U.S. trade representative's office to hear corporations' case against tariffs

Donald Trump in Miami Florida campaigning ahead of the US presidential election

Donald Trump in Miami Florida campaigning ahead of the US presidential election

Trump defended the shift in a tweet Monday, saying that ZTE "buys a big percentage of individual parts from USA companies" and that the new stance was "reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi" Jinping of China.

Many economists believe reducing the US-China bilateral deficit by US$200 billion in the space of two years, Trump's stated aim is unrealistic. He tweeted on Sunday directing his Commerce Department to go easy on them.

The announcement from Trump came before the second phase of discussion between China and U.S. officers, which is aimed at bringing a solution to the quickly worsening trade conflict. "We have leverage to bring fairness back to relationship with #China whose other tech firms Tsinghua, Huawei, BBK, Yiomi & Lenovo rely on USA chips as well".

It is therefore an effective US move if the aim is raising pressure and uncertainty, but it may have backfired in another sense: the ZTE case really drove Chinese "patriotic" public sentiment on the trade dispute to a new level, and greatly reinforced the belief and urgency behind Xi Jinping's call to accelerate domestic technological capabilities to avoid reliance on foreign companies. It is perhaps notable that, although the sanctions were imposed by Steve Mnuchin's Treasury, Trump instructed Ross's Commerce Department to resolve them.

"They are basically conducting an all-out assault to steal what we've already developed and use it as the baseline for their development so they can supplant us as the leader in the most important technologies of the 21st century", Rubio said at a Foreign Relations Committee hearing on Asia policy.

Despite the USA ban, the Washington Free Beacon has reported that ZTE was selling equipment to the Pentagon and Homeland Security Department.

Kudlow said the U.S.'s re-examination of sanctions against ZTE Corp. isn't meant to let the Chinese mobile phone-maker escape a penalty. China counterpunched with tariffs on a range of US products, including bourbon and blue jeans.

Ross, U.S. Trade Representative Robert Lighthizer and others were.

USA companies have been largely critical of Trump's protectionist policies, citing added costs to both manufacturers and consumers despite the President's promises.

ZTE had warned last month that the ban on USA firms supplying it with components threatened its very survival.

President Donald Trump last month signed an executive order to levy tariffs on $50bn of imports in China, Under Section 301 of the Trade Act - with an even larger list of additional goods, collectively valued at $100bn, also under consideration.

ZTE employs about 80,000 people, mostly in China.

As part of this, they also entered into an agreement with the United States government. When a US delegation led by Treasury Secretary Steve Mnuchin met with officials in Beijing last week, no deal was reached largely because China refused a demand to cut the trade deficit by $200 billion within the next two years. But most of its products rely on core technology supplies from American companies like Qualcomm and Intel.

How else could China retaliate in the short term over USA trade and investment measure, and how will this all impact long-term relations?

But China on Monday welcomed Trump's recent comments.

It is no secret that the US has a huge trade deficit with China.