After ZTE reversal, Democrats accuse Trump of jeopardizing national security

In negotiating terms, that means Trump is giving away the very leverage point that's putting the squeeze on China in exchange for exactly nothing, except putting US consumers and our country as a whole at risk. "That's an area where we will be exploring very, very promptly". "Obviously this is part of a very complex relationship between the United States and China that involves economic issues, national security issues and the like". This sometimes leads to glaring contradictions, like an announcement to end a suspension of economic sanctions on Iran on May 8th, while announcing five days later, with his comments on ZTE, that the US government would only enforce those sanctions selectively.

The nation's top counterintelligence official warned the Senate Intelligence panel Tuesday that Chinese telecom giant ZTE presents a major national security risk, starting with USA consumers.

Republican U.S. Senator Marco Rubio has opposed any softening on ZTE.

He echoed Commerce Secretary Wilbur Ross from a day earlier describing the ZTE matter as an "enforcement issue" that's separate from the wider conversation over trade.

ZTE's emergence on Trump's radar was no accident-it was part of a list of demands China made as Trump officials enter into a second round of bilateral trade talks with the Chinese government. "I hope this isn't the beginning of backing down to China", tweeted Sen.

"This president has taken China to task for its unfair trade practices", he said.

ZTE is a state-linked telecommunications company that sells its equipment to 140 countries.


"I've never seen a president step in and reverse an agency decision like this. I think this is all going to get resolved, I really believe, over time", Kudlow said at an event in Washington on Tuesday. Additionally, this action would result in a substantial "tax" burden on USA manufacturing operations that already face tariffs on steel and aluminum imports.

Huawei and ZTE products are being removed from the three store chains operated by the Defense Department at installations worldwide, Pentagon spokesperson Maj. According to IDC data, ZTE sources more than 40 percent of its components from the USA, creating a multibillion-dollar revenue stream for suppliers like Qualcomm and Intel. A number of retailers reported Tuesday that the U.S.is discussing lifting the ZTE penalties to keep away from agricultural sanctions China is making ready to impose on the U.S.

China objected to ZTE's punishment at trade talks in Beijing this month, and the American delegation agreed to report them to Trump.

In a statement on its website about the seven-year ban, ZTE said it was "unacceptable" that the USA government "insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts".

China was asked to foreswear its World Trade Organization rights to challenge USA trade protection, a request that commentators in China likened to the "unequal treaties" imposed on China by imperialist powers in the 19th century. "So they can't say they don't know what we're asking for", he said. "We are now in close communication over details of the implementation". "We are insane to allow them to operate in USA without tighter restrictions".

The foreign ministry said Vice Premier Liu He will visit the U.S. from Tuesday to Saturday for consultations with U.S. Treasury Secretary Steve Mnuchin.

Ross last month accused ZTE of misleading the department and warned, "This egregious behavior can not be ignored".


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