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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.
President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!
— Donald J. Trump (@realDonaldTrump) 13 May 2018
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".
China and the United States are working well together on trade, but past negotiations have been so one sided in favor of China, for so many years, that it is hard for them to make a deal that benefits both countries. But be cool, it will all work out!
— Donald J. Trump (@realDonaldTrump) 13 May 2018
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.
