Trump to Ease Sanctions on Chinese Telecom

Trump to Ease Sanctions on Chinese Telecom

During his confirmation hearing on Tuesday, Bill Evanina - President Trump's nominee to head the newly created National Counterintelligence and Security Center - acknowledged that the Chinese telecom company Trump tweeted on behalf of on Sunday, ZTE, represents a national security threat.

"American workers and companies confront rampant theft of US intellectual property, agricultural policies that disadvantage American farmers, restrictions on market access for USA service providers and manufacturers, and mercantilist industrial policies that have cost USA workers their jobs", they wrote. Trump now says he and Chinese President Xi Jinping are "working together" to get ZTE "back into business, fast".

"Too many jobs in China lost", Trump wrote. "Commerce Department has been instructed to get it done!"

The senators in their letter claimed that the direction to the Department of Commerce to look into easing penalties imposed on ZTE for violations that include selling sensitive U.S. technologies to Iran and North Korea was in violation of U.S. sanctions laws. Last year, the company, which is 33% owned by the Chinese government, was fined $1.2 billion for violating USA sanctions against North Korea and Iran.

Mr Ross told journalists on Monday at the National Press Club in Washington: "Our position is (the ZTE case) is an enforcement action, separate from trade". "The question is if there are alternative remedies other than the one we've already put forward".

"We're still very far apart", Branstad said, saying that China has not met pledges to open up its insurance and financial services area, as well as reduce auto tariffs.

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In February, six intelligence chiefs advised US consumers against buying smart phones produced by Chinese companies, including ZTE specifically, and in April, the Pentagon pulled the phones from the shelves at USA military bases. "This is also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi". Credit: Chip Somodevilla/Getty Last week the Chinese company said it had ceased "major operating activities" following a us ban on exports to the company in April. But over in the legislative branch, Reuters reports that the reaction has been strongly negative.

A regulatory issue has, thus, become bound up with trade. The company's phones were described as a security risk by the Pentagon and U.S. intelligence agencies.

"ZTE did do some inappropriate things, and they've admitted to that", Ross said. In return, China removes tariffs on USA farmers who did no wrong.

ZTE should not be operating in the United States and should not have easy access to American technology, Rubio said.

He said he was surprised to see that Trump's tweet a couple of days ago were followed by some articles possibly suggesting that the sanctions might be going away in exchange for a deal on agriculture.

The US$44 billion deal announced in October 2016 has reportedly received approval from nine global regulators, but not yet from China's Ministry of Commerce - which, according to reports, has now been asked to hasten its review.

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