The U.S. and China are said to be nearing a deal that could see the removal of the restrictions imposed on Chinese firm ZTE Corp. The deal, which is not yet official, could also include China’s removal of tariffs on U.S. agricultural products. On Monday, President Trump tweeted that the potential deal with China will benefit U.S. farmers.
Last month, the U.S. government banned all supplies from American companies to ZTE as a penalty for violations of trade agreements. This almost put the Chinese company out of business and increased the trade war tension between the U.S. and China. ZTE will now have to simply pay hefty fines and make changes in its management team. President Trump had indicated that he would help ZTE get back into business as the ban had affected a lot of jobs in China.
This decision has not gone down well with several prominent people in political and industrial circles who believe that the U.S. government was allowing China to coax it into making a decision that was unfavorable for America. Senator Marco Rubio openly criticized the government for withdrawing from its previous firm position on ZTE and went on to state that minor penalties would not prevent ZTE from repeating past infractions as was seen in prior instances.
China is said to have already slashed tariffs on car imports bringing a relief to trade tensions between the two companies
China is said to have already slashed tariffs on car imports bringing a relief to trade tensions between the two companies. However, several people are unhappy that the U.S. is not fiercely tackling China’s unsporting trade practices. The ZTE deal is not yet confirmed but will be part of the efforts to find a middle ground with China on the ongoing trade issues.