• Howard Lutnick warns of significant economic and national security risks tied to China, calling for decisive U.S. action.
  • A 90-day extension of the U.S.-China tariff truce provides temporary relief but leaves long-term policy uncertainty for markets.
  • Scrutiny intensifies around Chinese technology, including AI models and telecom infrastructure, with bipartisan support for stricter controls.

Cantor Fitzgerald CEO Howard Lutnick has issued a stark warning to U.S. policymakers and business leaders, stating that the nation must urgently address the multifaceted threat posed by China. His comments come against a backdrop of heightened geopolitical tension and a last-minute decision to extend a critical tariff truce for another 90 days, a move that merely postpones a potential sharp increase in import duties.

“We must handle the Chinese risk,” Lutnick emphasized, highlighting concerns that span trade, technology, and national security. The extension of the tariff truce temporarily averts an immediate jump to rates as high as 145% on some Chinese goods, providing a brief window of stability for multinational corporations and supply chains. However, people familiar with ongoing negotiations describe the atmosphere as fraught, with little progress on the core structural issues that have plagued the relationship for years.

This persistent uncertainty is reflected in volatile capital markets, where firms like Cantor Fitzgerald, a major player in bond trading and investment banking, navigate shifting regulatory landscapes daily. The company’s recent financial performance is said to be in line with broader sector trends, which have been dampened by these ongoing tensions.

The debate extends far beyond tariffs. Lutnick’s concerns dovetail with a growing, bipartisan effort in Congress to scrutinize and often block Chinese technology. Lawmakers are currently pressing for detailed risk assessments from companies that import Chinese open-source AI models, such as those from DeepSeek, and telecommunications equipment from firms like Huawei, citing profound national security vulnerabilities.

This push for a harder line puts the U.S. at odds with some European allies, who have continued to engage with Chinese tech firms on certain digital infrastructure projects. U.S. security officials have privately expressed frustration with these partnerships, arguing they undermine Western economic and digital security. Attempts to reach Cantor Fitzgerald for further comment on Lutnick’s remarks were not immediately successful.

The 90-day reprieve offers businesses a sliver of predictability, but executives are largely treating it as a pause button rather than a resolution. Without a more durable framework for trade and technology exchange, markets remain highly susceptible to sudden policy shifts that can disrupt global supply chains and fuel inflation.