Trump is letting ZTE get back into business

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Before you could blink, though, ZTE found itself at odds with US officials, first over alleged ties to the Chinese government and later for its part in selling telecom equipment to Iran and North Korea.

Prior to announcing his run for president, meanwhile, Trump frequently tweeted about China stealing United States jobs.

Republican Senator Tom Cotton of Arkansas asked the group to raise their hands if they would recommend private American citizens use products or services made by Apple competitor Huawei or smartphone maker ZTE.

President TrumpDonald John TrumpUS paid Trump's Scottish resort for VIP hotel stays: report Michael Avenatti tweets, then deletes, Fox News booker's phone number Former Trump aide working with Russian company to lift USA sanctions: report MORE on Sunday said the United States and China have a positive trade relationship despite previous unfair trade deals, adding that any issues "will all work out".

The biggest blow to ZTE came last month, however, when the U.S. Department of Commerce, citing the company's failure to fulfill its plea deal and discipline the employees who sold components to Iran and North Korea, banned the sale of U.S. -made parts to the company for a period of seven years.

"ZTE misled the Department of Commerce", Mr Ross said.

Potentially, there may be pressure behind the scenes from US suppliers who fear a loss of business as companies like Taiwan's MediaTek plan to step up in a bid to work with ZTE in the event that it is blocked from USA partners. ZTE had been working to get the denial order overturned, and had pegged its hopes on broader bilateral trade talks between the U.S. and China.

The US and China have also been posturing over import tariffs on particular goods, a move that could ignite a trade war.

Some of the world's most prominent wireless carriers are reconsidering their ties to embattled Chinese device maker ZTE - or dropping the company altogether.

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The concession to Beijing comes ahead of high-level trade talks later this week in Washington aimed at resolving an escalating trade dispute between the world's two largest economies. But be cool, it will all work out!' he wrote in the second tweet.

ZTE paid over US$100 million each to Qualcomm Inc, Broadcom Inc, Intel Corp and Texas Instruments, the official said. Though both companies denied the allegations, in February of this year top USA intelligence officials told the Senate Intelligence Committee that they had "deep concerns" about security risks posed by phones from the two Chinese companies and other firms which the officials described as "beholden to foreign governments".

The US accused ZTE of misleading American regulators after it settled charges of violating sanctions against North Korea and Iran.

That temporary reprieve prompted the lawmakers, including Pompeo and Zinke, to send a letter to the heads of the Commerce, Treasury and State departments asking them to reconsider their decision. "Major operating activities of the company have ceased", ZTE said in a filing on Wednesday. And he has trumpeted his efforts to safeguard U.S.jobs even if it means creating economic strain in other countries.

ZTE relies on USA companies such as Qualcomm Inc, Intel Corp and Alphabet Inc's Google.

As one of the world's largest telecom equipment makers, ZTE relied on US companies such as Qualcomm Inc and Intel Corp for components.

Republican Representative Robert Pittenger, a sponsor of legislation that would strengthen the U.S. national security review process for foreign investment, said after the Commerce ban was announced that the United States "must be vigilant against Chinese threats to both our economic security and national security". "China may now have strengthened its desire to get out from a under a scenario where the United States can do that again".

It also marks the second time in the last month the Trump administration has moved to roll back sanctions against a foreign company that had almost been pushed into insolvency, raising questions over how thoroughly the White House is co-ordinating sanctions policy with federal agencies.

Douglas Jacobson, a lawyer in Washington DC who represents some of ZTE's suppliers, said: "This is a fascinating development in a highly unusual case that has gone from a sanctions and export control case to a geopolitical one".

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