Trump Protects China's ZTE Prior to Trade Talks

By Faith Magbanua, May 15, 2018 23:05 PM

ZTE(Screenshot)

US President Donald Trump has vindicated his pledge to help China's ZTE "get back into business" after critics claimed he was "backing off".

He said the country is working on a "larger trade deal" and the Chinese tech firm buys many parts from the US.

Recently, the US had banned American companies from selling parts to ZTE, after it confessed to making illegal shipments to Iran and North Korea.

However, the franchise was welcomed in China and comes ahead of high-level trade talks this week in Washington aimed at addressing an escalating dispute between the world's two largest economies.

Reports coming from The Wall Street Journal citing sources said that the reprieve for ZTE was being negotiated as part of a possible deal in which China would lift tariffs on certain US agricultural products, such as ginseng, that went into effect in April.

On the other hand, President Trump has released a tweet last Monday reflecting his reaction towards the issue.

He tweeted: "ZTE, the large Chinese phone company, buys a big percentage of individual parts from U.S. companies. This is also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi".

Beijing has made several actions to resolve the situation of ZTE, which employs about 80,000 people, one of its demands for a broader trade agreement with the US.

"We greatly appreciate the positive position of the US on the ZTE issue and are in close communication with the US on the details of the issue," foreign ministry spokesman Lu Kang said.

ZTE halted its operations following last month's ban. The firm had spent more than $2.3bn on imports from about 200 US companies last year and relies on the parts for its equipment, which includes smart phones and telecommunications equipment.

On Monday, May 14, 2018 Commerce Secretary Wilbur Ross told reporters that the US would consider alternatives to a supplier ban.

"ZTE did do some inappropriate things ... the question is are there alternative remedies to the ones we had originally put forward and that's the area we will be exploring very, very promptly," Ross said at the National Press Club in Washington.

 

Related Article

Must Read

comments powered by Disqus

More from CCD

China Looks Forward to the New Malaysian Government

China expresses its opinion on the new Malaysian government.

US Summit with North Korea: Not Happening Anymore

US President Donald Trump cancels the scheduled summit with North Korea

Social Savvy Christian Nun Criticized Vatican on Social Media Instructions for Nuns

One nun who is well-known in social media is currently criticizing the new instructions nuns have to apply while using social media.

Traffic Collision in China Saves Kidnapped Woman

How did this rear-end accident saved a kidnapped woman in China?

Royalty Newlyweds Prince Harry and Meghan Markle Make First Appearance after Wedding

The royal honeymoon is postponed for the newlyweds Duke and Duchess of Sussex

Chinese Famous Online Celebrity Banned from Posting on Weibo Over 'Comfort Women' Comment

The issue of comfort women remains a serious issue in China and comments must not done lightly by its people.

China Launches First Private Rocket into Space

Space exploration for China is now growing with new groups also assisting in the effort.

'God Made You This Way': Pope Francis to a Gay Man

A gay man who spoke to Pope Francis shares what the Pope told him regarding his sexuality.

Heavy Rain Kills 7 People in NW China, Christians Join in Post-disaster Work

The local congregations voluntarily joined in the post-disaster work, like helping victims clean their farmlands.

President Xi Calls for the End of Irrational Consumption

New efforts are being done to boost environmental protection in China.