United States trade representative office to hear corporations' case against tariffs

Hannah Rogers
May 15, 2018

Expanding on Trump's message, White House deputy press secretary Lindsay Walters said in a statement, "The President's tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic, trade and investment relationship between the United States and China".

But the USA says the Chinese firm breached that agreement, resulting in the current ban, which came as tensions increased between the United States and China on trade.

Kudlow, speaking in a live interview with Politico news outlet, said he backed U.S. Treasury Secretary Steven Mnuchin's efforts to reach an agreement with Beijing and that both countries must take action.

In a later tweet, Trump suggested the USA and China were moving forward on the trade negotiations, but it was not clear how the ZTE case would fit into the bigger picture.

Trade talks with China on plans for USA tariffs on Chinese goods and Chinese retaliatory tariffs are underway in Washington this week. 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 USA imposed penalties on it last month for breaking sanctions against Iran and North Korea. They have been making hundreds of billions of dollars a year from the USA, for many years.

Donald Trump says working with Xi Jinping to save telecom giant ZTE
In April, he said: "For many years, no president wanted to go against China economically, and we're going to do it". He said the " Commerce Department has been instructed to get it done!" because "too many jobs in China lost".

White House spokeswoman Lindsay Walters confirmed U.S. officials were in talks with China about the company, saying that Mr Trump expects Commerce Secretary Wilbur Ross "to exercise his independent judgement, consistent with applicable laws and regulations, to resolve the regulatory action involving ZTE based on its facts". The U.S. accused ZTE of misleading American regulators after it settled charges of violating sanctions against North Korea and Iran.

The first round of trade talks between China and the USA took place in Beijing on May 3 to 4. Recently, the tariffs have turned into somewhat of a bargaining chip for the Trump administration as negotiations between Washington and Beijing continue this week.

As part of this, they also entered into an agreement with the USA government.

Branstad said China has not met pledges to open up its insurance and financial services area, as well as reduce auto tariffs, and that Trump would like to see a "dramatic increase" in food exports to China.

The widening trade dispute between the world's two biggest economies has taken a toll on both sides.

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