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Trump admits he's 'not satisfied' with China trade talks
25 May 2018, 09:41 | Marta Robbins
US reportedly working with China on a deal to 'save' ZTE from going out of business
According to sources familiar with congressional discussions, a proposed trade deal with China would lift a seven-year ban that prevents United States chipmakers and other companies from selling components to ZTE, which makes smartphones and telecommunications networking gear.
According to the Wall Street Journal, the two countries have agreed on a "broad outline" of a deal to settle a trade dispute sparked when the Commerce Department banned American companies from selling to ZTE for seven years after it violated sanctions against Iran and North Korea.
The outlines of the deal for ZTE, first reported in The Wall Street Journal, amounted to exactly the same sort of punishment that had proved ineffective a year ago, Rubio said. That could have had a major impact on the US wireless market, considering companies like Qualcomm derive significant revenues from sales of chipsets and other components to ZTE, and carriers like AT&T sell the company's phones in the prepaid market.
"This affair is a screaming violation of the US Constitution's emoluments clause, which flatly prohibits the acceptance of gifts and benefits from governments in the absence of congressional consent", Robert Weissman, president of Public Citizen, a consumer advocacy organisation frequently sceptical of free trade agreements.
Those who are in favour of globalisation and borderless trade would have let out a sigh of relief as tensions seemed to calm, but should Senators block any deal Trump puts forward, the potential for a trade-war could well return.
In addition to the fine, he envisions new management, a new board of directors, and requirements for significant purchases of U.S. products, he said.
Amid trade tensions between China and the United States in recent months, the U.S. side has criticized Beijing's excessive tariffs on automobiles that put USA automakers in a disadvantaged position.
That drew a quick response from Republicans and Democrats in Congress. The measures have forced the firm, which relies on United States parts to make smart phones and network equipment, to suspend major operations.
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"So when you do that, youre really hurting American companies also".
"Sen. Schumer is not somebody this White House is probably ever going to take advice from on how to negotiate or get a good deal on anything, particularly based on his track record", she said.
China's high tariffs on vehicles - versus a 2.5 percent U.S. levy - has been a key focus of U.S. President Donald Trump's administration amid a simmering trade standoff between Washington and Beijing. "China has committed to lower tariffs on many things and made structural changes to protect our technology".
The Trump administration has been adamant that there needs to be a rebalancing of the US trade deficit with China and a remedy to the stealing of USA intellectual property in China. China agreed to "substantially reduce" the $375 billion annual trade surplus it has over the U.S.by buying more American goods, but there was no mention of any specific import and export targets in the statement agreed to by the two countries.
However, he said there was no trade deal yet reached.
He later added he is not satisfied with the current state of trade talks with China. "So well see what happens", he said. This spring, regulators said they would relax rules for auto and aircraft makers as well. But those promises do not come close to assuring a reduction of the bilateral trade deficit, despite the fact that a reduction of Chinese tariffs would certainly increase Chinese purchases of US goods.
German and Japanese automakers use 'tons of steel from China, ' the source said, because they lack their own foundry capacity.
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