese companies to do so
  • He says ‘the whole world would like to see’ resolution to tariff war with mutually beneficial outcomes

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Premier Li Keqiang admitted relations between China and the US had seen some “twists and turns”, particularly over trade. Photo: Simon Song
Sarah Zhengin Beijing

Premier Li Keqiang on Friday said economic decoupling from the United States was “not realistic”, while refuting claims that Beijing would ever require Chinese tech companies to spy on foreign governments or individuals.

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During a news conference in Beijing at the end of the annual legislative meetings, Li admitted relations between China and the US had recently seen “twists and turns”, particularly over trade, but said he hoped ongoing negotiations to resolve the tariff war would deliver mutually beneficial outcomes.

“I believe that result is also what the whole world would like to see,” he said. “As two large economies, China and the US have become closely entwined through years of growing their relationship and years of cooperation. It is neither realistic nor possible to decouple the two economies.”

While the world’s two largest economies have held off on applying further tariffs this year, multiple rounds of discussion in Beijing and Washington have yet to yield a trade deal to resolve the dispute – one the US hopes will be address issues including its trade deficit with China, market access, industrial subsidies, intellectual property protection, forced technology transfers, and cybertheft. Chinese Vice-Premier Liu He spoke by phone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday and they made “concrete progress” towards a deal, according to state news agency Xinhua.

But as trade tensions have played out, Washington’s hawks have pushed for a “decoupling” between the two economies or at least a “partial decoupling” in the hi-tech sphere.

Li on Friday also rejected the claim that Beijing had or would mandate Chinese tech companies to assist in spying on foreign governments or individuals, a key concern for countries considering using hi-tech equipment from China in sensitive sectors.

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The premier initially sidestepped a question about Chinese technology spying, but later made a point to go back and “very explicitly respond” to it after taking a separate question about China’s economic reform.

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