As US-China Trade Talks Begin, ZTE Is In The Spotlight

Posted May 16, 2018

Branstad, who was present at the meeting, said the Chinese appeared to be "taken back" by the significance of the list.

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 USA companies from providing exports to ZTE for seven years.

In 2012, ZTE was caught illegally shipping hardware and software from the USA to Iran and North Korea - a violation of sanctions and an offence that was settled a year ago. 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.

ZTE last week announced that it will cease all operations as a result of the Trump's administration's April 15th export ban against the Chinese smartphone maker. Trump's probably in a big hurry to get all that sorted before he sits down with North Korea's Kim Jung-Un before everyone figures out the real reason that Kim's coming to the bargaining table.

Shortly thereafter, the Chinese government reportedly restarted its review of the application of Qualcomm-a US telecom company-to acquire the Chinese company NXP. "The gap is wide", he said during a speech at the National Press Club.

Today begins three days of trade hearings in which United States corporations will make their case against President Trump's proposed $50 billion in tariffs on Chinese imports. US shares were set to drift slightly lower, with Dow futures down 0.4 percent and S&P 500 futures 0.3 percent lower.

"China is poised to announce more market opening measures, following moves in the finance and automobile sectors", Gary Liu Shengjun, the head of the China Financial Reform Institute in Shanghai said.

Kevin Brady, the Republican chairman of the House Ways and Means Committee that has oversight over trade issues, told reporters in Washington on Tuesday that he can't predict if a Nafta agreement will come together in the next few days.

ZTE should not be operating in the United States and should not have easy access to American technology, Rubio said. Any telecomm firm in #China can be forced to act as tool of Chinese espionage without any court order or any other review process.

Senate Minority Leader Chuck Schumer, D-N.Y., and other leading Democrats sent a letter Tuesday to the administration saying Trump's action casts "grave doubt" on his campaign promise to put America first.

"The imposition of tariffs on these components will severely disrupt our supply chain and drive our costs up, which in turn will impede growth, raise prices to American consumers, and make us less competitive globally in comparison with our competitors, and particularly those competitors in low-priced markets", the company said.

Wilbur Ross has known Donald Trump long enough not to expect loyalty from the president, but even Ross must have be surprised by the speed and enthusiasm with which number 45 threw him under the bus after his inauguration. "This leads to the greatest worry, which is that the president will back off on what China fears most - a crackdown on intellectual property theft - in exchange for buying some goods in the short run".

"Too many jobs in China lost", Trump wrote.