President Trump could overrule the US Department of Commerce’s denial order, banning ZTE from trading with US firms

US President Trump has handed a lifeline to Chinese smartphone giant, ZTE, by pledging to help the company continue to do business.

The move comes following a US Commerce Department order that banned ZTE from doing business with any US firm, effectively destroying its supply chain and ability to produce handsets.

President Trump’s decision to overrule the Commerce Department is nearly unprecedented, with analysts noting that it is extremely rare for a sitting US president to intervene in a legal matter such as this.

Mr Trump made the announcement on Twitter on Sunday night, saying that he was working personally with President Xi of China to resolve the situation.



A few hours earlier, Mr Trump tweeted that he was in the process of resetting trade relations with China, saying that previous deals had been "so one sided in favour of China".



Details are yet to be released on how President Trump intends to help ZTE, but the Chinese giant will be hoping that it is once again able to purchase US made chips for its smartphones.