Published: Tue, May 15, 2018
Global | By Marsha Munoz

Tech and health care companies lift US stock indexes

Tech and health care companies lift US stock indexes

FBN's Connell McShane and Susan Li on the Trump administration's efforts to reduce the US trade deficit with China and concerns of a potential recession by 2020.

President Donald Trump's trade team faces a crunch week as they juggle talks on multiple sensitive issues representing hundreds of billions in trade amid pressing deadlines.

ZTE became a flash point in U.S.

More than 120 industry and business representatives from the United States and China will have an opportunity to testify before the interagency Section 301 Committee on the potential impact of the tariff plan over the next three days, according to the USTR's Office. They have been making hundreds of billions of dollars a year from the US, for many years.

Ikenson said the administration's focus on the $200 billion was "silly", adding that if the US accepts China's offer to import more goods, Trump can "claim mission accomplished and turn the page".

Commerce and ZTE previous year settled charges that the Chinese company sold sensitive telecommunications equipment to Iran and North Korea in violation of US sanctions.

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Early this month, a high-level US delegation - including Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, top American trade negotiator Robert Lighthizer and White House adviser Peter Navarro - traveled to Beijing to address the trade dispute.

Ross said his aim was for Beijing to change policies that harm United States companies, including forced technology transfers and lack of protection for American know-how.

"Problem with ZTE isn't jobs & trade, it's national security & espionage", he wrote.

Branstad, speaking at a conference in Tokyo, said the Chinese appeared "taken back" by the significance of the list. -China relations after the administration crippled the company by cutting it off from US suppliers for allegedly violating terms of a 2017 sanctions settlement, then lying about it.

Shah also pushed back on the idea that Mr. Trump was retreating from his campaign promise to be tough on China.

The ZTE case also drives home how entwined the USA and Chinese economies are.

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"I think it could be adjusted", he said.

Additionally, The Wall Street Journal (paywall)'s sources point to another possible result of USA leniency towards ZTE.

China objected to ZTE's punishment at trade talks in Beijing this month, and the American delegation agreed to report them to Mr. Trump.

China on Monday welcomed President Trump's comments. "We are now in close communication over details of the implementation". Commerce Department has been instructed to get it done! ZTE, which is based in Shenzhen, announced last week that it had been forced to suspend major operations as a result of the ban, but President Trump has since said he is supporting the company's recovery.

ZTE was fined $1.2 billion in March 2017, but last month it was hit with a steeper sanction, prohibiting USA companies from supplying the firm with needed parts amid revelations the company lied multiple times and failed to take actions against employees responsible for sanctions violations.

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