Trump gets push back on talk of helping China's ZTE

Trump gets push back on talk of helping China's ZTE

Sanden International (USA) of Wylie, Texas, warns it will have to lay off 39 of its 431 workers if 25 percent tariffs take effect on the components it uses to make auto air-conditioning compressors. "Free and open trade, I think that's the solution".

China welcomes this latest decision ahead of high-level trade talks aimed to de-escalate the trade standoff between the two countries this week in Washington. "What about the millions of jobs that are lost because of what China has done?" he asked, adding: "Why on earth would President Trump promise to help a Chinese telecom company that has flouted US sanctions and whose practices are a risk to our national security?"

Trump had campaigned for the presidency on a vow to strike a much tougher trade stance than his recent predecessors, who, he argued, had agreed to deals that gave an unfair advantage to America's competitors.

"Trade negotiations are continuing with China".

He has proposed tariffs on $50 billion in Chinese imports to punish Beijing for forcing American companies to hand over technology in exchange for access to China's vast market. Trump then ordered the USA trade representative to look for an additional $100 billion in Chinese goods to tax.

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A bunch of 32 Senate Democrats urged Trump Tuesday to take care of a seven-year ban on ZTE's buy of American-made elements important to the corporate's manufacturing - a penalty put in place after the corporate bought merchandise to Iran and North Korea after which did not penalize officers because it had informed the will.

The U.S. imposed the penalty on Shenzhen-based ZTE after finding that the company, which had already paid a $1.2 billion fine, not only failed to discipline employees that were involved, but paid them bonuses. By cutting off access to USA suppliers of essential components such as microchips, the ban threatens ZTE's existence, the company has said.

The Trump administration is considering an arrangement under which the ban on ZTE would be eased in exchange for elimination of new Chinese tariffs on certain US farm products, including pork, fruits, nuts and ginseng, two people familiar with the proposal told Reuters. "He and his team are working very hard to make a deal". Marco Rubio, R-Fla., tweeted Sunday that it would be "crazy" to allow ZTE to operate in the USA without tighter restrictions. "He has my support", Kudlow said, adding that no agreement had been reached yet. It might also hurt his Republican Party in the November congressional elections.

"A reversal of the ZTE decision could temporarily tamp down trade tensions by allowing the Chinese to make concessions to the US without losing face", said Eswar Prasad, a professor of trade policy at Cornell University.

President Trump's plan to ease restrictions on China's ZTE Corp is running into opposition on Capitol Hill.

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"It's the wrong time to cut a deal, and this would be a bad deal", said Republican Sen.

Rubio said China won't play by the rules.

Two days in the past Trump raised alarms by saying he was explicitly attempting to assist ZTE get again into enterprise with the U.S.

"We're still very far apart", he said. "So they can't say they don't know what we're asking for", he said.

Senate Minority Leader Chuck Schumer of NY lambasted Trump for going easy on a company that violated USA sanctions.

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