Trump says his push to save ZTE is part of a 'larger trade deal,' contradicting administration stance

Key Points
  • President Trump says his effort to help Chinese telecommunications company ZTE is only part of a "larger trade deal" his administration seeks with Beijing.
  • The U.S. had barred U.S. companies from selling to ZTE, effectively crippling the firm.
  • China and the U.S. are engaged in trade negotiations to avoid a potentially devastating trade war.
Trump says his push to save ZTE is part of a 'larger trade deal'
Trump says his push to save ZTE is part of a 'larger trade deal'

President Donald Trump said Wednesday his reversal on Chinese company ZTE only relates to a "larger trade deal" his administration seeks with Beijing.

Top Trump administration officials such as Commerce Secretary Wilbur Ross had tried to separate the president's push to boost the telecommunications company from trade talks with China. Ross this week called it an "enforcement" issue, not a trade dispute.

Trump's public statements have muddled that message.

In a series of tweets Wednesday morning, the president said "there has been no folding" on his pledges to crack down on Chinese trade practices. He said high-level meetings on the U.S.-China trade relationship "haven't even started yet."

Trump also argued that the U.S. "has very little to give" in talks "because it has given so much over the years." He added: "China has much to give!"

Trump tweet: The Washington Post and CNN have typically written false stories about our trade negotiations with China. Nothing has happened with ZTE except as it pertains to the larger trade deal. Our country has been losing hundreds of billions of dollars a year with China...

Trump tweet: ...We have not seen China's demands yet, which should be few in that previous U.S. Administrations have done so poorly in negotiating. China has seen our demands. There has been no folding as the media would love people to believe, the meetings...

Trump tweet: ...haven't even started yet! The U.S. has very little to give, because it has given so much over the years. China has much to give!

Last month, the Trump administration barred U.S. companies from selling to ZTE for seven years. The ban came in response to the company's shipping of American goods to Iran and North Korea in violation of sanctions. It effectively crippled ZTE.

On Sunday, the president said he instructed his Commerce Department to find a way to help the telecommunications equipment maker "get back into business, fast." "Too many jobs" were lost in China, the president added.

China may remove tariffs on agricultural products in exchange for relief for ZTE
China is reportedly close to removing tariffs on agricultural products

Senate Democrats accused Trump of abandoning his pledge to crack down on alleged trade abuses by China. One Senate Republican, Marco Rubio of Florida, also warned of national security risks and said he hoped "this isn't the beginning of backing down to China."

Trump's concessions on ZTE come as the world's two largest economies undertake trade discussions to avoid a potential trade war. Reports have indicated Trump could ease up on ZTE in exchange for a Chinese pullback on tariffs that threaten to damage the U.S. agricultural industry.

Top Chinese officials are in the U.S. this week for trade talks.