President Trump working to get ZTE back into business

President Trump working to get ZTE back into business

US President Donald Trump has said he wants to help save ZTE, one of China's biggest telecoms companies.

The president said he is working with Chinese President Xi Jinping and the U.S Commerce Department, which "has been instructed to get it done".

The whole thing led many to speculate about whether or not Trump had another reason for his sudden about-face on ZTE.

The news came less than a month after the US Commerce Department banned ZTE from buying US-made components, such as semiconductors, for seven years, effectively wrecking its supply chain.

President Donald Trump has instructed his Commerce Department to help get a Chinese telecommunications company get "back into business" after the United States government cut off access to its American suppliers.

ZTE said it is working with the Trump administration to reverse the sanctions and "forge a positive outcome in the development of the matters".

In 2016 the Obama administration announced that it was punishing the company for its alleged sanctions violations by restricting the sale of key USA exports to ZTE, but weeks later it suspended the punishment after the telecom equipment maker agreed to work with US authorities.

President Donald Trump's crackdown on trade claimed a massive victim this week, with Chinese tech giant ZTE shutting down most of its operations in recent days.

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Given that USA sanctions were imposed on ZTE due to threats to national security and its violation of trade sanctions with Iran and North Korea, Trump's desire to give the company another chance in the truly unexpected.

ZTE said in an announcement Wednesday that "the major operating activities of the Company have ceased".

ZTE did not immediately respond to a request for comment. A host of big technology companies in China are racing to build out this network, sparking concerns from USA officials that a shifting reliance on technology developed outside of the US could empower Beijing to hack or spy on American businesses and other institutions.

Qualcomm last month said it expected lost sales to ZTE to lower its earnings by 3 cents per share in the current quarter.

ZTE's shutdown is perhaps the most severe sanction facing a single company in the escalating trade tension between the U.S. and China.

Against that background, the Trump administration has barred military and government employees from using smartphones from ZTE and fellow Chinese maker Huawei.

ZTE, which makes telecoms equipment and handsets, is still "actively communicating" with the United States side "to facilitate the modification or reversal" of the ban and "forge a positive outcome", the filing said. ZTE provides services for 100 million users in India, 300 million users in Indonesia, and 29 million users in Italy, the official said.

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