Trump Says He's Helping A Chinese Company His Own Government Rebuked

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Congress has long seen ZTE and other Chinese telecommunications firms as a possible threat to national cybersecurity because their devices have the potential to allow surveillance by China's government.

He added that he instructed the U.S. Commerce Department "to get it done!"

ZTE paid over $100m each to other USA suppliers in 2017 including chip makers Xilinx and optical component company Acacia Communications and memory chip maker Sandisk, the ZTE official said.

The denial order was initially imposed but automatically suspended in March past year on the condition that ZTE adhere to a settlement agreement which included penalizing the senior officials responsible for the decision to contravene the Iran sanctions.

"The company paid over US$2.3 billion to 211 U.S. exporters in 2017, a senior ZTE official said".

Chinese Vice Premier Liu He is expected to resume trade talks with the Trump administration this week, after discussions in Beijing last week yielded no agreement on a long list of U.S. trade demands. Huawei is a global leader in networking equipment, and the government has previously blocked it from selling technology to some federal agencies.

The trade troubles threaten a technology sector that is increasingly intertwined with major players in the United States and China. The company said it is working to have the ban modified or reversed. "Nobody's panicking yet but people are nervous and watching".

Without specifying companies or countries, Federal Communications Commission Chairman Ajit Pai recently said "hidden "backdoors" to our networks in routers, switches, and other network equipment can allow hostile foreign powers to inject viruses and other malware, steal Americans' private data, spy on USA businesses, and more". The next biggest suppliers are Alcatel and Motorola.

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"They don't want to be held hostage" to USA tech firms.

USA commentators say the tone of the tweet is a dramatic shift for Mr Trump, who has consistently accused China of stealing USA jobs. And the Federal Communications Commission has taken steps to ban federal funds from being spent on mobile equipment made by firms that pose a national security threat to US communication networks. "This is a place where China's model of capital works better".

In an April 16th statement, commerce secretary Wilbur Ross said ZTE made false statements to the U.S. government and "covered up the fact" that the company paid full bonuses to employees that had engaged in illegal conduct. More recently, reports have suggested that the Trump administration is considering various ways to limit Chinese firms' ability to invest in the US.

Still, he said Washington has some justified national security concerns about preventing Huawei from becoming too dominant. "If you control the updater and the infrastructure you have an enormous advantage".

ZTE relies on United States companies such as Qualcomm and Intel.

In response to U.S. actions, China has imposed duties on 128 products from the USA.

The Trump administration, according to Gold, could take a risky hard-line path of imposing new tariffs and restrictions on technology, but is more likely to seek to negotiate some concessions. "They're using our country as a piggy bank to rebuild China, and many other countries are doing the same thing", he said during a September 2016 debate.

And Chinese officials protested against the ban in discussions with a high-level United States delegation last week and said the USA side would discuss the matter with President Donald Trump.

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