- President Donald Trump suggested the US would reverse sanctions against the Chinese tech giant ZTE.
- The sanctions were slapped on ZTE because of its business with Iran and North Korea.
- ZTE effectively shut down after the sanctions were implemented.
- The ZTE reversal could be a big clue that Trump may soften his stance on trade with China.
President Donald Trump shocked experts on Sunday when he reversed course and suggested that US sanctions against the Chinese tech giant ZTE would be lifted – a move that could show a shift in Trump’s stance on trade.
“President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast,” Trump tweeted. “Too many jobs in China lost. Commerce Department has been instructed to get it done!”
ZTE announced last week that it had effectively shut down operations because of the US sanctions and warned that the future of China’s second-largest telecom-equipment maker was in jeopardy.
The ZTE move could also be a signal that Trump has softened his stance on trade with China, said Greg Valliere, the chief global strategist at Horizon Investments.
“Trump’s astonishing reversal on ZTE (he wants to protect Chinese jobs, he tweeted) sent a signal to Beijing, and we expect progress when a high-level Chinese delegation visits Washington next week,” Valliere wrote on Monday. Read more
Bob Bryan – Business Insider Australia – 14 May 2018