Stock markets drop after Trump signals dissatisfaction with China negotiations

Angelo Anderson
May 23, 2018

"This was not a quid pro quo or anything else", he added.

The Commerce Department blacklisted ZTE, the second-largest manufacturer of cellphones in China, from doing business with the US because the firm failed to comply with a settlement reached after it violated sanctions against North Korea and Iran.

The U.S. ban on ZTE for breaching terms of a settlement over sanction-breaking sales to Iran and North Korea has become entwined in the trade dispute between the U.S. and China.

US President Donald Trump has said he may lift a crippling export ban on Chinese technology firm ZTE and levy a $1.3bn fine instead.

"Sadly #China is out-negotiating the administration & winning the trade talks right now". But by allowing ZTE to return to business as usual, the USA is putting the trade war with China on hold.

He also said that he could "envision" a deal where ZTE got a fined as much as $1.3 billion, had to replace its board of directors and agree to purchase most components from American firms.

"I'm not saying that's the reporters' fault, I'm saying I'm not talking about the trade deal".

"And in that communique, you can see where we're going next".

Lawmakers were incensed by Mr Trump's offer last week to rescue the company and Chinese jobs, which came via Twitter in the midst of the trade talks with Beijing.


The joint statement has only alluded to what many believe is the real problem: The American belief that China is using state-owned companies to promote the forced transfer of technology and cyber espionage to undermine the U.S. technological lead. "So I'm looking at it", he said.

As the reported terms of the Trump administration's truce with China show, however, Mr. Trump to date seems to have spent American leverage on a predictably futile effort to achieve large short-term reductions in the $375 billion annual USA merchandise trade deficit with China. "I don't like to talk about deals until they're done", Trump said.

The source argued that Mnuchin was "freelancing" with his comments on Sunday and said Mnuchin was in danger of becoming "Rex Tillerson 2.0", referring to the former secretary of state whom the President rebuked for getting ahead of his positions.

"It gives the appearance that the Chinese are doing what they've always done to us: put in significant delay tactics", DiMicco, who now serves on an advisory committee for the the U.S. Trade Representative, said in a phone interview. Trump backtracked earlier this month and signaled he was open to lifting the sanctions, to the chagrin of lawmakers on both sides of the aisle. The Pentagon has already banned ZTE products from being sold on American military bases.

Amanda DeBusk, a former Commerce Department official who chairs the global trade practice at the law firm Dechert, said it's not unusual for governments to use sanctions against foreign companies as leverage in trade negotiations. The measure, introduced by Sen.

His willingness to strike a deal has stirred controversy in the USA, where the company has raised alarms related to national security.

While the administration assured that any revised penalty would remain harsh, some politicians said they were considering congressional action to block a reversal. John Cornyn, R-Texas., that would do just that. Within the administration, divisions are raw between free-trade supporters such as Mnuchin and White House economic adviser Larry Kudlow and China hawks led by White House trade adviser Peter Navarro.

The paper cited unidentified people who knew of the deal in reporting that the outline would include a seven-year prohibition on ZTE purchasing American technology and call for major management changes.

When Cornyn, the sponsor of a bill to strengthen foreign transactions oversight, was asked about other legislative solutions, he responded, "I'm sure we'll be having that conversation quite publicly and it will manifest itself in a number of ways".

Other reports by Iphone Fresh

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