Finance

Trump floats management changes instead of sanctions for China's ZTE

Trump floats management changes instead of sanctions for China's ZTE”

But much of that trade originates from companies whose headquarters are outside the U.S. BMW and Mercedes-Benz, for example, build cars in the U.S.to be shipped to China.

Their reaction could complicate Trump's efforts to win concessions from China that would narrow a $335 billion annual trade gap.

Some White House officials said that vehement disagreements within Trump's trade team were to blame for the inconsistent messages.

"Both parties have come together today to strongly rebuke ZTE and the administration's soft approach", Schumer said, calling the amendment a "huge" move "in our fight against the Chinese, and we should pass this legislation on the floor immediately". You have to wonder whether the President actually cares whether ZTE is breaking the law or not; as long as the Chinese trade deficit is brought down, it doesn't really matter.

In return, China would eliminate tariffs on USA agriculture or agree to buy more farm products from the United States. ZTE's fate remains unknown as of now. But Trump may be the first leader ever to do it when the economy is booming.

The statement also promises "meaningful increases" in American agriculture and energy exports, resolving to hammer out the specifics in later discussions. He views the massive US trade deficit with China as evidence that Beijing is engaged in abusive trading practices and has outmaneuvered previous USA administrations. In all this, we do not know what part of Trump's dealings with Kim Jong Un are a side-scene, but as is evident, the twists and turns are theatrical.

Such concerns have dogged Trump since he took office. The Commerce Department announced on 16 April that the company would be cut off from its USA suppliers, crippling its business, for what Commerce Secretary Wilbur Ross called "egregious" violations of United States sanctions. ZTE has been fined in recent years for shipping American goods to five embargoed countries, including Iran and North Korea. Notwithstanding these sensitive matters, Mnuchin played a productive role by suggesting the rules be relaxed for the time being to stave off an economic war. In targeting ZTE, the U.S. discovered a weapon whose potency it was probably not aware of, and now it also has Huawei in its crosshairs, and this is something that is giving Beijing sleepless nights. In April, China announced a timetable to permit foreign automakers to own more than 50% of local ventures.

16:41US Diplomat in China Reports 'Abnormal' Sound, Pressure Sensations
The worker, who was sent to the United States for further evaluation, was diagnosed with a mild traumatic brain injury on May 8. The health alert advised that US citizens in China should consult a medical professional if they experience any symptoms.

Muqtada al-Sadr Alliance Wins Elections in Iraq
Despite a third place finish, Abadi could potentially still remain prime minister after the government coalition is formed. By the end of the announcement, al-Sadr's list had the highest popular vote, followed by al-Amiri's.

SpaceX Launches and Lands Its Most Reusable Rocket Yet
The first crewed flights of the Block 5-Dragon system could come as early as this year, SpaceX representatives have said. BTRC estimates Bangabandhu-1 will save the country around $14 million now spent leasing capacity from foreign operators.

Both sides are aiming for something more than just trade. Reducing the trade surplus would be relatively easier if the United States had opened its domestic market and allowed for more varied exports. Further, they demanded that China not use the WTO mechanism to delay action.

While President Trump remains hopeful the tentative deal will be one of the best things to happen to our nations farmers, China also has something to smile about. Either the United States would have to nearly stop buying entirely from China, something that would hurt American consumers.

In addition to ZTE, the ban would apply to several other Chinese companies, including Hytera Communications Corp., Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co.

The Europeans, too, are waking up to the challenge though somewhat late. "Given the complexity of these issues, the more sophisticated people realize this is going to be an ongoing and important struggle that's not going to be solved overnight".

This commentary originally appeared in Hindustan Times.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc.



Like this

Latest


23 May 2018
Korean journalists in N. Korea to cover nuke-testing site demolition
The newspaper reiterated harsh criticism against Max Thunder, denouncing the exercise as a practice for a pre-emptive airstrike. Observers will be watching the nuclear test site destruction ceremony closely for any clues to the North's mood.

17 May 2018
Israel's massacre in Gaza reaches Cannes red carpet
She added, " I get the black-tie thing but you should be able to do either version - flats or heels". CANNES-The issue of high heels at Cannes has been a spiky one in recent years.

16 May 2018
Stalker 2 Development Confirmed, Launches in 2021
A website recently popped up online displaying only an image that says S.T.A.L.K.E.R.2 and 2.0.2.1. The site shows a dark concrete background with "S.T.A.L.K.E.R. 2" and "2.0.2.1." written on it.

16 May 2018
Trump visits first lady in hospital for second straight day
Successful procedure, she is in good spirits. "So thank you and she sends her love", the president told the crowd. He said he expected the first lady back home at the White House before the end of the week.

16 May 2018
Lyft Follows Uber in Ending Forced Arbitration For Sexual Harassment Claims
She said this is the "beginning of a longer process needed to meaningfully improve safety". Lyft is following in Uber's footsteps.

16 May 2018
Conte warns Chelsea flops to shape up ahead of FACup final
Chelsea could soon be looking for a new manager with Antonio Conte expected to leave after Saturday's FA Cup final against Manchester United . "I am committed for this club, for me this is important".

14 May 2018
China first self made aircraft carrier warship started sea trials today
The CNN report also pointed out that the vessel passing its sea trials, does not necessarily mean it is combat-ready. However, a source close to the navy said it was " too early to estimate " when it would be combat ready.

14 May 2018
Most foreign envoys absent as Israel, US launch embassy festivities
Marchers have thrown stones and burned tires at the fence and flown flaming kites over it to try to set Israeli fields on fire. The Hamas terrorist group is hoping that 100,000 rioters will turn out on Tuesday and breach the Israel-Gaza Strip border.

12 May 2018
Takeaways From Trump's Plans to Try to Lower Drug Prices
US patients spent almost $329 billion on prescription drugs in 2016, according to the National Health Expenditures Survey . Vaidya said drug prices are lower in other countries with government-run health care because they set limits on prices.

11 May 2018
RBS agrees to pay $4.9bn to US
The Royal Bank of Scotland has already paid out tens of billions of dollars in penalties following the global financial crisis. In March, Barclays agreed a $2bn settlement with USA regulators, and Deutsche Bank paid $7.2bn.



Recommended