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Why the US-China trade talks could hinge on ZTE

Why the US-China trade talks could hinge on ZTE

President Trump meets with Senate Majority Leader Mitch McConnell, center, and Senate Minority Leader Charles E. Schumer on December 7.

President Trump has directed the Commerce Department to look into easing USA economic sanctions against China's major telecommunication company linked to illicit trade with rogue states.

Schumer (D-N.Y.), along with Sens.

The Obama and Trump administrations had previously sought to punish ZTE, a huge company that makes phones and other products, for selling items to countries in violation of USA sanctions.

Derek Scissors, a resident scholar at the American Enterprise Institute, said Trump letting ZTE off the hook after the company violated the Iran sanctions sends the wrong message.

The sides are reportedly zeroing in on an agreement that would remove US sanctions on the Chinese telecommunications giant, which is at risk of shutting down after the Trump administration barred domestic components manufacturers from selling to the company because it violated sanctions on doing business with Iran and North Korea.

President Donald Trump suggested the U.S. would reverse sanctions against Chinese tech giant ZTE.

Within three days of the Chinese government agreeing to provide $500 million in loans to an Indonesian theme park that the Trump Organization has a deal to license President Donald Trump's name to, the president stunningly ordered sanctions be rescinded against a major Chinese telecom company.

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USA officials recently went to China to open trade talks about Beijing's unfair trade practices.

Trump said on Twitter that he is working with Chinese President Xi Jinping to help ZTE because many jobs in China are at stake.

"The report concluded that the risks associated with ZTE's provision of equipment to USA critical infrastructure could undermine American national security interests", Wyden said.

"Bargaining away law enforcement power over bad actors such as ZTE undermines the historically sharp distinction between sanctions and export control enforcement and routine trade decisions made by the US", they wrote. The Commerce Department claimed that despite ZTE's assurance that it halted business in Iran, the company continued operations there.

Ross indicated the Commerce Department will be reviewing previous action on ZTE in the near future. Instead of reprimanding ZTE staff and senior management, ZTE rewarded them.

"We'd like to see China being just as open as the United States", he said.

His comments come as U.S. President Donald Trump's top trade and economic officials prepare to meet with Chinese Vice Premier He Liu to discuss trade concerns ranging from intellectual property protections to farm goods to steel capacity. "There is clearly an appearance of a connection between Trump looking to release ZTE from USA imposed sanctions three days after the Chinese government and Chinese banks agreed to provide a total of $1 billion in loans to a resort licensing the Trump name from his company". "The question is if there are alternative remedies other than the one we've already put forward. Stay tuned!" Trump tweeted on Tuesday.

During the confirmation hearing, Senator Mark Warner, expressed concern over the security threat posed by Chinese telecom giant ZTE.