U.S. President Donald Trump vows to help ZTE get back into business

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    U.S. President Donald Trump vowed on Sunday to help ZTE Corp. to get back into business in the United States, following a ban from regulators that paralyzed its operations in the country.

    Trump tweeted that “President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast.” However, some questioned his statement, considering ZTE’s alleged threat to United States national security.

    The latest pledge came just ahead of critical trade discussions between U.S and China this week.

    ZTE stopped its key operations after the U.S. Commerce Department imposed a ban on American firms from selling anything to the Chinese telecommunications gear maker for the next seven years. The ban came after ZTE violated a deal reached after it was found illegally delivering U.S products to Iran.

    A spokeswoman at White House, Lindsay Walters affirmed that U.S. officials were in discussions with China about ZTE. Walters said Trump’s tweet highlights the importance of fair and mutually beneficial relations between China and the U.S. on issued related to economy, trade and investment.

    ZTE depends on U.S. companies, such as Intel, Qualcomm and Google, which provide 25 percent to 30 percent of components used in its products including smartphones and gear to make telecommunications networks.

    United States representatives are preparing for discussions with China’s leading trade official Liu He to settle a growing trade conflict between the two biggest economies of the world. The talks will take place in Washington.

    The latest tweet from Trump will probably ease tensions between the two countries. China and U.S. proposed billions of dollars in taxes on import of each others’ goods over the recent weeks that escalated trade tensions.

    During trade talks held in Beijing earlier this month, China reportedly asked Washington to alleviate sanctions on ZTE.

    Trump’s latest comments about ZTE could have positive impact on shares of U.S-based companies that were banned from supplying goods to ZTE.

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    She is the Managing Editor for in-depth discussions and analysis as well as breaking news at Markets Morning. She works closely with Editor-in-Chief Zac Berry on content and publishing initiatives for the site. Brianna Clemons has worked as a financial journalist and editor since 1997. She lives in Bucks County, PA, with her husband, four young children and one dog.

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