Trump faces backlash over ZTE deal


The United States (US) President Donald Trump has said he may lift a crippling export ban on Chinese technology firm ZTE and levy a $1.3 billion fine instead.

His willingness to strike a deal has stirred controversy in the US, where the company has raised alarms related to national security.

Trump said the current penalty, which led ZTE to halt major operations, has hurt US firms that sell to it.


Democratic Senator Chuck Schumer called the proposal “a wet noodle”.

He said it was a punishment “in name only” and warned the president against taking a softer stance on ZTE in exchange for promises of increased Chinese purchases of US goods.

He said: “Putting our national security at risk for minor trade concessions is the very definition of short-sighted. And, frankly, it would be a capitulation on the part of the Trump administration.”


Negotiations about the alternative punishment are ongoing and come amid broader trade negotiations with China. The president also wants China’s help to curb North Korea and its nuclear ambitions.

Trump said there was no deal yet but at the request of Chinese President Xi Jinping he is revisiting last month’s ban, which blocks US companies from exporting to ZTE.

He later added he is not satisfied with the current state of trade talks with China.

“I think that they’re a start, but we need something,” he said.

The export ban is punishment for ZTE’s failure to comply with a settlement reached over its violations of sanctions against North Korea and Iran.

The president outlined the possible alternative while speaking to reporters in Washington on Tuesday at a meeting with the president of South Korea.

In addition to the fine, he envisions new management, a new board of directors and requirements for significant purchases of US products, he said.—BBC

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