ZTE Ceases Operations Due To US Ban, Despite Trump Pledge

  • ZTE Ceases Operations Due To US Ban, Despite Trump Pledge

ZTE Ceases Operations Due To US Ban, Despite Trump Pledge

The United States gets one shot to show China that we are serious about forcing it to change its behavior - and, if it won't, that we are serious about defending ourselves.

White House economic adviser Larry Kudlow said on Tuesday it was far from certain what steps the US government would take on China's ZTE Corp, which he said was more an enforcement issue than a trade issue.

"Unilateral tariffs will address none of these issues, however, and will inflict real economic harm on USA businesses and consumers", the USCBC said, suggesting a comprehensive and strategic approach that sets short, medium, and long-term negotiating objectives to address industry concerns.

The move is a sharp reversal from just two weeks ago, when the views of advisers supporting punitive measures appeared ascendant.

The Commerce Department in April found ZTE had violated a 2017 settlement created after the company violated sanctions on Iran and North Korea, and banned US companies from providing exports to ZTE for seven years.

The Chinese firm has been flagged for violations that include selling sensitive USA technologies to Iran and North Korea in violation of US sanctions laws.

It also sends the message that the United States doesn't have the stomach for the larger economic battles with China to come.

The final terms may still change, as a team led by China's top economic envoy Liu He has just arrived in Washington today for a multi-day trade negotiation with his US counterparts. The department said ZTE had misled regulators: Instead of disciplining all employees involved in the sanctions violations, Commerce said, ZTE paid some of them full bonuses and then lied about it.

"We think highly of the USA statement regarding ZTE's case".

"Problem with ZTE isn't jobs & trade, it's national security & espionage", Florida senator Marco Rubio tweeted.

U.S. President Donald Trump has directed the Commerce Department to revisit penalties for telecom equipment maker ZTE for flouting U.S. sanctions on trade with Iran, saying it is a big customer of U.S. suppliers.

"If this is a security threat, it is a security threat and needs to be dealt with as such, not as a bargaining chip in terms of greater trade negotiations", he said. There, they heard an outcry about US regulators putting ZTE out of business. -China trade disputes, as well as how the two countries look at the role of government in the economy.

Trade talks were due to resume in Washington on Tuesday.

The move was announced in a tweet by Trump on Sunday and comes amid pressure from China's government to back off the sanctions on ZTE, a major Chinese government-linked telecommunications giant.

Sen. Marco Rubio, R-Fla., tweeted Monday that the USA would be "crazy" to allow ZTE to operate in the U.S. Any telecomm firm in #China can be forced to act as tool of Chinese espionage without any court order or any other review process.

Those concerns were echoed by Senate Minority Leader Chuck Schumer, D-N.Y., who said in a statement Monday that the plan was "a bad deal if there ever was one".

"I don't expect all core differences in the US-China trade relationship to be resolved", said UBS chief China economist Wang Tao.

But once you understand that Trump is primarily guided by the twin goals of affirming himself and dominating others, it becomes fairly easy to see what he'll do next. "The Pentagon even stopped selling its phones in its bases". Even Lil' Marco Rubio chose to speak in Trump's native tongue, Twitter, to warn, "Problem with ZTE isn't jobs & trade, it's national security & espionage".