Trump defends decision to revisit action on Chinese company

Frederick Owens
May 16, 2018

Just this week new evidence emerged that Donald Trump has had more success getting Trump-branded properties into China than he has in Russian Federation. "He has my support", Kudlow said, adding that no agreement had been reached yet.

USA sanctions and export controls for national security matters are not supposed to be part of wider trade talks.

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. Mark Dubowitz, the chief executive for the Foundation for Defense of Democracies who advocated for continuing negotiations with Europe to strengthen the nuclear deal, told me Tuesday that Trump's approach was unusual, but could also produce effective compromise. On top of that, the US intelligence community for years has warned that ZTE products have "back doors" that allow Beijing to use their telecom equipment for espionage against end users like corporations and consumers. President Trump made a campaign promise to battle the U.S.'s trade imbalance with China and he has certainly been ratcheting up the pressure on America's biggest trading partner in recent months.

"The failure to reach any agreement with the U.S. delegation rang alarm bells for many Chinese officials who used to be blindly optimistic", a source said.

"President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast", Trump said.

When Donald Trump announced on Sunday night that he was riding to the rescue of Chinese electronics maker ZTE, more than a few people, including those who work for him, were shocked.

The pre-installed software was discovered on Android phones and was produced by Shanghai Adups Technology Co. and deployed on more than 700 million phones, cars, and other smart devices. French foreign minister Bruno Le Maire last week said European states would begin to take steps to defend their "economic sovereignty".

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Against the backdrop of a stand-off between the two countries on the ZTE embargo issue, the President's changed stance on Sunday has caught all economic advisors in the U.S. administration by unaware. If ZTE is a U.S. company, Trump would be in big trouble and face a lot of legal issues about a USA president talking about a United States company that has been charged with similar violations. "I think if we can get a deal on renewing Nafta and changing Nafta to our liking, that really would be a very good kind of foundation to move on".

The company shut down operations after being hit by a $1.2 billion fine and pleading guilty to knowingly violating US sanctions laws.

Cargill's comments come as the US Ambassador to China, Terry Branstad, said the US and China are still "very far apart" on resolving trade frictions.

The expert noted that Trump is facing a lot of criticism from both the left and the right for his tweet about ZTE, making it hard for a deal to be struck between the two nations on the fate of the Chinese telecom company. They include the National Association of Manufacturers, Farmers for Free Trade to the U.S. Fashion Industry Association and ITI, which represents the technology industry.

"Lingering trade tension and uncertainty will likely negatively affect China's export orders and related business investment".

Suggestion from source close to TRUMP and MANAFORT that Republican campaign team happy to have Russian Federation as media bogeyman to mask more extensive corrupt business ties to China and other emerging countries.

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