Trump Vows to Help Sanctioned Chinese Tech Company, Citing Job Losses

  • Trump Vows to Help Sanctioned Chinese Tech Company, Citing Job Losses

Trump Vows to Help Sanctioned Chinese Tech Company, Citing Job Losses

Chinese telecom equipment maker ZTE has been offered a lifeline after Donald Trump asked the US Commerce Department to help the company ZTE "get back into business, fast".

"Too many jobs in China lost", Trump tweeted.

In April, he said: "For many years, no president wanted to go against China economically, and we're going to do it".

ZTE relies on U.S. companies such as Qualcomm and Intel.

"As a result of the Denial Order, major operating activities have ceased", the company said in a Hong Kong Stock Exchange filing.

ZTE then halted operations, stressing in a statement Wednesday that it is "actively communicating with the relevant US government departments in order to facilitate the modification or reversal" of the Commerce Department's order. "Commerce Department has been instructed to get it done!"

David Frum, a former speech writer for president George W Bush, added that Trump was sending mixed signals after scrapping the Iran nuclear deal and threatening sanctions on European countries that continue to do business with Tehran.

ZTE's fiber-optic networks depend on USA components and its cheap smartphones sold en masse overseas are powered by United States chips and the Android operating system.

ZTE's failure to comply with the 2017 Commerce Department settlement included not reprimanding or cutting bonuses to 35 employees tied to the wrongdoing, and making false statements, the Commerce Department previously found.

Trump's statement on Sunday also comes days after US and Chinese officials held high level trade talks, during which Beijing specifically brought up the restrictions on ZTE. The company said it is working to have the ban modified or reversed.

In response to the sanctions, Trump has now pledged to help the Chinese phonemaker "get back into business".

President Donald Trump's crackdown on trade claimed a massive victim this week, with Chinese tech giant ZTE shutting down most of its operations in recent days. It's also the fourth largest provider of smartphones in the United States. ZTE provides services for 100 million users in India, 300 million users in Indonesia, and 29 million users in Italy, the official said. Later, he slapped tariffs on $50 billion worth of Chinese goods.

In a statement, Digicel said an audit is under way to ensure that it has no relationship with any products which are affected by the U.S. restrictions.

The suspension of ZTE's operations follows several recent actions by the USA government that hindered its business prospects.