Trump on China trade: 'Be cool, it will all work out'

President Trump just saved embattled Chinese phone maker ZTE

Trump Says He, Xi Working to Bring Back China's Banned ZTE

Trump said in a tweet Sunday morning that he's working with Chinese leader Xi Jinping and has "instructed" his Commerce Department to get ZTE back in business because "too many jobs in China lost".

ZTE has been trying to resolve the blockade that Trump's commerce department imposed in April as punishment for violating the terms of a 2017 sanctions settlement, then lying about it.

US President Donald Trump has told his commerce department to get ZTE, the massive Chinese telecom equipment maker, back into business after it denied the company export privileges.

Those actions led to a US$1.2 billion fine a year ago, with the current export ban imposed in April after ZTE allegedly failed to live up to its agreement, lying about the punishment of employees involved in the sanctions skirting. And the Federal Communications Commission recently moved toward prohibiting U.S. Internet providers that receive federal funds from spending them on equipment made by companies such as Huawei, another major Chinese telecom player.

American companies (like Intel and Qualcomm) are estimated to provide 25 percent to 30 percent of the components used in ZTE's equipment, which includes smartphones and gear to build telecommunications networks.

AFTER sparking fears of a global trade war with China just months ago, Donald Trump had made a surprising pledge.

Then, of course, the President is involved in an aggressive trade dispute with China, which, on the USA side, included tariffs on about $60 billion of Chinese goods, the bulk of which were focused on the high-tech industry. "But be cool, it will all work out!"

ZTE depended on American chips and other components, and is unable to continue operating without key supplies. The Trump administration has taken a hard line on what it says are unfair trade practices by the Chinese government, proposing about $50 billion worth of tariffs on products and technology that advance Beijing's industrial development goals.

The ban is the result of ZTE's failure to comply with that agreement, the Commerce Department said. Experts have since said the company could be circling the drain.

"Our intelligence agencies have warned that ZTE technology and phones pose a major cyber security threat", he said.

"You should care more about our national security than Chinese jobs", he wrote on Twitter.

A USA blockade has choked off the revenue of the second largest Chinese telecom company, which regards the next two weeks as crucial as it faces potential collapse.

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