Tag: ZTE Corp

Trump Tweets ‘Nothing Has Happened With ZTE Except As It Pertains To The Larger Trade Deal’

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President Donald Trump tweeted Wednesday that the reversal on trade policy around ZTE Corp. does not indicate a slackened position on China trade negotiations.

Here’s what Trump said in a series of tweets:

“The Washington Post and CNN have typically written false stories about our trade negotiations with China. Nothing has happened with ZTE except as it pertains to the larger trade deal. Our country has been losing hundreds of billions of dollars a year with China…We have not seen China’s demands yet, which should be few in that previous U.S. Administrations have done so poorly in negotiating. China has seen our demands. There has been no folding as the media would love people to believe, the meetings…haven’t even started yet! The U.S. has very little to give, because it has given so much over the years. China has much to give!”

Why It’s Important

The president’s support of trade with ZTE had driven a spike in optical stocks exposed to the Chinese business. Some shares traded lower Wednesday on the clarified policy.

Acacia Communications, Inc. (NASDAQ: ACIA) fell 4.3 percent and Oclaro Inc (NASDAQ: OCLR) 1.1 percent, while Applied Optoelectronics Inc(NASDAQ: AAOI) and Lumentum Holdings Inc(NASDAQ: LITE) dipped marginally.

What’s Next

Chinese Vice Premier Liu He arrived in Washington Tuesday for a five-day visit packed with trade talks. Reuters reported that several U.S. lawmakers U.S. lawmakers rejected any planby Trump to ease restrictions on ZTE Corp., calling the company a security threat and vowing not to abandon legislation clamping down on the company.

[Yahoo News]

Trump working with Chinese president to help China’s ZTE ‘get back into business’

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U.S. President Donald Trump said on Sunday that he and Chinese President Xi Jinping are working to give Chinese telecom company ZTE Corp “a way to get back into business, fast.”

“President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!” Trump wrote on Twitter.

The Chinese technology company earlier this month suspended its main operations after the U.S. Commerce Department banned American supplies to its business.

As one of the world’s largest telecom equipment makers, ZTE relied on U.S. companies such as Qualcomm Inc and Intel Corp for components.

[Reuters]

ZTE is banned from selling devices in the US because they violated our own sanctions and sold equipment to Iran. Remember, just this week Trump thought sanctions on Iran are so important he left the Iran deal to impose new sanctions on the country.

Do you realize how insane this is?

The company reached a settlement in March 2017 with the Commerce Department and Treasury Department for $1.19 billion and the promise to terminate several employees and punish others.

ZTE disclosed earlier this year that while it had gotten rid of several employees, the company hadn’t properly reduced the bonuses of some workers, or issued letters of reprimand. The inaction wasn’t consistent with a progress report ZTE issued in July. It’s because of those false statements that the Commerce Department decided to act.