Still, Treasury Secretary Steven Mnuchin said China had agreed to dramatically increase purchases of us farm and energy products. According to two new reports, the United States and China are very close to finalizing a deal that would lift the Denial Order issued against ZTE.
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. Being unable to both buy valuable components nor sell its products in the United States.
Both sides claimed victory on Monday and pledged to continue talking after last week's round in Washington produced pledges that China would import more American energy and agricultural commodities, although there were no specifics.
Asia's largest oil refiner, China's Sinopec (600028.SS) will boost crude imports from the United States to an all-time high in June as part of Chinese efforts to cut the surplus, two sources with knowledge of the matter said on Wednesday.
"I can assure you that whatever the Commerce Department decides, the intel community has been part of the briefings and we will ensure that we enforce national security issues", Mnuchin said. We can find many scenarios in which America's trade deficit with China falls on paper.
According to sources familiar with the discussions, a proposed trade deal with China would lift a seven-year ban that prevents us chipmakers and other companies from selling components to ZTE, which makes smartphones and telecommunications networking gear. Maybe. Are they committing to lowering their tariffs on American cars? Some will doubtless argue that punishment doesn't necessarily need to equate to putting the company out of business and that enforced changes and fines should be sufficient, but it's clear that there is a lot riding on possible deals with China and if the USA was being seen to put a Chinese corporation out of business, doing a wide-ranging trade deal would likely be that much harder to achieve, pushing tensions up at the prospect of a global trade war between two of the largest economies the world has.
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American companies provide an estimated 25 percent to 30 percent of components in ZTE's equipment, which includes smartphones and gear to build telecommunications networks.
In a 32-2 vote, the Senate Banking Committee advanced legislation Tuesday that limited the president's ability to ease sanctions on Chinese telecom companies, requiring the administration first prove to Congress that the company is complying with USA law.
"It is a clear message to even private companies that it is OK now to import USA beans".
Xi's government promised Saturday to increase imports of American goods following talks in Washington on the trade balance, Beijing's technology policies and other disputes. The Ministry of Finance didn't immediately respond Thursday to a fax seeking comment on the measures. The U.S. has since made exemptions or delays for some countries after further negotiation.
Just when it seemed like ZTE was on the brink of complete collapse, President Donald Trump said in a tweet this month that he and China's President Xi were "working together" to give ZTE a "way to get back into business, fast". Exporters were lining up supplies for October to December shipment, the trader said.
Kudlow ultimately said that he believes China wants a deal, but that the US will require a "deal that would help the USA economy and it's workforce".