Katie Cammarata
US-China Trade Tensions Are Getting Even More Confusing
President Trump has suggested he might scrap a tentative deal to avoid a trade war.
LEARN MOREMay 27, 2018
The Trump administration has reached an agreement that would help keep Chinese tech company ZTE in business. And some lawmakers aren't happy.
The Commerce Department reportedly brokered a deal that would lift the ban that keeps ZTE from buying American products. But, in return, ZTE would have to pay a $1.3 billion fine, hire American compliance officers and make changes to its current management.
President Donald Trump confirmed the agreement in a tweet Friday. He said: "Senator Schumer and Obama Administration let phone company ZTE flourish with no security checks. I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine."
Senator Schumer and Obama Administration let phone company ZTE flourish with no security checks. I closed it down then let it reopen with high level security guarantees, change of management and board, must purchase U.S. parts and pay a $1.3 Billion fine. Dems do nothing....
— Donald J. Trump (@realDonaldTrump) May 25, 2018
...but complain and obstruct. They made only bad deals (Iran) and their so-called Trade Deals are the laughing stock of the world!
— Donald J. Trump (@realDonaldTrump) May 25, 2018
Schumer responded to the deal saying: "If the administration goes through with this reported deal, President Trump would be helping make China great again."
Sen. Marco Rubio said the deal "is a great deal ... for ZTE & China." He also said Congress needs to act.
The U.S. punished ZTE earlier this year for violating sanctions on Iran and North Korea. In April, the U.S. banned American companies from selling components to the Chinese tech firm. And in May, the Trump administration barred the company from selling products on military bases over concerns that the company could surveil the U.S. military with its devices.
Those actions hit ZTE hard, and earlier this month, it shut down most of its company. On May 13, Trump tweeted that he was going to work to help ZTE because of "too many jobs in China lost."
But both chambers of Congress have advanced legislation that would block Trump from helping ZTE.
