Facing charges of yielding to Chinese demands, President Donald Trump said Tuesday that his administration has not yet reached a deal with Beijing to save telecom company ZTE.
The president contradicted a Wall Street Journal report indicating the Trump administration came to a tentative agreement with Beijing to revive the company currently sanctioned by the U.S. government. Under the deal reported by the newspaper, ZTE would face financial penalties and have to make management changes. China could also pull back on billions of dollars in tariffs on U.S. agricultural products, according to the Journal.
The potential agreement sparked bipartisan backlash on Capitol Hill, as some lawmakers accused the president of caving to Chinese demands on trade and potentially compromising U.S. national security. In a bipartisan rebuke to Trump, the Senate Banking Committee overwhelmingly passed an amendment Tuesday limiting his ability to remove sanctions on Chinese telecommunications companies.
Trump added Tuesday that he is not satisfied with trade talks with China that took place in Washington last week. He called the negotiations a start as his administration keeps working toward a final deal to address trade imbalances with Beijing.
Trump’s remarks came as Moon Jae-in, the president of South Korea, visited the White House for pivotal discussions ahead of the planned U.S.-North Korea summit next month in Singapore.
The Trump administration previously barred U.S. companies from selling to ZTE due to the company’s violation of American sanctions on North Korea and Iran. The Chinese firm has said the move threatened its survival.
Trump previously directed his Commerce Department to look into how it could help ZTE get back into business. He said he did so at the urging of Chinese President Xi Jinping.
The U.S. is currently negotiating with China the framework of a deal to potentially avoid tariffs levied by the world’s two largest economies. Trump also hopes to spur China’s buying of billions more in U.S. goods.
While Trump’s top advisors have repeatedly said action on ZTE is an “enforcement” issue under the Commerce Department, the president has publicly said it is part of larger trade talks with Beijing.
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Source: cnbc china
Trump: There's no deal with China on ZTE, and I'm not satisfied with trade talks