FROM EIR DAILY ALERT
Trump and Xi Move To Resolve Shutdown of ZTE Corp
May 14, 2018 (EIRNS)—With China’s second-largest telecommunication company ZTE literally shut down because of punitive sanctions by the U.S. Treasury, President Donald Trump called for a solution of the situation on May 13, 2018 after talking to China’s President Xi Jinping.
“President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!”
Trump tweeted.
A White House statement May 14, 2018 elaborated:
“The President’s Tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic, trade and investment relationship between the United States and China. The administration is in contact with China on this issue, among others in the bilateral relationship. President Trump expects [Commerce Secretary Wilbur] Ross to exercise his independent judgment, consistent with applicable laws and regulations, to resolve the regulatory action involving ZTE quickly based on its facts.”
Shortly thereafter, the Chinese government reportedly restarted its review of the application of Qualcomm—a U.S. telecom company—to acquire the Chinese company NXP. The actions may be linked, and may bear on agricultural trade as well, although Commerce Secretary Wilbur Ross on May 14, 2018 insisted that the sanctions against ZTE had “nothing to do with trade.” It is perhaps notable that, although the sanctions were imposed by Steve Mnuchin’s Treasury, Trump instructed Ross’s Commerce Department to resolve them.
