Published: Wed, May 16, 2018
Worldwide | By Isabel Fisher

China's ZTE cellphones a security risk to US?

China's ZTE cellphones a security risk to US?

The Chinese proposal is entitled, "Framework Arrangement on Promoting Balanced Development on Bilateral Trade", and I obtained an English version of the document, which is the Chinese government's negotiating position heading into the next round of talks.

In a stunning and horribly ill-advised move, Trump suddenly made a decision to help China's scandal ridden telecom giant, ZTE.

U.S. President Donald Trump has directed the Commerce Department to revisit penalties for telecom equipment maker ZTE for flouting U.S. sanctions on trade with Iran, saying it is a big customer of U.S. suppliers.

"American workers and companies confront rampant theft of USA intellectual property, agricultural policies that disadvantage American farmers, restrictions on market access for US service providers and manufacturers, and mercantilist industrial policies that have cost US workers their jobs", they wrote. In March, ZTE agreed to pay $1.2 billion, but when Commerce Department officials discovered a month later that ZTE had rewarded rather than punished the company officials responsible for the violations, it implemented a " denial order" prohibiting USA companies from selling their goods to ZTE for seven years. The White House is increasingly preoccupied with its efforts to reach a peace deal with North Korea and avoid a trade war with China. "Stay tuned!" Trump tweeted on Tuesday.

US officials recently went to China to open trade talks about Beijing's unfair trade practices.

Kudlow was critical of ZTE in an interview with the Politico news outlet, saying it was a "very poorly run company" with "many internal flaws".

"I think the issue here is how harsh the remedies, how harsh the enforcement", said Kudlow.

"Unilateral tariffs will address none of these issues, however, and will inflict real economic harm on USA businesses and consumers", the USCBC said, suggesting a comprehensive and strategic approach that sets short, medium, and long-term negotiating objectives to address industry concerns. This has fanned fears of a full-blown commerce war that could hurt the supply chains that balance global trade. "It would be deeply problematic for the national security of the United States and ultimately for his hopes of rebalancing America's relationship with China geopolitically, economically, commercially, and certainly on security", Rubio said. Still, she says his proposed tariffs on Chinese imports would be a huge mistake that would devastate her company. "He is doing the right thing when it comes to China", Senate Minority Leader Charles Schumer said in March, when Trump launched an aggressive campaign against China, including with tariffs.

As such, the Democratic senators urged Trump to focus on identifying effective strategies to reshape China's policy approach in each of these areas, such as through enforceable commitments to eliminate forced technology transfer policies, market-distorting subsidies, data localisation policies, and foreign investment restrictions, and ensuring nondiscriminatory treatment of United States firms in regulatory and other proceedings. "This egregious behavior can not be ignored", Ross said last month.

Increasing U.S. exports of liquefied natural gas could also be an area where the two countries could agree, he said.

Perhaps another explanation for Trump's action on ZTE is that he wants quick relief for American farmers.

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