Other theories for the change of heart include the fact that the president knows he needs China's help during next month's North Korea summit; that the economic nationalists in the White House are losing ground to the free-traders like Larry Kudlow; and that Trump sees helping ZTE as a way to get a trade deal with China. "Everyone is looking for some kind of deal", he told Politico in an interview, adding that no agreement had been reached yet. As a result, last month, after the Commerce Department ordered US companies to stop selling components to ZTE, the company was forced to put all production activities on hold. Trump defended his decision further on Monday, saying that ZTE also bought a lot of individual parts from U.S. companies and fell under the larger trade deals both nations were negotiating.
ZTE has more than 75,000 employees and is the fourth largest phone maker in the U.S.
"Trade negotiations are continuing with China".
Chinese leaders may find it confusing when dealing with a United States president like Trump, who has adopted unconventional tactics compared to previous U.S. leaders, China-based USA experts suggested. As Arthur Kroeber, research head at Gavekal Dragonomics in Hong Kong put it in a recent note, the rivalry between the United States and China was not principally about trade, but was really about China's emergence over the last five years "as a formidable bidder for economic and political influence, an aspirant to technological leadership, and a major global investor".
The utilisation of nontraditional collectors here in the United States - engineers, scientists, students in school - and their ability to, from a cyber-enabled perspective, identify and attract unclassified data from research facilities continues to allow the U.S. to not only lose positions, jobs, research and funding, as well as provide first-to-market capability to the Chinese, he said.
"President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast", Trump said.
"ZTE, the large Chinese phone company, buys a big percentage of individual parts from USA companies", he said on Twitter. China, for its part, has stated that it is willing to buy more American goods and services to help reduce the trade deficit. "Free and open trade, I think that's the solution". US shares were set to drift slightly lower, with Dow futures down 0.4 percent and S&P 500 futures 0.3 percent lower.
The suggestion outraged members of Congress who have been pressing for more restrictions on ZTE. "If [Trump's Democratic opponent] Hillary Clinton became president, she could have held a stronger position because she's a career politician", the Beijing-based economist said. It is important to note here that it has been announced by the USA that the impositions levied on North Korea will be removed, if they agree to totally stop their progress and development for Nuclear Arms. "That's an area where we will be exploring very, very promptly".
The two delegations addressed issues relating to expanding USA exports to China, bilateral trade in services, bilateral investments, intellectual property protection and tariffs.
"Your order comes as your administration is in the midst of discussions with China to address China's market-distorting policies and other tactics to undermine key American industries", the letter said.
The widening trade dispute between the world's two biggest economies has taken a toll on both sides.
"Lingering trade tension and uncertainty will likely negatively affect China's export orders and related business investment".