United States and China are still 'very far apart' on trade: United States ambassador

  • United States and China are still 'very far apart' on trade: United States ambassador

United States and China are still 'very far apart' on trade: United States ambassador

In 2012 the US House Intelligence Committee had warned that both Huawei and ZTE posed a national security threat and recommended they were banned from the US.

"China is poised to announce more market opening measures, following moves in the finance and automobile sectors", Gary Liu Shengjun, the head of the China Financial Reform Institute in Shanghai said.

"The president said as recently as last month that trade wars are 'easy to win.' But here he'd be acting as if China has so huge a trade advantage over the USA that we're too afraid to even enforce our own laws". Trump appears willing to negotiate, and just over the weekend announced his intention to help Chinese electronics maker ZTE, which was on the brink of collapse after US imposed penalties on it last month for breaking sanctions against Iran and North Korea.

ZTE was fined $1.2 billion in March 2017, but last month it was hit with a steeper sanction, prohibiting USA firms from supplying it with needed parts after the Commerce Department found the company had lied multiple times and failed to take actions against employees responsible for sanctions violations. That night, the first daughter and her husband, Jared Kushner, sat next to the president of China and his wife for a steak and Dover sole dinner at Mar-a-Lago. However, President Trump seems to have hit upon a brainwave of leveraging the sanctions against the company for obtaining several concessions in trade with China. The Huffington Post reported that it was only 72 hours later that a Chinese company offered a $500 million loan to an Indonesia construction project associated with Mr. Trump's company.

Trump stunned congressional Republicans and Democrats when he tweeted that he has talked to President Xi Jinping of China and that he had ordered the Commerce Department to get Chinese phone-maker ZTE "back into business, fast". "I call it a trade coalition of the willing".

As the trade talks continue, the USA faces what could be a critical juncture over the next several weeks.

ZTE's situation convinced many Chinese that rather than being dependent on foreign suppliers, the country must manufacture key technology products itself.

MORE: What Are Good Alternatives to ZTE's Phones?

But European leaders say they want to remain in the deal. "If [Trump's Democratic opponent] Hillary Clinton became president, she could have held a stronger position because she's a career politician", the Beijing-based economist said.

"He didn't get up one day and go, 'I think I'll change my mind on ZTE.' I think it's part of a larger issue, and part of a larger set of negotiations", Kennedy told reporters.

"I don't expect all core differences in the US-China trade relationship to be resolved", said UBS chief China economist Wang Tao.

As Colbert pointed out, Trump tweeted that the USA and China were still working together on a new deal. "That's an area where we will be exploring very, very promptly".

As he tweeted on Monday: "ZTE, the large Chinese phone company, buys a big percentage of individual parts from USA companies".

"Lingering trade tension and uncertainty will likely negatively affect China's export orders and related business investment".

A subsidiary of Chinese state-owned construction firm Metallurgical Corporation of China (MCC) signed a deal last week with the Indonesian firm MNC Land to build an "integrated lifestyle resort", as part of Beijing's global influence-expanding "Belt and Road" infrastructure initiative.