Posted on 05/14/2018 10:23:11 AM PDT by Zhang Fei
WASHINGTON (Reuters) - President Donald Trumps pledge to help a Chinese telecommunication company that broke U.S. sanctions law sparked a backlash from lawmakers who said the move could weaken the U.S. hand in upcoming trade talks with Beijing.
The Commerce Department last month banned U.S. companies from selling to ZTE Corp for seven years after it illegally shipped goods made with U.S. parts to Iran and North Korea, prompting the company to shut its main business operations last week.
Trump said on Sunday that he was working with Chinese President Xi Jinping to help ZTE revive jobs.
In exchange for easing that ban, Beijing would back away from threats to slap tariffs on U.S. farm goods, the Wall Street Journal reported on Monday, citing people in both countries briefed on the emerging deal.
Too many jobs in China lost. Commerce Department has been instructed to get it done! Trump wrote on Twitter. The White House said later that Trump expected Commerce Secretary Wilbur Ross to make an independent decision.
Ross is slated to make public remarks on Monday at an event with journalists at 1 p.m. ET (1700 GMT).
Trumps olive branch angered lawmakers from both parties, who said it looked like he was backing down ahead of high-stakes trade talks this week in Washington between the United States and China.
Shocked. I think it shocked a lot of people in the presidents own cabinet, said Senate Democratic Leader Chuck Schumer, speaking to reporters.
Maybe hell back off - lets hope. Hes done that before too, said Schumer, who said getting tough on China was one of the few areas where he agrees with Trump.
Republican Senator Marco Rubio cited concerns about Beijing using telecom companies like ZTE (000063.SZ) (0763.HK), Chinas second-largest maker of telecommunications equipment, for espionage.
(Excerpt) Read more at reuters.com ...
Lots of moving parts. China has a big role to play in dealing with North Korea.
People are watching Trump make deals, and people are saying, “I don’t get it.”
But Trump gets it. That’s why he’s a billionaire, and that’s why he is a great president.
As long as we get something back for it I don’t care. There are going to be deals where China has to be ameliorated in some way for helping in its sphere of influence.
Showing Xi that Trump has the power to give and take away, so Xi will start dealing for the big chips.
If Schumer and Rube are “concerned” it must a good thing.
Yep, top secret negotiations at the highest levels, we aren't privy to these talks and likely never will be, which is why we have a representative government, Trump negotiates on our behalf.
Showing Xi that Trump has the power to give and take away, so Xi will start dealing for the big chips.
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Bull crap! Xi got this by BLACKMAILING TRUMP by threat to do tariffs on American farm products. Trump should NEVER GIVE IN TO SUCH BLACKMAILING. America has all the power here and should not give that power away.
TRUMP BLINKED! Please dont blink again Trump!
Fair Trade...Looks like China won’t put tariffs on farm goods after all.
“Lots of moving parts. China has a big role to play in dealing with North Korea.”
Exactly. I will sit back and see how this all works out.
Indeed.
So what? How do you place sanctions on European countries for trading with Iran, which the provisions of Trump's withdrawal from the Iran nuclear deal might mandate, and at the same time promise to help a Chinese company guilty of the same infraction?
If Reuters hates the idea then it’s probably a good idea.
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If Chuck U Schumer is ‘shocked’ we win by default.
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Stop posting leftist talking points, we know which side you’re on.
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Is there anything that President Trump does that does not cause a Washington backlash? For a town that, in recent history, does NOTHING except screw things up, they sure get excited when ANYTHING happens.
“Bull crap! Xi got this by BLACKMAILING TRUMP by threat to do tariffs on American farm products.”
The big deals are still in the works - North Korea, Iran, the total US/Chinese trade structure. ZTE is just one chip.
The bottom line with tariffs, is that China has much more to lose. It is one of the most favorable existing fields for the USA to fight China - we have a huge advantage.
We export about $150 billion a year to them, they export about $500 billion to us. They are still a relatively small part of our economy. China runs a net trade deficit with the rest of the world combined, excluding their surplus with the USA. (dependent on energy and raw materials imports)
China threatened to respond to Trump’s first $50 billion in tariffs (already imposed), with $50 billion against the US, including lots of farm products (which was not actually imposed).
It was discussed that the USA would respond to $50 billion in tariffs from China, with $100 billion more against China. At that point, China would have to put tariffs on all remaining US products to keep up - leaving them no further bullets to fight with in a trade war. The USA could then justify retaliating with full tariffs against China - breaking them.
Point made. China has in fact reduced tariffs on American vehicles. China blinked in the tariff contest (effectively surrendering in the trade war) - we have moved on to other chips in the game. Note that ZTE was put in danger of total bankruptcy not by American tariffs, but by penalties the USA placed on ZTE for cheating on Iranian sanctions.
Trump has the tools, and holds the Trump cards. China needs to deal, if America is now willing to use the advantages that it has.
Hi.
“Gotta wonder what the backstory is on this reversal. “
The meeting between President Trump and Kim?
5.56mm
...China has in fact reduced tariffs on American vehicles. China blinked in the tariff contest (effectively surrendering in the trade war) - we have moved on to other chips in the game. Note that ZTE was put in danger of total bankruptcy not by American tariffs, but by penalties the USA placed on ZTE for cheating on Iranian sanctions.
Trump has the tools, and holds the Trump cards. China needs to deal, if America is now willing to use the advantages that it has.
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LOL China has ...blinked...effectively surrendering in the trade war...?
It does us no good to close our eyes to the truth and set up some kind of mythology about Chinese/American trade and ongoing theft of intellectual property. The fact is that the Chinese have discovered Trumps weak spot and that is trade in American agricultural products. Its clear to me that the Chinese now know that they merely have to make threats in those areas and America promptly is EMASCULATED in trade talks. You may not want to believe this but keep an eye on CONTINUED CHINESE MASSIVE TRADE SURPLUSES WITH THE UNITED STATES AND CONTINUED INTELLECTUAL PROPERTY THEFT & EXTORTION.
screw this. I trust Trump. period.
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