Working with Xi Jinping to bring back ZTE, Donald Trump tweets

A salesperson stands at counters selling mobile phones produced by ZTE Corp. at an appliance store in Wuhan in central China's Hubei province in a file

President Trump on Sunday said he's working with China to help ZTE "get back into business, fast" and prevent further job loss in China.

Writing on Twitter, Mr Trump said he had issued instructions for officials to come up with a rescue plan, saying too many jobs were at risk.

We will remind, the President of the United States Donald trump said that he was going to impose duties on imports from China and restrict Chinese investment.

The announcement seemed to directly contradict the policy of the Department of Commerce, which in April imposed a seven-year ban on sales of components to ZTE in connection with the company's violation of USA sanctions on Iran.

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

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ZTE relies on USA companies such as Qualcomm and Intel.

American technology companies are estimated to provide 25-30 percent of the components used in ZTE's equipment, which includes smartphones and gear to build telecommunications networks for telecom operators globally. Trump has proposed tariffs on as much as $60 billion in Chinese goods, and Beijing has responded in kind, prompting only continued threats from the president, who lamented the trade deficit between the two countries during the 2016 presidential campaign.

"Trump may have recognized that backing off on ZTE clears the path for him to claim at least a partial victory in the US-China trade dispute based on the concessions the Chinese seem prepared to offer". "But be cool, it will all work out!"

ZTE's fiber-optic networks depend on U.S. components and its cheap smartphones sold en masse overseas are powered by USA chips and the Android operating system. "This egregious behaviour can not be ignored".

In an April 16th statement, commerce secretary Wilbur Ross said ZTE made false statements to the USA government and "covered up the fact" that the company paid full bonuses to employees that had engaged in illegal conduct.

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Prior to announcing his run for president, meanwhile, Trump frequently tweeted about China stealing United States jobs. "Major operating activities of the company have ceased", ZTE said in a filing Wednesday.

But ZTE has also always been the target of scrutiny for regulators and officials in the United States, which is wary of its ties to the Chinese government. "China may now have strengthened its desire to get out from a under a scenario where the United States can do that again".

Experts said Trump's policy reversal was unprecedented.

ZTE confirmed last week that it has essentially shut down in the wake of the ban, pausing production lines and suspending business travel as it seeks legal remedies to get the trade ban overturned.

"This is entirely unprecedented", said Doug Jacobson, an export controls and sanctions attorney for Jacobson Burton Kelley who represents suppliers that do business with ZTE.

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