A U.S.-China trade deal is highly unlikely and there is "no way" Huawei will be allowed to sell into the U.S. market, a Republican Senator told CNBC Tuesday.
Markets rallied Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on the imposition of any fresh tariffs on each other's products, following a meeting at the Group of Twenty (G-20) summit in Osaka over the weekend.
Trump also softened his stance on Chinese telecommunications giant Huawei, indicating that U.S. tech companies can go back to selling components and software to Huawei. Shares of chipmakers on both sides of the Atlantic rose sharply Monday morning on the news.
Trump then told reporters in the Oval Office on Monday that trade negotiations, which had stalled in May, have "already begun," but claimed any potential deal would need to be somewhat tilted in Washington's favour.
However Rick Scott, the Republican senator for Florida, told CNBC's "Squawk Box Europe" that he did not believe there would be a deal at the end of the drawn out trade war between the two nations, and reiterated the contention that Huawei represents a threat to U.S. national security, a claim the company has vehemently denied.
"Think about this - they're stealing technology, they negotiated a deal and then walked back - I mean how many times do you negotiate a deal, somebody walks back, and the deal ever closes?" Scott said.
"They're stealing technology, they won't open up their market, they're militarizing the South China Sea, they're involved in Venezuela where Maduro is killing his own citizens - he just killed a Navy captain - so I don't believe there will be a deal, but clearly there is no way we are going to allow Huawei to sell into the American market from a national security standpoint."
Scott added that that while it was "great that the president has a relationship" with President Xi, along with other traditional foes such as North Korean leader Kim Jong Un and Russian President Vladimir Putin, it was also important to "hold them accountable" and "stand up for American values."
Stocks across the globe soared on optimism surrounding a U.S.-China trade deal. The S&P 500 closed at record high levels on Monday while the Dow gained 117 points.