UPDATED: Trump pledges to help Chinese phonemaker ZTE 'get back into business' [View all]

[DonViejo]

Last edited Sun May 13, 2018, 05:37 PM - Edit history (1)

Source: The Washington Post



By Tony Romm and Damian Paletta May 13 at 12:25 PM

President Trump pledged on Sunday to help Chinese telecom giant ZTE return to business, days after the company said it would cease “major operating activities” because of the U.S. government’s recent trade restrictions, a stunning shift in tone for a president who has long accused China of stealing U.S. jobs.

“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 tweeted. “Too many jobs in China lost. Commerce Department has been instructed to get it done!”

The comment could presage a reversal of one of the Trump administration’s toughest actions to date against a Chinese company. In April, the Commerce Department penalized ZTE for violating a settlement with the U.S. government over illegal shipments to Iran and North Korea. As a result, the Trump administration barred U.S. firms for seven years from exporting critical microchips and other parts to ZTE, the world's fourth-largest smartphone manufacturer.

Lacking those components, ZTE halted operations, stressing in a statement Wednesday that it is “actively communicating with the relevant U.S. government departments in order to facilitate the modification or reversal” of the Commerce Department’s order.

Read more: https://www.washingtonpost.com/news/the-switch/wp/2018/05/13/trump-pledges-to-help-chinese-phone-maker-zte-get-back-into-business

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UPDATE:

Promising Chinese Jobs, Trump Commits To Backing Off Iran Sanctions Violator ZTE

By Matt Shuham | May 13, 2018 1:20 pm

After the Commerce Department last month ordered American companies to stop selling products to the Chinese telecom giant ZTE, President Donald Trump on Sunday appeared to commit to reversing that ban.

Link to tweet

In a 2017 settlement, ZTE pleaded guilty to evading U.S. sanctions against Iran and North Korea and agreed to pay a $1.2 billion combined penalty, breaking the record for such sanction penalties.

Then, last month, the Commerce Department issued a denial order against the company, asserting that it had not properly held relevant employees accountable for the sanctions violations and that it had misled U.S. officials, therefore violating the settlement terms. As a result, American manufacturers of crucial components like microchips were barred from selling to ZTE.

“The provision of false statements to the U.S. Government, despite repeated protestations from the company that it has engaged in a sustained effort to turn the page on past misdeeds, is indicative of a company incapable of being, or unwilling to be, a reliable and trustworthy recipient of U.S.-origin goods, software, and technology,” the Commerce Department’s seven-year denial order read in part.

more
https://talkingpointsmemo.com/livewire/promising-chinese-jobs-trump-commits-to-backing-off-iran-sanctions-violator-zte