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U.S. Firms Like China - Intel Lobbying, Wall Street Sending Cash

A person holds a Huawei mobile phone in front of the logo of Intel in Izmir, Turkey on May 28. Photo: VCG

U.S. does not want U.S. tech firms to send components to Huawei. But many including Google and Intel are lobbying to be exempted. Google wants Android off the discussion; Intel wants to continue sending those processors. Tough calls coming.

Intel is pushing the U.S. government to allow it to continue supplying components to Huawei Technologies Co. Ltd., a senior executive from the American chipmaker told Caixin at a forum in Washington.

Peter Cleveland, a vice president of Intel Corp., argued in favor of discussion over regulation in dealing with the embattled Chinese telecommunications-equipment maker, which has been blacklisted by the U.S. government on national security concerns.

“It's better to try to reach mutually agreed solutions to improve cyber hygiene versus taking regulatory steps that are so dramatic and impact the American company as well as the Chinese company,” Cleveland said on the sidelines of a Chinese investment forum on Monday. Cleveland is a vice president in Intel’s legal department and also the company’s deputy general counsel for government, markets and trade.

Besides the components, Wall Street is still sending money to Chinese tech firms. Cash has not been banned yet!

After arranging billions of dollars in loans for highly valued -- and money-losing -- U.S. startups like Uber Technologies Inc., banks including Morgan Stanley and Goldman Sachs Group Inc. are angling to do the same for some of China’s biggest unicorns. They helped Bytedance Ltd., owner of the wildly popular TikTok video app, borrow $1.3 billion in April and are said to be raising as much as $1.4 billion for two other Chinese tech startups -- borrowers that until recently had rarely tapped the syndicated loan market.

Banks are betting the loans will lead to more lucrative mandates like initial public offerings, just as they did in the U.S. with mega-listings by Uber and several of its peers. But that’s no guarantee as China’s trade war with America spreads to the technology industry, heightening investor concerns over frothy valuations.

And 600 companies want the trade war to end. From Fortune newsletter, 'U.S. companies are getting fed up with the trade war. Over 600 firms, including Walmart and Target, signed a letter urging President Trump to resolve the dispute, which they claim is hurting business in the U.S. "Broadly applied tariffs are not an effective tool to change China's unfair trade practices," the letter says'.