U.S., China try to move forward with trade talks amid Huawei blacklisting

President Trump said Wednesday he doesn’t want to discuss the U.S. blacklisting of Huawei with China, citing national security concerns as the two sides try to move forward with trade talks.

“Huawei is a big concern of our military, of our intelligence agencies, and we are not doing business with Huawei,” the president told reporters at the White House. “Huawei has been not a player that we want to discuss, [that] we want to talk about right now.”

It’s not clear when another round of trade talks might begin, after both sides announced new and higher tariffs two weeks ago. Mr. Trump has said previously he’d consider including Huawei in negotiations for a trade deal with China.

The Trump administration blacklisted Huawei based on fears that it is too cozy with the communist Beijing government and could use its 5G equipment for surveillance or to disrupt networks — charges the company denies.

Mr. Trump says foreign partners should use other companies in their lightning-fast cellular networks.

Traveling in Iceland, Vice President Mike Pence said he encouraged his hosts to “recognize the profound issues that arise from any free nation embracing the technology and equipment of Huawei.”

“Huawei is essentially a Chinese company that under Chinese law is required to turn over all the data that they collect to the Chinese government and the Communist party,” Mr. Pence said Wednesday. “We don’t think that’s consistent with the security of free nations. We don’t believe it’s consistent with the privacy of people that enjoy freedom in nations like the United States and Iceland.”

Last weekend, the U.S. and Poland signed a 5G-security agreement that calls on both nations to consider whether “a supplier is subject, without independent judicial review, to control by a foreign government.”

Mr. Trump said the Chinese economy is having is having “their worst year in over half a century.”

“I would think they want to solve a problem,” the president said.

The U.S. agricultural sector has been hit hard by the loss of the Chinese market. But two Republican lawmakers from major agricultural states, Sens. David Perdue of Georgia and Steve Daines of Montana, met with top Chinese officials in Beijing in recent days to convey that Congress supports Mr. Trump’s efforts.

“Senator Daines and I traveled to China with one goal: to help reinforce President Trump’s efforts to level the playing field with all of our trading partners,” Mr. Perdue said in a statement. “We were there to emphasize that the president and his negotiating team have strong support from Congress. The president deserves high marks for standing up for American workers, farmers, and manufacturers. China clearly sees that America is serious about achieving equal access.”

The president said he approved the lawmakers’ meeting with the Chinese officials.

“China asked for the meeting,” Mr. Trump said. “All they did is say that we really have bipartisan support, and the support is very serious, so we’re not playing games. They absolutely had my permission. They told me the attitude of China. Basically they told me China would like to do something — I know they’d like to do something.”

The Federal Reserve said Wednesday the U.S. economy is still growing steadily and most businesses are optimistic, even in the face of Mr. Trump’s trade wars.

In The Fed’s latest report on economic conditions nationwide, hiring increased modestly in most industries, though manufacturing employment declined in some areas. The survey covers mid-July to late-August.

The report, known as the beige book, consists of anecdotal accounts from business executives in the Fed’s 12 regional districts.

• This article is based in part on wire service reports.